Review: Retailing and Wholesaling

Topic Outline
• Retailing & Wholesaling
– Types of retailers &wholesalers
– Retailer & wholesaler marketing
decisions
– Retailing & wholesaling trends and
developments

1
Principles of Marketing
BS 931111

Promotion Part 1:
Promotional Mix
Strategies

AJ. AJ.
Narissara
NarissaraPalusuk
Palusuk
Adapted
Adapted fromfrom Kotler,
Kotler, P. and
P. and Armstrong,
Armstrong, th ed.
G.15e.
G.16
Principles AJ.
of
Principles ofNarissara
Marketing.
Marketing.Pearson Palusuk
Education
Pearson Inc..
Education
 Communicating Customer Value: Integrated
Promotional Mix Strategies:
Marketing Communications Strategy
Communicating Customer Value

Topic Outline
• Promotion Mix and Major Promotional Tools
• Integrated Marketing Communications
• Effective Marketing Communication
• Advertising
• Public Relations

3
4
View of communications process

10-5
 Promotion Mix
• The promotion mix is the specific blend of
promotion tools (advertising, public relations,
personal selling, sales promotion, and direct-
marketing) that the company uses to
persuasively communicate customer value
and build customer relationships

6
 Five Major Promotional Tools

• Advertising
• Public relations (PR)
• Sales promotion
• Personal selling
• Direct marketing

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 Advertising

Advertising is any paid form of non-personal

presentation and promotion of ideas,
goods, or services by an identified sponsor
• Broadcast
• Print
• Internet
• Outdoor
• Mobile
• Other forms
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 Public Relations (PR)

Public relations involves building good relations

with the company’s various publics by obtaining
favorable publicity, building up a good corporate
image, and handling or heading off unfavorable
rumors, stories, and events
• Press releases
• Sponsorships
• Special events
• Web pages
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 Sales Promotion

Sales promotion is the short-term incentive

to encourage the purchase or sale of a
product or service
• Discounts
• Coupons
• Displays
• Demonstrations

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 Personal Selling

Personal selling is the personal

presentation by the firm’s sales force for
the purpose of making sales and building
customer relationships
• Sales presentations
• Trade shows
• Incentive programs

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 Direct marketing
Direct marketing involves making direct
connections with carefully targeted individual
consumers to communicate directly with
specific consumers and to both obtain an
immediate response and cultivate lasting
customer relationships, including
- Direct mail - Kiosks
- Internet - Mobile marketing
- Catalogs
- Telemarketing (e.g. telephone, fax, internet)
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The New Marketing Communications Model
• Better informed
consumers
• More communication
tools
• Less mass marketing
• Advanced communication
technology
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 Integrated Marketing Communications

Integrated marketing communications

is the integration by the company of its
communication channels to deliver a clear,
consistent, and compelling message about
the organization and its brands

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Integrated Marketing Communications

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Effective Marketing Communication
Process

Collect feedback
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Effective Marketing Communication

1) Identifying the target audience

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 2) Determine the
AWARENESS communication
objectives
KNOWLEDGE

LIKING

PREFERENCE

CONVICTION

Buyer-readiness PURCHASE
stages 18
 Effective Marketing Communication

3) Design the message

AIDA Model
• Get Attention
• Hold Interest
• Arouse Desire
• Obtain Action

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Effective Marketing Communication

3) Design the message

➢ Message content is an appeal or theme
that will produce the desired response
➢ Rational appeal
➢ Emotional appeal
➢ Moral appeal
➢ Message Structure
➢ Message Format
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Effective Marketing Communication
3) Design the Message

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 Effective Marketing Communication

4) Choose the media

➢ 4.1) Personal communication

➢ 4.2) Non-personal communication

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 Effective Marketing Communication
4) Choose the Media
➢ 4.1) Personal communication involves two or
more people communicating directly with each other
e.g. face to face, phone/mobile, mail, e-mail internet
chat
➢ Personal communication is effective because it
allows personal addressing and feedback control of
personal communication
- Company - Word of mouth
- Independent experts - Buzz marketing
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Effective Marketing Communication

4) Choose the media

➢ 4.2 Non-personal
communication is media that
carry messages without
personal contact or feedback,
including major media,
atmospheres, and events that
affect the buyer directly
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Non-Personal Communication Channels

Major media
Atmospheres

Event 25
 Effective Marketing Communication

5) Select the Message Source

The message’s impact on the target audience
is affected by how the audience views the
communicator
• Celebrities
– Athletes
– Entertainers
• Professionals
– Health care providers
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 Effective Marketing Communication

6) Collect Feedback

Involves the communicator understanding

the effect on the target audience by measuring
behavior resulting from the behavior.

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 Promotion Budget Setting

➢ Affordable budget
➢ Percentage of sales method
➢ Competitive-parity method
➢ Objective-and-task method

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 Shaping the Overall Promotion
Mix
➢Advertising reaches masses of geographically
dispersed buyers at a low cost per exposure, and it
enables the seller to repeat a message many times
➢Public relations is a very believable form of
promotion that includes news stories, features,
sponsorships, and events
➢Personal selling is the most effective method at
certain stages of the buying process, particularly in
building buyers’ preferences, convictions, actions, and
developing customer relationships
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 Shaping the Overall Promotion
Mix
➢ Sales promotion includes coupons, contests,
cents-off deals, and premiums that attract
consumer attention and offer strong incentives to
purchase, and can be used to dramatize product
offers and to boost sagging sales

➢ Direct marketing is a non-public, immediate,

customized, and interactive promotional tool that
includes direct mail, catalogs, telemarketing, and
online marketing
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Shaping the Overall Promotion Mix
PRODUCER

Promotion
Demand
Activity

RETAILER/
WHOLESALER
Promotion
Activity
Demand

CONSUMER CONSUMER

10-31
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 Advertising

Advertising is any paid form of non-personal

presentation and promotion of ideas, goods,
or services by an identified sponsor

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 Advertising
Major Advertising Decisions

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 1) Advertising Objective Settings
An advertising objective is a specific communication task to
be accomplished with a specific target audience during a
specific period of time
➢ Informative advertising is used heavily when
introducing a new product category; the objective is to
build primary demand
➢ Persuasive advertising becomes more important as
competition increases. Here, the company’s objective is
to build selective demand
➢ Reminder advertising is important with mature
products to help maintain customer relationships and
keep customers thinking about the product
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 1) Advertising Objective Settings

Informative advertising
Persuasive advertising
Reminder advertising
 2) Advertising Budget Setting

• Factors affecting advertising budget setting

- Stage in product life cycle
- Market share
- Competition
- etc.
• Advertising budget methods
- Affordable budget
- Percentage of sales method
- Competitive-parity method
- Objective-and-task method
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 3) Advertising Strategy Development

Advertising strategy is the strategy by which

the company accomplishes its advertising
objectives and consists of:
• 3.1) Advertising messages creation
• 3.2) Advertising media selection

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3.1) Advertising Messages Creation

The general message that

will be communicated to consumers

“Big idea” that will bring an advertising

message strategy to life in a distinctive and
memorable way (Meaningful, Believable &
Distinctive)

Turns the big idea into an actual ad execution

that will capture the target market’s attention
and interest.

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Message execution styles

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 3.1) Advertising Message Creation

Consumer Generated Messages

• YouTube videos
• Brand Web site contests
• Advantages:
– Low expense
– New creative ideas
– Fresh perspective on brand
– Boost consumer involvement
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 3.2) Advertising Media Selection

Major steps include:

• Reach-frequency-impact orientation
• Media vehicles selection
• Media timing decision

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4) Evaluating the Effectiveness and
Return on Advertising Investment

➢ Return on advertising investment

➢ Communication effects
➢ Sales and profit effects

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 Advertising Strategy Development
Other Advertising Considerations
• Organizing for advertising
– Agency vs. in-house
• International advertising decisions
– Standardization
Creative Advertising
Creative Advertising
 Public Relations

Public relations involves building good relations

with the company’s various publics by
obtaining favorable publicity, building up a
good corporate image, and handling or
heading off unfavorable rumors, stories, and
events
Public relations is used to promote product,
people, ideas, and activities

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 Public Relations
Public relations department functions include:
➢ Press relations or press agency involves the
creation and placing of newsworthy
information to attract attention to a person,
product, or service
➢ Product publicity involves publicizing
specific products
➢ Public affairs involves building and
maintaining national or local community
relations 51
 Public Relations
Lobbying involves building and maintaining
relations with legislators and government
officials to influence legislation and regulation
Investor relations involves maintaining
relationships with shareholders and others in
the financial community
Development involves public relations with
donors or members of nonprofit organizations
to gain financial or volunteer support
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 Public Relations
The Role and Impact of Public Relations
• Lower cost than advertising
• Stronger positively impact on public
awareness than advertising

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 Public Relations
Major Public Relations Tools

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