COMMUNICATION AND PROMOTIONPromotional messages from businesses, organizations, government agencies, and political candidates bombard you on a regular basis. Each day newspapers, television and radio programs, and mailboxes are filled with advertisements. Sides of buses, tops of taxis, even posters in public restrooms contain promotional messages asking you to buy something, support a cause, or change an opinion. Every time you visit the World Wide Web, you are exposed to a variety of virtual promotions. It is apparent that businesses and organizations believe in the power of promotion, but is it always effective? What determines whether promotion is used well or not?
Promotion is any form of communication used to inform, persuade, or remind. Businesses, organizations, groups, or individuals use promotion. It is used to influence knowledge, beliefs, and actions about products, services, or ideas. To plan effective promotion, marketers must first understand the communication process. They then must apply effective communication to interact with consumers in a way that results in information, understanding, and action.
The Communication ProcessMost of you have played the game where one person starts a message by whispering in the ear of a second person. That person
whispers to the next and so on until several people have heard the message. When the last person states what he or she heard, it is seldom the same as the initial message. The game makes the point that effective communication is not easy. Effective communication is the exchange of information so there is common understanding by all participants. Effective communication is illustrated in Figure 10-6.
Communication begins with a person or organization (sender ) that has information to communicate to another person or organization (receiver ). The sender chooses the way (communication channel ) the information will be transmitted to the receiver. Before sending the message, the sender decides the form in which the information will be sent—text, spoken words, pictures. Preparing the information to be communicated is called encoding . The receiver obtains the information from the channel and interprets it for understanding (decoding ). To be sure that the communication achieved the desired result, the sender needs to have a response from the receiver (feedback ). If the receiver understood the information and responds in a way the sender wanted, communication was effective. If the receiver does not respond or acts in an unexpected way, communication failed.
Communicating Through PromotionPromotion is an important form of communication. A business needs to provide information to consumers in order to persuade them to make a purchase. As the sender, the business decides what information to provide. The consumer is the receiver. The information is encoded in the form of a promotional message such as an advertisement. The business chooses an information channel. Common promotional channels include advertising media, salespeople, and the Internet. If the customer sees or hears the message, it is decoded. The response of the consumer gives feedback to the business about the effectiveness of the promotion.
Choosing target markets and studying their needs and decision-making process can make promotion more effective. When the focus of a business is a target market, communication can be very specific to the needs of that group using media that are familiar to and trusted by those consumers. The business will understand where the customers are in the decision-making process. It will tailor promotional messages at that stage. Early messages get attention and give simple information about the product or service and the needs it satisfies. Later promotions can compare the product to competing brands. They may point out advantages that are important to the
Bookmark Title: target market. When customers purchase the product, promotions can switch to providing reinforcement of their decision and offering after-sale services.
Promotion is any form of communication used to inform, persuade, or remind. Businesses, organizations, groups, or individuals use promotion. It is used to influence knowledge, beliefs, and actions about products, services, or ideas. To plan effective promotion, marketers must first understand the communication process. They then must apply effective communication to interact with consumers in a way that results in information, understanding, and action.
The Communication ProcessMost of you have played the game where one person starts a message by whispering in the ear of a second person. That person
whispers to the next and so on until several people have heard the message. When the last person states what he or she heard, it is seldom the same as the initial message. The game makes the point that effective communication is not easy. Effective communication is the exchange of information so there is common understanding by all participants. Effective communication is illustrated in Figure 10-6.
Communication begins with a person or organization (sender ) that has information to communicate to another person or organization (receiver ). The sender chooses the way (communication channel ) the information will be transmitted to the receiver. Before sending the message, the sender decides the form in which the information will be sent—text, spoken words, pictures. Preparing the information to be communicated is called encoding . The receiver obtains the information from the channel and interprets it for understanding (decoding ). To be sure that the communication achieved the desired result, the sender needs to have a response from the receiver (feedback ). If the receiver understood the information and responds in a way the sender wanted, communication was effective. If the receiver does not respond or acts in an unexpected way, communication failed.
Communicating Through PromotionPromotion is an important form of communication. A business needs to provide information to consumers in order to persuade them to make a purchase. As the sender, the business decides what information to provide. The consumer is the receiver. The information is encoded in the form of a promotional message such as an advertisement. The business chooses an information channel. Common promotional channels include advertising media, salespeople, and the Internet. If the customer sees or hears the message, it is decoded. The response of the consumer gives feedback to the business about the effectiveness of the promotion.
Choosing target markets and studying their needs and decision-making process can make promotion more effective. When the focus of a business is a target market, communication can be very specific to the needs of that group using media that are familiar to and trusted by those consumers. The business will understand where the customers are in the decision-making process. It will tailor promotional messages at that stage. Early messages get attention and give simple information about the product or service and the needs it satisfies. Later promotions can compare the product to competing brands. They may point out advantages that are important to the
Bookmark Title: target market. When customers purchase the product, promotions can switch to providing reinforcement of their decision and offering after-sale services.
TYPES OF PROMOTIONAn inventor asks you for advice on how to promote a new type of cellular telephone that provides satellite TV reception. What types of promotion would you recommend? Would it be a glitzy television campaign or direct mail to cellular service subscribers? Maybe you would suggest text messaging delivered to cell phones. What about salespeople ready to demonstrate the new product to customers who visit shopping mall kiosks? There are many choices for promotional communications. The types of promotion are divided into personalized promotion and mass promotion. Personalized promotion communicates directly with each customer using information tailored to that person. Mass promotion communicates with many people at the same time with a common message.
Personalized PromotionPersonalized promotion is the most effective form of marketing communication. It is also the most expensive. The most well known type of personalized promotion is personal selling. Personal selling is direct, individualized communication with prospective customers to assess their needs and assist them in satisfying those needs with appropriate products and services. Personal selling usually is done face-to-face with each customer. The customer visits the business to meet with a salesperson or the salesperson goes to the home or business of the customer. Personal selling also can be completed using telephone calls or live audio and video Internet connections. Because personal selling is often used for complex and expensive products and services, it may require several contacts between the salesperson and the customer to complete the sale.
To prepare for a sale, salespeople gather information on the prospective customer they will visit. They study product information. They need to be able to make the best match of products to customer needs. When a customer is qualified, meaning
they appear to have the need for and resources to buy a product, the salesperson schedules a meeting with the customer. During the meeting, the salesperson asks questions, provides information, and demonstrates the product for the customer. If the product meets the customer's needs, the salesperson helps the customer make a decision to purchase. The salesperson may also arrange payment or financing as well as product delivery and any services the customer requires. After the customer has used the product, the salesperson contacts the customer to answer additional questions and determine that the customer is satisfied.
Mass PromotionMass promotion is directed to many people at the same time. If the people are from the same target market, they will have like needs. Because the promotional message is aimed at many people, it cannot be as individualized and specific as personalized promotion. However, reaching many people with the same message through mass media is much less expensive. While a large company may spend hundreds of thousands of dollars on a television advertisement, it reaches more than a million people. Therefore the cost of the message for each customer is quite low.
Advertising is the most known and used type of mass promotion. Advertising is any paid form of communication through mass media directed at identified consumers to provide information and influence their actions. The most common advertising media are television, radio, newspapers, magazines, mass mailings, outdoor displays, and the Internet.
Consumers are exposed to hundreds of communications including promotional communications in the media each day. These messages are not developed for or delivered directly to individuals. For this reason, the advertisements must be designed to attract attention and focus the consumer on a small amount of specific information. Most advertisements do not result in an immediate sale. Rather, they attempt to influence prospects to take additional action such as visit a store, gather more information, or test the product.
Advertising campaigns direct communication efforts for both institutional advertising for the entire business and product advertising for the individual product. Advertising campaigns and individual ads should be analyzed for effectiveness. Individual ads are often tested before they are placed by using focus groups. Campaigns are evaluated during and after they are completed to see if the desired communication has been received.
Other types of mass promotion are publicity, sales promotion, and public relations. Publicity is non-paid promotional communication presented by the media rather than by the business or organization that is being promoted. Public relations is an ongoing program of non-paid and paid communications. It is planned to favorably influence public opinion about an organization, marketing effort, idea, or issue. Sales promotion includes activities and materials designed to reinforce a company's brand and image. It is also a direct incentive to take an action likely to immediately increase sales of a product or service. Sales promotion includes contests and games as well as the many products companies give away to consumers or sell at a low cost that highlight a brand name or product.
MerchandisingRetailers often attempt to obtain action from their customers by engaging in merchandising. Merchandising includes a set of promotional activities designed to generate sales in the retail setting. There are a number of retail merchandising strategies. Visual merchandising uses visual signals to communicate in a retail setting. These include the use of shelf labels, signs, or displays. Visual merchandising allows a retailer to use visual signals to replace a salesperson for information.
Retailers will also set up a display to exhibit a product at the point of sale.
For example, retailers will place product displays at the front of stores to entice customers into the store. Sale items may be displayed at the back of the store to bring customers past other merchandise to increase impulse purchasing.
Retailers should develop merchandising plans that identify strategies for price markdowns or markups, visual displays, and special events such as seasonal sales. For example, many stores start their holiday displays as early as Thanksgiving. The entire holiday season may have a specific merchandising plan. The merchandising plan may come from a corporate headquarters with specific instructions for each store in a chain. Stores that do not have a corporate merchandising staff need to develop their own merchandising plans.
Mass PersonalizationBusinesses can combine the advantages of personalized and mass promotion by using mass personalization promotion. Mass personalization begins with promotion through mass media such as newspapers, mass mailings, or the Internet. Prospective customers see the advertisement and become interested in the product or service. The company then provides an easy-to-use method for the consumer to gather more personalized information.
A customer who views an Internet advertisement or uses a search engine to gather information can be encouraged to complete an online survey. The questions provide the business with more specific information about the consumer, including their interests and needs. When the survey is submitted, the consumer is taken to a more specific website tailored to their profile or they are sent specific information via e-mail. They can even contact an online customer service representative who can answer detailed questions. A simpler form of mass personalization on the Internet is a set of links that take customers with specific questions to other web pages. The links can help them choose a specific product and complete an online purchase.
Personalized PromotionPersonalized promotion is the most effective form of marketing communication. It is also the most expensive. The most well known type of personalized promotion is personal selling. Personal selling is direct, individualized communication with prospective customers to assess their needs and assist them in satisfying those needs with appropriate products and services. Personal selling usually is done face-to-face with each customer. The customer visits the business to meet with a salesperson or the salesperson goes to the home or business of the customer. Personal selling also can be completed using telephone calls or live audio and video Internet connections. Because personal selling is often used for complex and expensive products and services, it may require several contacts between the salesperson and the customer to complete the sale.
To prepare for a sale, salespeople gather information on the prospective customer they will visit. They study product information. They need to be able to make the best match of products to customer needs. When a customer is qualified, meaning
they appear to have the need for and resources to buy a product, the salesperson schedules a meeting with the customer. During the meeting, the salesperson asks questions, provides information, and demonstrates the product for the customer. If the product meets the customer's needs, the salesperson helps the customer make a decision to purchase. The salesperson may also arrange payment or financing as well as product delivery and any services the customer requires. After the customer has used the product, the salesperson contacts the customer to answer additional questions and determine that the customer is satisfied.
Mass PromotionMass promotion is directed to many people at the same time. If the people are from the same target market, they will have like needs. Because the promotional message is aimed at many people, it cannot be as individualized and specific as personalized promotion. However, reaching many people with the same message through mass media is much less expensive. While a large company may spend hundreds of thousands of dollars on a television advertisement, it reaches more than a million people. Therefore the cost of the message for each customer is quite low.
Advertising is the most known and used type of mass promotion. Advertising is any paid form of communication through mass media directed at identified consumers to provide information and influence their actions. The most common advertising media are television, radio, newspapers, magazines, mass mailings, outdoor displays, and the Internet.
Consumers are exposed to hundreds of communications including promotional communications in the media each day. These messages are not developed for or delivered directly to individuals. For this reason, the advertisements must be designed to attract attention and focus the consumer on a small amount of specific information. Most advertisements do not result in an immediate sale. Rather, they attempt to influence prospects to take additional action such as visit a store, gather more information, or test the product.
Advertising campaigns direct communication efforts for both institutional advertising for the entire business and product advertising for the individual product. Advertising campaigns and individual ads should be analyzed for effectiveness. Individual ads are often tested before they are placed by using focus groups. Campaigns are evaluated during and after they are completed to see if the desired communication has been received.
Other types of mass promotion are publicity, sales promotion, and public relations. Publicity is non-paid promotional communication presented by the media rather than by the business or organization that is being promoted. Public relations is an ongoing program of non-paid and paid communications. It is planned to favorably influence public opinion about an organization, marketing effort, idea, or issue. Sales promotion includes activities and materials designed to reinforce a company's brand and image. It is also a direct incentive to take an action likely to immediately increase sales of a product or service. Sales promotion includes contests and games as well as the many products companies give away to consumers or sell at a low cost that highlight a brand name or product.
MerchandisingRetailers often attempt to obtain action from their customers by engaging in merchandising. Merchandising includes a set of promotional activities designed to generate sales in the retail setting. There are a number of retail merchandising strategies. Visual merchandising uses visual signals to communicate in a retail setting. These include the use of shelf labels, signs, or displays. Visual merchandising allows a retailer to use visual signals to replace a salesperson for information.
Retailers will also set up a display to exhibit a product at the point of sale.
For example, retailers will place product displays at the front of stores to entice customers into the store. Sale items may be displayed at the back of the store to bring customers past other merchandise to increase impulse purchasing.
Retailers should develop merchandising plans that identify strategies for price markdowns or markups, visual displays, and special events such as seasonal sales. For example, many stores start their holiday displays as early as Thanksgiving. The entire holiday season may have a specific merchandising plan. The merchandising plan may come from a corporate headquarters with specific instructions for each store in a chain. Stores that do not have a corporate merchandising staff need to develop their own merchandising plans.
Mass PersonalizationBusinesses can combine the advantages of personalized and mass promotion by using mass personalization promotion. Mass personalization begins with promotion through mass media such as newspapers, mass mailings, or the Internet. Prospective customers see the advertisement and become interested in the product or service. The company then provides an easy-to-use method for the consumer to gather more personalized information.
A customer who views an Internet advertisement or uses a search engine to gather information can be encouraged to complete an online survey. The questions provide the business with more specific information about the consumer, including their interests and needs. When the survey is submitted, the consumer is taken to a more specific website tailored to their profile or they are sent specific information via e-mail. They can even contact an online customer service representative who can answer detailed questions. A simpler form of mass personalization on the Internet is a set of links that take customers with specific questions to other web pages. The links can help them choose a specific product and complete an online purchase.