THE MARKETING COMMUNICATION MIX

also called as promotional mix. promotional mix is a specific mix of advertising, personal selling, sales promotion, public relations and directmarketing tools that a company uses to pursue its advertising and marketing objectives.

The five major tools:

1. ADVERTISING is any paid form of nonpesonal presentation and promotion of ideas, goods or services by a identified sponsor.

2. SALES PROMOTION is building short-term incentives encourage the purchase or sale of a product or service.

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3. PUBLIC RELATIONS is building good relationship with the companys various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories and event. 4. PERSONAL SELLING is personal presentation by the firms sale force for the purpose of making sales and building relationships. 5. DIRECT MARKETING is direct communications with carefully targeted individual consumers to obtain an immediate response through use of mail, telephone, fax e-mail and other non-personal tools to communicate directly with specific consumers

*managers are facing some new marketing communication realities.

THE CHANGING COMMUNICATION ENVIRONMENT

1. Mass markets have fragmented; marketers are shifting away from mass marketing and moving toward focused programs. 2. Improvements in computer and information technology are speeding the movement toward segmented marketing. New technologies have means to reach smaller segments with tailored messages.

Two(2) factors are changing the face of todays marketing communications.

Improvement in information technology has led to segmented marketing more narrowcasting.

Market fragmentation led to media fragmentation

Marketers have shifted away from mass marketing less broadcasting

THE NEED FOR INTEGRATED MARKETING COMMUNICATIONS

INTEGRATED MARKETING COMMUNICATIONS (IMC) -- the company carefully integrates and coordinates its many communication channels to deliver a clear, consistent and compelling message about the organization and its products. **Each brand contact will deliver a message, whether good, bad, or indifferent. Consistency and positivity must be maintained.

A VIEW OF THE COMMUNICATION PROCESS

--integrated marketing communication involves identifying the target audience and shaping a wellcoordinated promotional program to elicit the desired audience response.

marketers are moving toward the viewing communications as the managing the customer relationship over time, during the preselling, selling, consuming, and post consumption response.
the communications process should start with an audit of all potential contacts target customers may have the product and company.

ADVERTISING PERSONAL SELLING

Reaches many buyers, repeats message many times, impersonal, expensive

Personal interaction, relationship building, most expensive promo tool

SALES PROMOTION
PUBLIC RELATIONS DIRECT MARKETING

Wide assortment of tools, rewards quick response, efforts short-lived

Very believable, dramatize a company or product, underutilized

Non-public, immediate, customized, interactive

PROMOTION MIX STRATEGIES

1. PUSH STRATEGY -calls for using the salesforce and trade promotion to push the product through the channels; the producer promotes the product to wholesalers, the wholesalers promote to the retailers, and the retailers promote to customers. producer wholesalers retailers customers 2. PULL STRATEGY - calls for spending a lot on advertising and consumer promotion to build up consumer demand. If successful, consumer will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers. producer wholesalers retailers customers

ADVERTISING
-- centuries old [during the golden age in greece, town criers announced the sale of cattle, crafted items, and even cosmetics.] -- mostly used by business firms -- used by wide range of nonprofit organization, professionals, and social agencies.

ADVERTISING OBJECTIVES:
1. INFORMATIVE ADVERTISING used to inform consumers about a new product or feature to build primary demand. (eg. cellphones) 2. PERSUASIVE ADVERTISING used to build selective demand for a brand by persuading consumers that it offers the best quality for their money. (eg. Samsung phones) 3. COMPARATIVE ADVERTISING compares one brand directly or indirectly to one or more other brands. (eg. Samsung vs. Apple) 4. REMINDER ADVERTISING used to keep consumers thinking about a product. (eg. Coca-cola)

SALES PROMOTION
-- mass communication technique that offers short-term incentives to encourage purchase or sale of a product or service. -- offers reasons to by now --it can take the form of costumer promotion, business promotion, trade promotion, or sales force promotion. rapid growth industry has been achieved because: - product managers are facing more completion - companies face more completion - advertising efficiency has declined - consumer have become more deal oriented

SALES PROMOTION OBJECTIVES:

1. CONSUMER PROMOTION increasing short-term sales or help building long-term market share. - carry new items and more inventory - advertise products - give products more self space - buy products ahead 2. SALES FORCE getting more sales support

in general, sales promotion should focus on consumer relationship building.

MAJOR SALES PROMOTION TOOLS:

1. SAMPLES offer consumers a trial amount of a product. 2. COUPONS certificates that give buyers a savings when they purchase a specified amount. 3. CASH REFUND OFFERS OR REBATES offers to refund part of the purchase price of a product to consumers who send a proof of purchase to the manufacturer. 4. PRICE PACKS OR CENTS-OFF DEALS reduced prices that are marked by the producers directly on the label or package. 5. PREMIUMS goods offered either free or low at low cost as an incentives to buy a product.

6. ADVERTISING SPECIALTIES useful articles imprinted with an advertisers name that are given as gifts to consumers. 7. PATRONAGE REWARDS cash or other rewards for the regular use of a certain companys products or services. 8. POINT OF PURCHASE (POP) PROMOTIONS displays and demonstrates that take place at the point of purchase or sale. 9. CONTEST, SWEEPSTAKES, AND GAMES promotional events that give consumers the chance to win something. (eg. Cash, trips, or goods) by luck or through extra effort.

TRADE PROMOTION TOOLS: 1. DISCOUNT a straight reduction in price on purchases during a stated period of time.

2. ALLOWANCE promotional money paid by manufacturers to retailers who agree to feature the manufacturers products in some way. 3. other forms include FREE GOODS, PUSH MONEY, and SPECIALTY ADVERTISING ITEMS.
BUSINESS PROMOTIONAL TOOLS (trade shows and sales contests) are intended to generate business leads, stimulate purchases, rewards customers, and motive salespeople.

DEVELOPING THE SALES PROMOTION PROGRAM

DECIDE ON THE SIZE OF THE INCENTIVE.

SET CONDITIONS FOR PARTICIPATION. DETERMINE HOW TO PROMOTE AND DISTRIBUTE THE PROMOTIONAL PROGRAM. DETERMINE THE LENGTH OF THE PROGRAM.

EVALUATE THE PROGRAM.

PUBLIC RELATIONS
-- involves building good relation with the companys various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumor, stories, and events.

MAJOR PUBLIC RELATIONS FUNCTIONS

PRESS RELATIONS OR AGENTRY

PRODUCT PUBLICITY

PUBLIC AFFAIRS

PUBLIC RELATIONS DEPARTMENT MAY FORM ANY OF ALL OF THE FUNCTIONS:

LOBBYING

INVESTOR RELATIONS

DEVELOPMENT

MAJOR PUBLIC RELATIONS TOOLS

1. 2. 3. 4. 5. 6. 7. 8. NEWS SPEECHES SPECIAL EVENTS WRITTEN MATERIALS (annual reports, brochures, articles, company newsletters, and magazines.) AUDIOVISUAL MATERIALS (films, slide-and-sound programs, video, and audio cassettes) CORPORATE IDENTITY MATERIALS (logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms, and company cars and trucks) PUBLIC SERVICE ACTIVITIES WEBSITE