Marketing Communication Process & Promotion Mix

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3/23/13

Ruchika Singh Malyan

Purpose of Marketing Communication

Not only informs, but is also used to differentiate the sellers Products/Services from its competitors.

May also be effective in affecting the price elasticity of demand (non-price competition).

The marketing communications strategy of a firm must be coordinated and linked with concepts such as target segments, positioning, differentiation, and branding.

To influence feelings, beliefs, or behaviour of the target customers.

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Purpose of Marketing Communication

Marketing Communications are the means by which a firm attempts to inform, persuade, and remind consumer directly or indirectly about the products and brands they sell. 3/23/13

Marketing Communication Process

Noise

Advertising Personal Selling Public Relations Sales Promotion Direct Marketing

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Prospects Customers Employees Stockholders Community Government

Promotion
Possible Role of Promotion Objectives Promotion

Communication to build and maintain relationships by informing and persuading one or more audiences.

of

Create Awareness

Stimulate Demand Encourage Product Trial Identify Prospects Retain Loyal Customers Facilitate Reseller Support Combat Competition Reduce Sales Fluctuation 3/23/13

Communication Mix

Marketing Promotion Mix

Blend of Communications Tools and Activities Used by a Firm. Carries out the Promotion Process Communicates Directly with Target Markets

Promotional mix incorporates the combination and types of non-personal and personal communication the organization employs during a specified period.

Non-personal communication
Advertising Sales promotion Public relations
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Personal communication
Personal selling

Promotion Mix

ROLE OF PROMOTION IN MARKETING STRATEGY

Role of Promotion in Marketing Strategy Affects 3 Key Aspects of Decision Making with Respect to Brands Creating the Marketing Mix Achieving Effective Market Segmentation, Product Differentiation, and Positioning Enhancing Revenues and Profits

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Promotion Mix

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Promotion Mix
Advertising

Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services byWeaknesses an Strengths identified The major sponsor. media types for advertising are: Reaches large, geographically dispersed audiences, often with high frequency; Efficient for reachingDirect manyReaches Newspapers, Television, mail, Radio, many people Magazines, who are not Low cost per exposure, though overall costs are high; buyers simultaneously Internet, Outdoor(billboards, blimps, etc.), Yellow pages, buyers Consumers perceive advertised goods potential as more legitimate; Newsletters, Brochures, and Telephone Dramatizes company/brand; Effective way to create imageAds are subject to criticism The traditional conceptual model for creating any advertising Builds brand image; of the brand or marketing communications message is the AIDA Model: May stimulate short-term sales; Flexible get Attention , hold Interest , communication; arouse Desire, and then obtain Exposure time is short Impersonal, one-way Action. Variety of media to choosePeople tend to screen out from advertisements

Total cost is high

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Promotion Mix
Personal Selling

Personal Strengths presentation by the firms sales force for the Weaknesses purpose of making sales and building customer relationships. Message can be targeted toCost per contact is high specific individuals weaknesses Most effective tool for building buyers preferences, convictions, actions; Salespeople Personal interaction allows for Salespeople can and be persuasive may be hard to recruit feedback and adjustments;and motivate and influential Relationship-oriented; Two-way allowsPresentation skills may vary Buyers communication are more attentive; for questions and other betweencommitment; salespeople Sales force represents a long-term feedback Most expensive of the promotional tools

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Promotion Mix
Sales Promotion

Weaknesses Strengths Short-term incentives to encourage the purchase or sale of a product or service. Supports short-term priceRisk inducing brand-loyal May be targeted at the trade or ultimate reductions designed tocustomers to consumer; stock up while not stimulate debate Makes use of a variety of formats: premiums, coupons, inducing others contests, etc.; Variety of sales promotion tools Attracts attention, offers strong purchase incentives, Impact may be limited to shortavailable dramatizes offers, boosts term sagging sales; Effective in changing short-Price-related sales promotion may Stimulates quick response; term behavior hurt brand image Short-lived; Not effective at building long-term brand preferences Easy link to otherEasy for competitors to copy communications
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Promotion Mix
Public Relations

Building good relationships with the companys various publics by obtaining favorable publicity, building up a good "corporate image", and handling or Weaknesses Strengths heading off unfavorable rumors, stories, and events. Total cost may be low Highly credible; Very believable; Media-generated stories seennews Mediafeatures, may not cooperate Many forms: news stories, events and as more credible than sponsorships, etc.; marketer-sponsored messages Reaches many prospects missed via other forms of promotion; Dramatizes company or product; Heavy competition for media Often the most under used attention element in the promotional mix; Relatively inexpensive (certainly not 'free' as many people Marketer has little control over the think--there are costs involved)

message

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Promotion Mix
Direct Marketing
Direct communications with carefully targeted individual consumers to obtain an immediate response and cultivate Weaknesses Strengths lasting customer relationships. Message can be customized Many forms: Telephone marketing, direct mail, online and prepared quickly marketing, etc.; Four distinctive characteristics: Non-public, Immediate, Can Customized, facilitate a Interactive; relationshipOften low customer response with Well-suited customer to highly-targeted marketing efforts

Managing and maintaining accurate database can be costly

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Push Strategy:

Persuade wholesalers and retailers to carry brands. Give a brand shelf space. Promote a brand in coop advertising.

Producer

Wholesaler

Retailer

Customer

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Push Strategy:

Be careful of those big displays at the end of the aisles. End Aisle Displays. End Caps.

Only about 40% is actually on sale.

Look at the prices. Because they are so bright, big and visual, we feel its on sale.
Producer Wholesaler Retailer Customer

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Pull Strategy:

Entice customers to try a new product. Lure customers from competitive products. Hold and reward loyal customers.

Producer

Wholesaler

Retailer

Customer

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Push Tools:

Deals- Allowances, Price-offs and Discounts Displays and Point of Purchase Dealer Premiums Samples and Free Goods Buy-Back Guarantees Cooperative Advertising Advertising Materials Push Money (Spiffs) Dealer Meetings and Contests
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Specialty Advertising Items

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Pull Tools:

Sampling---in-store, events, newspaper, in-pack Cents Off Promotions and Coupons (-2%) Continuity/Frequency and Loyalty Programs Premiums SLO (Self-Liquidating Offers/Premiums) Point of Purchase Displays Contests, Games and Sweepstakes Rebates and Cash refunds FSIs (Free-Standing Inserts) 80% of distribution
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Advertising Specialty Items

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Cases
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Case 1 Pepsodent Bhoot Police

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Pepsodent Bhoot Police

Pepsodent increases recall and consumption with Integrated communications Problem: Maturing Sales

Insight: Research indicated that while mothers wanted their kids to brush regularly at night, kids often avoided it.

Objective: Promote the habit of brushing ones teeth at night among kids.

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Media Used

A TV Ad introduced Bhoot Police (Pepsodent) that fights Bhoot (germs); Another commercial followed with mothers singing an aarti to god to get their children to brush at night, and latter half of the commercial showing that Pepsodent Bhoot Police answers Mothers Prayers Groups of parents, teachers and even dhaba wallas were invited to sing the jingle in a live chorus on popular radio stations in pleas to children to brush their teeth at night. A contest was held for parents to pen their own lyrics to the aarti tune and the ones with the best or more funny lyrics got the chance to sing the aarti on air; children were also invited to sing their version of the lyrics on Air. Radio Ones The Midday Show made the jingle its signature tune.
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A contest was held for the kids to become bhoot police

Thank You

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