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Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.

A plan for the optimal use of the elements of promotion: Advertising Public Relations Personal Selling Sales Promotion

Overall Marketing Objectives

Promotional Mix
Advertising Public Relations Personal Selling Sales Promotion

Marketing Mix Product Distribution Promotion Price

Target Market

Promotion Plan

Combination of promotion tools used to reach the target market and fulfill the organizations overall goals. The companys total promotion mix (also called the marketing communications mix) consists of a specific blend of:

Advertising Sales promotion Public relations Personal selling Direct marketing

Several factors are changing the face of marketing communications:


Consumers are better informed and more

These factors have shifted the marketing communications model so that firms are doing less broadcasting and more narrowcasting.

communications empowered. Mass markets have fragmented, leading marketers to a shift away from mass marketing. Changes in communications technology have created new media for interacting with targeted consumers.

A strong need for integrated marketing communications exists. Integrated marketing communications:

Carefully integrating and coordinating the

companys many communication channels to deliver a clear, consistent, and compelling message about the organization and its products.

Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

Nature of advertising:
Can reach masses of geographically

dispersed buyers at a low cost per exposure Can repeat a message many times Consumers view advertised products as more legitimate Is impersonal, one-way communication Can be very costly for some media types

Planned presentation to one or more prospective buyers for the purpose of making a sale. Nature of personal selling:
Involves personal interaction between two or

more people Most effective tool at building preferences, convictions, and actions Allows relationship building and two-way communication Requires long-term commitment to sales force Most expensive promotion tool

Marketing activities--other than personal selling, advertising, and public relations-that stimulate consumer buying and dealer effectiveness.

Nature of sales promotion:


Wide assortment of tools Attracts consumer attention Can be used to dramatize product offers Offers strong incentives to buy Invites and rewards quick consumer response Effects are short-lived

Free samples Contests Premium Offers Trade Shows

Popular Tools for Consumer Sales Promotion

Buy one get one free


Coupons

The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.

Nature of public relations:

Very believable Reaches people who avoid salespeople and

ads Can dramatize a company or product Planned use can be effective and economical

Functions of Public Relations


Evaluates public attitudes Executes programs to win public

Identifies areas of public interest

Nature

of direct marketing:

Many forms of direct marketing exist. Direct marketing forms share four primary characteristics:
Nonpublic Immediate Customized Interactive

Well suited to highly targeted marketing.

Push strategy:
Promotion strategy that calls for using the

sales force and trade promotion to push the product through channels.

Pull strategy:
Promotion strategy that calls for spending a

lot on advertising and consumer promotion to induce final consumers to buy the product.

Advertising has been used for centuries. Advertising is used by:


Business firms Not-for-profit organizations Professionals Social agencies Government

Setting advertising objectives Setting the advertising budget Developing advertising strategy Evaluating advertising campaigns

Advertising objective: Specific communication task to be Advertising

accomplished with a specific target audience during a specific period of time.

objectives can be classified by purpose:


Inform Persuade Compare Remind

Setting the advertising budget:


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

Developing

advertising strategy:

Creating advertising messages.


Message strategy and message execution must break through the clutter

Selecting advertising media.


Set reach, frequency, and impact goals Choose among major media types Select specific media vehicles Decide on media timing

Planning the message strategy:


Identify customer benefits Develop compelling creative conceptthe

Big Idea Choose an ad advertising appeal that is:


Meaningful Believable Distinctive

Message execution styles:


Slice

of Life Lifestyle Fantasy Mood or image Musical Personality symbol

Technical

expertise Scientific evidence Testimonial evidence or endorsement

Message execution process:


Choose the execution style Choose a tone Use memorable, attention-getting words. Choose format elements: Illustration Headline Copy

Sell the Sizzle, not the Steak Sell products benefits, not its attributes A benefit should answer Whats in it for me?

Setting media objectives:


Reach: Percentage of people exposed to

ad. Frequency: Number of times a person is exposed to advertisement. Media Impact: The qualitative value of a message exposure through a given medium.

Each

media type has specific advantages and disadvantages. Choosing among media types requires consideration of the:
Mediums impact Message effectiveness Cost
Media

mix should be regularly reexamined.

Media vehicles: Specific media within each general

media type, such as Newsweek.

Factors

to consider when choosing vehicles:


Cost Audience quality Audience engagement Editorial quality

Must also decide how to schedule the advertising over the course of a year.
Follow seasonal pattern Oppose seasonal pattern Same coverage all year

Choose media scheduling:


Continuity Pulsing Flighting

Continuous Media Schedule

Advertising is run steadily throughout the period. Advertising is run heavily every other month or every two weeks.

Flighted Media Schedule

Pulsing Media Schedule

Advertising combines continuous scheduling with flighting.


Advertising is run only when the product is likely to be used.

Seasonal Media Schedule

Advantages

Disadvantages

Year-round readership Geographic selectivity Immediacy High individual market coverage Short lead time

Limited demographic selectivity Little color May be expensive Low pass-along rate Clutter Mass market medium

Advantages

Disadvantages

Good reproduction quality Demographic selectivity

Higher cost per contact


Long-term advertiser commitments

Regional/local selectivity
Long advertising life

Slow audience build-up


Limited demonstration capabilities

High pass-along rate

Lack of urgency
Long lead time

Advantages

Disadvantages

Selectivity and audience segmentation Immediate and portable Geographic flexibility

No visual treatment
Short advertising life High frequency to generate retention Commercial clutter

Entertainment carryover
Short-term ad commitments

Advantages

Disadvantages

Short life of message Wide diverse audience Expensive with high Low cost per exposure campaign cost Creative and Little demographic demonstrative selectivity with network Entertainment carryover Long-term advertiser commitments Demographic selectivity with cable Long lead times Clutter

Advantages

Disadvantages

High exposure frequency Moderate cost Flexibility Geographic selectivity

Short message Lack of demographic selectivity High noise level

Broad, diverse market

Advantages

Disadvantages

Fast growing

Ability to reach narrow target audience


Short lead time Moderate cost

Difficult to measure ad effectiveness


Ad exposure relies on click through Not all consumers have access to internet

Return

on advertising investment:

Is equal to the net return on advertising investment divided by the costs of the advertising investment.
Evaluating

advertising involves:

Measuring the communication effects of an adCopy Testing. Measuring the sales effects of an ad:
Is the ad increasing sales?

Organization of ad function:
Small companiesone person in firm. Large companiesad department that may

also work with an ad agency. Advertising agencies employ specialists who perform ad tasks better then the companys own staff can.
Bring outside viewpoints to problem-solving. Wide range of experience.

International advertising issues:


To what degree should global advertising be

adapted to various countries?

Greater need for standardization of global brand advertising strategies. Specific advertising programs must usually be adapted to local cultures and other factors.

Public relations:
Building good relations with the firms various

publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

Public relations departments perform the following functions:


Press relations or press agency Product publicity Public affairs Lobbying Investor relations

Public relations:
May strongly impact public awareness at a

lower cost than advertising. Can yield spectacular results. Is beginning to play an increasingly important brand-building role.

News Speeches Special events Written materials Audiovisual materials

Corporate identity materials Public service activities Social networking Company Web site