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Promotion or communication mix.

• Advertising –
Any paid form of non personal
presentation & promotion of ideas, goods,
or services by an identified sponsor.
• Direct marketing –
Use of mail, telephone & other non
personal contact tools to communicate
with or solicit a response from specific
customers & prospects.
• Sales promotion –
Short term incentives to encourage trial or
purchase of a particular product or
service.
• Advertising.
• Public relations & publicity –
A variety of programs designed to
promote &/or protect a company’s image
or it’s individual product.
• Personal selling –
Face to face information with one or more
prospective purchases for the purpose of
making sales.
1. Advertising –
o Print & broadcast advertising.
o Packaging outer.
o Packaging inserts.
o Motion pictures.
o Brochures & booklets.
o Posters & leaflets.
o Directories.
o Reprints of advertisements.
o Bill boards.
o Display signs.
o POP displays.
o Audio visual materials.
o Symbols & logos.
2. Sales promotion –
o Contest, Games, Sweep takes, Lotteries.
o Premiums & gifts.
o Sampling.
o Fairs & trade shows.
o Demonstrations.
o Exhibits.
o Low interest financing.
o Entertainment.
o Trade in allowance.
o Trading stamps.
o Tie ins.
3. Public relations –
o Press kits.
o Speeches.
o Seminars.
o Annual reports.
o Charitable donations.
o Sponsorship.
o Publications.
o Community relations.
o Lobbing.
o Identity media.
o Company magazine.
o Events.
4. Personal selling –
o Sales presentation.
o Sales meetings.
o Incentive program.
o Samples.
o Fairs & trade shows.
5. Direct marketing –
o Catalogs.
o Mailings.
o Tele marketing.
o Electronic marketing.
o Shopping.
o TV shopping.
• Communication process –

Communication model answers Who says What in


What channel to Whom with What effect.

Message
Sender Encoding Decoding Receiver
Media

Noise

Feedback Response
• Action speaks louder than the
words.
 Selective attention.
 Selective distortion.
 Selective recall.

Likelihood of attention = Perceived reward -- Perceived Punishment


Strength Strength

Perceived expenditure of effort


• Steps in developing effective
communication –
a. Identifying the target audience.
o Image analysis.
Image is the set of beliefs, ideas & impression
that a person holds of an object.
i. Familiarity scale.

Never Heard of Know a Know fair Know


Heard of only little bit amount very well

ii. Favorability scale.

Very Somewhat Somewhat Very


Indifferent
unfavorable unfavorable favorable favorable
C B A
Superior Medical
Inferior
Care

Specialized Full Service


hospital
Dated Modern Facility

Impersonal Friendly Service

Small Large

Research Community
Oriented Oriented
• Semantic differentials –

o Developing a set of relevant dimensions.


o Reducing the set of relevant dimensions.
o Administering the instrument to sample
respondent.
o Averaging the results.
o Checking the image variance.
 Evaluating scales ( Good / Bad qualities ).
 Potency scale ( Strong / Weak qualities ).
 Activating scale ( Active / Passive qualities ).
b. Determining communication objectives.

Stages AIDA Hierarch Innovatio Communicati


Model y of n on model
effect adoption
model model
Cognitive Attention Awareness Awareness Exposure
stage Reception
Cognitive
Knowledge
Response
Affective Interest Liking Interest Attitude
stage Preference
Desire Conviction Evaluation Intention

Behavior Purchase Trial Behavior


stage Action
Adoption
c. Designing a message.

1. What to say? Message content.


2. How to say it logically? Message structure.
3. How to say symbolically? Message format.
4. Who should say it? Message source.
1. Message content.
o Rational appeal.
o Emotional appeal.
o Moral appeal.
2. Message structure.
o Conclusion drawing.
o One or two sided arguments.
o Order of presentation.
3. Message format.
o Print advertisement.
 Headline – Copy – Illustration – Color.
o Radio.
 Words – Voice quality ( Speech rate, rhythm,
pitch, articulation ) – Vocalization ( Pause ).
o Television.
 Addition to above body language.
• Rational Appeal
• Emotional Appeal.
• Conclusion Drawing.
• Order Of Presentation.
4. Message source – Credibility of
source.
o Expertise.
o Trust worthiness.
o Likeability.
• Expertise.
d. Selecting the communication
channels.
I. Personal communication channels.
2. Advocate channel – Company sales
people.
3. Expert channel – Independent
experts.
4. Social channel – Neighbor, friends,
family members.
• Personal influence carries greater
weight under following circumstances.
o Where product is expensive, risky or
purchased infrequently.
o Where the product has significant social
status.
• Company can take following steps
to stimulate personal influence.
o Identify influential individuals & companies &
devote extra efforts to them.
o Create opinion leaders by supplying certain
people on attractive terms.
o Work through community influential like
jockeys, presidents, etc…
o Use influential people in testimonial
advertisement.
o Develop advertisement that has high
conversation value.
II. Non personal communication
channel.
o Media.
o Atmosphere.
o Events.
o Two step communication process.
e. Establishing total promotional
budget.
 Affordable method.
 Percentage of sales method.
 Competitive parity method.
 Objective & task method ( Steps ).
o Establish market share goal.
o Determine percentage of market that should be
reached.
o Determine percentage aware buyers that should
be persuaded to try brand.
o Determine the no. of adding impressions per
1% trial rate.
o Determine no. of gross rating points that would
have to be purchased.
o Determine the necessary advertisement budget
on the basis of average cost of buying gross
rating point.
f. Deciding on the promotion mix.

I. Nature of each promotional tool.


2. Advertising.
o Public presentation.
o Pervasiveness.
o Amplified expressiveness.
o Impersonality.
2. Personal selling.
o Personal confrontation.
o Cultivation.
o Response.
3. Sales promotion.
o Communication.
o Incentive.
o Invitation.
4. Public relation & publicity.
o High credibility.
o Off guard.
o Dramatization.
5. Direct marketing.
o Non public.
o Customized.
o Up to date.
II. Factors in setting the promotion
mix.

1. Type of product market.


 Consumer goods & relative
importance.
o Advertising – Sales promotion – Personal
selling – Public relations.
 Industrial goods & relative
importance.
o Personal selling.
o Sales promotion.
o Advertising.
o Public relations.
 Advertising function.
o Awareness building.
o Comprehension building.
o Efficient reminding.
o Lead generation.
o Legitimating.
o Reassurance.

 Personal selling function.


o Increased stock position.
o Enthusiasm building.
o Missionary selling.
2. Push v/s Pull strategy.

Push Strategy

Company Dealer Retailer Consumer

Company Dealer Retailer Consumer

Pull Strategy
3. Buyers readiness stage.

Promotional Cost Effectiveness

SP

PS

Ad & P

Awareness Comprehension Conviction Ordering Reordering


4. Product life cycle stage.

SP

Ad & P

PS

Introduction Growth Maturity Decline

5. Company market rank.


g. Measuring promotional results.

100
Not
90 Aware
80
70 Not
60 Tried
50 Market Aware
40
30
Dissatisfied
20 Tried
10
0
Satisfied
Total Aware Trial Satisfaction
100
90
80
70 Not
60 Aware
Market
50
40
30 Not
Aware Tried Dissatisfied
20
10
Tried Satisfied
0
Total Aware Trial Satisfaction

h. Managing & coordinating the


marketing communication process.

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