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Know the tools of the marketing
communications mix.(Promotion Mix)
Learn the steps in developing effective
marketing communications.
Understand methods for setting promotional
budgets and the factors that affect the design of
the promotion mix.
Advertising Decisions.
Sales promotion tool.
Public Relations Tools.
Personal Selling
!
Akai TVs
Airtel and Hutch (Now Vodafone)
Fevicol
Bingo
Haldiram¶s
What types of promotion mix have
these companies used to promote
their products?
!
Marketing Communications Mix ( Promotion Mix)
å A company¶s total marketing
communication program is called as ³
Promotion Mix´
Mix´
å Promotion Mix Consists of specific mix of
advertising, personal selling, sales
promotion, and public relations tools that
the company uses to pursue its
advertising and marketing objectives.
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Integrated Marketing Communications
å The concept under which a company
carefully integrates and coordinates its
many communications channels to deliver
a clear, consistent, and compelling
message about the organization and its
products.
å IMC implementation often requires the
hiring of a MarCom manager.
!
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Definition- Promotion
Promotion Mix
Integrated Marketing
Communication (IMC)
Change
å Technology
å Build Relationships
å Interactivity
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àType of Product
àStage in the Product Life Cycle
àTarget Market Characteristics
àActions of Competitors
àAvailable Funds
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Advertising Issues
Corporate Management
Communication Marketing
Crisis Multimedia
Communication Public Relations
E-Commerce Sales Promotion
Event Marketing Strategic
Internal Planning
Communication Web Design
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] Build Brand Equity
] Provide Information
] Manage Demand &
Build Sales
] Differentiate Products
] Influence Perceptions,
Attitudes, & Buyer
Behavior
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$#
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n billions
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m
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ã V Projected
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Persuasive Communication
Infomercials
Internet
Global Advertising
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âWill reach $22 billion in the U.S.
â The rest of world will spend $10.8
billion.
â$27 billion (10% of all U.S. ad
spending) will be siphoned from
traditional media
âHardest hit: newspapers and
direct mail ã R
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Steps Publicity
Listen Free
More Effective
Change/Develop Than Ad
Believable
Inform No Control
No Repetition
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Internal & External
Sampling
Word-Of-Mouth
Viral Marketing/Swag
Technology
Testimonials
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] Coupons can be ] Get professional
used as a ³Thank help to get
you for buying´ or a
³Stop and try us.´
maximum
exposure.
] The value must be
enough to attract ] Color-code your
customers. coupons for
] Use coupon different groups
promotions that use them.
sparingly.
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Celebrity Product(s)
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Athlete Endorsements
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Awareness
Knowledge
Liking
Preference
Conviction
Purchase
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ã Identifying the Target Audience
å Affects decisions related to what, how,
when, and where message will be said,
as well as who will say it
ã Determining Communication
Objectives
å Six buyer readiness stages
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ã Designing a Message
å ADA framework guides message design
å Message content contains appeals or themes
designed to produce desired results these are :
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Ë Love, pride, joy, humor, fear, guilt, shame E.g. Crack
creame..
creame
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Message Content
Rational Appeals
Emotional Appeals Message Structure
Moral Appeals Draw Conclusions
Argument Type Message Format
Argument Order Headline, Copy, Color,
Words, & Sounds,
Body Language
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The Affordable Method
å What we have to spare. What's left to spend.
Affordable Percentage-
Method of-Sales
Method
Competitive- Objective-
Parity and-Task
Method Method
Setting the Total Promotional Budget
å Objective
Objective--and-
and-Task Method
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Setting the Overall Promotion Mix
å Determined by the
and the selected
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Promotion
Reaches large,
Tools geographically dispersed
audiences, often with
high frequency
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Low cost per exposure,
though overall costs are
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high
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Consumers perceive
advertised goods as more
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legitimate
Dramatizes
company/brand
Builds brand image; may
stimulate short-
short-term sales
mpersonal; one-
one-way ! !
communication
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Promotion Most effective tool for
building buyers¶
Tools
_
preferences,
convictions, and
actions
Personal interaction
ã allows for feedback
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and adjustments
Relationship
Relationship--oriented
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Buyers are more
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attentive
Sales force represents
a long-
long-term
commitment !
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May be targeted at the
Promotion trade or ultimate
consumer
Tools
_
Makes use of a variety of
formats: premiums,
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coupons, contests, etc.
Attracts attention, offers
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strong purchase
incentives, dramatizes
offers, boosts sagging
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sales
Stimulates quick
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response
Short
Short--lived
Èot effective at building
long--term brand
long !
preferences
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Promotion Highly credible
Tools Many forms: news
_
stories, news features,
events and
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sponsorships, etc.
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Reaches many
prospects missed via
' other forms of
(
promotion
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Dramatizes company
or benefits
Often the most
underused element in
the promotional mix
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Many forms:
Promotion Telephone marketing,
Tools direct mail, online
_
marketing, etc.
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Four distinctive
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characteristics:
å Èonpublic
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å mmediate
å Customized
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( å nteractive
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Well-suited to highly
targeted marketing
efforts
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Promotion Mix Strategies
å
trade promotions and
personal selling efforts push the product
through the distribution channels.
å
producers use advertising
and consumer sales promotions to generate
strong consumer demand for products.
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% Integrating the Promotion Mix
å Analyze trends (internal and external)
å Audit communications spending
å Identify all points of contact
å Team up in communications planning
å Make all communication elements
compatible
å Create performance measures
å Appoint an IMC manager
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Advertising and Sales Promotion
å Avoid false and deceptive advertising
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Personal Selling
å Salespeople must follow the rules of ³fair
competition´
å Three day cooling-
cooling-off rule protects ultimate
consumers from high pressure tactics
å Business
Business--to
to--business selling
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Any form of Nonpersonal presentation and
promotion of ideas, goods, or services by an
identified sponsor.
U.S. advertisers spend in excess of $175
billion each year.
Advertising is used by:
å Business firms,
å Nonprofit organizations,
å Professionals,
å Social Agencies.
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Objectives Setting
Budget Decisions
Campaign Evaluation
Advertising Objectives
Specific Communication V
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Accomplished with a Specific V
Audience
During a Specific Period of V
Comparison
Reminder Advertising
Advertising Keeps Consumers Thinking
Compares One Brand to About a Product.
Another
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An advertising goal is a
communication task that is specific
and measurable.
The communication task has four
stages:
å Awareness
å Comprehension
å Conviction
å Action
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Advertising Budget Methods
Affordable, Percentage of Sales, Competitive-Parity
and Objective-and-Task
Product Stage in the Product
Differentiation Life Cycle
Factors in
Advertising Setting the Market
Frequency Advertising Share
Budget
Competition
and Clutter
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Develop a Message
Focus on
Customer Benefits Creative Concept
³Big dea´
Visualization or Phrase Advertising Appeals
Combination of Both Meaningful
Believable
Distinctive
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Turning the ³Big dea´ nto an Actual Ad to Capture
the Target Market¶s Attention and nterest.
Testimonial
Slice of Life
Evidence
Scientific
Evidence
Typical Lifestyle
Message
Technical Execution Fantasy
Expertise
Styles
Personality Mood or
Symbol mage
Musical
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Advertising Agency
Firm that Assists Companies
in Planning, Preparing,
mplementing and
Evaluating Their
Advertising
Programs.
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Enhance
corporation¶s identity
nstitutional
Advertising
Advocacy
advertising
Pioneering
Product
Advertising Competitive
Comparative
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Stimulates primary demand for
Pioneering new product or category.
Used in the PLC introductory stage.
Adaptation of
Global Advertising
Regulation of
Advertising Practices
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Mass communication technique that offers short-
short-
term incentives to encourage purchase or sales of
a goods or service.
1) Consumer Promotion, 2)Trade Promotion and
3)Sales force Promotion ( Three Target groups)
Rapid growth in the industry has been achieved
because:
å Product managers are facing more pressure to
increase their current sales,
å Companies face more competition,
å Advertising efficiency has declined,
å Consumers have become more deal oriented.
| !
Short-Term ncentives to Encourage Purchase
or Sales of a Product or Service.
Consumer- Consumer-
Promotion Promotion Tools
Objectives
Entice Consumers to
Samples Advertising
Try a Èew Product Specialties
Lure Customers Away Coupons Patronage
Patronage
From Competitors¶ Products
Rewards
Rewards
Get Consumers to ³Load Up¶ Cash Refunds
on a Mature Product Contests
Hold & Reward Loyal Price Packs
Customers Sweepstakes
Consumer Relationship Premiums Games
Building
Point-of-Purchase
Displays
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Short-Term ncentives That are Directed to
Retailers and Wholesalers.
Trade-Promotion Trade-Promotion
Objectives Tools
Persuade Retailers or
Wholesalers to Carry a Brand Price-Offs Premiums
Give a Brand Shelf Space Allowances Patronage
Displays
Rewards
Promote a Brand in Buy-Back
Advertising Discounts
Guarantees
Push a Brand to Consumers Push Money
Free Goods
Specialty
Contests Advertising
tems
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Short-Term ncentives That are Directed to
ndustrial Customers.
Business- Business-Promotion
Promotion Tools
Objectives
Generate Business Leads Conventions
Motivate Salespeople
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Building good relations with the company¶s various
publics by obtaining favorable publicity, building up
a good ³corporate image´ and handling or heading
off unfavorable rumors, stories and events.
Major functions are:
å Press Relations
å Product Publicity
å Public Affairs
å Lobbying
å Investor Relations
å Development
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Definition
³Public Relations in the management function
which evaluates public attitudes, identifies the
policies and procedures of an individual or an
organization to with the public Definition cont.
interest, and executes a program of action to earn
public understanding and acceptance.´
American Association of Advertising Agencies
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Executes programs
Evaluates public
to gain public
attitudes
acceptance
dentifies issues of
public concern
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Press Relations
Product Publicity
Corporate Communication
Public Affairs
Lobbying
Employee and nvestor Relations
Crisis Management
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Web Site
Public
Service Èews
Activities
Corporate
dentity
Materials Speeches
Audiovisual Special
Materials Events
Written
Materials
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Most salespeople are well-
well-educated,
well--trained professionals who work
well
to build and maintain long-
long-term
customer relationships.
The term salesperson covers a wide
range of positions:
taker: Department store clerk
å Order taker:
getter: Creative selling in
å Order getter:
different environments
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agencies %
Classified ads
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Fixed amount:
å Salary
Variable amount:
å Commissions or bonuses
Expenses:
å Repays for job-
job-related expenditures
Fringe benefits:
å Vacations, sick leave, pension, etc.
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Directing Salespeople
å Help them identify customers and set
call norms.
å Specify time to be spent prospecting
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Motivating Salespeople
å Organizational climate
å Sales quotas
å Positive incentives:
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Generally defined as:
marketing and promotional activities
that:
å seek an association with a sponsored
event
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Goal:
å to misappropriate or capitalize on the goodwill and
popularity of the sponsored event
å intentionally confuse the public into thinking that
the ambush marketer is the official sponsor of the
event
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The result:
å consumers may be confused as to who is the
official sponsor of the event
å ambush marketing may impact negatively on
sponsorship rights
Therefore:
å sponsors seek some guarantee from the
organizer of the event that offenders will be
pursued (in the sponsorship agreement)
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Simultaneous promotions (for example:
sample/free product distribution at sponsored
event, billboard advertising or flying blimp
with advertiser¶s mark over venue)
Purchase of sub-
sub-category rights (for example:
broadcast rights purchased from a TV
network from marketers who are not official
sponsors of the event for the duration of the
sponsored event)
Direct marketing consists of direct
connections with carefully targeted
individual consumers to both obtain
an immediate response and cultivate
lasting customer relationships.
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Benefits to Buyers
Buyers::
å Convenient
å Easy to use
å Private
å Ready access to products and
information
å Immediate and interactive
Ö
Benefits to Sellers
Sellers::
å Powerful tool for building customer
relationships
å Can target small groups or
individuals
å Can tailor offers to individual needs
å Can be timed to reach prospects at
just the right moment
å Gives access to buyers they could
not reach through other channels
å Offers a low-
low-cost, efficient way to
reach markets
An organized collection of comprehensive data
about individual customers or prospects,
including geographic, demographic,
psychographic, and behavioral data.
Databases can be used to identify prospects,
tailor products, and maintain customer
relationships
Database marketing requires substantial
investment in hardware, software, personnel
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Involves sending an offer,
announcement, reminder, or other item
to a person at a particular address.
Accounts for a high proportion of
direct--marketing sales.
direct
Permits high target
target--market selectivity.
Personal and flexible.
Easy to measure results.
With the Internet, more and more
catalogs going electronic.
Print catalogs still the primary
medium.
Harder to attract new customers
with Internet catalogs.
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