MarkeLlng CommunlcaLlon JaL ls promoLlon? Any form of communlcaLlon a buslness or organlzaLlon uses Lo lnform persuade or remlnd people abouL lLs producLs @e romoLlonal Mlx ls a comblnaLlon of Le dlfferenL Lypes of promoLlon @o Lypes of promoLlon roducL romoLlon @ype of promoLlon LaL a buslness uses Lo convlnce poLenLlal cusLomers Lo buy producLs from Lem and noL Lelr compeLlLors lnsLlLuLlonal romoLlon @ype of promoLlon LaL a buslness uses Lo creaLe a favorable lmage for lLself our baslc Lypes of romoLlon ersonal selllng AdverLlslng Sales promoLlon ubllc relaLlons ulrecL MarkeLlng urposes of romoLlon urposes of romoLlon @o Lell consumers abouL a company's @o Lell consumers abouL a company's Coods Coods Servlces Servlces lmages lmages ldeas ldeas urposes of romoLlon urposes of romoLlon @o persuade consumers Lo buy @o persuade consumers Lo buy Promot|on's Rec|pe for 8uccess: Mix various communication activities together and serve to potential customers until desired outcome is achieved. Coals and @asks of romoLlon Informing Reminding Persuading Target Audience 14 10 Elements in the Communication Process 14 11 5tep 1 ldenLlfylng Le @argeL Audlence AffecLs declslons relaLed Lo aL o en and ere message lll be sald as ell as o lll say lL ueveloplng LffecLlve CommunlcaLlon 14 12 5tep 2 ueLermlnlng CommunlcaLlon Cb[ecLlves Cb[ecLlves may be seL Lo move buyers Lroug Le slx readlness sLages ueveloplng LffecLlve CommunlcaLlon 14 13 5tep J ueslgnlng a Message AluA frameork guldes message deslgn Message conLenL 8aLlonal LmoLlonal appeals fear umor gullL same love Moral appeals ueveloplng LffecLlve CommunlcaLlon AluA and Le Plerarcy of LffecLs Attention Interest Desire Action Awareness KnowIedge Liking Preference Conviction Purchase 14 1S 5tep J ueslgnlng a Message Message sLrucLure ura a concluslon? Cneslded or Loslded? SLrongesL argumenLs presenLed flrsL or lasL? Message formaL novelLy conLrasL and more ueveloplng LffecLlve CommunlcaLlon 14 16 5tep 4 Cooslng Medla ersonal vs nonpersonal communlcaLlon cannels ueveloplng LffecLlve CommunlcaLlon 14 17 5tep 4 Cooslng Medla ersonal communlcaLlon cannels lncludes faceLoface pone mall and lnLerneL caL communlcaLlons JordofmouL lnfluence ls ofLen crlLlcal 8uzz markeLlng culLlvaLes oplnlon leaders nonpersonal communlcaLlon cannels lncludes medla aLmospere and evenLs ueveloplng LffecLlve CommunlcaLlon 14 18 5tep 5 SelecLlng Le Message Source Plgly credlble sources are more persuaslve A poor colce of spokesperson can Larnls a brand ueveloplng LffecLlve CommunlcaLlon 14 19 5tep 6 CollecLlng eedback 8ecognlLlon recall and beavloral measures are assessed May suggesL canges ln producL/promoLlon ueveloplng LffecLlve CommunlcaLlon @e @op 3 @e @op 3 Alrllnes! Alrllnes! %rave|er Hagaz|ne Flynn Flynn Tne o|kes Tne o|kes rne pros rne pros use. use. 25 0ll Coupor % % AdverLlslng AdverLlslng % % ersonal selllng ersonal selllng % % ubllclLy ubllclLy % % Sales Sales promoLlon promoLlon % % ulrecL MarkeLlng ulrecL MarkeLlng CommunlcaLlon @ecnlques JaL do Ley do? AdverLlslng CreaLes aareness of a buslness's producL ubllc 8elaLlons CreaLes a favorable lmage for Le buslness lLself Sales romoLlon LfforLs sLlmulaLe sales ersonal Selllng 8ullds on all of Le oLer efforLs by elplng cusLomers compleLe Le sale @e ComblnaLlon or 8lend of MarkeLlng @e ComblnaLlon or 8lend of MarkeLlng CommunlcaLlon Cannels ls Called Le CommunlcaLlon Cannels ls Called Le JaL ls Le largesL form of promoLlon? ersonal Selllng! @ls Lype of promoLlon requlres conLacL lL poLenLlal buyers persona| se|||ng ace Lo face selllng 1on1 or 1ongrp @e mosL effecLlve form of promoLlons ln Lerms of Le percenLages of converLs ersona| presentat|on by the f|rm's sa|es force for the purpose of mak|ng sa|es and bu||d|ng customer re|at|onsh|ps ersonal Selllng ersonal Selllng ueLermlnes cllenL needs/anLs and responds Lroug ueLermlnes cllenL needs/anLs and responds Lroug planned personallzed communlcaLlon LaL lnfluences planned personallzed communlcaLlon LaL lnfluences purcase declslons and enances fuLure buslness purcase declslons and enances fuLure buslness opporLunlLles opporLunlLles Are you plannlng on replaclng all of your compuLers aL once? My budgeL on'L allo me Lo replace Lem all aL once buL l anL Lem Lo be compaLlble ?ou mlgL anL Lo conslder leaslng compuLers ?ou can geL free servlce and upgrade Lo a neer model enever you anL! ' 1be McCtownlll compooles loc 2002 All klqbts kesetveJ 1626 SLeps ln ersonal Selllng rospecL/Cuallfy rospecL/Cuallfy rospecL/Cuallfy rospecL/Cuallfy reapproac reapproac reapproac reapproac Approac Approac Approac Approac resenLaLlon resenLaLlon resenLaLlon resenLaLlon Cb[ecLlons Cb[ecLlons Cb[ecLlons Cb[ecLlons Close Close Close Close ollo ollo up up ollo ollo up up ersonal selllng ls effecLlve ln securlng corporaLe sponsorslps season or longLerm memberslps Lo clubs corporaLe osplLallLy and for selllng sporL/rec/flLness producLs LaL ave largely lnLanglble beneflLs AdvanLages of ersonal Selllng Cost ControI Cost ControI Message ControI Message ControI Targeted Targeted DetaiIed Information DetaiIed Information CIosing SaIes CIosing SaIes AdverLlslng AdverLlslng Any pald form of Any pald form of nonpersonal nonpersonal presenLaLlon of presenLaLlon of ldeas lmages goods or ldeas lmages goods or servlces by an ldenLlfled servlces by an ldenLlfled sponsor sponsor @e mosL vlslble elemenL of Le promoLlonal mlx @e mosL vlslble elemenL of Le promoLlonal mlx %e New %e New arcetta arcetta - - Actual cost of Actual cost of advertisement is quite advertisement is quite high. high. - - Since many people receive Since many people receive the message, the per the message, the per contact cost is very low. contact cost is very low. oods oods Services Services !mages !mages !deas !deas The Vet for Your Pet At Techco, we're friendly to our customers and the environment. At Techco, we're friendly to our customers and the environment. ay No to Drugs |amonds from esmond's Jewe|ers are a g|r|'s best fr|end. |amonds from esmond's Jewe|ers are a g|r|'s best fr|end. AdverLlslng AdverLlslng Messages can be dellvered by Messages can be dellvered by % % @elevlslon @elevlslon % % 8adlo 8adlo % % nespapers nespapers % % Magazlnes Magazlnes % % ulrecL mall ulrecL mall % % CuLdoor CuLdoor adverLlsemenLs adverLlsemenLs % % ulrecLorles ulrecLorles % % @e lnLerneL @e lnLerneL 1he first decisions in odvertisinq re/ote to Le producL lLs lmage 1he next decisions re/ote to aL medla does Le @M aLc llsLen Lo read? aL ls Le cosL comparlson and reLurn on lnvesLmenL? DVLk1IING cont ,essage c|ar|ty |mpact ,arket|ng power |acement AdverLlslng Campalgn ueclslon rocess Determine the campaign objectives. Make creative decisions. Make media decisions. EvaIuate the campaign. Common AdverLlslng Appeals Profit Profit HeaIth HeaIth Love or Romance Love or Romance Fear Fear Admiration Admiration Convenience Convenience Fun and PIeasure Fun and PIeasure Vanity and Egotism Vanity and Egotism Save money, keep from Iosing money Save money, keep from Iosing money Body-conscious, heaIthy Body-conscious, heaIthy SeII cosmetics and perfumes SeII cosmetics and perfumes SociaI embarrassment, growing oId, Iosing heaIth, power SociaI embarrassment, growing oId, Iosing heaIth, power CeIebrity endorsement effective CeIebrity endorsement effective Fast-food and microwave products Fast-food and microwave products Vacations, beer, amusement parks Vacations, beer, amusement parks Expensive, conspicuous items Expensive, conspicuous items LxecuLlonal SLyles for AdverLlslng Mood or Image MusicaI Demon- stration Scientific ReaI/ Animated Product SymboIs Fantasy LifestyIe Spokes- person/ TestimoniaI SIice-of-Life Humorous ommon Lxecut|ona| ty|es ommon Lxecut|ona| ty|es All markeLlng acLlvlLles oLer Lan personal selllng adverLlslng and publlc relaLlons ls called Sales romoLlon Sales romoLlon Sales romoLlon romoLlonal acLlvlLles oLer Lan adverLlslng personal romoLlonal acLlvlLles oLer Lan adverLlslng personal selllng and publlclLy lc sLlmulaLe purcases selllng and publlclLy lc sLlmulaLe purcases Sales promoLlon acLlvlLles lnclude Sales promoLlon acLlvlLles lnclude vlsual mercandlslng or dlsplays vlsual mercandlslng or dlsplays Coupons Coupons roducL demonsLraLlons roducL demonsLraLlons lnsLanL rebaLes lnsLanL rebaLes ree samples ree samples aslon sos aslon sos ConLesLs ConLesLs novelLy lLems novelLy lLems @rade sos @rade sos LxlblLs LxlblLs Sales promoLlon SorL@erm lncenLlves Lo encourage Le purcase or sale of producL or servlce Coupons conLesLs premlum all of lc ave many unlque quallLles ALLracL cusLomer's aLLenLlon AdverLlslng 8uy our roducL Sales promoLlon 8uy l@ NCW noL beneflclal ln bulldlng long Lrem relaLlonslps ubllc 8elaLlons Any acLlvlLy deslgned Lo creaLe a favorable lmage Loard a buslness lLs producLs or lLs pollcles ubllc 8elaLlons very bellevable nes sLorles feaLures sponsorslps and evenLs seem more real and bellevable Lo readers Lan ads do 8eac many prospecLs keach buyers as news rather than a sa|es d|rected commun|cat|on @e @ools of ubllc 8elaLlons Major TooIs Used By PR ProfessionaIs Major TooIs Used By PR ProfessionaIs New Product PubIicity Product PIacement Customer Satisfaction Phone Lines Consumer Education Event Sponsorship Issue Sponsorship Web Sites A speclflc klnd of publlc relaLlons LaL lnvolves placlng poslLlve and nesorLy lnformaLlon abouL a buslness lLs producLs or lLs pollcles ln Le medla ls called ubllclLy ubllclLy AdvanLage lL ls free! ulsadvanLage lLs conLenLs cannoL be conLrolled by Le buslness rlnclpal funcLlon of publlclLy 8ulldlng an lmage Jays Le lnLerneL Can 8e used as a Jays Le lnLerneL Can 8e used as a Source of ubllclLy Source of ubllclLy A company eb slLe can be used Lo obLaln and dlsplay poslLlve A company eb slLe can be used Lo obLaln and dlsplay poslLlve feedback feedback @ae8o as really canged my llfe l've losL elgL Lonedup and feel beLLer Lan ever" Susle Jells CA Jays Le lnLerneL Can 8e used as a Jays Le lnLerneL Can 8e used as a Source of ubllclLy Source of ubllclLy A buslness's goods servlces or eb slLe mlgL be menLloned ln an lnLerneL nesgroup A buslness's goods servlces or eb slLe mlgL be menLloned ln an lnLerneL nesgroup 0r||reNeWs.cor 0r||reNeWs.cor ar shopp|ng on the web 8uylng a car on Le eb [usL goL easler! AuLobyLelcom lll elp you geL Le flnanclng plck ouL Le model color and exLras @en Ley provlde a quoLe from a local dealer All aL Le Louc of a keypad Jays Le lnLerneL Can 8e used as a Jays Le lnLerneL Can 8e used as a Source of ubllclLy Source of ubllclLy A company mlgL agree Lo provlde a llnk Lo anoLer buslness's eb slLe ln excange for A company mlgL agree Lo provlde a llnk Lo anoLer buslness's eb slLe ln excange for Le same conslderaLlon Le same conslderaLlon NK T0 ACVE.C0V NK T0 ACVE.C0V NK T0 ACVE.C0V NK T0 ACVE.C0V ulrecL MarkeLlng Less Public Many forms of direct Marketing :- Direct Mail and catalogs, telephone marketing, online marketing etc Normally directed to a specific person mmediate and customized nteractive Well suited to highly targeted marketing efforts and to building one to one customer relationships . lmporLance lmporLance of Le of Le romoLlonal romoLlonal Mlx Mlx lays a key role ln lays a key role ln obLalnlng and keeplng obLalnlng and keeplng cusLomers cusLomers Lnables buslnesses Lo Lnables buslnesses Lo communlcaLe effecLlvely communlcaLe effecLlvely lL cusLomers lL cusLomers lnforms consumers abouL lnforms consumers abouL goods/servlces and goods/servlces and persuades Lem Lo buy persuades Lem Lo buy MarkeLers @ry @o CreaLe Le MarkeLers @ry @o CreaLe Le ldeal 8lend of romoLlonal ldeal 8lend of romoLlonal AcLlvlLles for @elr 8uslnesses AcLlvlLles for @elr 8uslnesses MusL declde lc meLods lll MusL declde lc meLods lll besL reac poLenLlal cusLomers and communlcaLe besL reac poLenLlal cusLomers and communlcaLe deslred message deslred message dvertising dvertising Personal Personal selling selling Publicity Publicity Sales promotion Sales promotion Pard Lo deLermlne effecLlveness of Le dlfferenL Pard Lo deLermlne effecLlveness of Le dlfferenL promoLlonal meLods promoLlonal meLods no maglc formula LaL markeLers no maglc formula LaL markeLers use Lo elp deslgn promoLlonal use Lo elp deslgn promoLlonal mlx mlx acLors AffecLlng Le SelecLlon of a acLors AffecLlng Le SelecLlon of a romoLlonal Mlx romoLlonal Mlx roducL's roducL's LargeL markeL LargeL markeL Cood servlce lmage Cood servlce lmage or ldea or ldea ulsLrlbuLlon ulsLrlbuLlon cannels cannels roducL's roducL's company company MusL be carefully analyzed MusL be carefully analyzed before markeLers declde en before markeLers declde en and ere Lo lnvesL promoLlonal and ere Lo lnvesL promoLlonal funds funds acLors LaL AffecL Le romoLlon Mlx Push-and-PuII Strategies Nature of the Product Stage in the Product Life CycIe Target Market Characteristics Type of Buying Decision AvaiIabIe Funds $ $ $ Cood Servlce lmage or ldea Cood Servlce lmage or ldea Convenlence goods Convenlence goods Sopplng goods Sopplng goods SpeclalLy goods SpeclalLy goods @ype of producL Cood Servlce lmage or ldea Cood Servlce lmage or ldea roducL naLure roducL naLure roducLs lc are lg roducLs lc are lg Lec Lec requlre demonsLraLlon are requlre demonsLraLlon are expenslve or requlre expenslve or requlre lnsLallaLlon sould be lnsLallaLlon sould be promoLed Lroug personal promoLed Lroug personal selllng selllng @ls compuLer ls perfecL for you lL as all Le sofLare prelnsLalled and a lefLanded mouse! lnexpenslve and self lnexpenslve and self servlce servlce producLs can rely on producLs can rely on adverLlslng and sales adverLlslng and sales promoLlon promoLlon 0FF or a|| sra|| app||arces %%& %%E lnLroducLory lnLroducLory CroL CroL MaLurlLy MaLurlLy uecllnlng uecllnlng Cood Servlce lmage or ldea Cood Servlce lmage or ldea SLage of llfe cycle SLage of llfe cycle en you are wen you are 4n 4n--the the--g4 g4 |t's reakfast-%o-Co Lac pockeL provldes you a dellclous breakfasL ln [usL Lo mlnuLes! New and New and Improved! Improved! roducL's @argeL MarkeL roducL's @argeL MarkeL vs Consumer Consumer Market Market ndustri ndustri Marke Marke @ype of Consumer @ype of Consumer AdverLlslng AdverLlslng Sales romoLlon Sales romoLlon ubllclLy ubllclLy ersonal Selllng ersonal Selllng number of Consumers number of Consumers Few Few Consumers Consumers Many Many Consumer Consumer Ceograplcal LocaLlon Ceograplcal LocaLlon Close Close Together Together 8pread 8pread Over a Over a Wide Are Wide Are ulsLrlbuLlon Cannel ulsLrlbuLlon Cannel @e promoLlonal mlx selecLlon ls affecLed by Le paL LaL a producL Lakes NTERVE0ARY . %equires personal selling %equires personal selling %equires personal %equires personal selling and advertising selling and advertising Businesses often reIy on previous use of promotionaI methods. roducL's Company 1960 2000 1980 n|stor|ca| erspect|ve 1970 1990 Think smaII. Less fIower. More power. roducL's Company roducL's Company Avallable unds Avallable unds Jal Jal MarL sLarLed as one small sLore ln MarL sLarLed as one small sLore ln Arkansas ln Jal Arkansas ln Jal MarL's early years local MarL's early years local nespaper adverLlslng and personal selllng nespaper adverLlslng and personal selllng ere all LaL Le small company could afford ere all LaL Le small company could afford @oday Le Jal @oday Le Jal MarL corporaLlon as MarL corporaLlon as lncreased lLs promoLlonal mlx Lo lnclude lncreased lLs promoLlonal mlx Lo lnclude Lelevlslon radlo nespapers speclal sales Lelevlslon radlo nespapers speclal sales bulleLlns and a Jal bulleLlns and a Jal MarL eb slLe ln order Lo MarL eb slLe ln order Lo promoLe lLs naLlonal neLork promoLe lLs naLlonal neLork Lxample Lxample roducL's Company roducL's Company %ony's P|zza |ds eat free! nge's P|zza Iree k|ds' mea|s! CompeLlng buslnesses use slmllar promoLlonal CompeLlng buslnesses use slmllar promoLlonal mlxes and Lend Lo follo Le leader mlxes and Lend Lo follo Le leader CompeLlLlon CompeLlLlon us ollcy romoLlon pollcy used only lL Le nexL parLner ln Le dlsLrlbuLlon cannel ManufacLurers uSP a producL Lo Le reLallers for sale ull ollcy romoLlon pollcy deslgned Lo creaLe consumer lnLeresL Jen a producL ls consumer drlven or uSPLu lnLo a sLore romoLlonal SLraLegles us SLraLegy us SLraLegy ull SLraLegy ull SLraLegy romoLlon romoLlon ulsLrlbuLlon ulsLrlbuLlon 8eLall SLore 8eLall SLore CusLomer CusLomer romoLlon romoLlon Push vs. Pull Promotion &trategy MarkeLlng ueparLmenL Lstab||shes a promot|on budget ||ocates resources oord|nates the campa|gn Determ|nes the r|ght promot|ona| m|x for the company SeLLlng Le @oLal romoLlonal 8udgeL AffordablllLy MeLod 8udgeL ls seL aL a level LaL a company can afford ercenLageofSales MeLod asL or forecasLed sales may be used CompeLlLlvearlLy MeLod 8udgeL maLces compeLlLors' ouLlays SeLLlng Le romoLlonal 8udgeL and Mlx SeLLlng Le @oLal romoLlonal 8udgeL Cb[ecLlveand@ask MeLod Speclflc ob[ecLlves are deflned @asks requlred Lo acleve ob[ecLlves are deLermlned CosLs of performlng Lasks are esLlmaLed Len summed Lo creaLe Le promoLlonal budgeL SeLLlng Le romoLlonal 8udgeL and Mlx SeLLlng Le Cverall romoLlon Mlx ueLermlned by Le ootote of eocb ptomotloool tool and Le selecLed ptomotloo mlx sttoteqy SeLLlng Le romoLlonal 8udgeL and Mlx kev|on kev|on emphas|zes emphas|zes advert|s|ng wh||e advert|s|ng wh||e von emphas|zes von emphas|zes persona| se|||ng persona| se|||ng SeLLlng Le romoLlonal 8udgeL and Mlx dvert|s|ng dvert|s|ng ersona| e|||ng ersona| e|||ng a|es romot|on a|es romot|on ub||c ke|at|ons ub||c ke|at|ons D|rect ,arket|ng D|rect ,arket|ng Nature of Lach Nature of Lach romot|ona| 1oo| romot|ona| 1oo| romoLlon Mlx SLraLegles 9osb sttoteqy Lrade promoLlons and personal selllng efforLs pus Le producL Lroug Le dlsLrlbuLlon cannels 9oll sttoteqy producers use adverLlslng and consumer sales promoLlons Lo generaLe sLrong consumer demand for producLs SeLLlng Le romoLlonal 8udgeL and Mlx @e need for lnLegraLed MarkeLlng CommunlcaLlons ConfllcLlng messages from dlfferenL sources or promoLlonal approaces can confuse company or brand lmages @e problem ls parLlcularly prevalenL en funcLlonal speclallsLs andle lndlvldual forms of markeLlng communlcaLlons lndependenLly lnLegraLed MarkeLlng CommunlcaLlons 14 74 ntegrated Narketing Communications lnLegraLed MarkeLlng CommunlcaLlons @e concepL under lc a company carefully lnLegraLes and coordlnaLes lLs many communlcaLlons cannels Lo dellver a clear conslsLenL and compelllng message abouL Le organlzaLlon and lLs producLs lMC lmplemenLaLlon ofLen requlres Le lrlng of a MarCom manager lnLegraLed MarkeLlng CommunlcaLlons 8eneflLs of lMC Carefully linked messages also help buyers by giving timely reminders, updated information and special offers which, when presented in a planned sequence, help them move comfortably through the stages of their buying process... and this reduces their 'misery of choice' in a complex and busy world. MC also makes messages more consistent and therefore more credible. This reduces risk in the mind of the buyer which, in turn, shortens the search process and helps to dictate the outcome of brand comparisons ConLd Consistent images and relevant, useful, messages help nurture long term relationships with customers. Customer databases can identify precisely which customers need what information when... and throughout their whole buying life. Finally, MC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature. gency fees are reduced by using a single agency for all communications Even if there are several agencies, time is saved when meetings bring all the agencies together - for briefings, creative sessions, tactical or strategic planning. This reduces workload and subsequent stress levels - one of the many benefits of MC. ConLd AlLoug lnLegraLed MarkeLlng CommunlcaLlons requlres a loL of efforL lL dellvers many beneflLs lL can creaLe compeLlLlve advanLage boosL sales and proflLs lle savlng money Llme and sLress 8eferences /Source otler, Armstrong, Agnihotri,Ehsanl ul Haque; Principles of Marketing ;13 th Edition 8cribd.com- EB1011 Chapter 16.ppt{Tata Mcraw Hill/rwin Chapter 16 : Promoting products using interactive and integrated marketing communications _ 8ch17sec/PromotionalMix.ppt promosellingpricing.ppt Promotional mix.ppt www.multimediamarketing.com