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Integrated Marketing Communications
The Role of Promotion
Promotion:
• Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.
PromotionalStrategy
PromotionalStrategy
A plan for the optimal use of the elements of promotion:
Advertising Public Relations Sales Promotion Personal SellingCompetitive
Advantage
The Role of Promotionin the Marketing Mix
• Overall Marketing Objectives
• Overall Marketing Objectives
• Marketing Mix• Product• Place• Promotion• Price
• Marketing Mix• Product• Place• Promotion• Price
• Target Market• Target Market
• Promotional Mix
• Advertising• Public Relations• Sales Promotion• Personal Selling
• Promotion Plan
• Promotional Mix
• Advertising• Public Relations• Sales Promotion• Personal Selling
• Promotion Plan
Competitive Advantage
Unique featuresUnique features
Excellent serviceExcellent service
Low pricesLow prices
Rapid deliveryRapid delivery
High product qualityHigh product quality
The Promotional Mix
PromotionalMix
PromotionalMix Combination of promotion
tools used to reach the target market and fulfill theorganization’s overall goals.
Combination of promotiontools used to reach the target market and fulfill theorganization’s overall goals.
Advertising Public Relations Sales Promotion Personal Selling
AdvertisingAdvertising Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.
Advertising MediaTraditional
Advertising MediaTraditional
Advertising Media NewAdvertising Media
NewAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Banner ads Viral marketing E- mail Interactive video
Public Relations
PublicRelations
PublicRelations
The marketing function thatevaluates 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.
The Function of Public Relations
• Maintain a positive image
• Educate the public about the company’s objectives
• Introduce new products
• Support the sales effort
• Generate favorable publicity
Sales Promotion
SalesPromotion
SalesPromotion
Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness.
Sales PromotionFree samplesFree samples
ContestsContests
PremiumsPremiums
Trade ShowsTrade Shows
Vacation GiveawaysVacation Giveaways
CouponsCoupons
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Trade CustomersTrade Customers
Personal Selling
PersonalSelling
PersonalSelling
Planned presentation to one or more prospective buyers for the purpose of making a sale.
Nature of Each Promotional Tool
Advertising • Reaches large, geographically dispersed audiences, often with high frequency
• Low cost per exposure, though overall costs are high
• Consumers perceive advertised goods as more legitimate
• Dramatizes company/brand• Builds brand image; may stimulate
short-term sales• Impersonal; one-way
communication
Personal Selling • Most effective tool for building buyers’ preferences, convictions, and actions
• Personal interaction allows for feedback and adjustments
• Relationship-oriented• Buyers are more attentive• Sales force represents a long-term
commitment• Most expensive of the promotional
tools
Sales Promotion • May be targeted at the trade or ultimate consumer
• Makes use of a variety of formats: premiums, coupons, contests, etc.
• Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales
• Stimulates quick response• Short-lived• Not effective at building long-term
brand preferences
Public Relations • Highly credible• Many forms: news stories, news
features, events and sponsorships, etc.
• Reaches many prospects missed via other forms of promotion
• Dramatizes company or benefits• Often the most underused element
in the promotional mix
Direct Marketing Many forms: Telephone marketing, direct mail, online marketing, etc.Four characteristics:
NonpublicImmediateCustomizedInteractive
Well-suited to highly targeted marketing efforts
REVIEW LEARNING OUTCOMEElements of the Promotional Mix
Goals and Tasks of Promotion
InformingInforming RemindingReminding
PersuadingPersuading
TargetAudience
TargetAudience
PLC Stages:Introduction Early Growth
PLC Stages:Maturity
PLC Stages:Growth Maturity
Goals and Tasks of Promotion
Increase awareness
Explain how product works
Suggest new uses
Build company image
Informative Promotion
Goals and Tasks of Promotion
Persuasive Promotion
Encourage brand switching
Change customers’ perceptions of product attributes
Influence immediate buying decision
Persuade customers to call
Goals and Tasks of Promotion
• Reminder Promotion
Remind customers that product may be needed
Remind customers where to buy product
Maintain customer awareness
Factors Affecting the Choice of Promotional Mix
Nature of the productNature of the product
Stage in PLCStage in PLC
Target market factorsTarget market factors
Type of buying decisionType of buying decision
Promotion fundsPromotion funds
Push or pull strategyPush or pull strategy
Stage in the Product Life Cycle
Light Advertising; pre-introductionpublicity
Heavy use of Advertising;PR forawareness;sales promotionfor trial
AD/PRdecrease;limited sales promotion; personal selling fordistribution
Ads decrease;sales promotion;personal selling;reminder & persuasive
Advertising, PR, brandloyalty;personal selling fordistribution
Introduction Growth
MaturityDecline
Sale
s ($
)
Time
Target Market Characteristics
AdvertisingAdvertising
Sales PromotionSales Promotion
Less Personal SellingLess Personal Selling
For…
Widely scattered market
Informed buyers
Brand-loyal repeat purchasers
Type of Buying Decision
Advertising
Sales PromotionRoutineRoutine
Personal Selling
Neither Routinenor Complex
Neither Routinenor Complex
Advertising
Public Relations
Print AdvertisingComplexComplex
Push and Pull Strategies
• Manufacturer• promotes to • wholesaler
• Manufacturer• promotes to • wholesaler
• Wholesaler • promotes to
• retailer
• Wholesaler • promotes to
• retailer
• Retailer • promotes to• consumer
• Retailer • promotes to• consumer
• Consumer• buys from
• retailer
• Consumer• buys from
• retailer
• PUSH STRATEGY
• Orders to manufacturer
• Manufacturer• promotes to
• consumer
• Manufacturer• promotes to
• consumer
• Consumer • demands • product
• from retailer
• Consumer • demands • product
• from retailer
• Retailer • demands • product
• from wholesaler
• Retailer • demands • product
• from wholesaler
• Wholesaler • demands
• product from• manufacturer
• Wholesaler • demands
• product from• manufacturer
• Orders to manufacturer
• PULL STRATEGY
REVIEW LEARNING OUTCOMEFactors Affecting Promotional Mix
Integrated Marketing Communications
IntegratedMarketing
Communications
IntegratedMarketing
Communications
The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.
IMC Popularity Growth
• Proliferation of thousands of media choices
• Fragmentation of the mass market
• Slash of advertising spending in favor of promotional techniques that generate immediate response
REVIEW LEARNING OUTCOME Integrated Marketing Communications
Steps in Developing Effective Communications
Identify target audience
Determine objectives
Design communications
Decide on media mix Establish budget Select channels
Measure results Manage IMC
• Step 1: Identifying the Target Audience– Affects decisions related to what, how, when, and
where message will be said, as well as who will say it
• Step 2: Determining Communication Objectives– Objectives may be set to move buyers through the
six readiness stages
• Step 3: Designing a Message– AIDA framework guides message design– Message content
• Rational • Emotional appeals: fear, humor, guilt, shame, love• Moral appeals
• Designing a Message– Message structure
• Draw a conclusion?• One-sided or two-sided?• Strongest arguments
presented first or last?– Message format Novelty, contrast, and more
• Step 4: Choosing Media– Personal communication channels
• Includes face-to-face, phone, mail, and Internet chat communications
• Word-of-mouth influence is often critical• Buzz marketing cultivates opinion leaders
– Nonpersonal communication channels• Includes media, atmosphere, and events
• Step 5: Selecting the Message Source– Highly credible sources are more persuasive– A poor choice of spokesperson can tarnish a brand
Setting the Promotional Budget and Mix
• Setting the Total Promotional Budget– Affordability Method
• Budget is set at a level that a company can afford
– Percentage-of-Sales Method• Past or forecasted sales may
be used– Competitive-Parity Method
• Budget matches competitors’ outlays
Setting the Promotional Budget and Mix
• Setting the Total Promotional Budget– Objective-and-Task Method
• Specific objectives are defined• Tasks required to achieve objectives
are determined• Costs of performing tasks are
estimated, then summed to create the promotional budget
Setting the Promotional Budget and Mix
• Setting the Overall Promotion Mix– Determined by the nature of each promotional tool
and the selected promotion mix strategy
• Step 6: Collecting Feedback– Recognition, recall, and behavioral measures are
assessed– May suggest changes in product/promotion
Corporate Communication V/S Marketing CommunicationsCorporate communications Marketing
communications
Aim building company's reputation brand building
Scope of communication
Company / Enterprise product/produce or service provided by the company
Target Audience multiple stakeholders customer
Mode multiple channels defined set of channels
Creativity less room for creativity more room for creativity
Consistency With corporate identity, image, philosophy; product & brand attributes
With product and brand attributes
Thank you…