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Promotion Mixby Suwattana Sawatasuk
The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships
Promotion Mix (or Marketing Communication Mix)
Advertising Sales promotion Personal selling Public relations Direct marketing
Promotion Tools
Advertising: any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor i.e. broadcast, print, Internet, outdoor, and etc.
Sales promotion Personal selling Public relations Direct marketing
Promotion Tools
Advertising Sales promotion: short-term incentives
to encourage the purchase or sale of a product or service for a specific period of time i.e. discounts, coupons, displays, demonstrations, and etc.
Personal selling Public relations Direct marketing
Promotion Tools
Discount and allowances in Pricing Strategy: offering to customer without specified time period
Discount in Sales Promotion: offering to customer with condition and time frame to stimulate a short-term sales volume and more consumer demand in the short run
Discount and Allowances in Pricing Strategy VS. Sales Promotion
Advertising Sales promotion Personal selling: personal presentation
by the firm’s sales force for the purpose of making sales and building customer relationships i.e. sales presentations, trade shows, and etc.
Public relations Direct marketing
Promotion Tools
Advertising Sales promotion Personal selling Public relations: building good relations
with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events i.e. press releases, sponsorships, special events, Web pages, and etc.
Direct marketing
Promotion Tools
Advertising Sales promotion Personal selling Public relations Direct marketing: direct connections
with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships i.e. catalogs, telephone marketing, the Internet, mobile, and etc.
Promotion Tools
1. To communicate to the target groupa. To inform: provide information about
product/service or company to target groups such as marketing intermediaries, public, and consumer
b. To persuade: use the verbal/nonverbal communication in encouraging consumer buying decision
c. To remind: build brand awareness by using logo, branding, or feature of product/service or company to increase consumers' knowledge of a brand's existence
Objectives of Promotion
2. To change consumer demand
3. To correspondent with other marketing mixs
◦ If the product is in the introduction stage of Product Life Cycle
Promotion mix need to communicate to its target group in term of giving information than brand reminder. Sales promotion, such giveaway or discount, may be needed to stimulate the trade channel, retailer or wholesaler, to buy more products.
Objectives of Promotion (con’t)
To inform, persuade, or remind?
To inform, persuade, or remind?
To inform, persuade, or remind?
Integrated marketing communications
(IMC)
The carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products
Integrated Marketing Communications (IMC)
IMC: carefully blended mix of promotion tools
Consistent, clear, and compelling
company and brand
messages
Personal selling
Public relations
Direct marketing
Sales promotion
Advertising
IMC for Dutch Mill Group
PR news
Advertising
Event
What could be the problem for communication without IMC?
As each communication (advertising, personal selling, PR, direct marketing, sales promotion) often come from different parts of the company, if the company fails to integrate those various communication channels, it will result in blurred customer brand perceptions.
Communication without IMC?
Communication Process
Elements in the Communication Process
Sender EncodingMessag
eDecoding
Receiver
Noise
Feedback Response
Media
9 Elements of Communications
SenderReceiv
er
The party sending the message to another party
The party receiving the message sent by another party
1 2
9 Elements of Communications
SenderReceiv
erMessag
e
Media
The communication channels through which the message
moves from sender to receiver
The set of symbols that the sender
transmits
3
4
9 Elements of Communications
Sender EncodingMessag
eDecoding
Receiver
Media
The process of putting
thought into symbolic form
The process by which the receiver assigns meaning to
the symbols encoded by the sender
5 6
9 Elements of Communications
Sender
EncodingMessag
eDecoding
Receiver
Feedback Response
Media
The reactions of the
receiver after being exposed
to the message
The part of the receiver’s response
communicated back to the
sender
78
9 Elements of Communications
Sender
EncodingMessag
eDecoding
Receiver
Noise
FeedbackRespons
e
Media
The unplanned static or distortion
during the communication
process, which results in the receiver’s
getting a different message than the one
the sender sent
9
Steps in Developing Effective Marketing
Communication
1. Identifying the target audience2. Determining the communication
objectives3. Designing a message4. Choosing media5. Selecting the message source6. Collecting feedback
Steps in Developing Effective Marketing Communication
Who will be your target audience?
◦ Current users or potential buyers?
◦ Those who make the buying decision or those who influence it?
1. Identifying the target audience
What response marketers seek? ◦ Need to know where the target audience now
stands and to what stage it needs to be moved.
◦ 6 Buyer-readiness stages The stages that consumers normally pass through on
their way to purchase, including awareness, knowledge, liking, preference, conviction, and purchase
2. Determining the Communication Objectives
Awareness
Knowledge
LikingPreferenc
eConvictio
nPurchase
Info. about
product
Feeling favorable
about product
Preferring this brand to other brands
Confidence in this
brand, it is the best
Message should get Attention, hold Interest, arouse Desire, and obtain Action (AIDA model)
Must decide what to say (message content) and how to say (message structure and format)
3. Designing a Message
Personal Communication Channels: Channels through which two or more people communicate directly with each other, including face to face, on the phone, through mail or e-mail, or even through an Internet “chat”◦ Word-of-mouth influence: personal commu. about a product
between target buyers and neighbors, friends, family members, and associates.
◦ Buzz marketing: cultivating opinion leaders and getting them to spread info. about a product or service to others in their communities.
Nonpersonal Communication Channels: Media that carry messages without personal contact or feedback, including major media, atmospheres, and events
4. Choosing Media
Messages delivered by highly credible sources are more persuasive for target audiences.
Picking the wrong spokesperson can result in embarrassment and tarnished image.
Selecting the Message Source
“Celebrity endorsement”
After sending the message, the communicator mush research its effect on the target audience.
Feedback on marketing communications may suggest changes in the promotion program or in the product offer itself.
Collecting Feedback
Setting the Total Promotion Budget and Mix
Affordable method◦ Setting the promotion budget at the level management thinks the
company can afford
Percentage-of-Sales method◦ Setting the promotion budget at a certain percentage of current or
forecasted sales or as a percentage of the unit sales price
Competitive-Parity method◦ Setting the promotion budget to match competitors’ outlay
Objective-and-Task method◦ Developing the promotion budget by:
Defining specific objectives Determining the tasks that must be performed to achieve these
objectives Estimating the costs of performing these tasks. The sum of these costs is
the proposed promotion budget
Setting the Total Promotion Budget
Push strategy: a promotion strategy that calls for using the sales force and trade promotion to push the product through channels.
The producer promotes the product to channel members who in turn promote it to final consumers to create consumer demand for a product.
Push vs. Pull Promotion Strategy
BigC catalog
Pull strategy: a promotion strategy that calls for spending a lot on advertising and consumer promotion to induce final consumers to buy the product, creating a demand vacuum that “pulls” the product through the channel
If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.
Push vs. Pull Promotion Strategy
Push vs. Pull Promotion Strategy
ProducerRetailers
and wholesalers
Consumers
ProducerRetailers
and wholesalers
Consumers
Producer marketing activities
(personal selling, trade promotion,
other)
Reseller marketing activities
(personal selling, advertising, sales
promotion, other)
Producer marketing activities
(Consumer advertising, sales promotion, other)
PUSH PUSH
PULL PULL
Push strategy involves convincing trade intermediary channel members to "push" the product through the distribution channels to the ultimate consumer via promotions and personal selling efforts.
Pull strategy attempts to get consumers to "pull" the product from the manufacturer through the marketing channel.
Summary: Push vs. Pull Strategy
Introduction: Ad and PR are good for producing high awareness. Sales promotion is useful in promoting early trial. Personal selling must be used to get trade to carry the product.
Growth: Ad and PR continue to be powerful influences. Sales promotion can be reduced because fewer incentives are needed.
Mature: Sales promotion becomes important relative to ad. buyers know the brand, and ad is needed only to remind them of product.
Decline: Ad is kept at a reminder level, PR is dropped. Salespeople give the product only a little attention. Sales promotions might continue to be strong.
Product Life Cycle Stages and Promotion Tools
