Marketing Communications

Marketing Communications (Promotion) Definition (Promotion)

Attempts by an organization to communicate with its customers, suppliers, and publics

Definition of communication Sharing of ideas thoughts between two or more

parties Communication is most effectively done when both

parties are actively involved in the process

Marketing Communications (Promotion) Types of communication

Interpersonal – direct communication between sender and receiver

Mass – sender uses an independent source (e.g., the mass media) to convey a message to multiple receivers

Advantages of interpersonal communication Immediate & direct feedback Verbal and non-verbal feedback Credibility Ability to adjust message

Paradox of marketing communication Due to efficiency issues, marketers typically communicate

via less effective means

Marketing Communications (Promotion) Promotion mix

Advertising – paid form of impersonal communication by an identified sponsor

Sales promotion – short-term incentives used to encourage immediate purchase

Public relations – building of positive relations with various publics through communicative means (e.g., events, media coverage, etc.)

Direct marketing – direct communication with potential customers to obtain an immediate response

Personal selling – process whereby a seller ascertains, activates, and meets a customer’s needs and wants to the mutual benefit of both the buyer and seller

Marketing Communications (Promotion) Developing an effective marketing communication

program Identify the target audience Determine the communication objectives (in terms of the

target audience) Awareness Knowledge Liking Preference Conviction Purchase Repeat purchase Brand loyalty

Marketing Communications (Promotion) Developing an effective marketing

communication program (Cont’d) Design a message

Content Structure Format

Choose the appropriate media Personal Impersonal

Select the message source Gather feedback

Marketing Communications (Promotion) Advantages of promotional tools

Advertising – broad reach, expressive Sales promotion – strong incentives to purchase,

but short-term Public relations – believable and economical, but

marketers have limited control Direct marketing – immediate and customized, but

often discounted by customers Personal selling – interactive, responsive and

relationship building, but limited in reach and expensive

Marketing Communications (Promotion) General promotion strategies

Push Pull

Integrated marketing communication Promotion mix Marketing mix – e.g., higher price often suggests

higher quality Non-promotion tools do communicate

Marketing Communications (Promotion) Advertising

Widely used -- $200 billion in expenditures annually

Types Product/Brand – stimulates demand for a specific

product or brand Pioneering Competitive/Comparative Reminder

Institutional – create or reinforce a “corporate” image Cooperative – sharing of an ad between two members

of a channel

Marketing Communications (Promotion) Comparative Ad from

Kelloggs (K-Plus)

Marketing Communications (Promotion) Brand (reminder)

advertising for Tums

Marketing Communications (Promotion)

Chevron’s web-advertising Example of Institutional Advertising

Marketing Communications (Promotion) Advertising

Functions Inform Persuade Remind

Components Message – the idea that is to be shared Execution – how is message shared (message +) Appeal – how to get audience involved (e.g., fear,

humor) Media – how to reach audience (TV, Magazine)

Marketing Communications (Promotion)

Heinz A Reminder Ad

Marketing Communications (Promotion) Advertising

Advertising effectiveness Does an ad meet its objectives? Involves research Needs to done – advertising is an investment

It’s performance should be assessed

Marketing Communications (Promotion) Sales promotion

Activities that provide a short-term incentive to buy by improving customers’ perceptions of value (Quality / Price)

Objective – increase short-term sales Consumer-oriented sales promotion

Samples Coupons Refunds/Rebates Premiums Price packs Contests/Sweepstakes Point-of-Purchase (POP) displays

Marketing Communications

A contest (type of sales promotion) – attempts to stimulate short-term sales for Van de Kamp

Example of media-delivered coupon – a type of consumer-oriented sales promotion

Marketing Communications (Promotion)

Marketing Communications (Promotion) Sales promotion

Trade-oriented sales promotion (i.e., Trade Promotion) Promotion targeted at re-sellers and organizational customers Objectives

Persuade “trade” to carry brand Improve brand’s shelf space/position Promote a brand to final consumers Part of a “Push” strategy

Tools Price-offs Allowances (including “slotting fees”) Discounts Specialty advertising items Trade show activities

Marketing Communications (Promotion) Specialty ads identify a corporate sponsor

Marketing Communications (Promotion) Public relations (PR)

Communication designed to build and maintain a favorable image for an organization, maintain the goodwill of its publics and explain its goals and purposes

Type of PR Internal External PR Tools

Web site Press releases Speeches – Corporate Speaker Groups Corporate identity materials – Calendars, pens, etc. Special events – ING Des Moines Marathon

Marketing Communications (Promotion) Direct marketing

Definition Direct communication with potential customers to obtain

an immediate response Often uses different media

Mail Telemarketing Direct sales Internet web-page

Marketing Communications (Promotion) Targeted Direct

Mail for Van Gogh Exhibition – a poster

Marketing Communications (Promotion) Personal Selling

Definition Process whereby a seller ascertains, activates, and

meets a customer’s needs and wants to the mutual benefit of both the buyer and seller

Marketing Communications (Promotion) Will those in the market

for a personal want to get information from TV commercials?

Personal selling is needed to communicate with organizational customers with regard to such high-priced products

Marketing Communications (Promotion) Advantages of personal selling

One-on-one communication Tailoring of message (to the specific receivers) Receive and react to immediate feedback (verbal and

non-verbal) Flexibility of message (it can change depending on the

situation and needs of receiver) Closure (ask for the “sell”)

Sales force may perform many functions Information provision Information gathering (research)

Marketing Communications (Promotion) Disadvantages of personal selling

Limited reach (typically reaches one customer) Expense (estimates vary widely, but it is costly) Less management control (sales managers are

not on every sales call) When is personal selling best used?

Want behavioral results (SALES) High risk products (these customers want

personal attention) Push strategy

Marketing Communications (Promotion) Role of sales force

Links firm to customers – DEVELOP & MAINTAIN RELATIONSHIPS

Selling process – multiple activities Prospecting Qualifying Approaching Presenting/demonstrating Handling objections Closing Following up

Marketing Communications (Promotion) Since selling involves

multiple activities, some organizations (like CDW) use a “team” selling approach