Marketing Marketing Communications Communications

StrategiesStrategiesObjectiveObjective:: Introducing and discussing the Introducing and discussing the

importance of different communication importance of different communication strategies. In the end of this week, students strategies. In the end of this week, students

will understand when and how to use pull and will understand when and how to use pull and push strategiespush strategies and different communication and different communication

tools through the producttools through the product life cycle of a life cycle of a

product.product.

Marketing CommunicationMarketing Communication StrategiesStrategies

Marketers can choose from two basic Marketers can choose from two basic marketing communicationsmarketing communications strategies; strategies; push promotionpush promotion; a push strategy involves ; a push strategy involves

“pushing” the product through “pushing” the product through distribution channels to final consumers. distribution channels to final consumers. Here, the producer directs its Here, the producer directs its promotional activities (primarily personal promotional activities (primarily personal selling and trade promotion) toward selling and trade promotion) toward channel members to induce them to carry channel members to induce them to carry the product and to promote it t final the product and to promote it t final consumers.consumers.

pull promotionpull promotion; the producer directs its ; the producer directs its promotional activities (advertising and promotional activities (advertising and consumer promotion) toward final consumer promotion) toward final consumers to induce them to buy the consumers to induce them to buy the product. Ifproduct. If the pull strategy is effective, the pull strategy is effective, consumers then will demand the product consumers then will demand the product from channel members.from channel members.

Companies generally use both of them in Companies generally use both of them in combination.combination.

Companies consider the following factors when Companies consider the following factors when developing their promotion mix strategies;developing their promotion mix strategies; type of product/markettype of product/market the buyer-readiness stagethe buyer-readiness stage the product life-cycle stagethe product life-cycle stage

Type of Product/MarketType of Product/Market

The importance of different promotion tools The importance of different promotion tools varies between consumer and business varies between consumer and business markets.markets.

Consumer goods companiesConsumer goods companies;; pull morepull more spend more on advertising, then sales spend more on advertising, then sales

promotion, personal selling, and public promotion, personal selling, and public relationsrelations

Industrial goods companiesIndustrial goods companies; ; push morepush more spend more on personal selling, then sales spend more on personal selling, then sales

promotion, advertising, public relationspromotion, advertising, public relations

Generally, personal selling is used more Generally, personal selling is used more heavily with expensive and risky goods heavily with expensive and risky goods and in markets with fewer and larger and in markets with fewer and larger sellers.sellers.

Buyer-Readiness StageBuyer-Readiness Stage

The effects of the promotional tools vary for The effects of the promotional tools vary for the different buyer-readiness stages. the different buyer-readiness stages.

In the In the awareness and knowledgeawareness and knowledge stages; stages; advertising and public relations play the advertising and public relations play the major role rather than personal selling.major role rather than personal selling.

In the In the customer liking, preference and customer liking, preference and convictionconviction stages; personal selling makes stages; personal selling makes more sense.more sense.

In the In the purchasepurchase stage (closing the sale stage); stage (closing the sale stage); sales calls and sales promotions are most sales calls and sales promotions are most effective. effective.

Product Life-Cycle StageProduct Life-Cycle Stage

The effects of different promotion tools also The effects of different promotion tools also vary with stages of the product life cycle.vary with stages of the product life cycle.

In the In the introduction stageintroduction stage; advertising and ; advertising and public relations are good for producing high public relations are good for producing high awareness and sales promotion is useful in awareness and sales promotion is useful in promoting early trial. Personal selling must promoting early trial. Personal selling must be used to get the trade to carry the product.be used to get the trade to carry the product.

In the In the growth stagegrowth stage; advertising and public ; advertising and public relations are still powerful but sales relations are still powerful but sales promotions can be reduced.promotions can be reduced.

In the In the mature stagemature stage; sales promotion ; sales promotion again becomes important relative to again becomes important relative to advertising. Advertising is only needed advertising. Advertising is only needed to remind the consumers of the to remind the consumers of the product.product.

In the In the decline stagedecline stage; advertising is ; advertising is kept to remind, public relations may kept to remind, public relations may drop, salespeople give up, sales drop, salespeople give up, sales promotions may still be used.promotions may still be used.

ResourcesResources

McCabe, S. (2009). Marketing McCabe, S. (2009). Marketing Communications in Tourism and Communications in Tourism and Hospitality: Concepts, Strategies and Hospitality: Concepts, Strategies and Cases. Butterworth-Heinemann: Oxford. Cases. Butterworth-Heinemann: Oxford.

Kotler, P.; Bowen, J. and Makens, J. (Kotler, P.; Bowen, J. and Makens, J. (20102010). ). Marketing for Hospitality and Tourism (Marketing for Hospitality and Tourism (5th. 5th. ed.). Prentice Halled.). Prentice Hall: New Jersey.: New Jersey.

Kotler, P. and Armstrong, G. (20Kotler, P. and Armstrong, G. (201010) ) Principles of Marketing (1Principles of Marketing (133th ed.). Prentice th ed.). Prentice HallHall: New Jersey.: New Jersey.