Post on 01-Jan-2016
Samsung: http://www.youtube.com/watch?v=qXpVhTiePHQ&feature=PlayList&p=9326466B81B9D840&index=4
Tea: http://www.youtube.com/watch?v=K_zEiNPNo5A&feature=related
NBK: http://www.youtube.com/watch?v=cQ-Jsc3QnQc
360 Mall: http://www.youtube.com/watch?v=4c7Bj3isXFI
The company’s total promotion mix (also called the marketing communications mix) consists of a specific blend of:
Advertising: Any paid form of non-personal presentation and promotion of ideas, goods, or
services by an identified sponsor. Sales promotion:
Short‑term incentives to encourage the purchase or sale of a product or service (coupons, discounts, contests, lottery,…).
Personal selling: Personal presentation by the firm’s sales force for the purpose of making sales
and building customer relationships. Direct marketing:
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships (direct mails, catalogs, telephone marketing, online marketing,…).
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.
The Promotion Mix
Several factors are changing the face of marketing communications: Consumers are better informed and more communications
empowered. Mass markets have fragmented, leading marketers to a shift
away from mass marketing. Changes in communications technology have created new media
for interacting with targeted consumers. These factors have shifted the marketing
communications model so that firms are doing less broadcasting and more narrowcasting.
Integrated Marketing Communications
Integrated Marketing Communications A strong need for integrated marketing
communications exists. Integrated marketing communications:
Carefully integrating and coordinating the company’s many communication channels to deliver a clear, consistent, and compelling message about the organization and its products.
Shaping the Overall Promotion Mix Nature of advertising:
Can reach masses of geographically dispersed buyers at a low cost per exposure
Can repeat a message many times Consumers view advertised products as more
legitimate Is impersonal, one-way communication Can be very costly for some media types
Nature of sales promotion: Wide assortment of tools which depends on
company’s objectives Attracts consumer attention Can be used to dramatize product offers Offers strong incentives to buy Invites and rewards quick consumer response Effects are short-lived, what does it mean?
Shaping the Overall Promotion Mix
Nature of personal selling: Involves personal interaction between two or
more people Most effective tool at building preferences Allows relationship building and two-way
communication Requires long-term commitment to sales force Most expensive promotion tool
Shaping the Overall Promotion Mix
Nature of direct marketing: Many forms of direct marketing exist. Direct marketing forms share four primary
characteristics: Nonpublic Immediate/directed to a specific person Customized Interactive
Well suited to highly targeted marketing.
Shaping the Overall Promotion Mix
Nature of public relations: Very believable Reaches people who avoid salespeople and ads Can dramatize a company or product Tends to be used as an afterthought Can be effective and economical
Shaping the Overall Promotion Mix
Promotion Mix Strategies
Push strategy: Promotion strategy that calls for using the sales
force and trade promotion to push the product through channels.
Pull strategy: Promotion strategy that calls for spending a lot on
advertising and consumer promotion to induce final consumers to buy the product.
Manufacturer Wholesaler Retailer Consumer
Manufacturer Wholesaler Retailer Consumer
Push vs. Pull Strategies
Push strategy
Pull strategy
Manufacturer Wholesaler Retailer Consumer
Manufacturer Wholesaler Retailer Consumer
Advertising
Advertising has been used for centuries. U.S. advertisers spend more than $285 billion each year;
worldwide spending exceeds $604 billion. Advertising is used by:
Business firms Not-for-profit organizations Professionals Social agencies Government
Major Advertising Decisions
Setting advertising objectives Setting the advertising budget Developing advertising strategy Evaluating advertising campaigns
Major Advertising Decisions
Advertising objective: Specific communication task to be accomplished
with a specific target audience during a specific period of time.
Advertising objectives can be classified by purpose: Inform (e.g., new Crest toothpaste) Persuade (e.g., emphasize the benefits) Compare (e.g., between competitors; not allowed in
Kuwait, but very common in USA) Remind (e.g., Coke, Pepsi)
Major Advertising Decisions
Setting the advertising budget: Affordable method Percentage-of-sales method Competitive-parity method Objective-and-task method
Developing advertising strategy: Creating advertising messages.
Message strategy and message execution must break through the clutter
Selecting advertising media. Set reach, frequency, and impact goals
Reach: Percentage of people exposed to ad. Frequency: Number of times a person is exposed to
advertisement. Media Impact: The qualitative value of a message
exposure through a given medium. Choose among major media types Select specific media vehicles Decide on media timing
Major Advertising Decisions
Return on advertising investment: Is equal to the net return on advertising investment divided
by the costs of the advertising investment. Evaluating advertising involves:
Measuring the communication effects of an ad—“Copy Testing.”
Measuring the sales effects of an ad: Is the ad increasing sales?
Evaluating Advertising and Return on Advertising Investment
Organization of ad function: Small companies—one person in firm. Large companies—ad department that may also
work with an ad agency. Advertising agencies employ specialists who
perform ad tasks better then the company’s own staff can. Bring outside viewpoints to problem-solving. Wide range of experience.
Other Advertising Considerations
Public Relations
Public relations: Building good relations with the firm’s various
publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.
Public Relations
Public relations departments perform the following functions: Press relations or press agency Product publicity Public affairs Lobbying Investor relations Development
Public Relations Role and Impact
Public relations: May strongly impact public awareness at a lower
cost than advertising. Can yield spectacular results. Is beginning to play an increasingly important
brand-building role.