Post on 20-Jan-2016
MARKETING COMMUNICATION
Key Concepts
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The Role of Promotion
Communication by
marketers that informs,
persuades, and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response.
PromotionPromotion
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Promotion Strategy
A plan for the optimal
use of the elements of
promotion: Advertising Public Relations Sales Promotion Personal Selling
PromotionalStrategy
PromotionalStrategy
CompetitiveAdvantage
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The Role of Promotion in the Marketing Mix
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mix• Product• Place• Promotion• Price
Marketing Mix• Product• Place• Promotion• Price
Target MarketTarget Market
Promotional Mix
• Advertising• Public Relations• Sales Promotion• Personal Selling
Promotion Plan
Promotional Mix
• Advertising• Public Relations• Sales Promotion• Personal Selling
Promotion Plan
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Competitive Advantage
Unique featuresUnique features
Excellent serviceExcellent service
Low pricesLow prices
Rapid deliveryRapid delivery
High product qualityHigh product quality
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Goals and Tasks of Promotion
InformingInforming RemindingReminding
PersuadingPersuading
TargetAudienceTarget
Audience
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Goals and Tasks of Promotion
InformingInforming RemindingReminding
PersuadingPersuading
TargetAudienceTarget
Audience
PLC StagesPLC Stages:Introduction Early Growth
PLC Stages:PLC Stages:Growth Maturity
PLC Stages:PLC Stages:Maturity
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Goals and Tasks of Promotion
Remind customers that product may be needed
Remind customers where to buy product
Maintain customer awareness
Reminder Promotion
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The AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message.
Attention
Interest
Desire
Action
Attention
Interest
Desire
Action
AIDA ConceptAIDA
Concept
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The AIDA Concept
Action
Desire
Interest
Attention Cognitive (thinking)
Affective (feeling)
Conative (doing)
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The AIDA Concept
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Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes 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 frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
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Factors Affecting Promotional Mix
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The Promotional Mix
Combination of promotiontools used to reach the target market and fulfill the organization’s overall goals. Advertising Public Relations Sales Promotion Personal Selling
PromotionalMix
PromotionalMix
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The Promotional Mix
Impersonal, one-way Impersonal, one-way mass communication about mass communication about a product or organization a product or organization that is paid for by a that is paid for by a marketer.marketer.
AdvertisingAdvertising
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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.
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IMC Popularity GrowthProliferation of
thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques that generate immediate response
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Advertising MediaTraditional Advertising Media
NewAdvertising
Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Banner ads Viral marketing E- mail Interactive video
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AdvertisingAdvantages Disadvantages
Reach large number of people
Low cost per contact
Can be micro-targeted
Total cost is high
National reach is expensive for small companies
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Public Relations
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.
Public
RelationsPublic
Relations
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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
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Sales Promotion
Marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness.
Sales
PromotionSales
Promotion
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Sales Promotion
EndConsumers
EndConsumers
Trade Customers
Trade Customers
CompanyEmployees Company
Employees
Free samplesFree samples
ContestsContests
PremiumsPremiums
Trade ShowsTrade Shows
Vacation GiveawaysVacation Giveaways
CouponsCoupons
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Personal Selling
Planned presentation to one or more prospective buyers for the purpose of making a sale.
Personal
SellingPersonal
Selling
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Personal Selling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
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Categories of CommunicationCategories of
Communication
InterpersonalCommunicationInterpersonal
CommunicationMass
CommunicationMass
Communication
Marketing Communication
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As Senders As Receivers
Develop messages
Adapt messages
Spot new communication opportunities
Inform
Persuade
Remind
Marketing Communication
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As Senders As Receivers
Develop messages
Adapt messages
Spot new communication opportunities
Inform
Persuade
Remind
Marketing Communication
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NoiseNoise
SenderSender EncodingMessage
EncodingMessage
FeedbackChannel
FeedbackChannel
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
The Communication Process
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Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
AdvertisingIndirect and impersonal
Low
Little
Delayed
One-way
Yes
Yes
Fast
Same message to all audiences
Characteristics of the Elementsin the Promotional Mix
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Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Public RelationsUsually indirect, impersonal
Moderate to low
Little
Delayed
One-way
No
No
Usually fast
Usually no direct control
Characteristics of the Elementsin the Promotional Mix
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Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Sales PromotionUsually indirect and impersonal
Moderate to low
Little to moderate
Varies
Mostly one-way
Yes
Yes
Fast
Same message to varied target
Characteristics of the Elementsin the Promotional Mix
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Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Personal SellingDirect and face-to-face
High
Much
Immediate
Two-way
Yes
Yes
Slow
Tailored to prospect
Characteristics of the Elementsin the Promotional Mix
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MARKETING COMMUNICATION
IMPACT OF THE NEW MEDIAINTERNETBLOGGING
VIRAL MARKETING
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The Impact of Blogging
LO3
Sponsored by a company or
one of its brands and
maintained by one or more of
the company’s employees.
Sponsored by a company or
one of its brands and
maintained by one or more of
the company’s employees.
NoncorporateBlogs
NoncorporateBlogs
CorporateBlogs
CorporateBlogs
Independent and not
associated with the
marketing efforts of any
particular company or brand.
Independent and not
associated with the
marketing efforts of any
particular company or brand.
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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
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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
IntroductionIntroduction GrowthGrowth
MaturityMaturityDeclineDecline
Sal
es (
$)S
ales
($)
TimeTime
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Target Market Characteristics
For…
Widely scattered market
Informed buyers
Brand-loyal repeat purchasers
AdvertisingAdvertising
Sales PromotionSales Promotion
Less Personal SellingLess Personal Selling
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Type of Buying Decision
Advertising
Sales PromotionRoutineRoutine
Personal Selling
Neither Routinenor Complex
Neither Routinenor Complex
Advertising
Public Relations
Print AdvertisingComplexComplex
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