Promotions

Managing Integrated Marketing Communications (Chapter 17)

Managing Mass Communications, Sales Promotions & Personal Selling (Chapter 18)

Designing and Managing Integrated Marketing Communications

• What is the role of marketing communications?

• How do marketing communications work?

• What are the major steps in developing effective communications?

• What is the communications mix and how should it be set?

What are Marketing Communications?

Marketing communications are the means by which firms attempt to inform, persuade, and remind

consumers, directly or indirectly, about the products and brands they sell.

Modes of Marketing Communications

• Advertising• Events and experiences• Sales promotion• Public relations and publicity

• Direct & Interactive marketing• Word-of-mouth marketing• Personal selling

Communication Tools

Advertising• Print and broadcast ads• Packaging inserts• Motion pictures• Brochures and booklets• Posters• Billboards• POP displays• Logos• Videotapes

Sales Promotion• Contests, games, sweepstakes• Premiums• Sampling• Trade shows, exhibits• Coupons• Rebates• Entertainment• Continuity programs

Communication Tools

Events/ Experiences• Sports• Entertainment• Festivals• Arts• Causes• Factory tours• Company museums• Street activities

Public Relations• Press kits• Speeches• Seminars• Annual reports• Charitable donations• Publications• Community relations• Lobbying• Identity media• Company magazine

Communication Tools

Personal Selling• Sales presentations• Sales meetings• Incentive programs• Samples• Fairs and trade shows

• Word of Mouth Marketing• Person-to-person• Chat rooms• Blogs

Direct Marketing• Catalogs• Mailings• Telemarketing• Electronic shopping• TV shopping• Fax mail• E-mail• Voice mail• Blogs• Websites

Elements in the Communications Process

Response Hierarchy Models

Steps in Developing Effective Communication

• Identify Target Audience• Determine Objectives• Design Communications• Select Channels• Establish Budget• Decide on media mix• Measure Results• Manage Integrated Marketing Communication

Characteristics of The Marketing Communications Mix

Advertising• Pervasiveness• Amplified expressiveness• Impersonality

Sales Promotion• Communication• Incentive• Invitation

Characteristics of the Marketing Communications Mix

Public Relations and Publicity

• High credibility• Ability to catch buyers off

guard

Events and Experiences• Relevant• Involving• Implicit

Characteristics of the Marketing Communications Mix

Direct Marketing• Customized• Up-to-date• Interactive

Personal Selling• Personal interaction• Cultivation• Response

Word-of-Mouth Marketing• Credible• Personal• Timely

Factors in Setting Communications Mix

• Type of product market• Buyer readiness stage• Product life cycle stage

Advertising

Advertising

Any paid form of nonpersonal presentationand promotion of ideas, goods, orservices by an identified sponsor.

The Five M’s of Advertising

• Mission• Money• Message• Media• Measurement

Advertising Objectives

• Informative advertising• Persuasive advertising• Reminder advertising• Reinforcement advertising

Factors to Consider in Setting an Advertising Budget

• Stage in the product life cycle• Market share and consumer base• Competition and clutter• Advertising frequency• Product substitutability

Developing the Advertising Campaign

• Message generation and evaluation• Creative development and execution• Social responsibility review

Creative Brief

• Positioning statement• Key message• Target market• Objectives

• Key brand benefits• Brand promise• Evidence of promise• Media

TelevisionAdvantages

• Reaches broad spectrum of consumers

• Low cost per exposure• Ability to demonstrate product

use• Ability to portray image and

brand personality

Disadvantages• Brief • Clutter• High cost of production• High cost of placement• Lack of attention by viewers

Print Ads

Advantages• Detailed product information• Ability to communicate user

imagery• Flexibility• Ability to segment

Disadvantages• Passive medium• Clutter• Unable to demonstrate product

use

Print Ad Evaluation Criteria

• Is the message clear at a glance?• Is the benefit in the headline?• Des the illustration support the headline?• Does the first line of the copy support or explain the

headline and illustration?• Is the ad easy to read and follow?• Is the product easily identified?• Is the brand or sponsor clearly identified?

Media Selection

• Reach (R) •No of people/household exposed to a particular media schedule atleast once during a specified period

• Frequency•The number of times within the specific period an average person / household is exposed to the message

• Impact•Qualitative value of an exposure through a given medium

• Total No of Exposures (E)•E= R*F (Gross rating points)•GRP: one exposure to 1% of the target population•80% of homes with freq 3- 240 GRP

Choosing Among Major Media Types

• Target audience and media habits• Product characteristics• Message characteristics• Cost

Major Media Types

• Newspapers• Television• Direct mail• Radio• Magazines

• Outdoor• Yellow pages• Newsletters• Brochures• Telephone• Internet

Place Advertising

• Billboards• Public spaces• Product placement• Point-of-purchase

Measures of Audience Size

• Circulation• Audience• Effective audience• Effective ad-exposed audience

Factors Affecting Timing Patterns

• Buyer turnover• Purchase frequency• Forgetting rate

Media Schedule Patterns

• Continuity• Concentration• Flighting• Pulsing

Evaluating Advertising Effectiveness

• Communication Effect Research– Consumer feedback method– Portfolio tests– Laboratory tests

• Sales-Effect Research

Sales Promotion

Sales Promotion

Collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

Sales Promotion Tactics

Consumer-directed• Samples• Coupons• Cash refund offers• Price offs• Premiums• Prizes• Patronage rewards• Free trials• Tie-in promotions

Trade Sales Force-directed• Price offs• Allowances• Free goods• Sales contests• Trade shows• Specialty advertising

Using Sales Promotions

• Establish objectives

• Select tools

• Develop program

• Pretest

• Implement and control

• Evaluate results

Why Sponsor Events?

• To identify with a particular target market or life style

• To increase brand awareness

• To create or reinforce consumer perceptions of key brand image associations

• To enhance corporate image

• To create experiences and evoke feelings

• To express commitment to community

• To entertain key clients or reward employees

• To permit merchandising or promotional opportunities

Using Sponsored Events

• Establish objectives• Choose event opportunities• Design program• Implement and control• Measure effectiveness

Ideal Events

• Audience closely matches target market

• Event generates media attention

• Event is unique with few sponsors

• Event lends itself to ancillary activities

• Event reflects or enhances brand image of sponsor

Public Relations Functions

• Press relations• Product publicity• Corporate communications• Lobbying• Counseling

Marketing Public Relations Functions

• Assist in product launches

• Assist in repositioning mature products

• Build interest in a product category

• Influence specific target groups

• Defend products

• Build corporate image

Major Tools in Marketing PR

• Publications• Events• Sponsorships• News• Speeches• Public Service Activities• Identity Media

Steps in Marketing PR

• Establish objectives

• Choose messages

• Choose vehicles

• Implement and control

• Measure effectiveness

Direct Marketing

What is Direct Marketing?

Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to

customers without using market middlemen.

Direct Marketing

• Direct Mail• Catalog marketing• Interactive Marketing• Personal Selling

Types of Sales Representatives

• Deliverer• Order taker• Missionary• Technician• Demand creator• Solution vendor

Sales Tasks

• Prospecting• Targeting• Communicating• Selling• Servicing• Information gathering• Allocating

Managing the sales force

• Recruiting, selecting• Training• Supervising• Motivating • Evaluating

Principles of Personal Selling (SPIN)

• Situation questions• Problem questions• Implication questions• Need-payoff questions

Steps in Effective Selling

• Prospecting/Qualifying• Preapproach• Approach• Presentation• Overcoming objections• Closing• Follow-up

Prospecting FunnelKey Definitions

• Leads are names of possible clients that managers generate from databases.

• Inquiries are customer-initiated business contacts with a supplier firm.

• Prospects are leads and inquiries that the supplier firm has qualified as having significant sales and profit potential.

Prospecting Funnel

Loyal and Profitable Customer Base

Target Market Segments

Leads

Inquiries

Prospects

New Customers

Established Accounts

Prospecting FunnelIntensive Growth Strategies

Current NewOfferings Offerings

CurrentMarkets

NewMarkets

(Based on Ansoff 1957)

MarketPenetration

ProductDevelopment

MarketDevelopment Diversification

Transactional, Consultative, and Enterprise Selling

• Transactional Selling focuses on gaining the immediate order as quickly as possible.

• Consultative Selling entails gaining an in-depth understanding of customer requirements and operations, contributing analytical expertise to resolve pressing problems, and becoming a long-term, value-adding resource.

• Enterprise Selling requires senior managers to convincingly elaborate the benefits of combining and sharing complementary competencies andcapabilities across firms to form a strategic alliance.

(Rackham and DeVincentis 1999)(Rackham and DeVincentis 1999)

Transactional Selling1) 1) Call Preparation and Planning2) Opening (Complement, mystify, intrigue buyer; Opening

Statement)3) Selling Benefits (personalise)4) Handling Objections5) Managing the Presentation6) Closing

Gain the order as quickly as possible

Consultative SellingThe SPIN Selling Approach

1) Preliminaries2) Investigating3) Demonstrating Capabilities4) Obtaining Commitment

SR a long term trusted value added resource

(Rackham 1988)(Rackham 1988)

Consultative Selling

SPIN sequence of questions:1) Situation Questions -- data gathering questions about facts and

background.2) Problem Questions -- explore problems, difficulties, and

dissatisfaction areas which may be exploited.3) Implication Questions -- examine the consequences of customer

problems.4) Need-Payoff Questions -- get the customer to tell you the benefits

your product could offer.The purpose of questions in the larger sale is to uncover Implied Needs and to develop them into Explicit Needs.

(Rackham 1988)(Rackham 1988)

Types of Sales Commitments:1) Orders -- Where the customer makes a firm commitment to buy2) Advances -- Where an event takes place, either in the call or after

it, that moves the sale forward toward a decision3) Continuations -- Where the sale will continue but where no

specific action has been agreed upon by the customer to move it forward

4) No-Sales -- Where the customer actively refuses a commitment

Consultative SellingObtaining Commitment

(Rackham 1988)(Rackham 1988)

Thank You