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Unit 5 Promotion Decision

The document outlines the marketing communication process, detailing the roles of the sender, encoding, message, channel, receiver, decoding, feedback, and noise, along with real-world examples. It also discusses the promotion mix, including advertising, sales promotion, public relations, personal selling, and digital marketing, emphasizing the importance of integrated marketing communications and measuring effectiveness. Additionally, it highlights the significance of advertising and personal selling in building customer relationships and driving sales, while addressing the challenges and strategies associated with each marketing tool.

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0% found this document useful (0 votes)
31 views14 pages

Unit 5 Promotion Decision

The document outlines the marketing communication process, detailing the roles of the sender, encoding, message, channel, receiver, decoding, feedback, and noise, along with real-world examples. It also discusses the promotion mix, including advertising, sales promotion, public relations, personal selling, and digital marketing, emphasizing the importance of integrated marketing communications and measuring effectiveness. Additionally, it highlights the significance of advertising and personal selling in building customer relationships and driving sales, while addressing the challenges and strategies associated with each marketing tool.

Uploaded by

parvezd2002
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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The marketing communication process, along with some real-world examples:

1. The Sender (Source)


●​ Who it is: The company or brand initiating the communication.
●​ What they do: They decide what message to send and how to send it.
●​ Example: Nike decides to promote a new line of running shoes.
2. Encoding
●​ What it is: Translating the message into a form that's understandable and appealing to
the target audience.
●​ How it's done: Using words, images, sounds, and other creative elements to capture the
message.
●​ Example: Nike creates an ad campaign featuring a famous athlete running in the new
shoes, with inspiring music and visuals.
3. The Message
●​ What it is: The actual content being communicated.
●​ Forms it takes: Ads, social media posts, press releases, brochures, etc.
●​ Example: The Nike ad campaign's message is: "These shoes will make you a better
runner."
4. The Channel (Medium)
●​ What it is: The way the message travels from the sender to the receiver.
●​ Types of channels:
○​ Traditional: TV, radio, print ads
○​ Digital: Social media, websites, email, online ads
○​ Direct: Mail, catalogs
○​ Personal: Salespeople, events, word-of-mouth
●​ Example: Nike airs its ad on TV, posts it on YouTube, and features it on their website.
5. The Receiver
●​ Who it is: The target audience – the people the message is intended for.
●​ What they do: They see, hear, or read the message.
●​ Example: Runners, athletes, and fitness enthusiasts see the Nike ad.
6. Decoding
●​ What it is: How the receiver interprets the message.
●​ Influences on decoding: The receiver's background, experiences, and attitudes.
●​ Example: Some runners may see the ad and think, "I need those shoes!" Others might
think, "That's a cool ad, but I'm happy with my current shoes."
7. Feedback
●​ What it is: The receiver's response to the message.
●​ Forms of feedback:
○​ Direct: Buying the product, visiting a website, commenting on a post
○​ Indirect: Changes in brand awareness, attitudes, or purchase intentions
●​ Example: Some runners buy the new Nike shoes, others visit the Nike website to learn
more, and some start talking about the ad with their friends.
8. Noise
●​ What it is: Anything that interferes with the communication process.
●​ Types of noise:
○​ External: Clutter of other ads, distractions
○​ Internal: Receiver's own thoughts or biases
●​ Example: A runner is watching the Nike ad but gets distracted by a phone call, or a
runner who dislikes the featured athlete might ignore the message.
Important Considerations
●​ Integrated Marketing Communications (IMC): Using a variety of channels to deliver a
consistent message.
●​ Target Audience: Clearly defining who you're trying to reach.
●​ Objectives: Setting specific goals for your communication (e.g., increase brand
awareness, drive sales).
●​ Measurement: Tracking the results of your communication efforts to see what's working.
The promotion mix, a crucial part of any marketing strategy:
What is the Promotion Mix?
The promotion mix refers to the specific blend of marketing and communication tools that a
business uses to:
●​ Communicate the value of their products or services
●​ Persuade target customers to buy
●​ Build customer relationships
It's a subset of the overall marketing mix (the 4 Ps: Product, Price, Place, and Promotion).
Key Elements of the Promotion Mix
The most common elements of the promotion mix are:
●​ Advertising: Paid, non-personal communication through various media channels (TV,
radio, print, online ads, etc.)
○​ Example: A local bakery running a radio ad announcing a new type of pastry.
●​ Sales Promotion: Short-term incentives to encourage immediate purchase or trial
(coupons, contests, discounts, free samples)
○​ Example: A clothing store offering a "buy one, get one 50% off" deal.
●​ Public Relations (PR): Building and maintaining positive relationships with the public,
often through unpaid media coverage (press releases, events, community involvement)
○​ Example: A tech company donating computers to a local school and receiving
positive news coverage.
●​ Personal Selling: Direct, two-way communication with potential customers to make a
sale (in-person meetings, phone calls, online chats)
○​ Example: A real estate agent showing a house to potential buyers.
●​ Direct Marketing: Communicating directly with individual consumers to generate a
response (email marketing, catalogs, telemarketing)
○​ Example: A bookstore sending a personalized email with book recommendations
based on a customer's past purchases.
●​ Digital Marketing: Using digital channels to promote products or services (social media
marketing, search engine optimization, content marketing)
○​ Example: A restaurant running a Facebook ad campaign targeting people in their
local area.
Developing the Right Mix
The ideal promotion mix will vary depending on factors like:
●​ Target audience: Who are you trying to reach?
●​ Product/service: What are you selling?
●​ Budget: How much can you spend on promotion?
●​ Marketing objectives: What do you want to achieve?
Important Considerations
●​ Integrated Marketing Communications (IMC): All elements of the promotion mix should
work together to deliver a consistent message.
●​ Measuring Effectiveness: It's important to track the results of your promotional efforts to
see what's working and what's not.
Advertising in Marketing:
Advertising is a crucial component of marketing, acting as a paid form of communication used to
promote products, services, or ideas. It's a strategic process that involves crafting persuasive
messages and delivering them through various media channels to influence target audiences.
Key Aspects of Advertising
1.​ Purpose:
○​ Inform: Introduce new products, educate consumers about features and benefits,
and build brand awareness.
○​ Persuade: Convince consumers that a product or service is the best choice, create
a desire for it, and influence purchasing decisions.
○​ Remind: Reinforce brand loyalty, remind consumers about existing products and
services, and maintain top-of-mind awareness.
2.​ Types of Advertising:
○​ Traditional Media: Television, radio, print (newspapers, magazines), outdoor
(billboards, posters).
○​ Digital Media: Internet (display ads, search engine ads, social media ads, video
ads), mobile (in-app ads, SMS marketing).
3.​ Advertising Strategy:
○​ Target Audience: Identify the specific group of consumers the advertisement aims
to reach.
○​ Messaging: Craft compelling and persuasive messages that resonate with the
target audience.
○​ Media Selection: Choose the most effective media channels to reach the target
audience.
○​ Creative Execution: Develop visually appealing and engaging advertisements.
○​ Budgeting: Allocate resources effectively to maximize the impact of the advertising
campaign.
○​ Measurement and Evaluation: Track the performance of the advertising campaign
and make adjustments as needed.
4.​ Benefits of Advertising:
○​ Increased Brand Awareness: Advertising helps to build brand recognition and
familiarity.
○​ Enhanced Brand Image: Advertising can shape consumer perceptions and create
a positive brand image.
○​ Higher Sales: Effective advertising can lead to increased sales and revenue.
○​ Customer Acquisition: Advertising can attract new customers and expand the
customer base.
○​ Competitive Advantage: Advertising can differentiate a product or service from
competitors.
5.​ Challenges of Advertising:
○​ Cost: Advertising can be expensive, especially for large-scale campaigns.
○​ Clutter: Consumers are exposed to numerous advertisements daily, making it
challenging to stand out.
○​ Measurement: It can be difficult to accurately measure the effectiveness of
advertising campaigns.
○​ Changing Media Landscape: The rise of digital media has disrupted traditional
advertising models.
Advertising is an essential tool for marketers to communicate with their target audiences, build
brand awareness, and drive sales. By understanding the key aspects of advertising and
developing effective strategies, businesses can leverage its power to achieve their marketing
goals.
Personal selling is a powerful tool in the marketing mix that involves direct interaction between a
salesperson and a potential customer. Unlike advertising or public relations, personal selling
allows for two-way communication, where the salesperson can tailor their message to the
specific needs and wants of the customer.
Key aspects of personal selling:
●​ Building relationships: Personal selling focuses on establishing and nurturing long-term
relationships with customers. This is achieved through trust, understanding customer
needs, and providing personalized solutions.
●​ Two-way communication: Salespeople engage in direct dialogue with customers,
allowing them to ask questions, address concerns, and provide feedback. This interaction
helps build rapport and trust.
●​ Persuasion and influence: Salespeople use their knowledge, skills, and expertise to
persuade customers to purchase a product or service. They highlight the benefits and
value proposition, addressing any objections the customer may have.
●​ Problem-solving: Salespeople act as problem solvers, identifying customer needs and
offering tailored solutions that meet those needs. This approach builds customer loyalty
and satisfaction.
●​ Flexibility: Personal selling allows for flexibility in the sales approach. Salespeople can
adapt their message and strategy based on the individual customer and their specific
situation.
Benefits of personal selling:
●​ Increased sales: Personal selling can be highly effective in closing deals and generating
revenue. The direct interaction and personalized approach can lead to higher conversion
rates.
●​ Improved customer satisfaction: Building strong customer relationships through
personal selling can lead to increased customer satisfaction and loyalty.
●​ Enhanced brand image: Salespeople act as brand ambassadors, representing the
company and its products. Positive interactions with salespeople can enhance the overall
brand image.
●​ Targeted marketing: Personal selling allows for targeted marketing, where salespeople
focus on specific customer segments with tailored messages and solutions.
●​ Immediate feedback: Salespeople can receive immediate feedback from customers,
allowing them to address concerns and make adjustments to their approach.
Challenges of personal selling:
●​ High cost: Personal selling can be expensive due to the costs associated with hiring,
training, and compensating salespeople.
●​ Limited reach: Personal selling has a limited reach compared to other marketing
methods, as it involves one-on-one interactions.
●​ Inconsistency: The effectiveness of personal selling can vary depending on the skills
and experience of the salesperson.
●​ Time-consuming: Building relationships and closing deals through personal selling can
be a time-consuming process.
Personal selling is a valuable marketing tool that can be highly effective in building
customer relationships, generating sales, and enhancing brand image. While it can be
expensive and time-consuming, the benefits often outweigh the challenges, especially
for complex or high-value products and services.
Sales promotion in marketing:
What is Sales Promotion?
Sales promotion is a marketing strategy where businesses use short-term incentives to
persuade customers to try or buy their products or services. It's designed to be a direct and
immediate call to action, encouraging customers to make a purchase right away.
Key Characteristics of Sales Promotion
●​ Short-term: Sales promotions are temporary, lasting for a specific period. This creates a
sense of urgency and encourages immediate action.
●​ Incentive-driven: They offer something extra to motivate customers, such as discounts,
coupons, contests, or free gifts.
●​ Measurable: Sales promotions have clear goals and results that can be easily tracked,
such as an increase in sales volume or customer engagement.
Objectives of Sales Promotion
●​ Increase sales: The primary goal is to boost sales revenue by attracting new customers,
encouraging repeat purchases, or increasing the quantity purchased.
●​ Clear out inventory: Promotions can help businesses sell excess stock or outdated
products.
●​ Introduce new products: They can create excitement and generate initial sales for a
new product launch.
●​ Build brand awareness: Promotions can attract attention and create buzz around a
brand or product.
●​ Reward loyal customers: They can show appreciation to existing customers and
encourage them to remain loyal.
Types of Sales Promotions
1.​ Consumer Promotions: These are aimed at end consumers to encourage purchases:
○​ Coupons: Offer discounts on products or services.
○​ Rebates: Provide a refund after a purchase.
○​ Samples: Allow customers to try a product before buying.
○​ Contests and sweepstakes: Offer a chance to win prizes.
○​ Loyalty programs: Reward repeat customers with exclusive deals.
○​ Point-of-purchase displays: Eye-catching displays that encourage impulse buys.
2.​ Trade Promotions: These are directed at intermediaries like retailers and wholesalers to
motivate them to promote a company's products:
○​ Discounts and allowances: Offer price reductions to retailers.
○​ Cooperative advertising: Share advertising costs with retailers.
○​ Spiffs: Incentives for sales staff to push specific products.
○​ Trade shows and events: Showcase products to potential buyers.
3.​ Sales Force Promotions: These motivate a company's sales team to achieve targets:
○​ Bonuses and commissions: Reward sales performance.
○​ Sales contests: Create competition and excitement.
○​ Recognition and awards: Acknowledge top performers.
Advantages of Sales Promotion
●​ Boosts sales quickly: Provides a short-term increase in sales revenue.
●​ Attracts new customers: Incentives can entice potential buyers.
●​ Clears out excess inventory: Helps manage stock levels.
●​ Creates excitement: Generates buzz around a product or brand.
●​ Easy to measure: Results can be tracked and analyzed.
Disadvantages of Sales Promotion
●​ Short-term effect: The sales increase may not be sustainable.
●​ Can damage brand image: Overuse of discounts can make a brand appear less
valuable.
●​ Costly: Promotions can be expensive to run.
●​ May attract bargain hunters: Customers may only buy during promotions.
Effective Sales Promotion Strategies
●​ Set clear objectives: Define what you want to achieve with the promotion.
●​ Target the right audience: Tailor the promotion to your ideal customers.
●​ Offer compelling incentives: Make the offer attractive and relevant.
●​ Promote the promotion: Use various channels to spread the word.
●​ Track and measure results: Analyze the effectiveness of the promotion.
Sales promotion is a valuable marketing tool when used strategically. It can provide a quick
boost to sales, introduce new products, and build brand awareness. However, it's important to
use promotions wisely and integrate them into a broader marketing plan to achieve long-term
success.
Publicity in marketing refers to the generation of awareness or visibility for a product, service,
person, or organization through non-paid means. It involves disseminating information to the
public, often through media channels, to create a positive perception and influence public
opinion. Key aspects of publicity in marketing:
Nature of Publicity:
●​ Unpaid: Unlike advertising, publicity is not paid for. It's earned through newsworthy
events, press releases, or other initiatives that attract media attention.
●​ Credibility: Publicity often carries more credibility than advertising because it's perceived
as unbiased information from a third-party source, such as a journalist or media outlet.
●​ Uncontrolled: Once information is released to the media, the organization loses control
over how it's presented and interpreted. This contrasts with advertising, where the
organization has complete control over the message.
Methods of Publicity:
●​ Press releases: Formal statements issued to the media about new products, events, or
company news.
●​ Media relations: Building relationships with journalists and media outlets to secure
favorable coverage.
●​ Public events: Hosting events that attract media attention and generate buzz.
●​ Social media: Engaging with audiences on social media platforms to create viral content
and generate discussion.
●​ Word-of-mouth: Encouraging satisfied customers to spread positive reviews and
recommendations.
Benefits of Publicity:
●​ Increased awareness: Publicity can reach a wide audience and create significant
awareness for a product or brand.
●​ Enhanced credibility: Positive media coverage can enhance the credibility and
reputation of an organization.
●​ Cost-effective: Publicity is a cost-effective way to reach a large audience compared to
paid advertising.
●​ Brand building: Consistent positive publicity can contribute to building a strong brand
image.
Challenges of Publicity:
●​ Lack of control: Organizations have limited control over how the media portrays them.
●​ Negative publicity: Negative media coverage can damage an organization's reputation.
●​ Measurement difficulties: It can be challenging to measure the effectiveness of publicity
efforts.
Publicity vs. Public Relations:
While often used interchangeably, publicity is a component of public relations (PR). PR is a
broader strategic communication process that aims to build and maintain a positive relationship
between an organization and its publics. Publicity is one tactic used within PR to achieve this
goal.
Publicity is a powerful marketing tool that can generate awareness, enhance credibility, and
build a strong brand image. However, it's essential to recognize the challenges associated with
it and use it strategically as part of a broader marketing plan.
Public relations (PR) is a crucial aspect of marketing that focuses on building and maintaining a
positive image and reputation for a company or brand. It involves various strategies and tactics
aimed at communicating effectively with the public, including customers, employees, investors,
and the media.

Key Functions of PR in Marketing:


●​ Building Brand Awareness: PR helps create buzz and generate media coverage about
a company, its products, or services. This can be achieved through press releases, media
events, and influencer collaborations.
●​ Enhancing Credibility: Positive media coverage and public endorsements can
significantly boost a company's credibility and trustworthiness. PR professionals work to
secure favorable reviews and testimonials from credible sources.
●​ Managing Reputation: In today's digital age, online reputation is critical. PR helps
monitor and manage online conversations about a brand, addressing any negative
feedback or misinformation.
●​ Crisis Communication: In the event of a crisis or negative publicity, PR professionals
play a crucial role in managing the communication and mitigating the damage to the
company's reputation.
●​ Building Relationships: PR involves building and maintaining relationships with key
stakeholders, including journalists, bloggers, influencers, and community leaders.
●​ Supporting Marketing Campaigns: PR can be used to amplify marketing campaigns by
generating media interest and creating a positive buzz around product launches or
promotions.
PR Tactics and Tools:
●​ Media Relations: Building relationships with journalists and securing media coverage.
●​ Press Releases: Distributing news and announcements to the media.
●​ Media Kits: Providing journalists with information and resources about a company.
●​ Public Events: Organizing events to generate media attention and engage with the
public.
●​ Influencer Marketing: Collaborating with influencers to reach a wider audience.
●​ Social Media: Using social media platforms to communicate with the public and manage
online reputation.
●​ Content Marketing: Creating valuable content to attract and engage the target audience.
How PR Differs from Advertising:
●​ Credibility: PR relies on earned media coverage, which is seen as more credible than
paid advertising.
●​ Control: Companies have less control over the message in PR compared to advertising,
where they pay for the placement.
●​ Cost: PR is often more cost-effective than advertising, as it relies on earned media rather
than paid placements.
Public relations is an essential component of marketing that focuses on building and
maintaining a positive image and reputation for a company. It involves various strategies and
tactics aimed at communicating effectively with the public and managing perceptions.
Direct marketing is a marketing strategy that relies on distributing information to a select group
of consumers through channels such as email, postal mail, catalogs, brochures, promotional
events, social media, telemarketing, text messaging, and websites. It is a form of advertising
that allows businesses to communicate directly with consumers without relying on
intermediaries such as newspapers or retailers.
Direct marketing aims to build and maintain brand awareness, establish customer loyalty, and
ultimately drive sales. It is a cost-effective way for businesses to reach a specific audience and
measure the success of their campaigns.
Key characteristics of direct marketing:
●​ Direct communication: Businesses communicate directly with consumers without using
intermediaries.
●​ Targeted audience: Businesses can target their marketing efforts to a specific audience
based on demographics, interests, or past behavior.
●​ Measurable results: Businesses can track the success of their direct marketing
campaigns by measuring response rates, sales, and other metrics.
Types of direct marketing:
●​ Email marketing: Sending targeted emails to consumers to promote products or
services.
●​ Postal mail marketing: Sending catalogs, brochures, or other promotional materials to
consumers through the mail.
●​ Telemarketing: Making phone calls to consumers to promote products or services.
●​ Social media marketing: Using social media platforms to connect with consumers and
promote products or services.
●​ Text messaging marketing: Sending text messages to consumers to promote products
or services.
●​ Website marketing: Using websites to promote products or services and collect leads.
Benefits of direct marketing:
●​ Cost-effective: Direct marketing can be a cost-effective way to reach a specific audience.
●​ Measurable results: Businesses can track the success of their direct marketing
campaigns.
●​ Personalized messaging: Businesses can personalize their marketing messages to
appeal to specific consumers.
●​ Builds relationships: Direct marketing can help businesses build relationships with their
customers.
Challenges of direct marketing:
●​ Can be intrusive: Some consumers may find direct marketing to be intrusive.
●​ Requires careful planning: Direct marketing campaigns require careful planning and
execution to be successful.
●​ Can be expensive: Some direct marketing methods, such as telemarketing, can be
expensive.
Direct marketing can be a valuable tool for businesses of all sizes. By carefully planning
and executing their campaigns, businesses can reach a specific audience, build
relationships with their customers, and drive sales.
Online marketing, also known as digital marketing, is a powerful way to connect with potential
customers and grow your business in today's digital world. It encompasses a wide range of
strategies and techniques that leverage the internet and other digital channels to promote your
brand, products, or services.
Key Components of Online Marketing:
1.​ Search Engine Optimization (SEO): This involves optimizing your website and content
to rank higher in search engine results pages (SERPs). Higher rankings mean more
visibility and organic (non-paid) traffic to your site.
2.​ Pay-Per-Click (PPC) Advertising: This is a paid advertising model where you bid on
keywords related to your business. When someone clicks on your ad, you pay a fee.
Popular platforms include Google Ads and social media advertising.
3.​ Social Media Marketing: Building a presence on social media platforms like Facebook,
Instagram, Twitter, and LinkedIn to engage with your target audience, share content, and
run targeted advertising campaigns.
4.​ Content Marketing: Creating valuable and engaging content (blog posts, articles, videos,
infographics) to attract and retain your audience. This helps establish your expertise and
build trust with potential customers.
5.​ Email Marketing: Building an email list and sending targeted email campaigns to nurture
leads, promote products or services, and share valuable content.
6.​ Influencer Marketing: Partnering with influencers in your industry to reach their audience
and promote your brand.
7.​ Affiliate Marketing: Partnering with affiliates who promote your products or services in
exchange for a commission on each sale.
8.​ Video Marketing: Creating and sharing videos on platforms like YouTube and social
media to engage your audience and promote your brand.
9.​ Mobile Marketing: Optimizing your website and marketing efforts for mobile devices, as
more and more people access the internet through their smartphones and tablets.
Benefits of Online Marketing:
●​ Global Reach: Connect with potential customers anywhere in the world.
●​ Targeted Audience: Reach specific demographics, interests, and behaviors.
●​ Measurable Results: Track and analyze your campaigns to see what's working and
what's not.
●​ Cost-Effective: Often more affordable than traditional marketing methods.
●​ Increased Engagement: Interact with your audience and build relationships.
Online Marketing Strategies:
●​ Define your target audience: Who are you trying to reach?
●​ Set clear goals: What do you want to achieve with your online marketing efforts?
●​ Develop a comprehensive strategy: Choose the right channels and tactics to reach
your target audience and achieve your goals.
●​ Create high-quality content: Engage your audience with valuable and interesting
content.
●​ Track and analyze your results: Measure your progress and make adjustments as
needed.
Tools and Resources:
●​ Google Analytics: Track website traffic and user behavior.
●​ Google Search Console: Monitor your website's performance in Google search results.
●​ Social media analytics: Track your social media engagement and reach.
●​ Email marketing platforms: Manage your email list and campaigns.
Online marketing is an essential part of any successful business in today's digital age. By
implementing a well-planned online marketing strategy, you can reach a wider audience, build
relationships with potential customers, and grow your business.

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