Promotion and Integrated Marketing

Communication
MARKETING
MARKETING COMMUNICATIONS
COMMUNICATIONS

•• MARKETER
MARKETERINITIATED
INITIATEDTECHNIQUES
TECHNIQUESUSED
USEDTOTOSET
SETUP
UP
CHANNELS
CHANNELSOFOFINFORMATION
INFORMATIONANDANDPERSUASION
PERSUASIONWITH
WITH
TARGETED
TARGETEDAUDIENCES
AUDIENCESTOTOINFLUENCE
INFLUENCEATTITUDES
ATTITUDESAND
AND
BEHAVIOR
BEHAVIOR

“Promotion”
“Promotion”

Message
Messageand
andMedia
Media
•• MARKETING
MARKETINGCOMMUNICATIONS
COMMUNICATIONSMIX MIX

“Tool
“ToolBox”
Box”ofofMedia
Mediaand
andTechniques
Techniques

Integration
Integrationand
andCoordination
Coordination

Based
BasedononCommunications
CommunicationsModel
Model
MAJOR OBJECTIVES OF
MARKETING COMMUNICATIONS

Informing
Informing Persuading
Persuading

Reminding
Reminding
MARKETING COMMUNICATIONS OBJECTIVES

• Increase Market Penetration

• Develop Repeat Purchase Behavior
• Establish Customer Relationships
• Increase Rate of Consumption
• Encourage Product Trial
• Stimulate Impulse Buying
• Stimulate Demand
• Differentiate the Product
• Establish a Product Image
• Influence Sales Volume
• Establish, Modify, or Reinforce
Attitudes
• Develop Sales Leads
• Stimulate Interest
• Establish Understanding
• Build Support & Acceptance
ELEMENTS OF THE
MARKETING COMMUNICATIONS MIX

1.
1.Advertising
Advertising

5.
5. Direct
DirectMarketing
Marketing 2.
2. Public
PublicRelations
Relations

3.
3.Sales
Sales
4.
4. Personal
Personal Selling
Selling Promotion
Promotion

Integrated Marketing Communications (IMC)

is the strategic integration of multiple means of
communicating with target markets
 Monitoring,
Monitoring,Evaluating,
Evaluating,
Controlling
Controlling
Integration
Integration&&Implementation
Implementation
PULL
PUSH vs.
Program
ProgramDevelopment
Development
METHODS
Budget
BudgetDevelopment
Development
Communications
CommunicationsProcess
Process
Analysis
Analysis
Situation
SituationAnalysis
Analysis
Marketing
MarketingPlan
PlanReview
Review
MARKETING COMMUNICATIONS PLANNING
Push and Pull Strategies

• Push strategy is directed toward the channel members

• Provide incentives for those in the distribution channels to buy the product
• Pull strategy is directed toward the ultimate purchaser
• The focus is on creating demand at the household or ultimate consumer level
Approaches to Determining the Promotional
Budget
• Percentage of sales
• A fixed amount of money per past or projected sales
• Probably the most widely used as it is simple
• But, what about cause and effect?

• All available funds/All you can afford

• Budget what is left over for promotional expenditures
• New companies often put all available funds into promotion to
penetrate the market
• But, you can miss opportunities or overspend
 Approaches to Determining the Promotional
Budget
• Competitive parity/Follow the competition
• Adopt the average ratio for promotional expenses to
sales for the industry or main competitor; or the same
absolute amount as a competitor
• But, what if they do not know what they are doing and/or
strategies and tactics are different?
• Objective and task
• 1) Determine objectives; 2) Determine relationship
between expenditures and ability to achieve objective; 3)
Set a budget that allows the achievement of these goals
 Psychological Processes

• The high involvement decision process

Need -> search -> evaluation -> purchase -> outcomes
• The adoption process
Awareness -> interest -> evaluation -> trial -> adoption -> post-adoption
confirmation
• Buyer readiness states/Hierarchy of effects
Awareness -> knowledge -> liking -> preference -> conviction -> purchase
• AIDA
Awareness -> Interest -> Desire -> Action
Selection of the Promotional Mix

• PRODUCT CHARACTERISTICS
• Industrial good/technical good
• Need personal selling; customers want to receive information,
inspect and compare the products
• Consumer package goods/frequently purchase items
• Advertising and sales promotion to reach market
• Unit value
• Low cost must use mass media approaches, with high unit cost
personal selling is effective
• Customization
• Customized often requires personal selling
Selection of the Promotional Mix

• CUSTOMER CHARACTERISTCS
• Industrial versus consumer market
• Consumers are easier to reach (decision maker) through media
sources; industrial buyers typically have a more formal buying
process, requiring personal selling
• Number of customers
• For a small number of customers, personal selling can play a much
more important role
• Geographical dispersion
• Not only affects the type of promotional effort, but the media
choices
 Advertising Defined

• ADVERTISING
• Any paid form of non-personal presentation and promotion of ideas, goods,
or services by an identified sponsor
• Magazines, newspaper, outdoor posters, direct mail, radio televisions, etc.
• Key issues
• The time or media space is paid for
• The sponsor is identified and has control over the promotional activity
DEVELOPING AN
ADVERTISING CAMPAIGN

Design
Creative
Strategy

Evaluate
Select Determine Determine
Advertising
Target Advertising Advertising
Effective-
Market Objectives Budget
ness

Select &
Schedule
Media
ADVERTISING
ADVERTISING STRATEGY
STRATEGY

•• MESSAGE
MESSAGESTRATEGIES
STRATEGIES
Objective
Objectivevs.
vs.Subjective
SubjectiveMessages
Messages
Comparative
ComparativeMessage
MessageTechniques
Techniques
Emotional
EmotionalTechniques:
Techniques:Mood,
Mood,Fear,
Fear,Humor
Humor
Celebrity
CelebrityEndorsements
Endorsementsvs.vs.Non-Celebrity
Non-CelebrityImages
Images

•• MEDIA
MEDIASTRATEGIES
STRATEGIES
Broadcast:
Broadcast:Television,
Television,Radio
Radio
Print:
Print:Newspapers,
Newspapers,Magazines,
Magazines,Journals
Journals
Specialized:
Specialized:Outdoor,
Outdoor,Transit,
Transit,Direct
DirectMail,
Mail,Internet
Internet
ADVERTISING
ADVERTISING STRATEGY
STRATEGY

•• RELATIVE
RELATIVESTRENGTHS
STRENGTHSAND ANDWEAKNESSES
WEAKNESSESOF OF
STRATEGIES
STRATEGIES

Effectiveness
Effectivenessand
andEfficiency:
Efficiency:Reach
Reachand
andFrequency
Frequency

Target
TargetCapabilities
Capabilities

Cost
Cost

Believability
Believability

Appropriateness
Appropriatenessfor forMessage
Message(Image,
(Image,Details)
Details)
Reach & Frequency

• Reach: number of different target consumers who

are exposed to a message at least once during a
specific period of time
• Frequency: number of times an individual is
exposed to a given message during a specific period
of time
• Cost per contact: cost of reaching one member of
the target market
• Allows comparison across advertising strategy vehicles
EVALUATING ADVERTISING EFFECTIVENESS

Pretesting
Pretesting Tools:
• Focus Groups
• Screening
• Persuasion Scores

Tools:
Posttesting
Posttesting
• Unaided Recall Tests
• Aided Recall Tests
• Inquiry Evaluations

Evaluations
Evaluations
Effectiveness
Sales Effectiveness
Sales Tools:
• Monitor Sales
PUBLIC
PUBLIC RELATIONS
RELATIONS

•• EFFORTS
EFFORTSTOTOIMPROVE
IMPROVEAND
ANDMANAGE
MANAGERELATIONSHIPS
RELATIONSHIPSWITH
WITH
PUBLICS
PUBLICS

Customers
Customers

Stock
StockHolders
Holders

Community
Community

Government
Government

News
NewsMedia
Media
•• PROACTIVE
PROACTIVEvs.vs.REACTIVE
REACTIVE

DuPont
DuPontvs.
vs.Exxon
Exxon
•• PUBLICITY
PUBLICITY

Not
NotOvertly
OvertlySponsored
Sponsored

High
HighCredibility
Credibility
PUBLIC RELATIONS
Public Relations Functions

Press
Press
Relations
Relations

Advising
Advising Product
Product
Management
Management Promotions
Promotions

Corporate
Corporate
Lobbying
Lobbying Communications
Communications
 Personal Selling

• PERSONAL SELLING
• Oral presentation in a conversation with one or more
prospective purchasers for the purpose of making a sale
• Personal selling represents the most popular promotional
effort in terms of financial expenditures and number of
people employed
• Personal Selling is:
• (1) Dyadic, (2) Flexible, (3) Focused (personalized), and (4) Often
results directly in a sale
• Other promotional elements move the customer toward the sale,
personal selling closes the sale
PERSONAL
PERSONALSELLING
SELLINGAND
AND
SALES
SALES MANAGEMENT
MANAGEMENT

•• FUNCTIONS
FUNCTIONSAND
ANDCONTRIBUTIONS
CONTRIBUTIONSOF
OF
PERSONAL
PERSONALSELLING
SELLING
“Boundary
“BoundarySpanner”
Spanner”Role,
Role,Relationship
RelationshipManagement
Management(Trust)
(Trust)
Two-Way
Two-WayInformation
InformationChannel
Channel(Diffusion
(Diffusionof
ofProduct
Product and
andMarket
Market
Information)
Information)
Facilitate
FacilitateExchange
Exchange
THE MARKETING-COMMUNICATIONS MIX:
Relative Emphasis in Consumer and Business Markets

BUSINESS MARKETS CONSUMER MARKETS

EMPHASIS EMPHASIS

ADVERTISING
ADVERTISING
SALES
SALES PROMOTIONS
PROMOTIONS
FORCE
FORCE DIRECT
DIRECTMKT.
MKT.
COMPLEMENT
PERSONAL
PERSONALSELLING
SELLINGAND
AND
SALES
SALES MANAGEMENT
MANAGEMENT
•• ROLES
ROLESOF
OFSALESPERSON
SALESPERSON

Psychologist
Psychologist

Consultant
Consultant

Educator
Educator//Teacher
Teacher

Problem
ProblemSolver
Solver

Team
TeamLeader
Leader
•• TYPES
TYPESOF
OFSELLING
SELLINGPOSITIONS
POSITIONS

New
NewBusiness
Business(Prospector)
(Prospector)

Existing
ExistingBusiness
Business(Order
(OrderTaker)
Taker)

Detailing
Detailing

Support
Support(Marketing,
(Marketing,Technical)
Technical)
STEPS
STEPS IN
INTHE
THESELLING
SELLINGPROCESS:
PROCESS:
A
ARELATIONSHIP
RELATIONSHIPAPPROACH
APPROACH
•• INITIATING
INITIATING RELATIONSHIPS
RELATIONSHIPS
Prospecting
Prospecting
Pre-Call
Pre-CallPlanning
Planning
Approach
Approach
•• DEVELOPING
DEVELOPINGCUSTOMER
CUSTOMERRELATIONSHIPS
RELATIONSHIPS
Sales
SalesCommunications
Communicationsand
andPresentations
Presentations
Gaining and Managing Commitment
Gaining and Managing Commitment

•• ENHANCING
ENHANCING CUSTOMER
CUSTOMERRELATIONSHIPS
RELATIONSHIPS
Follow-Up
Follow-Up
Support
Support
•• TRADITIONAL
TRADITIONALvs.
vs.RELATIONSHIP
RELATIONSHIPAPPROACHES
APPROACHES
•• Consultative
Consultative(needs-satisfaction)
(needs-satisfaction) vs.
vs.Manipulative
Manipulative(product-focused)
(product-focused)
SALES
SALES MANAGEMENT
MANAGEMENTISSUES
ISSUES

•• RECRUITING
RECRUITINGAND ANDHIRING
HIRING
Difficult
Difficultto
toPredict
PredictSuccess
Success
•• DEPLOYMENT
DEPLOYMENT

Territory
TerritoryDesign
Design

•• AUTOMATION
AUTOMATION

Use
Useof
ofTechnology
Technologyto
toLink
LinkBuyer,
Buyer,Salesperson,
Salesperson,and
and
Organizations
Organizations(Customer
(CustomerRelationship
RelationshipManagement
Managementand
and
Supply
SupplyChain
ChainManagement)
Management)
•• EVALUATION
EVALUATIONAND
ANDCOMPENSATION
COMPENSATION

Outcome-Based
Outcome-Basedvs.
vs.Behavior-Based
Behavior-Based
Sales Promotion

• SALES PROMOTION
• Those marketing activities - other than advertising, public relations/publicity,
and personal selling - that stimulate consumer purchasing and dealer
effectiveness
• Displays, shows and exhibitions, coupons, contests, samples
 Increased
IncreasedRetail
RetailPower
Power
Short-Term
Short-TermFocus
Focus
Impact
Impactof
ofTechnology
Technology
Accountability
Accountability
Consumer
ConsumerFactors
Factors
Reasons for the Growth in Sales Promotion:
THE GROWTH IN SALES PROMOTION
OBJECTIVES OF CONSUMER PROMOTIONS

Stimulate Encourage
Trial Repurchase
Complementary Increase
Products Support Consumption
Neutralize Flexible Pricing Impulse
Competitors Purchasing
 Contests, Games,
Sweepstakes
Cross-
Promotions Premiums
Rebates Sampling
Coupons Advertising
Specialties
Price Deals
CONSUMER SALES PROMOTION TECHNIQUES
OBJECTIVES OF TRADE PROMOTIONS

Avoid Price Gain/Maintain

Avoid Price Gain/Maintain
Reductions Distribution
Reductions Distribution
Defend Against Influence
Defend Against Influence
Competitors Reseller Promotion
Competitors Reseller Promotion
Increase Reseller Influence
Increase Reseller Influence
Inventory Price Discount
Inventory Price Discount
LIMITATIONS OF SALES PROMOTION

Cannot
Cannot Reverse
Reverse Declining
Declining Sales
Sales
Trend
Trend

Cannot
Cannot Overcome
Overcome Inferior
Inferior
Product
Product

May
May Encourage
Encourage Competitive
Competitive
Retaliation
Retaliation

May
May Hurt
Hurt Profit
Profit
Direct Marketing

• Techniques used to get consumers to make a purchase from their

home, office or other nonretail setting
• Direct mail, catalogs, mail order, telemarketing, electronic retailing
TECHNIQUES OF DIRECT MARKETING

Electronic
Electronic Direct
Media DirectMail
Mail
Media

Telemarketing
Telemarketing Direct
DirectSelling
Selling

Print
Print Broadcast
Broadcast
Media
Media Media
Media