chapter 9

DHD2009 MKT243 Fundamental Of Marketing

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Fundamental Of Fundamental Of MarketingMarketingMKT243MKT243

Fundamental Of Fundamental Of MarketingMarketingMKT243MKT243Chapter 9Chapter 9

Marketing CommunicationMarketing Communication


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Slide Outline

• Roles of Promotion• The Promotion Mix• Marketing communication process• Promotional goals, and The-AIDA

concept• Factors affecting the promotional

mix


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Promotion• Communication by marketers that

informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response


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The Role of Promotion

Overall Marketing Objectives

Overall Marketing Objectives

Marketing Mix• Product• Distribution• Promotion• Price

Marketing Mix• Product• Distribution• 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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• The promotion mix is the specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships

The Promotion Mix


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Promotional Mix

AdvertisingAdvertising

Public RelationsPublic Relations

Sales PromotionSales Promotion

Personal SellingPersonal Selling

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Goals and Tasks of Promotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

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Tasks of Promotion1. INFORMING

To increase awareness of new brand, product class, etc. (informative promotion)

2. PERSUADINGTo stimulate the purchase or an action (persuasive promotion)

3. REMINDINGTo keep the product and brand name in the public’s mind (reminder promotion)


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The Promotion Mix

Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Advertising-Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

• Broadcast• Print• Internet• Outdoor

Major Promotion Tools


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The Promotion Mix

Sales promotion is the short-term incentives to encourage the purchase or sale of a product or service

Sales promotion-Activity that stimulate consumer buying and dealer effectiveness

• Discounts• Coupons• Displays• Demonstrations



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The Promotion Mix

Personal selling is the personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships

Personal selling-A purchase situation involving a personal, paid for communication between two people in an attempt to influence each other.

• Sales presentations• Trade shows• Incentive programs



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The Promotion MixPublic relations involves 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

Public relations-Marketing function that evaluates public attitudes, identifies areas within the organization the public may interested in, and executes a program of action to earn public understanding and acceptance

• Press releases• Sponsorships• Special events

• Web pages



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The Promotion Mix

Direct marketing involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—through the use of direct mail, telephone, direct-response television, e-mail, and the Internet to communicate directly with specific consumers

• Catalog• Telemarketing• Kiosks



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Marketing Communication

• CommunicationThe process by which we exchange

or share meanings through a common set of symbols


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The Communication Process


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AAttentionttention

IInterestnterest

DDesireesire

AActionction

The AIDA Concept

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Steps in Developing Effective Marketing Communication

AIDA Model• Get Attention• Hold Interest• Arouse Desire• Obtain Action

Designing a Message


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The AIDA• Attention-Advertiser must first gain the

attention of the target market. A firm cannot sell something if the market does not know that the good or service exists.

• Interest-Simple awareness of a brand

seldom leads to a sale next step is to create interest in the product.


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Cont…• Desire

Arose feeling to purchase the product

• ActionSome potential target market customers may have been convinced to buy but had not yet made the actual purchase.


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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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Factors Affecting the Promotional Mix

• Nature of the productCharacteristic of the product itself can influence the promotion mix


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• Stage in product life cycleStages

i. Introductory stage

Promotion-to inform the target audience that the product is available (advertising +PR)

ii. Growth stage Mix tools-Personal selling

iii. Maturity stage Greater competition, need to be persuasive (reminder advertising and Sales promotion)

iv. Decline stage Reduce advertising (Personal Selling+Sales promotion


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Target Market Characteristics

For…

• Widely scattered market

• Informed buyers

• Repeat buyersAdvertisingAdvertising

Sales PromotionSales Promotion

Less Personal SellingLess Personal Selling

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Type of Buying Decision

Type of buying decision affects promotional

choice

Type of buying decision affects promotional

choice

RoutineRoutine

Neither routinenor complex

Neither routinenor complex

ComplexComplex

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• Target market characteristicsCharacteristic of targeted groups/ market

• Type of buying decisionRoutine, limited or extensive

• Available fundCost or budget set by the marketers and the organization

• Push and Pull strategyPush strategy-A marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler/ retailer to carry and sell particular merchandisePull strategy-A marketing strategy that stimulate consumer demand to obtain product distribution


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Push vs. Pull• Push Strategy

• Pull Strategy

Manufacturer promotes towholesaler

Wholesaler promotes toto retailer

RetailerPromotes toconsumer

Consumer buys

retailer

Orders tomanufacturer

Manufacturer promotes to

consumer

Consumerdemand

product toretailer

Wholesaler demand product

from manufacturer

Retailer demand product

fromwholesaler

Orders tomanufacturer

chapter 9

Documents

promotion communication

promotion of ideas

product class

product inorder

good relations

public understanding

public attitudes

oneway mass communication