Integrated Marketing Communications

The Role of Promotion

Promotion:

• Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.

PromotionalStrategy

PromotionalStrategy

A plan for the optimal use of the elements of promotion:

Advertising Public Relations Sales Promotion Personal SellingCompetitive

Advantage

The Role of Promotionin the Marketing Mix

• Overall Marketing Objectives

• Overall Marketing Objectives

• Marketing Mix• Product• Place• Promotion• Price

• Marketing Mix• Product• Place• Promotion• Price

• Target Market• Target Market

• Promotional Mix

• Advertising• Public Relations• Sales Promotion• Personal Selling

• Promotion Plan

• Promotional Mix

• Advertising• Public Relations• Sales Promotion• Personal Selling

• Promotion Plan

Competitive Advantage

Unique featuresUnique features

Excellent serviceExcellent service

Low pricesLow prices

Rapid deliveryRapid delivery

High product qualityHigh product quality

The Promotional Mix

PromotionalMix

PromotionalMix Combination of promotion

tools used to reach the target market and fulfill theorganization’s overall goals.

Combination of promotiontools used to reach the target market and fulfill theorganization’s overall goals.

Advertising Public Relations Sales Promotion Personal Selling

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

Advertising MediaTraditional

Advertising MediaTraditional

Advertising Media NewAdvertising Media

NewAdvertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Banner ads Viral marketing E- mail Interactive video

Public Relations

PublicRelations

PublicRelations

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.

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

Sales Promotion

SalesPromotion

SalesPromotion

Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness.

Sales PromotionFree samplesFree samples

ContestsContests

PremiumsPremiums

Trade ShowsTrade Shows

Vacation GiveawaysVacation Giveaways

CouponsCoupons

EndConsumers

EndConsumers

CompanyEmployees Company

Employees

Trade CustomersTrade Customers

Personal Selling

PersonalSelling

PersonalSelling

Planned presentation to one or more prospective buyers for the purpose of making a sale.

Nature of Each Promotional Tool

Advertising • Reaches large, geographically dispersed audiences, often with high frequency

• Low cost per exposure, though overall costs are high

• Consumers perceive advertised goods as more legitimate

• Dramatizes company/brand• Builds brand image; may stimulate

short-term sales• Impersonal; one-way

communication

Personal Selling • Most effective tool for building buyers’ preferences, convictions, and actions

• Personal interaction allows for feedback and adjustments

• Relationship-oriented• Buyers are more attentive• Sales force represents a long-term

commitment• Most expensive of the promotional

tools

Sales Promotion • May be targeted at the trade or ultimate consumer

• Makes use of a variety of formats: premiums, coupons, contests, etc.

• Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales

• Stimulates quick response• Short-lived• Not effective at building long-term

brand preferences

Public Relations • Highly credible• Many forms: news stories, news

features, events and sponsorships, etc.

• Reaches many prospects missed via other forms of promotion

• Dramatizes company or benefits• Often the most underused element

in the promotional mix

Direct Marketing Many forms: Telephone marketing, direct mail, online marketing, etc.Four characteristics:

NonpublicImmediateCustomizedInteractive

Well-suited to highly targeted marketing efforts

REVIEW LEARNING OUTCOMEElements of the Promotional Mix

Goals and Tasks of Promotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudience

TargetAudience

PLC Stages:Introduction Early Growth

PLC Stages:Maturity

PLC Stages:Growth Maturity

Goals and Tasks of Promotion

Increase awareness

Explain how product works

Suggest new uses

Build company image

Informative Promotion

Goals and Tasks of Promotion

Persuasive Promotion

Encourage brand switching

Change customers’ perceptions of product attributes

Influence immediate buying decision

Persuade customers to call

Goals and Tasks of Promotion

• Reminder Promotion

Remind customers that product may be needed

Remind customers where to buy product

Maintain customer awareness

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

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

Introduction Growth

MaturityDecline

Sale

s ($

)

Time

Target Market Characteristics

AdvertisingAdvertising

Sales PromotionSales Promotion

Less Personal SellingLess Personal Selling

For…

Widely scattered market

Informed buyers

Brand-loyal repeat purchasers

Type of Buying Decision

Advertising

Sales PromotionRoutineRoutine

Personal Selling

Neither Routinenor Complex

Neither Routinenor Complex

Advertising

Public Relations

Print AdvertisingComplexComplex

Push and Pull Strategies

• Manufacturer• promotes to • wholesaler

• Manufacturer• promotes to • wholesaler

• Wholesaler • promotes to

• retailer

• Wholesaler • promotes to

• retailer

• Retailer • promotes to• consumer

• Retailer • promotes to• consumer

• Consumer• buys from

• retailer

• Consumer• buys from

• retailer

• PUSH STRATEGY

• Orders to manufacturer

• Manufacturer• promotes to

• consumer

• Manufacturer• promotes 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 from• manufacturer

• Wholesaler • demands

• product from• manufacturer

• Orders to manufacturer

• PULL STRATEGY

REVIEW LEARNING OUTCOMEFactors Affecting Promotional Mix

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.

IMC Popularity Growth

• Proliferation of thousands of media choices

• Fragmentation of the mass market

• Slash of advertising spending in favor of promotional techniques that generate immediate response

REVIEW LEARNING OUTCOME Integrated Marketing Communications

Steps in Developing Effective Communications

Identify target audience

Determine objectives

Design communications

Decide on media mix Establish budget Select channels

Measure results Manage IMC

• Step 1: Identifying the Target Audience– Affects decisions related to what, how, when, and

where message will be said, as well as who will say it

• Step 2: Determining Communication Objectives– Objectives may be set to move buyers through the

six readiness stages

• Step 3: Designing a Message– AIDA framework guides message design– Message content

• Rational • Emotional appeals: fear, humor, guilt, shame, love• Moral appeals

• Designing a Message– Message structure

• Draw a conclusion?• One-sided or two-sided?• Strongest arguments

presented first or last?– Message format Novelty, contrast, and more

• Step 4: Choosing Media– Personal communication channels

• Includes face-to-face, phone, mail, and Internet chat communications

• Word-of-mouth influence is often critical• Buzz marketing cultivates opinion leaders

– Nonpersonal communication channels• Includes media, atmosphere, and events

• Step 5: Selecting the Message Source– Highly credible sources are more persuasive– A poor choice of spokesperson can tarnish a brand

Setting the Promotional Budget and Mix

• Setting the Total Promotional Budget– Affordability Method

• Budget is set at a level that a company can afford

– Percentage-of-Sales Method• Past or forecasted sales may

be used– Competitive-Parity Method

• Budget matches competitors’ outlays

Setting the Promotional Budget and Mix

• Setting the Total Promotional Budget– Objective-and-Task Method

• Specific objectives are defined• Tasks required to achieve objectives

are determined• Costs of performing tasks are

estimated, then summed to create the promotional budget

Setting the Promotional Budget and Mix

• Setting the Overall Promotion Mix– Determined by the nature of each promotional tool

and the selected promotion mix strategy

• Step 6: Collecting Feedback– Recognition, recall, and behavioral measures are

assessed– May suggest changes in product/promotion

Corporate Communication V/S Marketing CommunicationsCorporate communications Marketing

communications

Aim building company's reputation brand building

Scope of communication

Company / Enterprise product/produce or service provided by the company

Target Audience multiple stakeholders customer

Mode multiple channels defined set of channels

Creativity less room for creativity more room for creativity

Consistency With corporate identity, image, philosophy; product & brand attributes

With product and brand attributes

Thank you…