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Promotion and Integrated Marketing Communication

Promotion and Integrated Marketing Communication. Advertising Public Relations/ Publicity Personal Selling Sales Promotion Direct Marketing Chapters 12, 13 & 14. MARKETING COMMUNICATIONS.

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Promotion and Integrated Marketing Communication

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  1. Promotion and Integrated Marketing Communication AdvertisingPublic Relations/ Publicity Personal SellingSales Promotion Direct Marketing Chapters 12, 13 & 14

  2. MARKETING COMMUNICATIONS • MARKETER INITIATED TECHNIQUES USED TO SET UP CHANNELS OF INFORMATION AND PERSUASION WITH TARGETED AUDIENCES TO INFLUENCE ATTITUDES AND BEHAVIOR • “Promotion” • Message and Media • MARKETING COMMUNICATIONS MIX • “Tool Box” of Media and Techniques • Integration and Coordination • Based on Communications Model

  3. Informing Persuading Reminding MAJOR OBJECTIVES OF MARKETING COMMUNICATIONS

  4. 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 MARKETING COMMUNICATIONS OBJECTIVES

  5. 1. Advertising 5. Direct Marketing 2. Public Relations 4. Personal Selling 3. Sales Promotion ELEMENTS OF THE MARKETING COMMUNICATIONS MIX Integrated Marketing Communications (IMC) is the strategic integration of multiple means of communicating with target markets

  6. Marketing Plan Review Situation Analysis Communications Process Analysis Budget Development Program Development Integration & Implementation Monitoring, Evaluating, Controlling MARKETING COMMUNICATIONS PLANNING METHODS PUSH vs. PULL

  7. 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

  8. 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

  9. 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

  10. Psychological Processes • The high involvement decision processNeed -> search -> evaluation -> purchase -> outcomes • The adoption processAwareness -> interest -> evaluation -> trial -> adoption -> post-adoption confirmation • Buyer readiness states/Hierarchy of effectsAwareness -> knowledge -> liking -> preference -> conviction -> purchase • AIDAAwareness -> Interest -> Desire -> Action

  11. 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

  12. 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

  13. 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

  14. Design Creative Strategy Select Target Market Determine Advertising Objectives Determine Advertising Budget Evaluate Advertising Effective-ness Select & Schedule Media DEVELOPING AN ADVERTISING CAMPAIGN

  15. ADVERTISING STRATEGY • MESSAGE STRATEGIES • Objective vs. Subjective Messages • Comparative Message Techniques • Emotional Techniques: Mood, Fear, Humor • Celebrity Endorsements vs. Non-Celebrity Images • MEDIA STRATEGIES • Broadcast: Television, Radio • Print: Newspapers, Magazines, Journals • Specialized: Outdoor, Transit, Direct Mail, Internet

  16. ADVERTISING STRATEGY • RELATIVE STRENGTHS AND WEAKNESSES OF STRATEGIES • Effectiveness and Efficiency: Reach and Frequency • Target Capabilities • Cost • Believability • Appropriateness for Message (Image, Details)

  17. 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

  18. Pretesting Tools: Posttesting • Focus Groups • Screening • Persuasion Scores Tools: Sales Effectiveness Evaluations • Unaided Recall Tests • Aided Recall Tests • Inquiry Evaluations Tools: • Monitor Sales EVALUATING ADVERTISING EFFECTIVENESS

  19. PUBLIC RELATIONS • EFFORTS TO IMPROVE AND MANAGE RELATIONSHIPS WITH PUBLICS • Customers • Stock Holders • Community • Government • News Media • PROACTIVE vs. REACTIVE • DuPont vs. Exxon • PUBLICITY • Not Overtly Sponsored • High Credibility

  20. Press Relations Advising Management Product Promotions Corporate Communications Lobbying PUBLIC RELATIONS Public Relations Functions

  21. 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

  22. PERSONAL SELLING AND SALES MANAGEMENT • FUNCTIONS AND CONTRIBUTIONS OF PERSONAL SELLING • “Boundary Spanner” Role, Relationship Management (Trust) • Two-Way Information Channel (Diffusion of Product and Market Information) • Facilitate Exchange

  23. THE MARKETING-COMMUNICATIONS MIX:Relative Emphasis in Consumer and Business Markets BUSINESS MARKETS CONSUMER MARKETS EMPHASIS EMPHASIS SALES FORCE ADVERTISING PROMOTIONS DIRECT MKT. COMPLEMENT

  24. PERSONAL SELLING AND SALES MANAGEMENT • ROLES OF SALESPERSON • Psychologist • Consultant • Educator / Teacher • Problem Solver • Team Leader • TYPES OF SELLING POSITIONS • New Business (Prospector) • Existing Business (Order Taker) • Detailing • Support (Marketing, Technical)

  25. STEPS IN THE SELLING PROCESS: A RELATIONSHIP APPROACH • INITIATING RELATIONSHIPS • Prospecting • Pre-Call Planning • Approach • DEVELOPING CUSTOMER RELATIONSHIPS • Sales Communications and Presentations • Gaining and Managing Commitment • ENHANCING CUSTOMER RELATIONSHIPS • Follow-Up • Support • TRADITIONAL vs. RELATIONSHIP APPROACHES • Consultative (needs-satisfaction) vs. Manipulative (product-focused)

  26. SALES MANAGEMENT ISSUES • RECRUITING AND HIRING • Difficult to Predict Success • DEPLOYMENT • Territory Design • AUTOMATION • Use of Technology to Link Buyer, Salesperson, and Organizations (Customer Relationship Management and Supply Chain Management) • EVALUATION AND COMPENSATION • Outcome-Based vs. Behavior-Based

  27. 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

  28. Consumer Factors Accountability Impact of Technology Short-Term Focus Increased Retail Power THE GROWTH IN SALES PROMOTION Reasons for the Growth in Sales Promotion:

  29. Encourage Repurchase Stimulate Trial Complementary Products Increase Consumption Support Flexible Pricing Neutralize Competitors Impulse Purchasing OBJECTIVES OF CONSUMER PROMOTIONS

  30. Price Deals Advertising Specialties Coupons Rebates Sampling Premiums Cross- Promotions Contests, Games, Sweepstakes CONSUMER SALES PROMOTION TECHNIQUES

  31. Avoid Price Reductions Gain/Maintain Distribution Avoid Price Reductions Gain/Maintain Distribution Influence Reseller Promotion Defend Against Competitors Influence Reseller Promotion Defend Against Competitors Influence Price Discount Increase Reseller Inventory Influence Price Discount Increase Reseller Inventory OBJECTIVES OF TRADE PROMOTIONS

  32. Cannot Reverse Declining Sales Trend Cannot Overcome Inferior Product May Encourage Competitive Retaliation May Hurt Profit LIMITATIONS OF SALES PROMOTION

  33. 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

  34. TECHNIQUES OF DIRECT MARKETING Direct Mail Electronic Media Telemarketing Direct Selling Print Media Broadcast Media

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