MARKETING COMMUNICATION

Key Concepts

The Role of Promotion

Communication by

marketers that informs,

persuades, and reminds

potential buyers of a

product in order to

influence an opinion or

elicit a response.

PromotionPromotion

Promotion Strategy

A plan for the optimal

use of the elements of

promotion: Advertising Public Relations Sales Promotion Personal Selling

PromotionalStrategy

PromotionalStrategy

CompetitiveAdvantage

The Role of Promotion in the Marketing Mix

Overall Marketing Objectives

Overall Marketing Objectives

Marketing Mix• Product• Place• Promotion• Price

Marketing Mix• Product• Place• 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

Competitive Advantage

Unique featuresUnique features

Excellent serviceExcellent service

Low pricesLow prices

Rapid deliveryRapid delivery

High product qualityHigh product quality

Goals and Tasks of Promotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

Goals and Tasks of Promotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity

Goals and Tasks of Promotion

Remind customers that product may be needed

Remind customers where to buy product

Maintain customer awareness

Reminder Promotion

The AIDA Concept

Model that outlines the process

for achieving promotional goals

in terms of stages of consumer

involvement with the message.

Attention

Interest

Desire

Action

Attention

Interest

Desire

Action

AIDA ConceptAIDA

Concept

The AIDA Concept

Action

Desire

Interest

Attention Cognitive (thinking)

Affective (feeling)

Conative (doing)

The AIDA Concept

Push and Pull Strategies

Manufacturerpromotes to wholesaler

Manufacturerpromotes to wholesaler

Wholesaler promotes to

retailer

Wholesaler promotes to

retailer

Retailer promotes toconsumer

Retailer promotes toconsumer

Consumerbuys from

retailer

Consumerbuys from

retailer

PUSH STRATEGY

Orders to manufacturer

Manufacturerpromotes to

consumer

Manufacturerpromotes 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 frommanufacturer

Wholesaler demands

product frommanufacturer

Orders to manufacturer

PULL STRATEGY

Factors Affecting Promotional Mix

The Promotional Mix

Combination of promotiontools used to reach the target market and fulfill the organization’s overall goals. Advertising Public Relations Sales Promotion Personal Selling

PromotionalMix

PromotionalMix

The Promotional Mix

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

AdvertisingAdvertising

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 GrowthProliferation of

thousands of media choices

Fragmentation of the mass market

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

Advertising MediaTraditional Advertising Media

NewAdvertising

Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Banner ads Viral marketing E- mail Interactive video

AdvertisingAdvantages Disadvantages

Reach large number of people

Low cost per contact

Can be micro-targeted

Total cost is high

National reach is expensive for small companies

Public Relations

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.

Public

RelationsPublic

Relations

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

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

Sales

PromotionSales

Promotion

Sales Promotion

EndConsumers

EndConsumers

Trade Customers

Trade Customers

CompanyEmployees Company

Employees

Free samplesFree samples

ContestsContests

PremiumsPremiums

Trade ShowsTrade Shows

Vacation GiveawaysVacation Giveaways

CouponsCoupons

Personal Selling

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

Personal

SellingPersonal

Selling

Personal Selling

Traditional Selling

Traditional Selling

Relationship Selling

Relationship Selling

Categories of CommunicationCategories of

Communication

InterpersonalCommunicationInterpersonal

CommunicationMass

CommunicationMass

Communication

Marketing Communication

As Senders As Receivers

Develop messages

Adapt messages

Spot new communication opportunities

Inform

Persuade

Remind

Marketing Communication

As Senders As Receivers

Develop messages

Adapt messages

Spot new communication opportunities

Inform

Persuade

Remind

Marketing Communication

NoiseNoise

SenderSender EncodingMessage

EncodingMessage

FeedbackChannel

FeedbackChannel

MessageChannel

MessageChannel

DecodingMessage

DecodingMessage ReceiverReceiver

The Communication Process

Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

AdvertisingIndirect and impersonal

Low

Little

Delayed

One-way

Yes

Yes

Fast

Same message to all audiences

Characteristics of the Elementsin the Promotional Mix

Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

Public RelationsUsually indirect, impersonal

Moderate to low

Little

Delayed

One-way

No

No

Usually fast

Usually no direct control

Characteristics of the Elementsin the Promotional Mix

Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

Sales PromotionUsually indirect and impersonal

Moderate to low

Little to moderate

Varies

Mostly one-way

Yes

Yes

Fast

Same message to varied target

Characteristics of the Elementsin the Promotional Mix

Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

Personal SellingDirect and face-to-face

High

Much

Immediate

Two-way

Yes

Yes

Slow

Tailored to prospect

Characteristics of the Elementsin the Promotional Mix

MARKETING COMMUNICATION

IMPACT OF THE NEW MEDIAINTERNETBLOGGING

VIRAL MARKETING

The Impact of Blogging

LO3

Sponsored by a company or

one of its brands and

maintained by one or more of

the company’s employees.

Sponsored by a company or

one of its brands and

maintained by one or more of

the company’s employees.

NoncorporateBlogs

NoncorporateBlogs

CorporateBlogs

CorporateBlogs

Independent and not

associated with the

marketing efforts of any

particular company or brand.

Independent and not

associated with the

marketing efforts of any

particular company or brand.

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

IntroductionIntroduction GrowthGrowth

MaturityMaturityDeclineDecline

Sal

es (

$)S

ales

($)

TimeTime

Target Market Characteristics

For…

Widely scattered market

Informed buyers

Brand-loyal repeat purchasers

AdvertisingAdvertising

Sales PromotionSales Promotion

Less Personal SellingLess Personal Selling

Type of Buying Decision

Advertising

Sales PromotionRoutineRoutine

Personal Selling

Neither Routinenor Complex

Neither Routinenor Complex

Advertising

Public Relations

Print AdvertisingComplexComplex