1. by Suwattana Sawatasuk
Promotion Mix
by Suwattana Sawatasuk

2. Promotion Mix (or Marketing Communication Mix)
The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships

3. Promotion Tools Advertising Sales promotion Personal selling
Public relations
Direct marketing

4. Promotion Tools
Advertising: any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor i.e. broadcast, print, Internet, outdoor, and etc.
Sales promotion
Personal selling
Public relations
Direct marketing

5. Promotion Tools Advertising
Sales promotion: short-term incentives to encourage the purchase or sale of a product or service for a specific period of time i.e. discounts, coupons, displays, demonstrations, and etc.
Personal selling
Public relations
Direct marketing

6. Discount and Allowances in Pricing Strategy VS. Sales Promotion
Discount and allowances in Pricing Strategy: offering to customer without specified time period
Discount in Sales Promotion: offering to customer with condition and time frame to stimulate a short-term sales volume and more consumer demand in the short run

7. Promotion Tools Advertising Sales promotion
Personal selling: personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships i.e. sales presentations, trade shows, and etc.
Public relations
Direct marketing

8. Promotion Tools Advertising Sales promotion Personal selling
Public relations: 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 i.e. press releases, sponsorships, special events, Web pages, and etc.
Direct marketing

9. Promotion Tools Advertising Sales promotion Personal selling
Public relations
Direct marketing: direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships i.e. catalogs, telephone marketing, the Internet, mobile, and etc.

10. Objectives of Promotion
To communicate to the target group
To inform: provide information about product/service or company to target groups such as marketing intermediaries, public, and consumer
To persuade: use the verbal/nonverbal communication in encouraging consumer buying decision
To remind: build brand awareness by using logo, branding, or feature of product/service or company to increase consumers' knowledge of a brand's existence

11. Objectives of Promotion (con’t)
To change consumer demand
To correspondent with other marketing mixs
If the product is in the introduction stage of Product Life Cycle
Promotion mix need to communicate to its target group in term of giving information than brand reminder. Sales promotion, such giveaway or discount, may be needed to stimulate the trade channel, retailer or wholesaler, to buy more products.

12. To inform, persuade, or remind?

13. To inform, persuade, or remind?

14. To inform, persuade, or remind?

15. To inform, persuade, or remind?

16. Integrated marketing communications (IMC)

17. Integrated Marketing Communications (IMC)
The carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products

18. IMC: carefully blended mix of promotion tools
Advertising
Personal selling
Consistent, clear, and compelling company and brand messages
Sales promotion
Public relations
Direct marketing

19. IMC for Dutch Mill Group
Event
Advertising
PR news

20. What could be the problem for communication without IMC?

21. Communication without IMC?
As each communication (advertising, personal selling, PR, direct marketing, sales promotion) often come from different parts of the company, if the company fails to integrate those various communication channels, it will result in blurred customer brand perceptions.

22. Communication Process

23. Elements in the Communication Process
Sender
Encoding
Message
Decoding
Receiver
Media
Noise
Feedback
Response

24. 9 Elements of Communications1 2
Sender
Receiver
The party sending the message to another party
The party receiving the message sent by another party

25. 9 Elements of Communications3
Sender
Message
Receiver
Media
The set of symbols that the sender transmits 4
The communication channels through which the message moves from sender to receiver

26. 9 Elements of Communications5 6
Sender
Encoding
Message
Decoding
Receiver
Media
The process by which the receiver assigns meaning to the symbols encoded by the sender
The process of putting thought into symbolic form

27. 9 Elements of Communications
Sender
Encoding
Message
Decoding
Receiver
Media
The reactions of the receiver after being exposed to the message
The part of the receiver’s response communicated back to the sender
Feedback
Response 8 7

28. 9 Elements of Communications
Sender
Encoding
Message
Decoding
Receiver
Media 9
The unplanned static or distortion during the communication process, which results in the receiver’s getting a different message than the one the sender sent
Noise
Feedback
Response

29. Steps in Developing Effective Marketing Communication

30. Steps in Developing Effective Marketing Communication
Identifying the target audience
Determining the communication objectives
Designing a message
Choosing media
Selecting the message source
Collecting feedback

31. 1. Identifying the target audience
Who will be your target audience?
Current users or potential buyers?
Those who make the buying decision or those who influence it?

32. 2. Determining the Communication Objectives
What response marketers seek?
Need to know where the target audience now stands and to what stage it needs to be moved.
6 Buyer-readiness stages
The stages that consumers normally pass through on their way to purchase, including awareness, knowledge, liking, preference, conviction, and purchase
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Info. about product
Feeling favorable about product
Preferring this brand to other brands
Confidence in this brand, it is the best

33. 3. Designing a Message
Message should get Attention, hold Interest, arouse Desire, and obtain Action (AIDA model)
Must decide what to say (message content) and how to say (message structure and format)

34. 4. Choosing Media
Personal Communication Channels: Channels through which two or more people communicate directly with each other, including face to face, on the phone, through mail or , or even through an Internet “chat”
Word-of-mouth influence: personal commu. about a product between target buyers and neighbors, friends, family members, and associates.
Buzz marketing: cultivating opinion leaders and getting them to spread info. about a product or service to others in their communities.
Nonpersonal Communication Channels: Media that carry messages without personal contact or feedback, including major media, atmospheres, and events

35. Selecting the Message Source
Messages delivered by highly credible sources are more persuasive for target audiences.
Picking the wrong spokesperson can result in embarrassment and tarnished image.
“Celebrity endorsement”

36. Collecting Feedback
After sending the message, the communicator mush research its effect on the target audience.
Feedback on marketing communications may suggest changes in the promotion program or in the product offer itself.

37. Setting the Total Promotion Budget and Mix

38. Setting the Total Promotion Budget
Affordable method
Setting the promotion budget at the level management thinks the company can afford
Percentage-of-Sales method
Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price
Competitive-Parity method
Setting the promotion budget to match competitors’ outlay
Objective-and-Task method
Developing the promotion budget by:
Defining specific objectives
Determining the tasks that must be performed to achieve these objectives
Estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget

39. Push vs. Pull Promotion Strategy
Push strategy: a promotion strategy that calls for using the sales force and trade promotion to push the product through channels.
The producer promotes the product to channel members who in turn promote it to final consumers to create consumer demand for a product.

40. BigC catalog

41. Push vs. Pull Promotion Strategy
Pull strategy: a promotion strategy that calls for spending a lot on advertising and consumer promotion to induce final consumers to buy the product, creating a demand vacuum that “pulls” the product through the channel
If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.

42. Push vs. Pull Promotion Strategy
Producer marketing activities
(personal selling, trade promotion, other)
Reseller marketing activities
(personal selling, advertising, sales promotion, other)
Producer
Retailers and wholesalers
Consumers
PUSH
PUSH
Consumers
Producer
Retailers and wholesalers
PULL
PULL
Producer marketing activities
(Consumer advertising, sales promotion, other)

43. Summary: Push vs. Pull Strategy
Push strategy involves convincing trade intermediary channel members to "push" the product through the distribution channels to the ultimate consumer via promotions and personal selling efforts.
Pull strategy attempts to get consumers to "pull" the product from the manufacturer through the marketing channel.

44. Product Life Cycle Stages and Promotion Tools
Introduction: Ad and PR are good for producing high awareness. Sales promotion is useful in promoting early trial. Personal selling must be used to get trade to carry the product.
Growth: Ad and PR continue to be powerful influences. Sales promotion can be reduced because fewer incentives are needed.
Mature: Sales promotion becomes important relative to ad. buyers know the brand, and ad is needed only to remind them of product.
Decline: Ad is kept at a reminder level, PR is dropped. Salespeople give the product only a little attention. Sales promotions might continue to be strong.