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Promotion and Integrated Marketing Communication Advertising Public Relations/ Publicity Personal Selling Sales Promotion Direct Marketing Chapters 12,

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Presentation on theme: "Promotion and Integrated Marketing Communication Advertising Public Relations/ Publicity Personal Selling Sales Promotion Direct Marketing Chapters 12,"— Presentation transcript:

1 Promotion and Integrated Marketing Communication Advertising Public Relations/ Publicity Personal Selling Sales 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 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 MAJOR OBJECTIVES OF MARKETING COMMUNICATIONS Informing Persuading Reminding

4 MARKETING COMMUNICATIONS OBJECTIVES 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

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

6 MARKETING COMMUNICATIONS PLANNING Marketing Plan Review Situation Analysis Communications Process Analysis Communications Process Analysis Budget Development Program Development Integration & Implementation Monitoring, Evaluating, Controlling Monitoring, Evaluating, Controlling 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 process Need -> search -> evaluation -> purchase -> outcomes The adoption process Awareness -> interest -> evaluation -> trial -> adoption -> post-adoption confirmation Buyer readiness states/Hierarchy of effects Awareness -> knowledge -> liking -> preference -> conviction -> purchase AIDA Awareness -> 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 DEVELOPING AN ADVERTISING CAMPAIGN Evaluate Advertising Effective- ness Select & Schedule Media Determine Advertising Budget Determine Advertising Objectives Select Target Market Design Creative Strategy

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

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 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 PUBLIC RELATIONS Press Relations Press Relations Product Promotions Product Promotions Advising Management Advising Management Corporate Communications Corporate Communications Lobbying 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 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 MARKETSCONSUMER MARKETS SALES FORCE SALES FORCE ADVERTISING PROMOTIONS DIRECT MKT. ADVERTISING PROMOTIONS DIRECT MKT. EMPHASIS 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) 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) 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 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 THE GROWTH IN SALES PROMOTION Consumer Factors Accountability Increased Retail Power Impact of Technology Short-Term Focus Reasons for the Growth in Sales Promotion:

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

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

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

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

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 Electronic Media Electronic Media Direct Selling Print Media Print Media Broadcast Media Broadcast Media Direct Mail Telemarketing


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