1. Integrated Communication Strategy and Promotion Tools
Week
Integrated Communication Strategy and Promotion Tools

2. Communication
The process by which we exchange or share meanings through a common set of symbols.
Notes:
Promotional strategy is closely related to the process of communications.
When a company develops a new product, changes an existing one, or tries to increase sales, it must communicate its selling message to potential customers.

3. The Communication Process
Noise
Sender
Encoding Message
Feedback
Message
Channel
Decoding
Receiver
Notes:
Marketing communication is a two-way process, as shown in Exhibit 14.3.

4. Marketing Communications Strategy
Let’s communicate with customers…
Steps to follow:
Identify Target audience, Expected Response (objectives),
Design the Message, Select the Media (importance of continuity: INTEGRATION of the COMMUNICATION MIX), Feedback.
One Main constraint: The budget.
How much to spend?
For further details about this topic see page468 2

5. Setting the Communication Budget
Wide possible range
Affordable method - ignores promotion impact on sales
Percent of sales method - not opportunity based
Competitive parity method - company needs are individual
Task and Objective Method
Define specific promotion objectives
Determine tasks needed to achieve
Estimate costs of tasks
Sum costs to set total promotion budget
For further details about this topic see page 17

6. Integrated Marketing Communications
The Need for Integrated Marketing Communications
Conflicting messages from different sources or promotional approaches can confuse company or brand images

7. Marketing Communications Mix
Advertising
Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
Personal Selling
Personal presentation by a firm’s sales force for the purpose of making sales and building customer relationships
Direct Marketing
Direct Connections with carefully targeted individual consumers to both obtain an immediate response and cultivating lasting customers relationships.
For further details about this topic see page468 4

8. Marketing Communications Mix
Public Relations
Building good relations with the company’s various publics by obtaining favourable publicity, building a good corporate image and handling stories or events.
Sales Promotion
Short-term incentives to encourage the purchase or sale of a
product or service
Most impact when coordinated with entire marketing mix.

9. Goals and Tasks of Promotion
Informing
Reminding
Persuading
Target
Audience

10. Goals and Tasks of Promotion
Informative Objective
Increase awareness
Explain how product works
Suggest new uses
Build company image

11. Goals and Tasks of Promotion
Persuasion Objective
Encourage brand switching
Change customers’ perception of product attributes
Influence buying decision
Persuade customers to call
On Line
Tide
Consider Tide detergent’s Web site as a promotional tool. Visit the site and decide whether you think the main goal of the site is: informing, persuading, or reminding. Explain your choice.

12. Goals and Tasks of Promotion
Reminder Objective
Remind customers that product may be needed
Remind customers where to buy product
Maintain customer awareness
On Line
Tide
Consider Tide detergent’s Web site as a promotional tool. Visit the site and decide whether you think the main goal of the site is: informing, persuading, or reminding. Explain your choice.
On Line

13. The AIDA Concept Attention Interest Desire Action
Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.
Notes:
The goal of any promotion is to get someone to buy a good or service. A classic model for reaching promotional goals is called the AIDA concept—attention, interest, desire, and action—the stages of consumer involvement.
This model proposes that consumers respond to marketing messages in a thinking, feeling, and doing sequence.

14. AIDA and the Promotional Mix
Awareness
Interest
Desire
Action
Advertising
Very
effective
Somewhat
Not
Public
Relations
Sales
Promotion
Personal
Selling
On Line
What role can the Internet play in the AIDA concept? Consider Exhibit 14.6 above. Recreate the table by deciding how effective you think the Internet would be as an advertising tool to create attention, interest, desire, and action. Continue to evaluate the Internet as a public relations tool, sales promotion tool, and personal selling tool.
Notes:
Exhibit 14.6 shows the relationship between the AIDA model and the promotional mix.
For example, advertising is most useful in gaining attention for goods. In contrast, salespeople are more effective at creating customer interest and in creating desire.
Public relations is best at gaining attention for a company, a good or service. Sales promotion’s greatest strength is in creating strong desire and purchase intent (action).

15. Product Life Cycle and the Promotional Mix
Introduction
Growth
Maturity
Decline
Sales ($)
Time
Light
Advertising;
pre-
introduction
publicity
Heavy use of
Advertising;
PR for
awareness;
sales
promotion
for trial
Advertising’
PR, brand
loyalty;
personal
selling for
distribution
Ads decrease;
sales promotion;
personal selling; reminder &
persuasive
AD/PR
decrease;
limited
sales
promotion;
personal
selling for
distribution
Notes:
In the introduction stage, the basic goal of promotion is to inform the target audience. Advertising and public relations inform the target audience, while sales promotion encourages early trial. Personal selling gets retailers to carry the product.
During the growth stage, advertising and public relations continue to be important, although sales promotion can be reduced because customers need fewer incentives to purchase. The promotional strategy is to emphasize the product’s differential advantage. Persuasive promotion is used to build and maintain brand loyalty.
In the maturity stage, competition becomes fiercer, and persuasive and reminder advertising are emphasized. Sales promotion comes back into focus to try to increase market share.
As the product enters the decline stage, all promotion, especially advertising, is reduced. Personal selling and sales promotion efforts may be maintained.

16. Push and Pull Strategies
Push strategy: trade promotions and personal selling efforts push the product through the distribution channels.
Pull strategy: producers use advertising and consumer sales promotions to generate strong consumer demand for products.
Notes:
Manufacturers may use aggressive personal selling and trade advertising to convince a wholesaler/retailer to carry and sell their merchandise. This is known as a push strategy. The wholesaler, in turn, pushes the merchandise forward by persuading the retailer to handle the goods. The retailer uses advertising and other forms of promotion to convince customers to buy the “pushed” products.
At the other end is a pull strategy, which stimulates consumer demand to obtain product distribution. The manufacturer uses a pull strategy by focusing promotional efforts on end consumers and opinion leaders. The wholesaler then places an order for the “pulled” merchandise from the manufacturer. Consumer demand pulls the product through the channel of distribution.
The Push and Pull strategies are diagrammed in Exhibit 14.8.

17. Advertising U.S. advertising spending exceeds $240 billion per year
Industry employs only 284,000
Ad budgets of some firms exceed over $2 billion per year—over $6 million per day!
Notes:
Advertising, defined as any form of impersonal, paid communication in which the sponsor is identified, is a popular form of promotion especially for consumer packaged goods and services.

18. Advertising Strategy: message strategy
Identify consumer benefits
Develop compelling creative concept (The Big Idea)
Appeals - meaningful credible & believable
Distinctively expressed
For further details about this topic see page506 10

19. How to bring the message to Life: message execution
Choose style - how it is said
Slice of life
Fantasy
Musical…
Set tone - humour - Sexual - Fear- other?
Select words - memorable and attention-getting
Format elements - copy headline - illustration
For further details about this topic see page 11

20. Selecting Advertising Media
Decide reach, frequency and impact.
Choose media type
Select specific media vehicles
Decide on media timing
Set timing pattern of ads
For further details about this topic see page508 13

21. Advertising Evaluation
Communication effects
Sales effects
Evaluation difficult - especially sales
Sales vs. ad expense
Experiments
For further details about this topic see page 17

22. Sales-Promotion Objectives
More short-term sales
Build long-term share
Stimulate trial
Switch from competitors
Hold loyal customers
Increase purchase quantity
For further details about this topic see page516 21

23. Consumer-Promotion Tools
Samples - trial amount of product
Coupons - certificate to give buyer a saving
Cash refund offers - reduction after purchase
Premiums - free or low-cost with purchase
Contests – Promotional events-chance to win
For further details about this topic see page 24

24. Public Relations: potential activities
Press relations
Public affairs
Lobbying
Investor relations
Development
For further details about this topic see page521 28

25. Public Relations: major tools
Company news
Speeches
Special events
Written materials
Audiovisual production
Corporate identity
Public service activities
Company web sites
For further details about this topic see page 29

26. Steps in Sales Force Management
Designing sales force strategy and structure
Recruiting and selecting salespeople
Training sales people
For further details about this topic see page540
Compensating salespeople
Supervising salespeople
Evaluating salespeople 4 4

27. Managing the Sales Force: sales-force structure
Organize by Territory
defines job - travel
By Product
expertise - overlap
Customer or Industry
focus - one face
Complex structures
For further details about this topic see page 5 5

28. Managing the Sales Force: sales force size
One of the most productive assets
Also most expensive
Size impacts costs
Workload approach
Account classes (A-B)
Sales calls (24-48)
Compute size
For further details about this topic see page 6 6

29. Recruiting and Selecting Salespeople
Traits of the successful vary widely
Enthusiasm, Persistence, Initiative, Self-Confidence, Job Commitment.
Selection procedures specific to companies
Tests -personal characteristics - references - previous employment - interviewer’s views
For further details about this topic see page 8 8

30. Training Sales People Training Goals
Learn company and assimilate culture
Technical information
Know customers and industry competitors
Average training period four months
For further details about this topic see page546 9 9

31. Compensating Salespeople
Design to motivate and direct activities
Straight salary
Straight commission
Salary plus bonus
Salary & commission
Salary for stable income
Variable part for results
For further details about this topic see page 10 10

32. Supervising Salespeople
Average face-to-face selling time 30%
Establish customer targets and call norms
Set time spent on prospecting
Annual call plan
Time & duty analysis
Salesforce automation
For further details about this topic see page 12 12

33. Motivating Salespeople
Organizational Climate
Opportunities
rewards - value
Sales Quotas
achievable
stretch goals
Incentives
sales meetings
awards - contests
For further details about this topic see page 14 14

34. Evaluating Salespeople
Potential benefits of Evaluation
Expectations clear
Gather Information
Helpful feedback
Motivation
Evaluation
Comparison with Peers
Comparing with past sales
Qualitative Evaluation
For further details about this topic see page 15 15

35. Steps in the Selling Process
Prospecting
Salesperson Identifies Qualified Potential Customers.
Qualifying
Process of Identifying Good Prospects and Screening Out Poor Ones.
Preapproach
Salesperson Learns as Much as Possible About a Prospective Customer Before Making a Sales Call.
Approach
Salesperson Meets the Buyer and Gets the Relationship Off to a Good Start.

36. Steps in the Selling Process
Presentation
Salesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach.
Handling
Objections
Salesperson Seeks Out, Clarifies, and Overcomes Customer Objections to Buying.
Closing
Salesperson Asks the Customer for an Order.
Follow-Up
Occurs After the Sale and Ensures Customer Satisfaction and Repeat Business.