MT 219 Marketing Unit Seven Marketing Mix: Promotions Advertising, Public Relations, Personal Selling and Sales Promotion Note: This seminar will be recorded by the instructor.

Review of Unit 6 How did Unit 6 go? Questions or concerns? Instructor suggestions for Unit 7 Start on your Research Project for Unit 8 Additional questions?

What are Marketing Communications? Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell.

Modes of Marketing Communications Advertising Sales promotion Events and experiences Public relations and publicity Direct marketing Interactive marketing Word-of-mouth marketing Personal selling

Integrated Marketing Communications Assuring consistent messages through the coordination of promotional efforts The objective is to generate maximum informational and persuasive impact Generally, all five of the promotional mix are used to get maximum effect- advertising, personal selling, sales promotion, direct marketing and publicity

Promotion mix strategies- Push vs. Pull Push - budgets are directed to resellers, often through personal selling Pull – budgets are directed to the consumer, often through advertising and promotion

Communication Mediums Advertising Print and broadcast ads Packaging inserts Motion pictures Brochures and booklets Posters Billboards POP displays Logos Videotapes Sales Promotion Contests, games, sweepstakes Premiums Sampling Trade shows, exhibits Coupons Rebates Entertainment Continuity programs

Communication Mediums Events/ Experiences Sports Entertainment Festivals Art Causes Factory tours Company museums Street activities Public Relations Press kits Speeches Seminars Annual reports Charitable donations Publications Community relations Lobbying Identity media Company magazine

Communication Mediums Personal Selling Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows Direct Marketing Catalogs Mailings Telemarketing Electronic shopping TV shopping Fax mail Voice mail Blogs Websites

Word-of-Mouth Marketing (Used more today with Social Marketing) Person-to-person Chat rooms Blogs Social Online networking Business Online networking

Elements in the Communications Process Sender Encoding Message Decoding Receiver Response Noise Feedback

The Promotion Mix Four main elements of the Promotional mix: Advertising Public Relations Personal Selling Sales Promotion A fifth part of the Promotional Mix - Direct Marketing will be explored in Unit 8.

Select Communication Channels Mass Communications (non-personal) Advertising (TV, Print, Radio, Internet) Promotions & Sales Promotions Events & Experiences Public Relations Direct Communications (Personal) Personal Sales Direct Mail Interactive Word of Mouth Advocate channels Expert channels Social channels

Advertising Paid non-personal communication through mass media Advantages -Cost efficient on a per person reached basis -Highly flexible, and allows for repetition -Adds value -Lends legitimacy Disadvantages -Out of pocket outlay is high -Hard to measure sales effect unless source coding is used -Feedback usually slow

Types of Advertising Institutional Advocacy Product Pioneer Competitive Comparative Reminder Reinforcement

Major Advertising Objectives Inform Persuade Remind

Budget Decisions Affordable Percent of sales Competitive parity Objective and task

Developing Advertising Strategy Two major elements- Creating advertising messages and media selection Key issues in developing advertising strategy -Breaking through the clutter -The need to make advertisements that break through clutter

Media Decisions Sets reach, frequency and impact objectives Select major media types Specific methods- media vehicles and schedule Set media scheduling patterns

Characteristics of the Marketing Communications Mix Advertising Pervasiveness Amplified expressiveness Impersonality Sales Promotion Communication Incentive Invitation Events and Experiences Relevant Involving Implicit Public Relations and Publicity High credibility Ability to catch buyers off guard Dramatization

Characteristics of the Marketing Communications Mix cont. Direct Marketing Customized Up-to-date Interactive Personal Selling Personal interaction Cultivation Response Word-of-Mouth Marketing Credible Personal Timely

Television Advantages Large audiences Low cost per person reached Sight and sound Visible Confers legitimacy Disadvantages High out of pocket cost Perishable Waste coverage

The Internet Advantages Extremely selective Interactive Low cost Immediate feedback Disadvantages Viewers controls viewing Fairly low impact on viewer

Newspapers Advantages Reaches large audiences Purchased to be read Short lead time Frequent publication Believable Good for comparison Can cover local areas Disadvantages Not selective socioeconomic ally Short life Poor reproduction Cluttered Not as popular as they once were

Direct Mail Advantages Very selective Flexible and selectable segments Can be personalized Can arrive in solo package Disadvantages Considered as junk mail High cost per exposure

Magazines Advantages Selectivity Good reproduction Long life Prestigious Full color ads Disadvantages High absolute dollar cost Long lead time

Radio Advantages Inexpensive Flexible Targeted Disadvantages Audio only Background medium Short life

Outdoor Advertising Advantages Flexible Can provide heavy exposure Low cost per exposure Good placement selectivity Disadvantages No good audience selectivity Creative limitations People may ignore

Evaluating Advertising Effectiveness Communication Effect Research -Consumer feedback method -Portfolio tests -Laboratory tests Sales-Effect Research Measuring Sales Impact of Advertising Share of expenditures Share of voice Share of mind and heart Share of market

Public Relations Communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. Also called publicity. Individual brands generally have publicity/public relations done at the corporate level. Some people call this “free advertising,” but is can be expensive and must be done well to be effective.

Major Tools in Marketing PR Publications Events Sponsorships News Speeches Public Service Activities Identity Media

Personal Selling Paid Personal Communication Advantages -Provides significant impact on customers due to personal contact -Interactive- Allows for immediate impact and adjustment Disadvantages -Costly- most costly part of promotion based on people reached If it is so costly, why is it done?

Managing the Sales Force Designing sales force strategy and structure - Structure-Territory, Product or Customer-based -Size of sales force -Outside or inside sales force -Individual or team selling Recruiting and selecting salespeople Training salespeople

Steps in Managing the Sales Force- cont. Compensating salespeople -Commission -Salary -Combination Supervising and motivating salespeople Evaluating salespeople’s performance

The Personal Selling Process Prospecting Pre-approach- Research is important Approach Presentation Handling objections Closing the Sale Follow-up- To help ensure subsequent purchases

What is Sales Promotion? Sales promotion consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

Sales Promotion Direct incentive to buy Growing rapidly due to its effectiveness May be directed at salespeople, resellers, and consumers- anywhere in the distribution chain Examples include free samples, coupons, contests, premiums, rebates, buy one get one frees, frequent buyer programs, etc.

Any Questions? Thank you for attending! See you next week!