Chapter 12 10/18/2015 2:03 PM1

Objectives  Know the tools of the marketing communications mix.  Understand the process and advantages of integrated marketing communications.  Understand The nature of each promotion tool  Know the Promotion-Mix-Strategies 10/18/2015 2:03 PM2

The Promotion MixAdvertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor Sales promotion Short-term incentives to encourage the purchase or sales of a product or service Public relations Building good relations with the company's various public by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Personal selling Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationship Direct marketing Direct connection with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationship- the use of telephone, mail, fax, the internet, and other tools to communicate directly with specific consumers Promotion Mix (Marketing Communications Mix) The specific mix of advertising, personal selling, sales promotion, public relations, and direct marketing tools that a company uses to persuasively communicate customer value and build customer relationship 10/18/2015 2:03 PM3

Integrated Marketing Communications  The Marketing Communications Environment is Changing: (landscape and communication model) Mass markets have fragmented, causing marketers to shift away from mass marketing to target marketing Improvements in information technology are facilitating segmentation Media fragmentation has occurred with companies doing less broadcasting and more narrowcasting 10/18/2015 2:03 PM4

Integrated Marketing Communications  The Need for Integrated Marketing Communications Conflicting messages from different sources or promotional approaches can confuse company or brand images ○ The problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently 10/18/2015 2:03 PM5

Integrated Marketing Communications  Integrated Marketing Communications The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products. 10/18/2015 2:03 PM6

Integrated Marketing Communications Personal selling Public relation Direct marketing Sales promotions Advertising Consistent, clear, and compelling company and brand messages 10/18/2015 2:03 PM7

Integrated Marketing Communications  The Need for Integrated Marketing Communications The Internet must be integrated into the broader IMC mix Best bet is to wed traditional branding efforts with the interactivity and service capabilities of online communications 10/18/2015 2:03 PM8

Shaping The Overall Promotion Mix How does the company determine what mix of promotion tools it will use ? 10/18/2015 2:03 PM9

Shaping The Overall Promotion Mix  The nature of each promotion tool Can reach masses of geographically dispersed at a low cost per exposure (for companies that want to reach a mass audience, TV is the place to be) Large-scale advertising says something positive about the seller’s size, popularity, and success Advertising is impersonal and cannot be as directly persuasive as can company salespeople Advertisin g The most effective tool at certain stages of the buying process, particularly in building up buyers preference, conviction, and action Allows all kinds of customer relationship to spring up The buyer usually feels a greater need to listen and respond, even if the respond is a polite “No thank you” Personal Selling 10/18/2015 2:03 PM10

Shaping The Overall Promotion Mix  The nature of each promotion tool Attract consumer attention, offer strong incentive to purchase Invite and reward quick response –where advertising says, “buy our product” sales promotion says, “buy it now” Its effects are often short – lived. Not effective as advertising or personal selling in building long – run brand preference and customer relationship Sales Promotion Very believable Reach many prospects who avoid salespeople and advertisements As with advertising, public relation can dramatize a company or product Public Relation 10/18/2015 2:03 PM11

Shaping The Overall Promotion Mix  The nature of each promotion tool Nonpublic: the message is normally directed to a specific person Immediate and customized: message can be prepared very quickly and can be tailored to appeal to specific consumers Interactive: it allows a dialogue between the marketing team and the consumer Direct Marketing 10/18/2015 2:03 PM12

Shaping The Overall Promotion Mix  Promotion-Mix-Strategies Push strategy: Push strategy: ○ involves “pushing” the product through marketing channels to final consumers. ○ The product directs its marketing activities (primarily personal selling and trade promotion) toward channel members to induce them to carry the product and to promote it to final consumers. ○ Used more in (B2B) {putting more of their funds into personal selling, followed by sales promotion, advertising, and public relation} 10/18/2015 2:03 PM13

Shaping The Overall Promotion Mix ● Pull strategy ● Pull strategy: o The producer direct its marketing activities (primarily advertising and consumer promotion) toward final consumer to induce them to buy the product. o Consumer will demand the product from channel members, who will in turn demand it from producer. o The consumer demand “pull” the product through the channel. o Used more in (B2C) {putting more of their funds into advertising, followed by sales promotion, personal selling, and public relation}. 10/18/2015 2:03 PM14

Shaping The Overall Promotion Mix ProducerProducer ProducerProducer ConsumerConsumer ConsumerConsumer Demand Producer marketing activity (personal selling, trade promotion, other) Demand Reseller marketing activity (personal selling, trade promotion, other) Retailers and wholesalers Retailers Retailers Retailers Push Strategy Producer marketing activities (consumer advertising, sales promotions, other) 10/18/2015 2:03 PM15