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Promotion or Marketing Communications

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Presentation on theme: "Promotion or Marketing Communications"— Presentation transcript:

1 Promotion or 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.

2 Promotional Mix The Marketing Communications Mix
The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.

3 The Tools of Marketing Communications Mix Advertising Personal Selling
The Marketing Communications Mix This CTR relates to the material on pp The Tools of Marketing Communications Mix Advertising Personal Selling Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Personal Presentations by a Firm’s Sales Force. Tools of The Marketing Communications Mix Advertising. Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertising often utilizes mass media and may be adapted to take advantages of a given mediums strengths to convey information. Sales Promotion. Sales promotions consist of short-term incentives to encourage purchase of sales of a product or service. Limited time offers or dated coupons are common sales promotions. Public Relations. Public relations is an on-going process of building good relations with the various publics of the company. Key elements in the process are obtaining favorable publicity, building and projecting a good "corporate image," and designing an information support and response team to respond proactively to unfavorable rumors, stories, or events. Personal Selling. Personal selling describes the use of oral presentations in a conversation with one or more prospective buyers for the purposes of making a sale. Personal selling combines product information and benefits with the interpersonal dynamics of the sales person. Good interpersonal relationship skills and effective oral communication skills are needed for personal selling. Direct Marketing. Directed communications with carefully targeted individual consumers to obtain an immediate response. Sales Promotion Short-term Incentives to Encourage Sales. Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity. Public Relations Direct Communications With Individuals to Obtain an Immediate Response. Direct Marketing

4 Communication Platforms
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 Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

5 Communication Platforms
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 Company magazine Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

6 Communication Platforms
Personal Selling Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows Direct Marketing Catalogs Mailings Telemarketing Electronic shopping TV shopping Voice mail Blogs Websites Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

7 Word-of-Mouth Marketing
Person-to-person Chat rooms Blogs Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

8

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

10 IMC Audience Contact Tools
Broadcast media (TV/radio) Print media (newspapers, magazines) Public Relations/ publicity Internet/ interactive Direct marketing Sales Promotion Product placements (TV and movies) Events and sponsorship Word-of-mouth Point-of-purchase (displays, packaging) Personal selling Out-of-home media Target Audience Relation to text This slide relates to material on p. 24 and Figure 1-5 of the text. Summary Overview A key aspect of IMC is that it encourages marketers to consider a variety of communication tools and how they can be used to deliver messages about their company or brands. Figure 1-5 shows the various ways by which consumers come into contact with a company or brand. Use of this slide This slide can be used to discuss that marketers must determine how valuable each contact tool is and how they can be combined to form an effective IMC program. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

11 Steps in Developing Communication Program*
1.   Identifying the Target Audience 2.   Determining the Communication objectives/Desired Response 3.   Designing a Message 4.   Choosing Media 5.   Deciding the Budget 6. Collecting Feedback

12 Steps in Developing Effective Communication
Step 1. Identifying the Target Audience Step 2. Determining the Communication Objectives Buyer Readiness Stages Steps in Developing Effective Communication Awareness Knowledge Liking Preference Conviction Purchase

13 Steps in Developing Effective Communication
Step 3. Designing a Message Steps in Developing Effective Communication Message Content Message Structure Message Format Attention Interest Desire Action

14 Steps in Developing Effective Communication
Step 4. Choosing Media Choosing Media This CTR relates to the discussion on pp Steps in Developing Effective Communication Step 5. Deciding the budget Personal Communication Channels Choosing Media Personal Communication Channels. Personal channels involve two or more people in direct communication. Strategic usage of personnel communication channels should consider the following influences: Word of Mouth. Word of mouth is especially credible to consumers -- either positive or negative. Opinion Leaders. Opinion leaders are people whose opinions on products are sought by others. Marketers can make use of and even create opinion leaders for consumer’s reference. Discussion Note: Is it ethical to create opinion leaders, especially fictional ones? For example, Mr. Goodwrench of General Motors is not a real person and his genuine GM parts lack quality control as many of them aren’t really made by GM, but by overseas suppliers. Nonpersonal Communication Channels. Nonpersonal channels are characterized by an impersonal method of communication, which lacks the face to face interactive nature of personal channels or feedback. Major forms of nonpersonal communication include: Major media include print, broadcast and display. Atmospheres are designed environments that create or reinforce the buyer’s leanings to buy a product. Events are occurrences staged to communicate messages to target audience. Step 6. Collecting Feedback Nonpersonal Communication Channels

15 Setting the Total Promotion Budget
This CTR relates to the material on pp Setting the Total Promotion Budget Percentage- of-Sales Method Affordable Competitive- Parity Objective- and-Task Setting the Total Promotion Budget Affordable Method. This method involves setting a promotion budget based upon what management thinks the company can afford. This method often places promotion budget decisions in the hands of managers unfamiliar with what promotion does for the product. It also ignores the effect of promotion on sales volume and/or possible value-added to the product in the mind of the consumer by the promotion effort. Percentage-of-Sales Method. This method sets promotion budgets at a certain percentage of current or projected sales or price of the product. While it does link sales and promotion together it tends to make promotion an effect of sales rather than a positive influence on it. Also, falling sales under this method will decrease promotional expenditures which might need to be increased to halt the sales decline. Competitive-Parity Method. This method sets promotion budgets in line with what the competition spends on promotion. This "collective wisdom" philosophy suggests that management is unwilling or unable to decide what level of spending is needed to promote the product to the consumer. Objective-and-Task Method. This method sets budgets by defining specific objectives, determining what tasks are necessary to meet them, estimates the cost of performing the tasks, and sets the promotion budget according to the estimates. In approach assumes that promotion is a resource to be allocated to meet company goals and managed proactively to compete successfully.

16 Collecting the Feedback
awareness? trial? satisfaction?

17 Push vs. Pull Promotion Strategy
Figure 15-4: Push vs. Pull Promotion Strategy


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