1. March 2008Marketing Fundamentals Marketing Mix Promotion

2. March 2008Marketing Fundamentals Part 1 Managing Integrated marketing Communication

3. March 2008Marketing Fundamentals Marketing Communications Communications Platforms Advertising Sales Promotion Public relations Direct marketing Personal selling

4. March 2008Marketing Fundamentals Developing Effective Marketing Communications Steps in Marketing Communications Program Development 1.Identify target audience 2.Determine objectives of communication 3.Design the message 4.Select communication channels 5.Select the marketing communications mix 6.Measure results 7.Manage the IMC process

5. March 2008Marketing Fundamentals Developing Effective Marketing Communications Step 1: Identifying the target audience –Includes assessing the audience’s perceptions of the company, product, and competitors’ company/product image Step 2: Cognitive, affective, and behavioral objectives may be set Step 3: AIDA model guides message design

6. March 2008Marketing Fundamentals Message Design ( Under step 3 ) –Content what to Say? Message content decisions involve the selection of appeal, theme, idea, or USP Types of appeals (Rational Appeals, Emotional appeals, Moral appeals) –Structure How to say It Logically? One-sided vs. two-sided messages Order of argument presentation –Format How to say It Symbolically? Graphics, visuals Headline, copy or script Sound effects, voice qualities Shape, scent, texture of package –Source Who should say it? Message source characteristics can influence attention and recall Factors underlying perceptions of source credibility: –Expertise –Trustworthiness –Likeability

7. March 2008Marketing Fundamentals Developing Effective Marketing Communications Step 4:Selecting Communication Channels –Personal communication channels. –Effectiveness derives from personalization and feedback –Several methods of stimulating personal communication channels exist –Nonpersonal communication channels –Influence derives from two-step flow-of-communication process

8. March 2008Marketing Fundamentals Methods of Stimulating Personal Communication Devoting extra effort to influential individuals or companies Creating opinion leaders Working through influential community members Using influential people in testimonial advertising Developing advertising with high “conversation value” Use viral marketing Developing word-of-mouth referral channels Establishing an electronic forum

9. March 2008Marketing Fundamentals Developing Effective Marketing Communications Step 5: Establishing the Marketing Communications Budget –Affordability method –Percentage-of-sales method –Competitive-parity method –Objective-and-task method Step 6: Deciding on the Marketing Communications Mix

10. March 2008Marketing Fundamentals Communications Mix Selection Types of promotional tools –Advertising –Sales promotion –Public relations and publicity –Direct marketing –Personal selling Selection factors –Consumer vs. business market –Stage of buyer readiness –Stage of product life cycle –Market rank

11. March 2008Marketing Fundamentals Developing Effective Marketing Communications Step 7: Measure Results –Recognition, recall, attitudes, behavioral responses Step 8: Manage the Integrated Marketing Communications Process –Provides stronger message consistency and greater sales impact –Improves firms’ ability to reach right customers at right time with right message

12. March 2008Marketing Fundamentals Part 2 Managing Ad campaigns

13. March 2008Marketing Fundamentals Developing and Managing the Advertising Campaign The Five Ms of Advertising –Mission Inform Persuade Remind Reinforce –Money Stage of product life cycle Market share and consumer base Competition and clutter Advertising frequency Product substitutability

14. March 2008Marketing Fundamentals Developing and Managing the Advertising Campaign The Five Ms of Advertising –Message Message generation Message evaluation and selection Message execution Social responsibility review Media –Deciding on reach, frequency, and impact –Selecting media and vehicles –Determining media timing –Deciding on geographical media allocation

15. March 2008Marketing Fundamentals Developing and Managing the Advertising Campaign Major Media Types –Newspapers, Television, Direct mail, Radio, Magazines, Outdoor, Brochures, Telephone, Internet Deciding on Media Categories –Target audience’s media habits, nature of the product and message, cost Media Timing Decisions –Macroscheduling vs. microscheduling –Continuity, concentration, flighting, and pulsing scheduling options Deciding on Geographical Allocation

16. March 2008Marketing Fundamentals Developing and Managing the Advertising Campaign Measurement –Evaluating advertising effectiveness Communication-effect research Sales-effect research

17. March 2008Marketing Fundamentals Sales Promotion Sales promotions are short-term incentives designed to stimulate purchase among consumers or trade Purpose of sales promotion –Attract new triers or brand switchers –Reward loyal customers –Increase repurchase rates

18. March 2008Marketing Fundamentals Sales Promotion Major Consumer-Promotion Tools –Samples –Coupons –Cash refunds. –Premiums –Prizes (contests, sweepstakes, games) –Patronage awards –Free trials –Product warranties –Tie-in promotions –Cross-promotions –Point-of-purchase displays and demonstrations

19. March 2008Marketing Fundamentals Public Relations Public relations activities promote or protect the image of a firm or product Public relations functions: –Press relations –Product publicity –Corporate communications –Lobbying –Counseling

20. March 2008Marketing Fundamentals Public Relations Marketing Public Relations (MPR) –Marketing Public Relations (MPR) –Plays an important role in New product launches Repositioning of mature brand Building interest in product category Influencing specific target groups Defending products with public problems Building the corporate image

21. March 2008Marketing Fundamentals Public Relations Major Public Relations Tools Publications Events Sponsorships News Speeches Public-service activities Identity media

22. March 2008Marketing Fundamentals Direct Marketing Direct marketing uses consumer-direct channels to reach and deliver offerings to consumers without intermediaries. Direct marketing is growing and offers consumers key benefits. Firms are recognizing the importance of integrated direct marketing efforts.

23. March 2008Marketing Fundamentals Direct Marketing Major Direct Marketing Tools –Face-to-face selling –Direct mail –Catalog marketing –Telemarketing –Direct-response TV marketing –Kiosk marketing –E-marketing

24. March 2008Marketing Fundamentals Direct Marketing Steps in Developing a Direct-Mail Campaign: –Step 1: Set objectives –Step 2: Identify target markets –Step 3: Define the offer –Step 4: Test the elements –Step 5: Measure results