Promotion and Integrated Marketing Communication

1
Promotion and Integrated Marketing Communication

• AdvertisingPublic Relations/ Publicity Personal
  SellingSales Promotion
• Direct Marketing
• Chapters 12, 13 14

2
MARKETING COMMUNICATIONS

• MARKETER INITIATED TECHNIQUES USED TO SET UP
  CHANNELS OF INFORMATION AND PERSUASION WITH
  TARGETED AUDIENCES TO INFLUENCE ATTITUDES AND
  BEHAVIOR
• Promotion
• Message and Media
• MARKETING COMMUNICATIONS MIX
• Tool Box of Media and Techniques
• Integration and Coordination
• Based on Communications Model

3
MAJOR OBJECTIVES OF MARKETING COMMUNICATIONS
4
MARKETING COMMUNICATIONS OBJECTIVES
5
ELEMENTS OF THE MARKETING COMMUNICATIONS MIX
Integrated Marketing Communications (IMC) is the
strategic integration of multiple means of
communicating with target markets
6
MARKETING COMMUNICATIONS PLANNING
METHODS
PUSH vs. PULL
7
Push and Pull Strategies

• Push strategy is directed toward the channel
  members
• Provide incentives for those in the distribution
  channels to buy the product
• Pull strategy is directed toward the ultimate
  purchaser
• The focus is on creating demand at the household
  or ultimate consumer level

8
Approaches to Determining the Promotional Budget

• Percentage of sales
• A fixed amount of money per past or projected
  sales
• Probably the most widely used as it is simple
• But, what about cause and effect?
• All available funds/All you can afford
• Budget what is left over for promotional
  expenditures
• New companies often put all available funds into
  promotion to penetrate the market
• But, you can miss opportunities or overspend

9
Approaches to Determining the Promotional Budget

• Competitive parity/Follow the competition
• Adopt the average ratio for promotional expenses
  to sales for the industry or main competitor or
  the same absolute amount as a competitor
• But, what if they do not know what they are doing
  and/or strategies and tactics are different?
• Objective and task
• 1) Determine objectives 2) Determine
  relationship between expenditures and ability to
  achieve objective 3) Set a budget that allows
  the achievement of these goals

10
Psychological Processes

• The high involvement decision processNeed -gt
  search -gt evaluation -gt purchase -gt outcomes
• The adoption processAwareness -gt interest -gt
  evaluation -gt trial -gt adoption -gt post-adoption
  confirmation
• Buyer readiness states/Hierarchy of
  effectsAwareness -gt knowledge -gt liking -gt
  preference -gt conviction -gt purchase
• AIDAAwareness -gt Interest -gt Desire -gt Action

11
Selection of the Promotional Mix

• PRODUCT CHARACTERISTICS
• Industrial good/technical good
• Need personal selling customers want to receive
  information, inspect and compare the products
• Consumer package goods/frequently purchase items
• Advertising and sales promotion to reach market
• Unit value
• Low cost must use mass media approaches, with
  high unit cost personal selling is effective
• Customization
• Customized often requires personal selling

12
Selection of the Promotional Mix

• CUSTOMER CHARACTERISTCS
• Industrial versus consumer market
• Consumers are easier to reach (decision maker)
  through media sources industrial buyers
  typically have a more formal buying process,
  requiring personal selling
• Number of customers
• For a small number of customers, personal selling
  can play a much more important role
• Geographical dispersion
• Not only affects the type of promotional effort,
  but the media choices

13
Advertising Defined

• ADVERTISING
• Any paid form of non-personal presentation and
  promotion of ideas, goods, or services by an
  identified sponsor
• Magazines, newspaper, outdoor posters, direct
  mail, radio televisions, etc.
• Key issues
• The time or media space is paid for
• The sponsor is identified and has control over
  the promotional activity

14
DEVELOPING AN ADVERTISING CAMPAIGN
15
ADVERTISING STRATEGY

• MESSAGE STRATEGIES
• Objective vs. Subjective Messages
• Comparative Message Techniques
• Emotional Techniques Mood, Fear, Humor
• Celebrity Endorsements vs. Non-Celebrity Images
• MEDIA STRATEGIES
• Broadcast Television, Radio
• Print Newspapers, Magazines, Journals
• Specialized Outdoor, Transit, Direct Mail,
  Internet

16
ADVERTISING STRATEGY

• RELATIVE STRENGTHS AND WEAKNESSES OF STRATEGIES
• Effectiveness and Efficiency Reach and Frequency
• Target Capabilities
• Cost
• Believability
• Appropriateness for Message (Image, Details)

17
Reach Frequency

• Reach number of different target consumers who
  are exposed to a message at least once during a
  specific period of time
• Frequency number of times an individual is
  exposed to a given message during a specific
  period of time
• Cost per contact cost of reaching one member of
  the target market
• Allows comparison across advertising strategy
  vehicles

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EVALUATING ADVERTISING EFFECTIVENESS
19
PUBLIC RELATIONS

• EFFORTS TO IMPROVE AND MANAGE RELATIONSHIPS WITH
  PUBLICS
• Customers
• Stock Holders
• Community
• Government
• News Media
• PROACTIVE vs. REACTIVE
• DuPont vs. Exxon
• PUBLICITY
• Not Overtly Sponsored
• High Credibility

20
PUBLIC RELATIONS
Public Relations Functions
21
Personal Selling

• PERSONAL SELLING
• Oral presentation in a conversation with one or
  more prospective purchasers for the purpose of
  making a sale
• Personal selling represents the most popular
  promotional effort in terms of financial
  expenditures and number of people employed
• Personal Selling is
• (1) Dyadic, (2) Flexible, (3) Focused
  (personalized), and (4) Often results directly in
  a sale
• Other promotional elements move the customer
  toward the sale, personal selling closes the sale

22
PERSONAL SELLING AND SALES MANAGEMENT

• FUNCTIONS AND CONTRIBUTIONS OF PERSONAL SELLING
• Boundary Spanner Role, Relationship Management
  (Trust)
• Two-Way Information Channel (Diffusion of Product
  and Market Information)
• Facilitate Exchange

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THE MARKETING-COMMUNICATIONS MIXRelative
Emphasis in Consumer and Business Markets
BUSINESS MARKETS
CONSUMER MARKETS
EMPHASIS
EMPHASIS
SALES FORCE
ADVERTISING PROMOTIONS DIRECT MKT.
COMPLEMENT
24
PERSONAL SELLING AND SALES MANAGEMENT

• ROLES OF SALESPERSON
• Psychologist
• Consultant
• Educator / Teacher
• Problem Solver
• Team Leader
• TYPES OF SELLING POSITIONS
• New Business (Prospector)
• Existing Business (Order Taker)
• Detailing
• Support (Marketing, Technical)

25
STEPS IN THE SELLING PROCESS A RELATIONSHIP
APPROACH

• INITIATING RELATIONSHIPS
• Prospecting
• Pre-Call Planning
• Approach
• DEVELOPING CUSTOMER RELATIONSHIPS
• Sales Communications and Presentations
• Gaining and Managing Commitment
• ENHANCING CUSTOMER RELATIONSHIPS
• Follow-Up
• Support
• TRADITIONAL vs. RELATIONSHIP APPROACHES
• Consultative (needs-satisfaction) vs.
  Manipulative (product-focused)

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SALES MANAGEMENT ISSUES

• RECRUITING AND HIRING
• Difficult to Predict Success
• DEPLOYMENT
• Territory Design
• AUTOMATION
• Use of Technology to Link Buyer, Salesperson, and
  Organizations (Customer Relationship Management
  and Supply Chain Management)
• EVALUATION AND COMPENSATION
• Outcome-Based vs. Behavior-Based

27
Sales Promotion

• SALES PROMOTION
• Those marketing activities - other than
  advertising, public relations/publicity, and
  personal selling - that stimulate consumer
  purchasing and dealer effectiveness
• Displays, shows and exhibitions, coupons,
  contests, samples

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THE GROWTH IN SALES PROMOTION
Reasons for the Growth in Sales Promotion
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OBJECTIVES OF CONSUMER PROMOTIONS
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CONSUMER SALES PROMOTION TECHNIQUES
31
OBJECTIVES OF TRADE PROMOTIONS
32
LIMITATIONS OF SALES PROMOTION
33
Direct Marketing

• Techniques used to get consumers to make a
  purchase from their home, office or other
  nonretail setting
• Direct mail, catalogs, mail order, telemarketing,
  electronic retailing

34
TECHNIQUES OF DIRECT MARKETING
Direct Mail
Electronic Media
Telemarketing
Direct Selling
Print Media
Broadcast Media