Topic 9: Integrated Marketing Communications Promotion

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Topic 9 Integrated Marketing Communications
(Promotion)

• By the end of this session you will
• Gain an understanding of the concept of
  integrated marketing communications (mass and
  direct techniques)
• Gain an appreciation of the major promotional
  tools
• Appreciate the importance of database marketing
  and customer relationship management for direct
  marketing activities and
• Be able to evaluate the appropriateness of each
  when designing a promotional mix

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Role of Promotion

• To communicate with individuals, groups, or
  organisations to directly or indirectly
  facilitate exchanges by informing and persuading
  one or more of the audiences to accept an
  organisations products
• To maintain positive relationships with
  environmental forces
• Effectiveness depends on quantity and quality of
  information an organisation takes in

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Key Promotional Mix Tools
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Promotion Communications

• Marketing communications is not the exclusive
  province of the promotional mix
• Effective communication is not a 1 way flow
• Advertising decisions should not be taken in
  isolation

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The Promotional Mix

• Defined as the specific combination of
  promotional methods an organisation uses for a
  particular product / service to persuasively
  communicate customer value and build customer
  relationships (Armstrong Kotler, 2006)
• Choice of promotional blend will vary according
  to type of product, market and the promotional
  objectives and budget
• Role of an integrated marketing communications
  approach (Jobber, 2004)

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Integrated Marketing Communications (IMC)

• The various promotional mix components are often
  the responsibility of different departments
• Danger of blurred/conflicting messages
• IMC facilitates coordination of marketing
  communication tools to deliver a clear,
  consistent, compelling, credible and competitive
  message about the organisation and its
  products/brands
• Leads to clearer positioning and improved
  consistency

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IMC changing face of marketing communications

• A shift away from mass marketing towards
  building closer relationships with customers in
  more narrowly defined micromarkets/segments
• Mass Communication Techniques
• Direct Communication Techniques

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Model of the Communication Process (Sharing of
Meaning)
Noise
Noise
4
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Choice of Promotional Mix

• Resource availability and cost of promotional
  tools
• Market size and concentration
• Customer information needs
• Product characteristics
• Distribution Push vs Consumer Pull strategies

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Mass Communication Techniques

• Advertising
• Sales Promotion
• Public Relations Publicity
• Sponsorship
• Exhibitions
• Product Placement

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Advertising Developing a Strategy

• Any paid form of non-personal presentation and
  promotion of ideas, goods or services by an
  identified sponsor (Armstrong Kotler, 2006)
• Developing an Advertising (Marketing) Strategy)
• Identify and understand target audience
• - in terms of socio-economic group, age, gender,
  location, buying frequency and/or lifestyle
• - buyer motives and choice criteria

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Developing Advertising Strategy Ctd.

• Define advertising objectives create awareness,
  stimulate trial, position products, correct
  misconceptions, remind and reinforce, provide
  product information, support sales force, offset
  competitors advertising,
• Set the budget direct link to achievement of
  objectives
• Four methods of setting budgets
• of sales, affordability, matching competition,
  objective and task

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Developing Advertising Strategy Ctd.

• Message Media Decisions
• - the advertising platform (
• - the advertising message (
• - Selection of media class and vehicle
• Execute the campaign
• Evaluate effectiveness consider what, when,
  how?

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Media Class Options

• Press
• National
• Regional

Television

• Magazines
• Fashion
• Technical
• Trade

Radio
Cinema the Internet
Posters
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Sales Promotion

• Generally short term (tactical) incentives to
  consumers or the trade, designed to provide extra
  value to stimulate purchase
• Growth of sales promotion attributed to
• Increased impulse purchasing
• Sales promotions becoming respectable
• Rising cost of advertising and clutter
• Shortening time horizons
• Competitor activities
• Measurability

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Consumer Trade Promotions
Consumerpromotions Pull
Tradepromotions Push
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Sales Promotion Objectives

• Fast sales boost -
• Encourage trial -
• Encourage repeat purchase
• Stimulate purchase of larger packs -
• Gain distribution and shelf space -

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Public Relations

• The management of communications and
  relationships to establish goodwill and mutual
  understanding between an organisation and its
  public (
• PR can create an (internal and external)
  environment in which it is easier to conduct
  marketing (
• Concerned more with long-term reputation and
  corporate image

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PR Activities

• Identifying special interest groups and
  establishing likely influence on organisations
  activities
• Lobbying legislators, government or professional
  bodies
• Providing advice to management
• Product publicity
• Media relations
• Corporate communications/advertising
• Seminars/publications
• Charitable donations

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PR Objectives

• Foster prestige and reputation
• Generate awareness and interest
• Dealing with issues and opportunities
• Goodwill of customers, employees, suppliers and
  distributors, government, promote favourable
  community and government relations
• Overcoming misconceptions
• Dealing with unfavourable publicity
• Attracting and keeping good employees
• Unobtrusive promotion of products

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Publicity a major element of PR

• Non-personal communication in news story form
  about an organisation and its products that is
  transmitted through a mass medium at no direct
  charge
• Press (news) release - lt100 words usually used to
  introduce new products and usually gives firms
  or agencys name
• Feature article - lt1000 words prepared for a
  specific publication
• Captioned photograph or photo calls
• Press conferences
• Interviews or public speaking
• Letters to editors

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Publicity Uses and Limitations

• Uses
• Increase awareness of a firms products, brands
  or activities
• Maintain certain level of positive public
  visibility
• Message has high credibility with no direct media
  costs
• Enhance a particular image (innovativeness or
  progressiveness)
• Overcome negative images
• Limitations ?

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Sponsorship

• Business relationship between a provider of
  funds, resources or services and an individual,
  event or organisation that may be used for
  commercial advantage (Sleight, 1989)
• Used to
• Gain publicity
• Create entertainment opportunities
• Foster favourable brand and company associations
  (eg values transferred from Sports, Social
  causes, etc)
• Improve community relations
• Create promotional opportunities

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Values transferred from sponsorship categories
Sports
High-brow arts
Mass arts
Social causes
Environmental programmes
Healthy Young Energetic Fast Vibrant Masculine
Sophisticated Elite Discriminating Up-market Serio
us Pretentious
Young Accessible Friendly Current Innovative Comme
rcial
Admirable Concerned Caring Intelligent Explosive
Caring Concerned Explosive
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Other Promotional ToolsExhibitions Product
Placement

• Exhibitions bring together buyers, sellers and
  competitors together in a commercial setting
• Opportunity for networking, introducing a new
  product/service, competitor analysis and sales
  lead generation
• Product Placement deliberate placing of products
  and/or logos in movies and television, usually in
  return for money

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Direct Communication Techniques

• Personal Selling
• Direct Marketing
• Database Marketing
• Customer Relationship Marketing
• Internet Marketing

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Personal Selling

• Defined as oral (direct or face-to-face)
  communication with prospective purchasers with
  the intention of making a sale
• Sales managers need to recruit, train, motivate
  (retain) and evaluate staff
• Sales Management issues
• Geographical separation
• Repeated rejections
• Salespersons personality vs. job realities
• Oversimplification of the task

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Sales Responsibilities

• Prospecting
• Maintaining customer records and information
  feedback
• Providing service (goodwill)
• Handling complaints
• Self-management
• Relationship management

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Personal Selling Implications for Marketing
Strategy

• Personal selling is affected by 2 major marketing
  decisions at product level
• Target market choice
• Differential advantage created
• Sales objectives/strategies are affected by the 4
  strategic objectives
• Impact on salesforce size and organisation

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Direct Marketing

• Attempts to precisely target, acquire and retain
  customers by contacting them without the use of
  an intermediary. Methods include
• Direct Mail and mail order
• Telemarketing/sales (mobile marketing)
• Direct response advertising
• Catalogue marketing
• Electronic media (Internet, email, interactive
  TV)
• Inserts
• Door-to-door leafleting

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Growth in Direct Marketing Activity

• Market and media fragmentation
• Developments in technology Databases!
• Mailing list explosion
• More sophisticated analytical techniques
• High costs of other techniques (need coordinated
  marketing systems CRM)
• Direct marketing is now an integral part of the
  relationship marketing concept
• No longer synonymous with junk mail!

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Database Marketing

• An interactive approach to marketing that uses
  individually addressable marketing media and
  channels (mail, telephone and salesforce) to
• Allows direct communication with customers and
  usually requires them to respond
• an electronic filing cabinet

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Types of information on a marketing database
Marketing database
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Main Applications of Database Marketing

• Direct mail
• Telemarketing
• Distribution management systems
• Loyalty marketing
• Target marketing
• Campaign planning
• Marketing evaluation

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Developing Database Marketing a step further
CRM

• Single-customer orientation
• Enhanced interaction between customer and company
• Consolidation of many databases into one
  integrated system unified message and image
  whether via salesforce, telephone, distributors,
  fax, email, websites,

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Internet Marketing (e-marketing, e-commerce)

• The distribution of products, information, and
  promotional benefits to consumers and businesses
  through electronic media
• Advantages
• Global reach at relatively low cost
• Catalogues and prices can be changed quickly
• Convenient form of searching and buying (EDI)
• Reduces personal selling (and order) costs
• Establishes dialogue (customised promotion and
  relationship building)
• Limitations ?

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Ethical Issues in Promotion

• Misleading advertising
• Marketing to children
• The intrusiveness of direct marketing
• Use of trade inducements
• Third party endorsements
• Deception by sales people
• The hard sell
• Bribery
• Influence on societys values, social exclusion,