Promotion and Integrated Marketing

Communication
Advertising
Public Relations/ Publicity
Personal Selling
Sales Promotion
Direct Marketing

Chapters 12, 13 & 14

 MARKETING
MARKETING COMMUNICATIONS
COMMUNICATIONS

•• MARKETER
MARKETERINITIATED
INITIATEDTECHNIQUES
TECHNIQUESUSED
USEDTO
TO
SET
SETUPUPCHANNELS
CHANNELSOF OFINFORMATION
INFORMATIONAND
AND
PERSUASION
PERSUASIONWITH WITHTARGETED
TARGETEDAUDIENCES
AUDIENCESTO
TO
INFLUENCE
INFLUENCEATTITUDES
ATTITUDESANDANDBEHAVIOR
BEHAVIOR

“Promotion”
“Promotion”

Message
Messageand
andMedia
Media

•• MARKETING
MARKETINGCOMMUNICATIONS
COMMUNICATIONSMIX MIX

“Tool
“ToolBox”
Box”ofofMedia
Mediaand
andTechniques
Techniques

Integration
Integrationand
andCoordination
Coordination

Based
BasedononCommunications
CommunicationsModel
Model
 MAJOR OBJECTIVES OF
MARKETING COMMUNICATIONS

Informing
Informing Persuading
Persuading

Reminding
Reminding
MARKETING COMMUNICATIONS OBJECTIVES

• Increase Market Penetration

• Develop Repeat Purchase Behavior
• Establish Customer Relationships
• Increase Rate of Consumption
• Encourage Product Trial
• Stimulate Impulse Buying
• Stimulate Demand
• Differentiate the Product
• Establish a Product Image
• Influence Sales Volume
• Establish, Modify, or Reinforce Attitudes
• Develop Sales Leads
• Stimulate Interest
• Establish Understanding
• Build Support & Acceptance
 ELEMENTS OF THE
MARKETING COMMUNICATIONS MIX

1.
1.Advertising
Advertising

5.
5.Direct
Direct Marketing
Marketing 2.
2. Public
PublicRelations
Relations

3.
3.Sales
Sales
4.
4. Personal
Personal Selling
Selling Promotion
Promotion

Integrated Marketing Communications (IMC)

is the strategic integration of multiple means of
communicating with target markets
 MARKETING COMMUNICATIONS PLANNING

Marketing
MarketingPlan
PlanReview
Review

Situation
SituationAnalysis
Analysis

Communications
CommunicationsProcess
Process
Analysis
Analysis

Budget
BudgetDevelopment
Development
METHODS
Program
ProgramDevelopment
Development
PUSH vs.
PULL Integration
Integration&&Implementation
Implementation

Monitoring,
Monitoring,Evaluating,
Evaluating,
Controlling
Controlling
 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
 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
 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
 Psychological Processes
• The high involvement decision process
Need -> search -> evaluation -> purchase -> outcomes
• The adoption process
Awareness -> interest -> evaluation -> trial -> adoption -> post-adoption
confirmation
• Buyer readiness states/Hierarchy of effects
Awareness -> knowledge -> liking -> preference -> conviction ->
purchase
• AIDA
Awareness -> Interest -> Desire -> Action
 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
 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
 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
 DEVELOPING AN
ADVERTISING CAMPAIGN

Design
Creative
Strategy

Evaluate
Select Determine Determine
Advertising
Target Advertising Advertising
Effective-
Market Objectives Budget
ness

Select &
Schedule
Media
 ADVERTISING
ADVERTISING STRATEGY
STRATEGY

•• MESSAGE
MESSAGESTRATEGIES
STRATEGIES
Objective
Objectivevs.
vs.Subjective
SubjectiveMessages
Messages
Comparative
ComparativeMessage
MessageTechniques
Techniques
Emotional
EmotionalTechniques:
Techniques:Mood,
Mood,Fear,
Fear,Humor
Humor
Celebrity
CelebrityEndorsements
Endorsementsvs.vs.Non-Celebrity
Non-CelebrityImages
Images

•• MEDIA
MEDIASTRATEGIES
STRATEGIES
Broadcast:
Broadcast:Television,
Television,Radio
Radio
Print:
Print:Newspapers,
Newspapers,Magazines,
Magazines,Journals
Journals
Specialized:
Specialized:Outdoor,
Outdoor,Transit,
Transit,Direct
DirectMail,
Mail,Internet
Internet
 ADVERTISING
ADVERTISING STRATEGY
STRATEGY

•• RELATIVE
RELATIVESTRENGTHS
STRENGTHSAND ANDWEAKNESSES
WEAKNESSESOF OF
STRATEGIES
STRATEGIES

Effectiveness
Effectivenessand
andEfficiency:
Efficiency: Reach
Reach and
and
Frequency
Frequency

Target
Target Capabilities
Capabilities

Cost
Cost

Believability
Believability

Appropriateness
Appropriatenessfor forMessage
Message(Image,
(Image,Details)
Details)
 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
 EVALUATING ADVERTISING
EFFECTIVENESS
Tools:
Pretesting
Pretesting •Focus Groups
•Screening
•Persuasion Scores

Tools:
Posttesting
Posttesting •Unaided Recall Tests
•Aided Recall Tests
•Inquiry Evaluations

Sales
Sales Effectiveness
Effectiveness Tools:
Evaluations
Evaluations •Monitor Sales
 PUBLIC
PUBLIC RELATIONS
RELATIONS

•• EFFORTS
EFFORTSTO TOIMPROVE
IMPROVEANDANDMANAGE
MANAGE
RELATIONSHIPS
RELATIONSHIPSWITH WITHPUBLICS
PUBLICS

Customers
Customers

Stock
StockHolders
Holders

Community
Community

Government
Government

News
NewsMedia
Media
•• PROACTIVE
PROACTIVEvs. vs.REACTIVE
REACTIVE

DuPont
DuPontvs.
vs.Exxon
Exxon
•• PUBLICITY
PUBLICITY

Not
Not Overtly
Overtly Sponsored
Sponsored

High
HighCredibility
Credibility
 PUBLIC RELATIONS
Public Relations Functions

Press
Press
Relations
Relations

Advising
Advising Product
Product
Management
Management Promotions
Promotions

Corporate
Corporate
Lobbying
Lobbying Communications
Communications
 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
 PERSONAL
PERSONAL SELLING
SELLING AND
AND
SALES
SALES MANAGEMENT
MANAGEMENT

•• FUNCTIONS
FUNCTIONS AND AND CONTRIBUTIONS
CONTRIBUTIONS OF OF
PERSONAL
PERSONAL SELLING
SELLING

“Boundary
“Boundary Spanner”
Spanner” Role,
Role, Relationship
Relationship
Management
Management (Trust)
(Trust)

Two-Way
Two-Way Information
Information Channel
Channel (Diffusion
(Diffusion
of
of Product
Product and
and Market
Market Information)
Information)

Facilitate
Facilitate Exchange
Exchange
 THE MARKETING-COMMUNICATIONS MIX:
Relative Emphasis in Consumer and Business Markets

BUSINESS MARKETS CONSUMER MARKETS

EMPHASIS EMPHASIS

ADVERTISING
ADVERTISING
SALES
SALES PROMOTIONS
PROMOTIONS
FORCE
FORCE DIRECT
DIRECTMKT.
MKT.
COMPLEMENT
 PERSONAL
PERSONAL SELLING
SELLING AND
AND
SALES
SALES MANAGEMENT
MANAGEMENT
•• ROLES
ROLESOF OFSALESPERSON
SALESPERSON

Psychologist
Psychologist

Consultant
Consultant

Educator
Educator// Teacher
Teacher

Problem
ProblemSolver
Solver

Team
TeamLeader
Leader
•• TYPES
TYPESOF OFSELLING
SELLING POSITIONS
POSITIONS

New
NewBusiness
Business(Prospector)
(Prospector)

Existing
ExistingBusiness
Business(Order
(OrderTaker)
Taker)

Detailing
Detailing

Support
Support(Marketing,
(Marketing, Technical)
Technical)
 STEPS
STEPS IN
IN THE
THE SELLING
SELLING PROCESS:
PROCESS:
AA RELATIONSHIP
RELATIONSHIP APPROACH
APPROACH
•• INITIATING
INITIATING RELATIONSHIPS
RELATIONSHIPS
Prospecting
Prospecting
Pre-Call
Pre-Call Planning
Planning
Approach
Approach
•• DEVELOPING
DEVELOPINGCUSTOMER
CUSTOMERRELATIONSHIPS
RELATIONSHIPS
Sales
SalesCommunications
Communicationsand
andPresentations
Presentations
Gaining and Managing Commitment
Gaining and Managing Commitment

•• ENHANCING
ENHANCING CUSTOMER
CUSTOMERRELATIONSHIPS
RELATIONSHIPS
Follow-Up
Follow-Up
Support
Support

•• TRADITIONAL
TRADITIONALvs.
vs.RELATIONSHIP
RELATIONSHIPAPPROACHES
APPROACHES
•• Consultative
Consultative(needs-satisfaction)
(needs-satisfaction) vs.
vs.Manipulative
Manipulative(product-focused)
(product-focused)
 SALES
SALES MANAGEMENT
MANAGEMENT ISSUES
ISSUES

•• RECRUITING
RECRUITINGAND ANDHIRING
HIRING

Difficult
Difficultto
toPredict
PredictSuccess
Success
•• DEPLOYMENT
DEPLOYMENT

Territory
TerritoryDesign
Design

•• AUTOMATION
AUTOMATION

Use
Useof
ofTechnology
TechnologytotoLink
LinkBuyer,
Buyer,Salesperson,
Salesperson,and
and
Organizations
Organizations(Customer
(CustomerRelationship
RelationshipManagement
Management
and
andSupply
SupplyChain
ChainManagement)
Management)
•• EVALUATION
EVALUATIONAND
ANDCOMPENSATION
COMPENSATION

Outcome-Based
Outcome-Basedvs.
vs.Behavior-Based
Behavior-Based
 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
THE GROWTH IN SALES PROMOTION
Reasons for the Growth in Sales Promotion:

Consumer
ConsumerFactors
Factors

Accountability
Accountability

Impact
Impactof
ofTechnology
Technology

Short-Term
Short-TermFocus
Focus

Increased
IncreasedRetail
RetailPower
Power
OBJECTIVES OF CONSUMER PROMOTIONS

Stimulate Encourage
Trial Repurchase
Complementary Increase
Products Support Consumption
Neutralize Flexible Pricing Impulse
Competitors Purchasing
 CONSUMER SALES PROMOTION
TECHNIQUES

Price Deals

Advertising
Specialties Coupons

Sampling Rebates

Premiums Cross-
Promotions

Contests, Games,
Sweepstakes
OBJECTIVES OF TRADE PROMOTIONS

Avoid Price Gain/Maintain

Avoid Price Gain/Maintain
Reductions Distribution
Reductions Distribution
Defend Against Influence
Defend Against Influence
Competitors Reseller Promotion
Competitors Reseller Promotion
Increase Reseller Influence
Increase Reseller Influence
Inventory Price Discount
Inventory Price Discount
LIMITATIONS OF SALES PROMOTION

Cannot
Cannot Reverse
Reverse Declining
Declining Sales
Sales
Trend
Trend

Cannot
Cannot Overcome
Overcome Inferior
Inferior
Product
Product

May
May Encourage
Encourage Competitive
Competitive
Retaliation
Retaliation

May
May Hurt
Hurt Profit
Profit
 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
 TECHNIQUES OF DIRECT MARKETING

Electronic
Electronic Direct
Media DirectMail
Mail
Media

Telemarketing
Telemarketing Direct
Direct Selling
Selling

Print
Print Broadcast
Broadcast
Media
Media Media
Media