What are the Marketing Mix You studied so far ????

Product Price Distribution PromotionStrategic Marketing Planning, Management must design a Marketing mix.

The combination of a Product ,Price and

Distribution of products to the consumer

and what are the Promotion Strategies used ?

Part VI Promotion Integrated Marketing

Communication. Chapter 17

Personal Selling and Sales Management Chapter 18

Advertising Sales Promotion and Public Relations. Chapter 19

Chapter 17 Integrated Marketing Communication

Chapter GoalsI. The role of promotion in marketing.II. Promotion methods.III. Integrated marketing communications (IMC)—

a strategic business process used to plan, develop, execute, and evaluate coordinated communication with an organization’s publics.

IV. The communication process and promotion.V. Determining the promotional mix—an

organization’s combination of personal selling, advertising, sales promotion, and public relations.

VI. The promotion budget.VII. Regulation of promotion.

I. The role of promotion in marketing.A. Promotion and imperfect competition.1. Firms use promotion in an environment of

imperfect competition to provide information for the buyer’s decision-making process, to differentiate the product, and to persuade prospective buyers.

2. Promotion may also affect demand elasticity for a product.

B. Promotion and marketing—The roles of promotion are to inform, persuade, and remind current and prospective customers and other audiences about a company and its products.

Role of Promotion in Marketing

Promotion and

Imperfect Competition

Goal of Promotion

Role of Promotion in Marketing

Promotion and

Marketing

Persuading

Informing

Reminding

II. Promotion methods.

Coordinated to accomplish

objectives

Advertising SalesPromotion

PersonalSelling

PublicRelations

DirectMarketing

Sales Promotion

Public Relations

SponsoredDemand stimulation

IncentivesTrade promotions

Variety of communication effortsContribute to generally

Favorable attitudesNo specific sales message

Publicity

Personal Selling

Advertising

Direct presentationFace-to-face

or phoneMost money spent

Non PersonalPaid

SponsorPromotion

Day before we learned ….The role of promotion from economic and marketing perspective…..The Promotional Methods ..

All Promotion methods must be integrated and coordinated to achieve the over all marketing and organizational objective.

Coordinated to accomplish

objectives

Advertising SalesPromotion

PersonalSelling

PublicRelations

DirectMarketing

III. Integrated marketing communications

Integrated Marketing Communication is A strategic business process

Used

to plan, develop, execute, and evaluateCoordinated communication

with an organization’s public

There are four stages follow in IMC Program

Plan Develop, Execute, Monitor and Evaluate

All Coordinated Communication

Promotional Program Situation Analysis

Analysis of the Communications Process

Budget Determination

Develop Integrated Marketing Communications Programs

Review of Marketing Plan

AdvertisingSales

PromotionPR/

PublicityPersonalSelling

DirectMarketing

AdvertisingObjectives

SalesPromotionObjectives

PR/Publicity

Objectives

PersonalSelling

Objectives

DirectMarketingObjectives

MessageStrategy

SalesPromotionStrategy

PR/PublicityStrategy

PersonalSelling

Strategy

DirectMarketingStrategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

Internet/Interactive

Internet/InteractiveObjectives

Internet/InteractiveStrategy

Integrated Marketing Communications Planning Model

Marketers need to thing from …..

A .An audience perspective An IMC approach is plan of

communication to a target audience about the company, product, or brand information and utilizing multiple promotion methods in a coordinated way to communicate the appropriate message through various promotional methods.

B. IMC Elements1.An awareness of the target audience’s

information sources, media habits, preferences.

2.An understanding of what the audience knows and believes that relates to the desired response.

3.The use of multiple promotional tools, each having specific objectives, but all linked to a common goal.

4.Coordination of all promotional tools to create a continuous flow of information adapted to an audience’s information needs.

C .Implementing IMC.

IMC comprises the entire promotional program.

IMC program may incorporate several different promotional campaigns, with some even running concurrently. Depending upon the objective to be Achieved and funds available a firm may take up one campaign simultaneously

At local, regional and national or at international level.

exam_results.wmv

D.Evaluating IMC

More rigorous evaluation examine Results of the IMC Program. The outcome of each promotional program is compared with the set objectives.

Awareness of company or brand.Knowledge of company or brand.Interest in a product or brand.Action: Usage or Responses

E.Barriers to IMC.

1.In some companies, promotion activities are not fully supported.

2.Some companies believe that designing and evaluating promotion is too inaccurate to coordinate.

3.Some firms are resistant to change and IMC requires changes:

A . Restructuring internal communication to ensure coordination and cooperation.

B . Conducting the research necessaryto understand the target audience.

C .Top management must support the efforts to integrate promotionactivities.

IV. The communication process and promotion.

IV. The communication process and promotion.

A. Communication is the verbal or nonverbal transmission of information between someone wanting to express an idea and someone else expected or expecting to get the idea.

B. Four elements of communication

a message, a message source, a communication channel, and a receiver.

V. Determining the promotional mix

an organization’s combination of personalselling, advertising, sales promotion, and public relations.A. Target audience.B. Promotion objectives C. Nature of the product.D. Stage in the product life cycleE. Funds available

A .Target audience.1.Push strategy—when a promotion

program is targeted primarily at middlemen; intent is to get middlemen to carry and promote the product.

2.Pull strategy—when a promotion program is targeted primarily at end users; intent is to create a demand among consumers that stimulates them to ask retailers to carry the product(s).

A .Target Audience.

Information Flow

A . Target Audience.

Push PolicyPush Policy

ProducerProducer

RetailerRetailer

ConsumerConsumer

WholesalerWholesaler

Pull PolicyPull Policy

ProducerProducer

WholesalerWholesaler

RetailerRetailer

ConsumerConsumer

Information Flow

A . Target Audience.

Push PolicyPush Policy

ProducerProducer

RetailerRetailer

ConsumerConsumer

WholesalerWholesaler

"Push" TechniquesPoint of sale displays, racks, standsTrade deals, special displaysDealer premiums, prizes, giftsCooperative advertising deals

“Subway” “KFC” “Macdonald”Advertising materials, mats, insertsPush money, catalogs, manualsTrade shows, conventions, meetings

Information Flow

A . Target Audience.

Pull PolicyPull Policy

ProducerProducer

WholesalerWholesaler

RetailerRetailer

ConsumerConsumer

"Pull" Techniques to End Users.. may it be B to C or B to B

Sampling, free trial Coupons Premiums or gifts Contests, sweepstakes Price-off deals Refunds/rebates Frequency/loyalty programs Point-of-purchase advertising

B.Promotion objectives : Determined by which stage of the hierarchy ofeffects the target is found.

1.Awareness : Objective is to let buyers know a product

or brand exists and to build familiarity.2.Knowledge :Objective is to inform buyers about

product features and benefits.3.Liking : Objective is to create positive attitudes

towards the product or brand.4. Preference : Objective is to persuade buyers to find

the product or brand more attractive than other alternatives.

5. Conviction : Objective is to bring out a commitment to purchase from buyers.

6.Purchase : Objective is for buyer to follow through with an actual sale.

C. Nature of the product.

D. Stage in the product life cycle.

E. Funds available—amount of money available for promotion is the ultimate determinant of the promotion mix.

VI. The promotion budget.

What is the PercentageOf Sales ?

Taskor

Objective

FollowingCompetition

AllAvailable

Funds

VI. The promotion budget.A. Promotional budgets are difficult to

determine since: 1.Management may lack standards for

determining how much to spend altogether and how much to spend on specific activities.2. It is difficult to assess the results of promotional expenditures.

B. Percentage of sales method: Budget is determined as a percentage of past or anticipated sales.

C . All-available-funds method for Promotion:

D. Follow-competition method : the firm matches the promotional expenditures of competitors on some proportional level.

E. Task or objective method : firm decides what objectives the promotional program should achieve and the tasks necessary to do so, and then determines the expenditures required.

VII. Regulation of Promotion

Central, State,

Regional , Local

A . Federal Regulation : applies to firms engaged in interstate commerce.

B . Federal Trade Commission options in response to potential or actual violations include:

C . Other federal agencies regulating promotional activities.

D . State and local regulation.

E . Regulation by private organizations.