ronalyn correa
TRANSCRIPT
Promotion and Integrated Marketing Communication
AdvertisingPublic Relations/ Publicity
Personal SellingSales Promotion
Direct Marketing
Chapters 12, 13 & 14
MARKETING COMMUNICATIONSMARKETING 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
• 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
MAJOR OBJECTIVES OF MARKETING COMMUNICATIONS
InformingInforming PersuadingPersuading
RemindingReminding
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. Advertising1. Advertising
2. Public Relations2. Public Relations5. Direct Marketing5. Direct Marketing
3. SalesPromotion3. Sales
Promotion4. Personal Selling 4. Personal Selling
Integrated Marketing Communications (IMC) is the strategic integration of multiple means of
communicating with target markets
MARKETING COMMUNICATIONS PLANNING
Marketing Plan ReviewMarketing Plan Review
Situation AnalysisSituation Analysis
Communications ProcessAnalysis
Communications ProcessAnalysis
Budget DevelopmentBudget Development
Program DevelopmentProgram Development
Integration & ImplementationIntegration & Implementation
Monitoring, Evaluating, Controlling
Monitoring, Evaluating, Controlling
METHODS
PUSH vs.PULL
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 processNeed -> search -> evaluation -> purchase -> outcomes
• The adoption processAwareness -> interest -> evaluation -> trial -> adoption -> post-adoption confirmation
• Buyer readiness states/Hierarchy of effectsAwareness -> knowledge -> liking -> preference -> conviction -> purchase
• AIDAAwareness -> 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
EvaluateAdvertisingEffective-
ness
Select &Schedule
Media
DetermineAdvertising
Budget
DetermineAdvertisingObjectives
SelectTargetMarket
DesignCreativeStrategy
ADVERTISING STRATEGYADVERTISING STRATEGY
• MESSAGE STRATEGIESObjective vs. Subjective MessagesComparative Message TechniquesEmotional Techniques: Mood, Fear, HumorCelebrity Endorsements vs. Non-Celebrity Images
• MEDIA STRATEGIESBroadcast: Television, RadioPrint: Newspapers, Magazines, JournalsSpecialized: Outdoor, Transit, Direct Mail, Internet
• MESSAGE STRATEGIESObjective vs. Subjective MessagesComparative Message TechniquesEmotional Techniques: Mood, Fear, HumorCelebrity Endorsements vs. Non-Celebrity Images
• MEDIA STRATEGIESBroadcast: Television, RadioPrint: Newspapers, Magazines, JournalsSpecialized: Outdoor, Transit, Direct Mail, Internet
ADVERTISING STRATEGYADVERTISING STRATEGY
• RELATIVE STRENGTHS AND WEAKNESSES OF STRATEGIESEffectiveness and Efficiency: Reach and
FrequencyTarget CapabilitiesCostBelievabilityAppropriateness for Message (Image, Details)
• RELATIVE STRENGTHS AND WEAKNESSES OF STRATEGIESEffectiveness and Efficiency: Reach and
FrequencyTarget CapabilitiesCostBelievabilityAppropriateness for Message (Image, 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
PretestingPretesting
PosttestingPosttesting
Sales EffectivenessEvaluations
Sales EffectivenessEvaluations
Tools:•Focus Groups•Screening•Persuasion Scores
Tools:•Unaided Recall Tests•Aided Recall Tests•Inquiry Evaluations
Tools:•Monitor Sales
PUBLIC RELATIONSPUBLIC RELATIONS
• EFFORTS TO IMPROVE AND MANAGE RELATIONSHIPS WITH PUBLICSCustomersStock HoldersCommunityGovernmentNews Media
• PROACTIVE vs. REACTIVEDuPont vs. Exxon
• PUBLICITYNot Overtly SponsoredHigh Credibility
• EFFORTS TO IMPROVE AND MANAGE RELATIONSHIPS WITH PUBLICSCustomersStock HoldersCommunityGovernmentNews Media
• PROACTIVE vs. REACTIVEDuPont vs. Exxon
• PUBLICITYNot Overtly SponsoredHigh Credibility
PUBLIC RELATIONS
Press RelationsPress
Relations
Product PromotionsProduct
PromotionsAdvising
ManagementAdvising
Management
CorporateCommunications
CorporateCommunicationsLobbying Lobbying
Public Relations Functions
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 SELLING AND SALES MANAGEMENT
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
• FUNCTIONS AND CONTRIBUTIONS OF PERSONAL SELLING“Boundary Spanner” Role, Relationship
Management (Trust)Two-Way Information Channel (Diffusion
of Product and Market Information)Facilitate Exchange
THE MARKETING-COMMUNICATIONS MIX:Relative Emphasis in Consumer and Business Markets
BUSINESS MARKETS CONSUMER MARKETS
SALESFORCE
SALESFORCE
ADVERTISINGPROMOTIONSDIRECT MKT.
ADVERTISINGPROMOTIONSDIRECT MKT.
EMPHASIS EMPHASIS
COMPLEMENT
PERSONAL SELLING AND SALES MANAGEMENT
PERSONAL SELLING AND SALES MANAGEMENT
• ROLES OF SALESPERSONPsychologistConsultantEducator / TeacherProblem SolverTeam Leader
• TYPES OF SELLING POSITIONSNew Business (Prospector)Existing Business (Order Taker)Detailing Support (Marketing, Technical)
• ROLES OF SALESPERSONPsychologistConsultantEducator / TeacherProblem SolverTeam Leader
• TYPES OF SELLING POSITIONSNew Business (Prospector)Existing Business (Order Taker)Detailing Support (Marketing, Technical)
STEPS IN THE SELLING PROCESS: A RELATIONSHIP APPROACH
STEPS IN THE SELLING PROCESS: A RELATIONSHIP APPROACH
• INITIATING RELATIONSHIPSProspectingPre-Call PlanningApproach
• DEVELOPING CUSTOMER RELATIONSHIPSSales Communications and PresentationsGaining and Managing Commitment
• ENHANCING CUSTOMER RELATIONSHIPSFollow-UpSupport
• TRADITIONAL vs. RELATIONSHIP APPROACHES• Consultative (needs-satisfaction) vs. Manipulative (product-focused)
• INITIATING RELATIONSHIPSProspectingPre-Call PlanningApproach
• DEVELOPING CUSTOMER RELATIONSHIPSSales Communications and PresentationsGaining and Managing Commitment
• ENHANCING CUSTOMER RELATIONSHIPSFollow-UpSupport
• TRADITIONAL vs. RELATIONSHIP APPROACHES• Consultative (needs-satisfaction) vs. Manipulative (product-focused)
SALES MANAGEMENT ISSUESSALES MANAGEMENT ISSUES
• RECRUITING AND HIRINGDifficult to Predict Success
• DEPLOYMENTTerritory Design
• AUTOMATIONUse of Technology to Link Buyer, Salesperson, and
Organizations (Customer Relationship Management and Supply Chain Management)
• EVALUATION AND COMPENSATIONOutcome-Based vs. Behavior-Based
• RECRUITING AND HIRINGDifficult to Predict Success
• DEPLOYMENTTerritory Design
• AUTOMATIONUse of Technology to Link Buyer, Salesperson, and
Organizations (Customer Relationship Management and Supply Chain Management)
• EVALUATION AND COMPENSATIONOutcome-Based vs. 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
Consumer FactorsConsumer Factors
AccountabilityAccountability
Increased Retail PowerIncreased Retail Power
Impact of TechnologyImpact of Technology
Short-Term FocusShort-Term Focus
Reasons for the Growth in Sales Promotion:
StimulateTrial
SupportFlexible Pricing
IncreaseConsumption
NeutralizeCompetitors
ComplementaryProducts
EncourageRepurchase
ImpulsePurchasing
OBJECTIVES OF CONSUMER PROMOTIONS
CONSUMER SALES PROMOTION TECHNIQUES
Price Deals
AdvertisingSpecialties Coupons
Sampling Rebates
Contests, Games,Sweepstakes
Premiums Cross-Promotions
OBJECTIVES OF TRADE PROMOTIONS
Increase ResellerInventory
InfluencePrice Discount
Defend AgainstCompetitors
Avoid PriceReductions
InfluenceReseller Promotion
Gain/MaintainDistribution
Increase ResellerInventory
InfluencePrice Discount
Defend AgainstCompetitors
Avoid PriceReductions
InfluenceReseller Promotion
Gain/MaintainDistribution
LIMITATIONS OF SALES PROMOTION
Cannot Reverse Declining Sales Trend
Cannot Reverse Declining Sales Trend
Cannot Overcome Inferior Product
Cannot Overcome Inferior Product
May Encourage Competitive Retaliation
May Encourage Competitive Retaliation
May Hurt ProfitMay Hurt 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