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Module ~ 6

Service Marketing Communication and

PROMOTION

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PROMOTION IN MARKETING

At the end of this module the learning outcomes are

1. What is the relevance of marketing communication?

2. What are the elements of marketing communication mix?

3. What is the purpose and relevance of each element of marketing communication mix?

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Suggested readings1. Marketing management by Kotler,

chapter 18 & 19, Millineum edition2. Services Marketing 7th edition by Pearson

Publishers, Chapter 7 

PROMOTION IN MARKETING

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Promotion- How do we make customers aware about the

product- How do we communicate?- Problem of integrated marketing communications

What is the communication process 

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Marketing Communications

AdvertisingDirect

Marketing

Sales Promotion

Public Relations

Personal Selling

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Communication process- Interactive process- Between company and its customers

Every aspect communicates- Product styling- Price- Packaging

o Shape, colour- Sales personnel dress and manners- Channel partners behaviour- Office décor- Sales personnel business card- Stationery

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ExampleCustomer wants to buy computers.

What will he do?- Talk to others- See ads on television- Read articles- Surf internet- Go to computer shop- See a live demonstration

 Marketers need to understand which experiences and impressions will have the most influence at each stage of the buying process.

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Steps in Developing

Effective Communicatio

n

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Advertising

- Any paid form of non personal presentation and

promotion of ideas, goods or services by an identified

sponsor

- Is done by

o Commercial organizations

o Government

o Non-profit organizations

- Direct messages to target public

 

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Advertising can be used to1. Long term image

- Ads of Coke2. Trigger quick sales

-  Buy one, get one free3. Geographically dispersed buyers

-  Lifebuoy customerso Ruralo Semi-urbano All over India

4. Brand preference- Surf comparing ordinary washing powder with surf

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5. Removing misconceptions- AIDS

oCausesoMisconceptionsoRemoveoPresent right picture

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Who carries out advertising?

- Advertising department within the marketing

department

- Most of the work carried out by an outside

advertising agency

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Developing and Managing the Advertising Campaign

The Five Ms of Advertising

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Sales promotionConsists of a diverse collection of incentive

tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

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Sales promotionWhereas advertising offers a reason to buy,

sales promotion offers an incentive to buy. Examples

- Samples- Cash refund- Prices off- Prizes- Free trials- Cross – promotions

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Sales promotion – who carries out- Manufacturers- Distributors- Retailers- Non-profit organizations

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Types of sales promotion1. Consumer promotion

- Targeted on end consumers2. Trade promotion

- Targeted on intermediaries and channel partners3. Business promotion

- Targeted on business / institutional consumers

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Purposes of sales promotion- Introducing new products- Unloading accumulated inventory- Overcoming seasonal slumps- Getting new accounts- Retrieving lost accounts- As a support and supplement to the

advertising effort- As a supplement and support to the

salesmen’s effort- Persuading marketing channel to buy

more / increase the size of the orders.

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Public relations (PR) Involves a variety of programs designed

to promote or protect a company’s image or its individual products

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Functions of public relations1. Press relations

Presenting news and information about the organization in most positive light

2. Product publicitySponsoring efforts to publicize specific products

3. Corporate communicationPromoting understanding of the organization through internal and external communications

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4. LobbyingDealing with legislators and government officials to promote or defeat legislation and regulation

5. CounsellingAdvising management about public issues and company positions and image. This includes in the event of a product mishap.

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4. Personal sellingFace – to –face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders

 

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Personal selling- Is the most effective tool at later stages of

the buying process.- Particularly in building up

o Buyer preferenceo Convictiono Action

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Personal sellingThree distinctive qualities1. Personal confrontation

Immediate and interactive relationship between two or more persons

2. Cultivation- Encourages personal relationship- Informal

3. Response- Buyer under obligation- Listen to sales talk

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Direct marketing- Is an interactive marketing system that

uses or one or more advertising media to effect a measurable response and/or transaction at any location

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Direct marketing – characteristics1. Non public

Message is addressed to a specific person2. Customized

Message can be prepared to appeal to the addressed individual

3. Up-to-dateA message can be prepared very quickly

4. InteractiveThe message can be changed depending on the person’s response.

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Major channels for direct marketing1. Face – to – face selling2. Direct mail3. Catalogue marketing4. Telemarketing5. On-line marketing

PROMOTION IN MARKETING