MARKETING COMMUNICATION

CHAPTER 9

MARKETINGCOMMUNICATION

LEARNING OUTCOMES

Discuss the role of promotion in the marketing mix

Discuss the elements of the promotional mix

Describe the communication process

LOI

LO2

LO3

Explain the goal and tasks of promotion

Discuss the AIDA concept and its relationship to the promotional mix

Describe the factors that affect the promotional mix

Discuss the concept of integrated marketing communications

LO5

LO6

LO7

LO4

LEARNING OUTCOMES

Discuss the role of promotion in the

marketing mix

THE ROLE OF PROMOTION IN THE MARKETING MIX

LOI

THE ROLE OF PROMOTION

PromotionPromotionCommunication by

marketers that informs, persuades, and reminds

potential buyers of a product in order to

influence an opinion or obtain a response.

THE ROLE OF PROMOTION

PromotionalStrategy

PromotionalStrategy

A plan for the optimal use of the elements of

promotion:

AdvertisingPublic RelationsSales PromotionPersonal Selling

CompetitiveCompetitiveAdvantageAdvantage

Overall Marketing Objectives

Overall Marketing Objectives

Marketing Mix• Product

• Place• Promotion

• Price

Marketing Mix• Product

• Place• Promotion

• Price

Target MarketTarget Market

Promotional Mix

• Advertising• Public Relations• Sales Promotion• Personal Selling

Promotion Plan

Promotional Mix

• Advertising• Public Relations• Sales Promotion• Personal Selling

Promotion Plan

THE ROLE OF PROMOTIONIN THE MARKETING MIX

COMPETITIVE ADVANTAGE

Unique featuresUnique features

Excellent serviceExcellent service

Low pricesLow prices

Rapid deliveryRapid delivery

High product qualityHigh product quality

REVIEW LEARNING OUTCOMETHE ROLE OF PROMOTION IN THE MARKETING MIX

LOI

Discuss the elements of the promotional mix

THE PROMOTIONAL MIXLO2

THE PROMOTIONAL MIX

PromotionalMix

PromotionalMix

Combination of promotion

tools used to reach the target market and fulfill

the organization’s overall goals.

AdvertisingPublic RelationsSales PromotionPersonal Selling

AdvertisingAdvertising

Impersonal, one-way mass communication about a product or organization that is

paid for by a marketer.

Traditional Advertising Media

Traditional Advertising Media

NewAdvertising Media

NewAdvertising Media

TelevisionRadioNewspapersMagazinesBooksDirect mailBillboardsTransit cards

InternetBanner adsViral marketingE- mailInteractive video

ADVERTISING MEDIA

ADVERTISING

Advantages Disadvantages

Reach large number of people

Low cost per contact

Can be micro-targeted

o Total cost is high

o National reach is expensive for small companies

PUBLIC RELATIONS

PublicRelations

PublicRelations

The marketing function that

evaluates public attitudes, identifies areas

within the organization that the public may be

interested in, and executes a program of action to earn public understanding and

acceptance.

THE FUNCTION OF PUBLIC RELATIONS

Maintain a positive image

Educate the public about the company’s objectives

Introduce new products

Support the sales effort

Generate favorable publicity

SALES PROMOTION

SalesPromotion

SalesPromotion

Marketing activities--other than personal

selling, advertising, and public relations--that stimulate consumer

buying and dealer effectiveness.

EndConsumers

EndConsumers

Trade CustomersTrade Customers

CompanyEmployees Company

Employees

Free samplesFree samples

ContestsContests

PremiumsPremiums

Trade ShowsTrade Shows

Vacation GiveawaysVacation Giveaways

CouponsCoupons

SALES PROMOTION

PersonalSelling

PersonalSelling

PERSONAL SELLING

Planned presentation to one or more prospective buyers for the purpose

of making a sale.

PERSONAL SELLING

Traditional Selling

Traditional Selling

Relationship Selling

Relationship Selling

REVIEW LEARNING OUTCOMEELEMENTS OF THE PROMOTIONAL MIX

LO2

Describe the communication process

MARKETING COMMUNICATIONLO3

COMMUNICATION

CommunicationCommunication The process by which we exchange or share meanings through a

common set of symbols.

Categories of CommunicationCategories of

Communication

InterpersonalCommunicationInterpersonal

CommunicationMass

CommunicationMass

Communication

MARKETING COMMUNICATION

MARKETING COMMUNICATION

As Senders As Receivers

Develop messages

Adapt messages

Spot new communication opportunities

Inform

Persuade

Remind

NoiseNoise

SenderSender EncodingMessageEncodingMessage

FeedbackChannel

FeedbackChannel

MessageChannel

MessageChannel

DecodingMessage

DecodingMessage ReceiverReceiver

THE COMMUNICATION PROCESS

CHARACTERISTICS OF THE ELEMENTS

IN THE PROMOTIONAL MIX

CHARACTERISTICS OF THE ELEMENTS

IN THE PROMOTIONAL MIX

Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

Advertising

Indirect and impersonal

Low

Little

Delayed

One-way

Yes

Yes

Fast

Same message to all audiences

CHARACTERISTICS OF THE ELEMENTS

IN THE PROMOTIONAL MIX

Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

Public Relations

Usually indirect, impersonal

Moderate to low

Little

Delayed

One-way

No

No

Usually fast

Usually no direct control

CHARACTERISTICS OF THE ELEMENTS

IN THE PROMOTIONAL MIX

Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

Sales Promotion

Usually indirect and impersonal

Moderate to low

Little to moderate

Varies

Mostly one-way

Yes

Yes

Fast

Same message to varied target

CHARACTERISTICS OF THE ELEMENTS

IN THE PROMOTIONAL MIX

Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

Personal Selling

Direct and face-to-face

High

Much

Immediate

Two-way

Yes

Yes

Slow

Tailored to prospect

THE IMPACT OF BLOGGING

CorporateBlogs

CorporateBlogs

Sponsored by a company or one of its brands and maintained by one or more of the company’s

employees.

Sponsored by a company or one of its brands and maintained by one or more of the company’s

employees.

NoncorporateBlogs

NoncorporateBlogs

Independent and not associated with the marketing efforts of any

particular company or brand.

Independent and not associated with the marketing efforts of any

particular company or brand.

REVIEW LEARNING OUTCOMETHE COMMUNICATION PROCESS

LO3

Explain the goals and tasks of promotion

THE GOALS AND TASKS OF PROMOTION

LO4

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

GOALS AND TASKS OF PROMOTION

GOALS AND TASKS OF PROMOTION

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity

Increase awareness

Explain how product works

Suggest new uses

Build company image

Informative Promotion

GOALS AND TASKS OF PROMOTION

Persuasive Promotion

GOALS AND TASKS OF PROMOTION

Encourage brand switching

Change customers’ perceptions of product attributes

Influence immediate buying decision

Persuade customers to call

Reminder Promotion

GOALS AND TASKS OF PROMOTION

Remind customers that product may be needed

Remind customers where to buy product

Maintain customer awareness

Discuss the AIDA concept and its relationship to

the promotional mix

PROMOTIONAL GOALS AND THE AIDA CONCEPT

LO5

AIDA ConceptAIDA ConceptModel that outlines the process for achieving promotional goals in terms of stages of

consumer involvement with the message.

THE AIDA CONCEPT

THE AIDA CONCEPT

Action

Desire

Interest

Attention Cognitive (thinking)

Affective (feeling)

Conative (doing)

REVIEW LEARNING OUTCOMETHE AIDA CONCEPT

LO5

Describe the factors that affect the promotional mix

FACTORS AFFECTING THE PROMOTIONAL MIX

LO6

Nature of the productNature of the product

Stage in PLCStage in PLC

Target market factorsTarget market factors

Type of buying decisionType of buying decision

Promotion fundsPromotion funds

Push or pull strategyPush or pull strategy

FACTORS AFFECTING THE CHOICE OF PROMOTIONAL MIX

46

STAGE IN THE PRODUCT LIFE CYCLE

Light Advertising; pre-introductionpublicity

Heavy use of Advertising;PR forawareness;sales promotionfor trial

AD/PRdecrease;limited sales promotion; personal selling fordistribution

Ads decrease;sales promotion;personal selling;reminder & persuasive

Advertising, PR, brandloyalty;personal selling fordistribution

IntroductionIntroduction GrowthGrowth

MaturityMaturityDeclineDecline

Sale

s (

$)

Sale

s (

$)

TimeTime

For…

Widely scattered market

Informed buyers

Brand-loyal repeat purchasers

AdvertisingAdvertising

Sales PromotionSales Promotion

Less Personal SellingLess Personal Selling

TARGET MARKET CHARACTERISTICS

Advertising

Sales PromotionRoutineRoutine

Personal Selling

Neither Routinenor Complex

Neither Routinenor Complex

Advertising

Public Relations

Print AdvertisingComplexComplex

TYPE OF BUYING DECISION

Trade-offs with funds available

Number of people in target market

Quality of communication needed

Relative costs of promotional elements

AVAILABLE FUNDS

PUSH AND PULL STRATEGIES

Manufacturerpromotes to wholesaler

Manufacturerpromotes to wholesaler

Wholesaler promotes to

retailer

Wholesaler promotes to

retailer

Retailer promotes toconsumer

Retailer promotes toconsumer

Consumerbuys from

retailer

Consumerbuys from

retailer

PUSH STRATEGY

Orders to manufacturer

Manufacturerpromotes to

consumer

Manufacturerpromotes to

consumer

Consumer demands product

from retailer

Consumer demands product

from retailer

Retailer demands product

from wholesaler

Retailer demands product

from wholesaler

Wholesaler demands

product frommanufacturer

Wholesaler demands

product frommanufacturer

Orders to manufacturer

PULL STRATEGY

REVIEW LEARNING OUTCOMEFACTORS AFFECTING PROMOTIONAL MIX

LO6

Discuss the concept of integrated marketing

communications

INTEGRATED MARKETING COMMUNICATIONS

LO7

IntegratedMarketing

Communications

IntegratedMarketing

CommunicationsThe careful coordination

of all promotional messages to assure the consistency of messages

at every contact point where a company meets

the consumer.

INTEGRATED MARKETING COMMUNICATIONS

Proliferation of thousands of media choices

Fragmentation of the mass market

Slash of advertising spending in favor of promotional techniques that

generate immediate response

IMC POPULARITY GROWTH

REVIEW LEARNING OUTCOME INTEGRATED MARKETING

COMMUNICATIONS

LO7

Q & A SESSION THANK YOU…