Session 13

Promotion
Marketing Communications

The means by which firms attempt to

inform, persuade, and remind
consumers, directly or indirectly, about
the products and brands they sell.
 Marketing Communication
• Communicate with customer:
– Product
– Price
– Availability
– Organization
• The marketing communication system
– Word of mouth
– Promotion mix
 The Promotion Mix
Any
AnyPaid
PaidForm
FormofofNonpersonal
Nonpersonal
Advertising
Advertising Presentation
Presentation by anIdentified
by an Identified
Sponsor.
Sponsor.

Personal Presentations by
Personal
Personal Selling
Selling a Firm’s Sales Force.

Sales Promotion Short-term Incentives to

Encourage Sales.

Building Good Relations with

Public Relations Various Publics by Obtaining
Favorable Unpaid Publicity.

Direct Communications
Direct Marketing With Individuals to Obtain
an Immediate Response.
Figure15.2 Elements in the
Communications Process
Steps in Developing Effective
Communications
Identify target audience
Determine objectives
Design messages
Select channels
Establish budget
Decide on promotion mix
Manage IMC
Communications Objectives
• Based on Buyer-readiness
stages, PM pp.463-464
Category Need

Brand Awareness

Brand Attitude

Purchase Intention
Design Message - Creative Strategy

• Rational and emotional appeals

• Positive and negative appeals
– Fear
– Guilt
– Shame
– Humor
– Love
– Pride
– Joy
 Select media
• Personal communication channels
– Word of mouth
– Opinion leaders
• Non-personal communication channels
– Print
– Broadcast
– Display
• Integration
 Setting the Total Promotion
Budget
One of the Hardest Marketing Decisions
Facing a Company is How Much to Spend on
Promotion.

Affordable Percentage
Percentage of
of Sales
Sales
Based on What the Based
BasedononaaCertain
CertainPercentage
Percentage
Company Can Afford of
ofCurrent
Currentor
orForecasted
ForecastedSales
Sales

Objective-and-Task
Objective-and-Task Competitive-Parity
Competitive-Parity
Based
BasedononDetermining
Determining Based
Basedon
onthe
theCompetitor’s
Competitor’s
Objectives
Objectives&&Tasks,
Tasks,Then
Then Promotion
PromotionBudget
Budget
Estimating
EstimatingCosts
Costs
 Setting the Promotion Mix
Reach
Reach Many
Many Buyers,
Buyers, Repeat
Repeat
Advertising
Advertising Message
Message Many
Many Times,
Times, Impersonal,
Impersonal,
Expensive
Expensive
Personal
Personal Personal
Personal Interaction,
Interaction, Relationship
Relationship
Building,
Building, Most
Most Expensive
Expensive Promo
Promo
Selling
Selling Tool
Tool
Sales
Sales Wide
Wide Assortment
Assortment of of Tools,
Tools,
Rewards
Rewards Quick
Quick Response,
Response, Efforts
Efforts
Promotion
Promotion Short-Lived
Short-Lived
Public
Public Very
Very Believable,
Believable, Dramatize
Dramatize aa
Company
Company or or Product,
Product,
Relations
Relations Underutilized
Underutilized
Direct
Direct Nonpublic,
Nonpublic, Immediate,
Immediate,
Marketing
Marketing Customized,
Customized, Interactive
Interactive
 Promotion Mix Strategies

Type of
Product-
Strategy that Market Strategy that
Calls for Calls for Using
Spending A the Salesforce
Lot on Buyer and Trade
Advertising Readiness Promotion to
and Push the
Consumer Product
Promotion to Product Through the
Build Up Life-Cycle Channels.
(Pull) Stage
Consumer
 The Need for Integrated
Marketing Communications

With Integrated Marketing Communications

(IMC), the Company Carefully Integrates
and Coordinates Its Many
Communications Channels to Deliver a
Clear, Consistent, and Compelling
Message About the Organization and Its
Product or Service.
 Communication Platforms
Advertising Sales Promotion
• Print and broadcast ads • Contests, games,
• Packaging inserts sweepstakes
• Motion pictures • Premiums
• Brochures and booklets • Sampling
• Posters • Trade shows, exhibits
• Billboards • Coupons
• POP displays • Rebates
• Logos • Entertainment
• Videotapes • Continuity programs
 Communication Platforms
Events/ Experiences Public Relations
• Sports • Press kits
• Entertainment • Speeches
• Festivals • Seminars
• Arts • Annual reports
• Causes • Charitable donations
• Factory tours • Publications
• Company museums • Community relations
• Street activities • Lobbying
 Communication Platforms
Personal Selling Direct Marketing
• Sales presentations • Catalogs
• Sales meetings • Mailings
• Incentive programs • Telemarketing
• Samples • Electronic shopping
• Fairs and trade shows • TV shopping
• Fax mail
• E-mail
• Voice mail
 Message Source

Celebrity Characteristics
– Expertise
– Trustworthiness
– Likeability
Personal Communications Channels

Advocate channels

Expert channels

Social channels
Nonpersonal Communication Channels

Media

Sales Promotion

Events and Experiences

Public Relations
 Discussion
Take an example of the ads/commercials
you have recently seen.
Discuss the good, the bad and the possible
improvement of the selected ads.
 Advertising

Any paid form of non-personal presentation

and promotion of ideas, goods, or
services by an identified sponsor.
 Developing & Managing
an Advertising Program – 5 Ms

Mission: What are the advertising

objectives?
• Money: How much can be spent?
• Message: What message should be
sent?
• Media: What media should be used?
• Measurement: How should the result be
evaluated?
 Advertising Objectives

Specific Communication Task

Accomplished with a Specific Target Audience
During a Specific Period of Time

Informative Advertising Persuasive Advertising

Build Primary Demand Build Selective Demand

Comparison Advertising Reminder Advertising

Compares One Brand to Keeps Consumers Thinking
Another About a Product.
Setting the Advertising Budget
• Advertising Budget Methods
– Affordable,
– Percentage of Sales,
– Competitive-Parity
– Objective-and-Task
• Factors in Setting the Advertising Budget
– Product Differentiation
– Stage in the Product Life Cycle
– Market Share
– Advertising Frequency
– Competition and Clutter
 Creating the Advertising
Message
Plan a Message Strategy
General Message to Be Communicated to Customers

Develop a Message
Focus on
Customer Benefits Creative Concept
“Big Idea”
Visualization or Phrase
Advertising Appeals
Combination of Both
Rational
Emotional
Competitive
(Meaningful, Believable,
Distinctive)
Selecting Advertising Media
Step 1. Decide on Reach, Frequency,
and Impact

Step 2. Choosing Among Major Media Types

Media Habits of Target Consumers
Nature of the Product
Type of Message
Cost
Step 3. Selecting Specific Media Vehicles
Specific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality

Step 4. Deciding on Media Timing

Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
Evaluating Advertising Effectiveness
• Communication Effect
Research
– Consumer feedback
method
– Portfolio tests
– Laboratory tests
• Sales-Effect Research
 Creative Brief

• Positioning statement • Brand promise

• Key message • Evidence of promise
• Target market • Media
• Objectives • Background
• Key brand benefits • Creative
considerations
 Television
Advantages Disadvantages
• Reaches broad spectrum • Brief
of consumers
• Clutter
• Low cost per exposure
• Ability to demonstrate • High cost of
product use production
• Ability to portray image • High cost of
and brand personality placement
• Lack of attention by
viewers
 Print Ads
Advantages Disadvantages
• Detailed product • Passive medium
information • Clutter
• Ability to • Unable to
communicate user demonstrate product
imagery use
• Flexibility
• Ability to segment
 Major Media Types
• Newspapers • Outdoor
• Television • Yellow pages
• Direct mail • Newsletters
• Radio • Brochures
• Magazines • Telephone
• Internet
 Place Advertising

• Billboards
• Public spaces
• Product placement
• Point-of-purchase
 Sales Promotion

Collection of incentive tools, mostly

short term, designed to stimulate
quicker or greater purchase
of particular products or services
by consumers or the trade.
 Sales Promotion Tactics
Consumer-directed Trade-directed
• Samples • Price offs
• Coupons • Allowances
• Cash refund offers • Free goods
• Price offs • Sales contests
• Premiums • Spiffs
• Prizes • Trade shows
• Patronage rewards
• Specialty advertising
• Free trials
• Tie-in promotions
 Major Consumer Sales
Promotion Tools
Sample
Sample Trial
Trial amount
amount of
of aa product
product

Savings
Savings when
when purchasing
purchasing specified
specified
Coupons
Coupons products
products

Cash
Cash Refunds
Refunds Refund
Refund of
of part
part of
of the
the purchase
purchase price
price

Reduced
Reduced prices
prices marked
marked on on the
the label
label
Price
Price Packs
Packs or
or package
package
Goods
Goods offered
offered free
free or
or low
low cost
cost as
as an
an
Premiums
Premiums incentive
incentive to
to buy
buy aa product
product
Advertising
Advertising Articles
Articles imprinted
imprinted with
with an
an advertiser’s
advertiser’s
Specialties
Specialties name
name given
given as
as gifts
gifts
 Major Consumer Sales
Promotion Tools
Cash
Cash or
or other
other rewards
rewards for
for the
the use
use of
of aa
Patronage
Patronage Rewards
Rewards certain
certain product
product
Displays
Displays and
and demonstrations
demonstrations thatthat
Point-of-Purchase
Point-of-Purchase take
take place
place at
at the
the point
point of
of sale
sale
Consumers
Consumers submit
submit an
an entry
entry to
to be
be
Contests
Contests judged
judged

Consumers
Consumers submit
submit their
their names
names for
for aa
Sweepstakes
Sweepstakes drawing
drawing
Presents
Presents consumers
consumers with
with something
something
Game
Game every
every time
time they
they buy
buy
Public Relations (PR)

Building good relations with the

company’s various publics by
obtaining favorable publicity,
building up a good corporate
image, and handling or heading
off unfavorable rumors, stories,
and events.
Public Relations Functions
• Press relations
• Product publicity
• Corporate communications
• Lobbying
• Counseling
Major Tools in Marketing PR
• Publications
• Events
• Sponsorships
• News
• Speeches
• Public Service
Activities
• Identity Media
 Role and Impact of Public
Relations
– Advantages:
• Strong impact on public awareness at
lower cost than advertising
• Greater credibility than advertising
– Publicity is often underused
– Good public relations can be a powerful
brand-building tool
 Direct Marketing (DM)

• Avoid dependence on intermediaries

• Focus on promotional mix ingredients which
deal directly with targeted customers
– Direct mail
– Telemarketing
– Face-to-face selling
– Direct response advertising
– Online marketing
Benefits of Direct Marketing to
Buyers

– Convenient
– Easy to use
– Private
– Access to a wealth of information
– Immediate
– Interactive
Benefits of Direct Marketing to
Sellers
– Powerful tool for building relationships
– Allows for targeting of small groups or
individuals with customized offers in a
personalized fashion
– Offers access to buyers that couldn’t be
reached via other channels
– Low-cost, effective alternative for reaching
specific markets
 Forms of Direct Marketing

• Face-to-Face • Catalog Marketing

Selling • Kiosk Marketing
• Telemarketing • Online Marketing
• Direct-Mail
• Direct-Response TV
Marketing
Marketing
Promotion Strategy along PLC

PLC Stages OBJECTIVE MIX

Introduction Inform Adv., SP, PS,
DM
Growth Persuade Adv., PS, DM,
PR
Maturity Remind, reinforce Adv., PS

Decline
Relative Importance of Promotion
Tools
Consumer Markets B2B Markets

Advertising Personal Selling

Public Relations
Public Relations
Sales Promotion Direct & Online

Direct & Online Sales Promotion

Personal Selling Advertising