Communication

Class overview
Professor Walter Vizarreta

Table of Contents

Promotional strategies: Push or Pull.

The communication process.
Designing the message.
AIDA model.
Integrated marketing communication.
Developing effective communications.
The nature of each promotional tool.

Promotional Strategies
PULL
Designed to attract clients directly; these
will then demand a product from retailers.

&

PUSH
Designed to stimulate
wholesalers or retailers to
market products for
consumers.

The Communication Process

The goal of communication is to convey informationand the understanding of that

informationfrom one person or group to another person or group. This
communication process is divided into three basic components: A sender transmits a
message through a channel to the receiver.

The sender first develops an idea, which is composed into a message and then
transmitted to the other party, who interprets the message and receives meaning.
Information theorists have added somewhat more complicated language. Developing
a message is known as encoding. Interpreting the message is referred to
as decoding.

The Communication Process

Steps in Developing Effective

Communication

By Phillip Kotler:
http://dl.ueb.edu.vn/bitstream/1247/2250/1/Marketing_Management_-_Mille
nium_Edition.pdf

Identify the Target Audience

Deciders or
Influencers

Current
Users

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Potential
Buyers

Slide 7 of 28

Determine Objectives
Category Needs

Brand Purchase Intention

Positive
Negative
Brand
Attitude
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Brand Awareness
Slide 8 of 28

Design Message

Formulating the message will require

solving four problems:

AIDA Model

The marketer should start by

winning

the

attention

of

prospective buyers, then create

interesting the product, inspire
desire to buy and market he buyer
act favorably to purchase

Select Channels

Personal Communications

NonPersonal (Mass) Communications

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 11 of 28

Establish Budget
CompetitiveParity

Affordable Method

Objective-andTask

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Percentage-of-Sales
Slide 12 of 28

Message Source
Celebrity Characteristics
Expertise
Trustworthiness
Likeability

Copyright 2009 Pearson Education,

Inc. Publishing as Prentice Hall
17-13

Marketing Communications Mix

Advertising

Pervasive, Amplified, Control

Sales Promotion

Attention-getting, Incentive, Invitation

Public Relations

High Credibility, Reach, Dramatization

Events &
Experiences

Relevant, Engaging, Implicit

Direct & Interactive Customized, Up-to-date, Interactive

Word-of-Mouth

Influential, Personal, Timely

Sales Force

Personal interaction, Cultivation,

Response

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 14 of 28

Factors in Setting the Mix

Type of Product Market

Buyer-Readiness Stage

Product Life-Cycle Stage

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 15 of 28

e
r
u
g
Fi 7.4
1

Cost-Effectiveness / BuyerReadiness

Measuring Communication Results

Reach

Frequency

Awareness

Attitudes
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 17 of 28

e
r
u
g
Fi 7.5
1 Consumer

States for Two Brands

Integrated Marketing
Communications (IMC)

A method of carefully
coordinating
all
promotional activities to
produce a consistent,
unified message that is
customer focused.

IMC Popularity Growth

Proliferation of thousands of media choices.

Fragmentation of the mass market.

Slash of advertising spending in favor of

promotional techniques.

Coordination and Implementation

Stage 1
Stage 2
Stage 3

Promotio
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Direct
Sales

Slide 21 of 28

Developing Effective
Communications

It is not enough to develop a good product, price it attractively

and make it available to target customers. Companies also must
communicate with their customers to market their products.

A companys total marketing communication program is called

the promotion mix which consists of (1) advertising, (2) personal
selling, (3) sales promotion, (4) public relations and (5) direct
marketing.

Developing Effective Communications

Promotional techniques are used;

to make prospective customers aware of products in order to sharpen the

attractiveness and stimulate demand,

they provide information to help customers decide

generally provide incentives to purchase.

Nature of Each Promotional

Tool

Advertising; any paid form of nonpersonal presentation by an identified sponsor.

Personal selling; personal presentation by a firms sales force.

Sales Promotion; short-term incentives to encourage sales.

Public Relations; building good relationships with various publics by obtaining

favorable publicity.

Direct marketing; direct communications with individuals to obtain an immediate

response.

Promotional Tool

1. Advertising

Advertising is any paid form of nonpersonal presentation and

promotion of ideas, goods or services by an identified
sponsor.

Major media types are;

newspapers
television
direct mail
radio
magazines
outdoor

Promotional Tool

1. Advertising
Advantages

low cost per contact

ability to reach customers where and
when salespersons cannot
great scope of creative versatility and
dramatization of messages
ability to create images that salespersons
cannot - institutional advertising is a form
of advertising done to create a favourable
image of an organization.
nonthreatening nature of nonpersonal
presentation
potential to repeat message several times

Disadvantages
inability to close sales
advertising clutter
customers ability to ignore advertising
messages
difficulty getting immediate response or
action
difficulty measuring advertising
effectiveness
relatively high waste factor

Promotional Tool

Advertising Media
Traditional
Traditional
Advertising
Advertising Media
Media

Television
Radio
Newspapers
Magazines
Books
Direct mail
Billboards
Transit cards

Electronic
Electronic
Advertising
Advertising Media
Media

Internet
Computer modems
Fax machines

Promotional Tool

2. Sales Promotion

Sales

promotions

are

short-term

incentives to make an immediate

purchase or sales of a product or
service.

Advertising offers reasons to buy a

product or service, sales promotion
offers reasons to buy now.

Promotional Tool

2. Sales Promotion
Free samples
Contests
Premiums
Trade Shows
Popular Tools
For Consumer Sales
Promotion

Vacation Giveaways
Coupons

Promotional Tool

2. Sales Promotion
Advantages
generating immediate purchase in
a large extent
ability to provide quick feedback
ability to add excitement to a
service or product
flexible timing
efficiency

Disadvantages
short-term benefits
ineffective in building long-term
loyalty for company or brand
inability to be used on its own in
the long term without other
promotional mix elements
often misused for just short-term
benefits

Promotional Tool

3. Public Relations

Building good relations with the

companys various publics by
obtaining favourable publicity,
building up a good corporate
image and handling or heading
off

unfavourable

stories and events.

rumours,

Promotional Tool

3. Public Relations
Advantages

low cost
effective because they are not seen as
commercial messages
credibility
prestige and impressiveness of massmedia coverage
added excitement and dramatization
maintenance of public presence

Disadvantage

difficult to arrange consistently

lack of control

Promotional Tool

4. Personal Selling

Personal selling involves oral conversations. These are held, either by telephone
or face-to-face, between salespersons and prospective customers.

The people who do the selling go by many names: salespeople, sales

representatives, account executives, sales consultants, sales engineers, agents,
district managers, and marketing representatives.

The major roles of

are (1) representing
customers,
(2)
customers to the
producing customer
company profits.

the sales force

the company to
representing
company, (3)
satisfaction and

Promotional Tool

4. Personal Selling
Advantages
ability to close sales
ability to hold the customers attention
immediate feedback and two-way
communications
presentations tailored to individual
needs
ability to target customers precisely
ability to cultivate relationships
ability to get immediate action

Disadvantages
high cost per contact
inability to reach some customers as
effectively

Promotional Tool

5. Direct Marketing

Direct marketing is the new way of marketing communications. Here, the

company markets through various advertising media that interact directly
with consumers, generally encouraging the consumer to make a direct
response.

In

other

words,

direct

marketing

consists

of

direct

communications with carefully targeted consumers to obtain an immediate

response.

Thank you very

much.