Download promotion/marketing communication

PROMOTION/MARKETING
COMMUNICATION
INTRODUCTION TO PROMOTION
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Building good customer relationships calls for more than
just developing a good product, pricing it attractively,
and making it available to target customers.
Companies must also communicate their value
propositions to current and prospective customers, and
what they communicate should not be left to chance.
 All
of their communications must be planned and blended into
carefully integrated marketing communication programs.

Good communication is crucial element in a company’s
efforts to build profitable customer relationships.
PROMOTION MIX/MARKETING
COMMUNICATION MIX
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a)
The company’s total promotion mix (marketing
communication mix) consists of the specific blend of
advertising, public relations, sales promotion, personal
selling and direct marketing tools that a company uses to
persuasively communicate customer value and build
customer relationships.
The five major types of promotion are:
Advertising—any paid form of non-personal
presentation and promotion of ideas, goods, or services
by an identified sponsor using tools like print, broadcast,
internet and outdoor.
PROMOTION MIX/MARKETING
COMMUNICATION MIX
b)
c)
Sales promotion—short-term incentives to encourage
the purchase of a product or service using tools such
as discounts, premium, coupons, displays and
demonstrations.
Public relations—building good relations with the
company’s various publics by obtaining favourable
publicity, building up a good corporate image and
handling or heading off unfavourable rumours, stories
and events.

This involves promotion tools such as press releases and special
events.
PROMOTION MIX/MARKETING
COMMUNICATION MIX
d)
e)
Personal selling—personal presentations by the firm’s
sales force for the purpose of making sales and
building customer relationships using promotion tools
like sales presentations, trade shows etc
Direct marketing—direct connections with carefully
targeted individual consumers to both obtain an
immediate response and cultivate lasting customer
relationships—use of mail, telephone, e-mail, internet,
direct response TV etc to communicate directly with
specific consumers.
PROMOTION MIX/MARKETING
COMMUNICATION MIX

Marketing communication goes beyond specific promotion
tools.
 The
product’s design, its price, the shape and colour of its
package, and the stores that sell it all communicate something
to the buyers.

The entire marketing mix—promotion, product, price and
place—must be coordinated for greatest communication
impact.
NEW MARKETING
COMMUNICATIONS REALITIES

Companies, in past decades, perfected the art of
mass marketing—selling highly standardised
products to masses of consumers—and developed
effective mass media communication techniques to
support the strategies.
 They
invested a lot of money in the mass media to reach
masses of consumers with a single ad.

Today marketing managers face
marketing communication realities:
some
new
NEW MARKETING
COMMUNICATIONS REALITIES
Consumers are changing.
a)
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They are better informed and more communication
empowered.
They can use internet and other technologies to seek out
information own their own rather than relying on market
supplied information.
They can easily connect with other consumers to exchange
brand related information
Changing Marketing strategies.
b)

Marketers are developing focused marketing programs
designed to build closer relationship with customers in
more narrowly defined micro-markets.
NEW MARKETING
COMMUNICATIONS REALITIES
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Vast improvements in information technology are speeding the
movement toward segmented marketing.
They can amass detailed customer information, keep closer track of
customer needs, and tailor their offerings to narrowly target groups.
Sweeping changes in communication technologies
cause remarkable changes in the ways in which
companies and customers communicate with each
other.
c)
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The new information and communication tools such as cell phones,
ipods, internet, satellite give companies new media for interacting
with targeted customers.
They also give consumers more control over nature and timing of
messages they choose to send and receive.
NEW MARKETING
COMMUNICATIONS REALITIES
Shift in marketing communication model as a result of
movements toward segmented marketing and
explosive developments ICT
d)
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The dominance of TV, magazine and other mass media is
declining.
Advertisers are now adding a broad selection of more
specialised and highly targeted media to reach smaller
market segments with more personalised messages.
The new media range from specialty magazines, internet
catalogs, e-mail, podcasts, cell phones. TV channels are on
internet, cell phones, ipods etc.
INTEGRATED MARKETING
COMMUNICATIONS
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The shift from mass marketing to targeted marketing, and
corresponding use of a larger, richer mixture of
communication channels and promotion tools, poses a
problem for companies.
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In the consumer’s mind, messages from different media and
different promotion approaches all become part of a single
message about the company.
Conflicting messages from different sources can result in
confused company images, brand positions and customer
relationship.
Companies often fail to integrate their various
communication channels—Mass media advertisements say
one thing, a price promotion sends a different signal and a
product label creates still another message etc.
INTEGRATED MARKETING
COMMUNICATIONS
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Companies now adopt the concept of Integrated Marketing
Communications
(IMC)—carefully
integrating
and
coordinating the company’s many communication channels to
deliver a clear, consistent and compelling message about the
organisation and its products.
IMC ties together all of the company’s messages and
images. The company’s advertising, personal selling, public
relations, direct marketing and sales promotion have the same
message, look and feel on TV, radio, print, e-mail, website etc
INTEGRATED MARKETING
COMMUNICATIONS
Advertising
Sales
Promotion
Consistent, clear and
compelling company
and product
messages
Direct Marketing
Personal
Selling
Public Relations
STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATIONS
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1)
2)
3)
4)
5)
6)
Integrated marketing communications involves identifying
the target audience and shaping a well-coordinated
promotion program to elicit the desired audience response.
The steps in developing an effective integrated
communications and promotion program involves:
Identifying the target audience
Determining the desired response
Designing or choosing a message
Choosing the media through which to send the message
Selecting the message source
Collecting feedback
STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATIONS
1)
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Identifying the target audience.
The audience may be potential buyers or current users,
those who make the buying decisions, or those who
influence it.
The audience may be individuals, groups, special publics
or the general public.
The target audience will affect the communicator’s
decisions on what, how and when it will be said; and who
will say it.
STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATIONS
2)
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Determining the desired response. This involves deciding
what response is sought.
The marketing communicator needs to know where the
target audience now stands and to what stage it needs to
be moved in the buyer readiness stages.
Buyer readiness stages are stages consumers normally pass
through on their way to making a purchase. The stages are
Awareness, Knowledge, Liking, Preference, Conviction and
Purchase.
The company must first build awareness and knowledge of
its products in a target market that is totally unaware of
the product or know only its name.
STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATIONS
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If the target consumers know the product, the marketing
communicator must build the feeling about the product.
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This will involve moving consumers through liking (feeling
favourable about the product), preference (preferring the
product to other products or brands) and conviction (believing
that the product is the best for them).
If some members of the target market are in conviction
stage, the company must lead them to take the final step
of purchase through special promotion prices or premiums.
Marketing communications alone can not create positive
feelings and purchases for the product. The product itself
must also provide a superior value for the customer.
STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATIONS
3)
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Designing or choosing a message. This involves
developing an effective message.
The message should get Attention, hold Interest, arouse
Desire and obtain Action— the AIDA model
The marketing communicator must decide what to say
(Message Content) and how to say it (Message Structure
and Format).
In the message content, the communicator has to figure out
an appeal or theme that will produce the desired
response.
There are 3 types of appeals: Rational, Emotional and
Moral.
STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATIONS
Rational appeals relate to the audience’s self interest and
show that the product will produce the desired benefits.
a)
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Examples are messages that show product quality, value or
performance
Emotional appeals attempt to stir up either negative or
positive emotions that can motivate purchase.
b)
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Communicators use such positive emotional appeals as love,
pride, joy and humour.
Communicators can also use negative emotional appeals such as
fear, guilt and shame in order to get people to do things they
should (brush their teeth, buy new tires) or to stop doing things
they shouldn’t (smoke, too much drinking, eat fatty foods)
STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATIONS
Moral appeals are directed to the audience’s sense of
what is right and proper.
c)
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a.
b.
They are often used to urge people to support such social
causes as a cleaner environment and aid to the needy, or
combat such social problems as drug abuse, discrimination,
spousal abuse etc.
Under message structure, the communicator must also
decide which of 3 ways to use to structure the message:
Whether to draw a conclusion or leave it to the audience
to do it.
Whether to present a one sided argument (mentioning
only product’s strengths) or two sided argument.
STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATIONS
c.
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Whether to present the strongest arguments first or
last.
Under message format, the marketing communicator
must decide on the headline, illustration, pictures,
shape, message size, position, colour, sounds, voices,
body language (facial expressions, gestures, dress,
posture, hairstyle) depending on whether it is a
print, radio or TV message.
STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATIONS
Choosing media. The marketing communicator must
select channels of communication.
There are two broad types of communication channels:
Personal Communication Channels—channels through
which two or more people communicate directly with
each other, including face to face, person to audience,
over the telephone, or through the mail or e-mail.
4)
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a)
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Examples include sales people, consumer advocates,
neighbours, friends, family members, opinion leaders
(people whose opinions are sought by others)
STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATIONS
b)
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Non-personal Communication Channels—are media that
carry messages without personal contact or feedback.
They include Major media (Print media—newspapers,
magazines, direct mail; Broadcast media—radio, TV;
Display media—billboards, signs, posters; and Online
media—online services, websites).
They also include events—staged occurrences that
communicate messages to target audiences. For example,
public relations departments arrange for press
conferences, grand openings etc.
STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATIONS
5)
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Selecting the message source.
The message’s impact on the target audience is affected
by how the audience views the communicator. Messages
delivered by highly credible sources are more
persuasive.
Many food companies promote to doctors, dentists,
nurses, and other health care providers to motivate these
professionals to recommend their products to patients.
Some companies try to influence the target audience by
hiring celebrity endorsers.
STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATIONS
6)
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Collecting feed back—researching the effect of sending
message on the target audience.
It involves asking the target audience members whether
they remember the message, how many times they say it,
what points they recall, how they felt about the message
and their past and present attitudes toward the product
and company.
The communicator also measures behaviour resulting from
the message—how many people bought the product,
talked to others about it or visited the store.
DETERMINING PROMOTION MIX
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Companies within the same industry differ greatly in the
design of their promotion mixes—some companies spend
more funds on advertising while others spend more funds
on personal selling and direct marketing.
One of the factors that influences the company’s promotion
mix is the nature of each promotion tool. Each promotion
tool has unique characteristics and costs.
DETERMINING PROMOTION MIX
Advertising—
It can reach masses of geographically dispersed buyers at a
low cost per exposure, and it enables the seller to repeat the
message many times. For example TV and Radio advertising.
Large scale advertising says something positive about the
seller’s size, popularity and success.
Consumers tend to view advertised products as more
legitimate because of advertising’s public nature.
Advertising is very expressive—it allows the company to
dramatise its products through the artful use of visuals, print,
sound and colour.
1.
DETERMINING PROMOTION MIX
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i.
ii.
Advertising can be used to build up a long-term image for
a product.
It can also trigger quick sales.
Advertising shortcomings:
It is impersonal and can not be as directly persuasive as
can company sales people— one way communication
with the audience, and the audience does not feel that it
needs to pay attention or respond.
Advertising can be very costly. For example TV and
Radio adverts.
DETERMINING PROMOTION MIX
Sales promotion includes a wide assortment of tools such
as contests or coupons, which have unique qualities.
They attract consumer attention, offer strong incentives to
purchase and can be used to boost sagging sales.
Sales promotions invite and reward quick response
2.
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advertising says “Buy our product”,
sales promotion says “Buy it now”.
Sales promotion effects are often short lived, however,
are not effective in building long run brand preference
and customer relationships.
DETERMINING PROMOTION MIX
3.
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4.
Public relations. It is very believable—news stories,
features, sponsorships and events seem more real and
believable to readers than ads do.
It can also reach many prospects who avoid sales people
and advertisements—the message gets to the buyers as
news rather than as a sales-directed communication.
Public relations can dramatise a company or product
Personal Selling. It is the most effective tool at certain
stages of the buying process, particularly in building up
buyer’s preference, conviction and actions.
DETERMINING PROMOTION MIX
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It involves personal interaction between two or more
people, so each person can observe the other’s needs and
characteristics and make quick adjustments.
Personal Selling also allows all kinds of relationships to
develop, ranging from matter-of-fact selling relationships
to personal friendships.
An effective sales person keeps the customer’s interests at
heart in order to build a long-term relationship by solving
customer problems.
The buyer usually feels a greater need to listen and
respond, even if the response is a polite.
DETERMINING PROMOTION MIX
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5.
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i.
Sales force requires a longer-term commitment than does
advertising—advertising can be turned on and off, but
sales force size is harder to change.
Personal selling is also the company’s most expensive
promotion tool.
Direct marketing. There are many forms of direct
marketing—direct mail and catalogs, telephone
marketing, online marketing etc.
All forms of direct marketing are:
Nonpublic—The message is normally directed to a
specific person.
DETERMINING PROMOTION MIX
Immediate and customised—Messages can be prepared
very quickly and can be tailored to appeal to specific
consumers.
Interactive—It allows a dialogue between the marketing
team and the consumer, and the messages can be
altered depending on the consumer response.
The other factor that influences the company’s promotion
mix is the promotion mix strategy:
ii.
iii.
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Push strategy—a promotion strategy that calls for using sales
force and trade promotions to push the product through
channels.
Pull strategy—a promotion strategy that calls for spending a
lot on advertising and consumer promotion to induce final
consumers to buy the product.
Promotion
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End of Lecture