Download Effective Promotion Means Effective Communication

EFFECTIVE PROMOTION MEANS
EFFECTIVE COMMUNICATION
Chapter 15
PROMOTION AS PART OF THE MARKETING
MIX

Promotion – any form of communication that a
company uses to inform, persuade, or remind
consumers about its products or services.
One of the most important tools for a company trying
to attract customers.
 How the company communicates with customers and
complements the other three marketing mix
elements.
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PROMOTION IS A FORM OF COMMUNICATION

Communication process – the transfer of a
message from a sender to a receiver (figure 15-2, page 428)
Sender – source of the message being sent, the who in
the communication process
 Message – what is being communicated
 Encoding – when the sender converts an idea into a
message that the receiver can understand
 Message channel – the vehicle by which the message
travels, how the message will be distributed

PROMOTION IS A FORM OF COMMUNICATION
Receiver – the person(s) to whom the message is
directed or any person who understands the message
that is sent.
 Decoding – the process by which the receiver
interprets the transmitted language and symbols to
comprehend the message
 Noise – any distracting information in the
transmission, the message channel, or the receiver’s
environment that may inhibit or distract from the
message
 Feedback – the receiver’s response to the message

THE ROLE OF COMMUNICATION IN
MARKETING
Before marketers begin a promotion program,
they should outline the goals of the program.
 Promotion fulfills three main roles for marketers:

Inform-by providing people with information they
need to make informed decisions, marketers hope
that consumers will decide to buy the product (this
role can sometimes overlap with or be combined the
role of persuading)
 Persuade-sometimes a company will need to make a
case for why a customer should buy its product.
 Remind-marketers want to remind customers that a
successful product exists and why people like it.

TYPES OF COMMUNICATION
Marketers study the communication process to
determine the types of communication necessary
for their products or services.
 Interpersonal Communication-any person-toperson exchange.

Greatest benefit is that it is a two-way conversation.
 Very specifically targeted, so it can be advantageous
when a salesperson is able to explain the differences
between products to help the customer make a
knowledgeable decision.
 Frequently used in business-to-business because a
professional sales staff will have client to manage
and be more responsive to their needs.
 Main weakness is cost-efficiency.

TYPES OF COMMUNICATION

Mass Communication-attempts to reach a wide
audience through mass media such as radio,
television, magazines and newspapers.
One-way flow of information and does not provide for
instant feedback.
 Limits how the message can be tailored for the
recipient.
 Marketers cannot be sure that it will reach all of the
intended audience and it may reach some people it is
not intended for.
 Strength is that it can be more cost-efficient because
the same type of promotion (ad) can be used over and
over.

TYPES OF PROMOTION

Advertising-any form of paid, nonpersonal
communication that uses mass media to deliver a
marketer’s message to an audience
Most popular and familiar form of promotion.
 Broadcast media-a signal is sent from a central transmitter
to receivers in a geographic area (television or radio)
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Print advertising-any paid message run in a magazine or
newspaper
Direct mail-any marketing message sent to an audience
through mail
Outdoor advertising-includes billboards, signs on buses,
posters, signage at sporting events, or any other space designed
for ads outside the home
Ambient advertising-any nontraditional medium in the
environment of the audience
Internet advertising-can be targeted by interest and location
and can provide marketers with instant feedback
TYPES OF PROMOTION

Advertising continued…

Advantages
Has the ability to reach a large audience, so it is an efficient
medium in terms of cost-per-viewer.
 Very controllable and repeatable, delivering the exact same
message again and again if necessary.
 Many forms are not limited to geography
 Has a great potential to move people emotionally

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Disadvantages
The overall cost can be prohibitively expensive, especially
for small companies.
 The impersonal nature of advertising
 It is very easy for customers to tune out or skip past ads

TYPES OF PROMOTION

Public Relations
Publicity-any nonpaid communication about a
product, service, company, or cause.
 Public Relations (PR)-the effort to reach consumers
by generating positive publicity.
 Although media coverage is free, companies have PR
departments or firms that identify media
opportunities.
 Sometimes PR is a response to negative publicity.

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May use public relations to control the amount of damage
done to its image.
TYPES OF PROMOTION
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Public Relations continued…
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Advantages
Very valuable because a third-party source such as a news
program is perceived as being more objective than a
commercial.
 It can relatively inexpensive.
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Disadvantages
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Hard to control.
TYPES OF PROMOTION

Personal Selling-person-to-person communication
with a potential customer in an effort to inform,
persuade, or remind the customer to purchase an
organization’s product or service.
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Most commonly used for business-to-business.
Other forms include retail store sales people, car
dealers, insurance agents, etc.
Types of products for which personal selling is
appropriate are usually complicated, expensive, and
full of features.
Advantages include personal contact and immediate
feedback.
Disadvantage is the per-person cost.
TYPES OF PROMOTION

Sales Promotion-any activity or material that
gives consumers a direct incentive to buy.
Common tactic when a company introduces a new
product and wants to entice consumers to try it or
increase short-term sales.
 Examples include price promotions through sales,
coupons, rebates, giveaways, free samples, free toy
with purchase.
 Advantages include generating short-term sales and
results are usually measurable.
 Disadvantages:

Builds customer relationships motivated by incentives
instead of brand preference.
 Cost of incentive and loss in profit because of the incentive
promotion.
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THE PROMOTIONAL MIX
Promotional Mix-the combination of advertising,
public relations, personal selling, and sales
promotion that marketers use to reach a target
market.
 Critical that the elements of the promotional mix
complement each other.
 A carefully planned promotional mix can
capitalize on the strength of each type of
promotion and reach customers from several
different angles to deliver on the promotional
objective.
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THE PROMOTIONAL MIX
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Promotional Objective
Serves 3 purposes for marketer: inform, persuade,
and remind.
 Different types of promotions are better suited for
certain objectives.
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Target Market
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It is critical to consider the target market in
formulating a promotional mix.
THE PROMOTIONAL MIX

Marketing Mix
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Company Philosophy
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Certain products are better served by certain types of
promotions.
Some companies believe in certain values that impact
the promotional mix.
Resources

Promotion can be expensive, and the marketer must
determine which elements will have the greatest
chance at achieving the company’s objectives for the
least amount of money.
PROMOTIONAL PLANNING
Promotional Plan-the blueprint for how the
elements of the promotional mix will work
together.
 Planning takes time, and most companies plan
well in advance to make sure their budgets are
used as efficiently as possible.
 Seven steps in promotional planning process:
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Research and Analyze the Market
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Used to gain understanding of market, identify strengths
and weaknesses, opportunities, and competitive threats.
Select the Target Market
Identify key characteristics of the target market and fully
understand their motivations.
 Allows the marketer to create a focused promotional
strategy.
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PROMOTIONAL PLANNING
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Seven Steps continued…
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Identify Promotional Objectives
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Set the Promotional Budget
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Balancing all the factors that affect the mix.
Implement the Promotional Plan
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The ideal promotional budget is set to fit the plan, not the other
way around.
Develop the Promotional Mix
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Define a realistic and measurable objective of what the
company wants to achieve with its promotional plan.
An activity schedule is developed, and decisions are made
determining when the various promotional efforts take place.
Evaluate the results

Marketers evaluate their promotional plan during and after
promotions.