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Week 9- 11-29-04
Integrated
Communication Strategy
and Promotion Tools
Communication
The process by which we
exchange or share
meanings through a common
set of symbols.
The Communication
Process
Noise
Sender
Encoding
Message
Message
Channel
Feedback
Decoding
Message
Receiver
Marketing Communications
Strategy
 Let’s communicate with customers…
Steps to follow:
 Identify Target audience, Expected Response (objectives),
Design the Message, Select the Media (importance of
continuity: INTEGRATION of the COMMUNICATION MIX),
Feedback.
One Main constraint: The budget.
 How much to spend?
Setting the Communication
Budget
Wide possible range
 Affordable method - ignores promotion
impact on sales
 Percent of sales method - not opportunity
based
 Competitive parity method - company needs
are individual
 Task and Objective Method




Define specific promotion objectives
Determine tasks needed to achieve
Estimate costs of tasks
Sum costs to set total promotion budget
Integrated Marketing
Communications
 The Need for Integrated Marketing
Communications
Conflicting messages from different sources or
promotional approaches can confuse
company or brand images
Marketing Communications
Mix
Advertising
 Any paid form of non-personal presentation and promotion
of ideas, goods, or services by an identified sponsor.
Personal Selling
 Personal presentation by a firm’s sales force for the purpose
of making sales and building customer relationships
Direct Marketing
 Direct Connections with carefully targeted individual
consumers to both obtain an immediate response and
cultivating lasting customers relationships.
Marketing Communications
Mix
Public Relations
 Building good relations with the company’s various publics by
obtaining favourable publicity, building a good corporate image
and handling stories or events.
Sales Promotion
Short-term incentives to encourage the purchase
or sale of a
product or service
Most impact when coordinated with
entire marketing mix.
Goals and Tasks of
Promotion
Informing
Reminding
Target
Audience
Persuading
Goals and Tasks of
Promotion
Informative Objective
 Increase awareness
 Explain how product works
 Suggest new uses
 Build company image
Goals and Tasks of
Promotion
Persuasion Objective
 Encourage brand switching
 Change customers’ perception of
product attributes
 Influence buying decision
 Persuade customers to call
Goals and Tasks of
Promotion
Reminder Objective
 Remind customers that product
may be needed
 Remind customers where to buy product
 Maintain customer awareness
On Line
http://www.tide.com
The AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message.
AIDA and the Promotional
Mix
Awareness Interest
Desire
Action
Advertising
Very
effective
Very
effective
Somewhat
effective
Not
effective
Public
Relations
Very
effective
Very
effective
Very
effective
Not
effective
Sales
Promotion
Somewhat
effective
Somewhat
effective
Very
effective
Somewhat
effective
Personal
Selling
Somewhat
effective
Very
effective
Very
effective
Very
effective
Sales ($)
Product Life Cycle and the
Promotional Mix
Maturity
Introduction
Growth
Decline
Time
Light
Heavy use of
Advertising; Advertising;
prePR for
introduction awareness;
publicity
sales
promotion
for trial
Advertising’
PR, brand
loyalty;
personal
selling for
distribution
Ads
decrease;
sales
promotion;
personal
selling;
reminder &
persuasive
AD/PR
decrease;
limited
sales
promotion;
personal
selling for
distribution
Push and Pull Strategies
Push strategy: trade promotions and
personal selling efforts push the product
through the distribution channels.
Pull strategy: producers use
advertising and consumer sales
promotions to generate strong
consumer demand for products.
Advertising
U.S. advertising spending exceeds $240
billion per year
Industry employs only 284,000
Ad budgets of some firms exceed over $2
billion per year—over
$6 million per day!
Advertising Strategy:
message strategy
Identify consumer benefits
Develop compelling creative
concept (The Big Idea)
Appeals - meaningful
credible & believable
Distinctively expressed
How to bring the message to Life:
message execution
Choose style - how it is said
 Slice of life
 Fantasy
 Musical…
Set tone - humour - Sexual Fear- other?
Select words - memorable and
attention-getting
Format elements - copy headline
- illustration
Selecting Advertising Media
Decide reach, frequency and
impact.
Choose media type
Select specific media vehicles
Decide on media timing
Set timing pattern of ads
Advertising Evaluation
Communication effects
Sales effects
Evaluation difficult especially sales
 Sales vs. ad expense
 Experiments
Sales-Promotion Objectives
Objectives
 More short-term sales
 Build long-term share
 Stimulate trial
 Switch from competitors
 Hold loyal customers
 Increase purchase
quantity
Consumer-Promotion Tools
Samples - trial amount of product
Coupons - certificate to give buyer a saving
Cash refund offers - reduction after purchase
Premiums - free or low-cost with purchase
Contests – Promotional events-chance to win
Public Relations:
potential activities
Press relations
Public affairs
Lobbying
Investor relations
Development
Public Relations:
major tools
 Company news
 Speeches
 Special events
 Written materials
 Audiovisual production
 Corporate identity
 Public service activities
 Company web sites
Steps in Sales Force
Management
Designing sales
force strategy
and structure
Recruiting and
selecting
salespeople
Training sales
people
Compensating
salespeople
Supervising
salespeople
Evaluating
salespeople
Managing the Sales Force:
sales-force structure
Organize by Territory
 defines job - travel
By Product
 expertise - overlap
Customer or Industry
 focus - one face
Complex structures
Managing the Sales Force:
sales force size
One of the most
productive assets
Also most expensive
Size impacts costs
Workload approach
 Account classes (A-B)
 Sales calls (24-48)
 Compute size
Recruiting and Selecting
Salespeople
Traits of the successful vary widely
 Enthusiasm, Persistence, Initiative, SelfConfidence, Job Commitment.
Selection procedures specific to
companies
Tests -personal characteristics references - previous employment interviewer’s views
Training Sales People
Training Goals
 Learn company and
assimilate culture
 Technical information
 Know customers and
industry competitors
 Average training
period four months
Compensating Salespeople
Design to motivate and
direct activities
 Straight salary
 Straight commission
 Salary plus bonus
 Salary & commission
 Salary for stable income
 Variable part for results
Supervising Salespeople
 Average face-to-face
selling time 30%
 Establish customer
targets and call norms
 Set time spent on
prospecting
 Annual call plan
 Time & duty analysis
 Salesforce automation
Motivating Salespeople
Organizational
Climate
 Opportunities
 rewards - value
Sales Quotas
 achievable
 stretch goals
Incentives
 sales meetings
 awards - contests
Evaluating Salespeople
Potential benefits of Evaluation
 Expectations clear
 Gather Information
 Helpful feedback
 Motivation
Evaluation
 Comparison with Peers
 Comparing with past sales
 Qualitative Evaluation
Steps in the Selling
Process
Prospecting
Salesperson Identifies Qualified Potential
Customers.
Qualifying
Process of Identifying Good Prospects
and Screening Out Poor Ones.
Preapproach
Salesperson Learns as Much as Possible
About a Prospective Customer Before
Making a Sales Call.
Approach
Salesperson Meets the Buyer and Gets
the Relationship Off to a Good Start.
Steps in the Selling
Process
Presentation
Salesperson Tells the Product “Story” to
the Buyer Using the Need-Satisfaction
Approach.
Handling
Objections
Salesperson Seeks Out, Clarifies, and
Overcomes Customer Objections to
Buying.
Closing
Salesperson Asks the Customer for an
Order.
Follow-Up
Occurs After the Sale and Ensures
Customer Satisfaction and Repeat
Business.