Promotion and Integrated Marketing
Communication
Advertising
Public Relations/ Publicity
Personal Selling
Sales Promotion
Direct Marketing
Chapters 12, 13 & 14
MARKETING COMMUNICATIONS
• MARKETER INITIATED TECHNIQUES USED TO
SET UP CHANNELS OF INFORMATION AND
PERSUASION WITH TARGETED AUDIENCES
TO INFLUENCE ATTITUDES AND BEHAVIOR
“Promotion”
 Message and Media
• MARKETING COMMUNICATIONS MIX
“Tool Box” of Media and Techniques
 Integration and Coordination
 Based on Communications Model
MAJOR OBJECTIVES OF
MARKETING COMMUNICATIONS
Informing
Persuading
Reminding
MARKETING COMMUNICATIONS OBJECTIVES
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Increase Market Penetration
Develop Repeat Purchase Behavior
Establish Customer Relationships
Increase Rate of Consumption
Encourage Product Trial
Stimulate Impulse Buying
Stimulate Demand
Differentiate the Product
Establish a Product Image
Influence Sales Volume
Establish, Modify, or Reinforce Attitudes
Develop Sales Leads
Stimulate Interest
Establish Understanding
Build Support & Acceptance
ELEMENTS OF THE
MARKETING COMMUNICATIONS MIX
1. Advertising
5. Direct Marketing
4. Personal Selling
2. Public Relations
3. Sales
Promotion
Integrated Marketing Communications (IMC)
is the strategic integration of multiple means of
communicating with target markets
MARKETING COMMUNICATIONS PLANNING
Marketing Plan Review
Situation Analysis
Communications Process
Analysis
Budget Development
METHODS
Program Development
PUSH vs.
PULL
Integration & Implementation
Monitoring, Evaluating,
Controlling
Push and Pull Strategies
• Push strategy is directed toward the
channel members
– Provide incentives for those in the
distribution channels to buy the product
• Pull strategy is directed toward the
ultimate purchaser
– The focus is on creating demand at the
household or ultimate consumer level
Approaches to Determining the
Promotional Budget
• Percentage of sales
– A fixed amount of money per past or projected
sales
• Probably the most widely used as it is simple
• But, what about cause and effect?
• All available funds/All you can afford
– Budget what is left over for promotional
expenditures
• New companies often put all available funds into
promotion to penetrate the market
• But, you can miss opportunities or overspend
Approaches to Determining the
Promotional Budget
• Competitive parity/Follow the competition
– Adopt the average ratio for promotional expenses
to sales for the industry or main competitor; or the
same absolute amount as a competitor
• But, what if they do not know what they are doing and/or
strategies and tactics are different?
• Objective and task
– 1) Determine objectives; 2) Determine relationship
between expenditures and ability to achieve
objective; 3) Set a budget that allows the
achievement of these goals
Psychological Processes
• The high involvement decision process
Need -> search -> evaluation -> purchase -> outcomes
• The adoption process
Awareness -> interest -> evaluation -> trial -> adoption -> post-adoption
confirmation
• Buyer readiness states/Hierarchy of effects
Awareness -> knowledge -> liking -> preference -> conviction ->
purchase
• AIDA
Awareness -> Interest -> Desire -> Action
Selection of the Promotional Mix
• PRODUCT CHARACTERISTICS
– Industrial good/technical good
• Need personal selling; customers want to receive
information, inspect and compare the products
– Consumer package goods/frequently purchase
items
• Advertising and sales promotion to reach market
– Unit value
• Low cost must use mass media approaches, with high
unit cost personal selling is effective
– Customization
• Customized often requires personal selling
Selection of the Promotional Mix
• CUSTOMER CHARACTERISTCS
– Industrial versus consumer market
• Consumers are easier to reach (decision maker) through
media sources; industrial buyers typically have a more
formal buying process, requiring personal selling
– Number of customers
• For a small number of customers, personal selling can
play a much more important role
– Geographical dispersion
• Not only affects the type of promotional effort, but the
media choices
Advertising Defined
• ADVERTISING
– Any paid form of non-personal presentation
and promotion of ideas, goods, or services
by an identified sponsor
• Magazines, newspaper, outdoor posters, direct
mail, radio televisions, etc.
• Key issues
– The time or media space is paid for
– The sponsor is identified and has control over the
promotional activity
DEVELOPING AN
ADVERTISING CAMPAIGN
Design
Creative
Strategy
Select
Target
Market
Determine
Advertising
Objectives
Evaluate
Advertising
Effectiveness
Determine
Advertising
Budget
Select &
Schedule
Media
ADVERTISING STRATEGY
• MESSAGE STRATEGIES
 Objective vs. Subjective Messages
 Comparative Message Techniques
 Emotional Techniques: Mood, Fear, Humor
 Celebrity Endorsements vs. Non-Celebrity Images
• MEDIA STRATEGIES
 Broadcast: Television, Radio
 Print: Newspapers, Magazines, Journals
 Specialized: Outdoor, Transit, Direct Mail, Internet
ADVERTISING STRATEGY
• RELATIVE STRENGTHS AND WEAKNESSES OF
STRATEGIES
Effectiveness and Efficiency: Reach and
Frequency
Target Capabilities
Cost
Believability
Appropriateness for Message (Image, Details)
Reach & Frequency
• Reach: number of different target consumers
who are exposed to a message at least once
during a specific period of time
• Frequency: number of times an individual is
exposed to a given message during a specific
period of time
• Cost per contact: cost of reaching one
member of the target market
– Allows comparison across advertising strategy
vehicles
EVALUATING ADVERTISING
EFFECTIVENESS
Pretesting
Posttesting
Sales Effectiveness
Evaluations
Tools:
•Focus Groups
•Screening
•Persuasion Scores
Tools:
•Unaided Recall Tests
•Aided Recall Tests
•Inquiry Evaluations
Tools:
•Monitor Sales
PUBLIC RELATIONS
• EFFORTS TO IMPROVE AND MANAGE
RELATIONSHIPS WITH PUBLICS
Customers
Stock Holders
Community
Government
News Media
• PROACTIVE vs. REACTIVE
DuPont vs. Exxon
• PUBLICITY
Not Overtly Sponsored
High Credibility
PUBLIC RELATIONS
Public Relations Functions
Press
Relations
Advising
Management
Lobbying
Product
Promotions
Corporate
Communications
Personal Selling
• PERSONAL SELLING
– Oral presentation in a conversation with one or more
prospective purchasers for the purpose of making a
sale
– Personal selling represents the most popular
promotional effort in terms of financial expenditures
and number of people employed
– Personal Selling is:
• (1) Dyadic, (2) Flexible, (3) Focused (personalized), and (4)
Often results directly in a sale
• Other promotional elements move the customer toward the
sale, personal selling closes the sale
PERSONAL SELLING AND
SALES MANAGEMENT
• FUNCTIONS AND CONTRIBUTIONS OF
PERSONAL SELLING
“Boundary Spanner” Role, Relationship
Management (Trust)
Two-Way Information Channel (Diffusion
of Product and Market Information)
Facilitate Exchange
THE MARKETING-COMMUNICATIONS MIX:
Relative Emphasis in Consumer and Business Markets
BUSINESS MARKETS
CONSUMER MARKETS
EMPHASIS
EMPHASIS
ADVERTISING
PROMOTIONS
DIRECT MKT.
SALES
FORCE
COMPLEMENT
PERSONAL SELLING AND
SALES MANAGEMENT
• ROLES OF SALESPERSON
Psychologist
Consultant
Educator / Teacher
Problem Solver
Team Leader
• TYPES OF SELLING POSITIONS
New Business (Prospector)
Existing Business (Order Taker)
Detailing
Support (Marketing, Technical)
STEPS IN THE SELLING PROCESS:
A RELATIONSHIP APPROACH
• INITIATING RELATIONSHIPS
 Prospecting
 Pre-Call Planning
 Approach
• DEVELOPING CUSTOMER RELATIONSHIPS
 Sales Communications and Presentations
 Gaining and Managing Commitment
• ENHANCING CUSTOMER RELATIONSHIPS
 Follow-Up
 Support
• TRADITIONAL vs. RELATIONSHIP APPROACHES
• Consultative (needs-satisfaction) vs. Manipulative (product-focused)
SALES MANAGEMENT ISSUES
• RECRUITING AND HIRING
Difficult to Predict Success
• DEPLOYMENT
Territory Design
• AUTOMATION
Use of Technology to Link Buyer, Salesperson, and
Organizations (Customer Relationship
Management and Supply Chain Management)
• EVALUATION AND COMPENSATION
Outcome-Based vs. Behavior-Based
Sales Promotion
• SALES PROMOTION
– Those marketing activities - other than
advertising, public relations/publicity, and
personal selling - that stimulate consumer
purchasing and dealer effectiveness
• Displays, shows and exhibitions, coupons,
contests, samples
THE GROWTH IN SALES PROMOTION
Reasons for the Growth in Sales Promotion:
Consumer Factors
Accountability
Impact of Technology
Short-Term Focus
Increased Retail Power
OBJECTIVES OF CONSUMER PROMOTIONS
Encourage
Stimulate
Repurchase
Trial
Complementary
Increase
Products
Consumption
Support
Flexible Pricing
Neutralize
Impulse
Competitors
Purchasing
CONSUMER SALES PROMOTION
TECHNIQUES
Price Deals
Advertising
Specialties
Coupons
Rebates
Sampling
CrossPromotions
Premiums
Contests, Games,
Sweepstakes
OBJECTIVES OF TRADE PROMOTIONS
Avoid Price
Avoid Price
Reductions
Reductions
Gain/Maintain
Gain/Maintain
Distribution
Distribution
Defend Against
Defend Against
Competitors
Competitors
Influence
Influence
Reseller Promotion
Reseller Promotion
Increase Reseller
Increase Reseller
Inventory
Inventory
Influence
Influence
Price Discount
Price Discount
LIMITATIONS OF SALES PROMOTION
Cannot Reverse Declining Sales
Trend
Cannot Overcome Inferior
Product
May Encourage Competitive
Retaliation
May Hurt Profit
Direct Marketing
• Techniques used to get consumers to
make a purchase from their home,
office or other nonretail setting
– Direct mail, catalogs, mail order,
telemarketing, electronic retailing
TECHNIQUES OF DIRECT MARKETING
Electronic
Media
Direct Mail
Telemarketing
Print
Media
Direct Selling
Broadcast
Media