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SMM group assignment MEBRATU

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1. Introduction
• The marketing mix management paradigm has
played an influential role in the development
of marketing theory and practice; and it has
dominated marketing thought and research.
• Companies now need fresh thinking about how
to operate and compete in the new marketing
environment.
• Integrated marketing entails the co-ordination of all
the marketing activities, in order to maximize all the
joint effects.
• An integrated marketing communication strategy (as part
of integrated marketing) would thus involve choosing
marketing communication options that reinforce and
complement one another.
Introdu…
• The dramatic changes over the past years presented
marketers with new challenges on
how
to
effectively inform, persuade, stimulate and remind
consumers with the numbers and the diversity of
communication options available.
• The main purposes and ultimate role of
marketing communication are
– To inform, persuade or remind and
– To influence the behavior of the target market in
the purchase of products or loyalty towards the
brand.
Introdu…
• Marketers
can
use
the
marketing
communication strategy to convince the
selected target market(s) that the products
or services offered provide a significant and
competitive advantage over those of their rivals
• Integrated marketing communication (IMC) is
the
combination
of
all
marketing
communications efforts in an integrated way,
in order to maximize the communication
effects that promote company goals.
Introdu…
• The conceptualizing of IMC will be discussed in the
following sections mainly
– concepts related with strategies for developing promotional
perspectives,
– the process and advantages of integrated marketing
communications,
– steps in developing effective marketing communications,
– methods for setting promotional budgets and factors
considered to determine appropriate promotion mix.
2. Strategies for Developing Promotional
Perspectives
• The amount that a company may spend on its total
promotional effort, which consists of
 advertising,
personal selling, and
 sales promotion is not easy to determine, there are
no uniform standards to indicate how much should
be spent on promotion in a given product/market
situation.
• Promotion strategies are concerned with the planning,
implementation,
and
control
of
persuasive
communication with customers.
• These strategies may be designed around the 4PS or any
combination of these.
Strategies for Developing …….
• The distribution of the total promotional budget
among advertising, personal selling, and sales
promotion is another strategic matter.
• The formulation of strategies dealing with these two
issues will be discussed below as follows.
2.1 .Promotion Expenditure Strategy
• Promotion expenditure makes up one part of
the total marketing budget.
• The promotional expenditure vary from one
product/market situation to another.
2.1 .Promotion Expenditure …..
• Promotion induces competitors to react, but
there is no way to anticipate competitive
response accurately.
• Promotion Strategies Despite the difficulties
involved, practitioners have developed rules
of thumb for determining promotion
expenditures that are strategically sound.
• They either take the form of a breakdown
method or they employ the buildup method.
2.1 .Promotion Expenditure …..
Breakdown Methods: - under this method:
 The percentage-of-sales approach:
 Affordability approach:
 Return-on-investment approach:
 The competitive-parity approach:
Buildup Method: • Many companies have advertising, sales, and sales
promotion (merchandising) managers who report to the
marketing manager.
• The marketing manager specifies the objectives of
promotion separately for the advertising, personal
selling, and sales promotion of each product line.
• Ideally, the groundwork of defining objectives should
be done by a committee consisting of executives
concerned with product development, pricing
distribution, and promotion. Committee work helps
incorporate in puts from different areas; thus, a decision
about promotion expenditure is made in the context of
the total marketing mix.
• In practice, it may not always be easy to identify
the separate roles of advertising, personal selling,
and sales promotion because these three
methods of promotion usually overlap to some
degree.
• Once departmental objectives have been defined,
each area works out a detailed budget, costing
each item required to accomplish the objectives
of the program.
• As each department prepares its own budget, the
marketing manager may also prepare a summary
budget for each of them, simply listing the major
expenditures in light of the overall marketing
strategy.
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