by Suwattana Sawatasuk

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The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships

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Advertising
Sales promotion
Personal selling
Public relations
Direct marketing

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Advertising: any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor i.e. broadcast, print, Internet, outdoor, and etc.
Sales promotion
Personal selling
Public relations
Direct marketing

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Advertising
Sales promotion: short-term incentives to encourage the purchase or sale of a product or service for a specific period of time i.e. discounts, coupons, displays, demonstrations, and etc.
Personal selling
Public relations
Direct marketing

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Discount and allowances in Pricing Strategy: offering to customer without specified time period
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Discount in Sales Promotion: offering to customer with condition and time frame to stimulate a short-term sales volume and more consumer demand in the short run

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Advertising
Sales promotion
Personal selling: personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships i.e. sales presentations, trade shows, and etc.
Public relations
Direct marketing

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Advertising
Sales promotion
Personal selling
Public relations: building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events i.e. press releases, sponsorships, special events,
Web pages, and etc.
Direct marketing

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Advertising
Sales promotion
Personal selling
Public relations
Direct marketing: direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships i.e. catalogs, telephone marketing, the Internet, mobile, and etc.

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To communicate to the target group a.
To inform: provide information about product/service or company to target groups such as marketing intermediaries, public, and consumer b.
To persuade: use the verbal/nonverbal communication in encouraging consumer buying decision c.
To remind: build brand awareness by using logo, branding, or feature of product/service or company to increase consumers' knowledge of a brand's existence

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To change consumer demand
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To correspondent with other marketing mixs
◦ If the product is in the introduction stage of
Product Life Cycle
 Promotion mix need to communicate to its target group in term of giving information than brand reminder. Sales promotion, such giveaway or discount, may be needed to stimulate the trade channel, retailer or wholesaler, to buy more products.

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The carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products

Advertising
Sales promotion
Consistent, clear, and compelling company and brand messages
Personal selling
Public relations
Direct marketing

Advertising
PR news
Event

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As each communication (advertising, personal selling, PR, direct marketing, sales promotion) often come from different parts of the company, if the company fails to integrate those various communication channels, it will result in blurred customer brand perceptions .

Sender Encoding Message
Media
Decoding Receiver
Noise
Feedback Response

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Sender
The party sending the message to another party
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Receiver
The party receiving the message sent by another party

Sender
The set of symbols that the sender transmits
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Message
Media
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The communication channels through which the message moves from sender to receiver
Receiver

Sender
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Encoding Message
Media
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Decoding Receiver
The process of putting thought into symbolic form
The process by which the receiver assigns meaning to the symbols encoded by the sender

Sender Encoding
The part of the receiver’s response communicated back to the sender
Feedback
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Message
Media
Decoding Receiver
Response
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The reactions of the receiver after being exposed to the message

Sender Encoding Message
Media
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Noise
Feedback
Decoding Receiver
The unplanned static or
Respons e distortion during the communication process, which results in the receiver’s getting a different message than the one the sender sent

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Identifying the target audience
Determining the communication objectives
Designing a message
Choosing media
Selecting the message source
Collecting feedback

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Who will be your target audience?
◦ Current users or potential buyers?
◦ Those who make the buying decision or those who influence it?

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What response marketers seek?
◦ Need to know where the target audience now stands and to what stage it needs to be moved.
◦ 6 Buyer-readiness stages
 The stages that consumers normally pass through on their way to purchase, including awareness, knowledge, liking, preference, conviction, and purchase
Awareness Purchase Knowledge
Info. about product
Liking
Feeling favorable about product
Preference
Preferring this brand to other brands
Conviction
Confidence in this brand, it is the best

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Message should get Attention , hold Interest , arouse
Desire , and obtain Action (AIDA model)
Must decide what to say ( message content say ( message structure and format )
) and how to

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Personal Communication Channels: Channels through which two or more people communicate directly with each other, including face to face, on the phone, through mail or e-mail, or even through an Internet
“chat”
◦ Word-of-mouth influence: personal commu. about a product between target buyers and neighbors, friends, family members, and associates.
◦ Buzz marketing: cultivating opinion leaders and getting them to spread info. about a product or service to others in their communities.
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Nonpersonal Communication Channels: Media that carry messages without personal contact or feedback, including major media, atmospheres, and events

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Messages delivered by highly credible sources are more persuasive for target audiences.
Picking the wrong spokesperson can result in embarrassment and tarnished image.
“Celebrity endorsement”

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After sending the message, the communicator mush research its effect on the target audience.
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Feedback on marketing communications may suggest changes in the promotion program or in the product offer itself.

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Affordable method
◦ Setting the promotion budget at the level management thinks the company can afford
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Percentage-of-Sales method
◦ Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price
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Competitive-Parity method
◦ Setting the promotion budget to match competitors’ outlay
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Objective-and-Task method
◦ Developing the promotion budget by:
 Defining specific objectives
 Determining the tasks that must be performed to achieve these objectives
 Estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget

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Push strategy: a promotion strategy that calls for using the
to push the product through channels.
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The producer
who in turn promote it to final consumers to create consumer demand for a product.

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Pull strategy: a promotion strategy that calls for
to buy the product, creating a demand vacuum that “pulls” the product through the channel
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If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.

Producer
Producer marketing activities
PUSH
(personal selling, trade promotion, other)
Retailers and wholesalers
Reseller marketing activities
PUSH
(personal selling, advertising, sales promotion, other)
Consumers
Producer
PULL
Retailers and wholesalers
PULL
Producer marketing activities
(Consumer advertising, sales promotion, other)
Consumers

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Push strategy involves convincing trade intermediary channel members to "push" the product through the distribution channels to the ultimate consumer via promotions and personal selling efforts.
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Pull strategy attempts to get consumers to
"pull" the product from the manufacturer through the marketing channel.

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Introduction: Ad and PR are good for producing high awareness. Sales promotion is useful in promoting early trial. Personal selling must be used to get trade to carry the product.
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Growth: Ad and PR continue to be powerful influences.
Sales promotion can be reduced because fewer incentives are needed.
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Mature: Sales promotion becomes important relative to ad.
buyers know the brand, and ad is needed only to remind them of product.
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Decline: Ad is kept at a reminder level, PR is dropped.
Salespeople give the product only a little attention. Sales promotions might continue to be strong.