Communicating Customer
Value
Agenda
• The Promotion Mix • Promotion
• Integrated Marketing Budget/Mix
Communications
• Socially Responsible
• The Communication
Marketing
Process
Communication
• Effective Marketing
Communication
Promotional Mix
The five major promotional tools are:
Advertising
Sales Promotion
Personal Selling
Public Relations (PR)
Direct Marketing
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The New Marketing
Communication Model
Several major factors are changing of today’s marketing
communication
1. Consumers are changing
2. Marketing strategies are changing
3. Communication technology are causing remarkable
changes in the ways in which companies and customers
communicate with each other
New Marketing Communications
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Reach smaller consumers in more interactive way
This includes traditional mass media and wide variety
of more targeted, more personalized media
Integrated Marketing
Communications Strategy
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Recognize all touchpoints which
would allow the customer to
encounter the company and
brand
Goal is to deliver a consistent and
positive message through each
contact
Developing Effective Market
Communication
Steps to develop effective
communication
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Identify the target audience
Determine the communication objectives
Design a message
Choose media to send message
Select source
Collect feedback
Determining the Communication
objectives
Buyer-readiness stages
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Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Designing a Message
• Goals of a message: AIDA
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Grasp attention
Hold interest
Arouse desire
Obtain action
Designing a Message
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Message Content
o Rational appeal
o Emotional appeal
o Moral appeal
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Message Structure
o Draw conclusion or
leave it to the audience
o Present argument first
or last
o Admit only strengths or
presents strengths
while admitting faults
Choosing Media
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Must select channels of communication
Personal communication
o Word-of-mouth influence
o Buzz marketing
Nonpersonal Communication
o Major Media
o Atmosphere
o Events
Selecting Message Source
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Who is going to deliver the
message
Representation of brand
Usually well-known celebrities
or athletes
Red Bull uses athletes such as:
• Ryan Sheckler- Skate Boarder
• Jamie O’Brien- Surfer
• Travis Pastrana- Motocross
• Shaun White- Snowboarder
Collecting Feedback
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What was the effect on the target audience?
o Do they remember the message?
o How many people bought the product?
May suggest changes in promotion or product
Allows for company to strengthen
Selecting Total Promotion
Budget and Mix
Setting the Total Promotion Budget
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Affordable Method- Budget is what they think they can afford
Percentage-of-Sales Method- Budget is based at a percentage of current
or forecasted sales
Competitive-Parity Method- Budget is set to match competitor’s outlay
Objective-and-Task Method- Budget is set for what is wanting to be
accomplished
Commercial
http://www.youtube.com/watch?v=yRX1j
FEQApw
Shaping Overall Promotion Mix
Promotion Mix Strategies
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Push Strategy- “Pushing” product through
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Pull Strategy-
marketing channels to final consumers
Marketing activities are directed
towards final consumer
Socially Responsible Market
Communications
Advertising promotion
Sales Promotion
Personal Selling
Time for Discussion...
• What are the five promotional tools ?
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o Which one do you believe Red Bull lacks in?
How does Red Bull use the objective-task method
effectively?
Do you think the promotional program that Red Bull
used in its early days would be a successful strategy
for other companies? Why?
What strategy made the Red Bull energy drink so
successful?
What We Learned...