Marketing Communications
Marketing Communications (Promotion)
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Definition (Promotion)
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Attempts by an organization to communicate with
its customers, suppliers, and publics
Definition of communication
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Sharing of ideas thoughts between two or more
parties
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Communication is most effectively done when both
parties are actively involved in the process
Marketing Communications (Promotion)
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Types of communication
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Advantages of interpersonal communication
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Interpersonal – direct communication between sender and
receiver
Mass – sender uses an independent source (e.g., the
mass media) to convey a message to multiple receivers
Immediate & direct feedback
Verbal and non-verbal feedback
Credibility
Ability to adjust message
Paradox of marketing communication
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Due to efficiency issues, marketers typically communicate
via less effective means
Marketing Communications (Promotion)
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Promotion mix
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Advertising – paid form of impersonal communication by
an identified sponsor
Sales promotion – short-term incentives used to
encourage immediate purchase
Public relations – building of positive relations with
various publics through communicative means (e.g.,
events, media coverage, etc.)
Direct marketing – direct communication with potential
customers to obtain an immediate response
Personal selling – process whereby a seller ascertains,
activates, and meets a customer’s needs and wants to the
mutual benefit of both the buyer and seller
Marketing Communications (Promotion)
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Developing an effective marketing communication
program
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Identify the target audience
Determine the communication objectives (in terms of the
target audience)
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Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Repeat purchase
Brand loyalty
Marketing Communications (Promotion)
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Developing an effective marketing
communication program (Cont’d)
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Design a message
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Choose the appropriate media
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Content
Structure
Format
Personal
Impersonal
Select the message source
Gather feedback
Marketing Communications (Promotion)
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Advantages of promotional tools
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Advertising – broad reach, expressive
Sales promotion – strong incentives to purchase,
but short-term
Public relations – believable and economical, but
marketers have limited control
Direct marketing – immediate and customized, but
often discounted by customers
Personal selling – interactive, responsive and
relationship building, but limited in reach and
expensive
Marketing Communications (Promotion)
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General promotion strategies
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Push
Pull
Integrated marketing communication
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Promotion mix
Marketing mix – e.g., higher price often suggests
higher quality
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Non-promotion tools do communicate
Marketing Communications (Promotion)
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Advertising
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Widely used -- $200 billion in expenditures
annually
Types
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Product/Brand – stimulates demand for a specific
product or brand
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Pioneering
Competitive/Comparative
Reminder
Institutional – create or reinforce a “corporate” image
Cooperative – sharing of an ad between two members
of a channel
Marketing Communications (Promotion)
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Comparative Ad from
Kelloggs (K-Plus)
Marketing Communications (Promotion)
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Brand (reminder)
advertising for Tums
Marketing Communications (Promotion)
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Chevron’s web-advertising
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Example of Institutional Advertising
Marketing Communications (Promotion)
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Advertising
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Functions
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Inform
Persuade
Remind
Components
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Message – the idea that is to be shared
Execution – how is message shared (message +)
Appeal – how to get audience involved (e.g., fear,
humor)
Media – how to reach audience (TV, Magazine)
Marketing Communications (Promotion)
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Heinz
A Reminder Ad
Marketing Communications (Promotion)
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Advertising
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Advertising effectiveness
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Does an ad meet its objectives?
Involves research
Needs to done – advertising is an investment
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It’s performance should be assessed
Marketing Communications (Promotion)
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Sales promotion
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Activities that provide a short-term incentive to buy by
improving customers’ perceptions of value (Quality / Price)
Objective – increase short-term sales
Consumer-oriented sales promotion
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Samples
Coupons
Refunds/Rebates
Premiums
Price packs
Contests/Sweepstakes
Point-of-Purchase (POP) displays
Marketing Communications
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A contest (type of sales
promotion) – attempts
to stimulate short-term
sales for Van de Kamp
Marketing Communications (Promotion)
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Example of mediadelivered coupon – a
type of consumeroriented sales
promotion
Marketing Communications (Promotion)
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Sales promotion
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Trade-oriented sales promotion (i.e., Trade Promotion)
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Promotion targeted at re-sellers and organizational customers
Objectives
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Persuade “trade” to carry brand
Improve brand’s shelf space/position
Promote a brand to final consumers
Part of a “Push” strategy
Tools
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Price-offs
Allowances (including “slotting fees”)
Discounts
Specialty advertising items
Trade show activities
Marketing Communications (Promotion)
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Specialty ads identify a corporate sponsor
Marketing Communications (Promotion)
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Public relations (PR)
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Communication designed to build and maintain a favorable
image for an organization, maintain the goodwill of its
publics and explain its goals and purposes
Type of PR
 Internal
 External
 PR Tools
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Web site
Press releases
Speeches – Corporate Speaker Groups
Corporate identity materials – Calendars, pens, etc.
Special events – ING Des Moines Marathon
Marketing Communications (Promotion)
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Direct marketing
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Definition
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Direct communication with potential customers to obtain
an immediate response
Often uses different media
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Mail
Telemarketing
Direct sales
Internet web-page
Marketing Communications (Promotion)
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Targeted Direct
Mail for Van Gogh
Exhibition – a
poster
Marketing Communications (Promotion)
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Personal Selling
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Definition
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Process whereby a seller ascertains, activates, and
meets a customer’s needs and wants to the mutual
benefit of both the buyer and seller
Marketing Communications (Promotion)
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Will those in the market
for a personal want to
get information from TV
commercials?
Personal selling is
needed to
communicate with
organizational
customers with regard
to such high-priced
products
Marketing Communications (Promotion)
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Advantages of personal selling
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One-on-one communication
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Tailoring of message (to the specific receivers)
Receive and react to immediate feedback (verbal and
non-verbal)
Flexibility of message (it can change depending on the
situation and needs of receiver)
Closure (ask for the “sell”)
Sales force may perform many functions
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Information provision
Information gathering (research)
Marketing Communications (Promotion)
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Disadvantages of personal selling
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Limited reach (typically reaches one customer)
Expense (estimates vary widely, but it is costly)
Less management control (sales managers are
not on every sales call)
When is personal selling best used?
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Want behavioral results (SALES)
High risk products (these customers want
personal attention)
Push strategy
Marketing Communications (Promotion)
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Role of sales force
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Links firm to customers – DEVELOP & MAINTAIN
RELATIONSHIPS
Selling process – multiple activities
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Prospecting
Qualifying
Approaching
Presenting/demonstrating
Handling objections
Closing
Following up
Marketing Communications (Promotion)
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Since selling involves
multiple activities, some
organizations (like
CDW) use a “team”
selling approach