Transcript Module 8

Module 8
Integrating the Promotional Mix
Kotler’s Chapters 18, 19, and 20
Chapter 18: Managing Integrated
Marketing Communications
• Learning Objectives
• 1. Describe the elements in the
communication process.
• 2. Discuss and apply the eight steps in
developing effective communications.
• 3. Describe and apply the promotional tools
and the factors involved in determining the
communication mix.
Chp 18/Obj 1: Describe the elements in
the communication process.
• Marketers need to consider all brand contact as a
communication opportunity. Figure 18-1 (p. 551).
• 2 major parties: sender and receiver.
• 2 major communication tools: message and
media.
• 4 major communication functions: encoding,
decoding, response, and feedback. The encoding
and decoding process must mesh.
• 1 problem element – noise of random and
competing messages that can interfere with
intended communication.
Chp 18/Obj 1: Describe the elements in
the communication process.
• 3 reasons why target audience may not get the
message intended (deal with perceptions).
– 1. Selective Attention – people bombarded by
messages (estimated 1600 commercial messages a day
with only 80 noticed)
– 2. Selective Distortion – people hear what fits in with
their belief system.
– 3. Selective Retention – only a small amount of
communication makes it to LT memory.
Chp 18/Obj 2: Discuss and apply the eight
steps in developing effective communications.
• 5 Elements of Marketing Communications
• 1. Advertising – paid form of nonpersonal communication
by an identified sponsor
• 2. Sales Promotion – ST incentives to encourage trial or
purchase
• 3. Public Relations and Publicity – nonpaid
communication to promote an image or product
• 4. Personal Selling – face-to-face interaction with a
prospect for the purpose of making presentation, answering
questions, and making a sale
• 5. Direct Marketing – use of mail, phone, fax, e-mail or
Internet to communicate directly with/solicit a direct
response from customers.
Chp 18/Obj 2: Discuss and apply the eight
steps in developing effective communications
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1. Identify target audience
2. Determine communication objectives
3. Design the message
4. Select the communication channel
5. Establish the total communications budget
6. Decide on communications mix
7. Measure the communications’ result
8. Manage the integrated marketing
communication process
Chp 18/Obj 2: Discuss and apply the eight
steps in developing effective communications
• 1. Identify target audience
– Need a clear idea of target market as this influences
what, how, when, where, and to whom to say it.
– Image analysis - determining familiarity, favorability
along key dimensions is valuable.
• 2. Determine communication objectives
– Cognitive (think- awareness and knowledge)
– Affective (feel – liking preference, and conviction)
– Behavioral (do - purchase); Hierachy of effects model.
Chp 18/Obj 2: Discuss and apply the eight
steps in developing effective communications
• 3. Design the message – what to say, how to say it
logically, how to say it symbolically, and who
should say it
– Message Content – rational, emotional, moral
– Message Structure – 1sided (strongest argument first)
vs. 2sided (strongest argument last)
– Message Format – everything must help make the
central point from the font chosen to the voice used
– Message Source- credibility comes from expertise,
trustworthiness, and likeability
Chp 18/Obj 2: Discuss and apply the eight
steps in developing effective communications
• 4. Select the communication channel
– Personal Communication Channels – advocate
(salespeople), expert (independent), social
channels (ex. friends, word-of-mouth key)
– Nonpersonal Communication Channels – media
(ex. newspapers), atmosphere (ex. packaged
environment), and events (ex. grand openings)
• 5. Establish total communications budget
– Best method is Objective and Task (determine
objectives and then what will cost to meet it)
Chp 18/Obj 2: Discuss and apply the eight
steps in developing effective communications
• 6. Decide on communications mix
– Advertising, Sales Promotion, PR/Publicity,
Personal Selling, or Direct Marketing
• 7. Measure the communications’ result
– What impact did firm make on target audience?
Were the objectives met?
Chp 18/Obj 2: Discuss and apply the eight
steps in developing effective communications
• 8. Manage the integrated marketing
communication process (IMC)
– IMC – a concept of marketing communications planning that
recognizes the added value of a comprehensive plan that evaluates
the strategic roles of a variety of communications disciplines and
combines these to provide clarity, consistency, and maximum
communications’ impact through the seamless intergation of
discrete messages (i.e make sure everyone on the same page and
working together).
– Firms need a consistent, coordinated plan for dealing with a
fragmented, complicated, sophisticated marketplace.
Chp 18/Obj 3: Describe and apply the
promotional tools and the factors involved in
determining the communication mix
• There are five promotional tools that Marketers
can combine to meet their objectives. Each of
these tools have its own unique characteristics and
costs.
– 1.
Advertising – ex. Banner ads
• Advertising works in the long term to build an image for a
product. It is a non-personal public presentation that allows a
firm to amplify/dramatize their message to persuade
consumers. It aids in reaching a geographically dispersed
audience. May not have an impact in the short run and hard to
gauge consumers’ reaction due to impersonal nature of ads.
Chp 18/Obj 3: Describe and apply the
promotional tools and the factors involved in
determining the communication mix
• 2. Sales Promotion – ex. Coupons
– Works in the short-term to get a quick response from
the buyer. Can help with communication and provides
an incentive or invitation to buy now. May hurt image
in LR as train consumers to buy on deal.
• 3. Public Relations/Publicity – ex. Release
– Is more credible than ads and can catch buyers off
guard (is it part of the news rather than a commercial)
and can dramatize a firm/product. Control though may
be an issue (may be negative).
Chp 18/Obj 3: Describe and apply the
promotional tools and the factors involved in
determining the communication mix
• 4. Personal Selling
– May be most effective tool at later stages of the buying
process (ex. conviction). Involves an immediate and
interactive response that can develop into a relationship
with the buyer. Expensive and must be done well.
• 5. Direct Marketing – includes direct mail,
telemarketing, Internet marketing
– Is nonpublic, customized, up-to-date, and interactive.
The better the database, the better the results - an opt-in
database may have better response rates than opt-out.
Chp 18/Obj 3: Describe and apply the
promotional tools and the factors involved in
determining the communication mix
• Factors in setting the communication mix
– Type of Product Market
• Consumer marketers spend most on sales promotion and
advertising, while business marketers spend most on personal
selling and sales promotion.
– Push versus Pull Strategy
• Push focuses on trade while pull focuses on final consumer.
– Buyer-Readiness Stage and Product-Life Cycle Stage
• Advertising and PR most important in awareness building.
Personal Selling can help with comprehension, conviction and
closing the sale. Sales promotion can help close the sale.
– Company Market Rank – advertising more effective for
market leaders while sales promotion may work best
for smaller competitors.
Chapter 19: Managing Advertising,
Sales Promotion, Public Relations
• Learning Objectives
• 1. Discuss and apply the five major
decisions involved in developing and
managing an advertising program.
• 2. Describe the purpose and decisions
involved with sales promotion and public
relations.
Chp 19/Obj 1: Discuss and apply the five
major decisions involved in developing and
managing an advertising program.
• 1. Setting the advertising objective - needs
to be specific and definable
– If target market unaware - need to inform
– If target aware - need to persuade
– If target already customers - need to remind
• 2. Deciding on the advertising budget
– Amount needed depends on stages in PLC, current
market share levels, competition and clutter, advertising
frequency needed, and product substitutability.
Chp 19/Obj 1: Discuss and apply the five
major decisions involved in developing and
managing an advertising program.
• 3. Choosing the advertising message
– Message generation
• Develop a number of approaches to communicate a
key benefit; costly to generate lots of approaches
– Message evaluation and selection - what to say
• Focus on one strong selling proposition - research
which approach works best to convey that
– Message execution - how to say it; style, tone, words, format
• Everything in ad must fit together; creativity needed
– Social responsibility review - not illegal or offensive
Chp 19/Obj 1: Discuss and apply the five
major decisions involved in developing and
managing an advertising program.
• 4. Choosing the media - determine how many
exposures needed, what media is most cost-effective
– Reach - # exposed to ad at least once
– Frequency - # of times that person exposed to ad (need
at least 3, some suggest need 5-9 exposures)
– Impact - qualitative value of an exposure
– Choosing among major media types (see 19-1, p. 588)
– Selecting specific vehicles - what media does target use
– Deciding on media timing - when and how often
– Deciding on geographical allocation - national or local
Chp 19/Obj 1: Discuss and apply the five
major decisions involved in developing and
managing an advertising program.
• 5. Evaluating advertising effectiveness
– Communication effectiveness - copy testing
• Variety of means to pre and post test how message
interpreted; measure recognition, recall,
physiological reactions
– Sales effectiveness
• Analyze historical and experimental sales data in an
effort to pinpoint the impact of different levels of
advertising expenditures.
Chp 19/Obj 2: Describe the purpose and
decisions involved with sales promotion
and public relations
• Sales Promotion - offer an incentive to buy
– Purpose - focus on trade, then consumer
• Use it to build relationships with suppliers and improve their
performance, to motivate and improve performance of sales
force, and to stimulate trial of their product.
– Major Decisions
• Establishing objectives; Selecting consumer, trade, and
business-sales force tools (Tables 19.3, 19.4, 19.5); Develop
the Program (budget, size of incentive, conditions for
participation, duration of the program, distribution vehicle,
and timing of the program); Pre-test Program; Implement
/control program; and Evaluate results.
Chp 19/Obj 2: Describe the purpose and
decisions involved with sales promotion
and public relations
• Public Relations - promote/protect image
– Purpose - proactive and reactive
• PR departments proactively develop ways to improve the
image of the firm, build relationships, and promote specific
products. Also help firm react when faced with negative
publicity or requests for information.
– Major Decisions
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Establish the marketing objectives
Choose messages and vehicles - get media coverage
Implement the plan
Evaluate results in terms of exposures, impact and sales.
Chapter 20: Managing the Sales
Force
• Learning Objectives
• 1. Describe and apply the issues involved
in designing and managing the sales force.
• 2. Describe the principles of personal
selling. Be sure to include the major steps
in selling.
Chp 20/Obj 1: Describe and apply the
issues involved in designing and
managing the sales force
• Step 1-3 deal with designing sales force
• 1. Determine sales force objectives/strategy
– Activities include prospecting, targeting time,
communicating, selling, servicing, information
gathering (research) and/or allocating products.
– Options include sales rep, sales team, conference
selling and seminar selling. Can be direct (inside and
field) or contractual (ex. manufacturers’ rep)
• 2. Determine sales force structure
– Territorial, product, market, and complex
– Which structure best depends on market, environment.
Chp 20/Obj 1: Describe and apply the
issues involved in designing and
managing the sales force
• 3. Determine sales force size/compensation
– Determine number of reps needed by dividing
the total number of annual calls needed for the
all clients divided by the average number of
calls a rep can make annually
– Compensation needs to address how to utilize
fixed, variable, expense allowance, and benefit
components.
• Steps 4-8 deal with managing sales force
Chp 20/Obj 1: Describe and apply the
issues involved in designing and
managing the sales force
• 4. Recruit and select sales reps
– 20% turnover on average. Sales rep must have
empathy and ego drive.
• 5. Train sales reps
– Need to know company (products, systems, objectives),
customers, competitors, how to make effective sales
presentations, and field procedures and responsibilities.
• 6. Supervise sales reps
– Set performance norms and goals.
– Provide support in terms of guidance, motivation,
information technology, and time management.
Chp 20/Obj 1: Describe and apply the
issues involved in designing and
managing the sales force
• 7. Motivate sales reps
– Being a sales rep is a tough job.
– Sales quotas tied to compensation.
– Supplementary motivators such as sales
meetings, contests, bonuses, and rewards
• 8. Evaluate sales reps
– Need to determine source of information and
how will do a formal evaluation. Must be fair
and consistent, rep shouldn’t be surprised.
Chp 20/Obj 2: Describe the principles of
personal selling. Be sure to include the
major steps in selling.
• Professionalism - Salespeople must know how to
transform prospects into customers, to identify customer
needs and to produce effective solutions.
• Negotiation - Can negotiate only when a zone of
agreement exists between buyer and seller (i.e. range of
outcomes in which both parties benefit). Need to
formulate a negotiation strategy.
• Relationship Marketing - Build LT profitable
relationships that emphasize problem solving and win/win.
Have to focus on customer and their needs.
Chp 20/Obj 2: Describe the principles of
personal selling. Be sure to include the
major steps in selling.
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Prospecting and qualifying - good leads
Preapproach - learn about prospect
Approach - get off to a good start
Presentation and demonstration
– Best to get customer talking, work to solve their problems.
• 5. Overcoming objections - psychological and logical
• 6. Closing - size up situation, assess customer and determine
best method to get customer to take the final step
• 7. Follow up and maintenance - LT relationship
Module 8 Conclusion
• Effective communication with customers is key. But this
communication must be carefully planned and coordinated
in order to serve its purpose (meet objectives).
• There are five key communication tools in the promotional
mix: advertising, sales promotion, personal selling, public
relations, and direct marketing. Firms need to determine
how to use and combine these to meet their objectives
given their internal and external environment.
• Firms need to focus on how promotion can help build LT
relationships with customers. Promotion can be too
expensive if it is always aimed at finding new buyers.
• Any questions?