Transcript Marketing Communications

Marketing
Communications
1
Promotion
Communication by marketers
that informs, persuades, and
reminds potential buyers of a
product in order to influence an
opinion or elicit a response.
2
Differential Advantage
High Product Quality
Rapid Delivery
Features
that Provide
Differential
Advantage
Low Prices
Excellent Service
Unique Features
3
Promotional Mix
Combination of promotion tools
used to reach the target market
and fulfill
Advertising
the organization’s
Public Relations
overall goals.
Sales Promotion
Personal Selling
Public Relations
Word-of-Mouth
4
Advertising
Impersonal, one-way
mass communication
about a product or organization
that is
paid for by a marketer.
5
Advertising Media








Traditional
Advertising Media
Electronic
Advertising Media
Television
Radio
Newspapers
Magazines
Books
Direct mail
Billboards
Transit cards
 Internet
 Electronic mail
 Interactive video
6
Advertising
Advantages

Reach large number
of people

Low cost per
contact

Can be microtargeted
Disadvantages

Total cost is high
7
Public Relations
The marketing function that
evaluates public attitudes,
identifies areas within the
organization that the public may
be interested in, and executes a
program of action to earn public
understanding and acceptance.
8
Publicity
Public information about a
company, good, or service
appearing in the mass media as a
news item, which is free to the
company.
9
Sales Promotion
Free samples
Contests
Premiums
Trade Shows
Popular Tools
for
Consumer Sales
Promotion
Vacation Giveaways
Coupons
10
Personal Selling
Planned presentation to
one or more prospective buyers
for the purpose
of making a sale.
11
Personal Selling
Traditional
Selling
Relationship
Selling
12
Characteristics of Advertising
Advertising
Communication Mode
Indirect and non-personal
Communication Control
Low
Feedback Amount
Little
Feedback Speed
Delayed
Message Flow Direction
One-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
Fast
Same message to all audiences
13
Characteristics of Public Relations
Public Relations
Communication Mode
Communication Control
Feedback Amount
Usually indirect, non-personal
Moderate to low
Little
Feedback Speed
Delayed
Message Flow Direction
One-way
Message Content Control
No
Sponsor Identification
No
Reaching Large Audience
Message Flexibility
Usually fast
Usually no direct control
14
Characteristics of Sales promotion
Sales Promotion
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Usually indirect and non-personal
Moderate to low
Little to moderate
Varies
Mostly one-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
Fast
Same message to varied target
15
Characteristics of Personal Selling
Personal Selling
Communication Mode
Direct and face-to-face
Communication Control
High
Feedback Amount
Much
Feedback Speed
Message Flow Direction
Immediate
Two-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
Slow
Tailored to prospect
16
Goals and Tasks of Promotion
Informing
Reminding
Target
Audience
Persuading
17
Product Life Cycle
Growth
Stage
Maturity
Stage
Dollars
Intro
Stage
Decline
Stage
Product
Category
Sales
0
18
Time
Goals and Tasks of Promotion
Informing
PLC Stages:
Introduction
Early Growth
PLC Stages:
Growth
Maturity
Reminding
PLC Stages:
Maturity
Target
Audience
Persuading
19
Goals and Tasks of Promotion
Informative Objectives
 Increase awareness
 Explain how product works
 Suggest new uses
 Build company image
20
Goals and Tasks of Promotion
Persuasion Objectives
 Encourage brand switching
 Change customers’ perception of
product attributes
 Influence buying decision
 Persuade customers to call
21
Goals and Tasks of Promotion
Reminder Objectives
 Remind customers that product
may be needed
 Remind customers where to buy product
 Maintain customer awareness
22
Factors Affecting the
Choice of Promotional Mix
Nature of the Product
Stage in PLC
Target Market Factors
Type of Buying Decision
Promotion Funds
Push or Pull Strategy
23
Sales ($)
Product Life Cycle and the
Promotional Mix
Maturity
Introduction
Decline
Growth
Time
-Light
Advertising
-Heavy Ads
-PR for
Awareness
-PreIntroduction
Publicity
-Sales
Promotion
for Trial
-Advertising
and PR for
brand
Loyalty
-Personal
Selling for
Distribution
-Reminder
Ads
-Sales
Promotion
-Personal
Selling
-Ads & PR
Decrease
-Limited
Sales
Promotion
-Personal
Selling for
24
Distribution
Target Market Characteristics
FOR:

Widely scattered
market

Informed buyers

Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
25
Type of Buying Decision
Routine
Type of
Buying Decision
Affects
Promotional
Mix Choice
Advertising
Sales Promotion
Advertising
Not Routine
or Complex
Public Relations
Complex
Personal Selling
26
Push and Pull Strategies
PUSH STRATEGY (Office Depot and Office Max)
Manufacturer
promotes to
wholesaler
Wholesaler
promotes to
retailer
Retailer
promotes to
consumer
Consumer
buys from
retailer
Orders to manufacturer
PULL STRATEGY (Coke and Pepsi)
Manufacturer
promotes to
consumer
Consumer
demands
product
from retailer
Retailer
demands
product
from wholesaler
Wholesaler
demands
product from
manufacturer
Orders to manufacturer
27