Transcript CISMPromotion

Integrated Promotion
Decisions
The best product at the right price
in the right channel may not sell if
customers don’t know it exists.
What are the tools to develop this
final element of the marketing mix?
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
The promotion mix
Advertising
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Personal selling—A process of helping and persuading one or more prospects to purchase or to act
on any idea through the use of an oral presentation.
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Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating
premiums, trade shows, trade-ins, and exhibitions.
Public relations—Non-paid non-personal stimulation of demand for a product, service, or business
unit by planting significant news about it or a favorable presentation of it in the media.
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Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary
salespeople, samples, and telemarketing. Can be face-to-face or via telephone.
Sales promotion—Incentives designed to stimulate the purchase or sale of a product, usually in the
short term.
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Examples: print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store
displays, posters, motion pictures, Web pages, banner ads, and e-mails.
Examples: Newspaper and magazine articles/reports, TV and radio presentations, charitable
contributions, speeches, issue advertising, and seminars.
Used together in a well planned an coordinated manner, and targeted at all stakeholders -- not just
consumers -- these tools can be used to develop an integrated marketing communications plan.
Exhibit 14.2
Decision Sequence for Developing Promotion Mix
Define the audience to be targeted
(1)
Set the promotional objectives
(2)
Set the promotion budget
(3)
Design the promotional mix
(4)
Evaluate the results
(5)
How do we decide
whom is to be targeted?
Segmentation decisions ( as discussed earlier) are
especially important to the marketing communications
effort because they identify who the target market is.
Several products today are aimed at target audiences
based on a combination of these criteria. For example,
the audience for the Economist magazine, or a teen
music magazine.
Which elements of the promotion
mix are primary? When? Which
often play supporting roles?
In practice, either advertising or personal selling
generally plays a dominant role in the promotion mix,
with sales promotion and/or publicity playing supporting
roles. Advertising is generally dominant when a pull
strategy is used; personal selling is generally dominant
when a push strategy is used.
Exhibit 14.4
Comparing the Merits of the Promotion Mix Elements (Part 1)
Promotion mix
Element
Amount of
Information to be
Communicated
Credibility
Control
over the
Message
Cost to
reach one
customer
Strategic
suitability
Advertising
Varies: little
information in a
radio or a TV ad,
to lots on a
website
Low
Good
Low
Well-suited
to a Pull
Strategy
Personal
Selling
Lots of information
Depends on
the credibility
of the
company and
the
personality
and sales
skills of the
salesperson
Poor, but
training
helps
Very high
in
developed
countries,
can be low
elsewhere
Well-suited
to a Push
Strategy
Exhibit 14.4
Comparing the Merits of the Promotion Mix Elements (Part 2)
Promotion
mix Element
Amount of
Information to be
Communicated
Credibility
Control
over the
Message
Cost to
reach one
customer
Strategic
suitability
Sales
Promotion
Virtually no
information
Not
Applicable
Good
Low and
Selfliquidating:
generally
pays for
itself as the
product is
purchased
Consumer
promotion supports
a pull strategy.
Trade supports a
push strategy
Public
Relations
Lots of information
High
Poor
Very low or
nil
Supports both pull
and push strategies