Transcript Promotion Mix - Home

by Suwattana Sawatasuk
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The specific blend of promotion tools that the
company uses to persuasively communicate
customer value and build customer
relationships
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Advertising
Sales promotion
Personal selling
Public relations
Direct marketing
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Advertising: any paid form of nonpersonal
presentation and promotion of ideas, goods,
or services by an identified sponsor i.e.
broadcast, print, Internet, outdoor, and etc.
Sales promotion
Personal selling
Public relations
Direct marketing
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Advertising
Sales promotion: short-term incentives to
encourage the purchase or sale of a product
or service for a specific period of time i.e.
discounts, coupons, displays,
demonstrations, and etc.
Personal selling
Public relations
Direct marketing
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Discount and allowances in Pricing Strategy:
offering to customer without specified time
period
Discount in Sales Promotion: offering to
customer with condition and time frame to
stimulate a short-term sales volume and
more consumer demand in the short run
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Advertising
Sales promotion
Personal selling: personal presentation by the
firm’s sales force for the purpose of making
sales and building customer relationships i.e.
sales presentations, trade shows, and etc.
Public relations
Direct marketing
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Advertising
Sales promotion
Personal selling
Public relations: building good relations with
the company’s various publics by obtaining
favorable publicity, building up a good
corporate image, and handling or heading off
unfavorable rumors, stories, and events i.e.
press releases, sponsorships, special events,
Web pages, and etc.
Direct marketing
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Advertising
Sales promotion
Personal selling
Public relations
Direct marketing: direct connections with
carefully targeted individual consumers to
both obtain an immediate response and
cultivate lasting customer relationships i.e.
catalogs, telephone marketing, the Internet,
mobile, and etc.
1.
To communicate to the target group
a. To inform: provide information about
product/service or company to target groups such
as marketing intermediaries, public, and
consumer
b. To persuade: use the verbal/nonverbal
communication in encouraging consumer buying
decision
c. To remind: build brand awareness by using logo,
branding, or feature of product/service or
company to increase consumers' knowledge of a
brand's existence
To change consumer demand
2.
To correspondent with other marketing
mixs
3.
If the product is in the introduction stage of
Product Life Cycle
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Promotion mix need to communicate to its target
group in term of giving information than brand
reminder. Sales promotion, such giveaway or
discount, may be needed to stimulate the trade
channel, retailer or wholesaler, to buy more
products.
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The carefully integrating and coordinating the
company’s many communications channels to
deliver a clear, consistent, and compelling
message about the organization and its
products
Personal
selling
Advertising
Sales
promotion
Consistent,
clear, and
compelling
company and
brand messages
Direct
marketing
Public
relations
Event
Advertising
PR news
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As each communication (advertising, personal
selling, PR, direct marketing, sales
promotion) often come from different parts
of the company, if the company fails to
integrate those various communication
channels, it will result in blurred customer
brand perceptions.
Sender
Encoding
Message
Decoding
Media
Noise
Feedback
Response
Receiver
1
Sender
The party sending
the message to
another party
2
Receiver
The party
receiving the
message sent by
another party
3
Sender
Message
Receiver
Media
The set of
symbols that
the sender
transmits
4
The communication
channels through
which the message
moves from sender to
receiver
5
Sender
Encoding
6
Message
Decoding
Receiver
Media
The process of
putting
thought into
symbolic form
The process by which
the receiver assigns
meaning to the
symbols encoded by
the sender
Sender
Encoding
Message
Decoding
Receiver
Media
The reactions
of the receiver
The part of the
after being
exposed to the
message
receiver’s
response
communicated
back to the sender
Feedback
Response
8
7
Sender
Message
Encoding
Decoding
Receiver
Media
9
Feedback
Noise
The unplanned static or
distortion during the
communication
process, which results
Respons
in the receiver’s getting
e a different message
than the one the
sender sent
1.
2.
3.
4.
5.
6.
Identifying the target audience
Determining the communication objectives
Designing a message
Choosing media
Selecting the message source
Collecting feedback
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Who will be your target audience?
◦ Current users or potential buyers?
◦ Those who make the buying decision or those who
influence it?
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What response marketers seek?
◦ Need to know where the target audience now
stands and to what stage it needs to be moved.
◦ 6 Buyer-readiness stages
 The stages that consumers normally pass through on
their way to purchase, including awareness,
knowledge, liking, preference, conviction, and
purchase
Awareness
Knowledge
Liking
Preference
Conviction
Info.
about
product
Feeling
favorable
about
product
Preferring
this brand to
other brands
Confidence
in this
brand, it is
the best
Purchase
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Message should get Attention, hold Interest, arouse
Desire, and obtain Action (AIDA model)
Must decide what to say (message content) and how to
say (message structure and format)
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Personal Communication Channels: Channels through
which two or more people communicate directly with
each other, including face to face, on the phone,
through mail or e-mail, or even through an Internet
“chat”
◦ Word-of-mouth influence: personal commu. about a
product between target buyers and neighbors, friends,
family members, and associates.
◦ Buzz marketing: cultivating opinion leaders and getting
them to spread info. about a product or service to others in
their communities.
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Nonpersonal Communication Channels: Media that
carry messages without personal contact or feedback,
including major media, atmospheres, and events
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Messages delivered by highly credible
sources are more persuasive for target
audiences.
Picking the wrong spokesperson can result in
embarrassment and tarnished image.
“Celebrity endorsement”
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After sending the message, the
communicator mush research its effect on the
target audience.
Feedback on marketing communications may
suggest changes in the promotion program
or in the product offer itself.
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Affordable method
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Percentage-of-Sales method
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Competitive-Parity method
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Objective-and-Task method
◦ Setting the promotion budget at the level management thinks the
company can afford
◦ Setting the promotion budget at a certain percentage of current or
forecasted sales or as a percentage of the unit sales price
◦ Setting the promotion budget to match competitors’ outlay
◦ Developing the promotion budget by:
 Defining specific objectives
 Determining the tasks that must be performed to achieve these
objectives
 Estimating the costs of performing these tasks. The sum of these costs
is the proposed promotion budget
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Push strategy: a promotion strategy that calls
for using the sales force and trade promotion
to push the product through channels.
The producer promotes the product to
channel members who in turn promote it to
final consumers to create consumer demand
for a product.
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Pull strategy: a promotion strategy that calls
for spending a lot on advertising and
consumer promotion to induce final
consumers to buy the product, creating a
demand vacuum that “pulls” the product
through the channel
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If the strategy is successful, consumers will
ask their retailers for the product, the
retailers will ask the wholesalers, and the
wholesalers will ask the producers.
Producer
marketing
activities
Producer
PUSH
(personal selling,
trade promotion,
other)
Producer
PULL
Retailers
and
wholesalers
Reseller
marketing
activities
PUSH
Consumers
(personal selling,
advertising, sales
promotion, other)
Retailers
and
wholesalers
PULL
Producer marketing activities
(Consumer advertising, sales promotion, other)
Consumers
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Push strategy involves convincing trade
intermediary channel members to "push" the
product through the distribution channels to
the ultimate consumer via promotions and
personal selling efforts.
Pull strategy attempts to get consumers to
"pull" the product from the manufacturer
through the marketing channel.
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Introduction: Ad and PR are good for producing high
awareness. Sales promotion is useful in promoting early
trial. Personal selling must be used to get trade to carry
the product.
Growth: Ad and PR continue to be powerful influences.
Sales promotion can be reduced because fewer incentives
are needed.
Mature: Sales promotion becomes important relative to ad.
buyers know the brand, and ad is needed only to remind
them of product.
Decline: Ad is kept at a reminder level, PR is dropped.
Salespeople give the product only a little attention. Sales
promotions might continue to be strong.