Transcript MARKETING COMMUNICATION

MARKETING COMMUNICATION
Key Concepts
The Role of Promotion
Promotion
Communication by
marketers that informs,
persuades, and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response.
Promotion Strategy
Promotional
Strategy
A plan for the optimal
use of the elements of
promotion:
 Advertising
 Public Relations
 Sales Promotion
 Personal Selling
Competitive
Advantage
The Role of Promotion
in the Marketing Mix
Overall
Marketing
Objectives
Marketing Mix
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Product
Place
Promotion
Price
Target Market
Promotional Mix
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Advertising
Public Relations
Sales Promotion
Personal Selling
Promotion Plan
Competitive Advantage
High product quality
Rapid delivery
Low prices
Excellent service
Unique features
Goals and Tasks of Promotion
Informing
Reminding
Target
Audience
Persuading
Goals and Tasks of Promotion
Informing
Reminding
PLC Stages:
PLC Stages:
Introduction
Early Growth
Maturity
Target
Audience
PLC Stages:
Growth
Maturity
Persuading
Goals and Tasks of Promotion
Reminder Promotion
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Remind customers that product
may be needed
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Remind customers where
to buy product
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Maintain customer awareness
The AIDA Concept
AIDA
Concept
Attention
Interest
Desire
Action
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message.
The AIDA Concept
Action
Desire
Interest
Attention
Conative (doing)
Affective (feeling)
Cognitive (thinking)
The AIDA Concept
Push and Pull Strategies
PUSH STRATEGY
Manufacturer
promotes to
wholesaler
Wholesaler
promotes to
retailer
Retailer
promotes to
consumer
Consumer
buys from
retailer
Orders to manufacturer
PULL STRATEGY
Manufacturer
promotes to
consumer
Consumer
demands
product
from retailer
Retailer
demands
product
from wholesaler
Orders to manufacturer
Wholesaler
demands
product from
manufacturer
Factors Affecting Promotional Mix
The Promotional Mix
Promotional
Mix
Combination of
promotion
tools used to reach the
target market and fulfill
the organization’s
overall goals.
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Advertising
Public Relations
Sales Promotion
Personal Selling
The Promotional Mix
Impersonal, one-way
mass communication about
a product or organization
that is paid for by a
marketer.
Integrated Marketing
Communications
Integrated
Marketing
Communications
The careful coordination of all
promotional messages to assure
the consistency of messages at
every contact point where a
company meets the consumer.
IMC Popularity Growth
Proliferation of
thousands of media
choices
Fragmentation of the
mass market
Slash of advertising
spending in favor of
promotional techniques
that generate immediate
response
Advertising Media
New
Advertising
Media
Traditional
Advertising Media
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Television
Radio
Newspapers
Magazines
Books
Direct mail
Billboards
Transit cards
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Internet
Banner ads
Viral marketing
E- mail
Interactive video
Advertising
Advantages
 Reach large number
of people
 Low cost per
contact
 Can be microtargeted
Disadvantages
 Total cost is high
 National reach is
expensive for
small companies
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.
The Function of
Public Relations
Sales Promotion
Marketing activities—
other than personal
selling, advertising, and
public relations—that
stimulate consumer
buying and dealer
effectiveness.
Sales Promotion
Free samples
Contests
Premiums
Trade Shows
Vacation Giveaways
Coupons
End
Consumers
Company
Employees
Trade
Customers
Personal Selling
Planned presentation to
one or more prospective
buyers for the purpose
of making a sale.
Personal Selling
Traditional
Selling
Relationship
Selling
Marketing Communication
Categories of
Communication
Interpersonal
Communication
Mass
Communication
Marketing Communication
As Senders
As Receivers
 Inform
 Develop messages
 Persuade
 Adapt messages
 Remind
 Spot new
communication
opportunities
Marketing Communication
As Senders
As Receivers
 Inform
 Develop messages
 Persuade
 Adapt messages
 Remind
 Spot new
communication
opportunities
The Communication Process
Noise
Sender
Encoding
Message
Message
Channel
Feedback
Channel
Decoding
Message
Receiver
Characteristics of the Elements
in the Promotional Mix
Advertising
Communication Mode
Communication Control
Feedback Amount
Indirect and impersonal
Low
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
Characteristics of the Elements
in the Promotional Mix
Public Relations
Communication Mode
Communication Control
Feedback Amount
Usually indirect, impersonal
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
Characteristics of the Elements
in the Promotional Mix
Sales Promotion
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Usually indirect and impersonal
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
Characteristics of the Elements
in the Promotional Mix
Personal Selling
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Direct and face-to-face
High
Much
Immediate
Two-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
Slow
Tailored to prospect
MARKETING COMMUNICATION
IMPACT OF THE NEW MEDIA
INTERNET
BLOGGING
VIRAL MARKETING
The Impact of Blogging
Corporate
Blogs
Sponsored by a company or
one of its brands and
maintained by one or more of
the company’s employees.
Independent and not
Noncorporate associated with the
Blogs
marketing efforts of any
particular company or brand.
LO3
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
Sales ($)
Stage in the Product Life Cycle
Maturity
Introduction
Growth
Decline
Time
Light
Advertising;
preintroduction
publicity
Heavy use of
Advertising;
PR for
awareness;
sales
promotion
for trial
Advertising,
PR, brand
loyalty;
personal
selling for
distribution
Ads decrease;
sales
promotion;
personal
selling;
reminder &
persuasive
AD/PR
decrease;
limited
sales
promotion;
personal
selling for
distribution
Target Market Characteristics
For…
Advertising
Sales Promotion
Less Personal Selling
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Widely scattered
market
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Informed buyers
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Brand-loyal repeat
purchasers
Type of Buying Decision
Advertising
Routine
Sales Promotion
Neither Routine
nor Complex
Advertising
Public Relations
Personal Selling
Complex
Print Advertising