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Marketing Communications

Promotion
Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.

Differential Advantage
High Product Quality

Rapid Delivery

Features that Provide Differential Advantage

Low Prices

Excellent Service

Unique Features

Promotional Mix
Combination of promotion tools used to reach the target market and fulfill Advertising the organizations Public Relations overall goals. Sales Promotion Personal Selling Public Relations Word-of-Mouth
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Advertising
Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

Advertising Media
Traditional Advertising Media Electronic Advertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Electronic mail Interactive video

Advertising
Advantages

Disadvantages

Reach large number of people Low cost per contact Can be microtargeted

Total cost is high

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.
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Publicity
Public information about a company, good, or service appearing in the mass media as a news item, which is free to the company.

Sales Promotion
Free samples Contests Premiums Trade Shows

Popular Tools for Consumer Sales Promotion

Vacation Giveaways Coupons

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Personal Selling
Planned presentation to one or more prospective buyers for the purpose of making a sale.

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Personal Selling
Traditional Selling Relationship Selling

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Characteristics of Advertising
Advertising
Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Indirect and non-personal Low Little Delayed One-way Yes Yes Fast Same message to all audiences
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Characteristics of Public Relations


Public Relations
Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Usually indirect, non-personal Moderate to low Little Delayed One-way No No Usually fast Usually no direct control
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Characteristics of Sales promotion


Sales Promotion
Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Usually indirect and non-personal Moderate to low Little to moderate Varies Mostly one-way Yes Yes Fast Same message to varied target
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Characteristics of Personal Selling


Personal Selling
Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Direct and face-to-face High Much Immediate Two-way Yes Yes Slow Tailored to prospect
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Goals and Tasks of Promotion


Informing Reminding

Target Audience

Persuading
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Product Life Cycle


Intro Stage Growth Stage Maturity Stage Decline Stage

Dollars

Product Category Sales 0

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Time

Goals and Tasks of Promotion


Informing
PLC Stages: Introduction Early Growth

Reminding
PLC Stages: Maturity

Target Audience

PLC Stages: Growth Maturity

Persuading
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Goals and Tasks of Promotion


Informative Objectives
Increase awareness Explain how product works Suggest new uses Build company image
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Goals and Tasks of Promotion


Persuasion Objectives
Encourage brand switching Change customers perception of product attributes Influence buying decision

Persuade customers to call


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Goals and Tasks of Promotion


Reminder Objectives
Remind customers that product may be needed
Remind customers where to buy product Maintain customer awareness

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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
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Product Life Cycle and the Promotional Mix


Sales ($)
Maturity

Introduction

Growth

Decline

Time
-Light Advertising -Heavy Ads -PR for Awareness -Advertising and PR for brand Loyalty -Personal Selling for Distribution -Reminder Ads -Ads & PR Decrease -Limited Sales Promotion -Personal Selling for 24 Distribution

-PreIntroduction Publicity -Sales Promotion for Trial

-Sales Promotion
-Personal Selling

Target Market Characteristics


FOR:

Widely scattered market Informed buyers Repeat buyers

Advertising Sales Promotion Less Personal Selling


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Type of Buying Decision


Routine
Advertising Sales Promotion Advertising Public Relations

Type of Buying Decision Affects Promotional Mix Choice

Not Routine or Complex

Complex

Personal Selling

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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
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