Chapter 13 & 18 Communication, Advertising, Promotion, and Sales

The Marketing Communication Process Sender (Encodes Message) Message Message Channel Receiver (Decodes Message) Noise Feedback Communication Outcome

Stages of the Negotiation Process The offer assess each parties’ needs and commitment Informal meetings trust-building among deal makers Strategy formulation review and assess factors to be negotiated Negotiations formal, informal, short or long Implementation

The Promotional Mix Advertising any form of non-personal communication Personal Selling the use of person-to-person communication Publicity non-paid, commercially significant news Sales Promotion Direct inducements of extra value or incentives Sponsorship Promoting interests of company by association

The Promotional Mix Push strategies Pull strategies focus on personal selling, considered essential in international marketing of industrial goods. Pull strategies depend on mass communications (advertising of consumer-oriented goods) to reach target audiences over long distribution channels. Integrated marketing communications coordinated use of a broad range of promotional tools to reach a target market.

Communications Tools Direct marketing Is intended to extract immediate and measurable responses to direct-response advertising, telemarketing, and direct selling. Direct mail depends on acquiring mailing lists that target the intended audience. Effective direct mailing require extensive planning of materials, format, and mode of mailing. The Internet can expand marketing communications world-wide with low costs.

Trade Show Participation Reasons for participation Customer can examine the product. Goodwill and contact cultivation. Locating a trade intermediary. Opportunity to meet government officials and decision makers. Opportunity for market research and collecting competitive intelligence. Exporters able to reach sales prospects in brief time period at reasonable cost per contact. Reasons for not participating High cost. Identifying the “right” trade shows to participate in. Coordination.

Personal Selling The most effective promotional tool. Costs per contact are high. Yields immediate customer feedback and sales results. Keys to personal selling Salesperson’ has the ability to adapt to the customer and the selling situation. Salesperson must have a thorough knowledge of the product or service.

Sales Promotions Couponing, sampling premiums, education and demonstration, point-of-purchase, direct mail. The impact of promotions on intermediaries must be carefully considered. Varying local regulations may prevent or limit the types and use of sales promotions. 50% off with Coupon

Sponsorships A company pays a fee to be associated with an event, team, athletic association, or sports facility Combines elements of PR and sales promotion Draws media attention

Product Placement Arranging to have the company’s products and brand names appear in TV shows, movies, and other types of entertainment Marketers also lend or donate products to celebrities and other public figures

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