Integrated Marketing Communication Strategy Chapter: 14 Lec 9c

Setting the Total Promotion Budget and Mix Affordable Method Setting the promotion budget at the level management thinks the company can afford -small business use this method Percentage-of-sales method Setting the promotion budget at a certain percentage of current or forecasted sales or a percentage of the unit sales price

Competitive Parity Method Setting the promotion budget to match competitors’ outlays Setting the Total Promotion Budget and Mix

Competitive- Parity Method

Objective and Task Method Developing the promotion budget by 1)Defining specific objectives 2)Determining the tasks that must be performed to achieve these objectives 3)Estimating the costs of performing these tasks The sum of these costs is the proposed promotion budget Setting the Total Promotion Budget and Mix

Shaping the Overall Promotion Mix Advertising Pros -Reach Masses -Can repeat message -Advertising products as more legitimate -Expressive

Advertising Cons -Impersonal -One way communication -Costly Shaping the Overall Promotion Mix

Personal Selling Pros -Persuasive -Friendly relationship can be built -Good salesperson can make the other person listen to him Cons -Long term commitment -Very expensive Shaping the Overall Promotion Mix

Sales Promotion -Offers strong incentives -Quick Response -Effects are short-lived Public Relations -Believable -Reliable Shaping the Overall Promotion Mix

Direct Marketing Less public Immediate and customized Interactive Shaping the Overall Promotion Mix

Promotion Mix Strategies 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

Pull Strategy A promotion strategy that calls for spending a lot on advertising and consumer promotion to include final consumers to buy the product, creating a demand vacuum that “pulls” the product, through the channel Promotion Mix Strategies

Push Versus Pull Promotion Strategy ProducerRetailers and wholesalers Consumers Producer Retailers and wholesalers Consumers

Socially Responsible Communication