1 Marketing Communications

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

3 Differential Advantage Unique Features Excellent Service Low Prices Rapid Delivery High Product Quality Features that Provide Differential Advantage Advantage Features that Provide Differential Advantage Advantage

4 Promotional Mix Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. Advertising Public Relations Sales Promotion Personal Selling Public Relations Word-of-Mouth

5 Advertising Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

6 Advertising Media Traditional Advertising Media Traditional Advertising Media Electronic Advertising Media  Television  Radio  Newspapers  Magazines  Books  Direct mail  Billboards  Transit cards  Internet  Electronic mail  Interactive video

7 Advertising Advantages  Reach large number of people  Low cost per contact  Can be micro- targeted Disadvantages  Total cost is high

8 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.

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

10 Sales Promotion Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons Popular Tools for Consumer Sales Promotion Popular Tools for Consumer Sales Promotion

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

12 Personal SellingTraditionalSellingTraditionalSellingRelationshipSellingRelationshipSelling

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

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

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

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

17 Goals and Tasks of Promotion Informing Reminding Persuading Target Audience Target Audience

18 Product Life Cycle Time Dollars Product Category Sales Intro Intro Stage StageGrowth Maturity Decline Decline Stage Stage 0

19 Goals and Tasks of Promotion Informing Reminding Persuading Target Audience Target Audience PLC Stages PLC Stages: Introduction Early Growth PLC Stages: Growth Maturity PLC Stages: Maturity

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

21 Goals and Tasks of Promotion Persuasion Objectives  Encourage brand switching  Change customers’ perception of product attributes  Influence buying decision  Persuade customers to call

22 Goals and Tasks of Promotion Reminder Objectives  Remind customers that product may be needed  Remind customers where to buy product  Maintain customer awareness

23 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

24 Product Life Cycle and the Promotional Mix -Light Advertising -Pre- Introduction Publicity -Heavy Ads -PR for Awareness -Sales Promotion for Trial -Ads & PR Decrease -Limited Sales Promotion -Personal Selling for Distribution -Reminder Ads -Sales Promotion -Personal Selling -Advertising and PR for brand Loyalty -Personal Selling for Distribution Introduction Growth Maturity Decline Sales ($) Time

25 Target Market Characteristics FOR:  Widely scattered market  Informed buyers  Repeat buyers Advertising Sales Promotion Less Personal Selling

26 Type of Buying Decision Advertising Sales Promotion Type of Buying Decision AffectsPromotional Mix Choice Type of Buying Decision AffectsPromotional Mix Choice ComplexComplex RoutineRoutine Personal Selling Not Routine or Complex Not Routine or Complex Advertising Public Relations

27 Push and Pull Strategies Manufacturer promotes to wholesalerManufacturer wholesalerWholesaler retailerWholesaler retailerRetailer consumerRetailer consumerConsumer buys from retailerConsumer retailer PUSH STRATEGY (Office Depot and Office Max) Orders to manufacturer Manufacturer promotes to consumerManufacturer consumerConsumerdemandsproduct from retailer Consumerdemandsproduct Retailerdemandsproduct from wholesaler Retailerdemandsproduct Wholesalerdemands product from manufacturerWholesalerdemands manufacturer Orders to manufacturer PULL STRATEGY (Coke and Pepsi)