1. Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA
Chapter 14 Integrated Marketing Communications
The Promotional Mix
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
Notes:
Most promotional strategies use several components of promotion, which may include advertising, public relations, sales promotion, and personal selling to reach the target market.
The more emphasis is placed on a particular promotional element, the more important that element is considered to be in the overall promotional mix.
A discussion of each of the promotional mix elements follows.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

2. Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA
Chapter 14 Integrated Marketing Communications
The Promotional Mix
Advertising
Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.
Notes:
Almost all companies use some form of advertising, ranging from a newspaper classified ad to a multimillion-dollar campaign.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

3. 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.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

4. Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA
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
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

5. Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA
Chapter 14 Integrated Marketing Communications
Advertising Media
Traditional
Advertising Media
New Advertising
Media
Television
Radio
Newspapers
Magazines
Books
Direct mail
Billboards
Transit cards
Internet
Banner ads
Viral marketing
E- mail
Interactive video
Notes:
Media choices are plentiful and fragmented. In addition to the traditional advertising media, new methods are being used to reach consumers.
Internet advertising is being increasingly used as a vital component. Banner ads, viral marketing, and interactive promotions are all ways to reach the target audience.
Discussion/Team Activity:
Some consumers and lawmakers feel that consumer privacy is being violated with Internet advertising methods. Discuss this as a class. Refer to the “Ethics in Marketing” box.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

6. Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA
Chapter 14 Integrated Marketing Communications
Advertising
Advantages
Disadvantages
Reach large number of people
Low cost per contact
Can be micro- targeted
Total cost is high
National reach is expensive for small companies
Notes:
Advertising has the advantage of being able to reach larger numbers of people, but it can also be microtargeted to small groups.
Although the cost per contact in advertising is low, the total cost to advertise is typically very high. Only financially able companies can afford to advertise on a national basis.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

7. Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA
Chapter 14 Integrated Marketing Communications
Public Relations
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.
Notes:
Many organizations spend large amounts of money to build a positive public image.
Public relations help an organization communicate with stockholders, customers, suppliers, government, employees, and the community.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

8. The Function of Public Relations
Chapter 14 Integrated Marketing Communications
The Function of Public Relations
Maintain a positive image
Educate the public about the company’s objectives
Introduce new products
Support the sales effort
Generate favorable publicity
Notes:
Public relations is used to maintain a positive image, as well as the functions shown on this slide.
Nothing sells a product better than free publicity, but publicity should not be viewed as free. Preparing news releases, staging events, persuading media personnel to print or broadcast them costs money.
Discussion/Team Activity:
Discuss current examples of publicity regarding organizations.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

9. Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA
Chapter 14 Integrated Marketing Communications
Sales Promotion
Sales Promotion
Marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness.
Notes:
Sales promotion is generally a short-run tool used to stimulate immediate increases in demand.
Sales promotion is used to improve the effectiveness of other ingredients in the promotion mix, especially advertising and personal selling.
Online
Nabisco
Nabisco lists its promotions on its Web site. What do you think the advantages and disadvantages of this technique are? What changes, if any, would you suggest?
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

10. Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA
Chapter 14 Integrated Marketing Communications
Sales Promotion
Free samples
Contests
Premiums
Trade Shows
Vacation Giveaways
Coupons
End
Consumers
Company
Employees
Notes:
Sales promotion can be aimed at end consumers, trade customers, or a company’s employees.
A major promotional campaign might use several of the tools shown on this slide, along with the other elements of the promotion mix.
Discussion/Team Activity:
Discuss a few recent product releases. What sales promotion techniques were used to complement the other components of the marketing mix? What techniques make sales promotion efforts effective on college campuses?
Trade Customers
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

11. Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA
Chapter 14 Integrated Marketing Communications
Personal Selling
Personal
Selling
Planned presentation to one or more prospective buyers for the purpose of making a sale.
Notes:
Personal selling is a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other.
Both buyer and seller have specific objectives: the buyer may need to minimize cost or assure a quality product, while the salesperson may need to maximize revenue and profits.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

12. Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA
Chapter 14 Integrated Marketing Communications
Personal Selling
Traditional
Selling
Relationship
Selling
Notes:
Traditional methods of personal selling include a planned presentation to one or more prospective buyers. The seller tries to persuade the buyer to accept a point of view or take action. Frequently, the traditional view of personal selling creates a win-lose outcome at the expense of the buyer.
Relationship selling emphasizes a win-win outcome and the accomplishment of mutual objectives that benefit both buyer and salesperson in the long-term. The goal is a long-term, committed relationship based on trust and customer loyalty.
Personal selling is increasingly dependent on the Internet to attract potential buyers seeking information.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

13. Marketing Communication
Chapter 14 Integrated Marketing Communications
Marketing Communication
Categories of
Communication
Interpersonal
Mass
Notes:
Communication can be divided into two major categories:
Interpersonal communication is direct, face-to-face communication between two or more people.
Mass communication refers to communicating a concept or message to larger audiences, usually through a mass medium such as television or newspapers.
When a company advertises, it does not know the consumers personally, nor is it able to respond immediately to reactions to the advertising message. Instead the marketing manager must wait and see how people are reacting to the mass-communicated promotion. Any clutter from competitors’ messages or other distractions can reduce the effectiveness of the mass communication effort.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

14. Marketing Communication
Chapter 14 Integrated Marketing Communications
Marketing Communication
As Senders
As Receivers
Develop messages
Adapt messages
Spot new communication opportunities
Inform
Persuade
Remind
Notes:
Marketers are both senders and receivers of messages. As senders, marketers inform, persuade, and remind the target market to adopt courses of action.
As receivers, marketers attune themselves to the target market in order to develop and adapt messages, and spot new communication opportunities.
Marketing communication is a two-way process.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

15. Marketing Communication
Chapter 14 Integrated Marketing Communications
Marketing Communication
As Senders
As Receivers
Develop messages
Adapt messages
Spot new communication opportunities
Inform
Persuade
Remind
Notes:
Marketers are both senders and receivers of messages. As senders, marketers inform, persuade, and remind the target market to adopt courses of action.
As receivers, marketers attune themselves to the target market in order to develop and adapt messages, and spot new communication opportunities.
Marketing communication is a two-way process.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

16. The Communication Process
Chapter 14 Integrated Marketing Communications
The Communication Process
Noise
Sender
Encoding Message
Feedback
Channel
Message
Decoding
Receiver
Notes:
Marketing communication is a two-way process, as shown in Exhibit 14.2.
The sender originates the message.
Encoding is the conversion of the sender’s ideas and thoughts into a message, usually words or signs.
Transmission of a message requires a channel—some communication medium. Reception occurs when the message is detected by the receiver. Transmission may be hindered because of noise—anything that interferes with, distorts, or slows down the transmission of information.
Decoding is the interpretation of the language and symbols sent. Proper match between the message to be conveyed and the target market’s attitude is the job of the marketing manager. Differences in culture, age, social class, education, and ethnicity can lead to miscommunication. Marketers targeting consumers in foreign countries must also worry about translation and miscommunication issues.
The receiver’s response to a message is direct feedback to the source. Since mass communicators are cut off from direct feedback, they rely on market research or analysis of viewer perceptions for indirect feedback.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

17. Indirect and impersonal Same message to all audiences
Characteristics of the Elements in the Promotional Mix
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Advertising
Indirect and impersonal
Low
Little
Delayed
One-way
Yes
Fast
Same message to all audiences
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

18. Usually indirect, impersonal Usually no direct control
Characteristics of the Elements in the Promotional Mix
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, impersonal
Moderate to low
Little
Delayed
One-way No
Usually fast
Usually no direct control
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

19. Usually indirect and impersonal Same message to varied target
Characteristics of the Elements in the Promotional Mix
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 impersonal
Moderate to low
Little to moderate
Varies
Mostly one-way
Yes
Fast
Same message to varied target
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

20. Direct and face-to-face
Characteristics of the Elements in the Promotional Mix
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
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

21. MARKETING COMMUNICATION
IMPACT OF THE NEW MEDIA INTERNET BLOGGING VIRAL MARKETING
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

22. Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA
Chapter 14 Integrated Marketing Communications
The Impact of Blogging
Sponsored by a company or one of its brands and maintained by one or more of the company’s employees.
Noncorporate Blogs
Corporate
Blogs
Independent and not associated with the marketing efforts of any particular company or brand.
Notes:
The Internet and related technologies are having an impact on marketing communication including the promotion mix. The rise of blogging has created a new way for marketers to manage their image, connect with consumers, and generate product interest and desire.
LO3
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

23. Type of buying decision
Chapter 14 Integrated Marketing Communications
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
Notes:
Promotional mixes vary a great deal from one product and one industry to the next.
Advertising and personal selling are used to promote goods and services, supplemented by sales promotion. Public relations helps develop a positive image for the product and the organization. A firm may choose not to use all four promotional elements, or it may choose to use them in varying degrees.
This slide shows the factors affecting the promotion mix chosen by a firm. Subsequent slides describe the key points of each factor.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

24. Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA
Chapter 14 Integrated Marketing Communications
Stage in the Product Life Cycle
Light
Advertising;
pre-
introduction
publicity
Heavy use of
PR for
awareness;
sales
promotion
for trial
AD/PR
decrease;
limited
promotion;
personal
selling for
distribution
Ads decrease;
sales promotion;
personal selling; reminder &
persuasive
Advertising,
PR, brand
loyalty;
Introduction
Growth
Maturity
Decline
Sales ($)
Time
Notes:
The Product Life Cycle is a factor in designing a promotion mix, as shown in Exhibit 14.5.
In the introduction stage, the basic goal of promotion is to inform the target audience of product availability. Advertising and public relations inform the target audience, while sales promotion encourages early trial. Personal selling gets retailers to carry the product.
During the growth stage, advertising and public relations continue to be important, although sales promotion can be reduced because customers need fewer incentives to purchase. The promotional strategy is to emphasize the product’s differential competitive advantage. Persuasive promotion is used to build and maintain brand loyalty. Personal selling has succeeded in obtaining adequate distribution for the product.
In the maturity stage, competition becomes fiercer, and persuasive and reminder advertising are more strongly emphasized. Sales promotion comes back into focus to try to increase market share.
As the product enters the decline stage, all promotion, especially advertising, is reduced. Nevertheless, personal selling and sales promotion efforts may be maintained, particularly at the retail level.
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

25. Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA
Chapter 14 Integrated Marketing Communications
Target Market Characteristics
For…
Widely scattered market
Informed buyers
Brand-loyal repeat purchasers
Advertising
Sales Promotion
Less Personal Selling
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA

26. Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA
Chapter 14 Integrated Marketing Communications
Type of Buying Decision
Advertising
Sales Promotion
Routine
Personal Selling
Neither Routine
nor Complex
Public Relations
Print Advertising
Complex
Notes:
For a routine buying decision such as the purchase of toothpaste, the most effective promotional tools are advertising and especially sales promotion.
For buying decisions that are not routine or complex, advertising and public relationships help establish awareness.
In contrast, consumers making complex decisions need large amounts of information, and personal selling is the most effective tool. Print ads are also effective for conveying large amounts of information.
Discussion/Team Activity:
Consider recent purchases of routine and complex products. What promotion tool(s) were effective to reach the buyer and influence the purchase decision?
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Unit IV - Services Marketing - K.Mohan Kumar, AP/MBA