1. MGT301 Principles of Marketing
Lecture-32

2. Summary of Lecture-31

4. Place….Distribution Channel….Marketing Channel

5. Right Place
Right Cost
Right Product
Right Time
Right Condition

6. Compete on value (not just price.) Save customers time and energy.
Make shopping fun.

8. Today’s Topics

10. Marketing Communications

11. Simple Marketing System
Communication
Product/Service
Producer/Seller
Consumer
Money
Feedback

13. Promotion and Its Goals

14. Informs
Builds Relationships
Reminds
Persuades

15. Informing
Persuading
Basic
Promotion
Objectives
Reminding

16. Why is it so Hard to Get A Consumer’s Attention?
Sensory overload (too many stimuli but limited info. processing ability)
Lack of consumer interest or motivation to process stimuli
Perceptual defense

18. The Marketing Communications Mix

19. Any Paid Form of Non-personal Presentation by an Identified Sponsor.
Advertising
The Marketing Communications Mix
This CTR relates to the material on pp
Personal Selling
Any Paid Form of Non-personal Presentation by an Identified Sponsor.
Personal Presentations by a Firm’s Sales Force.
Tools of The Marketing Communications Mix
Advertising. Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertising often utilizes mass media and may be adapted to take advantages of a given mediums strengths to convey information.
Sales Promotion. Sales promotions consist of short-term incentives to encourage purchase of sales of a product or service. Limited time offers or dated coupons are common sales promotions.
Public Relations. Public relations is an on-going process of building good relations with the various publics of the company. Key elements in the process are obtaining favorable publicity, building and projecting a good "corporate image," and designing an information support and response team to respond proactively to unfavorable rumors, stories, or events.
Personal Selling. Personal selling describes the use of oral presentations in a conversation with one or more prospective buyers for the purposes of making a sale. Personal selling combines product information and benefits with the interpersonal dynamics of the sales person. Good interpersonal relationship skills and effective oral communication skills are needed for personal selling.
Direct Marketing. Directed communications with carefully targeted individual consumers to obtain an immediate response.
Short-term Incentives to Encourage Sales.
Sales Promotion
Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity.
Public Relations
Direct Communications With Individuals to Obtain an Immediate Response.
Direct Marketing

20. Integrated Marketing Communications
The concept under which a Company Carefully Integrates and Coordinates Its Many Communications Channels to Deliver a Clear, Consistent, and Compelling Message About the Organization and Its Products.

23. Message Advertising Packaging Event Personal Marketing Selling Direct
Sales
Promotion
Public
Relations

24. The Communication Process

25. Source
Encoding
Message
Feedback
Noise
Receiver
Decoding
Channel 15

26. Encoding The Message

27. The Message Words Sounds Colors Space Themes Symbols Pictures Numbers
Gestures
Movement
The Message 16

28. DECODING Channel or Medium Words Sounds Colors Space Themes Symbols
Pictures
Numbers
Gestures
Movement
Channel or Medium
DECODING 17

29. OBJECTIVE
ENCODING = DECODING 18

30. Source
Encoding
Message
Channel
Decoding
Receiver
Noise
Feedback

31. Marketing Communications Objectives

32. Increase Market Penetration
Develop Repeat Purchase Behavior
Establish Customer Relationships
Increase Rate of Consumption
Encourage Product Trial
Stimulate Impulse Buying
Stimulate Demand
Differentiate the Product

33. Establish a Product Image
Influence Sales Volume
Establish, Modify, or Reinforce Attitudes
Stimulate Interest
Establish Understanding
Build Support & Acceptance

34. Steps in Developing Effective Communication

35. Awareness Knowledge Liking Preference Conviction Purchase
Step 1. Identifying the Target Audience
Step 2. Determining the Communication
Objectives (Buyer Readiness Stages)
Awareness
Knowledge
Liking
Preference
Conviction
Purchase

36. Step 3. Designing a Message
This CTR relates to the discussion on p
Message Content
Rational Appeals
Emotional Appeals
Moral Appeals
Choosing a Message
Marketers must make decisions in several areas when choosing or creating a message, include areas related to Message Content, Message Structure, and Message Format. Key message content decisions include one of three types of appeals:
Rational Appeals. These relate to the audience’s self-interest. Rational appeals are grounded in objective, logical reasons for purchasing a product such as improved performance, increased quality, better reliability, and increased productivity.
Emotional Appeals. These attempt to elicit either positive or negative feelings that will facilitate a purchase.
Moral Appeals. These are directed to the consumer’s sense of right and wrong and are often used in conjunction with the marketing of social causes. To be effective, marketers must very narrowly and very accurately target their consumer market. Moral appeals may work extremely well with groups that share the same morals, but will very likely outrage groups whose moral values differ from those in the message.
Message Structure
Marketers deal with three message structure issues.
Conclusions. First, marketers must decide whether or not to draw a conclusion in the message. Effectiveness depends upon both the nature of the information being communicated and the relative level of experience with the product concept on the part of the audience.
Argument Type. Second, marketers must decide on the type of argument to be used: One-sided arguments or Two-sided arguments .
Argument Order. Third, argument order must be decided. When many arguments are being used, placing the strongest argument either first or last can affect persuasiveness.
Marketers must also make message format decisions. Format issues involve sensory qualities, color in visual ads, sound in radio, and effective use of novelty and contrast in the message.
Message Structure
Draw Conclusions
Argument Type
Argument Order
Message Format
Headline, Copy, Color,
Words, & Sounds,
Body Language
Attention
Interest
Desire
Action

37. Personal Communication Nonpersonal Communication
Step 4. Choosing Media
Choosing Media
This CTR relates to the discussion on pp
Personal Communication
Channels
Choosing Media
Personal Communication Channels. Personal channels involve two or more people in direct communication. Strategic usage of personnel communication channels should consider the following influences:
Word of Mouth. Word of mouth is especially credible to consumers -- either positive or negative.
Opinion Leaders. Opinion leaders are people whose opinions on products are sought by others. Marketers can make use of and even create opinion leaders for consumer’s reference.
Discussion Note: Is it ethical to create opinion leaders, especially fictional ones? For example, Mr. Goodwrench of General Motors is not a real person and his genuine GM parts lack quality control as many of them aren’t really made by GM, but by overseas suppliers.
Nonpersonal Communication Channels. Nonpersonal channels are characterized by an impersonal method of communication, which lacks the face to face interactive nature of personal channels or feedback. Major forms of nonpersonal communication include:
Major media include print, broadcast and display.
Atmospheres are designed environments that create or reinforce the buyer’s leanings to buy a product.
Events are occurrences staged to communicate messages to target audience.
Nonpersonal Communication
Channels

38. Step 5. Selecting the Message Source Step 6. Collecting Feedback

39. Setting the Total Promotion Budget
Percentage-
of-Sales
Method
Affordable
Competitive-
Parity
Objective-
and-Task

40. Setting the Total Promotion Budget
This CTR relates to the material on pp
Setting the Total Promotion Budget
Affordable Method. This method involves setting a promotion budget based upon what management thinks the company can afford. This method often places promotion budget decisions in the hands of managers unfamiliar with what promotion does for the product. It also ignores the effect of promotion on sales volume and/or possible value-added to the product in the mind of the consumer by the promotion effort.
Percentage-of-Sales Method. This method sets promotion budgets at a certain percentage of current or projected sales or price of the product. While it does link sales and promotion together it tends to make promotion an effect of sales rather than a positive influence on it. Also, falling sales under this method will decrease promotional expenditures which might need to be increased to halt the sales decline.
Competitive-Parity Method. This method sets promotion budgets in line with what the competition spends on promotion. This "collective wisdom" philosophy suggests that management is unwilling or unable to decide what level of spending is needed to promote the product to the consumer.
Objective-and-Task Method. This method sets budgets by defining specific objectives, determining what tasks are necessary to meet them, estimates the cost of performing the tasks, and sets the promotion budget according to the estimates. In approach assumes that promotion is a resource to be allocated to meet company goals and managed proactively to compete successfully.

41. AIDA Model
Attention
Interest
Desire
Action

42. Promotion
Marketing activities used to communicate positive, persuasive info about an organization, its products and its activities to a target audience
Purpose: to directly or indirectly create sales, influence consumers.

44. Setting the Promotion Mix
Advertising
Reaches Many Buyers, Expressive
Impersonal
Personal Selling
Personal Interaction, Builds Relationships
Costly
Sales Promotion
Provides Strong Incentives to Buy
Short-Lived
Public Relations
Believable, Effective, Economical
Underused by Many Companies
Direct Marketing
Nonpublic, Immediate, Customized,
Interactive

45. Setting the Promotion Mix
This CTR relates to the material on pp
The Nature of Each Promotion Tool
Advertising. Advertising’s public nature helps legitimize the product. It also allows marketers to repeat the message to a wide audience. Large-scale campaigns communicate something positive about the seller’s size, popularity, and success. Advertising is also very expressive and can make use of powerful symbols and sensory appeals. Its shortcoming include expense, one-way communication, being impersonal, and lack of control over situational reception.
Personal Selling. Personal selling is the most effective promotion tool at certain stages in the buying process, especially in building preferences, convictions, and actions. The personal contact is two-way and allows adaptation to buyer reactions and the establishment of relationships. Personal selling is also the most expensive promotion tool and requires a long-term commitment to build an effective salesforce.
Sales Promotion. Sales promotion includes coupons, contests, cents-off deals, premiums, rebates, and other techniques designed to elicit a quick response. Sales promotions usually influence the timing of a purchase rather than the decision to purchase.
Public Relations. Public relations includes news stories, features, and reporting on company activities from objective and credible third-party sources. These events are perceived as more believable than company-controlled promotions. Difficulties include the lack of message content, format, and structure control over the public relations event. Further, public relations are generally under used by marketers both strategically and tactically.
Direct Marketing. Direct marketing includes such things as direct mail, telemarketing, electronic marketing, online marketing, and others.

46. Advertising
A paid form of non-personal communication about an organization and/or its products to a target audience through a mass medium.

47. Personal selling
The direct presentation of a product to a prospective customer by a representative of the selling organization.

48. Sales promotion
Demand-stimulating activity designed to supplement advertising and facilitate personal selling.

49. Public relations
A planned communication effort by an organization to contribute to generally favorable attitudes and opinions toward an organization and its products.

50. Direct Marketing
Direct connections with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationship

51. Relative Importance of Promotion Tools

52. Consumer Goods Business Goods Advertising Personal selling
Sales promotion
Personal selling
Publicity
Business Goods
Personal selling
Sales promotion
Advertising
Publicity

53. Changing Face of Marketing Communications

54. New Marketing Communications Realities
Improvements in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting
Marketers Have Shifted
Away From Mass
Marketing
Less Broadcasting

55. Enough for today. . .

56. Summary

59. Promotion and Its Goals
Builds Relationships
Persuades
Informs
Reminds

60. The Marketing Communications Mix

61. Any Paid Form of Non-personal Presentation by an Identified Sponsor.
Advertising
The Marketing Communications Mix
This CTR relates to the material on pp
Personal Selling
Any Paid Form of Non-personal Presentation by an Identified Sponsor.
Personal Presentations by a Firm’s Sales Force.
Tools of The Marketing Communications Mix
Advertising. Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertising often utilizes mass media and may be adapted to take advantages of a given mediums strengths to convey information.
Sales Promotion. Sales promotions consist of short-term incentives to encourage purchase of sales of a product or service. Limited time offers or dated coupons are common sales promotions.
Public Relations. Public relations is an on-going process of building good relations with the various publics of the company. Key elements in the process are obtaining favorable publicity, building and projecting a good "corporate image," and designing an information support and response team to respond proactively to unfavorable rumors, stories, or events.
Personal Selling. Personal selling describes the use of oral presentations in a conversation with one or more prospective buyers for the purposes of making a sale. Personal selling combines product information and benefits with the interpersonal dynamics of the sales person. Good interpersonal relationship skills and effective oral communication skills are needed for personal selling.
Direct Marketing. Directed communications with carefully targeted individual consumers to obtain an immediate response.
Short-term Incentives to Encourage Sales.
Sales Promotion
Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity.
Public Relations
Direct Communications With Individuals to Obtain an Immediate Response.
Direct Marketing

62. The Communication Process

63. Source
Encoding
Message
Channel
Decoding
Receiver
Noise
Feedback

64. Steps in Developing Effective Communication

65. AIDA Model
Attention
Interest
Desire
Action

66. Next….
Advertising

68. MGT301 Principles of Marketing
Lecture-32