1. Promotion and Integrated Marketing Communication
Advertising Public Relations/ Publicity Personal Selling Sales Promotion
Direct Marketing
Chapters 12, 13 & 14

2. MARKETING COMMUNICATIONS
MARKETER INITIATED TECHNIQUES USED TO SET UP CHANNELS OF INFORMATION AND PERSUASION WITH TARGETED AUDIENCES TO INFLUENCE ATTITUDES AND BEHAVIOR
“Promotion”
Message and Media
MARKETING COMMUNICATIONS MIX
“Tool Box” of Media and Techniques
Integration and Coordination
Based on Communications Model

3. MAJOR OBJECTIVES OF MARKETING COMMUNICATIONS
Informing
Persuading
Reminding

4. MARKETING COMMUNICATIONS OBJECTIVES
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
Establish a Product Image
Influence Sales Volume
Establish, Modify, or Reinforce Attitudes
Develop Sales Leads
Stimulate Interest
Establish Understanding
Build Support & Acceptance

5. ELEMENTS OF THE MARKETING COMMUNICATIONS MIX
1. Advertising
2. Public Relations
5. Direct Marketing
3. Sales
Promotion
4. Personal Selling
Integrated Marketing Communications (IMC)
is the strategic integration of multiple means of communicating with target markets

6. MARKETING COMMUNICATIONS PLANNING
Marketing Plan Review
Situation Analysis
Communications Process
Analysis
Budget Development
Program Development
Integration & Implementation
Monitoring, Evaluating,
Controlling
METHODS
PUSH vs.
PULL

7. Push and Pull Strategies
Push strategy is directed toward the channel members
Provide incentives for those in the distribution channels to buy the product
Pull strategy is directed toward the ultimate purchaser
The focus is on creating demand at the household or ultimate consumer level

8. Approaches to Determining the Promotional Budget
Percentage of sales
A fixed amount of money per past or projected sales
Probably the most widely used as it is simple
But, what about cause and effect?
All available funds/All you can afford
Budget what is left over for promotional expenditures
New companies often put all available funds into promotion to penetrate the market
But, you can miss opportunities or overspend

9. Approaches to Determining the Promotional Budget
Competitive parity/Follow the competition
Adopt the average ratio for promotional expenses to sales for the industry or main competitor; or the same absolute amount as a competitor
But, what if they do not know what they are doing and/or strategies and tactics are different?
Objective and task
1) Determine objectives; 2) Determine relationship between expenditures and ability to achieve objective; 3) Set a budget that allows the achievement of these goals

10. Psychological Processes
The high involvement decision process Need -> search -> evaluation -> purchase -> outcomes
The adoption process Awareness -> interest -> evaluation -> trial -> adoption -> post-adoption confirmation
Buyer readiness states/Hierarchy of effects Awareness -> knowledge -> liking -> preference -> conviction -> purchase
AIDA Awareness -> Interest -> Desire -> Action

11. Selection of the Promotional Mix
PRODUCT CHARACTERISTICS
Industrial good/technical good
Need personal selling; customers want to receive information, inspect and compare the products
Consumer package goods/frequently purchase items
Advertising and sales promotion to reach market
Unit value
Low cost must use mass media approaches, with high unit cost personal selling is effective
Customization
Customized often requires personal selling

12. Selection of the Promotional Mix
CUSTOMER CHARACTERISTCS
Industrial versus consumer market
Consumers are easier to reach (decision maker) through media sources; industrial buyers typically have a more formal buying process, requiring personal selling
Number of customers
For a small number of customers, personal selling can play a much more important role
Geographical dispersion
Not only affects the type of promotional effort, but the media choices

13. Advertising Defined ADVERTISING
Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor
Magazines, newspaper, outdoor posters, direct mail, radio televisions, etc.
Key issues
The time or media space is paid for
The sponsor is identified and has control over the promotional activity

14. DEVELOPING AN ADVERTISING CAMPAIGN
Evaluate
Advertising
Effective-ness
Select &
Schedule
Media
Determine
Budget
Objectives
Select
Target
Market
Design
Creative
Strategy

15. ADVERTISING STRATEGY MESSAGE STRATEGIES
Objective vs. Subjective Messages
Comparative Message Techniques
Emotional Techniques: Mood, Fear, Humor
Celebrity Endorsements vs. Non-Celebrity Images
MEDIA STRATEGIES
Broadcast: Television, Radio
Print: Newspapers, Magazines, Journals
Specialized: Outdoor, Transit, Direct Mail, Internet

16. ADVERTISING STRATEGY RELATIVE STRENGTHS AND WEAKNESSES OF STRATEGIES
Effectiveness and Efficiency: Reach and Frequency
Target Capabilities
Cost
Believability
Appropriateness for Message (Image, Details)

17. Reach & Frequency
Reach: number of different target consumers who are exposed to a message at least once during a specific period of time
Frequency: number of times an individual is exposed to a given message during a specific period of time
Cost per contact: cost of reaching one member of the target market
Allows comparison across advertising strategy vehicles

18. EVALUATING ADVERTISING EFFECTIVENESS
Pretesting
Posttesting
Sales Effectiveness
Evaluations
Tools:
Focus Groups
Screening
Persuasion Scores
Unaided Recall Tests
Aided Recall Tests
Inquiry Evaluations
Monitor Sales

19. PUBLIC RELATIONS
EFFORTS TO IMPROVE AND MANAGE RELATIONSHIPS WITH PUBLICS
Customers
Stock Holders
Community
Government
News Media
PROACTIVE vs. REACTIVE
DuPont vs. Exxon
PUBLICITY
Not Overtly Sponsored
High Credibility

20. Public Relations Functions
Press
Relations
Product
Promotions
Advising
Management
Corporate
Communications
Lobbying

21. Personal Selling PERSONAL SELLING
Oral presentation in a conversation with one or more prospective purchasers for the purpose of making a sale
Personal selling represents the most popular promotional effort in terms of financial expenditures and number of people employed
Personal Selling is:
(1) Dyadic, (2) Flexible, (3) Focused (personalized), and (4) Often results directly in a sale
Other promotional elements move the customer toward the sale, personal selling closes the sale

22. PERSONAL SELLING AND SALES MANAGEMENT
FUNCTIONS AND CONTRIBUTIONS OF PERSONAL SELLING
“Boundary Spanner” Role, Relationship Management (Trust)
Two-Way Information Channel (Diffusion of Product and Market Information)
Facilitate Exchange

23. THE MARKETING-COMMUNICATIONS MIX: Relative Emphasis in Consumer and Business Markets
CONSUMER MARKETS
EMPHASIS
EMPHASIS
SALES
FORCE
ADVERTISING
PROMOTIONS
DIRECT MKT.
COMPLEMENT

24. PERSONAL SELLING AND SALES MANAGEMENT
ROLES OF SALESPERSON
Psychologist
Consultant
Educator / Teacher
Problem Solver
Team Leader
TYPES OF SELLING POSITIONS
New Business (Prospector)
Existing Business (Order Taker)
Detailing
Support (Marketing, Technical)

25. STEPS IN THE SELLING PROCESS: A RELATIONSHIP APPROACH
INITIATING RELATIONSHIPS
Prospecting
Pre-Call Planning
Approach
DEVELOPING CUSTOMER RELATIONSHIPS
Sales Communications and Presentations
Gaining and Managing Commitment
ENHANCING CUSTOMER RELATIONSHIPS
Follow-Up
Support
TRADITIONAL vs. RELATIONSHIP APPROACHES
Consultative (needs-satisfaction) vs. Manipulative (product-focused)

26. SALES MANAGEMENT ISSUES
RECRUITING AND HIRING
Difficult to Predict Success
DEPLOYMENT
Territory Design
AUTOMATION
Use of Technology to Link Buyer, Salesperson, and Organizations (Customer Relationship Management and Supply Chain Management)
EVALUATION AND COMPENSATION
Outcome-Based vs. Behavior-Based

27. Sales Promotion SALES PROMOTION
Those marketing activities - other than advertising, public relations/publicity, and personal selling - that stimulate consumer purchasing and dealer effectiveness
Displays, shows and exhibitions, coupons, contests, samples

28. THE GROWTH IN SALES PROMOTION
Reasons for the Growth in Sales Promotion:
Consumer Factors
Accountability
Increased Retail Power
Impact of Technology
Short-Term Focus

29. OBJECTIVES OF CONSUMER PROMOTIONS
Stimulate
Trial
Support
Flexible Pricing
Increase
Consumption
Neutralize
Competitors
Complementary
Products
Encourage
Repurchase
Impulse
Purchasing

30. CONSUMER SALES PROMOTION TECHNIQUES
Price Deals
Advertising
Specialties
Coupons
Sampling
Rebates
Contests, Games,
Sweepstakes
Premiums
Cross-
Promotions

31. OBJECTIVES OF TRADE PROMOTIONS
Increase Reseller
Inventory
Influence
Price Discount
Defend Against
Competitors
Avoid Price
Reductions
Reseller Promotion
Gain/Maintain
Distribution

32. LIMITATIONS OF SALES PROMOTION
Cannot Reverse Declining Sales Trend
Cannot Overcome Inferior Product
May Encourage Competitive Retaliation
May Hurt Profit

33. Direct Marketing
Techniques used to get consumers to make a purchase from their home, office or other nonretail setting
Direct mail, catalogs, mail order, telemarketing, electronic retailing

34. TECHNIQUES OF DIRECT MARKETING
Electronic
Media
Direct Mail
Telemarketing
Direct Selling
Print
Media
Broadcast
Media