1. Marketing Communications

2. Marketing Communications (Promotion)
Definition (Promotion)
Attempts by an organization to communicate with its customers, suppliers, and publics
Definition of communication
Sharing of ideas thoughts between two or more parties
Communication is most effectively done when both parties are actively involved in the process

3. Marketing Communications (Promotion)
Types of communication
Interpersonal – direct communication between sender and receiver
Mass – sender uses an independent source (e.g., the mass media) to convey a message to multiple receivers
Advantages of interpersonal communication
Immediate & direct feedback
Verbal and non-verbal feedback
Credibility
Ability to adjust message
Paradox of marketing communication
Due to efficiency issues, marketers typically communicate via less effective means

4. Marketing Communications (Promotion)
Promotion mix
Advertising – paid form of impersonal communication by an identified sponsor
Sales promotion – short-term incentives used to encourage immediate purchase
Public relations – building of positive relations with various publics through communicative means (e.g., events, media coverage, etc.)
Direct marketing – direct communication with potential customers to obtain an immediate response
Personal selling – process whereby a seller ascertains, activates, and meets a customer’s needs and wants to the mutual benefit of both the buyer and seller

5. Marketing Communications (Promotion)
Developing an effective marketing communication program
Identify the target audience
Determine the communication objectives (in terms of the target audience)
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Repeat purchase
Brand loyalty

6. Marketing Communications (Promotion)
Developing an effective marketing communication program (Cont’d)
Design a message
Content
Structure
Format
Choose the appropriate media
Personal
Impersonal
Select the message source
Gather feedback

7. Marketing Communications (Promotion)
Advantages of promotional tools
Advertising – broad reach, expressive
Sales promotion – strong incentives to purchase, but short-term
Public relations – believable and economical, but marketers have limited control
Direct marketing – immediate and customized, but often discounted by customers
Personal selling – interactive, responsive and relationship building, but limited in reach and expensive

8. Marketing Communications (Promotion)
General promotion strategies
Push
Pull
Integrated marketing communication
Promotion mix
Marketing mix – e.g., higher price often suggests higher quality
Non-promotion tools do communicate

9. Marketing Communications (Promotion)
Advertising
Widely used -- $200 billion in expenditures annually
Types
Product/Brand – stimulates demand for a specific product or brand
Pioneering
Competitive/Comparative
Reminder
Institutional – create or reinforce a “corporate” image
Cooperative – sharing of an ad between two members of a channel

10. Marketing Communications (Promotion)
Comparative Ad from Kelloggs (K-Plus)

11. Marketing Communications (Promotion)
Brand (reminder) advertising for Tums

12. Marketing Communications (Promotion)
Chevron’s web-advertising
Example of Institutional Advertising

13. Marketing Communications (Promotion)
Advertising
Functions
Inform
Persuade
Remind
Components
Message – the idea that is to be shared
Execution – how is message shared (message +)
Appeal – how to get audience involved (e.g., fear, humor)
Media – how to reach audience (TV, Magazine)

14. Marketing Communications (Promotion)
Heinz A Reminder Ad

15. Marketing Communications (Promotion)
Advertising
Advertising effectiveness
Does an ad meet its objectives?
Involves research
Needs to done – advertising is an investment
It’s performance should be assessed

16. Marketing Communications (Promotion)
Sales promotion
Activities that provide a short-term incentive to buy by improving customers’ perceptions of value (Quality / Price)
Objective – increase short-term sales
Consumer-oriented sales promotion
Samples
Coupons
Refunds/Rebates
Premiums
Price packs
Contests/Sweepstakes
Point-of-Purchase (POP) displays

17. Marketing Communications
A contest (type of sales promotion) – attempts to stimulate short-term sales for Van de Kamp

18. Marketing Communications (Promotion)
Example of media-delivered coupon – a type of consumer-oriented sales promotion

19. Marketing Communications (Promotion)
Sales promotion
Trade-oriented sales promotion (i.e., Trade Promotion)
Promotion targeted at re-sellers and organizational customers
Objectives
Persuade “trade” to carry brand
Improve brand’s shelf space/position
Promote a brand to final consumers
Part of a “Push” strategy
Tools
Price-offs
Allowances (including “slotting fees”)
Discounts
Specialty advertising items
Trade show activities

20. Marketing Communications (Promotion)
Specialty ads identify a corporate sponsor

21. Marketing Communications (Promotion)
Public relations (PR)
Communication designed to build and maintain a favorable image for an organization, maintain the goodwill of its publics and explain its goals and purposes
Type of PR
Internal
External
PR Tools
Web site
Press releases
Speeches – Corporate Speaker Groups
Corporate identity materials – Calendars, pens, etc.
Special events – ING Des Moines Marathon

22. Marketing Communications (Promotion)
Direct marketing
Definition
Direct communication with potential customers to obtain an immediate response
Often uses different media
Mail
Telemarketing
Direct sales
Internet web-page

23. Marketing Communications (Promotion)
Targeted Direct Mail for Van Gogh Exhibition – a poster

24. Marketing Communications (Promotion)
Personal Selling
Definition
Process whereby a seller ascertains, activates, and meets a customer’s needs and wants to the mutual benefit of both the buyer and seller

25. Marketing Communications (Promotion)
Will those in the market for a personal want to get information from TV commercials?
Personal selling is needed to communicate with organizational customers with regard to such high-priced products

26. Marketing Communications (Promotion)
Advantages of personal selling
One-on-one communication
Tailoring of message (to the specific receivers)
Receive and react to immediate feedback (verbal and non-verbal)
Flexibility of message (it can change depending on the situation and needs of receiver)
Closure (ask for the “sell”)
Sales force may perform many functions
Information provision
Information gathering (research)

27. Marketing Communications (Promotion)
Disadvantages of personal selling
Limited reach (typically reaches one customer)
Expense (estimates vary widely, but it is costly)
Less management control (sales managers are not on every sales call)
When is personal selling best used?
Want behavioral results (SALES)
High risk products (these customers want personal attention)
Push strategy

28. Marketing Communications (Promotion)
Role of sales force
Links firm to customers – DEVELOP & MAINTAIN RELATIONSHIPS
Selling process – multiple activities
Prospecting
Qualifying
Approaching
Presenting/demonstrating
Handling objections
Closing
Following up

29. Marketing Communications (Promotion)
Since selling involves multiple activities, some organizations (like CDW) use a “team” selling approach