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Marketing communication


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Marketing communication

  1. 1. Integrated Marketing Communications
  2. 2. The Role of Promotion 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. 3. Promotional Strategy A plan for the optimal use of the elements of promotion:  Advertising  Public Relations  Sales Promotion  Personal Selling Competitive Advantage
  4. 4. The Role of Promotion in the Marketing Mix Overall Marketing Objectives Marketing Mix • Product • Place • Promotion • Price Target Market Promotional Mix • Advertising • Public Relations • Sales Promotion • Personal Selling Promotion Plan
  5. 5. Competitive Advantage Unique features Excellent service Low prices Rapid delivery High product quality
  6. 6. 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
  7. 7. Advertising Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.
  8. 8. 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
  9. 9. 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.
  10. 10. 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
  11. 11. Sales Promotion Sales Promotion Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness.
  12. 12. Sales Promotion Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons End Consumers Company Employees Trade Customers
  13. 13. Personal Selling Personal Selling Planned presentation to one or more prospective buyers for the purpose of making a sale.
  14. 14. Nature of Each Promotional Tool Advertising • Reaches large, geographically dispersed audiences, often with high frequency • Low cost per exposure, though overall costs are high • Consumers perceive advertised goods as more legitimate • Dramatizes company/brand • Builds brand image; may stimulate short-term sales • Impersonal; one-way communication
  15. 15. Personal Selling • Most effective tool for building buyers’ preferences, convictions, and actions • Personal interaction allows for feedback and adjustments • Relationship-oriented • Buyers are more attentive • Sales force represents a long-term commitment • Most expensive of the promotional tools
  16. 16. Sales Promotion • May be targeted at the trade or ultimate consumer • Makes use of a variety of formats: premiums, coupons, contests, etc. • Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales • Stimulates quick response • Short-lived • Not effective at building long-term brand preferences
  17. 17. Public Relations • Highly credible • Many forms: news stories, news features, events and sponsorships, etc. • Reaches many prospects missed via other forms of promotion • Dramatizes company or benefits • Often the most underused element in the promotional mix
  18. 18. Direct Marketing Many forms: Telephone marketing, direct mail, online marketing, etc. Four characteristics: Nonpublic Immediate Customized Interactive Well-suited to highly targeted marketing efforts
  19. 19. REVIEW LEARNING OUTCOME Elements of the Promotional Mix
  20. 20. Goals and Tasks of Promotion Informing Reminding Persuading Target Audience PLC Stages: Introduction Early Growth PLC Stages: Maturity PLC Stages: Growth Maturity
  21. 21. Goals and Tasks of Promotion  Increase awareness  Explain how product works  Suggest new uses  Build company image Informative Promotion
  22. 22. Goals and Tasks of Promotion Persuasive Promotion  Encourage brand switching  Change customers’ perceptions of product attributes  Influence immediate buying decision  Persuade customers to call
  23. 23. Goals and Tasks of Promotion Reminder Promotion  Remind customers that product may be needed  Remind customers where to buy product  Maintain customer awareness
  24. 24. 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
  25. 25. Stage in the Product Life Cycle Light Advertising; pre- introduction publicity Heavy use of Advertising; PR for awareness; sales promotion for trial AD/PR decrease; limited sales promotion; personal selling for distribution Ads decrease; sales promotion; personal selling; reminder & persuasive Advertising, PR, brand loyalty; personal selling for distribution Introduction Growth Maturity Decline Sales($) Time
  26. 26. Target Market Characteristics Advertising Sales Promotion Less Personal Selling For…  Widely scattered market  Informed buyers  Brand-loyal repeat purchasers
  27. 27. Type of Buying Decision Advertising Sales Promotion Routine Personal Selling Neither Routine nor Complex Advertising Public Relations Print Advertising Complex
  28. 28. Push and Pull Strategies Manufacturer promotes to wholesaler Wholesaler promotes to retailer Retailer promotes to consumer Consumer buys from retailer PUSH STRATEGY Orders to manufacturer Manufacturer promotes to consumer Consumer demands product from retailer Retailer demands product from wholesaler Wholesaler demands product from manufacturer Orders to manufacturer PULL STRATEGY
  29. 29. REVIEW LEARNING OUTCOME Factors Affecting Promotional Mix
  30. 30. Integrated Marketing Communications 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.
  31. 31. 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
  32. 32. REVIEW LEARNING OUTCOME Integrated Marketing Communications
  33. 33. Steps in Developing Effective Communications Identify target audience Determine objectives Design communications Decide on media mix Establish budget Select channels Measure results Manage IMC
  34. 34. • Step 1: Identifying the Target Audience – Affects decisions related to what, how, when, and where message will be said, as well as who will say it • Step 2: Determining Communication Objectives – Objectives may be set to move buyers through the six readiness stages
  35. 35. • Step 3: Designing a Message – AIDA framework guides message design – Message content • Rational • Emotional appeals: fear, humor, guilt, shame, love • Moral appeals • Designing a Message – Message structure • Draw a conclusion? • One-sided or two-sided? • Strongest arguments presented first or last? – Message format Novelty, contrast, and more
  36. 36. • Step 4: Choosing Media – Personal communication channels • Includes face-to-face, phone, mail, and Internet chat communications • Word-of-mouth influence is often critical • Buzz marketing cultivates opinion leaders – Nonpersonal communication channels • Includes media, atmosphere, and events • Step 5: Selecting the Message Source – Highly credible sources are more persuasive – A poor choice of spokesperson can tarnish a brand
  37. 37. Setting the Promotional Budget and Mix • Setting the Total Promotional Budget – Affordability Method • Budget is set at a level that a company can afford – Percentage-of-Sales Method • Past or forecasted sales may be used – Competitive-Parity Method • Budget matches competitors’ outlays
  38. 38. Setting the Promotional Budget and Mix • Setting the Total Promotional Budget – Objective-and-Task Method • Specific objectives are defined • Tasks required to achieve objectives are determined • Costs of performing tasks are estimated, then summed to create the promotional budget
  39. 39. Setting the Promotional Budget and Mix • Setting the Overall Promotion Mix – Determined by the nature of each promotional tool and the selected promotion mix strategy
  40. 40. • Step 6: Collecting Feedback – Recognition, recall, and behavioral measures are assessed – May suggest changes in product/promotion
  41. 41. Corporate Communication V/S Marketing Communications Corporate communications Marketing communications Aim building company's reputation brand building Scope of communication Company / Enterprise product/produce or service provided by the company Target Audience multiple stakeholders customer Mode multiple channels defined set of channels Creativity less room for creativity more room for creativity Consistency With corporate identity, image, philosophy; product & brand attributes With product and brand attributes
  42. 42. Thank you…