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Chapter 12
5/7/2023 9:07 AM 1
Objectives
 Know the tools of the marketing
communications mix.
 Understand the process and advantages
of integrated marketing communications.
 Understand The nature of each promotion
tool
 Know the Promotion-Mix-Strategies
5/7/2023 9:07 AM 2
The Promotion Mix
Advertising
Any paid form of
non-personal
presentation and
promotion of ideas,
goods, or services
by an identified
sponsor
Sales
promotion
Short-term
incentives to
encourage the
purchase or sales
of a product or
service
Public relations
Building good relations
with the company's
various public by
obtaining favorable
publicity, building up a
good corporate image,
and handling or heading
off unfavorable rumors,
stories, and events
Personal
selling
Personal
presentation by the
firm’s sales force
for the purpose of
making sales and
building customer
relationship
Direct marketing
Direct connection with
carefully targeted
individual consumers to
both obtain an immediate
response and cultivate
lasting customer
relationship- the use of
telephone, mail, fax, the
internet, and other tools
to communicate directly
with specific consumers
Promotion Mix
(Marketing
Communications
Mix)
The specific mix of
advertising, personal
selling, sales promotion,
public relations, and direct
marketing tools that a
company uses to
persuasively communicate
customer value and build
customer relationship
5/7/2023 9:07 AM 3
The Promotion Mix
Advertising
• Broadcast
• Print
• Internet
• Outdoor
• And others
Sales
Promotion
• Discounts
• Coupons
• Demonstrati
ons
• And others
Personal
Selling
• Sales
presentation
s
• Trade
shows
• And others
Public
Relation
- Press
releases
-Sponsorship
- Special
events
- Web pages
- And others
Direct
Marketing
- Catalogs
- Telephone
marketing
- Kiosks
- The internet
- And others
5/7/2023 9:07 AM 4
Integrated Marketing
Communications
 The Marketing Communications Environment is
Changing: (landscape and communication model)
 Mass markets have fragmented, causing marketers to
shift away from mass marketing to target marketing
 Improvements in information technology are
facilitating segmentation
 Media fragmentation has occurred with companies
doing less broadcasting and more narrowcasting
5/7/2023 9:07 AM 5
Integrated Marketing
Communications
 The Need for Integrated Marketing
Communications
 Conflicting messages from different sources or
promotional approaches can confuse company
or brand images
○ The problem is particularly prevalent when
functional specialists handle individual forms of
marketing communications independently
5/7/2023 9:07 AM 6
Integrated Marketing
Communications
 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.
5/7/2023 9:07 AM 7
Integrated Marketing
Communications
Personal
selling
Public
relation
Direct
marketing
Sales
promotions
Advertising Consistent, clear,
and compelling
company and
brand messages
5/7/2023 9:07 AM 8
Integrated Marketing
Communications
 The Need for Integrated Marketing
Communications
 The Internet must be integrated into the
broader IMC mix
 Best bet is to wed traditional branding efforts
with the interactivity and service capabilities
of online communications
5/7/2023 9:07 AM 9
Shaping The Overall Promotion
Mix
How does the company determine what
mix of promotion tools it will use ?
5/7/2023 9:07 AM 10
Shaping The Overall Promotion
Mix
 The nature of each promotional tool
Can reach masses of
geographically dispersed
at a low cost per exposure
(for companies that want
to reach a mass audience,
TV is the place to be)
Large-scale advertising
says something positive
about the seller’s size,
popularity, and success
Advertising is impersonal
and cannot be as directly
persuasive as can
company salespeople
Advertisin
g
The most effective tool at
certain stages of the
buying process,
particularly in building up
buyers preference,
conviction, and action
Allows all kinds of
customer relationship to
spring up
The buyer usually feels a
greater need to listen and
respond, even if the
respond is a polite “No
thank you”
Personal
Selling
5/7/2023 9:07 AM 11
Shaping The Overall Promotion
Mix
 The nature of each promotion tool
Attract consumer
attention, offer strong
incentive to purchase
Invite and reward quick
response –where
advertising says, “buy our
product” sales promotion
says, “buy it now”
Its effects are often short –
lived. Not effective as
advertising or personal
selling in building long –
run brand preference and
customer relationship
Sales
Promotion
Very believable
Reach many prospects
who avoid salespeople and
advertisements
As with advertising, public
relation can dramatize a
company or product
Public
Relation
5/7/2023 9:07 AM 12
Shaping The Overall Promotion
Mix
 The nature of each promotion tool
Nonpublic: the message is
normally directed to a
specific person
Immediate and
customized: message can
be prepared very quickly
and can be tailored to
appeal to specific
consumers
Interactive: it allows a
dialogue between the
marketing team and the
consumer
Direct
Marketing
5/7/2023 9:07 AM 13
Shaping The Overall Promotion
Mix
 Promotion-Mix-Strategies
 Push strategy:
○ involves “pushing” the product through marketing
channels to final consumers.
○ The producer directs its marketing activities
(primarily personal selling and trade promotion)
toward channel members to induce them to carry
the product and to promote it to final consumers.
○ Used more in (B2B) {putting more of their funds
into personal selling, followed by sales promotion,
advertising, and public relation}
5/7/2023 9:07 AM 14
Shaping The Overall Promotion
Mix
● Pull strategy:
o The producer direct its marketing activities (primarily
advertising and consumer promotion) toward final
consumer to induce them to buy the product.
o Consumer will demand the product from channel
members, who will in turn demand it from producer.
o The consumer demand “pull” the product through the
channel.
o Used more in (B2C) {putting more of their funds into
advertising, followed by sales promotion, personal
selling, and public relation} .
5/7/2023 9:07 AM 15
Shaping The Overall Promotion
Mix
Producer
Producer
Consumer
Consumer
Demand
Producer marketing
activity (personal
selling, trade
promotion, other)
Demand
Reseller marketing
activity (personal
selling, trade
promotion, other)
Retailers
and
wholesalers
Retailers
and
wholesalers
Push Strategy
Pull Strategy
Producer marketing activities (consumer advertising, sales promotions, other)
5/7/2023 9:07 AM 16

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11- Ch 12- Communicating customer value (Pro[1].).ppt

  • 2. Objectives  Know the tools of the marketing communications mix.  Understand the process and advantages of integrated marketing communications.  Understand The nature of each promotion tool  Know the Promotion-Mix-Strategies 5/7/2023 9:07 AM 2
  • 3. The Promotion Mix Advertising Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor Sales promotion Short-term incentives to encourage the purchase or sales of a product or service Public relations Building good relations with the company's various public by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Personal selling Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationship Direct marketing Direct connection with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationship- the use of telephone, mail, fax, the internet, and other tools to communicate directly with specific consumers Promotion Mix (Marketing Communications Mix) The specific mix of advertising, personal selling, sales promotion, public relations, and direct marketing tools that a company uses to persuasively communicate customer value and build customer relationship 5/7/2023 9:07 AM 3
  • 4. The Promotion Mix Advertising • Broadcast • Print • Internet • Outdoor • And others Sales Promotion • Discounts • Coupons • Demonstrati ons • And others Personal Selling • Sales presentation s • Trade shows • And others Public Relation - Press releases -Sponsorship - Special events - Web pages - And others Direct Marketing - Catalogs - Telephone marketing - Kiosks - The internet - And others 5/7/2023 9:07 AM 4
  • 5. Integrated Marketing Communications  The Marketing Communications Environment is Changing: (landscape and communication model)  Mass markets have fragmented, causing marketers to shift away from mass marketing to target marketing  Improvements in information technology are facilitating segmentation  Media fragmentation has occurred with companies doing less broadcasting and more narrowcasting 5/7/2023 9:07 AM 5
  • 6. Integrated Marketing Communications  The Need for Integrated Marketing Communications  Conflicting messages from different sources or promotional approaches can confuse company or brand images ○ The problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently 5/7/2023 9:07 AM 6
  • 7. Integrated Marketing Communications  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. 5/7/2023 9:07 AM 7
  • 9. Integrated Marketing Communications  The Need for Integrated Marketing Communications  The Internet must be integrated into the broader IMC mix  Best bet is to wed traditional branding efforts with the interactivity and service capabilities of online communications 5/7/2023 9:07 AM 9
  • 10. Shaping The Overall Promotion Mix How does the company determine what mix of promotion tools it will use ? 5/7/2023 9:07 AM 10
  • 11. Shaping The Overall Promotion Mix  The nature of each promotional tool Can reach masses of geographically dispersed at a low cost per exposure (for companies that want to reach a mass audience, TV is the place to be) Large-scale advertising says something positive about the seller’s size, popularity, and success Advertising is impersonal and cannot be as directly persuasive as can company salespeople Advertisin g The most effective tool at certain stages of the buying process, particularly in building up buyers preference, conviction, and action Allows all kinds of customer relationship to spring up The buyer usually feels a greater need to listen and respond, even if the respond is a polite “No thank you” Personal Selling 5/7/2023 9:07 AM 11
  • 12. Shaping The Overall Promotion Mix  The nature of each promotion tool Attract consumer attention, offer strong incentive to purchase Invite and reward quick response –where advertising says, “buy our product” sales promotion says, “buy it now” Its effects are often short – lived. Not effective as advertising or personal selling in building long – run brand preference and customer relationship Sales Promotion Very believable Reach many prospects who avoid salespeople and advertisements As with advertising, public relation can dramatize a company or product Public Relation 5/7/2023 9:07 AM 12
  • 13. Shaping The Overall Promotion Mix  The nature of each promotion tool Nonpublic: the message is normally directed to a specific person Immediate and customized: message can be prepared very quickly and can be tailored to appeal to specific consumers Interactive: it allows a dialogue between the marketing team and the consumer Direct Marketing 5/7/2023 9:07 AM 13
  • 14. Shaping The Overall Promotion Mix  Promotion-Mix-Strategies  Push strategy: ○ involves “pushing” the product through marketing channels to final consumers. ○ The producer directs its marketing activities (primarily personal selling and trade promotion) toward channel members to induce them to carry the product and to promote it to final consumers. ○ Used more in (B2B) {putting more of their funds into personal selling, followed by sales promotion, advertising, and public relation} 5/7/2023 9:07 AM 14
  • 15. Shaping The Overall Promotion Mix ● Pull strategy: o The producer direct its marketing activities (primarily advertising and consumer promotion) toward final consumer to induce them to buy the product. o Consumer will demand the product from channel members, who will in turn demand it from producer. o The consumer demand “pull” the product through the channel. o Used more in (B2C) {putting more of their funds into advertising, followed by sales promotion, personal selling, and public relation} . 5/7/2023 9:07 AM 15
  • 16. Shaping The Overall Promotion Mix Producer Producer Consumer Consumer Demand Producer marketing activity (personal selling, trade promotion, other) Demand Reseller marketing activity (personal selling, trade promotion, other) Retailers and wholesalers Retailers and wholesalers Push Strategy Pull Strategy Producer marketing activities (consumer advertising, sales promotions, other) 5/7/2023 9:07 AM 16