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Marketing Communications Decisions
Learning Objectives
• Understand the process and advantages of integrated
marketing communications.
• Know the tools of the marketing communications mix.
INTEGRATED MARKETING
COMMUNICATION-Definition
• 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.
Marketing Communication Mix
• Product communicates
• Price communicates
• Place (point of sale) communicates
• Promotion communicates
Advertising
Personal Selling
Sales Promotions
Publicity
Definition: Promotion Mix
• The combination of one or more of the
promotional elements a firm uses to
communicate with consumers.
• The promotional elements include:
advertising, personal selling, sales promotion,
publicity.
Common communication platforms
Promotion Mix
• Advertising
• Personal Selling
• Sales Promotion
• Public Relations
• Direct Marketing
• 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
Elements
Promotion Mix
• Advertising
• Personal Selling
• Sales Promotion
• Public Relations
• Direct Marketing
Elements • 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
Promotion Mix
• Advertising
• Personal Selling
• Sales Promotion
• Public Relations
• Direct Marketing
Elements • 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
Promotion Mix
• Advertising
• Personal Selling
• Sales Promotion
• Public Relations
• Direct Marketing
Elements • 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
Promotion Mix
• Advertising
• Personal Selling
• Sales Promotion
• Public Relations
• Direct Marketing
Elements • Many forms: Telephone
marketing, direct mail, online
marketing, etc.
• Three distinctive
characteristics:
• Immediate
• Customized
• Interactive
• Well-suited to highly targeted
marketing efforts
Promotion Mix Strategy
• Push Strategy:
• Promotion Activities directed to channel
members – example: retailers, wholesalers.
• Ex: Trade Promotions, Displays, Cooperative
Advertising.
• Pull Strategy:
• Promotion Activities directed to consumers
The promotion decision process
PROCESS FOR EFFECTIVE
COMMUNICATION
Setting the Promotion Budget:
• Percentage of Sales
• Competitive Parity (Matching Competitors or Share of Market)
• All You Can Afford
• Objective and Task – Ideal Approach
PROMOTION BUDGET
Selecting the Right Promotional Tools:
• Advertising – high reach, frequency, image/awareness
building, simple messages.
• Personal Selling – complex messages, persuasive, two
way communication, targeted.
• Sales Promotion – short term demand creation
• PR – low cost, credible, complex messages.
• Direct Marketing – Highly targeted, demand creation
DEVELOPING THE
PROMOTION PROGRAM
Selecting the Right Promotional Tools:
• Product Life Cycle
▪ Introduction, Growth, Maturity, Decline
▪ Promotion objectives differ across cycle
DEVELOPING THE
PROMOTION PROGRAM
Slide 18-28
Promotional tools used over the product life
cycle of Purina Dog Chow

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  • 2. Learning Objectives • Understand the process and advantages of integrated marketing communications. • Know the tools of the marketing communications mix.
  • 3. INTEGRATED MARKETING COMMUNICATION-Definition • 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.
  • 4. Marketing Communication Mix • Product communicates • Price communicates • Place (point of sale) communicates • Promotion communicates Advertising Personal Selling Sales Promotions Publicity
  • 5. Definition: Promotion Mix • The combination of one or more of the promotional elements a firm uses to communicate with consumers. • The promotional elements include: advertising, personal selling, sales promotion, publicity.
  • 7. Promotion Mix • Advertising • Personal Selling • Sales Promotion • Public Relations • Direct Marketing • 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 Elements
  • 8. Promotion Mix • Advertising • Personal Selling • Sales Promotion • Public Relations • Direct Marketing Elements • 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
  • 9. Promotion Mix • Advertising • Personal Selling • Sales Promotion • Public Relations • Direct Marketing Elements • 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
  • 10. Promotion Mix • Advertising • Personal Selling • Sales Promotion • Public Relations • Direct Marketing Elements • 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
  • 11. Promotion Mix • Advertising • Personal Selling • Sales Promotion • Public Relations • Direct Marketing Elements • Many forms: Telephone marketing, direct mail, online marketing, etc. • Three distinctive characteristics: • Immediate • Customized • Interactive • Well-suited to highly targeted marketing efforts
  • 12. Promotion Mix Strategy • Push Strategy: • Promotion Activities directed to channel members – example: retailers, wholesalers. • Ex: Trade Promotions, Displays, Cooperative Advertising. • Pull Strategy: • Promotion Activities directed to consumers
  • 13. The promotion decision process PROCESS FOR EFFECTIVE COMMUNICATION
  • 14. Setting the Promotion Budget: • Percentage of Sales • Competitive Parity (Matching Competitors or Share of Market) • All You Can Afford • Objective and Task – Ideal Approach PROMOTION BUDGET
  • 15. Selecting the Right Promotional Tools: • Advertising – high reach, frequency, image/awareness building, simple messages. • Personal Selling – complex messages, persuasive, two way communication, targeted. • Sales Promotion – short term demand creation • PR – low cost, credible, complex messages. • Direct Marketing – Highly targeted, demand creation DEVELOPING THE PROMOTION PROGRAM
  • 16. Selecting the Right Promotional Tools: • Product Life Cycle ▪ Introduction, Growth, Maturity, Decline ▪ Promotion objectives differ across cycle DEVELOPING THE PROMOTION PROGRAM
  • 17. Slide 18-28 Promotional tools used over the product life cycle of Purina Dog Chow