The document discusses integrated marketing communications and the promotional mix. It defines promotion, the promotional strategy and tools, including advertising, public relations, sales promotion and personal selling. It explains how the promotional mix is determined by factors like the product life cycle stage, target market and type of buying decision. The key aspects of developing effective communications are identifying the audience, setting objectives, designing messages, selecting media and measuring results. Finally, it distinguishes between corporate communications and marketing communications.

1. Integrated Marketing
Communications

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. Promotional
Strategy
A plan for the optimal use of the
elements of promotion:
 Advertising
 Public Relations
 Sales Promotion
 Personal Selling
Competitive
Advantage

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. Competitive Advantage
Unique features
Excellent service
Low prices
Rapid delivery
High product quality

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. Advertising Impersonal, one-way
mass communication about a
product or organization that is
paid for by a marketer.

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. 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. 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. Sales Promotion
Sales
Promotion
Marketing activities--other than
personal selling, advertising, and
public relations--that stimulate
consumer buying and
dealer effectiveness.

12. Sales Promotion
Free samples
Contests
Premiums
Trade Shows
Vacation Giveaways
Coupons
End
Consumers
Company
Employees
Trade Customers

13. Personal Selling
Personal
Selling
Planned presentation to one or
more prospective buyers for the
purpose of making a sale.

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. 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. 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. 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. 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. REVIEW LEARNING OUTCOME
Elements of the Promotional Mix

20. Goals and Tasks of Promotion
Informing Reminding
Persuading
Target
Audience
PLC Stages:
Introduction
Early Growth
PLC Stages:
Maturity
PLC Stages:
Growth
Maturity

21. Goals and Tasks of Promotion
 Increase awareness
 Explain how product works
 Suggest new uses
 Build company image
Informative Promotion

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. Goals and Tasks of Promotion
Reminder Promotion
 Remind customers that product
may be needed
 Remind customers where
to buy product
 Maintain customer awareness

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. 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. Target Market Characteristics
Advertising
Sales Promotion
Less Personal Selling
For…
 Widely scattered market
 Informed buyers
 Brand-loyal repeat
purchasers

27. Type of Buying Decision
Advertising
Sales Promotion
Routine
Personal Selling
Neither Routine
nor Complex
Advertising
Public Relations
Print Advertising
Complex

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. REVIEW LEARNING OUTCOME
Factors Affecting Promotional Mix

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. 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. REVIEW LEARNING OUTCOME
Integrated Marketing Communications

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. • 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. • 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. • 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. 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. 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. 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. • Step 6: Collecting Feedback
– Recognition, recall, and behavioral measures are
assessed
– May suggest changes in product/promotion

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. Thank you…