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  1. 1. Managing The Marketing Mix Lecture 6: Promotion and Marketing Communications (2) Dr. Martin J. Liu Lecturer in Marketing
  2. 2. In the Previous Lecture… Overview Promotional Mix Factors Affecting Promotional Mix Integrated Marketing Communication Summary
  3. 3. Objectives for Today Overview • The types, main characteristics and measurement of public relations Promotional Mix Factors Affecting • The differences between P.R. and advertising Promotional Mix • Marketing communications in the new media Integrated Marketing Communication • Factors affecting promotional mix Summary • Integrated marketing communication
  4. 4. Public Relations Overview • Highly credible • Many forms: news stories, news features, events and Promotional Mix sponsorships, etc. • Reaches many prospects missed via other forms of promotion Factors Affecting • Dramatizes company or benefits Promotional Mix • Often the most underused element in the promotional mix Integrated Definition Marketing Communication “is the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics” Summary (British Institute of Public Relations) Measurement Number of people who had the opportunity to read, watch or hear the message, based on readership or audience figures
  5. 5. Publicity Overview • Main characteristics: – high credibility Promotional Mix – low costs – lose control of publication Factors Affecting – lose control of content Promotional Mix – lose control of timing Integrated Marketing Communication Summary
  6. 6. Public Relations Overview Promotional Mix Factors Affecting Public Relations Public Relations Promotional Mix Communication Mode Communication Mode Usually indirect, non-personal Usually indirect, non-personal Integrated Communication Control Moderate to low Marketing Communication Control Moderate to low Communication Feedback Amount Feedback Amount Little Little Summary Feedback Speed Feedback Speed Delayed Delayed Message Flow Direction Message Flow Direction One-way One-way Message Content Control Message Content Control No No Sponsor Identification Sponsor Identification Low Low Reaching Large Audience Reaching Large Audience Usually fast Usually fast Message Flexibility Message Flexibility Usually no direct control Usually no direct control
  7. 7. Sponsorship Overview Definition: Promotional Mix A business relationship between a provider, event or organisation which offers in return some rights and Factors Affecting association that may be used for commercial advantage. Promotional Mix (Sleight) Integrated • Types of sponsorship: Marketing – Event sponsorship Communication • Educational • Cultural Summary • Awards • Books • Sports – Broadcast sponsorship • form of advertising whereby a company sponsors a radio or TV show • whereby a whole program is sponsored and credit is given to the sponsor.
  8. 8. Sponsorship Overview • Benefits of sponsorship: Promotional Mix • Gain publicity Factors Affecting – bears a mark of approval which is good P.R. in itself Promotional Mix • Create entertainment opportunities Integrated Marketing Communication • Improve community relations – maintains cultural organisations such as theatres and Summary orchestras – provides educational opportunities through bursaries and fellowships • Foster favourable brand and company associations • Create promotional opportunities
  9. 9. Sponsorship Overview • Selection criteria: – Communications objectives Promotional Mix – Target market – Risk Factors Affecting – Promotional opportunities Promotional Mix – Past record – Cost Integrated Marketing Communication Summary
  10. 10. Product Placement Overview Product placement: Promotional Mix • Is a promotional tactic used by marketers in which a real Factors Affecting commercial product is used in fictional or non-fictional Promotional Mix media, and the presence of the product is a result of an economic exchange to augment advertising campaigns Integrated through the publicising of company and product names Marketing which often get wide coverage by the media Communication Different manifestations: Summary • Product usage negotiated rather than paid for • Advertisement placement • Controversy • Creation of false products
  11. 11. Product Placement Overview Promotional Mix Factors Affecting Promotional Mix Integrated Marketing Communication Summary
  12. 12. Effectiveness of PR in New Media Overview Promotional Mix Second life 8% 0% Factors Affecting Social Networks 10% 36% 14% Promotional Mix RSS Feeds 11% 14% Wiki 27% Mobile 15% 13% Integrated Online ads 17% 33% Marketing Blogs 6% 17% Communication Podcasts 21% 13% Viral video 23% 32% Video on demand 26% 20% Summary SEO-Paid 41% 55% SEO-Organic 41% 50% Email Mktng 44% 45% Webinars 54% 27% Own website 59% 51% 0% 10% 20% 30% 40% 50% 60% 70% B-to-B B-to-C
  13. 13. Public Relations Overview How P.R. differs from Advertising Promotional Mix - Audience Factors Affecting - Purpose Promotional Mix - Appeal - Media Integrated - Presentation Marketing - Costs Communication Summary
  14. 14. Communication Decisions Overview • Which element of communications mix to use? – Advertising, Public Relation, Personnel Selling, Sales Promotional Mix Promotion, and Direct Marketing Factors Affecting Promotional Mix • What communication channel to use? – Press, radio, TV, posters, cinema, exhibition, sponsorship, e- Integrated communications, viral marketing, other Marketing Communication • What communication types to use? – National daily, regional daily, magazines, blog, other Summary • What titles to use – Financial times, times, telegraph, guardian, sun etc
  15. 15. Communication vs. Purchase Decisions Overview Prepurchase Advertising is most valuable Promotional Mix Informs potential customers about the existence of the Factors Affecting product and the seller. Promotional Mix Purchase Integrated Importance of personal Marketing selling is highest Communication Sales promotion can encourage demand. Summary Postpurchase Personal contact after the sale leads to buyer satisfaction. Advertising and personal selling help reduce postpurchase anxiety.
  16. 16. Communication vs. Purchase Decisions Overview Why can humor be a particularly effective Promotional Mix appeal? Factors Affecting Promotional Mix Integrated Marketing Communication Summary
  17. 17. Factors Affecting Promotional Mix Overview Promotional Mix Factors Affecting Promotional Mix Integrated Marketing Communication Summary
  18. 18. Integrated Marketing Communications Overview • Main considerations: Promotional Mix  Resource availability & the cost of promotional tools Factors Affecting Promotional Mix  Market size & concentration Integrated  Customer information needs Marketing Communication  Product characteristics Summary  Push vs. pull strategies
  19. 19. PLC and Promotional Activities Overview Promotional Mix Introduction Growth Maturity Decline Factors Affecting Promotional Mix Integrated Marketing Communication Summary To Inform To Persuade To Remind •Advertising •Reminder •Limited •Event Sponsoring Advertising budget •Direct Marketing •Direct Mail spent on •Umbrella Reminders promoting Branding Campaign •Sales Promotions
  20. 20. Push vs. Pull Strategy Overview Push Strategy Promotional Mix Manufacturer Wholesaler Retailer Consumer Factors Affecting Promotes to promotes to Promotes to Buys from Promotional Mix Wholesaler Retailer Consumer Retailer Integrated Marketing Communication Summary Pull Strategy Consumer Retailer Wholesaler Manufacturer Demands Demands Demands Promotes to Product from Product from Product from Customer Retailer Wholesaler Manufacturer
  21. 21. Implementing IMC Overview Promotional Mix Marketing Strategy Factors Affecting Promotional Mix Positioning Statement Integrated Marketing Communications Decisions Communication 1. Identify Target Audience 2. Set Communications Objectives Summary 3. Create Message(s) 4. Select Promotional mix 5.Set Promotional Budget Execute IMC Strategy Evaluate IMC Strategy
  22. 22. Importance of IMC Overview  It is a core component of the dialogue between customers and the organisation Promotional Mix Factors Affecting  It raises awareness, communicates the value of the Promotional Mix offering and stimulates purchase Integrated  It is an important means of creating intangible value Marketing (brand personality) Communication Summary  Supports and adds synergy to the overall business and marketing strategy
  23. 23. Summary Overview • Communication is at the heart of marketing Promotional Mix • All mix elements communicate but promotion is most active Factors Affecting form Promotional Mix • Range of available Tools = advertising, sales promotion, Integrated PR, direct marketing, personal selling. Marketing Communication • Choice influenced by context Summary • Changing marketing environment move towards integrated marketing communications.