Integrated Marketing Communication - Effective tool for Promotion
Lecture 9 -- Promotion and Integrated Marketing Communication com
Transcript of Lecture 9 -- Promotion and Integrated Marketing Communication com
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Promotion and Integrated MarketingCommunication
Advertising
Public Relations/ PublicityPersonal SellingSales PromotionDirect Marketing
Chapters 12, 13 & 14
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MARKETING COMMUNICATIONS
MARKETER INITIATED TECHNIQUES USED TOSET UP CHANNELS OF INFORMATION AND
PERSUASION WITH TARGETED AUDIENCESTO INFLUENCE ATTITUDES AND BEHAVIOR
PromotionMessage and Media
MARKETING COMMUNICATIONS MIXTool Box of Media and TechniquesIntegration and CoordinationBased on Communications Model
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MAJOR OBJECTIVES OFMARKETING COMMUNICATIONS
Informing
Informing Persuading
Persuading
Reminding
Reminding
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MARKETING COMMUNICATIONS OBJECTIVES
Increase Market PenetrationDevelop Repeat Purchase Behavior Establish Customer RelationshipsIncrease Rate of Consumption
Encourage Product TrialStimulate Impulse BuyingStimulate DemandDifferentiate the ProductEstablish a Product ImageInfluence Sales Volume
Establish, Modify, or Reinforce AttitudesDevelop Sales LeadsStimulate InterestEstablish UnderstandingBuild Support & Acceptance
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ELEMENTS OF THEMARKETING COMMUNICATIONS MIX
1. Advertising
1. Advertising
2 . Public Relations
2 . Public Relations5 . Direct Marketing
5 . Direct Marketing
3 . SalesPromotion
3 . SalesPromotion4 . Personal Selling
4 . Personal Selling
Integrated Marketing Communications (IMC)is the strategic integration of multiple means of
communicating with target markets
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MARKETING COMMUNICATIONS PLANNING
Marketing Plan Review
Situation Analysis
Communications ProcessAnalysis
Budget Development
Program Development
Integration & Implementation
Monitoring, Evaluating,Controlling
METHODS
PUSH vs.
PULL
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Push and Pull Strategies
Push strategy is directed toward thechannel members Provide incentives for those in the
distribution channels to buy the product
Pull strategy is directed toward the
ultimate purchaser The focus is on creating demand at the
household or ultimate consumer level
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Approaches to Determining thePromotional Budget
Percentage of sales A fixed amount of money per past or projected
salesProbably the most widely used as it is simpleBut, what about cause and effect?
All available funds/All you can afford
Budget what is left over for promotionalexpendituresNew companies often put all available funds intopromotion to penetrate the marketBut, you can miss opportunities or overspend
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Approaches to Determining thePromotional Budget
Competitive parity/Follow the competition Adopt the average ratio for promotional expenses
to sales for the industry or main competitor; or thesame absolute amount as a competitor But, what if they do not know what they are doing and/or strategies and tactics are different?
Objective and task
1) Determine objectives; 2) Determine relationshipbetween expenditures and ability to achieveobjective; 3) Set a budget that allows theachievement of these goals
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Psychological ProcessesThe high involvement decision process
Need -> search -> evaluation -> purchase -> outcomes
The adoption process Awareness -> interest -> evaluation -> trial -> adoption -> post-adoptionconfirmation
Buyer readiness states/Hierarchy of effects Awareness -> knowledge -> liking -> preference -> conviction ->purchase
AIDA Awareness -> Interest -> Desire -> Action
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S election of the Promotional Mix
PRODUCT CHARACTERISTICS Industrial good/technical good
Need personal selling; customers want to receiveinformation, inspect and compare the products
Consumer package goods/frequently purchaseitems
Advertising and sales promotion to reach market Unit value
Low cost must use mass media approaches, with highunit cost personal selling is effective Customization
Customized often requires personal selling
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S election of the Promotional Mix
CUSTOMER CHARACTERISTCS Industrial versus consumer market
Consumers are easier to reach (decision maker) throughmedia sources; industrial buyers typically have a moreformal buying process, requiring personal selling
Number of customersFor a small number of customers, personal selling canplay a much more important role
Geographical dispersionNot only affects the type of promotional effort, but themedia choices
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Advertising Defined
ADVERTISING Any paid form of non-personal presentationand promotion of ideas, goods, or services
by an identified sponsor Magazines, newspaper, outdoor posters, directmail, radio televisions, etc.
Key issues The time or media space is paid for The sponsor is identified and has control over the
promotional activity
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DEVELOPING AN ADVERTISING CAMPAIGN
EvaluateAdvertising
Effective-ness
Select &Schedule
Media
DetermineAdvertising
Budget
DetermineAdvertisingObjectives
SelectTargetMarket
DesignCreativeStrategy
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ADVERTISING STRATEGY
MESSAGE STRATEGIESObjective vs. Subjective MessagesComparative Message TechniquesEmotional Techniques: Mood, Fear, Humor Celebrity Endorsements vs. Non-Celebrity Images
MEDIA STRATEGIESBroadcast: Television, RadioPrint: Newspapers, Magazines, JournalsSpecialized: Outdoor, Transit, Direct Mail, Internet
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ADVERTISING STRATEGY
RELATIVE STRENGTHS AND WEAKNESSES OFSTRATEGIES
Effectiveness and Efficiency: Reach andFrequencyTarget CapabilitiesCostBelievability
Appropriateness for Message (Image, Details)
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Reach & Frequency
Reach: number of different target consumerswho are exposed to a message at least once
during a specific period of timeFrequency: number of times an individual isexposed to a given message during a specificperiod of time
Cost per contact: cost of reaching onemember of the target market Allows comparison across advertising strategy
vehicles
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EVALUATING ADVERTISINGEFFECTIVENESS
Pretesting
Posttesting
Sales EffectivenessEvaluations
Tools:
F ocus GroupsScreeningPersuasion Scores
Tools:
Unaided Recall TestsAided Recall TestsInquiry Evaluations
Tools:
Monitor Sales
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PUBLIC RELATIONS
EFFORTS TO IMPROVE AND MANAGERELATIONSHIPS WITH PUBLICS
Customers
Stock HoldersCommunityGovernmentNews Media
PROACTIVE vs. REACTIVE
DuPont vs. ExxonPUBLICITY
Not Overtly SponsoredHigh Credibility
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PUBLIC RELATIONS
PressRelations
ProductPromotions
AdvisingManagement
CorporateCommunications Lobbying
Public Relations F unctions
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Personal S elling
PERSONAL SELLING Oral presentation in a conversation with one or more
prospective purchasers for the purpose of making asale
Personal selling represents the most popular promotional effort in terms of financial expendituresand number of people employed
Personal Selling is:(1) Dyadic, (2) Flexible, (3) Focused (personalized), and (4)Often results directly in a saleOther promotional elements move the customer toward thesale, personal selling closes the sale
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PERSONAL SELLING ANDSALES MANAGEMENT
FUNCTIONS AND CONTRIBUTIONS OF
PERSONAL SELLINGBoundary Spanner Role, RelationshipManagement ( Trust )Two-Way Information Channel (Diffusion
of Product and Market Information)Facilitate Exchange
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THE MARKETING-COMMUNICATIONS MIX:Relative Emphasis in Consumer and Business Markets
B USINESS MARKETS CONSUMER MARKETS
SALESFORCE
ADVERTISINGPROMOTIONSDIRECT MKT.
EMPHASIS EMPHASIS
COMPLEMENT
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PERSONAL SELLING ANDSALES MANAGEMENT
ROLES OF SALESPERSONPsychologistConsultantEducator / Teacher Problem Solver Team Leader
TYPES OF SELLING POSITIONS
New Business (Prospector)Existing Business (Order Taker)DetailingSupport (Marketing, Technical)
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STEPS IN THE SELLING PROCESS: A RELATIONSHIP APPROACH
INITIATING RELATIONSHIPSProspectingPre-Call Planning
Approach
DEVELOPING CUSTOMER RELATIONSHIPSSales Communications and PresentationsGaining and Managing Commitment
ENHANCING CUSTOMER RELATIONSHIPSFollow-Up
SupportTRADITIONAL vs. RELATIONSHIP APPROACHES
Consultative (needs-satisfaction) vs. Manipulative (product-focused)
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SALES MANAGEMENT ISSUES
RECRUITING AND HIRINGDifficult to Predict Success
DEPLOYMENTTerritory Design
AUTOMATIONUse of Technology to Link Buyer, Salesperson, andOrganizations (Customer RelationshipManagement and Supply Chain Management)
EVALUATION AND COMPENSATIONOutcome-Based vs. Behavior-Based
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Sales Promotion
SALES PROMOTION Those marketing activities - other than
advertising, public relations/publicity, andpersonal selling - that stimulate consumer purchasing and dealer effectiveness
Displays, shows and exhibitions, coupons,contests, samples
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THE GROWTH IN SALES PROMOTION
Consumer F actors
Accountability
Increased Retail Power
Impact of Technology
Short-Term F ocus
Reasons for the Growth in Sales Promotion:
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StimulateTrial
StimulateTrial
SupportF lexible PricingSupportF lexible Pricing
Increase
Consumption
Increase
ConsumptionNeutralize
CompetitorsNeutralize
Competitors
ComplementaryProducts
ComplementaryProducts
EncourageRepurchaseEncourage
Repurchase
ImpulsePurchasing
ImpulsePurchasing
OBJECTIVES OF CONSUMER PROMOTIONS
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CONSUMER SALES PROMOTION
TECHNIQUESPrice Deals
AdvertisingSpecialties Coupons
Sampling Rebates
Contests, Games,Sweepstakes
Premiums Cross-Promotions
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OBJECTIVES OF TRADE PROMOTIONS
Increase Reseller Inventory
InfluencePrice Discount
Defend AgainstCompetitors
Avoid PriceReductions
InfluenceReseller Promotion
Gain/MaintainDistribution
Increase Reseller Inventory
InfluencePrice Discount
Defend AgainstCompetitors
Avoid PriceReductions
InfluenceReseller Promotion
Gain/MaintainDistribution
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LIMITATIONS OF SALES PROMOTION
Cannot Reverse Declining SalesTrend
Cannot Reverse Declining SalesTrend
Cannot Overcome Inferior ProductCannot Overcome Inferior Product
May Encourage CompetitiveRetaliation
May Encourage CompetitiveRetaliation
May Hurt ProfitMay Hurt Profit
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Direct Marketing
Techniques used to get consumers tomake a purchase from their home,office or other nonretail setting Direct mail, catalogs, mail order,
telemarketing, electronic retailing
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TECHNIQUES OF DIRECT MARKETING
ElectronicMedia
Direct Selling
PrintMedia
BroadcastMedia
Direct Mail
Telemarketing