What are the Marketing Mix You studied so far ????
Product Price Distribution PromotionStrategic Marketing Planning, Management must design a Marketing mix.
The combination of a Product ,Price and
Distribution of products to the consumer
and what are the Promotion Strategies used ?
Part VI Promotion Integrated Marketing
Communication. Chapter 17
Personal Selling and Sales Management Chapter 18
Advertising Sales Promotion and Public Relations. Chapter 19
Chapter 17 Integrated Marketing Communication
Chapter GoalsI. The role of promotion in marketing.II. Promotion methods.III. Integrated marketing communications (IMC)—
a strategic business process used to plan, develop, execute, and evaluate coordinated communication with an organization’s publics.
IV. The communication process and promotion.V. Determining the promotional mix—an
organization’s combination of personal selling, advertising, sales promotion, and public relations.
VI. The promotion budget.VII. Regulation of promotion.
I. The role of promotion in marketing.A. Promotion and imperfect competition.1. Firms use promotion in an environment of
imperfect competition to provide information for the buyer’s decision-making process, to differentiate the product, and to persuade prospective buyers.
2. Promotion may also affect demand elasticity for a product.
B. Promotion and marketing—The roles of promotion are to inform, persuade, and remind current and prospective customers and other audiences about a company and its products.
Role of Promotion in Marketing
Promotion and
Imperfect Competition
Goal of Promotion
Role of Promotion in Marketing
Promotion and
Marketing
Persuading
Informing
Reminding
II. Promotion methods.
Coordinated to accomplish
objectives
Advertising SalesPromotion
PersonalSelling
PublicRelations
DirectMarketing
Sales Promotion
Public Relations
SponsoredDemand stimulation
IncentivesTrade promotions
Variety of communication effortsContribute to generally
Favorable attitudesNo specific sales message
Publicity
Personal Selling
Advertising
Direct presentationFace-to-face
or phoneMost money spent
Non PersonalPaid
SponsorPromotion
Day before we learned ….The role of promotion from economic and marketing perspective…..The Promotional Methods ..
All Promotion methods must be integrated and coordinated to achieve the over all marketing and organizational objective.
Coordinated to accomplish
objectives
Advertising SalesPromotion
PersonalSelling
PublicRelations
DirectMarketing
III. Integrated marketing communications
Integrated Marketing Communication is A strategic business process
Used
to plan, develop, execute, and evaluateCoordinated communication
with an organization’s public
There are four stages follow in IMC Program
Plan Develop, Execute, Monitor and Evaluate
All Coordinated Communication
Promotional Program Situation Analysis
Analysis of the Communications Process
Budget Determination
Develop Integrated Marketing Communications Programs
Review of Marketing Plan
AdvertisingSales
PromotionPR/
PublicityPersonalSelling
DirectMarketing
AdvertisingObjectives
SalesPromotionObjectives
PR/Publicity
Objectives
PersonalSelling
Objectives
DirectMarketingObjectives
MessageStrategy
SalesPromotionStrategy
PR/PublicityStrategy
PersonalSelling
Strategy
DirectMarketingStrategy
Integration & Implementation of Marketing Communications Strategies
Monitor, Evaluate & Control Promotional Program
Internet/Interactive
Internet/InteractiveObjectives
Internet/InteractiveStrategy
Integrated Marketing Communications Planning Model
Marketers need to thing from …..
A .An audience perspective An IMC approach is plan of
communication to a target audience about the company, product, or brand information and utilizing multiple promotion methods in a coordinated way to communicate the appropriate message through various promotional methods.
B. IMC Elements1.An awareness of the target audience’s
information sources, media habits, preferences.
2.An understanding of what the audience knows and believes that relates to the desired response.
3.The use of multiple promotional tools, each having specific objectives, but all linked to a common goal.
4.Coordination of all promotional tools to create a continuous flow of information adapted to an audience’s information needs.
C .Implementing IMC.
IMC comprises the entire promotional program.
IMC program may incorporate several different promotional campaigns, with some even running concurrently. Depending upon the objective to be Achieved and funds available a firm may take up one campaign simultaneously
At local, regional and national or at international level.
exam_results.wmv
D.Evaluating IMC
More rigorous evaluation examine Results of the IMC Program. The outcome of each promotional program is compared with the set objectives.
Awareness of company or brand.Knowledge of company or brand.Interest in a product or brand.Action: Usage or Responses
E.Barriers to IMC.
1.In some companies, promotion activities are not fully supported.
2.Some companies believe that designing and evaluating promotion is too inaccurate to coordinate.
3.Some firms are resistant to change and IMC requires changes:
A . Restructuring internal communication to ensure coordination and cooperation.
B . Conducting the research necessaryto understand the target audience.
C .Top management must support the efforts to integrate promotionactivities.
IV. The communication process and promotion.
IV. The communication process and promotion.
A. Communication is the verbal or nonverbal transmission of information between someone wanting to express an idea and someone else expected or expecting to get the idea.
B. Four elements of communication
a message, a message source, a communication channel, and a receiver.
V. Determining the promotional mix
an organization’s combination of personalselling, advertising, sales promotion, and public relations.A. Target audience.B. Promotion objectives C. Nature of the product.D. Stage in the product life cycleE. Funds available
A .Target audience.1.Push strategy—when a promotion
program is targeted primarily at middlemen; intent is to get middlemen to carry and promote the product.
2.Pull strategy—when a promotion program is targeted primarily at end users; intent is to create a demand among consumers that stimulates them to ask retailers to carry the product(s).
A .Target Audience.
Information Flow
A . Target Audience.
Push PolicyPush Policy
ProducerProducer
RetailerRetailer
ConsumerConsumer
WholesalerWholesaler
Pull PolicyPull Policy
ProducerProducer
WholesalerWholesaler
RetailerRetailer
ConsumerConsumer
Information Flow
A . Target Audience.
Push PolicyPush Policy
ProducerProducer
RetailerRetailer
ConsumerConsumer
WholesalerWholesaler
"Push" TechniquesPoint of sale displays, racks, standsTrade deals, special displaysDealer premiums, prizes, giftsCooperative advertising deals
“Subway” “KFC” “Macdonald”Advertising materials, mats, insertsPush money, catalogs, manualsTrade shows, conventions, meetings
Information Flow
A . Target Audience.
Pull PolicyPull Policy
ProducerProducer
WholesalerWholesaler
RetailerRetailer
ConsumerConsumer
"Pull" Techniques to End Users.. may it be B to C or B to B
Sampling, free trial Coupons Premiums or gifts Contests, sweepstakes Price-off deals Refunds/rebates Frequency/loyalty programs Point-of-purchase advertising
B.Promotion objectives : Determined by which stage of the hierarchy ofeffects the target is found.
1.Awareness : Objective is to let buyers know a product
or brand exists and to build familiarity.2.Knowledge :Objective is to inform buyers about
product features and benefits.3.Liking : Objective is to create positive attitudes
towards the product or brand.4. Preference : Objective is to persuade buyers to find
the product or brand more attractive than other alternatives.
5. Conviction : Objective is to bring out a commitment to purchase from buyers.
6.Purchase : Objective is for buyer to follow through with an actual sale.
C. Nature of the product.
D. Stage in the product life cycle.
E. Funds available—amount of money available for promotion is the ultimate determinant of the promotion mix.
VI. The promotion budget.
What is the PercentageOf Sales ?
Taskor
Objective
FollowingCompetition
AllAvailable
Funds
VI. The promotion budget.A. Promotional budgets are difficult to
determine since: 1.Management may lack standards for
determining how much to spend altogether and how much to spend on specific activities.2. It is difficult to assess the results of promotional expenditures.
B. Percentage of sales method: Budget is determined as a percentage of past or anticipated sales.
C . All-available-funds method for Promotion:
D. Follow-competition method : the firm matches the promotional expenditures of competitors on some proportional level.
E. Task or objective method : firm decides what objectives the promotional program should achieve and the tasks necessary to do so, and then determines the expenditures required.
VII. Regulation of Promotion
Central, State,
Regional , Local
A . Federal Regulation : applies to firms engaged in interstate commerce.
B . Federal Trade Commission options in response to potential or actual violations include:
C . Other federal agencies regulating promotional activities.
D . State and local regulation.
E . Regulation by private organizations.