The Marketing Mix

M Y Leung, Cathy (MPhil)

 Promotion – Marketing
Communication & Promotional
Strategies

“The goal of promotion is to change the

pattern of demand for a product”
Learning Objectives
1. The Role of Promotion in the Marketing Mix
2. Different Forms of Promotion
3. The Concept of Integrated Marketing
Communication (IMC)
4. Factors affecting the Promotional Mix
5. Push Vs. Pull Strategies
 THE ROLE OF
PROMOTION IN THE
MARKETING MIX
• Promotion is communication by marketers
that informs, persuades, and reminds
potential buyers of a product in order to
influence their opinions or elicit a response
Role of Promotion in Marketing

Informing • Advertising
• Personal selling

Persuading • Publicity
• Public Relations

Reminding
 PROMOTIONAL STRATEGY
• Optimal use of the elements of promotion
• Consistent with the overall goals of the
marketing mix
• A coordinated plan
• An integral part of the marketing strategy
for reaching the target market
 Personal Selling – Inform, persuade
remind
– Person-to- – Flexible
person – Bi-directional
Direct presentation dialogue – Interpersonal
Face-to-face between buyer – Feedback
or phone and seller – Relationship
Most money spent – Purpose & building
Advantages
– Disadvantages – Expensive
– Time consuming
“Make it simple. Make it memorable. Make it inviting to look at
Make it fun to read” Leo Burnett

Advertising
– Communicate to large
– Non personal numbers of people
– Paid – Low cost per contact
– Promotion – Multiple media options
– Identified sponsor
Example: http://www.ogilvy.com
– Indirect
– Uniform message (some
ability to now customize in
interactive electronic
media)
Sales Promotion Sponsored
Demand stimulation
Incentives
– Time specific Trade promotions
– Provide incentives
for purchase – Coupons
behavior – Free goods with purchase
– Prizes or contests
– Not routine events
– Trips
– Aimed at – Fashion shows
customers, – Channel member displays or
training
salespeople or
channel members
 Variety of
Public Relations / communication efforts
Publicity Contribute to generally
Favorable attitudes
– Unpaid No specific sales message
message Publicity
– Less control – More factual than
over content persuasive
– Always – Can be positive or
involves a third negative
party – Frequently orchestrated
– Higher level of by the marketer
credibility – Systematically planned
and distributed to media
 The concept of Integrated
Marketing Communications (IMC)
• Ideally, marketing
communications form each
promotional mix element
(personal selling, advertising,
sales promotions, public
relations) should be integrated.
• The message reaching the
target consumer(s) should be
the same regardless of • Marketing managers must carefully
whether it is from an work out the roles the various
advertisement, a salesperson promotional elements will play in the
in the field, a magazine article, marketing mix.
or a coupon in a newspaper • Timing of promotional activities are
insert. coordinated and the results of each
campaign are carefully monitored to
improve future use of the promotional
mix tools.
 Integrated Marketing
Communications (Kotler)
 THE GOALS AND TASKS OF
PROMOTION: INFORM
• Inform
• A better mousetrap is of limited value unless
consumers know that it exists, where it can be
purchased, the price, and product details.
• Essential for the existence of a free enterprise
system
• Results in an improved standard of living
 THE GOALS AND TASKS OF
PROMOTION: INFORM
• Inform (CONTINUED)
• Increase brand awareness
• Explaining how a product works
• Suggesting new uses for a product
• Building a company image
THE GOALS AND TASKS OF
PROMOTION: PERSUADE
• Promotion persuades
– Persuasion that
encourages
purchases or attitude
change is a primary
goal of promotion
– Influence customers
to buy now
– Persuading
customers to call
THE GOALS AND TASKS OF
PROMOTION: REMIND
• Promotion Reminds
– Maintain store or brand “You’re in good
loyalty hands with……”
– Combat competitor’s
persuasive messages “We’re ready
when you are.”
– Increase product
awareness and usage
– Reminding customers
where to buy the product
PROMOTIONAL GOALS AND
THE AIDA CONCEPT
• Attention Interest
Desire Action
Steps
ACTION
• The AIDA concept
assumes that DESIRE
promotion propels
consumers along INTEREST
these steps in the ATTENTION
decision process.
Evaluating IMC

Awareness of company
or brand

Interest in a product or
brand

Action:
usage or responses
THE COMMUNICATION
PROCESS

OBJECTIVE

ENCODING = DECODNG
Determining the Promotional Mix
STRATEGIC DECISIONS

Target Audience
Promotion Objectives
Nature of product

Product Life Cycle Stage

Available money
 FACTORS AFFECTING THE
PROMOTIONAL MIX
• Nature of the product • Business or
• Stage in the Product Life consumer
Cycle product?
• Target market • Costs and risks
Characteristics associated with
• Type of buying decision purchase?
• Convenience,
• Available funds
shopping or
• Push vs Pull strategies specialty good?
 FACTORS AFFECTING THE
PROMOTIONAL MIX
• Nature of the product • Introduction =
informational
• Stage in the Product
• Growth & maturity =
Life Cycle persuasive and
• Target market brand
Characteristics • Maturity = reminder
• Type of buying and persuasive
decision • Decline = limited
• Available funds promotion of any
kind
• Push vs Pull strategies
 FACTORS AFFECTING THE
PROMOTIONAL MIX
• Nature of the product • Level of
• Stage in the Product product
Life Cycle knowledge
• Target market • Degree of
brand loyalty
Characteristics
• Geographical
• Type of buying
dispersion
decision
• Commonality
• Available funds of behavioral
• Push vs Pull strategies characteristics
 FACTORS AFFECTING THE
PROMOTIONAL MIX
• Nature of the product • Routine or
• Stage in the Product complex buying
Life Cycle decision
• Target market • Automatic re-buy
Characteristics or new purchase
task
• Type of buying
• Level of personal
decision or professional
• Available funds involvement
• Push vs Pull strategies
 FACTORS AFFECTING THE
PROMOTIONAL MIX
• Nature of the product • Promotional
• Stage in the Product budget may
Life Cycle dictate possible
parameters
• Target market
• Optimize return
Characteristics
on promotional
• Type of buying dollars
decision • Minimize costs
• Available funds per contact
• Push vs Pull strategies dollar
generated
 Push vs. Pull
Promotion Strategy (Kotler)

Push strategy: trade promotions and personal selling efforts push the
product through the distribution channels.

Pull strategy: producers use advertising and consumer sales promotions to

generate strong consumer demand for products.
 PUSH AND PULL
STRATEGIES
• Promotion may •PULL Promote to final
be aimed at the consumer; encourage
final consumer them to ask their local
retailers to carry the
or a channel
good
member
•PUSH Promote to
channel members to gain
distribution; promise
promotional support and
strong final consumer
demand