Week 9 – Marketing Principles

PROMOTION – INTEGRATED MARKETING

COMMUNICATIONS AND THE PROMOTION MIX
(Part B)

Public Relations
1.News

2.Speeches: can also create product and company publicity.

3.Special events: news conferences, press tours, or educational programs designed to reach and interest
target publics.

4.Written materials: annual reports, brochures, articles, and company newsletters, magazines, media
kits and Sustainability (green reports) to show how the brand gives back to the people and planet.

5.Corporate Identity: help create a corporate identity that the public immediately recognizes.

6.Public Service Activities/Corporate Social Responsibility: Companies can improve public goodwill by
contributing money and time to Public Service Activities and Corporate Social Responsibility (CSR).

-Taking a position on important social issues

-Providing support for charities

-Being a good neighbor to the community

7.Audio Visual Materials such as slide-and-sound programs, DVDs are being used increasingly as
communication tools. These are great for B2B trade shows where you can display content on TV screens
in your booth.

8.Buzz marketing: is cultivating opinion leaders and getting them to spread information about a product
or service to others in their communities.

Sales Promotion (Mainly focus on Consumer Promotions)

Consumer promotions: Urge short-term customer buying or to enhance customer brand involvement.

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1.Samples offer a trial amount of a product.

2.Coupons/Vouchers are certificates that give buyers a saving when they purchase specified products.
Make sure to provide rules - “Conditions apply”/“Exceptions” to avoid “Extreme Couponing”.

3.Cash refunds are similar to coupons except that the price reduction occurs after the purchase. Tax
Refund for purchasing at select retail stores after submitting documentation and receipts at the airport.

4.Price packs are sales promotions that provide consumers with a reduced price that is marked directly
on the package by the manufacturer. Here two or more products are given together at the price of one
or at discounted rates. Discount offers consumers savings off the regular price of a product.

5.Premiums are goods offered either free or at low cost as an incentive to buy a product. A premium
may come inside the package (in-pack), outside the package (on-pack) or through the mail. Premiums
could be promotional items — toys, collectables, souvenirs and household products or any related
products to the main one.

6.Advertising specialties are useful articles imprinted with the advertiser’s name, logo, or message that
are given as gifts to consumers (T-shirts, pens, mouse pads, bags, caps, etc.)

7.Point-of-purchase promotions include displays and demonstrations that take place at the point of
sales.

8.Contests, sweepstakes, and games give consumers the chance to win something—such as cash, trips,
or goods—by luck or through extra effort.

Contests require an entry by a consumer

Sweepstakes require consumers to submit their names for a drawing

Games present consumers with something that may or may not help them win a prize

9.Patronage Reward are cash or other awards offered for the regular use of a certain company’s
products/ services.

Direct/Online Marketing
The use of Online and Digital media

The fastest growing form of marketing

Conducted in ‘real-time’, 24/ 7

Personalized, customized

Direct marketing consists of connecting directly with carefully targeted consumers, often on a one-to-
one, interactive basis.

Using detailed customer databases, companies tailor their marketing offers and communications to the
needs of narrowly defined segments or individual buyers.

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●Direct Marketing & Customer Relationship Management

Customer relationship management (CRM) is a term that refers to practices, strategies and technologies.

Companies use CRM to manage and analyze customer interactions and data throughout the customer
lifecycle/ customer journey.

The goal is improving customer/ business relationships with customers, assisting in customer retention
and driving sales growth

●Benefits of Direct Marketing

Benefits to Sellers Benefits to Buyers

Low cost Convenient
Efficient Easy/Private
Speedy Wealth of products
Flexible Informative
Accessible Interactive
Immediate Immediate

●Direct Mail

Involves sending an offer, announcement, reminder, or other item to a person at a physical or virtual
address.

New digital forms of delivery have become popular, including e-mail and mobile (cell phone) marketing.

Traditional printed catalogue – bound piece of at least eight pages, selling multiple products, and
offering a direct ordering mechanism.

Advantages – Creates emotional connections with customer

Catalogs are going digital. A variety of mobile/ web-only catalogers have emerged

Most print catalogers have added Web-based catalogs.

●Kiosk

Kiosks allow customers to order merchandise not carried in the store or to facilitate customization of the
product or enhance customer experience.

Most services use Kiosks for self-service delivery.

●Online/CRM Technologies

Direct response TV

Quick response (QR) codes

Personal Selling

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-Linking the Company with its Customers

-The sales force serves as a critical link between a company and its customers.

+They represent the company to customers.

+They represent customers to the company

-Face to Face

-The interpersonal part of the promotion mix.

-The term salesperson covers a wide range of positions.

+Shop sales staff, order taker

+Customer sales representative

+Counselors, advisers

 Telephone Marketing involves using the telephone to sell directly to consumers and business
customers.

 Business-to-business marketers also use telephone marketing extensively, accounting for more
than 55% of all telephone marketing sales.

 Outbound telephone marketing is used to sell directly to consumers and businesses. Focusing
on managing existing customer relationships through “opt-in” calling systems.

 Inbound toll-free numbers are used to receive orders from television and print ads, direct mail,
or catalogues. Unique toll free numbers also receive complaints and suggestions

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