Promotion: Integrated Marketing Communications

To Accompany Basic Marketing, 14th Edition by William D. Perreault, Jr. and E. Jerome McCarthy

Your host: David J. Urban Professor of Marketing Virginia Commonwealth University

Marketing Strategy Planning Process

Narrowing down to focused strategy with quantitative and qualitative screening criteria

Customers
Needs and other Segmenting Dimensions

Targeting & Segmentation S. W. O. T.

Company
Mission, Objectives, & Resources

Positioning & Differentiation

Competitors
Current & Prospective

External Market Environment
Technology Political & Legal Social & Cultural Economic

Promotion: Integrated Marketing Communications

Strategy decisions to blend:
• Personal Selling • Sales Promotion • Advertising

• Publicity

Promotion Options and Features Vary in International Markets

Illustrative Differences
Advertising:
Regulations/government controls Available media Literacy rates

Promotion Options and Features Vary in International Markets

Illustrative Differences
Advertising:
Regulations/government controls Available media Literacy rates

Personal selling:
Negotiation norms, cultural influences, trust

Promotion Options and Features Vary in International Markets

Illustrative Differences
Advertising:
Regulations/government controls Available media Literacy rates

Personal selling:
Negotiation norms, cultural influences, trust

Sales Promotion:
Distribution alternatives Perceptions

The Traditional Communication Process

Source

Encoding

Receiver

The Traditional Communication Process

Source

Encoding

Message Channel

Decoding

Receiver

The Traditional Communication Process

Source

Encoding

Message Channel

Decoding

Receiver

Feedback

The Traditional Communication Process

Source

Encoding

Message Channel

Decoding

Receiver

Noise

Feedback

Integrated Marketing Communications

Integrating Promotion Plans

Personal Selling Sales Promotion Advertising Publicity
Wholesaler Promotion Push

Producers’ Promotion Blend
Promotion (Push) to Channel Members

Wholesaler Promotion Push
Retailer Promotion Push

Integrating Promotion Plans

Promotion to users, buyers, influencers, etc.

Personal Selling Sales Promotion Advertising Publicity
Wholesaler Promotion Push

Producers’ Promotion Blend
Promotion (Push) to Channel Members

Wholesaler Promotion Push
Retailer Promotion Push

Promotion to final consumers

Business Customer Pull

Final Consumer Pull

Promotion Objectives

Informing

Persuading

Basic Promotion Objectives

Reminding

The Adoption Curve
Innovators (3-5%)
90

Early Adopters (10-15%)

Percent Adoption

50

20

5 0

Time

The Adoption Curve
Innovators (3-5%)
90

Early Adopters (10-15%)

Early Majority (34%)

Late Majority (34%)

Laggards/ Nonadopters (5-16%)

Percent Adoption

50

20

5 0

Time

Setting the Promotion Budget

Percentage of Sales

Task Method

Primary Methods for Setting the Promotion Budget

Competitive Matching

Budget from Uncommitted Resources

Budget by Sales Unit

Advertising Strategy Decisions

Who Will Do the Work?
Objectives/ Target Audience? Kind of Advertising to Use?

Which Media to Use?

What to Say?

Does It Work?

Who Will Do the Work?

Key Considerations

Advertising agencies vs. in-house
•Control, cost and expertise

Who Will Do the Work?

Key Considerations

Advertising agencies vs. in-house
•Control, cost and expertise

Agency characteristics
• Global, local, specialists, generalists…

Who Will Do the Work?

Key Considerations

Advertising agencies vs. in-house
•Control, cost and expertise

Agency characteristics
• Global, local, specialists, generalists…

Partner or scapegoat?

Setting Specific Advertising Objectives
Introduce New Products
Obtain Outlets Support Sales Force

Setting advertising objectives that support strategy decisions

Setting Specific Advertising Objectives
Introduce New Products
Obtain Outlets Support Sales Force Position Brands

Setting advertising objectives that support strategy decisions

Get Immediate Action

A Competitive/Comparative Ad

Setting Specific Advertising Objectives
Introduce New Products
Obtain Outlets Support Sales Force Position Brands

Setting advertising objectives that support strategy decisions

Get Immediate Action
Ongoing Contact Maintain Relationships

Advertising Choices

Pioneering

Competitive

Kinds of Advertising

Reminder

Competitive Advertising

Direct Marketing

Advantages of Direct Marketing

Direct Marketing

Breaks through ad clutter

Better targeting reduces waste

Choosing Media

Newspapers

Major Types of Media

Choosing Media

Newspapers

Television Major Types of Media Radio

Choosing Media

Newspapers

Television Major Types of Media Radio

Direct Mail

Choosing Media

Newspapers

Television Major Types of Media Radio

Magazines

Direct Mail

Choosing Media

Choosing Media

Newspapers

Television Major Types of Media Outdoor Radio

Magazines

Direct Mail

Choosing Media

Newspapers

Internet Major Types of Media Outdoor

Television

Radio

Magazines

Direct Mail

Advertising and the Internet

Message Development

The AIDA Concept:
Steps an individual goes through on way to adopting a product or idea

Attention

Interest

Desire

Action

Personal Selling Strategy Decision Areas
Number and kind of salespersons needed

How to compensate, motivate, and control

Key Considerations

How sales effort would be allocated

What skills (including personal selling techniques) will be involved

Allocating the Sales Effort

By geographic area

Key Considerations

Allocating the Sales Effort

By geographic area

Key Considerations

By product

Allocating the Sales Effort

By geographic area

Key Considerations

By product

By customer or account type
- National accounts - Telemarketing

Allocating the Sales Effort

By geographic area

By nature of customer’s problem
- Selling teams

Key Considerations

By product

By customer or account type
- National accounts - Telemarketing

Basic Sales Tasks

OrderGetting Basic Sales Tasks

Basic Sales Tasks

OrderGetting Basic Sales Tasks

OrderTaking

Basic Sales Tasks

OrderGetting Basic Sales Tasks

OrderTaking

Supporting

Financial Issues in Motivating/Controlling the Sales Force

Incentive vs. control

Key Considerations

Financial Issues in Motivating/Controlling the Sales Force

Incentive vs. control

Key Considerations

Flexibility

Simplicity

Method of Payment

Straight Salary Basic Methods of Payment

Method of Payment

Straight Salary Basic Methods of Payment

Straight Commission

Method of Payment

Straight Salary Basic Methods of Payment

Straight Commission

Combination Plan

Skill Requirements for the Sales Force

What Skills Do Salespeople Need
– Job descriptions may differ

Skill Requirements for the Sales Force

What Skills Do Salespeople Need
– Job descriptions may differ

Sales Training Can Help!
– Company policies – Products – Customer applications/needs – Personal selling techniques – Sales presentations

Types of Presentation Approaches

Prepared Approach

Three Presentation Approaches

Types of Presentation Approaches

Prepared Approach

Three Presentation Approaches

Consultative Approach

Consultative Selling

Types of Presentation Approaches

Prepared Approach

Three Presentation Approaches

Consultative Approach

Selling Formula Approach

Sales Promotion

Advantages and Limitations of Different Types of Sales Promotion

+
Increase Immediate Sales

To Final Consumers

Types of Sales Promotion To Middlemen or Employees

May Decrease Long-Term Sales or Make Buyers "Promotion Dependent"

+
May Increase Quantity Bought or Effort Expended

-

May Hurt Everyday Effort

Marketing Strategy Planning Process

Narrowing down to focused strategy with quantitative and qualitative screening criteria

Customers
Needs and other Segmenting Dimensions

Targeting & Segmentation S. W. O. T.

Company
Mission, Objectives, & Resources

Positioning & Differentiation

Competitors
Current & Prospective

External Market Environment
Technology Political & Legal Social & Cultural Economic

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