Marketing Communications Decisions

• Know the tools of the marketing communications mix.Learning Objectives • Understand the process and advantages of integrated marketing communications. .

and compelling message about the organization and its products. . consistent.INTEGRATED MARKETING COMMUNICATION-Definition • Integrated Marketing Communications • The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear.

Marketing Communication Mix • • • • Product communicates Price communicates Place (point of sale) communicates Promotion communicates Advertising Personal Selling Sales Promotions Publicity .

sales promotion. • The promotional elements include: advertising. publicity. personal selling. .Definition: Promotion Mix • The combination of one or more of the promotional elements a firm uses to communicate with consumers.

Common communication platforms Advertising Sales promotion Public relations Personal selling Direct Marketing Print Contest Speeches Sales presentations Catalog Electronic Lotteries Seminars Sales meetings Telemarketing Outdoor Free Gifts Conferences Electronic Shopping Transit Coupans Annual reports TV Shopping Rebates Charitable donations Fax Low interest financing Publications email Fair & shows Company magazine Voice mail .

often with high frequency Low cost per exposure. one-way communication . may stimulate short-term sales Impersonal.Promotion Mix Elements • • • • • Advertising Personal Selling Sales Promotion Public Relations Direct Marketing • • • • • • Reaches large. though overall costs are high Consumers perceive advertised goods as more legitimate Dramatizes company/brand Builds brand image. geographically dispersed audiences.

and actions Personal interaction allows for feedback and adjustments Relationship-oriented Buyers are more attentive Sales force represents a long-term commitment Most expensive of the promotional tools • • • • • . convictions.Promotion Mix Elements • • • • • Advertising Personal Selling Sales Promotion Public Relations Direct Marketing • Most effective tool for building buyers’ preferences.

dramatizes offers. coupons. offers strong purchase incentives. Attracts attention. contests. boosts sagging sales Stimulates quick response Short-lived Not effective at building long-term brand preferences • • • • • . etc.Promotion Mix Elements • • • • • Advertising Personal Selling Sales Promotion Public Relations Direct Marketing • May be targeted at the trade or ultimate consumer Makes use of a variety of formats: premiums.

etc. events and sponsorships.Promotion Mix Elements • • • • • Advertising Personal Selling Sales Promotion Public Relations Direct Marketing • • Highly credible Many forms: news stories. news features. Reaches many prospects missed via other forms of promotion Dramatizes company or benefits Often the most underused element in the promotional mix • • • .

etc. • Three distinctive characteristics: • Immediate • Customized • Interactive • Well-suited to highly targeted marketing efforts .Promotion Mix Elements • • • • • Advertising Personal Selling Sales Promotion Public Relations Direct Marketing • Many forms: Telephone marketing. online marketing. direct mail.

wholesalers. Cooperative Advertising. • Pull Strategy: • Promotion Activities directed to consumers . Displays. • Ex: Trade Promotions.Promotion Mix Strategy • Push Strategy: • Promotion Activities directed to channel members – example: retailers.

PROCESS FOR EFFECTIVE COMMUNICATION The promotion decision process .

PROMOTION BUDGET Setting the Promotion Budget: • Percentage of Sales • Competitive Parity (Matching Competitors or Share of Market) • All You Can Afford • Objective and Task – Ideal Approach .

• Sales Promotion – short term demand creation • PR – low cost. • Personal Selling – complex messages. frequency.DEVELOPING THE PROMOTION PROGRAM Selecting the Right Promotional Tools: • Advertising – high reach. simple messages. • Direct Marketing – Highly targeted. complex messages. targeted. persuasive. image/awareness building. demand creation . two way communication. credible.

Decline  Promotion objectives differ across cycle . Maturity.DEVELOPING THE PROMOTION PROGRAM Selecting the Right Promotional Tools: • Product Life Cycle  Introduction. Growth.

Promotional tools used over the product life cycle of Purina Dog Chow Slide 18-28 .

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