Promotion

-
Integrated Marketing
Communications Strategy

1
The Marketing & Promotional
Mixes
Marketing Mix:
• Product or Service
• Pricing
• Channels of Distribution
• Promotion
Promotional Mix:
• Advertising
• Direct Marketing
• Interactive/internet marketing
• Sales Promotion
• Publicity/Public Relations
• Personal Selling
 Advertising
Any
Anypaid
paidform
formof
of non-personal
non-personalcommunication
communication
about
about an
anorganization,
organization, product,
product, service,
service, idea
idea
or
orcause
causebybyan
anidentified
identifiedsponsor.
sponsor.

Advantages of advertising Disadvantages of advertising

◦ Advertiser controls the message
◦ Cost effective way to communicate with
large audiences
◦ Effective way to create brand images and
symbolic appeals
◦ Often can be effective way to strike
responsive chord with consumers
◦ High costs of producing and running ads
◦ Credibility problems and consumer
skepticism
◦ Clutter
◦ Difficulty in determining effectiveness
 Direct Marketing
AAsystem
systemof of marketing
marketingbybywhich
which
organizations
organizationscommunicate
communicatedirectly
directly
with
withtarget
target customers
customerstotogenerate
generateaa
response
responseand/or
and/oraatransaction.
transaction.

Advantages of direct marketing

Changes in society have made consumers
more receptive to direct-marketing
Allows marketers to be very selective and
target specific segments of customers
Messages can be customized for specific
customers.
Effectiveness easier to measure
Disadvantages of direct marketing
Lack of customer receptivity and
very low response rates
Clutter (too many messages)
Image problems – particularly
with telemarketing
 Interactive/Internet Marketing

AAform
formof
ofmarketing
marketingcommunication
communicationthrough
throughinteractive
interactivemedia
media
which
whichallow
allowforforaatwo-way
two-wayflow
flowofofinformation
informationwhereby
wherebyusers
users
can
canparticipate
participateininand
andmodify
modifythe
thecontent
contentof
ofthe
theinformation
informationthey
they
receive
receiveininreal
realtime.
time.
Advantages of interactive/ internet Disadvantages of interactive/
marketing
internet marketing
Can be used for a variety of IMC functions ◦ Internet is not yet a mass medium
as many consumers lack access
Messages can be tailored to specific ◦ Attention to Internet ads is very
interests and needs of customers low
◦ Great deal of clutter on the
Interactive nature of the Internet leads to Internet
higher level of involvement ◦ Audience measurement is a
problem on the Internet
Can provide large amounts of information
to customers.
 Sales Promotion
Marketing
Marketingactivities
activitiesthat
that provide
provideextra
extravalue
valueoror
incentives
incentivesto tothe
thesales
salesforce,
force, distributors,
distributors, or
or
ultimate
ultimateconsumers
consumersand andcan
canstimulate
stimulate
immediate
immediatesales. sales.
Consumer-oriented
◦ Targeted to the ultimate users of a Trade-oriented
product or service ◦ Targeted toward marketing
◦ Coupons intermediaries such as retailers,
◦ Sampling wholesalers, or distributors
◦ Promotion allowances
◦ Premiums
◦ Rebates ◦ Merchandise allowances
◦ Contests ◦ Price deals
◦ Sweepstakes ◦ Sales contests
◦ POP materials ◦ Trade shows
Publicity
Nonpersonal communication
Nonpersonal communicationregarding
regardinganan
organization, product,
organization, product, service,
service, or
oridea
ideanot
not
directlypaid
directly paidfor
foror
orrun
rununder
underidentified
identified
sponsorship.
sponsorship.

Advantages of publicity
◦ Credibility
◦ Low cost (although not totally free)
◦ Often results in word-of-mouth
Disadvantages of publicity
◦ Not always under control of organization
◦ Can be negative
Public Relations
Themanagement
The management function
functionwhich
whichevaluates
evaluatespublic
public
attitudes, identifies
attitudes, identifiesthe
thepolicies
policiesand
andprocedures
proceduresofof
anindividual
an individualor
ororganization
organizationwith
withthe
thepublic
publicinterest,
interest,
andexecutes
and executesaaprogram
programof of action
actiontotoearn
earnpublic
public
understandingand
understanding andacceptance.
acceptance.

Tools used by Public Relations

 Publicity
 Special publications
 Community activity participation
 Fund-raising
 Special event sponsorship
 Public affairs activities
 Personal Selling
Direct
Direct person-to-person
person-to-personcommunication
communicationwhereby
wherebyaa
seller
sellerattempts
attemptsto
toassist
assist and/or
and/orpersuade
persuadeperspective
perspective
buyers
buyerstototo
topurchase
purchaseaaproduct
product or
orservice.
service.
Advantages of personal selling Disadvantages of personal selling
◦ Direct contact between buyer and seller◦ High costs per contact
allows for more flexibility
◦ Expensive way to reach large audiences
◦ Can tailor sales message to specific
needs of customers ◦ Difficult to have consistent and uniform
◦ Allows for more direct and immediate message delivered to all customers
feedback
◦ Sales efforts can be targeted to specific
markets and customers who are best
prospects.
Promotional Management
Coordinating
Coordinatingthe
thepromotional
promotionalmix mix
elements
elementstotodevelop
developaacontrolled,
controlled,
integrated
integratedprogram
programofof effective
effective
marketing
marketingcommunications.
communications.

Considerations for developing the

promotional program include:
 Type of product
 Buyer’s decision process
 Stage of product life cycle
 Channels of distribution
 Definition of Integrated
Marketing Communications

A concept of marketing communications planning that

recognizes the added value of a comprehensive plan that
evaluates the strategic roles of a variety of communication
disciplines and combines these disciplines to provide clarity,
consistency and maximum communications impact.
 Reasons For Growing Importance of
IMC
Shift from media advertising to other forms of marketing
communication
Movement away from advertising focused- approaches that emphasize
mass media .
For example: Lifebuoy Roti Campaign
https://www.youtube.com/watch?v=HgiA2nBPHlk
Rapid growth of database marketing
Demands for greater ad agency accountability
Rapid growth of the Internet
Increasing importance of branding
 Integrated Marketing Communications Planning Model

Review of Marketing Plan

Promotional Program Situation Analysis

Analysis of the Communications Process

Budget Determination

Develop Integrated Marketing Communications Programs

Sales PR/ Personal Direct Internet/

Advertising
Promotion Publicity Selling Marketing Interactive

Advertising Sales PR/ Personal Direct Internet/

Promotion Publicity Selling Marketing Interactive
Objectives Objectives Objectives Objectives Objectives Objectives

Message Sales PR/ Personal Direct Internet/

Promotion Publicity Selling Marketing Interactive
Strategy Strategy Strategy Strategy Strategy Strategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

 The Marketing Plan
A document that describes the overall marketing strategy
and programs developed for a company, product or
brand. The plan includes:
A detailed situation analysis
Specific marketing objectives
A marketing strategy and program that includes selection of a
target market and plans for marketing mix elements
A program for implementing the strategy
A process for monitoring and evaluating performance
 Situation Analysis
Internal Factors
◦ Assessment of the firm’s promotional organization and
capabilities
◦ Review of the firm’s previous promotional programs
◦ Assessment of firm or brand image and implications for
promotion
◦ Assessment of relative strengths and weaknesses of
product/service
For example: Dettol no touch hand-wash system
https://www.youtube.com/watch?v=rF9pEh9i-UY
External Factors
◦ Customer analysis (Vodafone M-Pesa)
◦ Competitive analysis
◦ Environmental analysis
 IMC Program Situation Analysis
External Factors
Environmental analysis
◦ Technological Political/Legal
◦ Demographic Socio/Cultural
◦ Economic

Competitive Analysis
◦ Direct and indirect competitors
https://www.youtube.com/watch?v=-9IU1xNGW5U
◦ Position relative to competitors
◦ Size of competitors’ advertising/promotional budgets
◦ IMC strategies being used by competitors
 IMC Program Situation Analysis
External Factors
Customer Analysis
Who buys our product or service?
Who initiates and makes the decision?
who influences the process?
How is the purchase decision made?
What attributes or criteria are important to customers?
What are customers’ perceptions of and attitudes
toward our company, product/service or brands?
What factors influence the decision making process?
Contact points where customers can be reached?
 Analysis of Communications
Process
 Analyze response process of customers
in the target audience.

 Analyze best combination of source,

message and channel factors for
communicating with target audience.

 Establish communication goals and objectives.

Response Hierarchy Models
Teaser examples
https://www.youtube.com/watch?
v=aYw_5y6CPkU&ab_channel=Religare

https://www.youtube.com/watch?v=Y-
B3fM2LTws&ab_channel=Religare

https://www.youtube.com/watch?
v=bjYqbXJC234&ab_channel=ShawnikSinghThakur
 Budgeting Decisions
Budgeting decisions involve determining how much money will
be spent on advertising and promotion each year and how the that
should be allocated on different heads.

Two major decisions:

Establishing the size of the budget
Allocating the budget
Top-Down Budgeting

Top Management Sets the

Spending Limit

The Promotion Budget Is Set to

Stay Within the Spending Limit
 Top-Down Approaches

The Affordable Method

 What we have to spare. What's left to spend.

Arbitrary Allocation Method

 No system. Seemed like a good idea at the time.

Percentage of Sales Method

 Set percentage of sales or amount per unit.

Competitive Parity Method

 Match competitor or industry average spending.

Return on Investment Method

 Spending is treated as a capital investment.
 Bottom-Up Budgeting
Total Budget Is Approved by
Top Management

Cost of Activities are Budgeted

Activities to Achieve Objectives

Are Planned

Promotional Objectives Are Set

Develop Integrated Marketing
Communications Program

Clarify objectives

Message development
 Called “Creative Strategy”
 Determine basic appeal
 Determine main message
Media strategy
 Communication channels
 Type of media . . .
 Newspapers/Magazines
 Radio/Television
 Outdoor/Specialty
Select specific media
 Specific papers, magazines, TV programs, radio stations, billboards, or other
media
 Potential Communications
Objectives

Sales
Customer loyalty An inquiry
Company image A visit by a prospect
Brand image Product trial
Store patronage Recommendation
Service contract Adoption of the product
Creative Strategy
Informational and transformational appeals
Positive and negative appeals
◦ Fear
◦ Guilt
◦ Shame (https://www.youtube.com/watch?v=JvAn-z6Rivs)
◦ Humor [https://www.youtube.com/watch?
v=Yg2WIAzXa_8]
◦ Love
◦ Pride (https://www.youtube.com/watch?v=GNEVP1WSc-
U)
◦ Joy (https://www.youtube.com/watch?v=UoYWu1Hh1K4)
Developing the Media Plan
Analyze the Market

Establish Media Objectives

Develop Media Strategy

Implement Media Strategy

Evaluate Performance
Integrate and Implement Marketing Communications
Strategies
 Integrate promotional mix strategies.
 Create and produce ads.
 Purchase media time and space
 Design and implement direct marketing programs
 Design and implement sales promotion
program
 Design and implement public relations/
publicity programs
 Design and implement interactive/
internet marketing programs
Monitor, Evaluate and Control
Integrated Marketing Communications
Program

Evaluate promotional program results and determine

effectiveness

Take actions to control and adjust promotional programs