Lecture 10 & 11 Learning Objectives:

1. Define the five major promotion mix tools for communicating customer value and the
concept of integrated marketing communication (IMC)
Advertising a paid non-personal presentation & promotion of ideas, goods or services by an identified
sponsor
Advantages repeatedly reach masses of geographically dispersed buyers at a low cost per exposure,
increases legitimacy, large scale advertising positively related to sellers size, popularity & success,
dramatize sound/motion
Disadvantages costly, impersonal, 1 way communication, may not be as persuasive as salespeople (no
response)

Sales Promotion short term incentives to encourage the purchase of a goods or services
Advantages attract consumer attention, incentivises quick purchases, dramatize product offers to boost
sales
Disadvantages sales promotion effects are short lived, dont effectively build long run brand preference
& customer r/ships like advertising & personal selling

Personal Selling a personal presentation by the firms sales force to make a sale & build customer
relationships
Advantages used in B2B marketing, effective tool in certain stages of buying process, can build buyer
preferences, convictions & actions, personal interaction, flexible (can adjust), buyer feels a greater need to
listen/respond
Disadvantages sales force requires longer term commitment than advertising, most expensive
promotional tool

Public Relations building relationships with company publics via favourable publicity, corporate image
& media handling
Advantages - very believable (news stories, sponsorships & events), reach those who avoid
ads/salespeople, dramatize a company or product (gets to the buyer as news)
Disadvantages can backfire

Direct & Online Marketing direct connection with carefully targeted consumers to gain immediate
response & long term relationships
Characteristics less public, immediate, customised, interactive e.g. direct mail, catalogues, online,
telemarketing
Interaction with targeted consumers (individualised) - dialogue - adjust messages to be highly targeted -
build long term 1 to 1 relationships

2. Explain the changing communications landscape and the need for IMC.
Since consumers are changing, marketing strategies need to change which must be matched with the
changes in communications technology. The dominance of mass media is declining as firms
choose narrowcasting (highly targeted personalised interactive messages) over broadcasting.
Moreover, media costs are rising, audiences are shrinking, ad clutter is increasing & viewers are
gaining control of message exposure through technologies (e.g. remote). Thus, companies need to
integrate many communication channels to deliver a clear, consistent & compelling message
about the firm & its brands.
The Media Side
Increasingly fragmented media - so many mediums including TV, radio, internet, social networks
Overlapping media - these mediums are overlapping
The Consumer Side
Consumers are more complex with more co-existent lifestyles
Increasing information sources, they are more communications empowered seek out information (net,
forums)
Less enduring brand loyalty
The Business Side
Retailers are becoming increasingly powerful (over manufacturers e.g. Wal-Mart) category killers
Business marketing strategies are targeting segments rather than the mass


3. Describe and discuss the main decisions involved in developing an advertising program.
4. Explain how companies use public relations to communicate with their publics
5. Discuss the role of a companys salespeople in creating value for customers and building cust
omer relationships.
6. Identify and explain the six major Sales force management steps
7. Discuss the personal selling process, distinguishing between transaction
oriented marketing and relationship marketing.
8. Explain how sales promotion campaigns are developed & implemented
9. Introduce the concept of Direct and online marketing.