Promotions

Managing Integrated Marketing Communications

(Chapter 17)
Managing Mass Communications, Sales Promotions &
Personal Selling (Chapter 18)
Designing and Managing Integrated
Marketing Communications
• What is the role of marketing communications?

• How do marketing communications work?

• What are the major steps in developing effective communications?

• What is the communications mix and how should it be set?

 What are Marketing Communications?

Marketing communications are the means by which

firms attempt to inform, persuade, and remind
consumers, directly or indirectly, about the products and
brands they sell.
 Modes of Marketing Communications

• Advertising • Direct & Interactive marketing

• Events and experiences • Word-of-mouth marketing
• Sales promotion • Personal selling
• Public relations and publicity
 Communication Tools

Advertising Sales Promotion

• Print and broadcast ads • Contests, games, sweepstakes
• Packaging inserts • Premiums
• Motion pictures • Sampling
• Brochures and booklets • Trade shows, exhibits
• Posters • Coupons
• Billboards • Rebates
• POP displays • Entertainment
• Logos • Continuity programs
• Videotapes
 Communication Tools

Events/ Experiences Public Relations

• Sports • Press kits
• Entertainment • Speeches
• Festivals • Seminars
• Annual reports
• Arts
• Charitable donations
• Causes
• Publications
• Factory tours • Community relations
• Company museums • Lobbying
• Street activities • Identity media
• Company magazine
 Communication Tools

Personal Selling Direct Marketing

• Sales presentations • Catalogs
• Sales meetings • Mailings
• Incentive programs • Telemarketing
• Electronic shopping
• Samples
• TV shopping
• Fairs and trade shows
• Fax mail
• E-mail
• Word of Mouth Marketing • Voice mail
• Person-to-person • Blogs
• Chat rooms • Websites
• Blogs
Elements in the Communications Process
Response Hierarchy Models
 Steps in Developing Effective Communication

• Identify Target Audience

• Determine Objectives
• Design Communications
• Select Channels
• Establish Budget
• Decide on media mix
• Measure Results
• Manage Integrated Marketing Communication
 Characteristics of
The Marketing Communications Mix

Advertising Sales Promotion

• Pervasiveness • Communication
• Amplified expressiveness • Incentive
• Impersonality • Invitation
 Characteristics of
the Marketing Communications Mix

Public Relations and Events and Experiences

Publicity • Relevant
• High credibility • Involving
• Ability to catch buyers off • Implicit
guard
 Characteristics of
the Marketing Communications Mix

Direct Marketing Personal Selling

• Customized • Personal interaction
• Up-to-date • Cultivation
• Interactive • Response

Word-of-Mouth Marketing
• Credible
• Personal
• Timely
 Factors in Setting
Communications Mix

• Type of product market

• Buyer readiness stage
• Product life cycle stage
Advertising
 Advertising

Any paid form of nonpersonal presentation

and promotion of ideas, goods, or
services by an identified sponsor.
 The Five M’s of Advertising

• Mission
• Money
• Message
• Media
• Measurement
 Advertising Objectives

• Informative advertising
• Persuasive advertising
• Reminder advertising
• Reinforcement advertising
 Factors to Consider in Setting an Advertising
Budget

• Stage in the product life cycle

• Market share and consumer base
• Competition and clutter
• Advertising frequency
• Product substitutability
 Developing the Advertising Campaign

• Message generation and evaluation

• Creative development and execution
• Social responsibility review
 Creative Brief

• Positioning statement • Key brand benefits

• Key message • Brand promise
• Target market • Evidence of promise
• Objectives • Media
 Television
Advantages Disadvantages
• Reaches broad spectrum of • Brief
consumers • Clutter
• Low cost per exposure • High cost of production
• Ability to demonstrate product • High cost of placement
use • Lack of attention by viewers
• Ability to portray image and
brand personality
 Print Ads

Advantages Disadvantages
• Detailed product information • Passive medium
• Ability to communicate user • Clutter
imagery • Unable to demonstrate product
• Flexibility use
• Ability to segment
 Print Ad Evaluation Criteria

• Is the message clear at a glance?

• Is the benefit in the headline?
• Des the illustration support the headline?
• Does the first line of the copy support or explain the
headline and illustration?
• Is the ad easy to read and follow?
• Is the product easily identified?
• Is the brand or sponsor clearly identified?
 Media Selection
• Reach (R)
•No of people/household exposed to a particular media schedule at
least once during a specified period
• Frequency
•The number of times within the specific period an average person /
household is exposed to the message
• Impact
•Qualitative value of an exposure through a given medium
• Total No of Exposures (E)
•E= R*F (Gross rating points)
•GRP: one exposure to 1% of the target population
•80% of homes with freq 3- 240 GRP
 Choosing Among Major Media Types

• Target audience and media habits

• Product characteristics
• Message characteristics
• Cost
 Major Media Types

• Newspapers • Outdoor
• Television • Yellow pages
• Direct mail • Newsletters
• Radio • Brochures
• Magazines • Telephone
• Internet
 Place Advertising

• Billboards
• Public spaces
• Product placement
• Point-of-purchase
 Measures of Audience Size

• Circulation
• Audience
• Effective audience
• Effective ad-exposed audience
 Factors Affecting Timing Patterns

• Buyer turnover
• Purchase frequency
• Forgetting rate
 Media Schedule Patterns

• Continuity
• Concentration
• Flighting
• Pulsing
 Evaluating Advertising Effectiveness

• Communication Effect Research

– Consumer feedback method
– Portfolio tests
– Laboratory tests

• Sales-Effect Research
Sales Promotion
 Sales Promotion

Collection of incentive tools, mostly short term, designed to

stimulate quicker or greater purchase of particular
products or services by consumers or the trade.
 Sales Promotion Tactics

Consumer-directed Trade Sales Force-directed

• Samples • Price offs
• Coupons • Allowances
• Cash refund offers • Free goods
• Price offs
• Sales contests
• Premiums
• Trade shows
• Prizes
• Specialty advertising
• Patronage rewards
• Free trials
• Tie-in promotions
 Using Sales Promotions

• Establish objectives

• Select tools

• Develop program

• Pretest

• Implement and control

• Evaluate results
 Why Sponsor Events?

• To identify with a particular target market or life style

• To increase brand awareness
• To create or reinforce consumer perceptions of key
brand image associations
• To enhance corporate image
• To create experiences and evoke feelings
• To express commitment to community
• To entertain key clients or reward employees
• To permit merchandising or promotional opportunities
 Using Sponsored Events

• Establish objectives
• Choose event opportunities
• Design program
• Implement and control
• Measure effectiveness
 Ideal Events
• Audience closely matches target market

• Event generates media attention

• Event is unique with few sponsors

• Event lends itself to ancillary activities

• Event reflects or enhances brand image of sponsor

 Public Relations Functions

• Press relations
• Product publicity
• Corporate communications
• Lobbying
• Counseling
 Marketing Public Relations Functions

• Assist in product launches

• Assist in repositioning mature products

• Build interest in a product category

• Influence specific target groups

• Defend products

• Build corporate image

 Major Tools in Marketing PR

• Publications
• Events
• Sponsorships
• News
• Speeches
• Public Service Activities
• Identity Media
 Steps in Marketing PR

• Establish objectives

• Choose messages

• Choose vehicles

• Implement and control

• Measure effectiveness
Direct Marketing
 What is Direct Marketing?

Direct marketing is the use of consumer-direct

channels to reach and deliver goods and services to
customers without using market middlemen.
 Direct Marketing

• Direct Mail
• Catalog marketing
• Interactive Marketing
• Personal Selling
 Types of Sales Representatives

• Deliverer
• Order taker
• Missionary
• Technician
• Demand creator
• Solution vendor
 Sales Tasks

• Prospecting
• Targeting
• Communicating
• Selling
• Servicing
• Information gathering
• Allocating
 Managing the sales force

• Recruiting, selecting
• Training
• Supervising
• Motivating
• Evaluating
 Principles of Personal Selling (SPIN)

• Situation questions
• Problem questions
• Implication questions
• Need-payoff questions
 Steps in Effective Selling

• Prospecting/Qualifying
• Preapproach
• Approach
• Presentation
• Overcoming objections
• Closing
• Follow-up
 Prospecting Funnel
Key Definitions

• Leads are names of possible clients that managers generate

from databases.

• Inquiries are customer-initiated business contacts with a supplier

firm.

• Prospects are leads and inquiries that the supplier firm has
qualified as having significant sales and profit potential.
 Prospecting Funnel

Target Market Segments

Leads

Inquiries

Prospects

New
Customers

Established
Accounts

Loyal and Profitable Customer Base

 Prospecting Funnel
Intensive Growth Strategies

Current New
Offerings Offerings

Current Market Product

Markets Penetration Development

New
Markets Market
Diversification
Development
(Based on Ansoff 1957)
Transactional, Consultative, and Enterprise Selling

• Transactional Selling focuses on gaining the immediate order as quickly

as possible.

• Consultative Selling entails gaining an in-depth understanding of customer

requirements and operations, contributing analytical expertise to resolve
pressing problems, and becoming a long-term, value-adding resource.

• Enterprise Selling requires senior managers to convincingly elaborate the

benefits of combining and sharing complementary competencies and
capabilities across firms to form a strategic alliance.

(Rackham and DeVincentis 1999)

 Transactional Selling
1) Call Preparation and Planning
2) Opening (Complement, mystify, intrigue buyer; Opening
Statement)
3) Selling Benefits (personalise)
4) Handling Objections
5) Managing the Presentation
6) Closing
Gain the order as quickly as possible
 Consultative Selling
The SPIN Selling Approach
1) Preliminaries
2) Investigating
3) Demonstrating Capabilities
4) Obtaining Commitment
SR a long term trusted value added resource

(Rackham 1988)
 Consultative Selling

SPIN sequence of questions:

1) Situation Questions -- data gathering questions about facts and
background.
2) Problem Questions -- explore problems, difficulties, and
dissatisfaction areas which may be exploited.
3) Implication Questions -- examine the consequences of customer
problems.
4) Need-Payoff Questions -- get the customer to tell you the benefits
your product could offer.
The purpose of questions in the larger sale is to uncover Implied Needs and to develop
them into Explicit Needs.

(Rackham 1988)
 Consultative Selling
Obtaining Commitment

Types of Sales Commitments:

1) Orders -- Where the customer makes a firm commitment to buy
2) Advances -- Where an event takes place, either in the call or after
it, that moves the sale forward toward a decision
3) Continuations -- Where the sale will continue but where no
specific action has been agreed upon by the customer to move it
forward
4) No-Sales -- Where the customer actively refuses a commitment

(Rackham 1988)
Thank You