MARKETING

COMMUNICATION

CHAPTER 9
 LEARNING OUTCOMES

LOI Discuss the role of promotion in the

marketing mix

Discuss the elements of the

LO2
promotional mix

Describe the communication process

LO3
 LEARNING OUTCOMES

LO4 Explain the goal and tasks of

promotion
LO5 Discuss the AIDA concept and its
relationship to the promotional mix
LO6 Describe the factors that affect the
promotional mix
LO7 Discuss the concept of integrated
marketing communications
LOI
THE ROLE OF PROMOTION IN
THE MARKETING MIX

Discuss the role of

promotion in the
marketing mix
THE ROLE OF PROMOTION

Communication by
Promotion marketers that informs,
persuades, and reminds
potential buyers of a
product in order to
influence an opinion or
obtain a response.
THE ROLE OF PROMOTION

A plan for the optimal

Promotional
use of the elements of
Strategy
promotion:

Advertising
Public
Relations
Sales
Competitive Promotion
Advantage Personal
Selling
 THE ROLE OF PROMOTION
IN THE MARKETING MIX

Overall
Overall
Marketing Promotional
Promotional Mix
Mix
Marketing
Objectives
Objectives •• Advertising
Advertising
•• Public
Public Relations
Relations
Marketing •• Sales
Sales Promotion
Promotion
Marketing Mix Mix •• Personal
••Product Personal Selling
Selling
Product
••Place
Place
••Promotion
Promotion
••Price
Price

Target
Target Market
Market Promotion
Promotion Plan
Plan
COMPETITIVE ADVANTAGE

High
High product
product quality
quality

Rapid
Rapid delivery
delivery

Low
Low prices
prices

Excellent
Excellent service
service

Unique
Unique features
features
LOI
REVIEW LEARNING OUTCOME
THE ROLE OF PROMOTION IN THE MARKETING MIX
LO2
THE PROMOTIONAL MIX

Discuss the elements

of the promotional mix
 THE PROMOTIONAL MIX

Combination of
Promotional promotion
Mix tools used to reach the
target market and fulfill
the organization’s overall
goals.
Advertising
Public
Relations
Sales
Promotion
Personal
Selling
Advertising Impersonal, one-way
mass communication
about a product or
organization that is
paid for by a marketer.
 ADVERTISING MEDIA

Traditional
Traditional New
New
Advertising
Advertising Media
Media Advertising
Advertising Media
Media

Television Internet
Radio Banner ads
Newspapers Viral marketing
Magazines E- mail
Books Interactive video
Direct mail
Billboards
Transit cards
 ADVERTISING

Advantages Disadvantages

 Reach large o Total cost is high

number
of people o National reach is
expensive for
 Low cost per small companies
contact

 Can be micro-
targeted
 PUBLIC RELATIONS

The marketing function

Public
that
Relations
evaluates public
attitudes, identifies areas
within the organization
that the public may be
interested in, and
executes a program of
action to earn public
understanding and
acceptance.
 THE FUNCTION OF PUBLIC
RELATIONS

 Maintain a positive image

 Educate the public about the company’s

objectives

 Introduce new products

 Support the sales effort

 Generate favorable publicity

 SALES PROMOTION

Sales Marketing activities--

Promotion other than personal
selling, advertising, and
public relations--that
stimulate consumer
buying and
dealer effectiveness.
 SALES PROMOTION

Free
Free samples
samples
End
End
Consumers
Consumers
Contests
Contests

Premiums
Premiums Company
Company
Employees
Employees
Trade
Trade Shows
Shows

Vacation
Vacation Giveaways
Giveaways Trade
Trade Customers
Customers

Coupons
Coupons
 PERSONAL SELLING

Personal
Selling Planned presentation to
one or more prospective
buyers for the purpose
of making a sale.
PERSONAL SELLING

Traditional
Traditional
Selling
Selling

Relationship
Relationship
Selling
Selling
LO2
REVIEW LEARNING OUTCOME
ELEMENTS OF THE PROMOTIONAL MIX
LO3
MARKETING COMMUNICATION

Describe the
communication process
 COMMUNICATION

Communication The process by which

we exchange or share
meanings through a
common set of symbols.
 MARKETING COMMUNICATION

Categories
Categories of
of
Communication
Communication

Interpersonal
Interpersonal Mass
Mass
Communication
Communication Communication
Communication
 MARKETING COMMUNICATION

As Senders As Receivers

 Inform  Develop messages

 Persuade  Adapt messages

 Remind  Spot new

communication
opportunities
 THE COMMUNICATION PROCESS

Noise
Noise

Encoding
Encoding Message
Message Decoding
Decoding
Sender
Sender Receiver
Receiver
Message
Message Channel
Channel Message
Message

Feedback
Feedback
Channel
Channel
CHARACTERISTICS OF THE
ELEMENTS
IN THE PROMOTIONAL MIX
 CHARACTERISTICS OF THE
ELEMENTS
IN THE PROMOTIONAL MIX

Advertising

Communication Mode Indirect and impersonal

Communication Control Low
Feedback Amount Little
Feedback Speed Delayed
Message Flow Direction One-way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Fast
Message Flexibility Same message to all audiences
 CHARACTERISTICS OF THE
ELEMENTS
IN THE PROMOTIONAL MIX

Public Relations

Communication Mode Usually indirect, impersonal

Communication Control Moderate to low
Feedback Amount Little
Feedback Speed Delayed
Message Flow Direction One-way
Message Content Control No
Sponsor Identification No
Reaching Large Audience Usually fast
Message Flexibility Usually no direct control
 CHARACTERISTICS OF THE
ELEMENTS
IN THE PROMOTIONAL MIX

Sales Promotion

Communication Mode Usually indirect and impersonal

Communication Control Moderate to low
Feedback Amount Little to moderate
Feedback Speed Varies
Message Flow Direction Mostly one-way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Fast
Message Flexibility Same message to varied target
 CHARACTERISTICS OF THE
ELEMENTS
IN THE PROMOTIONAL MIX

Personal Selling

Communication Mode Direct and face-to-face

Communication Control High
Feedback Amount Much
Feedback Speed Immediate
Message Flow Direction Two-way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Slow
Message Flexibility Tailored to prospect
 THE IMPACT OF BLOGGING

Sponsored by a company or
Corporate one of its brands and maintained
Blogs by one or more of the company’s
employees.

Independent and not associated

Noncorporate
with the marketing efforts of any
Blogs
particular company or brand.
LO3
REVIEW LEARNING OUTCOME
THE COMMUNICATION PROCESS
LO4 THE GOALS AND TASKS OF
PROMOTION

Explain the goals and

tasks of promotion
GOALS AND TASKS OF PROMOTION

Informing
Informing Reminding
Reminding

Target
Target
Audience
Audience

Persuading
Persuading
GOALS AND TASKS OF PROMOTION

Informing
Informing Reminding
Reminding

PLC Stages:
Stages PLC Stages:
Introduction Maturity
Early Growth Target
Target
Audience
Audience

PLC Stages:
Growth
Maturity Persuading
Persuading
GOALS AND TASKS OF PROMOTION

Informative Promotion

 Increase awareness

 Explain how product works

 Suggest new uses

 Build company image

GOALS AND TASKS OF PROMOTION

Persuasive Promotion

 Encourage brand switching

 Change customers’ perceptions of product

attributes

 Influence immediate buying decision

 Persuade customers to call

GOALS AND TASKS OF PROMOTION

Reminder Promotion

 Remind customers that product

may be needed

 Remind customers where

to buy product

 Maintain customer awareness

LO5
PROMOTIONAL GOALS
AND THE AIDA CONCEPT

Discuss the AIDA concept

and its relationship to
the promotional mix
 THE AIDA CONCEPT

Model that outlines the

AIDA Concept
process for achieving
promotional goals in
terms of stages of
consumer involvement
with the message.
THE AIDA CONCEPT

Action

Desire Conative (doing)

Interest Affective (feeling)

Attention Cognitive (thinking)

LO5
REVIEW LEARNING OUTCOME
THE AIDA CONCEPT
LO6
FACTORS AFFECTING THE
PROMOTIONAL MIX

Describe the factors that

affect the promotional mix
 FACTORS AFFECTING THE
CHOICE OF PROMOTIONAL MIX

Nature
Nature of
of the
the product
product

Stage
Stage in
in PLC
PLC

Target
Target market
market factors
factors

Type
Type of
of buying
buying decision
decision

Promotion
Promotion funds
funds

Push
Push or
or pull
pull strategy
strategy
STAGE IN THE PRODUCT LIFE CYCLE

Maturity

46
Sales ($)

Decline
Introduction Growth

Time

Light Heavy use of Advertising, Ads AD/PR

Advertising;Advertising; PR, brand decrease; decrease;
pre- PR for loyalty; sales limited
introductionawareness; personal promotion; sales
publicity sales selling for personal promotion;
promotion distribution selling; personal
for trial reminder & selling for
persuasive distribution
TARGET MARKET CHARACTERISTICS

Advertising For…
Advertising
 Widely scattered
Sales market
Sales Promotion
Promotion
 Informed buyers
Less
Less Personal
Personal Selling
Selling  Brand-loyal repeat
purchasers
 TYPE OF BUYING DECISION

Advertising
Routine
Routine
Sales Promotion

Advertising
Neither
Neither Routine
Routine
nor
nor Complex
Complex Public Relations

Personal Selling
Complex
Complex
Print Advertising
 AVAILABLE FUNDS

 Trade-offs with funds available

 Number of people in target market
 Quality of communication needed
 Relative costs of promotional elements
 PUSH AND PULL STRATEGIES
PUSH STRATEGY

Manufacturer
Manufacturer Wholesaler
Wholesaler Retailer
Retailer Consumer
Consumer
promotes
promotesto
to promotes
promotesto to promotes
promotesto to buys
buysfrom
from
wholesaler
wholesaler retailer
retailer consumer
consumer retailer
retailer

Orders to manufacturer

PULL STRATEGY

Consumer
Consumer Retailer
Retailer Wholesaler
Wholesaler
Manufacturer
Manufacturer demands
demands demands
demands demands
demands
promotes
promotesto
to product
product product
product product
productfrom
from
consumer
consumer from
fromretailer
retailer from
fromwholesaler
wholesaler manufacturer
manufacturer

Orders to manufacturer
LO6
REVIEW LEARNING OUTCOME
FACTORS AFFECTING PROMOTIONAL MIX
LO7
INTEGRATED MARKETING
COMMUNICATIONS

Discuss the concept of

integrated marketing
communications
 INTEGRATED MARKETING
COMMUNICATIONS

Integrated
Marketing The careful coordination
Communications of all promotional
messages to assure the
consistency of messages
at every contact point
where a company meets
the consumer.
IMC POPULARITY GROWTH

 Proliferation of thousands of
media choices
 Fragmentation of the mass market
 Slash of advertising spending in
favor of promotional techniques that
generate immediate response
LO7 REVIEW LEARNING OUTCOME
INTEGRATED MARKETING
COMMUNICATIONS
 Q&A
SESSION
THANK YOU…