Communication

Strategy
Session 7
Chapters 14, 15 & 16

Marketing Promotions Mix

o Promotional mix is the combination of different
promotional elements that a company uses to reach and
influence potential customers
The specific mix of advertising, personal selling, sales
promotion, public relations and other tools a company uses to
pursue its marketing objectives.

o Every business has a unique promotional mix.

o When selecting elements for a promotional mix,
consider:

Target market
Product value
Promotional channels
Time frame
cost

Integrated Marketing Communications

Integrated Marketing Communications
o The concept under which a company carefully integrates and
coordinates its many communications channels to deliver a
clear, consistent, and compelling message about the
organization and its products.
o IMC implementation often requires the hiring of a MarCom
manager.

The Need for Integrated Marketing Communications

Conflicting messages from different sources or promotional
approaches can confuse company or brand images
The problem is particularly prevalent when functional
specialists handle individual forms of marketing
communications independently

The Communication Process

o Communications efforts should be viewed from the perspective
of managing customer relationships over time.
oThe communication
process begins with an
audit of all potential
contacts.

Noise

Noise
Message

Channel
Sender

oEffective communication
requires knowledge of
how communication
works.

Receiver
Channel
Feedback

Noise

Response
Noise

Noise

Major Decisions
Objectives
Objectives Setting
Setting
Budget
Budget Decisions
Decisions
Message
Message Decisions
Decisions

Media
Media Decisions
Decisions

Campaign
Campaign Evaluation:
Evaluation:

Communication
CommunicationEffect
Effect&&Sales
SalesEffect
Effect

Developing Effective Communication

o Step 1: Identifying the Target Audience
Affects decisions related to what, how, when, and where
message will be said, as well as who will say it

o Step 2: Determining Communication Objectives

Six buyer readiness stages
Awareness
Knowledge
Liking
Preference
Conviction
Purchase

Developing Effective Communication

(contd.)

oStep 3: Designing a Message

AIDA framework guides message design

(get Attention, hold Interest, arouse Desire, and then obtain Action)

Message content: Contains appeals or themes designed to

produce desired results
Rational appeals
Emotional appeals (Love, pride, joy, humor, fear, guilt, shame)
Moral appeals

Message Structure: Key decisions are required with respect

to three message structure issues:
Whether or not to draw a conclusion
One-sided vs. two-sided argument
Order of argument presentation

Message Format: Design, layout, copy, color, shape,

movement, words, sounds, voice, body language, dress, etc.

Developing Effective Communication

(contd.)

o Step 4: Choosing Media

Personal communication channels
Includes face-to-face, phone, mail, Internet chat communications
Word-of-mouth influence is often critical
Buzz marketing cultivates opinion leaders

Non-personal communication channels

Includes media (paper, electronic), atmosphere, and events

o Step 5: Selecting the Message Source

Highly credible sources are more persuasive
A poor spokesperson can tarnish a brand

o Step 6: Collecting Feedback

Recognition, recall, and behavioral measures are assessed
May suggest changes in product/promotion

Setting the Promotional Budget

o Affordability Method
Budget is set at a level that a company can afford

o Percentage-of-Sales Method
Past or forecasted sales may be used

o Competitive-Parity Method
Budget matches competitors outlays

o Objective-and-Task Method
Specific objectives are defined
Tasks required to achieve objectives are determined
Costs of performing tasks are estimated, then summed to
create the promotional budget

Setting the Promotional Mix

Determined by the nature of each promotion tool and
the selected promotion mix strategy

o
o
o
o
o

Promotion
Tools
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

o Reaches large, geographically

dispersed audiences, often with
high frequency
o Low cost per exposure, though
overall costs are high
o Consumers perceive advertised
goods as more legitimate
o Dramatizes company/brand
o Builds brand image; may stimulate
short-term sales
o Impersonal; one-way
communication

Setting the Promotional Mix

o Most effective tool for building buyers
preferences, convictions, and actions

o
o
o
o
o

Promotion
Tools
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

o Personal interaction allows for

feedback and adjustments
o Relationship-oriented
o Buyers are more attentive
o Sales force represents a long-term
commitment
o Most expensive of the promotional
tools

Setting the Promotional Mix

o May be targeted at the trade or
ultimate consumer

o
o
o
o
o

Promotion
Tools
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

o Makes use of a variety of formats:

premiums, coupons, contests, etc.
o Attracts attention, offers strong
purchase incentives, dramatizes
offers, boosts sales
o Stimulates quick response
o Short-lived
o Not effective at building long-term
brand preferences

Setting the Promotional Mix

o Highly credible

o
o
o
o
o

Promotion
Tools
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

o Many forms: news stories, news

features, events & sponsorships,
etc.
o Reaches many prospects missed
via other forms of promotion
o Dramatizes company or benefits
o Often the most underused element
in the promotional mix

Setting the Promotional Mix

o
o
o
o
o

Promotion
Tools
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

o Many forms: Telephone marketing,

direct mail, online marketing, etc.
o Four distinctive characteristics:
Nonpublic
Immediate
Customized
Interactive
o Well-suited to highly targeted
marketing efforts
o May result in ineffective

Promotion Mix Strategies

o Push strategy: trade promotions and personal selling
efforts push the product through the distribution channels.
Make product readily available to buyers
Heavy sales promotions
Producer marketing
activities (personal selling,
trade promotion, etc.)

Producer

Retailer marketing
activities (personal selling,
Ad, sales promotion, etc.)

Wholesalers
& Retailers

Figure: Push Strategy

Consumers

Promotion Mix Strategies (contd.)

o Pull strategy: producers use advertising and
consumer sales promotions to generate strong
consumer demand for products.
Promotional effort by a seller to stimulate demand among final users,
Who will then exert pressure on distribution channel to carry
good/service,
Pulling it though the marketing channel
Demand
Producer

Wholesalers
& Retailers

Demand

Producer marketing activities (consumer ad, sales promotion, etc.)

Figure: Pull Strategy

Consumers