1

Marketing Communications

2

Promotion

Communication by marketers that informs, persuades, and reminds potential buyers of a

product in order to influence an opinion or elicit a response.

3

Differential Advantage

Unique Features

Excellent Service

Low Prices

Rapid Delivery

High Product Quality

Featuresthat ProvideDifferentialAdvantage

4

Promotional Mix

Combination of promotion tools used to reach the target market

and fulfill the organization’s

overall goals.

AdvertisingPublic RelationsSales Promotion Personal SellingPublic RelationsWord-of-Mouth

5

Advertising

Impersonal, one-way mass communication

about a product or organization that is

paid for by a marketer.

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Advertising Media

Traditional Advertising Media

ElectronicAdvertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Electronic mail Interactive video

7

Advertising

Advantages

Reach large number of people

Low cost per contact

Can be micro-targeted

Disadvantages

Total cost is high

8

Public Relations

The marketing function thatevaluates 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.

9

Publicity

Public information about a company, good, or service

appearing in the mass media as a news item, which is free to the

company.

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Sales Promotion Free samples

Contests

Premiums

Trade Shows

Vacation Giveaways

Coupons

Popular Toolsfor

Consumer SalesPromotion

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Personal Selling

Planned presentation to one or more prospective buyers

for the purpose of making a sale.

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Personal Selling

Traditional Selling

Relationship Selling

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Characteristics of Advertising

Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility

Advertising

Indirect and non-personal LowLittle

DelayedOne-way

YesYes

Fast Same message to all audiences

14

Characteristics of Public Relations

Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility

Public Relations

Usually indirect, non-personal Moderate to low

LittleDelayedOne-way

NoNo

Usually fast Usually no direct control

15

Characteristics of Sales promotion

Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility

Sales Promotion

Usually indirect and non-personal Moderate to low

Little to moderateVaries

Mostly one-wayYesYes

Fast Same message to varied target

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Characteristics of Personal Selling

Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility

Personal Selling

Direct and face-to-face HighMuch

ImmediateTwo-way

YesYes

Slow Tailored to prospect

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Goals and Tasks of Promotion

Informing Reminding

Persuading

TargetAudience

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Product Life Cycle

Time

Dol

lars

ProductCategory Sales

Intro Stage

Growth Stage

Maturity Stage

Decline Stage

0

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Goals and Tasks of PromotionInforming Reminding

Persuading

TargetAudience

PLC Stages:Introduction Early Growth

PLC Stages:Growth Maturity

PLC Stages:Maturity

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Goals and Tasks of Promotion

Informative Objectives

Increase awareness

Explain how product works

Suggest new uses

Build company image

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Goals and Tasks of Promotion

Persuasion Objectives Encourage brand switching

Change customers’ perception of product attributes

Influence buying decision

Persuade customers to call

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Goals and Tasks of Promotion

Reminder Objectives Remind customers that product

may be needed

Remind customers where to buy product

Maintain customer awareness

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Factors Affecting the Choice of Promotional Mix

Nature of the Product

Stage in PLC

Target Market Factors

Type of Buying Decision

Promotion Funds

Push or Pull Strategy

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Product Life Cycle and thePromotional Mix

-Light Advertising

-Pre-IntroductionPublicity

-Heavy Ads

-PR forAwareness

-Sales Promotionfor Trial

-Ads & PRDecrease-Limited Sales Promotion -Personal Selling forDistribution

-ReminderAds -Sales Promotion

-Personal Selling

-Advertising and PR for brandLoyalty

-Personal Selling forDistribution

Introduction Growth

MaturityDecline

Sale

s ($

)

Time

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Target Market CharacteristicsFOR: Widely scattered

market Informed buyers Repeat buyers

Advertising

Sales Promotion

Less Personal Selling

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Type of Buying Decision

Advertising

Sales PromotionType of

Buying DecisionAffects

Promotional Mix Choice

Complex

Routine

Personal Selling

Not Routineor Complex

Advertising

Public Relations

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Push and Pull Strategies

Manufacturerpromotes to wholesaler

Wholesaler promotes to

retailer

Retailer promotes toconsumer

Consumerbuys from

retailer

PUSH STRATEGY (Office Depot and Office Max)

Orders to manufacturer

Manufacturerpromotes to

consumer

Consumer demands product

from retailer

Retailer demands product

from wholesaler

Wholesaler demands

product frommanufacturer

Orders to manufacturer

PULL STRATEGY (Coke and Pepsi)