march 2008marketing fundamentals marketing mix promotion

March 2008 Marketing Fundamentals

Marketing Mix

Promotion


Part 1

Managing Integrated marketing Communication


Marketing Communications

Communications Platforms

• Advertising

• Sales Promotion

• Public relations

• Direct marketing

• Personal selling


Developing Effective Marketing Communications

Steps in Marketing Communications Program Development

1. Identify target audience2. Determine objectives of communication3. Design the message4. Select communication channels5. Select the marketing communications mix6. Measure results7. Manage the IMC process



• Step 1: Identifying the target audience– Includes assessing the audience’s

perceptions of the company, product, and competitors’ company/product image

• Step 2: Cognitive, affective, and behavioral objectives may be set

• Step 3: AIDA model guides message design


• Message Design ( Under step 3 )– Content what to Say?

• Message content decisions involve the selection of appeal, theme, idea, or USP

• Types of appeals (Rational Appeals, Emotional appeals, Moral appeals)

– Structure How to say It Logically?• One-sided vs. two-sided messages• Order of argument presentation

– Format How to say It Symbolically?• Graphics, visuals• Headline, copy or script• Sound effects, voice qualities• Shape, scent, texture of package

– Source Who should say it?• Message source characteristics can influence attention and recall• Factors underlying perceptions of source credibility:

– Expertise– Trustworthiness– Likeability



• Step 4:Selecting Communication Channels– Personal communication channels.

– Effectiveness derives from personalization and feedback– Several methods of stimulating personal communication

channels exist

– Nonpersonal communication channels– Influence derives from two-step flow-of-communication

process


Methods of Stimulating Personal Communication

• Devoting extra effort to influential individuals or companies

• Devoting extra effort to influential individuals or companies

• Creating opinion leaders• Working through influential community members• Using influential people in testimonial advertising• Developing advertising with high “conversation value”• Use viral marketing• Developing word-of-mouth referral channels• Establishing an electronic forum



• Step 5: Establishing the Marketing Communications Budget– Affordability method– Percentage-of-sales method– Competitive-parity method– Objective-and-task method

• Step 6: Deciding on the Marketing Communications Mix


Communications Mix Selection

• Types of promotional tools– Advertising– Sales promotion– Public relations and publicity– Direct marketing– Personal selling

• Selection factors– Consumer vs. business market– Stage of buyer readiness– Stage of product life cycle– Market rank



• Step 7: Measure Results– Recognition, recall, attitudes, behavioral

responses

• Step 8: Manage the Integrated Marketing Communications Process– Provides stronger message consistency and

greater sales impact– Improves firms’ ability to reach right

customers at right time with right message


Part 2

Managing Ad campaigns


Developing and Managing the Advertising Campaign

• The Five Ms of Advertising– Mission

• Inform• Persuade• Remind• Reinforce

– Money• Stage of product life cycle• Market share and consumer base• Competition and clutter• Advertising frequency• Product substitutability



• The Five Ms of Advertising– Message

• Message generation• Message evaluation and selection• Message execution• Social responsibility review

• Media– Deciding on reach, frequency, and impact– Selecting media and vehicles– Determining media timing– Deciding on geographical media allocation



• Major Media Types– Newspapers, Television, Direct mail, Radio, Magazines,

Outdoor, Brochures, Telephone, Internet

• Deciding on Media Categories– Target audience’s media habits, nature of the product and

message, cost

• Media Timing Decisions– Macroscheduling vs. microscheduling– Continuity, concentration, flighting, and pulsing scheduling

options

• Deciding on Geographical Allocation



• Measurement– Evaluating advertising effectiveness

• Communication-effect research• Sales-effect research


Sales Promotion

• Sales promotions are short-term incentives designed to stimulate purchase among consumers or trade

• Purpose of sales promotion– Attract new triers or brand switchers– Reward loyal customers– Increase repurchase rates


Sales Promotion

• Major Consumer-Promotion Tools– Samples– Coupons– Cash refunds.– Premiums– Prizes (contests, sweepstakes, games)– Patronage awards– Free trials– Product warranties– Tie-in promotions– Cross-promotions– Point-of-purchase displays and demonstrations


Public Relations

• Public relations activities promote or protect the image of a firm or product

• Public relations functions:– Press relations– Product publicity– Corporate communications– Lobbying– Counseling


Public Relations

• Marketing Public Relations (MPR)– Marketing Public Relations (MPR)– Plays an important role in

• New product launches• Repositioning of mature brand• Building interest in product category• Influencing specific target groups• Defending products with public problems• Building the corporate image


Public Relations

• Major Public Relations Tools• Publications• Events• Sponsorships• News• Speeches• Public-service activities• Identity media


Direct Marketing

• Direct marketing uses consumer-direct channels to reach and deliver offerings to consumers without intermediaries.

• Direct marketing is growing and offers consumers key benefits.

• Firms are recognizing the importance of integrated direct marketing efforts.


Direct Marketing

• Major Direct Marketing Tools– Face-to-face selling– Direct mail– Catalog marketing– Telemarketing– Direct-response TV marketing– Kiosk marketing– E-marketing


Direct Marketing

• Steps in Developing a Direct-Mail Campaign:– Step 1: Set objectives– Step 2: Identify target markets– Step 3: Define the offer– Step 4: Test the elements– Step 5: Measure results

march 2008marketing fundamentals marketing mix promotion

Documents

marketing mix promotionpart

communication processmethods

influential individuals

message source characteristics

message content decisions

right customers

right messagepart

right time