Promotion and Integrated Marketing CommunicationMARKETING COMMUNICATIONSMAJOR OBJECTIVES OF MARKETING COMMUNICATIONSMARKETING COMMUNICATIONS OBJECTIVESELEMENTS OF THE MARKETING COMMUNICATIONS MIXMARKETING COMMUNICATIONS PLANNINGPush and Pull StrategiesApproaches to Determining the Promotional BudgetSlide 9Psychological ProcessesSelection of the Promotional MixSlide 12Advertising DefinedDEVELOPING AN ADVERTISING CAMPAIGNADVERTISING STRATEGYSlide 16Reach & FrequencyEVALUATING ADVERTISING EFFECTIVENESSPUBLIC RELATIONSSlide 20Personal SellingPERSONAL SELLING AND SALES MANAGEMENTTHE MARKETING-COMMUNICATIONS MIX: Relative Emphasis in Consumer and Business MarketsSlide 24STEPS IN THE SELLING PROCESS: A RELATIONSHIP APPROACHSALES MANAGEMENT ISSUESSales PromotionTHE GROWTH IN SALES PROMOTIONOBJECTIVES OF CONSUMER PROMOTIONSCONSUMER SALES PROMOTION TECHNIQUESOBJECTIVES OF TRADE PROMOTIONSLIMITATIONS OF SALES PROMOTIONDirect MarketingTECHNIQUES OF DIRECT MARKETINGPromotion and Integrated Marketing CommunicationAdvertisingPublic Relations/ Publicity Personal SellingSales PromotionDirect MarketingChapters 12, 13 & 14MARKETING COMMUNICATIONSMARKETING COMMUNICATIONS•MARKETER INITIATED TECHNIQUES USED TO SET UP CHANNELS OF INFORMATION AND PERSUASION WITH TARGETED AUDIENCES TO INFLUENCE ATTITUDES AND BEHAVIOR “Promotion” Message and Media•MARKETING COMMUNICATIONS MIX“Tool Box” of Media and Techniques Integration and Coordination Based on Communications Model •MARKETER INITIATED TECHNIQUES USED TO SET UP CHANNELS OF INFORMATION AND PERSUASION WITH TARGETED AUDIENCES TO INFLUENCE ATTITUDES AND BEHAVIOR “Promotion” Message and Media•MARKETING COMMUNICATIONS MIX“Tool Box” of Media and Techniques Integration and Coordination Based on Communications ModelMAJOR OBJECTIVES OF MARKETING COMMUNICATIONS InformingInformingPersuadingPersuadingRemindingRemindingMARKETING COMMUNICATIONS OBJECTIVES• Increase Market Penetration• Develop Repeat Purchase Behavior• Establish Customer Relationships• Increase Rate of Consumption• Encourage Product Trial• Stimulate Impulse Buying• Stimulate Demand• Differentiate the Product• Establish a Product Image• Influence Sales Volume• Establish, Modify, or Reinforce Attitudes• Develop Sales Leads• Stimulate Interest• Establish Understanding• Build Support & AcceptanceELEMENTS OF THE MARKETING COMMUNICATIONS MIX1. Advertising1. Advertising2. Public Relations2. Public Relations5. Direct Marketing5. Direct Marketing3. SalesPromotion3. SalesPromotion4. Personal Selling 4. Personal Selling Integrated Marketing Communications (IMC) is the strategic integration of multiple means of communicating with target marketsMARKETING COMMUNICATIONS PLANNINGMarketing Plan ReviewMarketing Plan ReviewSituation AnalysisSituation AnalysisCommunications ProcessAnalysisCommunications ProcessAnalysisBudget DevelopmentBudget DevelopmentProgram DevelopmentProgram DevelopmentIntegration & ImplementationIntegration & ImplementationMonitoring, Evaluating, ControllingMonitoring, Evaluating, ControllingMETHODSPUSH vs.PULLPush and Pull Strategies•Push strategy is directed toward the channel members–Provide incentives for those in the distribution channels to buy the product•Pull strategy is directed toward the ultimate purchaser–The focus is on creating demand at the household or ultimate consumer levelApproaches to Determining the Promotional Budget•Percentage of sales–A fixed amount of money per past or projected sales•Probably the most widely used as it is simple•But, what about cause and effect?•All available funds/All you can afford–Budget what is left over for promotional expenditures•New companies often put all available funds into promotion to penetrate the market•But, you can miss opportunities or overspendApproaches to Determining the Promotional Budget•Competitive parity/Follow the competition–Adopt the average ratio for promotional expenses to sales for the industry or main competitor; or the same absolute amount as a competitor•But, what if they do not know what they are doing and/or strategies and tactics are different?•Objective and task–1) Determine objectives; 2) Determine relationship between expenditures and ability to achieve objective; 3) Set a budget that allows the achievement of these goalsPsychological Processes•The high involvement decision processNeed -> search -> evaluation -> purchase -> outcomes•The adoption processAwareness -> interest -> evaluation -> trial -> adoption -> post-adoption confirmation•Buyer readiness states/Hierarchy of effectsAwareness -> knowledge -> liking -> preference -> conviction -> purchase•AIDAAwareness -> Interest -> Desire -> ActionSelection of the Promotional Mix•PRODUCT CHARACTERISTICS–Industrial good/technical good•Need personal selling; customers want to receive information, inspect and compare the products–Consumer package goods/frequently purchase items•Advertising and sales promotion to reach market–Unit value•Low cost must use mass media approaches, with high unit cost personal selling is effective–Customization•Customized often requires personal sellingSelection of the Promotional Mix•CUSTOMER CHARACTERISTCS–Industrial versus consumer market•Consumers are easier to reach (decision maker) through media sources; industrial buyers typically have a more formal buying process, requiring personal selling–Number of customers•For a small number of customers, personal selling can play a much more important role–Geographical dispersion•Not only affects the type of promotional effort, but the media choicesAdvertising Defined•ADVERTISING–Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor•Magazines, newspaper, outdoor posters, direct mail, radio televisions, etc.•Key issues–The time or media space is paid for–The sponsor is identified and has control over the promotional activityDEVELOPING AN ADVERTISING CAMPAIGNEvaluateAdvertisingEffective-nessSelect &ScheduleMediaDetermineAdvertisingBudgetDetermineAdvertisingObjectivesSelectTargetMarketDesignCreativeStrategyADVERTISING STRATEGYADVERTISING STRATEGY•MESSAGE STRATEGIESObjective vs. Subjective MessagesComparative Message TechniquesEmotional Techniques: Mood, Fear, HumorCelebrity Endorsements vs. Non-Celebrity Images •MEDIA STRATEGIESBroadcast: