1. Lecture 14
Managing marketing
communications.
Advertising.
Personal selling.

2. Promotional mix
• Advertising
• Personal sales/selling
• Sales promotion
• PR
• (Direct marketing)

3. Sales
Promotion
Promotion: extended mix

4. Role of the promotional mix
To whom should we
communicate?
How shall we evaluate the
effect?
What should we
communicate?
How should we
communicate?
When should we
communicate?
From whom do we want
communication?
How shall we judge the
value?
What do we want in the
communication?
How do we want to be
communicated with?
When do we want
communication?
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5. Tools of the marketing
promotional/communications mix
• The tools of the marketing communications mix
are deliberately selected for their ability to attract
customers, fulfill their desire for information
and ultimately persuade them to adopt the
products.
• They include advertising, sales promotions, public
relations, direct and interactive marketing
communications and personal selling. Nowadays two
more tools – direct marketing and sponsorship are
sometimes added

6. ‘Relative importance of Promotion Tools in
Consumer versus Industrial Markets’
Consumer
goods

7. Promotional mix vs. Communication mix
• Actually, there is a very slight difference
between these two terms “promotional mix” and
“communication mix”
• Although some marketers attribute different
methods to “promotional mix” and “communication
mix”
• Thus, direct marketing can refer to
“communication mix”, while personal
selling/sales to “promotional mix”

8. Corporate business objectives
Marketing objectives
Marketing strategy
Communications objectives
Communications strategy
Advertising objectives
Advertising strategy
Creative objectives
Creative strategy
Media objectives
Media strategy
Promotional
operations and the
planning framework

9. Aims and objectives of the promotional
communications process
• Category needs
• Brand awareness
• Brand attitude
• Brand purchase
intention
• Purchase
facilitation
• The perception and understanding of the
actual customer needs
• The ability of the consumer to identify
and associate with a particular brand and
differentiate from another brand
• This relates to the consumer's particular
observations, view and perceptions of the
brand - cognitive beliefs
• Once the category needs have been
identified, the brand purchase intention
follows
• The purchase activity needs to be
facilitated by the organization, by ensuring
that the product is available at the right
price and the right place - this in essence
is the manifestation of the co-ordinated
marketing mix.

10. Possible communications objectives
• Clarification of customer needs
• Increasing brand awareness
• Increasing product knowledge
• Improving brand image
• Improving company image
• Increasing brand preference
• Stimulating search behaviour
• Increasing trial purchases
• Increasing repeat purchases
• Increasing word-of-mouth recommendation
• Improving financial position
• Increasing flexibility of the corporate image
• Increasing co-operation from the trade
• Enhancing the reputation with key stakeholders
• Building up management ego.

11. Co-ordinated/Integrated marketing
communications
• Co-ordinated marketing communications is growing
in importance in marketing today as more and more
organizations realize the importance of taking a
more structured, ordered and integrative approach
to their marketing communications activities.
• In the simplest form, it involves the integration and
cohesion of all elements of the marketing mix.
• A campaign that is co-ordinated is planned, it is
uniform in terms of its design, and it shares a
unique selling proposition (USP) and communicates
the same message in a co-ordinated way.
• By combining more than one element of
promotion, the message that is communicated is
more powerful.

12. IMC: example
• Walkers and Crisps have been involved in
implementing a co-ordinated campaign.
• This has been on both TV and poster
advertising.
• In addition to that, they are developing a
consistent approach to advertising, using key
personalities to identify with their products.
• As a result of this, Walker's market grew by 21
per cent, while the crisp market generally rose
only by 11 per cent.

13. The driving forces of integrated marketing
communications
• Co-ordinated marketing communications often means
different things to different people, but in the main the
view is that it should embrace the marketing mix, the
promotional mix, internal communications and all those
who contribute to the overall marketing communications
process.
• This means that PR, advertising, direct mail, trade
promotions, consumer promotions, packaging, point-of-
sale signage, brochures, literature, merchandize, websites
and sponsorship all have their own individual role, but all
achieve the corporate and marketing objectives for the
brand.

14. The driving forces of co-ordinated
marketing communications
• Communication-based drivers include
technological advances such as the
Internet, databases, new segmentation
techniques, message effectiveness, more
consistent brand images and the need to
build brand reputations to provide clear
identities.

15. Advertising
• Advertising is one of the most influential forms
of communication within the promotional mix,
and the one that perhaps has the most impact
upon our everyday lives.
• It does not matter where we go during a day, it
is likely that we are bombarded either by radio,
billboard, TV, cinema or by banner advertising
on a regular basis.

16. Advertising: a definition
• Advertising is a paid form of
non-formal communication that
is transmitted through mass
media such as television, radio,
newspapers, magazines, direct
mail, public transport vehicles,
outdoor displays and the Internet.

17. Advertising and the marketing mix
• Advertising is used to support many elements of
the marketing mix, but in most instances the
product and brand are the key focus to
advertising activities.
• Advertising for both distribution and retailing is
very much related to the “push” and “pull"
strategies that we discussed earlier.
• Advertising is focused on encouraging retailers to
stock their products.

18. Advertising objectives
• Promoting product, organizations and services
• Stimulating demand or products
• Competing - offensive/defensive advertising
• Increasing sales - growth
• Educating the market- brand and product awareness
• Increasing the use of product and services - market
development
• Reminding and reinforcing - market penetration
• Reducing fluctuations

19. Creating awareness vs. creating sales
• However, there is a fine line between advertising to
create sales and advertising to create awareness and
each of these will require a different approach
in order to achieve the long-term goals of the
organization.
• It is quite clear that one of the key tools of the
marketing communications mix to support the
sale of products is advertising. This is
particularly so for consumer-based products,
where advertising serves to create an awareness
of the product, its characteristics, its image and
buying habits.

20. Functions of Advertising
• To inform
• To persuade
• To sell

21. To inform
Telling the market about a new product
Suggesting new users for a product
Informing the market of price change
Explaining how the product works
Describing available services
Correcting false impressions
Reducing consumer’s fears
Building a company image
To persuade
Building new preferences
Encouraging switching to your brand
Changing customers’ perception of product
attributes
Persuading customer to purchase now
Persuading customer to receive a sales
call
To remind
Reminding consumers that the product may
be needed in the near future
Reminding consumers where to buy it
Keeping in their minds during off
seasons
Maintaining its top-of-mind awareness

22. Types of Advertising
• Pioneer advertising
• Competitive advertising
• Comparative advertising

23. Pioneer advertising
• This serves to inform consumers about the existence of a new
product category.
• The purpose of such activity is to stimulate primary demand
for a product which was previously unknown in the
marketplace, rather than identifying the particular attributes
of a specific brand.
• However, many new products are specifically introduced by
manufacturers with a strong branding presence, in the hope
that they will continue to 'own' the category even when joined
by other, similar products.
• The portable tape player continues to be known as the
'Walkman' even though it is manufactured by several
companies other than the originator, Sony.

24. Competitive advertising
• This seeks to persuade consumers of the particular
benefits and advantages which derive from a particular
brand.
• The intention is to increase selective demand by providing
information regarding the product attributes and benefits
which may not be available from competitive products, or,
even where the attributes are shared, to create the
impression that they are the 'property' of the advertised
brand.
• Intel, the manufacturers of computer chips, have used this
approach to successfully brand a component within
another manufacturer's product with such success that it
is almost impossible to sell a computer without 'Intel
inside' in the mainstream market.

25. Comparative advertising
• This relates to specific campaigns which
directly compare one product's attributes with
those of its competitors.
• Many campaigns now directly name
competitors and make overt comparisons
between the various products/ services offered
or prices charged, in order to develop a
competitive advantage.

26. Types of advertising
• Primary
• Selective product or service
• Product or service range
• Institutional

27. Primary advertising
• The objective with primary advertising is to
stimulate a demand for a particular product or
service
• For example, primary advertising is used for the
launch of an exhibition, a J. K. Rowling Harry
Potter novel or a new James Bond movie.
• However this form of advertising is not confined to
the B2C market: it is equally applicable to the B2B
market.
• Trade organisations as well as suppliers use primary
advertising to raise awareness of products and
services.

28. Selective product or service
advertising
• A manufacturer focuses the advertising on a
single brand without any reference to its
corporate identity.
• The focus is clearly on the brand and not the
brand owner.
• For example, the various brands owned by
Procter & Gamble have their own individual
identities. Unless a consumer studied the
packaging closely, he or she would not know the
brand was owned by or marketed by Procter &
Gamble.

29. Product or service range
advertising
• Here the focus is on the range of products or
services available under one particular brand
name.
• For example, when Unilever advertises its Dove
brand, it might either advertise selective
elements of the range, for example, soap, or
advertise the full brand range from soap to
shampoo.
• By advertising the whole range Unilever is
clearly stating to potential and current customers
that there is a Dove product for all their face
and body cleansing needs.

30. Institutional advertising
• This is advertising that in some way
promotes the corporate identity, image
and values of the organisation.
• The advertisement focused not on any
one product but on the diverse areas in
which the company operated.

31. • Gasprom advertising

32. Types of advertising
• Informative
• Persuasive
• Reminding

33. Advertising and the PLC
• At the introductory stage, the fundamental need will be to
create product awareness and to stimulate trial of the new product.
• Once the product has reached the growth stage, it will be
important to use advertising to maintain consumer demand
and to ensure that the consumer's attention is focused on the
advantages of the brand relative to its competition.
• In the maturity phase, the advertising will be required to
maintain customer loyalty, together with other promotional devices,
such as sales promotion.
• Finally, during the decline phase, advertising expenditures
will be reduced significantly, reflecting the decline in
brand volumes. The essential requirement will be to ensure
that the decline can be slowed, although expenditures may well be
directed towards reducing the stocks in the trade.

34. Define objectives
and plan the
promotional
campaign
Develop
product
awareness
stimulate
demand
and
attract
distributors
Create
product
acceptance
and brand
preference
Maintain and
enhance
brand loyalty,
convert
buyers and
distributors of
competitive
brands
Phase
product
out

35. Types of advertising media
Print media
As the name suggests this concerns advertisements
that appear in newspapers and magazines. The
media can be divided into five categories:
– Daily newspapers
– Local and regional newspapers
– Consumer magazines
– Trade and professional magazines
– Customer magazines

36. Types of advertising media
Television
Overall, TV is still regarded as the best
medium for achieving large-scale coverage for
products and services.
As television is a combination of sound and
pictures it provides the perfect vehicle to
visualise or demonstrate the product or service
being marketed, whether that is a car, an
airline or a washing detergent.

37. Types of advertising media
Cinema
• Cinema is useful in supporting press and
television campaigns.
• It can also be used to show advertisements
that would not be permitted on televisions
stations because of this type of product (for
instance, alcoholic drinks) or the way it is
advertised (for example, overtly sexual in
content).

38. Types of advertising media
Radio
• Radio stations have become an excellent
outlet for advertising products and services.
• Companies can choose the radio station that
best serves their customer segments.
• Radio advertising normally costs less than
television advertising, so SMEs are able use
radio as a means of advertising their
products and services.

39. Types of advertising media
Outdoor billboard advertising
• Outdoor advertising is usually strategically
located near high-density populations,
busy road junctions, walkways, at
commuter stations or on vehicles.
• The objective is to position a poster
showing a product or service in a place
where it will have high visibility.

41. Types of advertising media
Ambient media (also known as fringe media)
• Ambient Media is usually amalgamated with
outdoor advertising in many textbooks.
• However, because of its format and its
increasing presence it needs to stand alone as
a form of advertising media. As the word
ambient suggests, such advertising is
positioned 'in the surroundings or in the
background'.

42. Aerial This includes airships (often referred to as blimps), moving and static
balloons, and banner towing.
Airships and balloons flying over a location often carrying an array of
advertising including illuminated signage across their length. With
banner towing, specially equipped light aircraft tow banners across a
location advertising, for example, a forthcoming event
Giveaway These are normally standard sized postcards that feature an event,
product or service. They are postcards.
Maps
Tourist maps often feature small advertisements for a range of local
products and services. These can include details of hotels, restaurants,
sightseeing tours, car rentals, museums, art galleries and department
stores.
Taxis
This includes both exterior and interior advertising. In London, for
example, the famous cabs are often emblazoned with brand logos
advertising everything from airlines to newspapers and soft drinks. In
some countries, for example, Singapore, taxis have illuminated signs on
the roofs of the cabs.

43. Trolleys
Trolleys at airports, supermarkets and train stations often
feature advertising signage.
This can range from promoting special in-store offers to
credit cards and focal hotel and taxis services.
Washrooms
Inthe United Kingdom especially this is one of the fast-
growing forms of ambient media. Everyone has, at some
time, the need to use the washroom in the restaurant or
shopping mall. The advertising messages can range from
health issues (using a condom to reduce the risk of HIV
infection and unwanted pregnancy) and warnings about
drinking and driving to special offers at local stores.
Tickets Although train, bus and cinema tickets, for
example, are used over a relatively short time frame
they can incorporate promotional elements. For
instance on the reverse of a cinema ticket a soft
drink, available from the concession counter, can
be advertised. It could be used to publicise a
special promotion for a limited period only.

45. Types of advertising media
Shock advertising
• Inclusion of frightening, visceral, offensive, taboo
and emotion-provoking imagery and words to
promote a product, service/ concept or idea
• It became part of the public's consciousness with
Oliviero Toscani's work for the Italian clothing
company Benetton. Toscani's advertising focused
not on clothes but on images often linked to society
or tragic events of the time.

48. Repositioning through advertising
• Taking a more strategic perspective, advertising
can also be used to reposition a product and redefine
it in the mind of the customer.
• Quite often this happens in response to
competitive pressures and therefore both
aggressive and defensive advertising is likely to be
used in order to improve or at least sustain a
competitive position.
• Ultimately, the brand repositioning will need to
provide an even stronger point of differentiation
for consumers.

49. Repositioning involves changing
the place an offering occupies in a
consumer’s mind relative to
competitive offerings.

50. Beeline

51. How it was and how it is today
(repositioning of Russian leading mobile
operators)

54. Goldstar – LG

55. • In 1959, Goldstar produced South Korea's first radio.
Many consumer electronics were sold under the brand
name GoldStar, while some other household products
(not available outside South Korea) were sold under the
brand name of Lucky. The Lucky brand was famous for
its hygiene products line such as soaps and Hi-Ti laundry
detergents, but most associated with its Lucky and Perioe
toothpaste.
In 1995, so as to better compete in the Western market,
the company was renamed "LG", the abbreviation of
"Lucky Goldstar". More recently, the company associates
its tagline "Life's Good", with the letters LG. Since 2009,
LG also owns the domain name LG. com

57. Advertising and its influence on price
• The role of marketing communications is
informing the target market about the price of a
product or service offering.
• This can be undertaken through advertising in
addition to the other elements of the
promotional mix, for example personal selling,
promotions and so on.
• However, they may not consider the price in
isolation, indeed you will most likely consider it
in respect of the product, its size, shape, smell,
colour and overall benefits.

58. Advertising and its influence on price
• Price issues will vary from product to product
and from target group to target group, but the
prominence that price receives will depend upon
a number of factors:
• Target group
• Level of involvement
• Attitude to risk
• Complexity and technical nature of the
product/service
• The importance of price to the decision-making
process.

59. Personal selling: a definition
- An interpersonal communication tool
which involves face-to-face activities
undertaken by individuals, often
representing an organization, in order
to inform, persuade or remind an
individual or group to take appropriate
action, as required by the sponsor's
representative.

60. Personal selling: characteristics
• It is a known fact that personal selling is the most
expensive element of the marketing mix.
• It is resource intensive, time ineffective,
contributing little or no economies of scale, with
high contact costs and customer maintenance
costs.
• However, it is probably one of the most effective
methods of influencing decision-makers to the
stage of adoption.

61. • Personal selling is often referred to as interpersonal
communication and from this perspective three major sales
behaviours, namely getting, giving and using information can be
determined :
• Getting information refers to sales behaviours aimed at
information acquisition, for example gathering
information about customers, markets and
competitors.
• Giving information refers to the dissemination of
information to customers and other stakeholders, for
example sales presentations and seminar meetings
designed to provide information about products and an
organisation's capabilities and reputation.
• Using information refers to the sales person's use of
information to help solve a customer's problem.
The role of personal selling

62. Tasks of personal selling
Prospecting Finding new customers
Communicating Informing various stakeholders and feeding back
information about the market
Selling The art of leading a prospect to a successful close
Information
gathering
Reporting information about the market and reporting on
individual activities
Servicing Consulting, arranging, counseling, fixing and solving a
multitude of customer problems'
Allocating Placing scarce products and resources at times of shortage
Shaping Building and sustaining relationships with customers and
other stakeholders

63. Strengths and weaknesses of
personal selling
• Two-way interaction that
provides fast, direct
feedback.
• Personal selling allows for
the receiver to focus
attention on the
salesperson.
• There is a greater level of
participation in the
decision process by the
vendor than in the other
tools.
• Costs per contact are
extremely high.
• Reach and frequency
through personal selling
are always going to be low,
regardless of the amount of
funds available.
• Control over message
delivery is very often low.
• There is also the
disadvantage of message
inconsistency.

64. Sales force objectives
• Sales force objectives will not all relate directly to
increasing income.
• They may also relate to cost saving, customer
relationship management and developing new leads.
• Therefore typical sales objectives could be:
– To increase sales turnover by 20 per cent within a 12-
month period
– To reduce the number of clients with minimum viable
order levels at the end of a 12-month period
– To reduce the cost of sales by 10 per cent within a 6-
month period o To increase the number of
distribution outlets by 15 per cent in a 12-month
period.

65. Number of customers Large Small
Buyers' information needs Low High
Size and importance of purchase Small Large
Post-purchase service required Little A lot
Product complexity Low High
Distribution strategy Pull Push
Pricing policy Set Negotiate
Resources available for promotion Many Few
Advertising
relatively important
Personal selling
relatively important

66. Prospecting for customers
Qualifying prospects
Developing the relationship
Presenting the sales messages
Handling queries and objections
Closing the sale
Providing service and support
Developing the relationship
Maintaining trust and commitment

67. New roles for thе sales force

68. Thank you for attention!