2. The Role of Promotion
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. Promotional
Strategy
A plan for the optimal use of the
elements of promotion:
Advertising
Public Relations
Sales Promotion
Personal Selling
Competitive
Advantage
4. The Role of Promotion
in the Marketing Mix
Overall Marketing
Objectives
Marketing Mix
• Product
• Place
• Promotion
• Price
Target Market
Promotional Mix
• Advertising
• Public Relations
• Sales Promotion
• Personal Selling
Promotion Plan
6. The Promotional Mix
Promotional
Mix
Combination of promotion
tools used to reach the target market and fulfill the
organization’s overall goals.
Advertising
Public Relations
Sales Promotion
Personal Selling
9. Public Relations
Public
Relations
The marketing function that
evaluates 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.
10. The Function of Public Relations
• Maintain a positive image
• Educate the public about the company’s objectives
• Introduce new products
• Support the sales effort
• Generate favorable publicity
14. Nature of Each Promotional Tool
Advertising • Reaches large, geographically
dispersed audiences, often with
high frequency
• Low cost per exposure, though
overall costs are high
• Consumers perceive advertised
goods as more legitimate
• Dramatizes company/brand
• Builds brand image; may stimulate
short-term sales
• Impersonal; one-way
communication
15. Personal Selling
• Most effective tool for building
buyers’ preferences, convictions,
and actions
• Personal interaction allows for
feedback and adjustments
• Relationship-oriented
• Buyers are more attentive
• Sales force represents a long-term
commitment
• Most expensive of the promotional
tools
16. Sales Promotion • May be targeted at the trade or
ultimate consumer
• Makes use of a variety of formats:
premiums, coupons, contests, etc.
• Attracts attention, offers strong
purchase incentives, dramatizes
offers, boosts sagging sales
• Stimulates quick response
• Short-lived
• Not effective at building long-term
brand preferences
17. Public Relations • Highly credible
• Many forms: news stories, news
features, events and sponsorships,
etc.
• Reaches many prospects missed
via other forms of promotion
• Dramatizes company or benefits
• Often the most underused element
in the promotional mix
18. Direct Marketing Many forms: Telephone
marketing, direct mail, online
marketing, etc.
Four characteristics:
Nonpublic
Immediate
Customized
Interactive
Well-suited to highly targeted
marketing efforts
20. Goals and Tasks of Promotion
Informing Reminding
Persuading
Target
Audience
PLC Stages:
Introduction
Early Growth
PLC Stages:
Maturity
PLC Stages:
Growth
Maturity
21. Goals and Tasks of Promotion
Increase awareness
Explain how product works
Suggest new uses
Build company image
Informative Promotion
22. Goals and Tasks of Promotion
Persuasive Promotion
Encourage brand switching
Change customers’ perceptions of product attributes
Influence immediate buying decision
Persuade customers to call
23. Goals and Tasks of Promotion
Reminder Promotion
Remind customers that product
may be needed
Remind customers where
to buy product
Maintain customer awareness
24. 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
25. Stage in the Product Life Cycle
Light
Advertising;
pre-
introduction
publicity
Heavy use of
Advertising;
PR for
awareness;
sales
promotion
for trial
AD/PR
decrease;
limited
sales
promotion;
personal
selling for
distribution
Ads decrease;
sales promotion;
personal selling;
reminder &
persuasive
Advertising,
PR, brand
loyalty;
personal
selling for
distribution
Introduction Growth
Maturity
Decline
Sales($)
Time
27. Type of Buying Decision
Advertising
Sales Promotion
Routine
Personal Selling
Neither Routine
nor Complex
Advertising
Public Relations
Print Advertising
Complex
28. Push and Pull Strategies
Manufacturer
promotes to
wholesaler
Wholesaler
promotes to
retailer
Retailer
promotes to
consumer
Consumer
buys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturer
promotes to
consumer
Consumer
demands
product
from retailer
Retailer
demands
product
from wholesaler
Wholesaler
demands
product from
manufacturer
Orders to manufacturer
PULL STRATEGY
31. IMC Popularity Growth
• Proliferation of thousands of
media choices
• Fragmentation of the mass market
• Slash of advertising spending in
favor of promotional techniques that
generate immediate response
33. Steps in Developing Effective Communications
Identify target
audience
Determine
objectives
Design
communications
Decide on media
mix
Establish budget Select channels
Measure results Manage IMC
34. • 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
• Step 2: Determining Communication
Objectives
– Objectives may be set to move buyers through the
six readiness stages
35. • Step 3: Designing a Message
– AIDA framework guides message design
– Message content
• Rational
• Emotional appeals: fear, humor, guilt, shame, love
• Moral appeals
• Designing a Message
– Message structure
• Draw a conclusion?
• One-sided or two-sided?
• Strongest arguments
presented first or last?
– Message format Novelty, contrast, and more
36. • Step 4: Choosing Media
– Personal communication channels
• Includes face-to-face, phone, mail, and
Internet chat communications
• Word-of-mouth influence is often critical
• Buzz marketing cultivates opinion leaders
– Nonpersonal communication channels
• Includes media, atmosphere, and events
• Step 5: Selecting the Message Source
– Highly credible sources are more persuasive
– A poor choice of spokesperson can tarnish a brand
37. Setting the Promotional Budget and
Mix
• Setting the Total Promotional Budget
– Affordability Method
• Budget is set at a level that a
company can afford
– Percentage-of-Sales Method
• Past or forecasted sales may
be used
– Competitive-Parity Method
• Budget matches competitors’
outlays
38. Setting the Promotional Budget and
Mix
• Setting the Total Promotional Budget
– 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
39. Setting the Promotional Budget and
Mix
• Setting the Overall Promotion Mix
– Determined by the nature of each promotional tool
and the selected promotion mix strategy
40. • Step 6: Collecting Feedback
– Recognition, recall, and behavioral measures are
assessed
– May suggest changes in product/promotion
41. Corporate Communication V/S Marketing Communications
Corporate communications Marketing
communications
Aim building company's reputation brand building
Scope of
communication
Company / Enterprise product/produce or
service provided by the
company
Target Audience multiple stakeholders customer
Mode multiple channels defined set of channels
Creativity less room for creativity more room for
creativity
Consistency With corporate identity, image,
philosophy; product & brand
attributes
With product and brand
attributes