Week 8: Promotions Integrated Marketing Communications: advertising, Sales Promotion, Public Relations, and Direct Marketing Strategic Goals Of Marketing Communication Create awareness Build positive images Identify prospects Build channel relationships Retain customers Promotional Mix Promotional mix incorporates the combination and types of non-personal and personal communication the organization employs during a specified period Non-personal communication Advertising Sales promotion Public relations Direct marketing Personal communication Personal selling Promotional Mix Advertising Efficient for reaching many buyers simultaneously Effective way to create image of the brand Flexible Variety of media to choose from Reaches many people who are not potential buyers Ads are subject to criticism Exposure time is short People tend to screen out advertisements Total cost is high Sales promotion Supports short-term price reductions designed to stimulate debate Variety of sales promotion tools available Effective in changing short-term behavior Easy link to other communications
Risk inducing brand-loyal customers to stock up while not inducing others Impact may be limited to short-term Price-related sales promotion may hurt brand image Easy for competitors to copy Public relations Total cost may be low Media-generated stories seen as more credible than marketer-sponsored messages Media may not cooperate Heavy competition for media attention Marketer has little control over the message Direct marketing Message can be customized and prepared quickly Can facilitate a relationship with customer Managing and maintaining accurate database can be costly Often low customer response Personal selling Salespeople can be persuasive and influential Two-way communication allows for questions and other feedback Message can be targeted to specific individuals weaknesses Cost per contact is high Salespeople may be hard to recruit and motivate Presentation skills may vary between salespeople Buyer Impact Potential buyers go through a process Awareness of the product Comprehension of what it can do and important features Conviction that it has value for them Ordering on the part of a sufficient number of potential buyers Using Integrated Marketing Communication Traditional approach Focus on Making Transactions Customers Independent brand messages Mass media monologue with customers
Product claims Mass marketing and customer acquisition Integrated approach Focus on Building/nourishing relationships All stakeholders in the organizations Strategic consistency on brand messages Interactivity dialogue with customers Cross-functional planning and monitoring Buyer Impact Budgeting Approach Percent of sales Per-unit expenditure All you can afford Competitive parity The research approach The task approach Budget Allocation: Media Mix Measures of media effectiveness include Reach number of targeted audience members exposed at least once to the advertiser s message Frequency number of times they are exposed Cost per thousand based on a number of visits (to a website, for example)
Choosing Media Television Yellow Pages Newspaper Direct Mail Major Kinds of Media Magazine Transit Outdoor Radio Internet Media Review Newspapers Flexible and timely Intense coverage of local markets Broad acceptance and use High believability of printed word Short life Read hastily Small pass-along audience Radio Mass use Audience selectivity via station format Low cost Geographic flexibility Audio presentation only Less attention than TV Chaotic buying Short life Outdoor Flexible Relative absence of competing advertisements Repeat exposure Relatively inexpensive
Creative limitations Many distractions for viewer Public attack (ecological) No selectivity of audience Television Combination of sight, sound and motion Appeals to senses Mass audience coverage Psychology of attention Insecurity of audience retention Fleeting impressions Short life Expensive Magazines High geographic and demographic selectivity Psychology of attention Quality of reproduction Pass-along readership Long closing periods Some waste circulation No guarantee of position Direct mail Audience selectivity Flexible No competition from competing advertisements Personalized Relatively high cost Consumers often pay little or no attention to direct mail Internet Interactive Low cost per exposure Ads can be placed in interest sections Timely High information content possible New favorable medium
Low attention getting Short message life Readers selects exposure May be perceived as intruding Subject to download speeds Evaluation Procedures Specific advertisements Recognition tests Recall tests Opinion tests Theatre tests Specific advertising objectives Awareness Attitude Motivational impact Intention to buy Market test Sales Promotion Effective sales promotion moves consumers to Obtain a trial product Consider new or improved product Repeat or increase current usage Come into a retail stores Expand the total number of users of an established product lines An effective sales promotion motivates salespeople by Motivating sales force Educating the sales force about product improvements Stabilizing a fluctuating sales pattern An effective sales promotion motivates re sellers to Increase inventories Obtain displays and other support products Improve product distribution Obtain more and better shelf life P ush Versus Pull Marketing
Trade Promotion Rationale To convince retailer s to carry the manufacturer s products To reduce the manufacturer s and increase the distributors or retailer s inventories To support advertising and consumer sales promotion To encourage retailers to give the product more favorable shelf space To serve as a reward for past sales efforts Consumer Promotion Rationale To induce the customer to try the product To reward customers for brand loyalty To encourage the customer to trade up or try larger sizes of the product To stimulate repeat purchases To react to competitor efforts To reinforce other selling efforts