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Promotion mix (marketing communications mix)
Specific blend of promotion tools that the company uses to
persuasively communicate customer value and build
customer relationships.
The New Marketing Communications Model
Consumers are
changing, become
better informed
Marketing
strategies are
changing, become
more focused
and narrowed.
Remarkable
changes in the
ways companies
and customers
communicate with
each other.
In all, companies are doing less broadcasting and more
narrowcasting.
The Integration of Marketing Communications
Tradition of separation communication tools
Influence of specialized outside suppliers
Managerial parochialism
Skeptics who consider IMC to be a fad
Using multiple communication tools in conjunction with one
another can produce greater results (synergistic effects) than
tools used individually and in an uncoordinated fashion.
Why Not Integrated?
Developing Effective Marketing Communication
1. Identify the target audiences
2. Determine the communication objectives
3. Design a message
what to say and how to say
Developing Effective Marketing Communication
4. Choose the media
5. Select the message source
Personal vs nonpersonal
Communication channel
6. Collect feedback
Setting the Total Promotion Budget
Affordable method
Competitive-parity method
Objective-and-test
Percentage of-sales method
Socially Responsible Marketing Communication
Advertising and Sales Promotion Personal Selling
By law, companies must avoid false or
deceptive advertising. Advertisers
must not make false claims, such as
suggesting that a product cures
something when it does not.
Sellers must avoid bait-and-switch
advertising that attracts buyers under
false pretenses. For example, a large
retailer advertised a sewing machine at
$179. However, when consumers tried
to buy the advertised machine, the
seller downplayed its features etc in an
attempt to switch buyers to a more
expensive machine.
A company’s salespeople must follow
the rules of “fair competition.”
The Federal Trade Commission (FTC)
has adopted a three-day cooling-off
rule to give special protection to
customers who are not seeking
products. Under this rule, customers
who agree in their own homes,
workplace, dormitory, or facilities rented
by the seller on a temporary basis—
such as hotel rooms, convention
centers, and restaurants—to buy
something costing more than $25 have
72 hours in which to cancel a contract
or return merchandise and get their
money back—no questions asked.
Advertising Evaluation
• Return on advertising investment is the net return on
advertising investment divided by the costs of the
advertising investment.
• Measuring the communication effects of an ad or ad
campaign tells whether the ads and media are
communicating the ad message well.
• Advertisers have gotten pretty good at measuring the
communication effects of their ads and ad campaigns.
• However, sales and profit effects of advertising are often
much harder to measure.
PR department functions
• Press relations or press agency: Creating and placing newsworthy
information in the news media to attract attention to a person,
product, or service.
• Product publicity: Publicizing specific products.
• Public affairs: Building and maintaining national or local
community relationships.
• Lobbying: Building and maintaining relationships with legislators
and government officials to influence legislation and regulation.
• Investor relations: Maintaining relationships with shareholders and
others in the financial community.
• Development: Working with donors or members of nonprofit
organizations to gain financial or volunteer support
Major Public Relations Tools
PR Tools
News
Special
events
Written
materials
Audiovisual
materials
Corporate
identity
materials
Public
service
activities
The Role of the Sales Force
1. Representing the company to customers
2. Representing customers to the company
3. Working closely with marketing
Personal selling is the interpersonal part
of the promotion mix and can include:
• Face-to-face communication
• Telephone communication
• Video or Web conferencing
Major Steps in Sales Force Management
Territorial sales force structure
Product sales force structure
Customer sales force structure
Complex sales force structure
A study showed that the
average salesperson’s pay
consists of about 67
percent salary and 33
percent incentive pay
Steps in the Selling Process
Pushy Late Deceitful
Disorganized Unprepared
Good listeners
Empathetic Honest
Dependable ThoroughFollow-up
types
Bad Traits Good traits
Sales Promotion
Short-term incentives to encourage purchases or sales of a
product or service
Targeted toward final buyers (consumer promotions),
retailers and wholesalers (trade promotions), business
customers (business promotions), and members of the
sales force (sales force promotions).
Major Sales Promotion Tools
Samples Coupons Cash refunds Price packs
PremiumsAdvertising specialties
Patronage rewards
Point-of-purchase displays
Demonstrations Contests Sweepstakes Games