Communication

Strategy

Session 7
Chapters 14, 15 & 16
 Marketing Promotions Mix
o Promotional mix is the combination of different
promotional elements that a company uses to reach
and influence potential customers
The specific mix of advertising, personal selling, sales
promotion, public relations and other tools a company uses
to pursue its marketing objectives.
o Every business has a unique promotional mix.
o When selecting elements for a promotional mix,
consider:
Target market
Product value
Promotional channels
Time frame
cost
Integrated Marketing Communications
Integrated Marketing Communications
o The concept under which a company carefully integrates and
coordinates its many communications channels to deliver a
clear, consistent, and compelling message about the
organization and its products.

o IMC implementation often requires the hiring of a MarCom

manager.
The Need for Integrated Marketing Communications
Conflicting messages from different sources or promotional
approaches can confuse company or brand images
The problem is particularly prevalent when functional
specialists handle individual forms of marketing
communications independently
 The Communication Process
o Communications efforts should be viewed from the perspective
of managing customer relationships over time.

oThe communication
process begins with an Noise Noise
audit of all potential Message
Channel
contacts.
Sender Receiver
oEffective communication
requires knowledge of Channel
how communication Feedback Response
works. Noise Noise Noise
 Major Decisions

Objectives Setting

Budget Decisions

Message Decisions Media Decisions

Campaign Evaluation:
Communication Effect & Sales Effect
Developing Effective Communication
o 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

o Step 2: Determining Communication Objectives

Six buyer readiness stages
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
 Developing Effective Communication (contd.)

oStep 3: Designing a Message

AIDA framework guides message design
(get Attention, hold Interest, arouse Desire, and then obtain Action)
Message content: Contains appeals or themes designed to
produce desired results
Rational appeals
Emotional appeals (Love, pride, joy, humor, fear, guilt, shame)
Moral appeals

Message Structure: Key decisions are required with

respect to three message structure issues:
Whether or not to draw a conclusion
One-sided vs. two-sided argument
Order of argument presentation

Message Format: Design, layout, copy, color, shape,

movement, words, sounds, voice, body language, dress, etc.
Developing Effective Communication (contd.)

o Step 4: Choosing Media

Personal communication channels
Includes face-to-face, phone, mail, Internet chat communications
Word-of-mouth influence is often critical
Buzz marketing cultivates opinion leaders
Non-personal communication channels
Includes media (paper, electronic), atmosphere, and events

o Step 5: Selecting the Message Source

Highly credible sources are more persuasive
A poor spokesperson can tarnish a brand
o Step 6: Collecting Feedback
Recognition, recall, and behavioral measures are assessed
May suggest changes in product/promotion
 Setting the Promotional Budget
o Affordability Method
Budget is set at a level that a company can afford

o Percentage-of-Sales Method
Past or forecasted sales may be used

o Competitive-Parity Method
Budget matches competitors outlays

o 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
 Setting the Promotional Mix
Determined by the nature of each promotion tool and
the selected promotion mix strategy

o Reaches large, geographically

Promotion Tools dispersed audiences, often with
high frequency

o Advertising o Low cost per exposure, though

overall costs are high
o Personal Selling
o Consumers perceive advertised
o Sales Promotion goods as more legitimate
o Public Relations o Dramatizes company/brand
o Direct Marketing
o Builds brand image; may stimulate
short-term sales
o Impersonal; one-way
communication
Setting the Promotional Mix

o Most effective tool for building

buyers preferences, convictions,
and actions
Promotion Tools
o Personal interaction allows for
feedback and adjustments
o Advertising
o Personal Selling o Relationship-oriented

o Sales Promotion o Buyers are more attentive

o Public Relations o Sales force represents a long-term
o Direct Marketing commitment

o Most expensive of the promotional

tools
Setting the Promotional Mix
o May be targeted at the trade or
ultimate consumer
o Makes use of a variety of formats:
Promotion Tools premiums, coupons, contests, etc.
o Attracts attention, offers strong
o Advertising purchase incentives, dramatizes
offers, boosts sales
o Personal Selling
o Stimulates quick response
o Sales Promotion
o Public Relations o Short-lived

o Direct Marketing o Not effective at building long-term

brand preferences
 Setting the Promotional Mix

o Highly credible

Promotion Tools o Many forms: news stories, news

features, events & sponsorships,
etc.
o Advertising
o Reaches many prospects missed
o Personal Selling via other forms of promotion
o Sales Promotion
o Dramatizes company or benefits
o Public Relations
o Often the most underused element
o Direct Marketing
in the promotional mix
Setting the Promotional Mix

Promotion Tools o Many forms: Telephone marketing,

direct mail, online marketing, etc.

o Four distinctive characteristics:

o Advertising Nonpublic
o Personal Selling Immediate
o Sales Promotion Customized
Interactive
o Public Relations
o Direct Marketing o Well-suited to highly targeted
marketing efforts

o May result in ineffective

 Promotion Mix Strategies
o Push strategy: trade promotions and personal selling
efforts push the product through the distribution channels.
Make product readily available to buyers
Heavy sales promotions

Producer marketing Retailer marketing

activities (personal selling, activities (personal selling,
trade promotion, etc.) Ad, sales promotion, etc.)

Wholesalers
Producer & Retailers Consumers

Figure: Push Strategy

 Promotion Mix Strategies (contd.)
o Pull strategy: producers use advertising and
consumer sales promotions to generate strong
consumer demand for products.
Promotional effort by a seller to stimulate demand among final users,
Who will then exert pressure on distribution channel to carry
good/service,
Pulling it though the marketing channel

Demand Demand
Producer Wholesalers Consumers
& Retailers

Producer marketing activities (consumer ad, sales promotion, etc.)

Figure: Pull Strategy