CHAPTER 9CHAPTER 9(blend of the chapters (blend of the chapters

13+14+15 of the text book)13+14+15 of the text book)

Integrated MarketIntegrated Marketinging Communication StrategyCommunication Strategy

ObjectiveObjective: examining the steps in : examining the steps in developing effective marketing developing effective marketing

communication and how the promotion communication and how the promotion budget and mix is determined.budget and mix is determined.

Steps in Developing Steps in Developing Effective CommunicationEffective Communication

It is not enough to develop a good It is not enough to develop a good product, price it attractively and make it product, price it attractively and make it available to target customers. Companies available to target customers. Companies also must communicate with their also must communicate with their customers to market their products.customers to market their products.

A company’s total marketing A company’s total marketing communication program is called the communication program is called the promotion mixpromotion mix which consists of (1) which consists of (1) advertising, (2) personal selling, (3) sales advertising, (2) personal selling, (3) sales promotion, and (4) public relations.promotion, and (4) public relations.

In order to develop effective In order to develop effective communications, the company must;communications, the company must;

1.1. Identify the target audienceIdentify the target audience

2. Determine the response sought2. Determine the response sought

3. Choose a message3. Choose a message

4. Choose the media through which to 4. Choose the media through which to send the messagessend the messages

5. Collect5. Collect feedbackfeedback

Identifying the Target Identifying the Target AudienceAudience

The target audience would be the potential The target audience would be the potential buyers or the current users of the product.buyers or the current users of the product.

The target audience affects the The target audience affects the communicator’s decisions oncommunicator’s decisions on;; what will be saidwhat will be said how will it be saidhow will it be said when it will be saidwhen it will be said where it will be saidwhere it will be said who will say itwho will say it

Determining the Response Determining the Response SoughtSought

Of Of course, the final response is purchase. course, the final response is purchase. Purchase is the result of a long process of Purchase is the result of a long process of consumer decision making. The marketing consumer decision making. The marketing communicator need to know where the communicator need to know where the target audience now stands, therefore, to target audience now stands, therefore, to what stage it needs to be moved.what stage it needs to be moved.

If the target market is totally unaware of If the target market is totally unaware of the product, knows only its name or knows the product, knows only its name or knows ver little about it, the communicator must ver little about it, the communicator must first build first build awarenessawareness andand knowledgeknowledge..

If the target market knows the product, the If the target market knows the product, the marketer must develop marketer must develop likingliking (feeling (feeling favorable about the product), favorable about the product), preferencepreference (prefering the product over the other (prefering the product over the other products), and products), and convictionconviction (believing that the (believing that the product is the best for them) product is the best for them)

If the target market is convinced about the If the target market is convinced about the product, the marketer must push the product, the marketer must push the consumers to do the consumers to do the purchasepurchase..

If the target market has started to forget the If the target market has started to forget the product, the marketer must product, the marketer must remindremind them them again.again.

Choosing a MessageChoosing a Message

The communicator must develop an effective The communicator must develop an effective message in order to get the desired audience message in order to get the desired audience response. Ideally the message should; response. Ideally the message should; get Attentionget Attention hold Interesthold Interest arouse Desirearouse Desire obtain Action (known as the AIDA model)obtain Action (known as the AIDA model)

In putting the message together, the In putting the message together, the marketing communicator must decide (1) marketing communicator must decide (1) what to say (what to say (message contentmessage content) and (2) how to ) and (2) how to say it (say it (message structure and formatmessage structure and format).).

Message ContentMessage Content

The communicator must create an appeal or The communicator must create an appeal or theme that would produce the desired theme that would produce the desired response. There are three types of appeals;response. There are three types of appeals; rational appealsrational appeals; relate to the audience’s self-; relate to the audience’s self-

interest. They show that the product will produce interest. They show that the product will produce the desired benefits. Messages include product’s the desired benefits. Messages include product’s quality, economy, value, or performance. E.g. quality, economy, value, or performance. E.g. Mercedes “engineered like no other car in the Mercedes “engineered like no other car in the world”. world”.

emotional appealsemotional appeals; attempt to st; attempt to stir up either negative ir up either negative (such as fear, guilt, shame) or positive (such as love, (such as fear, guilt, shame) or positive (such as love, humor, pride, joy) emotions that can motivate humor, pride, joy) emotions that can motivate purchase. purchase.

E.g. Crest in its toothpaste ads “there are E.g. Crest in its toothpaste ads “there are some things you just can’t afford to gamble some things you just can’t afford to gamble with”. with”.

moral appealsmoral appeals; are directed to the ; are directed to the audience’s sense of what is right and audience’s sense of what is right and proper.Messages include social issues such proper.Messages include social issues such as cleaner environment, equal rights for as cleaner environment, equal rights for women, aid to the needy...women, aid to the needy...

Message Structure and FormatMessage Structure and Format

The marketing communicator also needs a The marketing communicator also needs a strong structure and format for the message.strong structure and format for the message.

In a print ad, advertisers can use novelty, In a print ad, advertisers can use novelty, contrast, eye-catching pictures and contrast, eye-catching pictures and headlines, distinctive formats, message size headlines, distinctive formats, message size and position, colour, shape and movement.and position, colour, shape and movement.

In a radio ad, words, sounds, and voices.In a radio ad, words, sounds, and voices. On TV or in person, facial expressions, On TV or in person, facial expressions,

gestures, dress, posture and hair style...gestures, dress, posture and hair style...

Choosing MediaChoosing Media

After the message is chosen, the After the message is chosen, the communicator must select channels communicator must select channels of communication. There are two of communication. There are two broad types of communication broad types of communication channels;channels;

personalpersonal nonpersonalnonpersonal

Personal Communication Personal Communication ChannelsChannels

In personal communication channels, two In personal communication channels, two or more people communicate directly or more people communicate directly (face to face, over the telephone, or even (face to face, over the telephone, or even through mail) with each other. through mail) with each other.

Personal communication channels are Personal communication channels are effective because they allow for personal effective because they allow for personal addressing and feedback.addressing and feedback.

Besides company salespeople, consumer Besides company salespeople, consumer buying guides etc, neighbours, friends, buying guides etc, neighbours, friends, family members, family members,

and associates may communicate with the and associates may communicate with the target buyers. This is known as word-of-target buyers. This is known as word-of-mouth influence.mouth influence.

Personal communication is more important Personal communication is more important for expensive, risky or highly visible products for expensive, risky or highly visible products e.g. automobiles for which consumers seek e.g. automobiles for which consumers seek opinions of knowledgeable people. opinions of knowledgeable people.

Companies can create Companies can create opinion leadersopinion leaders (people whose opinions are sought by others) (people whose opinions are sought by others) to make them work for the company by to make them work for the company by supplying those opinion leaders with the supplying those opinion leaders with the product on attractive terms. Opinion leaders product on attractive terms. Opinion leaders would be radio personalities, heads of would be radio personalities, heads of organizations ….organizations ….

Nonpersonal Communication Nonpersonal Communication ChannelsChannels

Nonpersonal communication channels are Nonpersonal communication channels are media that carry messages without personal media that carry messages without personal contact or feedback. contact or feedback.

They include media, atmosphere and events.They include media, atmosphere and events. MediaMedia; include print media (newspaper, magazines, ; include print media (newspaper, magazines,

direct mail); broadcast media (radio, television); direct mail); broadcast media (radio, television); and display media (billboards, signs, posters)and display media (billboards, signs, posters)

AtmospheresAtmospheres; are designed environments to create ; are designed environments to create and reinforce buyer’s leaning toward purchasing a and reinforce buyer’s leaning toward purchasing a product. E.g. lobby design of a hotel.product. E.g. lobby design of a hotel.

EventsEvents; are staged occurrences that ; are staged occurrences that communicate messages to target communicate messages to target audiences. E.g. press conferences, grand audiences. E.g. press conferences, grand openings, shows, exhibitions, public tours, openings, shows, exhibitions, public tours, and other events.and other events.

Such nonpersonal communications may Such nonpersonal communications may first flow to the opinion leaders and first flow to the opinion leaders and then from them to the target audiences. then from them to the target audiences. That is why, most of the time, mass That is why, most of the time, mass communicators aim their messages communicators aim their messages directly at opinion leaders.directly at opinion leaders.

The Message SourceThe Message Source

The message’s impact on the target The message’s impact on the target market is also affected by the market is also affected by the message source.message source.

Messages delivered by highly Messages delivered by highly credible sources are more persuasive. credible sources are more persuasive. Many food companies aim promotions Many food companies aim promotions at doctors, dentists… Marketers also at doctors, dentists… Marketers also use well-known actors, cartoon use well-known actors, cartoon characters …Beyaz ads for Rinso ...characters …Beyaz ads for Rinso ...

Collecting FeedbackCollecting Feedback

After sending the message, the After sending the message, the communicator must research its communicator must research its effect on the target audience. This effect on the target audience. This involves asking the target members involves asking the target members their opinion and behaviour about their opinion and behaviour about the message. the message.

Setting the Total Setting the Total Promotion BudgetPromotion Budget

The marketer must decide how much to The marketer must decide how much to spend on promotion.According to the type of spend on promotion.According to the type of industry, the promotion spendings vary. E.g. industry, the promotion spendings vary. E.g. 20-30%of the sales in cosmetics, 2-3%in 20-30%of the sales in cosmetics, 2-3%in industrial machinery.industrial machinery.

There are basically four methods to set the There are basically four methods to set the total budget for advertising;total budget for advertising; affordable methodaffordable method percentage-of-sales methodpercentage-of-sales method competitive-parity methodcompetitive-parity method objective-and-task method objective-and-task method

Affordable MethodAffordable Method

Setting the promotion budget at the level that Setting the promotion budget at the level that management thinks the company can afford.management thinks the company can afford.

Small companies project their total revenues, Small companies project their total revenues, deduct their operating expenses and capital deduct their operating expenses and capital outlays, and then devote some of the outlays, and then devote some of the remaining funds to advertising.remaining funds to advertising.

This method places advertising last among This method places advertising last among expenses, therefore, ignores the effects of expenses, therefore, ignores the effects of promotion on sales.promotion on sales.

This method may result in either over or underThis method may result in either over or under spending for advertising. spending for advertising.

Percentage-of-Sales MethodPercentage-of-Sales Method

Setting the promotion budget at a certain Setting the promotion budget at a certain percentage of current or forecasted sales or percentage of current or forecasted sales or as a percentage of the sales price. as a percentage of the sales price.

The advantage of this method is that it helps The advantage of this method is that it helps management think about the relationships management think about the relationships between promotion spending, selling price, between promotion spending, selling price, and profit per unit.and profit per unit.

The disadvantages are; (1) it wrongly views The disadvantages are; (1) it wrongly views sales as the cause of promotion rather than as sales as the cause of promotion rather than as the result, (2) it may prevent increase in the result, (2) it may prevent increase in promotionalpromotional

spending, when the sales are falling, (3) spending, when the sales are falling, (3) it does not provide any basis for it does not provide any basis for choosing a specific percentage, except choosing a specific percentage, except last year’s and competitors last year’s and competitors percentages.percentages.

Competitive-Parity MethodCompetitive-Parity Method

Setting the promotion budget to match Setting the promotion budget to match competitor’s outlays. The company monitors competitor’s outlays. The company monitors competitor’s advertising or industry averages.competitor’s advertising or industry averages.

The advantage of this method is that it mat The advantage of this method is that it mat prevent promotional wars.prevent promotional wars.

The disadvantages of this method are; (1) The disadvantages of this method are; (1) each company has its own promotional needs, each company has its own promotional needs, therefore, the competitors’ spending may be therefore, the competitors’ spending may be misleading, (2) there is no guarantee that this misleading, (2) there is no guarantee that this method will prevent promotion wars. method will prevent promotion wars.

Objective-and-Task MethodObjective-and-Task Method

Setting promotion budgets based on what Setting promotion budgets based on what the company wants to accomplish with the company wants to accomplish with promotion.promotion.

This is the most logical budget setting where This is the most logical budget setting where the company (1) defines specific promotion the company (1) defines specific promotion objectives, (2) determines the tasks needed objectives, (2) determines the tasks needed to achieve these objectives, (3) estimates the to achieve these objectives, (3) estimates the total costs of performing these tasks.total costs of performing these tasks.

This is the most difficult method to use This is the most difficult method to use because it is hard to understand which tasks because it is hard to understand which tasks will achievewill achieve

specific objectives. E.g. if Sony wants to specific objectives. E.g. if Sony wants to create 95% awareness for its new create 95% awareness for its new camera within 6 months, it is difficult to camera within 6 months, it is difficult to decide what messages and promotions decide what messages and promotions to use and how much to spend.to use and how much to spend.

Setting the Promotion Setting the Promotion MixMix

After the budget has been determined, the After the budget has been determined, the marketer must decide which promotion marketer must decide which promotion tools to use - advertising, personal selling, tools to use - advertising, personal selling, sales promotion, and public relations. He sales promotion, and public relations. He must blend the promotion tools into a must blend the promotion tools into a coordinated promotion mix.coordinated promotion mix.

The following factors influence the The following factors influence the marketer’s choice of promotion tools;marketer’s choice of promotion tools; the nature of each promotion toolthe nature of each promotion tool promotion mix strategiespromotion mix strategies

The Nature of The Nature of Each Promotion ToolEach Promotion Tool

Each promotion tool - advertising, Each promotion tool - advertising, personal selling, sales promotion, personal selling, sales promotion, and public relations has unique and public relations has unique characteristics and costs. Marketers characteristics and costs. Marketers must understand theses must understand theses characteristics in order to select the characteristics in order to select the proper tools. proper tools.

AdvertisingAdvertising

Advertising is any paid form of nonpersonal Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods presentation and promotion of ideas, goods or services by an identified sponsor.or services by an identified sponsor.

Major media types are;Major media types are; newspapersnewspapers televisiontelevision direct maildirect mail radioradio magazinesmagazines outdooroutdoor

AdvantagesAdvantages low cost per contactlow cost per contact ability to reach customers where and ability to reach customers where and

when salespersons cannotwhen salespersons cannot great scope of creative versatility and great scope of creative versatility and

dramatization of messagesdramatization of messages ability to create images that salespersons ability to create images that salespersons

cannot - “institutional advertising” is a cannot - “institutional advertising” is a form of advertising done to create a form of advertising done to create a favourable image of an organization.favourable image of an organization.

nonthreatening nature of nonpersonal nonthreatening nature of nonpersonal presentationpresentation

potential to repeat message several timespotential to repeat message several times

prestige and impressiveness of mass-prestige and impressiveness of mass-media advertisingmedia advertising

DisadvantagesDisadvantages inability to “close” salesinability to “close” sales advertising “clutter” advertising “clutter” customer’s ability to ignore advertising customer’s ability to ignore advertising

messagesmessages difficulty getting immediate response difficulty getting immediate response

or actionor action difficulty measuring advertising difficulty measuring advertising

effectivenesseffectiveness relatively high “waste” factorrelatively high “waste” factor

Advertising aims to (1) inform, (2) Advertising aims to (1) inform, (2) persuade, or (3) remind. persuade, or (3) remind.

Informative advertising;Informative advertising; tells the market about a new producttells the market about a new product informs the market of a price changeinforms the market of a price change explains how the product worksexplains how the product works describes available servicesdescribes available services corrects false impressionscorrects false impressions reduces consumer’s fearsreduces consumer’s fears builds a company imagebuilds a company image

Possible Advertising ObjectivesPossible Advertising Objectives

Persuasive advertising; Persuasive advertising; builds brand preferencebuilds brand preference encourages switching to the brand of the encourages switching to the brand of the

companycompany persuades customers to purchase now or persuades customers to purchase now or

make a sales callmake a sales call Reminder advertising;Reminder advertising;

keeps the product in customer’s mind keeps the product in customer’s mind during off-seasonduring off-season

maintains the product’s top-of-mind maintains the product’s top-of-mind awarenessawareness

remind consumers where to buy the remind consumers where to buy the productproduct

Profiles of Major Media TypesProfiles of Major Media Types

NewspapersNewspapers: reach many people but have : reach many people but have limited opportunity to reach market limited opportunity to reach market segments , have short life time, do not segments , have short life time, do not have reproduction quality.have reproduction quality.

MagazinesMagazines: have many advantages over : have many advantages over newspapers like having high-qualitynewspapers like having high-quality reproduction, color availability, prestige, reproduction, color availability, prestige, audience selectivity, and long life. audience selectivity, and long life. However, cost more, prepared in a long However, cost more, prepared in a long time, and reduce an advertiser’s ability to time, and reduce an advertiser’s ability to repeat ads.repeat ads.

RadioRadio: can reach an entire area, specific : can reach an entire area, specific target markets by matching the radio target markets by matching the radio station and time with the property’s station and time with the property’s target market. However, if not repeated, target market. However, if not repeated, they have shot life span.they have shot life span.

TelevisionTelevision: television’s main advantage : television’s main advantage over radio is that it combines sight with over radio is that it combines sight with sound. TV commercials can show friendly sound. TV commercials can show friendly company staff. Gets high attention, and company staff. Gets high attention, and remembered as a result. Commercials remembered as a result. Commercials can run many times daily and reach many can run many times daily and reach many people, and can reach specific audiences people, and can reach specific audiences by selecting the correct TV shows. by selecting the correct TV shows. However, they are very expensive. However, they are very expensive.

Outdoor AdvertisingOutdoor Advertising: billboards along : billboards along highways or in and around large cities are highways or in and around large cities are used to remind and attract potential guests used to remind and attract potential guests about the product. They must be bold, about the product. They must be bold, dynamic and graphic so that passersby can dynamic and graphic so that passersby can get the message at a glance. They have get the message at a glance. They have large circulation, broad reach and low cost large circulation, broad reach and low cost but have limited message length.but have limited message length.

Direct MailDirect Mail: involves the mailing of the : involves the mailing of the advertising message in brochures, coupons advertising message in brochures, coupons or other formats. It is especially used by or other formats. It is especially used by clubs, and banks for credit card holders clubs, and banks for credit card holders and members. It allows audience and members. It allows audience selectivity, can be personalized, and easily selectivity, can be personalized, and easily measured but have high cost of developing measured but have high cost of developing and mailing.and mailing.

Sales PromotionSales Promotion

Sales promotions are short-term Sales promotions are short-term incentives to to make an immediate incentives to to make an immediate purchase or sales of a product or purchase or sales of a product or service.service.

Advertising offers reasons to buy a Advertising offers reasons to buy a product or service, sales promotion product or service, sales promotion offers reasons to buy offers reasons to buy nownow..

AdvantagesAdvantages generating immediate purchase in a large generating immediate purchase in a large

extentextent ability to provide quick feedbackability to provide quick feedback ability to add excitement to a service or productability to add excitement to a service or product flexible timingflexible timing efficiencyefficiency

DisadvantagesDisadvantages short-term benefitsshort-term benefits ineffective in building long-term loyalty for ineffective in building long-term loyalty for

company or “brand”company or “brand” inability to be used on its own in the long term inability to be used on its own in the long term

without other promotional mix elementswithout other promotional mix elements often misused for just short-term benefitsoften misused for just short-term benefits

Profiles of Major Sales PromotionsProfiles of Major Sales Promotions

Consumer-Promotion ToolsConsumer-Promotion Tools CouponingCouponing: attract potential guests with a : attract potential guests with a

special offer such as a free night’s lodging special offer such as a free night’s lodging after a special number of credits. They can after a special number of credits. They can be given out personally, included in direct be given out personally, included in direct mail advertising or printed in newspapers mail advertising or printed in newspapers and magazines. They can increase off-season and magazines. They can increase off-season business with other sales promotions such as business with other sales promotions such as bonus offers or discounting.bonus offers or discounting.

Product SamplingProduct Sampling: introduces new products : introduces new products to the guests, some are free, most effective toto the guests, some are free, most effective to

introduce a product but most expensive as introduce a product but most expensive as well, determines whether guests like a new well, determines whether guests like a new product and encourages them to order the product and encourages them to order the item.item.

ContestsContests: give consumers a chance to win : give consumers a chance to win something such as cash, trips, goods by luck something such as cash, trips, goods by luck or through extra effort, can increase sales, or through extra effort, can increase sales, should be cost effective - increased sales should be cost effective - increased sales should offset the cost of contest promotions should offset the cost of contest promotions and prizes. E.g. Coca-Cola New Year’s prize (a and prizes. E.g. Coca-Cola New Year’s prize (a BMW) will be one of the customers who sent BMW) will be one of the customers who sent the correct amount of Coca-Cola lid.the correct amount of Coca-Cola lid.

PackagesPackages: offer consumers savings off the : offer consumers savings off the regula price of a product, have discount price regula price of a product, have discount price to attract new guests and increase sales. E.g. to attract new guests and increase sales. E.g. aa

holiday package including lodging, holiday package including lodging, transportation, and food and beverage transportation, and food and beverage with awith a reasonable price. reasonable price.

PremiumsPremiums: they are given to guests who : they are given to guests who pay the regular prices for certain pay the regular prices for certain products or services. E.g. an upgraded products or services. E.g. an upgraded room might be provided or free movie room might be provided or free movie tickets for the restaurant guests. Pizza tickets for the restaurant guests. Pizza Hut’s free drinks when a large pizza is Hut’s free drinks when a large pizza is ordered. Or when a customer buys one ordered. Or when a customer buys one shampoo, he gets the third one free.shampoo, he gets the third one free.

Gifts or Gift CertificatesGifts or Gift Certificates: free gifts or : free gifts or cash offers, are used by chains or cash offers, are used by chains or exclusive properties to increase sales. exclusive properties to increase sales. E.g. key chains, T-Shirts…E.g. key chains, T-Shirts…

DiscountingDiscounting: straight reduction from the : straight reduction from the list price of a product during a stated list price of a product during a stated period of time, are used to attract more period of time, are used to attract more guests and increase total sales. E.g. one guests and increase total sales. E.g. one dinner on the menu might be reduced to dinner on the menu might be reduced to 50%. Benetton reduces its prices by 20% 50%. Benetton reduces its prices by 20% during the low season. during the low season.

Bonus OffersBonus Offers: the consumer buys a product : the consumer buys a product or service at the regular price and then or service at the regular price and then receives a bonus, generally directed to the receives a bonus, generally directed to the regular users, E.g. guest buys three dinners regular users, E.g. guest buys three dinners at a regular price and the fourth one at a regular price and the fourth one becomes free. Or when the customer uses becomes free. Or when the customer uses his credit card, each time he gets credits, his credit card, each time he gets credits, and when he reaches a certain creditand when he reaches a certain credit

point, he is entitled to get free gifts such as point, he is entitled to get free gifts such as toasters, hair dryers... toasters, hair dryers...

Trade-Promotion ToolsTrade-Promotion Tools DiscountingDiscounting: straight reduction from the list : straight reduction from the list

price on purchases during a stated period price on purchases during a stated period of time, encourages dealers to buy in of time, encourages dealers to buy in quantity or to carry a new item; dealers can quantity or to carry a new item; dealers can use the discount for immediate profit, for use the discount for immediate profit, for advertising, or for price reductions to their advertising, or for price reductions to their customers.customers.

AllowanceAllowance: promotional money paid by : promotional money paid by manufacturers to retailers who agree to manufacturers to retailers who agree to help promote the manufacturer’s products help promote the manufacturer’s products in some way. E.g. an advertising allowance in some way. E.g. an advertising allowance compensates retailers for advertising thecompensates retailers for advertising the

product. A display allowance product. A display allowance compensates them for using special compensates them for using special displays.displays.

Free goods or push moneyFree goods or push money: cash or : cash or gifts to dealers or their sales force to gifts to dealers or their sales force to “push” the manufacturer’s goods. “push” the manufacturer’s goods.

Specialty advertising itemsSpecialty advertising items: they : they carry the company’s name, such as carry the company’s name, such as pens, pencils, calendars, pens, pencils, calendars, paperweights, memo pads, ashtrays...paperweights, memo pads, ashtrays...

Public RelationsPublic Relations

Building good relations with the Building good relations with the company’s various public’s by company’s various public’s by obtaining favourable publicity, obtaining favourable publicity, building up a good “corporate building up a good “corporate image” and handling or heading off image” and handling or heading off unfavourable rumors, stories and unfavourable rumors, stories and events.events.

AdvantagesAdvantages low costlow cost effective because they are not seen as effective because they are not seen as

commercial messagescommercial messages credibility credibility prestige and impressiveness of mass-prestige and impressiveness of mass-

media coveragemedia coverage added excitement and dramatizationadded excitement and dramatization maintenance of “public” presencemaintenance of “public” presence

DisadvantageDisadvantage difficult to arrange consistentlydifficult to arrange consistently lack of controllack of control

Major Public Relations Major Public Relations ToolsTools

NewsNews: PR people find or create favorable : PR people find or create favorable news about the company and its products news about the company and its products or people. Sometimes news stories occur or people. Sometimes news stories occur naturally, and sometimes the PR person naturally, and sometimes the PR person suggests events or activities (e.g. X suggests events or activities (e.g. X conference, Miss World…) that would conference, Miss World…) that would create news. create news.

SpeechesSpeeches: company executives answer : company executives answer the questions from the media or give the questions from the media or give talks at trade associations or sales talks at trade associations or sales meetings.meetings.

Special eventsSpecial events: ranging from news : ranging from news conferences, receptions, press tours (fam conferences, receptions, press tours (fam trips), grand openings… to reach and trips), grand openings… to reach and interest target publics. interest target publics.

Written materialsWritten materials: : include press release, include press release, annual reports, brochures, articles, annual reports, brochures, articles, company newsletters, magazines… to reach company newsletters, magazines… to reach and influence the target markets.and influence the target markets.

Audiovisual materialsAudiovisual materials: such as films, video- : such as films, video- and audiocassettes…and audiocassettes…

Corporate-identity materialsCorporate-identity materials: help to create : help to create a corporate identity that the public a corporate identity that the public immediately recognizes such as logos, immediately recognizes such as logos, stationery, brochures, signs, business stationery, brochures, signs, business forms, business cards, buildings, forms, business cards, buildings,

uniforms, company cars and trucks uniforms, company cars and trucks become marketing tools when they become marketing tools when they are attractive, distinctive, and are attractive, distinctive, and memorable.memorable.

Public-service activitiesPublic-service activities: companies : companies can also improve their goodwill by can also improve their goodwill by contributing money and time to contributing money and time to public-service activities. E.g. giving public-service activities. E.g. giving donations to street children.donations to street children.

Personal SellPersonal Sellinging Personal selling involves oral conversations. Personal selling involves oral conversations.

These are held, either by telephone or face-to-These are held, either by telephone or face-to-face, between salespersons and prospective face, between salespersons and prospective customers.customers.

The people who do the selling go by many The people who do the selling go by many names: salespeople, sales representatives, names: salespeople, sales representatives, account executives, sales consultants, sales account executives, sales consultants, sales engineers, agents, district managers, and engineers, agents, district managers, and marketing representatives.marketing representatives.

The major roles of the sales force are (1) The major roles of the sales force are (1) representing the company to customers, (2) representing the company to customers, (2) representing customers to the company, (3) representing customers to the company, (3) producing customer satisfaction and company producing customer satisfaction and company profits. profits.

AdvantagesAdvantages ability to close salesability to close sales ability to hold the customer’s attentionability to hold the customer’s attention immediate feedback and two-way immediate feedback and two-way

communicationscommunications presentations tailored to individual needspresentations tailored to individual needs ability to target customers preciselyability to target customers precisely ability to cultivate relationshipsability to cultivate relationships ability to get immediate actionability to get immediate action

DisadvantagesDisadvantages high cost per contacthigh cost per contact inability to reach some customers as inability to reach some customers as

effectivelyeffectively

The Changing Face of The Changing Face of Marketing Marketing

CommunicationsCommunicationsTwo major factors are changing the face of Two major factors are changing the face of today’s marketing communications. today’s marketing communications.

First, as mass markets have fragmented, First, as mass markets have fragmented, companies are shifting away from mass companies are shifting away from mass marketing. Now, they are developing focused marketing. Now, they are developing focused marketing programs designed to build closer marketing programs designed to build closer relationships with customers in more narrowly relationships with customers in more narrowly defined micromarkets.defined micromarkets.

Second, the improvements in computer and Second, the improvements in computer and information technology helps marketers to information technology helps marketers to reach smaller customer segments more reach smaller customer segments more effectively.effectively.

Direct MarketingDirect Marketing

Direct marketing is the new way of marketing Direct marketing is the new way of marketing communications. Here, the company markets communications. Here, the company markets through various advertising media that through various advertising media that interact directly with consumers, generally interact directly with consumers, generally encouraging the consumer to make a direct encouraging the consumer to make a direct response. In other words, direct marketing response. In other words, direct marketing consists of direct communications with consists of direct communications with carefully targeted consumers to obtain an carefully targeted consumers to obtain an immediate response.immediate response.

There are four major forms of direct There are four major forms of direct marketing are; marketing are;

direct-mail and catalog marketingdirect-mail and catalog marketing; involves mailing ; involves mailing of letters, ads, samples, foldouts… sent to potential of letters, ads, samples, foldouts… sent to potential customers on mailing lists. The mailing lists are customers on mailing lists. The mailing lists are developed from customer lists or obtained from developed from customer lists or obtained from mailing-list houses. Catalog marketing involves mailing-list houses. Catalog marketing involves selling through catalogs that are mailed to a select selling through catalogs that are mailed to a select list customers or made available in stores.list customers or made available in stores.

telemarketingtelemarketing; using the telephone to sell directly to ; using the telephone to sell directly to consumers. Outbound telephone marketing is used consumers. Outbound telephone marketing is used directly to consumers and businesses. Inbound too-directly to consumers and businesses. Inbound too-free 800 numbers are used to receive orders from free 800 numbers are used to receive orders from television and radio ads, direct mail, or catalogs.television and radio ads, direct mail, or catalogs.

television marketingtelevision marketing; takes two major forms. The first ; takes two major forms. The first is direct-response advertising where marketers air is direct-response advertising where marketers air television spots, often 60 to 120 seconds long, that television spots, often 60 to 120 seconds long, that persuasively describe a product and give customers apersuasively describe a product and give customers a toll-free number for ordering. Home shopping toll-free number for ordering. Home shopping channels is another form of television direct channels is another form of television direct marketing which are television programs or entire marketing which are television programs or entire channels dedicated to selling gods and services.channels dedicated to selling gods and services.

online computer shoppingonline computer shopping: is conducted through : is conducted through interactive online computer systems which link interactive online computer systems which link consumers with sellers electronically. Consumers use consumers with sellers electronically. Consumers use a home computer to hook into the system through a home computer to hook into the system through cable or telephone lines.cable or telephone lines.

Promotion Mix Promotion Mix StrategiesStrategies

Marketers can choose from two basic Marketers can choose from two basic promotion mix strategies;promotion mix strategies; push promotionpush promotion; a push strategy involves ; a push strategy involves

“pushing” the product through “pushing” the product through distribution channels to final consumers. distribution channels to final consumers. Here, the producer directs its Here, the producer directs its promotional activities (primarily personal promotional activities (primarily personal selling and trade promotion) toward selling and trade promotion) toward channel members to induce them to carry channel members to induce them to carry the product and to promote it t final the product and to promote it t final consumers.consumers.

pull promotionpull promotion; the producer directs its ; the producer directs its promotional activities (advertising and promotional activities (advertising and consumer promotion) toward final consumer promotion) toward final consumers to induce them to buy the consumers to induce them to buy the product. Ifproduct. If the pull strategy is effective, the pull strategy is effective, consumers then will demand the product consumers then will demand the product from channel members.from channel members.

Companies generally use both of them in Companies generally use both of them in combination.combination.

Companies consider the following factors when Companies consider the following factors when developing their promotion mix strategies;developing their promotion mix strategies; type of product/markettype of product/market the buyer-readiness stagethe buyer-readiness stage the product life-cycle stagethe product life-cycle stage

Type of Product/MarketType of Product/Market

The importance of different promotion tools The importance of different promotion tools varies between consumer and business varies between consumer and business markets.markets.

Consumer goods companiesConsumer goods companies;; pull morepull more spend more on advertising, then sales spend more on advertising, then sales

promotion, personal selling, and public promotion, personal selling, and public relationsrelations

Industrial goods companiesIndustrial goods companies; ; push morepush more spend more on personal selling, then sales spend more on personal selling, then sales

promotion, advertising, public relationspromotion, advertising, public relations

Generally, personal selling is used more Generally, personal selling is used more heavily with expensive and risky goods heavily with expensive and risky goods and in markets with fewer and larger and in markets with fewer and larger sellers.sellers.

Buyer-Readiness StageBuyer-Readiness Stage

The effects of the promotional tools vary for The effects of the promotional tools vary for the different buyer-readiness stages. the different buyer-readiness stages.

In the In the awareness and knowledgeawareness and knowledge stages; stages; advertising and public relations play the advertising and public relations play the major role rather than personal selling.major role rather than personal selling.

In the In the customer liking, preference and customer liking, preference and convictionconviction stages; personal selling makes stages; personal selling makes more sense.more sense.

In the In the purchasepurchase stage (closing the sale stage); stage (closing the sale stage); sales calls and sales promotions are most sales calls and sales promotions are most effective. effective.

Product Life-Cycle StageProduct Life-Cycle Stage

The effects of different promotion tools also The effects of different promotion tools also vary with stages of the product life cycle.vary with stages of the product life cycle.

In the In the introduction stageintroduction stage; advertising and ; advertising and public relations are good for producing high public relations are good for producing high awareness and sales promotion is useful in awareness and sales promotion is useful in promoting early trial. Personal selling must promoting early trial. Personal selling must be used to get the trade to carry the product.be used to get the trade to carry the product.

In the In the growth stagegrowth stage; advertising and public ; advertising and public relations are still powerful but sales relations are still powerful but sales promotions can be reduced.promotions can be reduced.

In the In the mature stagemature stage; sales promotion ; sales promotion again becomes important relative to again becomes important relative to advertising. Advertising is only needed advertising. Advertising is only needed to remind the consumers of the to remind the consumers of the product.product.

In the In the decline stagedecline stage; advertising is ; advertising is kept to remind, public relations may kept to remind, public relations may drop, salespeople give up, sales drop, salespeople give up, sales promotions may still be used.promotions may still be used.