Promotion Strategy

Chapter 12 & 13

Lecturer: Ms. Sumudu Kariyawasam

Lesson objectives
• Define marketing communications.
• Discuss the concept of integrated marketing communication
(IMC),
• Describing the major promotion (communication) tools and
their unique characteristics.
What are
Marketing Communications?
Marketing communications are the means by which firms
attempt to inform, persuade, and remind consumers, directly or
indirectly, about the products and brands they sell.
Integrated marketing communications (IMC)

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.

4
Carefully blended mix of promotion tools

Personal
Personal
Advertising
Advertising selling
selling
Consistent,clear,and
Consistent,clear,and
compelling
compellingcompany
company
Sales
Sales Public
Public and
andproduct
product
promotion
promotion relations
relations Messages.
Messages.

Direct
Direct
marketing
marketing

5
Integrated marketing communications
Elements in the communication process

Message
Message
Sender
Sender Encoding
Encoding Decoding Receiver
Receiver
Decoding
Media
Media

Noise
Noise

Feedback
Feedback Response
Response

6
Sender’s field of experience Receiver’s field of experience
Steps in Developing Effective
Communication

Identifying
Identifyingthe
theTarget
TargetAudience
Audience

Determining
Determiningthe
thecommunication
communication
objectives
objectives
Designing
DesigningaaMessage
Message

Choosing
ChoosingMedia
Media

Selecting
Selectingthe
theMessage
MessageSource
Source
7
Collecting
CollectingFeedback
Feedback
Set the objectives by the buyer-readiness stages

Awareness
Awareness

Conviction
Conviction
Knowledge
Knowledge
Purchase
Purchase
Preference
Preference
Linking
Linking
Designing a message

Message
Messagecontent
content What
Whatto
tosay?
say?

Message
Messagestructure
structure
&&Message How
Howto
tosay?
say?
Message format
format

9
Choosing media

Personal
Personal Non-personal
Word-of-mouth
Word-of-mouth Non-personal
communication
communication communication
influence
influence communication
channel
channel channel
channel

10
Factors in Setting the Promotion Mix

• 1. Type of product / market;

• 2. Push versus pull strategy;
• 3. Buyer readiness stage.
• 4. Product life-cycle stage.

11
Communication (IMC) Mix
• The marketing organization divides the total marketing
communication budget among the major MC categories
specific media, tools and technologies:
1. Advertising,
2. Public relations,
3. Sales promotion,
4. Direct and online marketing and
5. Personal selling
• It must blend the mix of marketing communication so that
it will enable it to achieve its marketing objectives.
The
TheMarketing
MarketingCommunications
Communications
Mix
Mix––definitions
definitions
Advertising
Advertising Any
AnyPaid
PaidForm
FormofofNonpersonal
Nonpersonal
Presentation
Presentation by anIdentified
by an Identified
Sponsor.
Sponsor.

Selling
PersonalSelling
Personal Personal Presentations by a
Firm’s Sales Force.

Sales Promotion Short-term Incentives to

Encourage Sales.

Building Good Relations with

Public Relations Various Publics by Obtaining
Favorable Unpaid Publicity.

Direct Communications With

Direct Marketing Individuals to Obtain an
Immediate Response.
The promotional mix
 Personal selling: the presentation of a product
to a prospective customer by a firm’s sales
executive.

 Advertising: paid, non-personal mass

communication, in which the sponsor is
clearly identified.
 Sales promotion: demand-stimulating activity
designed to supplement advertising and co-
ordinate personal selling.

 Publicity: a non-paid form of advertising that

uses mass communication to stimulate demand.
 Public relations: a planned communication
effort by an organisation to contribute to
generally favourable attitudes and opinions
toward an organisation and its products.

9-4
Factors in Developing Promotion Mix Strategies
•Push Strategy - “Pushing” the Product Through
Distribution Channels to Final Consumers.

•Pull Strategy - Producer Directs It’s Marketing Activities

Toward Final Consumers to Induce Them to Buy the
Product.
 Push versus pull promotion strategy
Producer Reseller
• marketing marketing
activities Retailer activities
Producer Retailer&& Consumers
Producer wholesalers Consumers
wholesalers

Push strategy

Demand Demand
Producer Retailer
Retailer&& Consumers
Producer Consumers
wholesalers
wholesalers

Producer marketing activities

Pull strategy
Advertising
• Advertising is any paid form of non-personal
communication by an identified sponsor
• One-way communication
• Four elements:
• verbal and/or visual message
• a sponsor which is identified in the message
• delivery through one or more media
• payment by the sponsor to the media carrying the message
Advertising
• Different types of media include
• newspapers
• television
• direct mail
• radio
• magazines
• outdoor
• internet
Public Relations
Public relations involves building a good corporate image, building
relations with the firm’s publics and handling or heading off
unfavourable stories or rumours.
Kotler et al (2007)
Public Relations
• PR tools:
• Press relations
• Product publicity
• Corporate communication
• Lobbying
• Counselling
 Sales Promotion
• A direct inducement that offers extra value or incentive for
the product to the sales force, distributors or ultimate
consumer, with the primary objective of creating an
immediate sale
• Main tools are:
• Samples – in-store, through mail, in magazines…
• Price-offs – short term
• Refunds/rebates – on proof of purchase
• Premiums – free gifts
• Contests/games Bonus packs – 20% extra free…
• POP – in-store displays to encourage purchase
Personal Selling
• Personal presentation with one or more prospective buyers with the
goal of making a sale
• Flexible and responsive
• Two-way communication
• Expensive
What Is Direct Marketing?

Direct marketing is an interactive system of

marketing which uses one or more advertising
media to effect a measurable response and/or
transaction at any location

(Bob Stone, Successful Direct Marketing Methods. 4th ed, Lincolnwood, Illinois:
NTC Business Books, 1988), p. 3. )
Direct Marketing
• Direct marketing refers to those activities that
embrace ‘targeted media’ that enable interaction
between buyers and sellers.

• In each case, the aim is to add to or maintain the

marker’s database, maintain a relationship with
the consumer, take an order or receive a
payment of some other piece of salient
information.
 Direct
DirectMarketing
Marketing
Nonpublic,
Nonpublic,Immediate,
Immediate,Customized,
Customized,
Interactive
Interactive
Public
PublicRelations
Relations
Believable,
Believable, Effective,
Effective,Economical
Economical
Underused
Underusedby byMany
ManyCompanies
Companies
Sales
SalesPromotion
Promotion
Provides
ProvidesStrong
StrongIncentives
Incentivesto
toBuy
Buy
Short-Lived
Short-Lived
Personal
PersonalSelling
Selling
Personal
PersonalInteraction,
Interaction,Builds
BuildsRelationships
Relationships
Costly
Costly
Advertising
Advertising
Reaches
ReachesMany
ManyBuyers,
Buyers,Expressive
Expressive
Impersonal
Impersonal
Tool
Summary - Nature of Each Promotion
Advantages and disadvantages of
advertising
Advantages and disadvantages of
Direct marketing
Advantages and disadvantages of
Sales promotion
Advantages and disadvantages of
Personal selling