Definition
• Marketing Communications Mix
– Consists of advertising, personal selling, sales
promotion, and public relations a company
uses to pursue its advertising and marketing
objectives.
– Also called Promotion mix
Integrated Marketing
Communications
• The Changing Communications Environment:
– Mass markets have fragmented, causing marketers to
shift away from mass marketing to segmented
Marketing
• Marketing programs are designed to build closer
relationships with customers
– Improvements in information technology are
facilitating segmentation
Integrated Marketing
Communications
• The Need for Integrated Marketing Communications
– Conflicting messages from different sources or promotional
approaches can confuse consumers.
• The problem is particularly prevalent when
functional specialists handle individual forms of marketing
communications independently
Integrated Marketing
Communications
• The Need for Integrated Marketing Communications
– All the communication tools must be carefully integrated to
target the customers
– The best way is to wed impact of traditional brand marketing
with the interactive and real service offered online
Integrated Marketing
Communications
• Integrated Marketing Communications
– 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.
Elements of the Promotion
Mix
Advertising
Public Relations/ Publicity
Ingredients
Ingredients
of
of the
the
Promotion
Promotion
Mix
Mix Personal Selling
Sales Promotion
Elements of Promotion MIX
Personal selling
- The direct presentation of a product to a prospective
customer by a representative of the organization
selling it
- It takes place face-to-face or over the phone
- It may be directed to a business person or a final
customer
- Across all organizations, more money is spent on
personal selling than on any other form of promotion
Advertising
- Non personal communication paid for by a
clearly identified sponsor promoting ideas,
organizations, or products
- Most familiar outlets are broadcast (TV, radio)
and print (newspapers, magazines) media
- However, there are many other advertising
vehicles, from billboards to T-Shirts and, more
recently, the Internet
- Sales promotion
- A sponsor-funded, demand-stimulating
activity designed to supplement advertising
and facilitate personal selling
- Frequently consists of a temporary incentive
to encourage a sale or purchase
- Included are a wide spectrum of activities,
such as event sponsorships, frequency
programs, contests, trade shows, in-store
displays, rebates, samples, premiums,
discounts, and coupons
- Public relations
- Unlike most advertising and personal selling, it does not
include a specific sales message
- PR can take many forms, including newspapers, annual
reports, lobbying, and support of charitable or civic events
- Publicity
- is a special form of PR that involves news stories about
an organization or its products
- Like advertising, it consists of an impersonal message
that reaches a mass audience
- Organizations should try to provide the material for good
publicity
The Promotion Mix
Direct marketing involves making direct connections with
carefully targeted individual consumers to both obtain an
immediate response and cultivate lasting customer
relationships—through the use of direct mail, telephone,
direct-response television, e-mail, and the Internet to
communicate directly with specific consumers
• Catalog
• Telemarketing
• Kiosks (kiosk is a booth with an open window on one side.
Some vendors operate from kiosks (see mall kiosk), selling
small, inexpensive consumables such as newspapers,
magazines, lighters, street maps, cigarettes, and confections.)
The Role of Promotion in Marketing
- Promotion is intended to make a product more
attractive to prospective customers
- Through promotion a company strives to increase its
product’s sales volume at any given price; that is, the
firm seeks to shift its demand curve to the right
- A firm also hopes that promotion will affect the
demand elasticity for its product; the intent is to
make the demand more inelastic when price
increases and more elastic when price decreases
Advantages of Advertising
Low cost per contact.
Ability to reach potential visitors where sales
staff cannot.
Great scope for creative versatility and
dramatization of messages.
Ability to create images that sales staff
cannot.
Non-threatening nature of non-personal
presentation.
Prestige and impressiveness of mass-media
advertising.
Disadvantages of Advertising
Inability to close sales.
Ability for visitor to ignore advertising
messages.
Difficulties in getting immediate response
and action.
Difficulties in getting quick feedback and in
adjusting messages.
Difficulties in measuring effectiveness.
Relatively high waste factor.
Advantages of Personal Selling (Sales)
Ability to close sales.
Ability to hold the prospect’s attention.
Immediate feedback and two-way
communications.
Presentations can be tailored to the
prospect’s needs.
Ability to precisely target the prospect.
Ability to get immediate action.
Disadvantages of Personal Selling (Sales)
High cost per contact.
Inability to reach some customers as
effectively.
Advantages of Sales Promotions
Sales promotions have some of the
advantages of advertising and sales.
Ability to get quick feedback.
Ability to add excitement to what is being
offered by the destination.
Efficiency.
Disadvantages of Sales Promotions
Many sales promotions only provide short-
term benefits.
Ineffective in building long-term loyalty for
the destination.
Inability to be used in the long term without
other promotional mix elements.
Often misused by tourism and hospitality
organizations (e.g., coupons).
Advantages of Public Relations and Publicity
Relatively low cost.
Effective because not seen as a commercial
message.
Prestige and impressiveness of mass-media
coverage (e.g., feature articles).
Added excitement and dramatization.
Maintenance of a “public” presence.
Disadvantages of Public Relations and Publicity
Difficulties in arranging consistent coverage
of the destination.
Lack of control over what gets printed or
said.
The Communication Process
• Communications efforts should be viewed from
the perspective of managing customer
relationships over time.
• The communication process begins with assessing
the influence, have at different stages of buying
process.
• Effective communication requires knowledge of
how communication works.
The Communication Process
Sender Encoding Message Decoding Receiver
Media
Response
Feedback
AIDA and the Hierarchy of Effects
Purchase
Conviction
Preference
Liking
Knowledge
Awareness
Attention Interest Desire Action
AIDAS
• Attention - to attract the consumer towards your
product
Interest - to capture the interest of the consumer by
telling him about the advantages and disadvantages
of the product
Desire - to make the consumer desire and want the
product
Action - to lead the consumer towards the action of
purchasing the product
Satisfaction - to satisfy the consumer with your
product and leave no complaints
•
Hierarchy of Effects
• Awareness:
• If most of the target audience is unaware of the
object, the communicator’s task is to build
awareness, perhaps just name recognition, with
simple messages repeating the product name.
Thus, the brand name needs to be made focal to
get consumers to become aware. Magazines are
full of ads that will capture your attention, but
you’ll have trouble easily seeing the brand name.
• Knowledge:
• The target audience might have product
awareness but not know much more; hence this
stage involves creating brand knowledge. This is
where comprehension of the brand name and
what it stands for become important. What are
the brand’s specific appeals, its benefits? In what
way is it different than competitor’s brands? Who
is the target market? These are the types of
questions that must be answered if consumers are
to achieve the step of brand knowledge.
• Liking:
• If target members know the product, how do
they feel about it? If the audience looks
unfavorably towards the product to
communicator has to find out why. If the
unfavorable view is based on real problems, a
communication campaigns alone cannot do
the job. For product problem it is necessary
to first fix the problem and only then can you
communicate its renewed quality.
• Preference: The target audience might like the
product but not prefer it to others. In this case, the
communicator must try to build consumer
preference by promoting quality, value,
performance and other features. The
communicator can check the campaigns success by
measuring audience preference before and after
the campaign.
• Conviction: A target audience might prefer a
particular product but not develop a conviction
about buying it. The communicator’s job is to build
conviction among the target audience
• Purchase: Finally, some members of the target
audience might have conviction but not quite get
around to making the purchase. They may wait
for more information or plan to act later. The
communicator must need these consumers to
take the final step, perhaps by offering the
product at a low price, offering a premium, or
letting consumers tried out. This is where
consumers make a move to actually search out
information or purchase.
• Thus advertising is thought to work and follow
a certain sequence whereby the prospect is
moved through a series of stages in succession
from unawareness to the purchase of the
product.
• Advertising cannot induce immediate
behavioural response, rather a series of
mental effects must occur with the fulfillment
at each stage before progress to the next
stage is possible
Developing Effective
Communication
• 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
14- 31
Developing Effective
Communication
• Step 2: Determining Communication
Objectives
– Objectives may be set to move buyers
through the six readiness stages
Goals and Tasks of Promotion
Informing Reminding
Target
Audience
Persuading
Examples of Promotion Objectives
Objective: To Inform (Awareness)
To increase the top-of-mind awareness level for Peter Pan
peanut butter from 16 percent to 24 percent
Objective: To Persuade (Attitudinal)
To increase the percentage of parents who feel that Peter Pan
peanut butter is the best peanut butter for their children from
22 percent to 35 percent
Objective: To Remind
To remind consumers that Peter Pan peanut butter is the
creamiest peanut butter and is available at their nearest grocery
and convenience stores
Developing Effective
Communication
• Step 3:
Designing a Message
– AIDA framework guides
message design
– Message content
• Rational (Saffola, Nutralite)
• Emotional appeals: fear,
humor, guilt, shame, love(LIC)
• Moral appeals(Jaago Graahak Jago)
14- 35
Developing Effective
Communication
• Step 4: Choosing Media
– Personal vs. nonpersonal communication
channels
14- 36
Developing Effective
Communication
• Step 4: Choosing Media
– Personal communication channels
• Includes face-to-face, phone, mail, and
Internet chat communications
• Word-of-mouth influence is often critical
• Buzz marketing cultivates opinion leaders(Is a form
of viral marketing
– Nonpersonal communication channels
14- 37
• Includes media, and events
Developing Effective
Communication
• Source
– Highly credible
sources are more
persuasive
– A poor choice of
spokesperson can
tarnish a brand
14- 38
Setting the Total Promotion
Budget and Mix
Setting the Total Promotion Budget
Affordable budget method sets the budget at an
affordable level
• Ignores the effects of promotion on sales
Setting the Total Promotion
Budget and Mix
Setting the Total Promotion Budget
Percentage-of-sales method sets the budget at a
certain percentage of current or forecasted sales or
unit sales price
• Easy to use and helps management think about the
relationship between promotion, selling price, and
profit per unit
• Wrongly views sales as the cause rather than the
result of promotion
Setting the Total Promotion
Budget and Mix
Setting the Total Promotion Budget
Competitive-parity method sets the budget to match
competitor outlays
• Represents industry standards
• Avoids promotion wars
Setting the Total Promotion
Budget and Mix
Setting the Total Promotion Budget
Objective-and-task method sets the budget based on
what the firm wants to accomplish with promotion
and includes:
• Defining promotion objectives
• Determining tasks to achieve the objectives
• Estimating costs
Setting the Promotional Budget and
Mix
• Setting the Overall Promotion Mix
– Determined by the nature of each promotional tool
and the selected promotion mix strategy
Revlon
emphasizes
advertising
while Avon
emphasizes
personal
selling
14- 43
Push vs. Pull
Promotion Strategy
Measure Results & Corrective
Actions
• Mgt. wants to know the outcome in terms of
revenue. Feedback measurement is done.
• Reach & Frequency.
• Recall & Recognition scores.
• Behavior changes.
Common Advertising Appeals
Profit
Profit Save
Savemoney,
money,keep
keepfrom
fromlosing
losingmoney
money
Health
Health Body-conscious,
Body-conscious,healthy
healthy
Love
Loveor
orRomance
Romance Sell
Sellcosmetics
cosmeticsand
andperfumes
perfumes
Social
Socialembarrassment,
embarrassment,growing
growingold,
old,losing
losing
Fear
Fear health, power
health, power
Admiration
Admiration Celebrity
Celebrityendorsement
endorsementeffective
effective
Convenience
Convenience Fast-food
Fast-foodand
andmicrowave
microwaveproducts
products
Fun
Funand
andPleasure
Pleasure Vacations,
Vacations,beer,
beer,amusement
amusementparks
parks
Vanity(Pride
Vanity(Prideand
andEgotism
Expensive,
Expensive,conspicuous
Egotism conspicuousitems
items
Methods Used to Evaluate Advertising Campaigns
Pretests
Examples:
• Consumer jury tests
• Portfolio or unfinished rough tests
• Physiological tests
Post-tests
Examples:
• Recognition tests
• Recall tests
• Attitude measures
• Audience size measurement
