The 4th P:
Promotion
14
Where are we now?
Create value for customers and build Capture value from
customer relationships customers in return
1. Understand the 2. Design a 3. Construct a 4. Build profitable 5. Capture value
marketplace and customer-driven marketing relationships and from customers to
customer needs & marketing program create create profits and
wants strategy that delivers customer satisf. customer equity
superior value
Research consumers Select customers to Product (service)
and the marketplace serve: market design: build strong
segmentation and brands
targeting
Manage marketing Pricing:
information and Decide on a value creating real value
customer data proposition:
differentiation and
positioning Place (Distribution):
manage supply chain
Promotion: Chapter 14 14 - 2
communicate the
value proposition
Summary of the 4 Ps
(also called the marketing mix)
• The set of 4
tactical marketing
tools firms use to
implement STP
strategy decisions
& sell product/
service to target
market
Digital
• For example…
14 - 3
Summary of the S.A.V.E. framework
• The set of 4
tactical marketing
tools firms use to
implement STP
strategy decisions
& sell product/
service to target
market
• For example…
14 - 4
Promotion
Promotion is…
the activities that communicate the
merits of the product and persuade
target customers to buy it
14 - 5
Marketing Communications
1. Which communication tools exist?
• The Promotion Mix
2. How should communication tools be used?
• Integrated Marketing Communications
3. Communication Campaigns
• 5 steps of Successful Communication
14 - 6
What communication tools exist?
The Promotion Mix is the firm's combination of:
• Advertising • Reaches Masses
• Broadcast, Print, Internet, Outdoor
• Public relations • Believable
• Press releases, Sponsorships, Websites, Special events
• Sales promotion • Grabs attention
• Discounts, Coupons, Displays, Demonstrations
• Personal selling • Builds relationships
• Retail staff, Sales presentations, Trade shows
14 - 7
Marketing communications are
evolving rapidly
• Marketers moving from broadcasting to narrowcasting
• As markets have fragmented & communication technology has
improved, mass marketing has shifted to segmented/niche/micro-
marketing
• Today’s media landscape is more diverse & specialized,
e.g.,
• online videos & ads; mobile catalogs & coupons; brand community
websites; banners, email, text, social networks, blogs, live-streams
• tv & movie product placement, advertorials, app algorithms
• specialty cable tv, radio, magazines & newspapers
14 - 8
Marketing communications must
be “integrated”
• Marketing content (e.g., advertising, PR, social media)
often handled by separate departments/agencies
• Integrated Marketing Communications
• Goal: convey a clear, consistent, customer-focused
promotional message
• Coordinate all touch points, e.g.
• Point-of-purchase displays
• Price promotions
• Print advertising
• Public relations
14 - 9
• Web, mobile, social media
Gillette
• Line extensions: persuading upgrade
• Firm wants consumers to trade up to new, more expensive
product line while the firm phases out old product line
• Note: a situation where ‘cannibalization’ is the goal
• Gillette migrated 70% of consumers from “Mach 3”
to “Fusion” line. How?
• Gillette’s market research, STP & promotion campaign:
https://youtu.be/zObGb8eX3vw
• Integrate all touch-points: print, point-of-purchase,
digital, tv advertising... 14 - 10
The Hunger Games:
Catching Fire
• Innovative Promotion in 2014
• Excellent example of “integration”
across touch-points - particularly,
digital platforms
• With digital marketing now
skyrocketing, many advertisers
are moving to “digital-first”
approach to brand building
14 - 11
11
Marketing Communications
1. Which communication tools exist?
• The Promotion Mix
2. Why must communications be “integrated”
across all B-to-C touch-points?
• Integrated Marketing Communications
3. Communication Campaigns
• 5 steps of Successful Communication 14 - 12
Communication campaign
After defining target audience, marketers
decide:
• What will be said,
• How it will be said,
• When it will be said,
• Where it will be said,
• Who will say it
5 steps (“Ms”) for a successful communication
campaign…
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1. Campaign mission
14 - 14
2. Campaign message
2. Design message (Message)
• Content: rational/emotional/moral
• Structure (conclusion; argument order; strengths &
weaknesses)
• Format (e.g., headline and colors in an ad)
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3. Campaign media
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4. Campaign money
5. Campaign measurement
4. Decide budget (Money)
• How to decide: Affordability? Competitors?...
5. Evaluate effectiveness (Measurement)
• A.k.a. “collecting feedback”
• E.g., market research (message awareness,
message encoding, purchase, satisfaction)
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Mission?
1. Awareness
(knowledge)
2. Appeal (preference)
3. Act (Purchase)
Message? Content:
1. Rational
2. Emotional
3. Moral
Media?
1. Personal
2. Nonpersonal 14 - 18
14 - 19
14 - 20
Course Info
• Monday 15 April: “Hunger Games” case write-up
due 11:00am (see syllabus for instructions)
• Case & questions available on Canvas
• Video: The Experience Economy, Joseph Pine
https://www.youtube.com/watch?v=TOjUxGqh7aA
• Tuesday 16 April: Case Discussion
• Wednesday 17 April: Teams must notify us via
Canvas (1) chosen product/service, (2)
presentation conflict dates, if any
• Thursday 18 April: Marketing Plans Teamwork
session 14 - 21
Ch 14 Review Questions
1. Discuss the process and advantages of
integrated marketing communications in
communicating consumer value
2. Define the five promotion tools and discuss
factors that must be considered in shaping the
overall promotion
3. Outline the steps in developing effective
marketing communications
4. Explain the factors that affect design of the
promotion mix
14 - 22
