Integrated Marketing Communication Strategy

Chapter: 14Lec 9c

Setting the Total Promotion Budget and Mix

• Affordable Method Setting the promotion budget at the

level management thinks the company can afford

-small business use this method• Percentage-of-sales method Setting the promotion budget at a

certain percentage of current or forecasted sales or a percentage of the unit sales price

• Competitive Parity Method Setting the promotion budget to

match competitors’ outlays

Setting the Total Promotion Budget and Mix

Competitive- Parity Method

• Objective and Task Method Developing the promotion budget by1) Defining specific objectives2) Determining the tasks that must be

performed to achieve these objectives3) Estimating the costs of performing

these tasksThe sum of these costs is the proposed

promotion budget

Setting the Total Promotion Budget and Mix

Shaping the Overall Promotion Mix

Advertising• Pros- Reach Masses- Can repeat message- Advertising products as more

legitimate- Expressive

Advertising• Cons- Impersonal- One way communication- Costly

Shaping the Overall Promotion Mix

• Personal SellingPros- Persuasive- Friendly relationship can be built- Good salesperson can make the other

person listen to himCons- Long term commitment- Very expensive

Shaping the Overall Promotion Mix

Sales Promotion- Offers strong incentives- Quick Response- Effects are short-livedPublic Relations- Believable - Reliable

Shaping the Overall Promotion Mix

Direct Marketing• Less public• Immediate and customized• Interactive

Shaping the Overall Promotion Mix

Promotion Mix Strategies

• Push Strategy A promotion strategy that calls for

using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers

• Pull Strategy A promotion strategy that calls for

spending a lot on advertising and consumer promotion to include final consumers to buy the product, creating a demand vacuum that “pulls” the product, through the channel

Promotion Mix Strategies

Push Versus Pull Promotion Strategy

Producer Retailers and wholesalers Consumers

ProducerRetailers and wholesalers Consumers

Socially Responsible Communication