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