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ankurchandel@ymail. com Marketing Communication Process & Promotion Mix Powered By Ankur Chandel ([email protected]) Jyotsna varun ([email protected])
| Date post: | 12-Nov-2014 |
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Marketing Communication Process&
Promotion Mix
Powered By
Ankur Chandel ([email protected])Jyotsna varun ([email protected])
[email protected] of Marketing
Communication
‡ Not only informs, but is also used to differentiate the sellers’ Products/Services from its competitors.
‡ May also be effective in affecting the price elasticity of demand (non-price competition).
‡ The marketing communications strategy of a firm must be coordinated and linked with concepts such as target segments, positioning, differentiation, and branding.
‡ To influence feelings, beliefs, or behaviour of the target customers.
[email protected] of Marketing
CommunicationInforming
PersuadingReminding
Marketing Communications are the means by which a firm attempts to inform, persuade, and remind consumer – directly or indirectly – about the products and brands they sell.
Marketing Communication ProcessSource Encoding Message Channel Decodin
g Receiver
Company Encoding Marketing Message Media Decoding Company’s
Publics
Noise
‡ Advertising‡ Personal Selling‡ Public Relations
‡ Sales Promotion‡ Direct Marketing
‡ Prospects‡ Customers‡ Employees
‡ Stockholders‡ Community‡ Government
COMMUNICATION TO BUILD AND MAINTAIN RELATIONSHIPS BY INFORMING AND PERSUADING ONE OR MORE AUDIENCES.
Promotion
Role of PromotionIt is a Communication Process in Marketing.
Overall role of promotion is to stimulate demand by
ΐ Building and enhancing customer relationships.
ΐ Focusing customers on information about company s’ activities and products.
ΐ Used to create a favorable predisposition toward:
- Brand of product - Service- Idea - Person
Possible Objectives of Promotion
ΐ Create Awareness
ΐ Stimulate Demand
ΐ Encourage Product Trial
ΐ Identify Prospects
ΐ Retain Loyal Customers
ΐ Facilitate Reseller Support
ΐ Combat Competition
ΐ Reduce Sales Fluctuation
[email protected] Promotion Mix
Marketing Communication Mix‡ Blend of Communications Tools and Activities Used by a Firm.
‡ Carries out the Promotion Process
‡ Communicates Directly with Target Markets
‡ Promotional mix incorporates the combination and types of non-personal and personal communication the organization employs during a specified period.
Non-personal communication
Advertising
Sales promotion
Public relations
Direct marketing
Personal communication
Personal selling
Promotion: Process
Promotion Mix: Tools
ROLE OF PROMOTION IN MARKETING STRATEGY
‡ Role of Promotion in Marketing Strategy Affects 3 Key Aspects of Decision Making with Respect to Brandsΐ Creating the Marketing Mixΐ Achieving Effective Market Segmentation, Product
Differentiation, and Positioningΐ Enhancing Revenues and Profits
Promotion Mix
[email protected] Promotion MixAdvertising
Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.The major media types for advertising are:Newspapers, Television, Direct mail, Radio, Magazines, Internet, Outdoor(billboards, blimps, etc.), Yellow pages, Newsletters, Brochures, and TelephoneThe traditional conceptual model for creating any advertising or marketing communications message is the AIDA Model: get Attention, hold Interest, arouse Desire, and then obtain Action.
Action
Desire
Interest
Attention
Reaches large, geographically dispersed audiences, often with high frequency;Low cost per exposure, though overall costs are high;Consumers perceive advertised goods as more legitimate;Dramatizes company/brand;Builds brand image;May stimulate short-term sales;Impersonal, one-way communication;
Strengths Weaknesses
Efficient for reaching many buyers simultaneously
Reaches many people who are not potential buyers
Effective way to create image of the brand
Ads are subject to criticism
Flexible Exposure time is short
Variety of media to choose from People tend to screen out advertisements
Total cost is high
[email protected] Promotion MixPersonal Selling
Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.
Most effective tool for building buyers’ preferences, convictions, and actions; Personal interaction allows for feedback and adjustments;Relationship-oriented;Buyers are more attentive;Sales force represents a long-term commitment;Most expensive of the promotional tools
Strengths Weaknesses
Message can be targeted to specific individuals weaknesses
Cost per contact is high
Salespeople can be persuasive and influential
Salespeople may be hard to recruit and motivate
Two-way communication allows for questions and other feedback
Presentation skills may vary between salespeople
[email protected] Promotion MixSales Promotion
Short-term incentives to encourage the purchase or sale of a product or service.
May be targeted at the trade or ultimate consumer;Makes use of a variety of formats: premiums, coupons, contests, etc.;Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales;Stimulates quick response;Short-lived;Not effective at building long-term brand preferences
Strengths Weaknesses
Supports short-term price reductions designed to stimulate debate
Risk inducing brand-loyal customers to stock up while not inducing others
Variety of sales promotion tools available
Impact may be limited to short-term
Effective in changing short-term behavior
Price-related sales promotion may hurt brand image
Easy link to other communications Easy for competitors to copy
[email protected] Promotion MixPublic Relations
Highly credible;Very believable;Many forms: news stories, news features, events and sponsorships, etc.;Reaches many prospects missed via other forms of promotion;Dramatizes company or product;Often the most under used element in the promotional mix;Relatively inexpensive (certainly not 'free' as many people think--there are costs involved)
Building good relationships with the company’s various publics by obtaining favorable publicity, building up a good "corporate image", and handling or heading off unfavorable rumors, stories, and events.
Strengths Weaknesses
Total cost may be low
Media-generated stories seen as more credible than marketer-sponsored messages
Media may not cooperate
Heavy competition for media attention
Marketer has little control over the message
[email protected] Promotion MixDirect Marketing
Direct communications with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships.
Many forms: Telephone marketing, direct mail, online marketing, etc.;Four distinctive characteristics: Non-public, Immediate, Customized, Interactive;Well-suited to highly-targeted marketing efforts
Strengths Weaknesses
Message can be customized and prepared quickly
Can facilitate a relationship with customer
Often low customer response
Managing and maintaining accurate database can be costly
End Of Presentation
Marketing Communication Process&
Promotion Mix
