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Communicating Customer Value: Integrated Marketing Communications Strategy

Chapter 14 - slide 1

The Promotion Mix


The promotion mix is the specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 2

The Promotion Mix


Major Promotion Tools

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 3

The Promotion Mix


Major Promotion Tools Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor Broadcast Print Internet Outdoor

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Chapter 14 - slide 4

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

20-5 Chapter 14 - slide 5

The Promotion Mix


Major Promotion Tools Sales promotion is the short-term incentives to encourage the purchase or sale of a product or service Discounts Coupons Displays Demonstrations

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Chapter 14 - slide 6

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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The Promotion Mix


Major Promotion Tools Public relations involves building good relations with the companys various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Press releases Sponsorships Special events Web pages
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Chapter 14 - slide 8

Sanjay Dutt to promote eggs and chicken, during Egg and Chicken Festival on Friday.

This campaign was used to boost the poultry business that was experiencing a low due to the bird flu scare. The ad also feature Fardeen Khan. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

20-9 Chapter 14 - slide 9

The Promotion Mix


Major Promotion Tools

Personal selling is the personal presentation by the firms sales force for the purpose of making sales and building customer relationships Sales presentations Trade shows Incentive programs
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 10

The Promotion Mix


Major Promotion Tools Direct marketing involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationshipsthrough the use of direct mail, telephone, direct-response television, e-mail, and the Internet to communicate directly with specific consumers Catalog Telemarketing Kiosks
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Chapter 14 - slide 11

Integrated Marketing Communications


The New Marketing Communications Landscape

Consumers are better informed More communication Less mass marketing Changing communications technology

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Chapter 14 - slide 12

Integrated Marketing Communications


The Need for Integrated Marketing Communications Integrated marketing communications is the integration by the company of its communication channels to deliver a clear, consistent, and compelling message about the organization and its brands

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 13

Integrated Marketing Communications


Company Carefully Integrates and Coordinates Its Many Communication Channels to Deliver a Clear, Consistent, Compelling Message.

Packaging

Advertising

Event Marketing

Message

Personal Selling

Direct Marketing
Public Relations
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Sales Promotion

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Pepsodent Bhoot Police


Problem : Maturing sales Insight : Research Indicates while mothers want their kids to brush teeth regularly at Night , Kids avoid Objective : Promote the habit of brushing Media : TV commercial introduced Bhoot Police (pepsodent) That fight (Bhoot) germs , another commercial Mothers prying to god to get their children to brush teeth and Pepsodent Bhoot police answer the Mothers prayers Groups of parents, children and even dabbawalas were invited to sing the jingle in a live chorus on popular radio stations in a plea to children to brush heir teeth at Night. A contest was held for parents to pen their own lyrics to the aarti tune and the ones with the best or most funny got the chance to sing it on air , Children were also invited The contest was held for kids to become Bhoot Police A school contact program reached 1,500 schools and got a pledge signed by children and verified by parents Interactive website was launched Results 12 lakh children were signed , campaign won Gold award at the best Media Innovation (radio category ) , 2006hhj

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Chapter 14 - slide 15

Titan
Titan conveys the image of a leading manufacturer of premium watches Finely engineered and carved watches , Titans packaging with embossing and engraving , personalized story cards, Exclusive service , after sales service network , Titans advertising and Music , Celebrity
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Chapter 14 - slide 16

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20-17 Chapter 14 - slide 17

Kingfisher
Indias fastest growing carrier launches in May , 2005 The good Time product Fulfills its promise thru excellence in comfort , food , entertainment , in-flight service , and customer care , Brand new air busses , spacious legroom , lavish sleeperette seats for added comfort , well groomed airhostesses , personal entertainment system Price : Unlike the low cost carriers , Kingfisher offers full service at value prices , maintains the aspirational status Distribution : Adding new destinations , doorstep delivery at guests request Promotion : Communication projected a High-spirited and youthful image of the Kingfisher Airline Brand Sales promotion : Regular Flyers programs , corporate Flyers Tie-in-promotions : Associate with like minded Leading International Brands Perfumes and cosmetics like Pierre Cardin , Paul Smith and Kenzo (with flight coupons 10,000/-), Co-branded credit card ICICI , Tata Tetley , Tabasco , Papist , Frito-Lay

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Chapter 14 - slide 18

Saffola Gold
Saffola Gold a premium edible oil , priced 25% higher than the closest competitor , positioned as healthy and safe for the heart . Problem : Weakening of Brand equity Objective : To strengthen the heart care image Media: An Editorial Page 3 of Bombay Times on World Health Day where celebrities pledged they would take care of their heart Featuring pledge after National Anthem on Theatres Using Dabbawalas supported by Safolas to pass the message to about 2,00,000 corporates thru message on T-shirts Results : 34% brand association 58% increase in Sales even with premium pricing Nomination in best media Strategy

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Chapter 14 - slide 19

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Chapter 14 - slide 20

A View of the Communication Process


The Communication Process

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Chapter 14 - slide 21

Steps in Developing Effective Marketing Communication


Identify the target audience Determine the communication objectives Design the message Choose the media Select the message source
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Chapter 14 - slide 22

Steps in Developing Effective Communication


Identifying the Target market
What will be said How it will be said

When it will be said

Where it will be said

Who will say it


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Chapter 14 - slide 23

Steps in Developing Effective Marketing Communication


Determining the Communication Objectives Marketers seek a purchase response that results from a consumer decision-making process that includes the stages of buyer readiness

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Chapter 14 - slide 24

Steps in Developing Effective Marketing Communication


Designing a Message

AIDA Model Get Attention Hold Interest Arouse Desire Obtain Action
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Chapter 14 - slide 25

Steps in Developing Effective Marketing Communication


Designing a Message Message content is an appeal or theme that will produce the desired response Rational appeal Emotional appeal Moral appeal Message Format

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 26

Steps in Developing Effective Marketing Communication


Designing a Message

Rational appeal relates to the audiences self-interest Emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 27

Steps in Developing Effective Marketing Communication


Designing a Message

Moral appeal is directed at the audiences sense of right and proper

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Chapter 14 - slide 28

Steps in Developing Effective Marketing Communication


Choosing Media

Personal communication involves two or more people communicating directly with each other Face to face Phone Mail E-mail Internet chat

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Chapter 14 - slide 29

Steps in Developing Effective Marketing Communication


Choosing Media Personal communication is effective because it allows personal addressing and feedback Control of personal communication Company Independent experts Word of mouth
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Chapter 14 - slide 30

Steps in Developing Effective Marketing Communication


Choosing Media Personal Communication Opinion leaders are people within a reference group who, because of their special skills, knowledge, personality, or other characteristics; exerts social influence on others Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities
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Chapter 14 - slide 31

Steps in Developing Effective Marketing Communication


Non-Personal Communication Channels

Non-personal communication is media that carry messages without personal contact or feedback, including major media, atmospheres, and events that affect the buyer directly

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 32

Steps in Developing Effective Marketing Communication


Non-Personal Communication Channels

Major media include print, broadcast, display, and online media Atmospheres are designed environments that create or reinforce the buyers leanings toward buying a product

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 33

Steps in Developing Effective Marketing Communication


Nonpersonal Communication Channels

Events are staged occurrences that communicate messages to target audiences Press conferences Grand openings Exhibits Public tours
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 34

Steps in Developing Effective Marketing Communication


Selecting the Message Source

The messages impact on the target audience is affected by how the audience views the communicator Celebrities
Athletes Entertainers

Professionals
Health care providers
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Chapter 14 - slide 35

Steps in Developing Effective Marketing Communication


Collecting Feedback

Involves the communicator understanding the effect on the target audience by measuring behavior resulting from the behavior

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Chapter 14 - slide 36

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

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 37

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
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 38

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

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 39

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

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 40

Setting the Total Promotion Budget and Mix


Shaping the Overall Promotion Mix The Nature of Each Promotion Tool

Advertising reaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 41

Setting the Total Promotion Budget and Mix


Shaping the Overall Promotion Mix The Nature of Each Promotion Tool

Personal selling is the most effective method at certain stages of the buying process, particularly in building buyers preferences, convictions, actions, and developing customer relationships

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 42

Setting the Total Promotion Budget and Mix


Shaping the Overall Promotion Mix The Nature of Each Promotion Tool

Sales promotion includes coupons, contests, cents-off deals, and premiums that attract consumer attention and offer strong incentives to purchase, and can be used to dramatize product offers and to boost sagging sales
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 43

Setting the Total Promotion Budget and Mix


Shaping the Overall Promotion Mix The Nature of Each Promotion Tool

Public relations is a very believable form of promotion that includes news stories, features, sponsorships, and events Direct marketing is a non-public, immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telemarketing, and online marketing
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 44

Setting the Total Promotion Budget and Mix


Promotion Mix Strategies

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 45

Setting the Total Promotion Budget and Mix


Integrating the Promotion Mix Checklist
1. Identify customer touch points

2. Analyze trendsinternal and external


3. Audit the pockets of communication spending throughout the organization 4. Team up in communications planning

5. Create compatible themes, tones, and quality across all communications media
6. Create performance measures that are shared by all communications elements 7. Appoint a director responsible for the companys persuasive communications efforts
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 46

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall


Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 48

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