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Communication Strategy andCommunication Strategy andPromotion decisionPromotion decision

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12-2

COMMUNICATION PROCESS

Sender Encoding

Feedback Response

Noise

MessageMedia Decoding

Receiver

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12-3

STEPS IN DEVELOPING

EFFECTIVE COMMUNICATIONIdentify Target Audience

Determine Objective

Design Message

Select Channel

Establish Budget

Decide On Media Mix

Measure Result

Manage IntegratedMarketing

Communication

Awareness

Knowledge

Purchase

Personal

Non-Personal

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12-4

Marketing Communications Mix

A dvertisingA dvertising Any pa i form of nonpe rsonal p resentat ionAny pa i form of nonpe rsonal p resentat ionand p romot ion of idea s, good s, or ser ices byand p romot ion of idea s, good s, or ser ices byan ident if ied spon sor.an ident if ied spon sor.

Sales PromotionSales Promotion

Sho rt Sho rt--te rm incent i es to encou rage thete rm incent i es to encou rage thepu rcha se o r sale of a p roduct o r ser ice .pu rcha se o r sale of a p roduct o r ser ice .

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12-5

Marketing Communications Mix

Public RelationsPublic Relations Building good relat ion s with the co mpany s Building good relat ion s with the co mpany s

variou s publ ics by obta ining favo rablevariou s publ ics by obta ining favo rablepubl icity, bu ilding up a good co rpo rate image , publ icity, bu ilding up a good co rpo rate image , and handl ing o r head ing off unfavo rableand handl ing o r head ing off unfavo rablerumors, sto ries, and event s.rumors, sto ries, and event s.

Personal SellingPersonal Selling Pe rsonal p resentat ion by the f irm s sale s forcePe rsonal p resentat ion by the f irm s sale s forcefor the pu rpose of mak ing sale s and bu ildingfor the pu rpose of mak ing sale s and bu ildingcustomer relat ion ships.customer relat ion ships.

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12-6

Marketing Communication Mix

D irect MarketingD irect Marketing Direct connect ion s with ca refully ta rgetedDirect connect ion s with ca refully ta rgetedind ividual con sumers to both obta in anind ividual con sumers to both obta in animmed iate respon se and cult ivate la st ingimmed iate respon se and cult ivate la st ingcustomer relat ion shipscustomer relat ion ships the u se of telephone , the u se of telephone , ma il, fax , ema il, fax , e--ma il, the Inte rnet , and othe r tool s ma il, the Inte rnet , and othe r tool s to co mm un icate d irectly w ith spec if icto co mm un icate d irectly w ith spec if iccon sumers.con sumers.

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12-7

Integrated Marketing Communication

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12-8

Advertising

Can reach mass es of geog raph icallyCan reach mass es of geog raph icallydispe rsed buye rs.dispe rsed buye rs.Can repeat a mess age many t imes.Can repeat a mess age many t imes.Is impe rsonal , oneIs impe rsonal , one--way co mm un icat ion .way co mm un icat ion .Can be ve ry co stly fo r some med ia type s.Can be ve ry co stly fo r some med ia type s.

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12-9

Personal Selling

Involve s pe rsonal inte ract ion between twoInvolve s pe rsonal inte ract ion between twoor more people .or more people .Allows relat ion ship bu ilding .Allows relat ion ship bu ilding .Most expen sive p romot ion tool .Most expen sive p romot ion tool .

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12-10

Sales Promotion

Wide a ss ort ment of tool s.Wide a ss ort ment of tool s.Att ract s con sumer attent ion .Att ract s con sumer attent ion .Offe rs st rong incent ives to buy .Offe rs st rong incent ives to buy .Inv ite s and rewa rds qu ick con sumer Inv ite s and rewa rds qu ick con sumer respon se .respon se .Effect s are sho rt Effect s are sho rt--lived .lived .

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12-11

Public Relations

Ve ry bel ievable .Very bel ievable .Reache s people who avo id sale speopleReache s people who avo id sale speopleand ad s.and ad s.Can d ramat ize a co mpany o r product .Can d ramat ize a co mpany o r product .Tend s to be u sed a s an afte rthought .Tend s to be u sed a s an afte rthought .Planned u se can be effect ive andPlanned u se can be effect ive andecono mical .econo mical .

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12-12

Direct Marketing

Many fo rms that sha re fou r cha racte rist ics:Many fo rms that sha re fou r cha racte rist ics: Nonpubl icNonpubl ic Imm ed iateImm ed iate CustomizedCustomized Inte ract iveInte ract ive

Well suited to h ighly ta rgeted market ing .Well suited to h ighly ta rgeted market ing .

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12-13

Push vs. Pull Promotion Strategy

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12-14

Advertising

Advert ising ha s been u sed fo r centu ries.Advert ising ha s been u sed fo r centu ries.U.S. adve rt isers spend more than $237 b illionU.S. adve rt isers spend more than $237 b illion

each yea r; worldwide spend ing app roache s $470each yea r; worldwide spend ing app roache s $470billion .billion .Advert ising is used by :Advert ising is used by :

Busine ss f irmsBusine ss f irms

Nonp rof it o rgan izat ion sNonp rof it o rgan izat ion s Profe ssional sProfe ssional s Soc ial agenc iesSoc ial agenc ies Gove rnment Gove rnment

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12-15

Major Decisions in Advertising

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12-16

Setting Advertising Objectives

An adve rt ising object ive is a spec if icAn adve rt ising object ive is a spec if iccomm un icat ion ta sk to be acco mplishedcomm un icat ion ta sk to be acco mplishedwith a spec if ic ta rget aud ience du ring awith a spec if ic ta rget aud ience du ring a

spec if ic pe riod of t ime .spec if ic pe riod of t ime .Classif ied by pu rpo se :Classif ied by pu rpo se :

Info rmInfo rm

Pe rsuadePe rsuade Compa reCompa re RemindRemind

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12-17

Setting the Advertising Budget

Aff ordableBased on What the Co mpany Th inks it Can Affo rd

Objective-and-TaskSet Object ives, Dete rmine Ta sks to Ach ieve Object ives,

Sum of Ta sk Cost s Equal s Budget

Percentage-o f -Sales

Based on a Pe rcentage of Cu rrent o r Foreca sted Sale s

Competitive-Parity

Set Budget to Match Co mpet ito rs

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12-18

Developing Advertising Strategy

Consis t s of two majo r ele ment s:Consis t s of two majo r ele ment s:

Creat ing adve rt isingCreat ing adve rt ising mess age smess age s

Select ing adve rt isingSelect ing adve rt ising med iamed ia

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12-19

The Message Strategy

Ident ify Customer Benef it s

Develop Co mpelling C reat ive Concept The Big Idea

Advert ising Appeal s Should BeMean ingful , Believable , & Dist inct ive

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12-20

Message Execution

Slice of L ifeSlice of L ife

LifestyleLifestyle

Fanta syFanta sy

Mood o r ImageMood o r Image

MusicalMusical

Personal ity Sy mbolPersonal ity Sy mbol

Techn ical Expe rt iseTechn ical Expe rt ise

Scient if ic EvidenceScient if ic Evidence

Te st imon ial Ev idenceor Endo rsement

Te st imon ial Ev idenceor Endo rsement

TypicalA pproaches

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12-21

Message Execution

Choo se a toneChoo se a toneUse memorable , attent ionUse memorable , attent ion--gett ing wo rdsgett ing wo rdsChoo se co rrect fo rm at ele ment sChoo se co rrect fo rm at ele ment s

Illust rat ionIllust rat ion Headl ineHeadl ine CopyCopy

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12-22

Selecting Advertising Media

ReachReach Pe rcentage of people expo sed to adPe rcentage of people expo sed to ad

FrequencyFrequency Numbe r of t imes a pe rson is expo sed to adNumbe r of t imes a pe rson is expo sed to ad

Media ImpactMedia Impact The qual itat ive value of a mess age expo sureThe qual itat ive value of a mess age expo sureth rough a g iven med iumth rough a g iven med ium

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12-24

Deciding on Media Timing

Must dec ide how to schedule theMust dec ide how to schedule theadve rt ising ove r the cou rse of a yea radve rt ising ove r the cou rse of a yea r

Follow sea sonal patte rnFollow sea sonal patte rn Oppo se sea sonal patte rnOppo se sea sonal patte rn Sa me cove rage all yea rSame cove rage all yea r

Choo se the patte rn of the ad sChoo se the patte rn of the ad s Cont inu ityCont inu ity PulsingPulsing

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12-25

Evaluating Advertising

Measure the co mm un icat ion effect s of an ad .Copy Te st ing

Measure the sale s effect s of an ad .Is the ad increa sing sale s?

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Sales Promotion

Sale s promot ion con sis t s of sho rt Sale s promot ion con sis t s of sho rt--te rm te rm incent ives to encou rage the pu rcha se o r incent ives to encou rage the pu rcha se o r sale s of a p roduct o r service .sale s of a p roduct o r service .

The idea beh ind sale s promot ion is toThe idea beh ind sale s promot ion is togene rate imm ed iate sale s.gene rate imm ed iate sale s.

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12-27

Sales Promotion

Today s foodmarkete rs areusing more andmore pu shpromot ion s, includ ingcon sumer pricepromot ion s.

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12-28

Rapid Growth of Sales Promotion

Sale s promot ion can take the fo rm of Sale s promot ion can take the fo rm of con sumer, bu sine ss, t rade , or sale s forcecon sumer, bu sine ss, t rade , or sale s forcepromot ion s.promot ion s.

Rap id g rowth in the indu st ry ha s beenRap id g rowth in the indu st ry ha s beenach ieved becau se :ach ieved becau se :

Product manage rs are fac ing more p ress ureProduct manage rs are fac ing more p ress ureto increa se the ir cu rrent sale sto increa se the ir cu rrent sale s Compan ies face more co mpet it ionCompan ies face more co mpet it ion Advert ising eff iciency ha s decl inedAdvert ising eff iciency ha s decl ined Consumers have beco me more deal o rientedConsumers have beco me more deal o riented

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Pat ronage Rewa rdsPat ronage Rewa rds

Point-of-Pu rcha sePromot ion s

Point-of-Pu rcha sePromot ion s

Conte st Conte st

Sweep stake sSweep stake s

GamesGames

Cash o r othe r awa rd offe red fo r regula r use of a p roduct o r service

Cash o r othe r awa rd offe red fo r regula r use of a p roduct o r service

Display s or de mon st rat ion s at the po int of pu rcha se o r sale

Display s or de mon st rat ion s at the po int of pu rcha se o r sale

Consumers sub mit an ent ry to bejudged by a panel

Consumers sub mit an ent ry to bejudged by a panel

Consumers sub mit the ir na mes for a

draw ing

Consumers sub mit the ir na mes for a

draw ing

Consumers rece ive someth ing eacht ime they buy wh ich may help the m

win a p rize

Consumers rece ive someth ing eacht ime they buy wh ich may help the m

win a p rize

Consumer Sales Promotion Tools

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12-32

Trade Promotion

Persuade resellers toca rry a b rand

Give a b rand shelf space

Promote b rand in

adve rt ising

Push b rand tocustomers

Discount s

Allowance s

Free Good s

Push Money

Spec ialty Adve rt isingIte ms

Objectives Tools

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12-33

Business Promotion

Gene rate bu sine ss lead s

St imulate pu rcha ses

Rewa rd cu stomers

Mot ivate sale speople

Convent ion s

Trade show s

Sale s conte st s

Objectives Tools

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12-34

Trade Show

More than 4 ,300 t rade show s take place eve ry yea r, draw ing a s manyas 85 million people .

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Decide on the S ize of the Incent iveDecide on the S ize of the Incent ive

Set Cond it ion s for Pa rt icipat ionSet Cond it ion s for Pa rt icipat ion

Evaluate the P rog ramEvaluate the P rog ram

Decide How to P romote andDist ribute the P romot ion P rog ram

Decide How to P romote andDist ribute the P romot ion P rog ram

Decide on the Length of the P rog ramDecide on the Length of the P rog ram

Developing the Sales Promotion Program

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Public Relations

Publ ic relat ion s involve s bu ilding goodPubl ic relat ion s involve s bu ilding goodrelat ion s with the co mpany s variou s relat ion s with the co mpany s variou s publ ics by obta ining favo rable publ icity , publ ics by obta ining favo rable publ icity , bu ilding up a good co rpo rate image , andbu ilding up a good co rpo rate image , andhandl ing o r head ing off unfavo rablehandl ing o r head ing off unfavo rable

rumors, sto ries, and event s.rumors, sto ries, and event s.

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Public Relations

Publ ic relat ion s is used topromote p roduct s, people , place s, idea s, act ivit ies, organ izat ion s, and evennat ion s. New Yo rk Citytu rned it s image a roundwhen it s I Love NewYork! campa ign tookroot , bring ing million s more tou rist s to the c ity.

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Public Relations Functions

Press relat ion s or Press relat ion s or press agencypress agency

Product publ icityProduct publ icity

Publ ic affa irsPubl ic affa irs

Lobby ingLobby ing

Inve sto r relat ion sInve sto r relat ion s

Develop ment Develop ment

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Public Relations Tools

NewsNewsSpeeche sSpeeche sSpec ial event sSpec ial event sBuzz market ingBuzz market ingMobile market ingMobile market ingWritten mate rialsWritten mate rials

AudiovisualAudiovisualmate rialsmate rialsCorpo rate ident ityCorpo rate ident itymate rialsmate rialsPubl ic servicePubl ic serviceact ivit iesact ivit iesCompany Web siteCompany Web site