mmm6

Managing The Marketing MixManaging The Marketing Mix

Lecture 6:Lecture 6:

Promotion and Marketing Communications (2)Promotion and Marketing Communications (2)

Dr. Martin J. LiuDr. Martin J. LiuLecturer in MarketingLecturer in Marketing

In the Previous LectureIn the Previous Lecture……

OverviewOverview

Promotional Mix

Factors AffectingPromotional Mix

IntegratedMarketingCommunication

Summary

Objectives for TodayObjectives for Today

• The types, main characteristics and measurement of publicrelations

• The differences between P.R. and advertising

• Marketing communications in the new media

• Factors affecting promotional mix

• Integrated marketing communication

OverviewOverview

Promotional Mix



Summary

Public RelationsPublic Relations

• Highly credible• Many forms: news stories, news features, events and

sponsorships, etc.• Reaches many prospects missed via other forms of promotion• Dramatizes company or benefits• Often the most underused element in the promotional mix

DefinitionDefinition

“is the planned and sustained effort to establish and maintaingoodwill and mutual understanding between an organization andits publics”

(British Institute of Public Relations)

MeasurementMeasurement

Number of people who had the opportunity to read, watch or hearthe message, based on readership or audience figures

Overview

Promotional MixPromotional Mix



Summary

PublicityPublicity

• Main characteristics:– high credibility

– low costs

– lose control of publication

– lose control of content

– lose control of timing

Overview

Promotional Mix



Summary


Communication ModeCommunication Mode

Communication ControlCommunication Control

Feedback AmountFeedback Amount

Feedback SpeedFeedback Speed

Message Flow DirectionMessage Flow Direction

Message Content ControlMessage Content Control

Sponsor IdentificationSponsor Identification

Reaching Large AudienceReaching Large Audience

Message FlexibilityMessage Flexibility

Public RelationsPublic RelationsPublic Relations

Usually indirect, non-personalUsually indirect, non-personal

Moderate to lowModerate to low

LittleLittle

DelayedDelayed

One-wayOne-way

NoNo

LowLow

Usually fastUsually fast

Usually no direct controlUsually no direct control

Overview




Summary

SponsorshipSponsorship

Definition:Definition:

A business relationship between a provider, event ororganisation which offers in return some rights andassociation that may be used for commercial advantage.(Sleight)

• Types of sponsorship:– Event sponsorship

• Educational

• Cultural

• Awards

• Books

• Sports

– Broadcast sponsorship• form of advertising whereby a company sponsors a radio or TV

show

• whereby a whole program is sponsored and credit is given to thesponsor.

Overview




Summary


• Benefits of sponsorship:

• Gain publicity– bears a mark of approval which is good P.R. in itself

• Create entertainment opportunities

• Improve community relations– maintains cultural organisations such as theatres and

orchestras

– provides educational opportunities through bursaries andfellowships

• Foster favourable brand and company associations

• Create promotional opportunities

Overview




Summary


• Selection criteria:– Communications objectives

– Target market

– Risk

– Promotional opportunities

– Past record

– Cost

Overview




Summary

Product PlacementProduct Placement

Product placement:Product placement:

• Is a promotional tactic used by marketers in which a realcommercial product is used in fictional or non-fictionalmedia, and the presence of the product is a result of aneconomic exchange to augment advertising campaignsthrough the publicising of company and product nameswhich often get wide coverage by the media

Different manifestations:

• Product usage negotiated rather than paid for

• Advertisement placement

• Controversy

• Creation of false products

Overview

Promotional Mix



Summary

Product PlacementProduct Placement

Overview

Promotional Mix



Summary

51%

27%

45%

50%

55%

20%

32%

13%

6%

33%

13%

27%

11%

36%

0%

59%

54%

44%

41%

41%

26%

23%

21%

17%

17%

15%

14%

14%

10%

8%

0% 10% 20% 30% 40% 50% 60% 70%

Own website

Webinars

Email Mktng

SEO-Organic

SEO-Paid

Video on demand

Viral video

Podcasts

Blogs

Online ads

Mobile

Wiki

RSS Feeds

Social Networks

Second life

B-to-B B-to-C

Effectiveness of PR in New MediaEffectiveness of PR in New Media

Overview




Summary


Overview




Summary

How P.R. differs fromAdvertising

- Audience- Purpose- Appeal- Media- Presentation- Costs

Communication DecisionsCommunication Decisions

• Which element of communications mix to use?– Advertising, Public Relation, Personnel Selling, Sales

Promotion, and Direct Marketing

• What communication channel to use?– Press, radio, TV, posters, cinema, exhibition, sponsorship, e-

communications, viral marketing, other

• What communication types to use?– National daily, regional daily, magazines, blog, other

• What titles to use– Financial times, times, telegraph, guardian, sun etc

Overview

Promotional Mix

Factors AffectingFactors AffectingPromotional MixPromotional Mix


Summary

Communication vs.Communication vs.Purchase DecisionsPurchase Decisions

PrepurchaseAdvertising is most valuableInforms potential customersabout the existence of theproduct and the seller.

PurchaseImportance of personalselling is highestSales promotion canencourage demand.

PostpurchasePersonal contact after thesale leads to buyersatisfaction.Advertising and personalselling help reducepostpurchase anxiety.

Overview

Promotional Mix



Summary

Communication vs.Communication vs.Purchase DecisionsPurchase Decisions

Overview

Promotional Mix



Summary

Why can humor be aparticularly effectiveappeal?

Factors Affecting Promotional MixFactors Affecting Promotional Mix

Overview

Promotional Mix



Summary

Integrated MarketingIntegrated MarketingCommunicationsCommunications

• Main considerations:

Resource availability & the cost of promotional tools

Market size & concentration

Customer information needs

Product characteristics

Push vs. pull strategies

Overview

Promotional Mix


IntegratedIntegratedMarketingMarketingCommunicationCommunication

Summary

PLC and Promotional ActivitiesPLC and Promotional Activities

To Inform To Persuade To Remind

Introduction Growth Maturity Decline

•Advertising•Event Sponsoring•Direct Marketing•UmbrellaBranding Campaign

•ReminderAdvertising•Direct MailReminders•Sales Promotions

•Limitedbudgetspent onpromoting

Overview

Promotional Mix



Summary

Push vs. Pull StrategyPush vs. Pull Strategy

ManufacturerPromotes toWholesaler

Wholesalerpromotes to

Retailer

RetailerPromotes toConsumer

ConsumerBuys from

Retailer

ManufacturerPromotes to

Customer

ConsumerDemands

Product fromRetailer

RetailerDemands

Product fromWholesaler

WholesalerDemands

Product fromManufacturer

Push Strategy

Pull Strategy

Overview

Promotional Mix



Summary

Implementing IMCImplementing IMC

Overview

Promotional Mix



Summary

Marketing Strategy

Positioning Statement

Communications Decisions1. Identify Target Audience

2. Set Communications Objectives3. Create Message(s)

4. Select Promotional mix5.Set Promotional Budget

Evaluate IMC Strategy

Execute IMC Strategy

Importance of IMCImportance of IMC

It is a core component of the dialogue between customersand the organisation

It raises awareness, communicates the value of theoffering and stimulates purchase

It is an important means of creating intangible value(brand personality)

Supports and adds synergy to the overall business andmarketing strategy

Overview

Promotional Mix



Summary

SummarySummary

• Communication is at the heart of marketing

• All mix elements communicate but promotion is most activeform

• Range of available Tools = advertising, sales promotion,PR, direct marketing, personal selling.

• Choice influenced by context

• Changing marketing environment move towards integratedmarketing communications.

Overview

Promotional Mix



SummarySummary

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Education

promotional mix sponsorships

promotional tactic

direct marketing factors

sales promotional mixpromotion

promotional mixrss feeds

marketing blogs6

marketing mixlecture

product names marketing