PROMOTION IN MARKETING

At the end of this module the learning outcomes are What is the relevance of marketing communication? What are the elements of marketing communication mix? What is the purpose and relevance of each element of marketing communication mix?
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PROMOTION IN MARKETING
Suggested readings 1. Marketing management by Kotler, chapter 17, 18 & 19, 13th edition

Doves Campaign for Real Beauty

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AIDS prevention campaign in West Bengal was a unique integrated mass media campaign

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What are Marketing Communications?

Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell.

Role of Marketing Communication

For consumers
Tell or show consumers how and why a product is used, by what kind of person, and where and when Consumers can learn about who makes the stand for product and what the company and brands stand for Get an incentive or reward for trial or usage Allows companies to link their brands to other people, places, events, brand, experiences, feelings 6 and things.

Modes of Marketing Communications

Advertising Sales promotion Events and experiences Public relations and publicity Direct marketing Interactive marketing Word-of-mouth marketing Personal selling

Word-of-Mouth Marketing
Person-to-person Chat rooms Blogs

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PROMOTION IN MARKETING
Promotion - How do we make customers aware about the product - How do we communicate? - Problem of integrated marketing communications What is the communication process

Elements in the Communications Process

PROMOTION IN MARKETING
Communication process - Interactive process - Between company and its customers Every aspect communicates - Product styling - Price - Packaging - Sales personnel dress and manners - Channel partners behavior - Office dcor - Sales personnel business card - Stationery

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PROMOTION IN MARKETING
Customer wants to buy computers. What will he do? - Talk to others - See ads on television - Read articles - Surf internet - Go to computer shop - See a live demonstration Marketers need to understand which experiences and impressions will have the most influence at each stage of the buying process.
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PROMOTION IN MARKETING
Communication issues Role of the marketer is to send his/her message through to the receiver (customer) Customer may not receive the message for three reasons
Selective attention Selective distortion Selective retention

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The Communications Process

Selective attention Selective distortion Selective retention

PROMOTION IN MARKETING
Selective attention - How many messages do you get exposed to everyday - Over 100 (few 100s) - How ? - Newspaper, internet, banners, word of mouth, books etc. - Do you remember all? - No, why? - Not possible to recall so many messages - Which one will you recall - An ad with bold headline Win a Mercedes today 15 - Will grab your attention

PROMOTION IN MARKETING
Selective distortion - Consumers will hear what fits into their belief system - Consumers often add something that are not there - Not notice other things that are there - Message gets distorted because the consumer adds or ignores certain things in the message
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PROMOTION IN MARKETING
Selective retention - How many ads you remember seen in last one year - Only a fraction - You recall only those message which you feel are positive - Reject the ones which according to you are negative

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Steps in Developing Effective Communications

Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Measure results/ manage IMC

Steps in Developing Effective Communications

Identify target audience Clear target audience Influencer Decider User

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Steps in Developing Effective Communications

Determine the communication objectives Four types Category need Brand awareness Brand attitude Brand purchase intention
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Steps in Developing Effective Communications

Category need Remove discrepancy between current motivational state and a desired emotional state Need of electric car

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Steps in Developing Effective Communications

Brand awareness
Ability to identify the brand within the category Brand recall is important outside the store Brand recognition is important inside the store Brand awareness provides a foundation for brand equity Red and white packages of Colgate Dental cream
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Steps in Developing Effective Communications

Brand attitude Evaluating the brand with respect to its perceived ability to meet a currently relevant need Kelloggs experience

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Steps in Developing Effective Communications

Brand purchase intention Take purchase related action Promotional offers

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Steps in Developing Effective Communications

Designing the Communications Message strategy Creative strategy Message source Global adaptation

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Designing the Communications

Message strategy What type of appeals
Positive Negative

LIC communication strategy Cadbury strategy

Steps in Developing Effective Communications

Creative strategy How a message is being expressed Content of the message Two types of appeals
Informational appeals Transformational appeals

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Steps in Developing Effective Communications

Informational appeals Elaborates attributes/benefits Surf Saridon

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Steps in Developing Effective Communications

Transformational appeals Elaborates non-product-related benefit or image Raymond young successful and elegantly dressed men Mentos Dimaag ki bate jla de
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Steps in Developing Effective Communications

Message source Most from the company Messages from attractive people attract attention Use of celebrities Spokesperson credibility is critical
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Message Source
Celebrity Characteristics Expertise Trustworthiness Likeability

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Steps in Developing Effective Communications

Global adaptations Should the offering be standardized or adapted Products Market segments Style Local or Global Coke experience

Issues Facing Global Adaptations

Is the product restricted in some countries? Are there restrictions on advertising the product to a specific target market? Can comparative ads be used? Can the same advertising be used in all country markets?

Steps in Developing Effective Communications

Select Communication Channels Pfizer
Deploy sales personnel Sales calling expensive expand its communication channel Ads in medical journals Direct mails Free samples Telemarketing Sponsor clinical conferences

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Steps in Developing Effective Communications

Select Communication Channels Personal channels Nonpersonal channels Integration of channels

Select Communication Channels

Personal channels Two or more persons communicate face-toface, person-to-audience, over the telephone Individualized presentations and feedback

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Personal Communications Channels

Advocate channels

Expert channels
Social channels

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Steps in Developing Effective Communications

Advocate channels Consists of salespeople contacting buyers in the target market

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Steps in Developing Effective Communications

Expert channels Independent experts making statements to target buyers

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Steps in Developing Effective Communications

Social channels Consists of friends, family members and associates talking to target buyers

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Steps in Developing Effective Communications

Nonpersonal Communication channels Directed to more than one person Include
Media Sales promotion Events and experiences Public relations
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Steps in Developing Effective Communications

Media Consists of
Print media Broadcast media Network media Electronic media Display media
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Steps in Developing Effective Communications

Sales Promotion Consists of
consumer promotions Trade promotions

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Steps in Developing Effective Communications

Events and experiences Includes
Sports Arts Entertainment

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Steps in Developing Effective Communications

Public relations Targeting at
Governments Other firms media

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Steps in Developing Effective Communications

Integration of communication channels Personal and nonpersonal channels need to coordinate with each other to deliver effective output.

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Steps in Developing Effective Communications

Establish the total marketing communications budget Common methods are Affordable method Percentage of sales method Competitive parity method Objective-and-task method
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Steps in Developing Effective Communications

Decide on marketing communication mix Marketer must allocate resources to these eight modes of communication Public relations Advertising Sales promotion
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Steps in Developing Effective Communications

Events and experiences Direct marketing Interactive marketing Word-of-mouth marketing Personal selling

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Steps in Developing Effective Communications

Allocation to these modes depends upon the nature of the product

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Steps in Developing Effective Communications

Measuring communication results planning and controlling always go together Measure results What objectives were set

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Characteristics of The Marketing Communications Mix

Advertising Pervasiveness Amplified expressiveness Impersonality Sales Promotion Communication Incentive Invitation

Characteristics of the Marketing Communications Mix

Direct Marketing Customized Up-to-date Interactive Personal Selling Personal interaction Cultivation Response

Word-of-Mouth Marketing Credible Personal Timely

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Characteristics of the Marketing Communications Mix

Public Relations and Publicity High credibility Ability to catch buyers off guard Dramatization Events and Experiences Relevant Involving Implicit

Factors in Setting Communications Mix

Type of product market Buyer readiness stage Product life cycle stage

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Cost Effectiveness by Buyer Readiness Stage

PROMOTION IN MARKETING
Advertising - Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor - Is done by Commercial organizations Government Non-profit organizations - Direct messages to target public
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PROMOTION IN MARKETING
Advertising can be used to 1. Long term image - Ads of Coke 2. Trigger quick sales - Buy one, get one free 3. Geographically dispersed buyers - Lifebuoy customers o Rural o Semi-urban o All over India 4. Brand preference 58 - Surf comparing ordinary washing powder with surf

PROMOTION IN MARKETING
Advertising can be used to 5. Removing misconceptions - AIDS o Causes o Misconceptions o Remove o Present right picture

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PROMOTION IN MARKETING
Who carries out advertising? - Advertising department within the marketing department - Most of the work carried out by an outside advertising agency

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PROMOTION IN MARKETING
Developing an advertising program Five Ms of advertising 1. Mission What is the purpose of advertising 2. Money How much can be spent? 3. Message What message should be sent? 4. Media What media should be used? 5. Measurement How should the results be measured?

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PROMOTION IN MARKETING
Mission - Sales goals - Advertising objectives Money Factors to consider: - Stage in product life cycle - Market share and consumer base - Competition and clutter - Advertising frequency - Product substitutability
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PROMOTION IN MARKETING
Message - Message generation - Message evaluation and selection - Message execution - Social responsibility review

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PROMOTION IN MARKETING
Media - Reach, frequency, impact - Major media types - Specific media vehicles - Media timing - Geographical media allocation Measurement - Communication impact - Sales impact
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PROMOTION IN MARKETING
Sales promotion Consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

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PROMOTION IN MARKETING
Sales promotion Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy.

Examples - Samples - Cash refund - Prices off - Prizes - Free trials - Cross promotions

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PROMOTION IN MARKETING
Sales promotions examples 1. Samples Dominos provide free pizzas when they start outlets. 2. Cash refund Surf saying that if you do not like the product, entire money will be refunded 3. Prices off Hindustan times Scratch an HT sticker. You get Rs 90/- off on Dominos pizza 4. Prizes Hindustan times buy HT, win a Santro
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PROMOTION IN MARKETING
Sales promotion who carries out - Manufacturers - Distributors - Retailers - Non-profit organizations

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PROMOTION IN MARKETING
Types of sales promotion 1. Consumer promotion - Targeted on end consumers 2. Trade promotion - Targeted on intermediaries and channel partners 3. Business promotion - Targeted on business / institutional consumers
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PROMOTION IN MARKETING
Purposes of sales promotion - Introducing new products - Unloading accumulated inventory - Overcoming seasonal slumps - Getting new accounts - Retrieving lost accounts - As a support and supplement to the advertising effort - As a supplement and support to the salesmens effort - Persuading marketing channel to buy more / increase the size of the orders.
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PROMOTION IN MARKETING
Events and experiences Sponsoring events Provide companies Opportunities to obtain wider exposure Influence attitudes towards brands

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PROMOTION IN MARKETING
BCCI Kit sponsorship by Nike Team sponsorship by Sahara Media rights to telecast matches Association with popular sport in India Gets visibility amongst youngsters
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Why Sponsor Events?

To identify with a particular target market or life style To increase brand awareness To create or reinforce consumer perceptions of key brand image associations To enhance corporate image To create experiences and evoke feelings To express commitment to community To entertain key clients or reward employees To permit merchandising or promotional opportunities

PROMOTION IN MARKETING
Public relations(PR) Involves a variety of programs designed to promote or protect a companys image or its individual products

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PROMOTION IN MARKETING
Functions of public relations 1. Press relations Presenting news and information about the organization in most positive light 2. Product publicity Sponsoring efforts to publicize specific products 3. Corporate communication Promoting understanding of the organization through internal and external communications

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PROMOTION IN MARKETING
4. Lobbying Dealing with legislators and government officials to promote or defeat legislation and regulation 5. Counselling Advising management about public issues and company positions and image. This includes in the event of a product mishap.

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Tasks Aided by Public Relations

Launching new products Repositioning a mature product Building interest in a product category Influencing specific target groups Defending products that have encountered public problems Building the corporate image in a way that reflects favorable on products

Major Tools in Marketing PR

Publications Events Sponsorships News Speeches Public Service Activities Identity Media

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PROMOTION IN MARKETING
Public relations examples 1. Dhara educating customers Mustard oil problem 2. Maruti promoting road safety week 3. McDonalds denying use of beef in India 4. Ranbaxy promoting green Delhi

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PROMOTION IN MARKETING
Personal selling Face to face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders

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PROMOTION IN MARKETING
Personal selling - Is the most effective tool at later stages of the buying process. - Particularly in building up o Buyer preference o Conviction o Action

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PROMOTION IN MARKETING
Personal selling Three distinctive qualities 1. Personal confrontation Immediate and interactive relationship between two or more persons 2. Cultivation - Encourages personal relationship - Informal 3. Response - Buyer under obligation 82 - Listen to sales talk

Types of Sales Representatives

Deliverer Order taker Missionary Technician Demand creator Solution vendor

Types of Sales Representatives

Deliverer Salesperson whose major task is the delivery of the product

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Types of Sales Representatives

Order taker Inside order taker Standing behind the counter Outside order taker Calling on customers

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Types of Sales Representatives

Missionary Does not takes order Builds goodwill Educate the actual or potential user

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Types of Sales Representatives

Technician High level of technical knowledge Consultant to client companies

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Types of Sales Representatives

Demand creator Salesperson who relies on creative methods for selling products

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Types of Sales Representatives

Solution vendor Salesperson whose expertise is solving a customers problems

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PROMOTION IN MARKETING
Direct marketing Is the use of consumer-direct channels to reach and deliver goods and services to customers without using marketing middleman

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PROMOTION IN MARKETING
Can reach through Direct mail Catalog marketing Telemarketing Mobile devices Web-sites
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PROMOTION IN MARKETING
Direct marketing characteristics 1. Non public Message is addressed to a specific person 2. Customized Message can be prepared to appeal to the addressed individual 3. Up-to-date A message can be prepared very quickly 4. Interactive The message can be changed depending on the persons response. 92

PROMOTION IN MARKETING
Benefits direct marketing Fun of home shopping Online marketing Convenient Hassle free Saves time Large selection of merchandise Compare prices
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PROMOTION IN MARKETING
Benefits direct marketing
Marketers benefit Focus Find any types of groups Diabetic list Obese list Gymkhana club members list Airtel subscribers list Citibank card members list One year old babies list
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PROMOTION IN MARKETING
Benefits direct marketing

Build a continuous relationship Can reach prospects at the right moment Can test alternative medias Find out which is the most effective media Strategy less visible to competitors
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PROMOTION IN MARKETING
Interactive Marketing Latest channels are electronic Internet provides opportunities with greater Interaction individualization

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PROMOTION IN MARKETING
Interactive Marketing Advantages
Can send tailored messages Reflect their interests Effective for reaching during the day Young, high-income, high-education customers total online media consumption exceeds TV
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PROMOTION IN MARKETING
Interactive Marketing Disadvantages Can actively screen out most messages Bogus clicks generated Consumers can misuse

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PROMOTION IN MARKETING
Interactive Marketing Maruti Dil Se program Tap nonresident Indian market Created marutinri.com NRIs can purchase and gift Maruti cars Gives multiple payment options Testimonial section Existing customers sharing their experiences

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PROMOTION IN MARKETING
Word of Mouth Facebook Have become important force in B2B and B2C marketing Social networks Key aspect Word of mouth Consumers talk about brands everyday
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PROMOTION IN MARKETING
Word of Mouth Organizations increasingly understand the power of word of mouth Can be very effective for smaller businesses for whom customers may feel a more personal relationship

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Buzz and Viral marketing Buzz marketing Generates excitement Creates publicity Conveys new relevant brand-related through unexpected.
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Viral Marketing Encourages consumers to pass along company-developed products and services or audio, video, or written information to others online.

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Viral Marketing P&G 225000 teens enlisted in Tremor 600000 mothers in Vocalpoint Certain individuals want to learn about products, receive samples and coupons Share their opinions with companies Talk up their experiences with others

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Viral Marketing P&G

Vocalpoint moms Big social networks Generally speak to 25-30 other women during the day Compare to an average of 5 for other moms Messages carry a strong reason to share product information with a friend. 105