Chapter 8: Promotion Strategy
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OBJECTIVES
- Define the five promotion mix tools for communicating
customer value .
- Discuss the changing communications landscape and the
need for integrated marketing communications.
- Outline the communication process and the steps in
developing effective marketing communications.
- Explain the methods for setting the promotion budget and
factors that affect the design of the promotion mix.
CONTENT
8.1 The Promotion Mix
8.2 Integrated Marketing Communications
8.3. The Communication Process & Steps in Developing
Effective Marketing Communication
8.4. Setting the Total Promotion Budget and Mix
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Today’s fo
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8.1.1. Concept
Promotion mix (marketing communications mix)
The specific blend of promotion tools that the company
uses to persuasively communicate customer value and
build customer relationships.
Department of Communication 5
8.1.2 Advertising
• Any paid form of nonpersonal presentation and promotion of ideas,
goods, or services by an identified sponsor.
• Television
• Print
• Online
• Mobile
• Outdoor
Department of Communication 6
8.1.3 Sales promotion
• Short-term incentives to encourage the purchase or sale of a product
or service.
• Discount
• Coupon
• Contest
• Display
• Demonstration
Department of Communication 7
8.1.4 Personal selling
• Personal customer interactions by the firm’s sales force for the
purpose of engaging customers, making sales, and building customer
relationships.
• Sales presentation
• Trade show
• Promotional program
Department of Communication 8
8.1.5 Public relations
• Building good relations 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.
• Press release
• Press conference
• Sponsorship
• Event organization
• Website
Department of Communication 9
8.1.6 Direct and digital marketing
• Engaging directly with carefully targeted individual consumers and
customer communities to both obtain an immediate response and build
lasting customer relationships.
• Direct mail
• Catalog
Department of Communication 10
8.2 Integrated Marketing Communications
• Carefully integrating and coordinating the company’s many
communications channels to deliver a clear, consistent, and
compelling message about the organization and its products.
A campaign that works equally well across online media, TV, print
and outdoor” Tim Bourne, CEO Exposure agency
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8.2 Integrated Marketing Communications
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8.3.1 The Communication Process
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Effective message
The more the sender's
The encoding process of The best messages field of experience
the sender must align include words and overlaps with the
with the decoding symbols that are familiar receiver's experience, the
process of the receiver. to the receiver. more likely the message
will be effective.
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8.3.2 Steps in Developing Effective Marketing
Communication
Identifying the Target Audience
Determining the Communication
Objectives
Designing a Message
Choosing Communication Channels and
Media
Selecting the Message Source &
15 Collecting Feedback
Identifying the Target Audience
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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Determining the Communication Objectives
Buyer-Readiness Stages
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Designing a Message
Rational appeals Emotional appeals Moral appeals
relate to the attempt to stir up either are directed to an
audience’s self- negative or positive audience’s sense of
interest. emotions that can what is “right” and
motivate purchase. “proper”.
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Choosing Communication Channels and
Media
Personal Communication Channels: two or more people
communicate directly with each other, including face to face, on the
phone, via mail or e-mail, or even through an Internet “chat.”
Nonpersonal communication channels: media that carry messages
without personal contact or feedback, including major media,
atmospheres, and events.
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Selecting the Message Source
The impact of the message depends on how the target audience
perceives the communicator.
• Celebrity
• Athlete
• Entertainer
• Expert
• Healthcare professional
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Collecting Feedback
After sending the message or other brand content, the communicator
must research its effect on the target audience.
• Do they remember the content
• How many times they saw it
• What points they recall
• How they felt about the content
• How their past and present attitudes toward the brand and company
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8.4.1 Setting the Total Promotion Budget
Affordable Method: Setting the promotion budget at the level
management thinks the company can afford.
• The budget for annual communication activities will be uncertain.
• Next year, when the market changes, difficulties will arise.
• This can lead to insufficient spending levels, although it can also
sometimes result in overspending.
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8.4.1 Setting the Total Promotion Budget
Percentage-of-Sales Method: Setting the promotion budget at a
certain percentage of current or forecasted sales or as a percentage
of the unit sales price.
• The budget will vary according to annual revenue, making it
difficult to establish long-term planning.
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8.4.1 Setting the Total Promotion Budget
Competitive-Parity Method: Setting the promotion budget to match
competitors’ outlays.
• However, each company is different and has its own
communication requirements, so this cannot be applied long-term.
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8.4.1 Setting the Total Promotion Budget
Objective-and-Task Method : Developing the promotion budget
by
(1) defining specific promotion objectives,
(2) determining the tasks needed to achieve these objectives, and
(3) estimating the costs of performing these tasks.
The sum of these costs is the proposed promotion budget.
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8.4.2 Promotion Mix Strategies
Push strategy
A promotion strategy that calls for using the sales force and trade promotion to
push the product through channels.
The producer promotes the product to channel members who in turn promote it
to final consumers.
Pull strategy
A promotion strategy that calls for spending a lot on consumer advertising and
promotion to induce final consumers to buy the product, creating a demand
vacuum that “pulls” the product through the channel.
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8.4.2 Promotion Mix Strategies
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8.4.2 Promotion Mix Strategies
Integrating the Promotion Mix
The company must take steps to ensure that each communication
tool is integrated smoothly.
Different communication tools must work together to convey the
brand message and the unique selling points of the business.
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8.4.2 Promotion Mix Strategies
Socially Responsible Marketing Communication
• Open and honest communication with consumers and resellers.
• Avoid deceptive or false advertising.
• Avoid bait-and-switch advertising.
• Comply with all national regulations.
• Adhere to the principle of "fair competition.”
• Do not offer bribes.
• Do not attempt to obtain competitors' trade secrets.
• Do not disparage competitors or their products.
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8.4.2 Promotion Mix Strategies
Advertising
• Reach a large number of buyers at a low cost.
• Increase sales rapidly.
Limitations:
• Not convincing specific customers
• One-way communication channel with the audience
• Advertising can be very expensive
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8.4.2 Promotion Mix Strategies
Personal selling
• The most effective tool: In certain stages of the purchasing
process.
• Allows for all types of customer relationships: Developing
from a simple transactional relationship to personal friendships.
• Building relationships: Long-term by addressing customer
issues
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8.4.2 Promotion Mix Strategies
Personal selling
Limitations:
• The sales force requires long-term commitment.
• The scale of a sales force is difficult to change.
• The most expensive marketing tool of the company.
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8.4.2 Promotion Mix Strategies
Sales promotion
• Attract consumer attention.
• Create a strong motivation to drive purchases.
• Revive sales for a quick response.
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8.4.2 Promotion Mix Strategies
Public relations tools:
• Sponsorship activities
• Charitable activities
• Open house events for the public to visit the
organization
• Publication of financial reports
• Participation in community activities
• Event organization
• Media relations
• Press conferences
• Lobbying
• Crisis management
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8.4.2 Promotion Mix Strategies
Direct marketing
Send sales letters, Catalogs in print, Sales calls via
announcements, video, or other landline or mobile
and flyers. digital media. phone.
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REFERENCES
Core textbook
1. Philip Kotler & Gary Armstrong (2021), Nguyên lý Marketing.
Hà Nội: NXB Đại học Kinh Tế Quốc Dân (sách dịch).
2. Philip Kotler & Gary Armstrong. (2021). Principles of
Marketing. Pearson Prentice Hall.
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THANK YOU!