Amity Business School
Promotion
Module V
Marketing Management
Sem 1
Sunetra Saha
Purposes of Marketing Amity Business School
Communications
• not only informs, but is also used to differentiate
the seller’s products/services
• may also be effective in affecting the price
elasticity of demand (nonprice competition)
• the marketing communications strategy of a firm
must be coordinated and linked with concepts
such as target segments, positioning,
differentiation, and image
• requires a closely coordinated approach
Marketing Amity Business School
Communications
• Communication by marketers that informs,
persuades, and reminds potential buyers
of a product in order to influence an
opinion or elicit a response.
MARKETING COMMUNICATIONS OBJECTIVES
Amity Business School
• Increase Market Penetration
• Develop Repeat Purchase Behavior
• Establish Customer Relationships
• Increase Rate of Consumption
• Encourage Product Trial
• Stimulate Impulse Buying
• Stimulate Demand
• Differentiate the Product
• Establish a Product Image
• Influence Sales Volume
• Establish, Modify, or Reinforce Attitudes
• Develop Sales Leads
• Stimulate Interest
• Establish Understanding
• Build Support & Acceptance
ELEMENTS OF THE
Amity Business School
MARKETING COMMUNICATIONS MIX
1. Advertising
5. Direct Marketing
2. Public Relations
3. Sales
4. Personal Selling
Promotion
Integrated Marketing Communications (IMC)
is the strategic integration of multiple means of
communicating with target markets
Selection of the Promotional Mix Amity Business School
• PRODUCT CHARACTERISTICS
– Industrial good/technical good
• Need personal selling; customers want to receive
information, inspect and compare the products
– Consumer package goods/frequently purchase items
• Advertising and sales promotion to reach market
– Unit value
• Low cost must use mass media approaches, with high unit
cost personal selling is effective
– Customization
• Customized often requires personal selling
Selection of the Promotional Mix Amity Business School
• CUSTOMER CHARACTERISTCS
– Industrial versus consumer market
• Consumers are easier to reach (decision maker) through
media sources; industrial buyers typically have a more formal
buying process, requiring personal selling
– Number of customers
• For a small number of customers, personal selling can play a
much more important role
– Geographical dispersion
• Not only affects the type of promotional effort, but the media
choices
Advertising Amity Business School
Impersonal, one-way
mass communication
about a product or
organization that is
paid for by a marketer.
Advertising Media Amity Business School
Traditional Electronic
Advertising Media Advertising Media
Television Internet
Radio Electronic mail
Newspapers Interactive video
Magazines
Books
Direct mail
Billboards
Transit cards
Public Relations Amity Business School
The marketing function that
evaluates public attitudes,
identifies areas within the
organization that the public
may be interested in, and
executes a program of action
to earn public understanding
and acceptance.
Public Relation Tools Amity Business School
Web Site
Public News
Service
Activities
Speeches
Corporate
Identity
Materials
Special
Audiovisual Events
Materials Written
Materials
Publicity Amity Business School
Public information about a
company, good, or service
appearing in the mass media
as a news item, which is free to
the company.
Sales Promotion Amity Business School
Free samples
Contests
Premiums
Trade Shows
Popular Tools
Vacation Giveaways
for
Consumer Sales
Promotion Coupons
Personal Selling Amity Business School
Planned presentation to
one or more prospective
buyers for the purpose
of making a sale.
Personal SellingAmity Business School
Traditional Relationship
Selling Selling
When to use Amity Business School
Personal Selling
• Tight budget (straight commission)
• Concentrated Market
– Few buyers
– High value product
• Product must be customized
• Personal contact important
• Must demonstrate product
• Product involves trade-in/up
Characteristics of Amity Business School
Advertising
Advertising
Communication Mode Indirect and non-personal
Communication Control Low
Feedback Amount Little
Feedback Speed Delayed
Message Flow Direction One-way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Fast
Message Flexibility Same message to all audiences
Characteristics of Amity Business School
Public Relations
Public Relations
Communication Mode Usually indirect, non-personal
Communication Control Moderate to low
Feedback Amount Little
Feedback Speed Delayed
Message Flow Direction One-way
Message Content Control No
Sponsor Identification No
Reaching Large Audience Usually fast
Message Flexibility Usually no direct control
Characteristics of Amity Business School
Sales promotion
Sales Promotion
Communication Mode Usually indirect and non-personal
Communication Control Moderate to low
Feedback Amount Little to moderate
Feedback Speed Varies
Message Flow Direction Mostly one-way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Fast
Message Flexibility Same message to varied target
Characteristics of Amity Business School
Personal Selling
Personal Selling
Communication Mode Direct and face-to-face
Communication Control High
Feedback Amount Much
Feedback Speed Immediate
Message Flow Direction Two-way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Slow
Message Flexibility Tailored to prospect
Goals and Tasks Amity Business School
of Promotion
Informing Reminding
Target
Audience
Persuading
Product Life Cycle Amity Business School
Intro Growth Maturity Decline
Stage Stage Stage Stage
Dollars
Product
Category
Sales
0
Time
Goals and Tasks Amity Business School
of Promotion
Informing Reminding
PLC Stages: PLC Stages:
Introduction Maturity
Early Growth Target
Audience
PLC Stages:
Growth
Maturity Persuading
Goals and Tasks Amity Business School
of Promotion
Informative Objectives
Increase awareness
Explain how product works
Suggest new uses
Build company image
Goals and Tasks Amity Business School
of Promotion
Persuasion Objectives
Encourage brand switching
Change customers’ perception of
product attributes
Influence buying decision
Persuade customers to call
Goals and Tasks Amity Business School
of Promotion
Reminder Objectives
Remind customers that product
may be needed
Remind customers where to buy product
Maintain customer awareness
Factors Affecting the Amity Business School
Choice of Promotional Mix
Nature of the Product
Stage in PLC
Target Market Factors
Type of Buying Decision
Promotion Funds
Push or Pull Strategy
Product Life Cycle and the Amity Business School
Promotional Mix
Maturity
Sales ($)
Decline
Introduction Growth
Time
-Light -Heavy Ads -Advertising -Reminder -Ads & PR
Advertising and PR for Ads Decrease
-PR for brand -Limited
-Pre- Awareness Loyalty -Sales Sales
Introduction Promotion Promotion
Publicity -Sales -Personal -Personal
Promotion Selling for -Personal Selling for
for Trial Distribution Selling Distribution
Target Market Amity Business School
Characteristics
FOR:
• Widely scattered
market
• Informed buyers
• Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
Type of Buying Decision Amity Business School
Advertising
Routine
Sales Promotion
Type of
Buying Decision Advertising
Affects Not Routine
Promotional or Complex Public Relations
Mix Choice
Complex Personal Selling
Integrated Marketing Amity Business School
Communications
• A strategic business process used to plan, develop,
execute, evaluate coordinated communication within an
organizations publics, requiring:
– Awareness of audience’s media habits and
preferences
– Understanding of audience’s knowledge and beliefs
about the product
– Use of coordinated media blend linked to a specific
objective
– Key is a single, coordinated message and image
thrust
Basic Communication Elements Amity Business School
• A message
• A source of the message
• A communication channel
• A receiver
Communication process components:
• Encoding • Response
• Decoding • Feedback
• Noise
The Communications Amity Business School
Process
• communications requires a channel, with a sender and
a receiver, to handle the message
• a message is first encoded by the sender
• the communications channel is then used to deliver
the message to the sender
• the sender decodes the message, based on his or her
frame of reference and experience
• may be a need for a response and feedback
• the process can be interrupted by noise
MESSAGE
The Process CHANNEL Amity Business School
Select the media
ENCODING THE or other vehicle DECODING
MESSAGE to carry the message THE MESSAGE
Create an ad, Receiver compares
display, or sales message to
presentation frame of reference
NOISE
Competing ads, MESSAGE
MESSAGE AS
INTENDED
other AS RECEIVED
distractions Knowledge, beliefs,
A promotional idea in
or feelings of
marketer’s mind
receiver changed
FEEDBACK RESPONSE
Impact measured Ranges from simple
using research, sales, awareness to
or another measure purchase
Inside the Communications Amity Business School
Process
• The act of encoding allows that messages can take
many forms.
• The methods of transmitting a message are limited
only by the imagination and creativity of the sender.
• How the message is decoded depends on its form
and the capability and interest of the recipient.
• Without measurable objectives, the effectiveness of
a message cannot be evaluated.
Considerations in Designing Amity Business School
Marketing Communications Mix
• Target market
– Readiness to buy, knowledge, liking,
preference, conviction (belief)
– Purchase
– Geographic scope
– Type — consumer or middleman
– Concentration
More Considerations Amity Business School
• Nature of the product
– Unit value
– Degree of customization
– Presale and postsale service
• Stage of the product life cycle
• Amount of money available for promotion
Push and Pull Amity Business School
Strategies
PUSH STRATEGY (Office Depot and Office Max)
Manufacturer Wholesaler Retailer Consumer
promotes to promotes to promotes to buys from
wholesaler retailer consumer retailer
Orders to manufacturer
PULL STRATEGY (Coke and Pepsi)
Consumer Retailer Wholesaler
Manufacturer
demands demands demands
promotes to
product product product from
consumer
from retailer from wholesaler manufacturer
Orders to manufacturer
Direct Marketing Amity Business School
• Techniques used to get consumers to
make a purchase from their home, office
or other nonretail setting
– Direct mail, catalogs, mail order,
telemarketing, electronic retailing
TECHNIQUES OF DIRECT MARKETING
Amity Business School
Electronic Direct Mail
Media
Telemarketing Direct Selling
Print Broadcast
Media Media