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Promotion Mix and Integrated Marketing Strategies

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8 views37 pages

Promotion Mix and Integrated Marketing Strategies

Uploaded by

laisamannoban
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

PROMOTION – INTEGRATED

MARKETING COMMUNICATIONS AND


THE PROMOTION MIX
RECAP: MARKETING PROCESS

Where are you in this simple model of marketing


process?

 Product
 Price
 Place
 Promotion
LEARNING OBJECTIVES

1. Define the different promotion mix tools and discuss the factors
that must be considered in shaping the overall promotion mix.
2. Discuss the process and advantages of integrated marketing
communications in communicating customer value.
3. Outline the steps in developing effective marketing
communications.
4. Identify and discuss the major forms and steps of Advertising
• Agenda
 What is Promotion (Mix)?
• Promotion Mix tools
• Integrated Marketing Communication (IMC)
 Marketing Communication Decisions
• Promotion Mix Strategies
• Steps in developing Marketing Communication
 Promotion Mix tool in details
• Advertising
• Example of Promotion

 Pepsi X Blackpink  Pepsi Zero Calories

Source: Pepsi Vietnam (2021) and Pepsi Vietnam (2022)


PROMOTION MIX
• What is Promotion Mix?
• Promotion Mix tools
• Integrated Marketing Communication
• The Promotion Mix

 Communication is actually through ALL elements of the Marketing


Mix. However, Communication is strongest through
Promotion.
 Product, price, place, and promotion, must be coordinated for
greatest communication impact.
 To pursue communication and marketing objectives, companies use
Promotion Mix – also called Marketing Communications Mix
(Marcom).
 Promotion Mix Tools consists of the specific blend of:
1. Advertising
2. Public Relations
3. Sales Promotion
4. Direct/Online marketing Source: Kotler et al. (2017)
Broadcast Print Internet Outdoor
• 1. Advertising

Advertising is any paid form of non-personal presentation and


promotion of ideas, goods, or services by an identified sponsor:

Source: Kotler et al. (2017)


• 2. Public Relations

Public relations involves


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 releases
 Sponsorships
 Special events
 Web pages
Source: Kotler et al. (2017)
• 3. Sales Promotion

Sales promotion is the short-term incentives to


encourage the purchase or sale of a product or service.
 Discounts
 Coupons
 Displays and Demonstration of items

Source: Kotler et al. (2017)


• 4. Personal Selling

Personal selling is the


personal presentation by
the firm’s sales force for the
purpose of making sales and
building customer
relationships
 Sales presentations
 Trade shows
 Telemarketing

Source: Kotler et al. (2017)


• 5. Direct Marketing

Direct marketing: Direct connections with


carefully targeted individual consumers
to both obtain an immediate response and
cultivate lasting customer relationships – the
use of direct mail, the telephone, direct-
response television, email, the Internet, and
other tools to communicate directly with
specific consumers
 Catalog
 Telemarketing
 Kiosk
 Internet
 Mobile phone
 Etc.
Source: Kotler et al. (2017)
• Integrated Marketing Communications (IMC)

 The Need for Integrated Marketing Communications:


Consumers today are bombarded by millions of commercial
messages from many sources by companies. There maybe
conflicting messages sent to the consumers result in confusion in
company images and customer relationships.

 Integrated marketing communications (IMC) is the


integration by the company of its communication
channels to deliver a clear, consistent, and compelling
message about the organization and its brands.

Source: Kotler et al. (2017)


• Integrated Marketing Communications (IMC)

What should companies do in the current landscape?


 Companies must communicate their value propositions to
customers, and what they communicate should not be left to
chance. All communications must be planned and blended
into carefully integrated programs.
 Companies now are doing less broadcasting and more
narrowcasting that “reach – and have a conversation with –
small clusters of consumers who are consuming not what is
force-fed to them, but exactly what they want”.
 However, the mix of both traditional mass media and new,
more-targeted personalized media (digital tools) should be used.
MARKETING
COMMUNICATION
DECISIONS
• Promotion Mix Strategies
• Steps in developing Marketing Communication
PROMOTION MIX STRATEGIES
• Promotion Mix Strategies

 Marketers can choose from two basic promotion mix


strategies.

Source: Kotler et al. (2017)


• Promotion Mix Strategies

• Push Strategy Pull Strategy


 A push strategy involves  Using a pull strategy, the
“pushing” the product through producer directs its marketing
distribution channels to final activities primarily advertising
consumers. and consumer promotions)
 The producer directs its toward final consumers to
marketing activities (primarily induce them to buy the product.
personal selling & trade
promotion) toward channel
members to induce them to
carry the product and promote
to final consumers.
• Example
• Factors affecting the promotions mix strategy decision
 Companies consider many factors when
designing their promotion mix
strategies, including: type of product/
category/ market and the PLC stage.
 Business-to-consumer (B-to-C)
companies usually “pull” more, putting
more of their funds into advertising,
followed by sales promotion, personal
selling, and then public relations.
 In contrast, business-to-business (B-to-
B) marketers tend to “push” more,
putting more of their funds into personal
selling, followed by sales promotion,
advertising, and public relations.

Source: Kotler et al. (2017)


STEPS IN DEVELOPING
MARKETING COMMUNICATION
• Steps in Developing Effective Marketing Communication (applicable for
any Promotion Mix tool)

1. Identify the Target Audience

2. Determine the Communication


Objectives

3. Design the Message

4. Choose the Media

5. Select the Message Source

6. Collecting Feedback
• Ovaltine: Empower Kids’ Happy Exploration

 Case Study: Link

Source: Euromonitor International (2019)


Communication
Target Audience Message Media Message Source Feedback
Objectives

• Step 1: Identify the target audience

 A marketing communicator starts with a


clear target audience in mind.

 The audience may be potential buyers or


current users, those who make the buying
decision or those who influence it. The
audience may be individuals, groups,
special publics, or the general public.

 The target audience will heavily affect the


communicator's decisions on what will be
said, how it will be said, when it will be said,
where it will be said, and who will say it.

Source: Kotler et al. (2017)


Communication
Target Audience Message Media Message Source Feedback
Objectives

• Step 2: Determining the Communication Objectives

 Once the target audience has been defined, the marketers must
decide what response they seek.
 The marketing communicator needs to know where the target
audience now stands and to what stage it needs to be
moved. The target audience maybe in any of six buyer-readiness
stages, the stages consumers normally pass through on their way
to purchase, including awareness, knowledge, liking, preference,
conviction, and purchase.
Awareness Knowledge Liking Preference Conviction Purchase

Figure: Buyer-Readiness Stages

Source: Kotler et al. (2017)


Communication
Target Audience Message Media Message Source Feedback
Objectives

Message Content
Rational appeals Emotional
• Step 3: Designing appeals
a Message Moral appeals

 This Step includes 3 key considerations:


Message Structure
Conclusion Argument

Message Format
Headline, colour, sounds, etc.

Source: Kotler et al. (2017)


Communication
Target Audience Message Media Message Source Feedback
Objectives

• Step 3: Designing a Message

Message Content is an appeal or theme that will produce the desired response. It
includes 3 main appeals:
1. Rational appeal relates to the audience’s self-interest. Messages could show a
product’s quality, economy, value or performance.
2. Emotional appeal is an attempt to stir up positive or negative emotions to
motivate a purchase. Emotional appeal ranges from love, joy and humor to sexual,
fear and guilt.
3. Moral appeal is directed at the audience’s sense of right and proper. It is often
used to urge people to support social causes such as environmental care.

Advertising appeals should have three characteristics:


4. They should be meaningful
5. Appeals should be believable
6. Appeals should be distinctive

Source: Kotler et al. (2017)


• What appeal was applied in ad “Holiday – The surprise”?
Sometimes, the best gifts can come from the most unexpected places.

Source: Ads of Brands (2019)


• Balenciaga vs IKEA bag ($2,145 vs 99 cents)
• How about these ones?
Communication
Target Audience Message Media Message Source Feedback
Objectives

• Message Structure

3 structure issues:
 Whether to draw conclusion or leave it to
audience
 Whether to present the strongest argument first
or last
 Whether to present a one-sided argument or a
two-sided argument. One-sided argument is
more popularly used.

Source: Kotler et al. (2017)


Communication
Target Audience Message Media Message Source Feedback
Objectives

• Message Format

 Message format: a strong format is needed for any message. It


includes headline, copy, illustration and color (print ad). It includes
words, sounds and voices (radio ad). TVC includes all of these
factors plus body languages.

TVC: NEW Cornetto Milk Tea


and Black Choco Cookie

Source: Kotler et al. (2017) and Selecta Cornetto (2019)


Communication
Target Audience Message Media Message Source Feedback
Objectives

Personal Communication Channels


• Channels
Step 4: Choosing
through Media
which two or more people communicate directly
with each other, including face to face, on the phone, through mail or
email, or even through an Internet “chat”
Two broad types of communication channels
 Is suitable for products that are expensive, risky or has high-
involvement purchase decision. High-involvement purchase occurs
when the consumers spend a lot of time, efforts and/or finance to buy
or make decision to buy the product.
 Is effective because it allows personal addressing and feedback.
Channels of personal communication:
 Company’s control (salespeople, opinion leaders, buzz marketing):
Opinion leaders are people within a reference group who, because of
their special skills, knowledge, personality, or other characteristics;
exerts social influence on others; Buzz marketing involves cultivating
opinion leaders and getting them to spread information about a
product or service to others in their communities
 Independent experts
 Word-of-mouth: is very crucial because “90% of customers trust
“recommendations from consumers”.
Source: Kotler et al. (2017)
Communication
Target Audience Message Media Message Source Feedback
Objectives

• Step 4: Choosing Media

Non-personal Communication Channels


 Media that carry messages without personal contact or feedback,
including major media, atmospheres, and events

Major media include:


 Print media (newspaper, magazines, direct-mail)
 Broadcast media (radio, television)
 Display media (billboards, signs, posters)
 Online media (Internet, website, social networks)
 Electronic devices & digital (mobile phone, tablet)
Source: Kotler et al. (2017)
Communication
Target Audience Message Media Message Source Feedback
Objectives

• Step 5: Selecting the Message Source

The message’s impact on the target


audience is affected by how the
audience views the communicator.
Message delivered by highly credible
sources are more persuasive.
 Professionals & experts:
doctors, dentists, other healthcare
providers.
 Celebrities: athletes, actors,
cartoon characters, etc. The use of
celebrities must be careful. Other
message sources: the firm’s CEO,
the firm’s employees, a real
customer (highlighting their use of
the product), etc. Source: Kotler et al. (2017)
• Examples:

Get Ready With JISOO for Dior Fall 2022 in Seoul


Global Ambassador, JISOO, prepares for the Dior Fall
2022 show in her hometown! Lazada X Hyun Bin
Brand Ambassador of Lazada
Southeast Asia
Communication
Target Audience Message Media Message Source Feedback
Objectives

• Step 6: Collecting Feedback

 Involves the communicator understanding the effect on


the target audience by measuring behavior resulting from
the message they sent.
 This involves asking the target audience members whether
they remember the message, how many times they saw it,
what points they recall, how they felt about the message, and
their past and present attitudes toward the product and
company.

Source: Kotler et al. (2017)

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