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Company Promotion Mix

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This is also called the marketing communications mix. It consists of a specific blend of advertising, public relations, personnel selling, sales promotion, and direct marketing tools that the company uses to communicate customer value and build consumer relationships persuasively.

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What tools does the marketing communications mix consist of?

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advertising, public relations, personal selling, sales promotion, and direct marketing tools

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advertising

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any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

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sales promotion

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short-term incentives to encourage the purchase or sale of a product or service

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personal selling

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personal presentation by the firm's sales force for the purpose of making sales and building customer relationships

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public relations

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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

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direct marketing

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direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships (use of direct mail, telephone, direct response television, e-mail, internet, and other tools to communicate directly with specific consumers

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personal selling (continued)

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includes presentations, trade shows, and incentive programs. Public relations includes press releases, sponsorships, special events, and web pages.

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direct marketing (continued)

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includes catalogs, telephone marketing kiosks, and the internet

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The major factors that are changing the face of today's marketing communications

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Consumers are changing, marketing strategies are changing, and sweeping advances in communication and technology are causing huge changes in the ways in which companies and consumers communicate with each other

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Whose dominance is declining

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television, magazines, newspapers, and other mass media remain very important

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who is in their place

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advertisers are now adding a broad selection of more specialized and highly targeted media to reach smaller customer segments with more personalized, interactive messages.

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Shifting Marketing Communications Model

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likely that the new marketing mix communications model will consist of a gradually shifting mix of both traditional mass media and wide array of exciting new more targeted and personalized media

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"DOOM AND GLOOM CHAOS SCENARIO"

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in which the old mass media communications model will collapse entirely

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Fragmentation

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the opportunity to reach and have a conversation with small clusters of consumers who are consuming exactly what they want, they are not consuming what is force-fed to them

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Younger consumers

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Appear to be turning away from major television networks in favor of cable tv or altogether different media

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Alternative to a "chaos scenario"

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other industry insiders see a more gradual shift to a new marketing communications model. note that board-cast television and other mass media still capture a large share of the promotion budgets of most major marketing firms

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problem for marketers

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the shift towards a richer mix of media and communication approaches poses a problem for marketers. consumers today are bombarded by commercial messages from a broad range of sources. BUT consumers do not distinguish between message sources the way marketers do

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consumer mindset

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consumers do not distinguish between message sources the way marketers do. In the consumer's mind messages from different media and promotional approaches all become part of a single message about the company

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conflicting messages

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conflicting messages from these different sources can result in confused company images, brand positions, and customer relationships

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importance of communication channels

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very often companies fail to integrate their different communication channels. The result that occurs is a hodgepodge of communications to consumers. ex. mass media ads say one thing while a price promotion sends a different signal. Everything is out of sync.

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What is the problem

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The problem is that the communications often come from different parts of the company. advertising messages are planned and implemented by the advertising department or an advertising agency. Personnel selling communications are developed by sales management. These companies have separated their communication tools and customers will not separate them. So mixed communications will result in blurred consumer brand perceptions

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integrated marketing communications (IMC)

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today more companies are adopting the concept of IMC. Under this concept the company carefully integrates its many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands. IMC calls for recognizing all touch points where the customer may encounter the company and its brands.

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brand contact

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each brand contact will deliver a message whether good, bad, or indifferent. the company's goal should be to deliver a consistent and positive message to each contact.

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Company goal with IMC

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Company goal should be to deliver a consistent and positive message to each contact.

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IMC (continued)

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IMC leads to a total marketing communications strategy aimed at building strong customer relationships by showing how the company and its products can help customers solve their problems. IMS ties together all of the company's messages and images. its television and print ads have the same message, look, and feel as its e-mail and personnel selling communications. Its public relations materials project the same image as its website or social network presence.

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Important to remember about IMC

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Often different media play unique roles in attracting, informing, and persuading consumers. These roles must be carefully coordinated under the overall marketing communications plan.

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A view of the communication process

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integrated marketing communications involves identifying the target audience and shaping a well-coordinated promotional program to obtain the desired audience response.

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Shortsighted approach is bad

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marketers are moving away from focusing on immediate awareness, image, or preference goals in the target market. This approach is too short sighted. Today marketers are moving toward viewing communications as managing the customer relationship over time.

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Developing programs for specific segments, niches, and individuals,

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Because customers differ greatly communications programs need to be developed for specific segments, niches, and even individuals, given the new interactive communications technologies, companies must ask both "how can we reach our customers" and "how can we let our customers reach us"

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How the communication touchpoint process should start

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it should start with an audit of all the potential touchpoint that target customers may have with the company and its brands. The marketer must assess what influence each communication experience will have at different stages of the buying process.

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effective communication

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marketers need to understand how communication works in order to understand how to communicate effectively. Communication involves the nine elements shown in the figure. sender, encoding, message, media, decoding, receiver, response, feedback, noise

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Two elements that are major parties in a communication

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sender and receiver

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two other major communication tools

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message and the media

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four other major communication functions

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encoding, decoding, response, feedback

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last element of communication functions system

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noise

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sender

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the party sending the message to another party

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encoding

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the process of putting thought into symbolic form

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message

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the set of symbols that the sender transmits

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media

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the communication channels through which the message moves from the sender to the receiver

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decoding

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the process by which the receiver assigns meaning to the symbols encoded by the sender. interpreting the words and messages it contains

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receiver

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the party receiving the message sent by another party

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response

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the reactions of the receiver after being exposed to the message

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feedback

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the part of the receiver's response communicated back to the sender

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noise

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the unplanned static or distortion during the communication process, which results in the receiver getting a different message than the one the sender sent

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what needs to happen for a message to be effective

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for a message to be effective, the sender's encoding process must mesh with the receiver's decoding process

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the best messages

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consist of words and other symbols that are familiar to the receiver

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Steps in developing Effective Communications

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to develop an effective integrated communications and promotion program marketers must do the following: identify the target audience, determine the communication objectives, design the message, select the communication channels, select the message source, and collect feedback.

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Identifying the target audience

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A marketing communicator starts with a clear target audience in mind. Audience could be potential buyers or current users, those who make the buying decision, or those who influence it. The target audience heavily effects the communicator's decision 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. In order to create effective communication a marketer must understand the target audience by creating a message that will be meaningful to them in a media they will understand. Managers need to understand their target markets before they can communicate with them.

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Determining the Communication Objective

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Once a target audience has been defined, the marketing communicator must decide what response is sought. In most cases the final response is purchase. Purchase is the long result though of a long process of consumer decision making. The marketing communicator needs to know where the target audience stands in relation to the product and to what state it needs to be moved.

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target audience stages

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the target audience may be in any of six buyer readiness states: awareness, knowledge, liking, preference, conviction, and purchase

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awareness

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first the communicator must be able to measure the target audience's awareness of the product or organization. Audience may be completely unaware of it, know only the name, or a few things about it. the awareness process can begin with simple messages repeating the name.

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knowledge

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the target audience might be aware of the company or product, but not know very much else. A simple message can quickly give the reader knowledge of restaurant location, size of steak (for example)

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liking

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if target audience members know the product, how do they feel about it? we can develop a range of preference such as scales that cover the degrees for liking

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preference

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a target audience might like the product but not prefer it over others. In this case the communicator must try to build consumer preference. the communicator promotes the product's quality, value, performance, and other features. The communicator can check on the campaign's success by measuring audience preferences after the campaign. Companies need to find areas where their product has better offerings than competing restaurants. It must then promote its advantages to build preference among possible customers.

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conviction

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a target audience might prefer a product, but not develop a conviction for buying the product. marketers have a responsibility to turn favorable attitudes into conviction because conviction is closely linked with purchase.

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purchase

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last step. some members of the target audience might have conviction but not quite get around to making the purchase. they may wait for more information or plan to act later. the communicator must lead these consumers to take the final step.

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Designing the Message

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having defined the desired audience response the communicator turns to developing an effective message. ideally the message should get attention, hold interest, arouse desire, and obtain action (this is a framework known as the AIDA model). few messages take the consumer all the way from awareness to purchase.

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AIDA framework for designing a message

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describes suggests the desirable qualities for a good message (message should get attention, hold interest, arouse desire, and obtain action

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message content

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the communicator must figure out an appeal or theme that will produce a desired response. there are three types of appeals: rational, emotional, moral

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rational appeal

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relates to the audiences self-interest, they show that the product will produce desired benefits.

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emotional appeal

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attempt to provoke emotions to motivate purchase. thee include fear, guilt, and shame appeals that entice people to do things that they should ex. (brush their teeth, buy new tires). they are widely used by resorts and hotels to stimulate cross-purchases

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message structure

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the communicator must also decide how to handle message structure issues. The first issue is whether to draw a conclusion or leave it to the audience. Research that is fairly recent indicates that in many cases the advertiser is bettie off asking questions and letting buyers come to their own conclusions

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message format

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the communicator also needs a strong format for the message. if the message is to be carried on tv or in person, all the elements plus body language must be planned.

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Selecting communication channels

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the communicator must now select channels of communication. the two broad types of communication are personal and non personal

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personal communication channels

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two or more people communicate directly with each other. they might communicate face to face, over the phone, the mail or email. some of these personal communication channels are controlled directly by the company.

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non personal communication channels

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non personnel communication channels are media that carry messages without personal contact or feedback. they include media, atmospheres, and events. major media consist of print media (newspapers, magazines, direct mail). non personal communication affects buyers directly. in addition though using mass media often affects buyers indirectly by causing more personal communication.

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mass communication

answer

it affects attitudes and behaviors through a two step flow of communication. in this process communications first flow from tv, magazines, and other mass media to opinion leaders and then from these opinion leaders to others. therefore, opinion leaders step between mass media and their audiences and carry messages to people who are less exposed to the media.

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selecting the message source

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the message's impact is also affected by how the audience views the sender. messages that are delivered by highly credible sources are persuasive. what factors go into making a source credible? the three factors most often found are expertise, trustworthiness, and likability.

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collecting feedback

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after sending the message, the communicator must research its effect on the target audience. this involves asking the target audience 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.

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setting the total promotion and budget mix

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after looking at the steps in planning and sending communications to a target audience, how does the company determine its promotion budget and the division among the major promotional tools to create the promotion mix. by what process does it blend the tools to create IMC?

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promotion mix

answer

the specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.

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media

answer

non personnel communication channels. this includes print media, broadcast media, and display media.

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integrated marketing communications

answer

the company carefully integrates its many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.

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steps in developing effective communications

answer

identify the target audience, determine the communication objective (the six buyer readiness stages are awareness, knowledge, liking, preference, conviction, and purchase), design a message (AIDA model) meaning the message should get attention, hold interest, arouse desire, and obtain action, message content (what to say), message structure (how to say it), message format (how to say it symbolically), select communication channels, message source, measure the results of communication

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message content: what to say, there are three types of appeals

answer

rational, emotional, moral

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rational appeals

answer

relate to audience self-interest, they show that the product will produce desired benefits

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emotional appeals

answer

attempt to provoke emotions that motivate purchase

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moral appeal

answer

directed to the audience's sense of what is right and proper

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personal communication channels

answer

they are used for products that are expensive and complex. it can create opinion leaders to influence others to buy.

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non personal communication channels

answer

include media (all print, broadcast, and display media), atmospheres, and events

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Setting the total promotion and budget mix

answer

setting the total promotional budget: affordable method, percentage of sales method, competitive parity method, objective and task method

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affordable method

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a budget is set based on what management thinks it can afford

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percentage of sales method

answer

companies set promotion method at a certain percentage of current or forecasted sales or a percentage of the sales price

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competitive parity method

answer

companies set their promotion budgets to match their competitors

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objective and task method

answer

companies develop their promotion budget by defining specific objectives, determining the tasks that must be formed to achieve these objectives, and estimating the costs of performing them

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Push versus pull strategy

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push strategy: the company directs its marketing activities at channel members to induce them to order, carry, and promote the product. Pull strategy is when the company directs its marketing activities toward final consumers to induce them to order, carry, and promote the product.

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Buyer readiness state

answer

promotional tools will vary in their effects at different stages of buyer readiness.

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nature of each promotional tool

answer

advertising, personal selling, sales promotion, public relations

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product life-cycle stage

answer

the effects of different promotion tools also vary with the stages of the product life style

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major decisions in advertising

answer

setting objectives, setting the advertisement budget, developing the advertising strategy, creating the advertising message, choosing among major media steps

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advertising

answer

defined as any paid form of non personal presentation and promotion of ideas, goods, or serviced by an identified sponsor

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