University of Doha for Science & Technology
Unit 10: Marketing Mix - Promotion (Chapter 15)
College of Business
www.udst.edu.qa
Recap of Chapters 13/14
Figure 13.1: A Cereal Manufacturer's Supply Chain
Key Components:
Producers: Farmers
Intermediaries: Processing facilities, Packaging, Distributors
Buyers: Grocery stores, Customers
Material and Information Flows:
Types of Material Flows: Grain, Packaged cereal, Packaging materials
Information Flows between members of the supply chain
Figure 13.2: Efficiency in Exchanges Provided by an Intermediary
Distribution Strategies:
Intensive, Selective, and Exclusive
Figure 13.3: Typical Marketing Channels for Consumer Products
Producers -> Agents or Brokers -> Wholesalers -> Retailers -> Consumers
Learning Objectives
By the end of this chapter, you should be able to:
Define integrated marketing communications.
Describe the steps of the communication process.
Recognize the definition and objectives of promotion.
Summarize the four variables of the promotion mix.
Explain the factors that determine a product’s promotion mix.
Describe how word-of-mouth communication affects promotion.
Discuss how product placement impacts promotion.
List major criticisms and defenses of promotion.
Promotion
Source: Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage.
15.1 - The Nature of Integrated Marketing Communications
Definition:
Integrated marketing communications (IMC) is the coordination of promotion and other marketing efforts for maximum informational and persuasive impact on customers.
A major goal of IMC is to send a consistent message to customers.
Benefits:
Improves the efficiency and effectiveness of promotion budgets.
Key Element:
Synchronization of promotion elements.
15-2 The Communication Process
Elements of the Communication Process
Communication:
Sharing of meaning through the transmission of information.
Source:
The person, group, or organization that has a meaning to share with a receiver or audience.
Receiver:
The individual, group, or organization that decodes a message.
Coding:
The process of converting meaning (“encoding”) into a series of signs or symbols.
Decoding:
Converting the encoded message into something understandable for the receiver.
Communications Channel:
The medium through which the message is transmitted.
Noise:
Anything that interferes with the process.
Feedback:
Mechanism for monitoring the understanding and effectiveness of the message by the receiver.
The Role and Objectives of Promotion
Definition of Promotion:
Communication aimed at building and maintaining relationships by informing and persuading one or more audiences.
Goals of Promotion:
Maximize promotional benefits through proper planning and coordination.
Base management of integrated marketing communications on customer information and feedback obtained from marketing information systems.
Address informal communication methods, including word-of-mouth effects.
Information Flows in Integrated Marketing Communications
Importance:
Understanding customer data and environmental factors is crucial for planning integrated marketing communications effectively.
Objective and Reasons for Promotion
Objectives of Promotion:
Create Awareness - Introduce new products or line extensions.
Encourage Product Trial - Utilize free samples, coupons, contests, etc.
Identify Prospects - Target likely potential buyers.
Stimulate Demand - Create or renew consumer interest.
Retain Loyal Customers - Foster long-term relationships with existing customers.
Support Resellers - Provide assistance to intermediaries.
Combat Competitors - Counteract rivals’ promotional activities.
Reduce Sales Fluctuations - Smooth out the peaks and troughs in sales due to seasonality or economic changes.
15.4 - The Promotion Mix
Definition:
A combination of promotional methods employed to promote a specific product.
Elements of the Promotion Mix:
Advertising: Paid nonpersonal communication using mass media, focusing on goods, services, ideas, etc.
Sales Promotion: Direct inducements offering added value or incentives.
Public Relations (PR): Ongoing communication efforts to maintain favorable relationships with stakeholders.
Personal Selling: Direct communication with potential customers to achieve a sale.
15.5 - Selecting Promotion Mix Elements
Factors Influencing Selection of Promotion Elements
Promotional Resources, Objectives, and Policies:
The budget directly impacts the promotion mix.
Characteristics of the Market:
Market size and demographics influence the promotional methods.
Distribution channels and geographic factors play significant roles.
Characteristics of the Product:
Different tactics apply to consumer goods versus business products.
Costs and Availability of Promotional Methods:
Desired Push or Pull Strategy:
Determines how products will be pushed through channels or pulled by consumer demand.
The Growing Importance of Word-of-Mouth Communications
Definition:
Personal informal exchanges of information among customers about products and brands.
Influence:
Word-of-mouth notably impacts purchase decisions, often more than traditional advertising.
Types of Word-of-Mouth:
Electronic Word-of-Mouth (eWOM): Communication through digital platforms like social media, blogs, etc.
Buzz Marketing: Event-driven marketing to generate excitement about a product.
Viral Marketing: Strategies that encourage users to share content, creating rapid spread of information.
15.7 - Product Placement
Definition:
Strategic positioning of products within media content to target specific audiences.
Effectiveness:
Successful placement can influence consumer behavior and promote healthy habits.
Cultural Viewpoints:
Mixed reception in regions like Europe, particularly in the UK due to ethical considerations.
15.8 – Ethical Issues: Criticisms and Defenses of Promotion
Common Issues in Promotion
Is promotion deceptive?
While laws reduce deceptive promotion, some ambiguity in language may mislead customers.
Does promotion increase prices?
Effective promotion can lower production costs and prices; lack of promotion may increase them.
Does promotion create needs?
Marketers enhance awareness but do not create intrinsic needs.
Encouraging materialism?
Promotion may influence materialism, similar to other forms of media.
Harmful products' advertisement considerations:
Ongoing debate regarding the advertising of unhealthy products.
15.8 Summary
IMC definition emphasizes coordinated communication efforts.
Understanding the communication process is critical for effective promotion.
Recognizing the various elements of the promotion mix and their characteristics is vital.
Importance of word-of-mouth communication and product placement in marketing strategy.
Transition to Unit 10: Advertising and Public Relations (Chapter 16)
Learning Objectives for Chapter 16
Describe advertising and its different types.
Summarize the eight major steps in developing an advertising campaign.
Identify who is responsible for developing advertising campaigns.
Define public relations.
Describe the different tools of public relations.
Analyze how public relations is used and evaluated.
16.1 - The Nature and Types of Advertising
Definition:
Advertising is paid nonpersonal communication about an organization and its products transmitted to a target audience via mass media.
Purpose:
To alter perceptions of products and enhance public awareness.
Types of Advertising:
Institutional Advertising: Promotes organizational image and ideas.
Product Advertising: Highlights features, uses, and benefits of products.
Native Advertising: Blends advertisements with content to provide a seamless experience.
16.2 - Developing an Advertising Campaign
Steps in Advertising Campaign Development
Identifying and Analyzing the Target Audience:
Understand demographics and psychographics of intended consumers.
Defining the Advertising Objectives:
Clear, measurable goals that provide direction for the campaign.
Creating the Advertising Platform:
Core message and selling points that resonate with audience needs.
Determining the Advertising Appropriation:
Budget considerations based on market size and competition.
Developing the Media Plan:
Selection of media channels for optimal reach within budget.
Creating the Advertising Message:
Content tailored to target audience, products, and objectives.
Executing the Campaign:
Coordination of all tasks and stakeholders involved in delivering the message.
Evaluating Advertising Effectiveness:
Pretesting and post-testing stages to assess impact and adjust strategy accordingly.
16.3 - Who Develops the Advertising Campaign?
Responsibility for Campaign Development:
Can be managed internally by firms’ advertising departments or externally via advertising agencies, depending on resources.
16.4 - Public Relations
Definition:
Communication efforts aimed at fostering positive relationships between an organization and its stakeholders, both internal and external.
Purpose & Uses:
Enhance brand image and facilitate communication about various entities like products and initiatives.
16.5 - Public Relations Tools
Tools for Effective Public Relations
Types of PR Tools:
Written materials, Corporate identity materials, and Speeches.
Event sponsorships and unique events to promote brand engagement.
Publicity:
Unpaid media coverage, includes news releases and press conferences that convey organizational messages.
16.6 - Evaluating Public Relations Effectiveness
Monitoring and Audits:
Environmental monitoring to perceive changes in public opinion, Public Relations Audits to assess the organizational image, and Social Audits for measuring social responsibility perceptions.
Handling Negative Publicity:
Importance of management in response to negative events to maintain or restore public image.
University of Doha for Science & Technology
Unit 10: Marketing Mix - Promotion (Chapter 15)
College of Business
www.udst.edu.qa
Recap of Chapters 13/14
Figure 13.1: A Cereal Manufacturer's Supply Chain
Main Parts:
Growers: Farmers
Middlemen: Processing factories, Packaging companies, Delivery services
Buyers: Grocery stores, Shoppers
Movement of Goods and Information:
Types of Goods Moving: Grains, Packaged cereal, Packing materials
Information Shared between everyone in the supply chain
Figure 13.2: How a Middleman Makes Buying and Selling More Efficient
Selling Plans:
Everywhere, Selected places, and Exclusive places
Figure 13.3: Usual Ways Consumer Products Travel to Buyers
Makers -> Agents or Brokers -> Wholesale Sellers -> Retail Stores -> Customers
Learning Goals
By the end of this chapter, you should be able to:
Explain what integrated marketing communications means.
Describe the steps in how messages are sent and received.
Understand what promotion is and what it aims to do.
List the four main parts of the promotion mix.
Explain what factors decide a product's promotion plan.
Discuss how people talking about products (word-of-mouth) affects promotion.
Explain how placing products in movies or TV shows helps promotion.
Name the main criticisms and good points of promotion.
Promotion
Source: Pride/Ferrell, Foundations of Marketing, 9th Edition. ©
2022 Cengage.
15.1 - What Integrated Marketing Communications Is About
Definition:
Integrated marketing communications (IMC) means putting together all promotion and other marketing efforts. The goal is to inform and convince customers as much as possible.
A main aim of IMC is to send a clear, consistent message to customers.
Benefits:
Makes promotion budgets work better and more effectively.
Key Part:
Making sure all parts of promotion work in sync.
15-2 How Communication Works
Parts of How We Communicate
Communication:
Sharing meaning by sending information.
Source:
The person, group, or company that has something to share with a listener or audience.
Receiver:
The person, group, or company that understands the message.
Coding:
Turning an idea or meaning into signs or symbols.
Decoding:
Changing the coded message into something the receiver can understand.
Communications Channel:
The way the message is sent (e.g., TV, radio, internet).
Noise:
Anything that gets in the way of the message being understood.
Feedback:
A way to check if the receiver understood the message and if it worked.
What Promotion Does and What It Aims For
Definition of Promotion:
Promotion is communication that helps build and keep good relationships by telling and convincing people.
Goals of Promotion:
Get the most out of promotion by planning and working together well.
Use customer information and feedback (from marketing systems) to manage integrated marketing communications.
Include informal ways people communicate, like word-of-mouth.
How Information Flows in Integrated Marketing Communications
Importance:
Knowing customer facts and outside factors is vital for good integrated marketing communications planning.
Why We Promote and Its Goals
Goals of Promotion:
Make People Aware - Introduce new products or new versions of existing products.
Encourage Trying the Product - Use free samples, coupons, games, etc.
Find Possible Buyers - Look for people who are likely to buy.
Boost Demand - Create or restart customer interest.
Keep Loyal Customers - Build lasting relationships with current buyers.
Help Resellers - Give support to the middlemen who sell the product.
Fight Competitors - Respond to what competitors are doing to promote their products.
Reduce Sales Swings - Smooth out sales highs and lows caused by seasons or economic changes.
15.4 - The Promotion Mix
Definition:
A mix of different ways to promote a specific product.
Parts of the Promotion Mix:
Advertising: Paid messages sent to many people through mass media (like TV, radio), focusing on goods, services, ideas, etc.
Sales Promotion: Direct offers that give extra value or incentives (like discounts or contests).
Public Relations (PR): Ongoing communication to keep good relationships with everyone involved with the company.
Personal Selling: Talking directly with potential customers to make a sale.
15.5 - Choosing Promotion Mix Parts
Things That Affect How We Choose Promotion Parts
Promotion Money, Goals, and Rules:
The budget directly affects what promotion mix can be used.
Market Features:
The size of the market and who the people are in it affect promotion methods.
How products are delivered and where people live are also important.
Product Features:
Different approaches are used for products sold to consumers versus products sold to businesses.
Costs and What's Available for Promotion Methods:
Wanted Push or Pull Plan:
This decides if products are pushed through sales channels or pulled by customer demand.
The Growing Importance of Word-of-Mouth Communication
Definition:
People informally sharing information with each other about products and brands.
Influence:
Word-of-mouth strongly affects buying decisions, often more than regular advertising.
Types of Word-of-Mouth:
Electronic Word-of-Mouth (eWOM): Communication through online places like social media, blogs, etc.
Buzz Marketing: Marketing events designed to create excitement about a product.
Viral Marketing: Plans that encourage users to share content, making information spread very quickly.
15.7 - Product Placement
Definition:
Smartly putting products into movies, TV shows, or other media to reach specific groups of people.
How Well It Works:
Good placement can change what customers do and encourage healthy habits.
Cultural Views:
Different reactions in places like Europe, especially the UK, due to questions about what's right.
15.8 – Right and Wrong Issues: Criticisms and Defenses of Promotion
Common Problems in Promotion
Is promotion misleading?
While laws reduce misleading promotion, some unclear language might still confuse customers.
Does promotion make prices higher?
Good promotion can lead to lower production costs and prices; not promoting might make them higher.
Does promotion create desires?
Marketers make people more aware but don't create their basic needs.
Encouraging a focus on possessions?
Promotion might affect how much people care about material things, similar to other media.
Thoughts on advertising harmful products:
Ongoing discussion about whether it's right to advertise unhealthy products.
15.8 Summary
IMC definition highlights working together in communication.
Understanding how communication happens is very important for good promotion.
Knowing the different parts of the promotion mix and what they do is key.
How word-of-mouth communication and product placement are important in marketing plans.
Moving to Unit 10: Advertising and Public Relations (Chapter 16)
Learning Goals for Chapter 16
Describe advertising and its different kinds.
Briefly explain the eight main steps to create an advertising campaign.
Identify who is in charge of making advertising campaigns.
Define public relations.
Describe the different tools used in public relations.
Figure out how public relations is used and how well it works.
16.1 - What Advertising Is and Its Types
Definition:
Advertising is paid, non-personal messages about a company and its products, sent to a target audience using mass media.
Purpose:
To change how people view products and make the public more aware.
Types of Advertising:
Company Advertising: Promotes the company's image and ideas.
Product Advertising: Shows off a product's features, uses, and benefits.
Native Advertising: Ads that look like regular content to fit in smoothly.
16.2 - Creating an Advertising Campaign
Steps in Developing an Advertising Campaign
Finding and Understanding the Target Audience:
Learn about the age, background, and interests of the people you want to reach.
Setting the Advertising Goals:
Clear, measurable aims that guide the campaign.
Building the Advertising Message Foundation:
The main idea and selling points that appeal to the audience's needs.
Deciding the Advertising Budget:
How much money to spend, based on market size and competition.
Making the Media Plan:
Choosing the best media channels (e.g., TV, internet) to reach the most people within the budget.
Writing the Advertising Message:
Content made specifically for the target audience, products, and goals.
Running the Campaign:
Managing all the tasks and people involved in sending out the message.
Checking How Well the Advertising Worked:
Testing before and after to see its effect and make changes if needed.
16.3 - Who Makes the Advertising Campaign?
Responsibility for Campaign Development:
Can be handled by the company's own advertising teams or by outside advertising agencies, depending on available money and help.
16.4 - Public Relations
Definition:
Communication efforts designed to build positive relationships between a company and everyone involved with it, both inside and outside the company.
Purpose & Uses:
Improve brand image and help share information about things like products and new projects.
16.5 - Public Relations Tools
Tools for Good Public Relations
Types of PR Tools:
Written materials, Company identity items (like logos), and Speeches.
Sponsoring events and holding special events to get people interested in the brand.
Publicity:
Free media coverage, including news releases and press conferences that share the company's messages.
16.6 - Checking How Well Public Relations Works
Tracking and Reviews:
Watching the environment to spot changes in public opinion, Public Relations Audits to check the company's image, and Social Audits to measure how socially responsible people think the company is.
Dealing with Bad Publicity:
How management responds to negative events is important to keep or fix the public image.
Conclusion
Smart communication plans are crucial in marketing.
It's very important how integrated marketing communications, the promotion mix, and public relations work together to make sure brand messages match customer expectations and market needs.
Conclusion
Effective communication strategies are pivotal in marketing.
Strong emphasis on the role of integrated marketing communications, promotion mix, and public relations in aligning brand messaging with consumer expectations and market demands.