Communication Strategy and

Promotion decision
 COMMUNICATION PROCESS

M essage
Sender E n c o d in g M e d ia D e c o d in g R e c e iv e r

N o is e

Feedback R esponse
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 STEPS IN DEVELOPING
EFFECTIVE COMMUNICATION
Identify Target Audience

Awareness
Determine Objective Knowledge
Purchase

Design Message

Personal
Select Channel
Non-Personal

Establish Budget

Decide On Media Mix

Measure Result

Manage Integrated
Marketing
Communication
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Marketing Communications Mix

• Advertising
– Any paid form of nonpersonal presentation
and promotion of ideas, goods, or services by
an identified sponsor.
• Sales Promotion
– Short-term incentives to encourage the
purchase or sale of a product or service.

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Marketing Communications Mix

• 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.
• Personal Selling
– Personal presentation by the firm’s sales force
for the purpose of making sales and building
customer relationships.
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Marketing Communication Mix

• Direct Marketing
– Direct connections with carefully targeted
individual consumers to both obtain an
immediate response and cultivate lasting
customer relationships—the use of telephone,
mail, fax, e-mail, the Internet, and other tools
to communicate directly with specific
consumers.

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Integrated Marketing Communication

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Advertising

• Can reach masses of geographically

dispersed buyers.
• Can repeat a message many times.
• Is impersonal, one-way communication.
• Can be very costly for some media types.

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Personal Selling

• Involves personal interaction between two

or more people.
• Allows relationship building.
• Most expensive promotion tool.

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Sales Promotion

• Wide assortment of tools.

• Attracts consumer attention.
• Offers strong incentives to buy.
• Invites and rewards quick consumer
response.
• Effects are short-lived.

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Public Relations

• Very believable.
• Reaches people who avoid salespeople
and ads.
• Can dramatize a company or product.
• Tends to be used as an afterthought.
• Planned use can be effective and
economical.

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Push vs. Pull Promotion Strategy

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Advertising
• Advertising has been used for centuries.
• U.S. advertisers spend more than $237 billion
each year; worldwide spending approaches $470
billion.
• Advertising is used by:
– Business firms
– Nonprofit organizations
– Professionals
– Social agencies
– Government

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Major Decisions in Advertising

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Setting Advertising Objectives
• An advertising objective is a specific
communication task to be accomplished
with a specific target audience during a
specific period of time.
• Classified by purpose:
– Inform
– Persuade
– Compare
– Remind

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Setting the Advertising Budget
Affordable
Based on What the Company Thinks it Can Afford

Percentage-of-Sales
Percentage-of-Sales
Based
Based on
on aa Percentage
Percentage of
of Current
Current or
or Forecasted
Forecasted Sales
Sales

Competitive-Parity
Competitive-Parity
Set
Set Budget
Budget to
to Match
Match Competitors
Competitors

Objective-and-Task
Objective-and-Task
Set
Set Objectives,
Objectives, Determine
Determine Tasks
Tasks to
to Achieve
Achieve Objectives,
Objectives,
Sum
Sum ofof Task
Task Costs
Costs Equals
Equals Budget
Budget
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Developing Advertising Strategy

• Consists of two major elements:

– Creating advertising messages

– Selecting advertising media

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The Message Strategy

Identify Customer Benefits

Develop Compelling Creative Concept

The “Big Idea”

Advertising Appeals Should Be

Meaningful, Believable, & Distinctive
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 Message Execution

Testimonial Slice
Slice of
of Life
Life
Testimonial Evidence
Evidence
or
or Endorsement
Endorsement
Lifestyle
Lifestyle
Scientific
Scientific Evidence
Evidence Typical

Technical
Approaches Fantasy
Fantasy
Technical Expertise
Expertise

Mood
Mood or
or Image
Image
Personality
Personality Symbol
Symbol

Musical
Musical

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Message Execution

• Choose a tone
• Use memorable, attention-getting words
• Choose correct format elements
– Illustration
– Headline
– Copy

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Selecting Advertising Media

• Reach
– Percentage of people exposed to ad
• Frequency
– Number of times a person is exposed to ad
• Media Impact
– The qualitative value of a message exposure
through a given medium

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Choosing Media Type

• Factors to consider:
– Media habits of target consumers
– Nature of the product
– Type of message
– Cost
– Media vehicles
• Specific media within each general media type

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Deciding on Media Timing

• Must decide how to schedule the

advertising over the course of a year
– Follow seasonal pattern
– Oppose seasonal pattern
– Same coverage all year
• Choose the pattern of the ads
– Continuity
– Pulsing

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Evaluating Advertising

Measure the communication effects of an ad.

“Copy Testing”

Measure the sales effects of an ad.

Is the ad increasing sales?

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Sales Promotion

• Sales promotion consists of short-term

incentives to encourage the purchase or
sales of a product or service.

• The idea behind sales promotion is to

generate immediate sales.

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 Sales Promotion

Today’s food
marketers are
using more and
more push
promotions,
including
consumer price
promotions.

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Rapid Growth of Sales Promotion

• Sales promotion can take the form of

consumer, business, trade, or sales force
promotions.
• Rapid growth in the industry has been
achieved because:
– Product managers are facing more pressure to
increase their current sales
– Companies face more competition
– Advertising efficiency has declined
– Consumers have become more deal oriented
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Sales Promotion Objectives
• Consumer Promotions: increase short-
term sales or help build long-term market
share.
• Trade Promotions: get retailers to:
– carry new items and more inventory
– advertise products
– give products more shelf space
– buy ahead
• Sales Force: getting more sales support.
• In general, sales promotion should build
long-term customer relationships.
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Consumer Sales Promotion Tools

Sample
Sample Offers
Offers aa trial
trial amount
amount of
of aa product
product

Savings
Savings when
when purchasing
purchasing specified
specified
Coupons
Coupons products
products
Cash
Cash Refunds
Refunds Refund
Refund of
of part
part of
of the
the purchase
purchase price
price by
by
“Rebates”
“Rebates” mail
mail
Price
Price Packs
Packs Reduced
Reduced prices
prices marked
marked on
on the
the label
label or
or
“Cents-Off
“Cents-Off Deals”
Deals” package
package by
by producer
producer
Goods
Goods offered
offered free
free or
or low
low cost
cost as
as an
an
Premiums
Premiums incentive
incentive to
to buy
buy aa product
product
Advertising
Advertising Articles
Articles imprinted
imprinted with
with an
an advertiser’s
advertiser’s
Specialties
Specialties name
name given
given as
as gifts
gifts
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 Consumer Sales Promotion Tools
Cash
Cash or
or other
other award
award offered
offered for
for regular
regular
Patronage
Patronage Rewards
Rewards use
use of
of aa product
product or
or service
service
Point-of-Purchase
Point-of-Purchase Displays
Displays or
or demonstrations
demonstrations atat the
the point
point
Promotions
Promotions of
of purchase
purchase or
or sale
sale
Consumers
Consumers submit
submit an
an entry
entry to
to be
be
Contest
Contest judged
judged by
by aa panel
panel
Consumers
Consumers submit
submit their
their names
names for
for aa
Sweepstakes
Sweepstakes drawing
drawing

Consumers
Consumers receive
receive something
something each
each
Games
Games time
time they
they buy
buy which
which may
may help
help them
them
win
win aa prize
prize
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Trade Promotion
Objectives Tools

Persuade resellers to Discounts

carry a brand
Allowances
Give a brand shelf
space Free Goods

Promote brand in Push Money

advertising
Specialty Advertising
Push brand to Items
customers

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Business Promotion
Objectives Tools

Generate business Conventions

leads
Trade shows
Stimulate purchases
Sales contests
Reward customers

Motivate salespeople

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Trade Show

More than 4,300 trade shows take place every year, drawing as many as
85 million people. 12-34
Developing the Sales Promotion Program

Decide on the Size of the Incentive

Set Conditions for Participation

Decide How to Promote and

Distribute the Promotion Program

Decide on the Length of the Program

Evaluate the Program

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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.

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Public Relations
Public relations is used to
promote products,
people, places, ideas,
activities, organizations,
and even nations. New
York City turned its image
around when its “I Love
New York!” campaign
took root, bringing
millions more tourists to
the city.

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Public Relations Functions

• Press relations or • Lobbying

press agency

• Product publicity • Investor relations

• Public affairs • Development

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Public Relations Tools

• News • Audiovisual
• Speeches materials
• Special events • Corporate identity
materials
• Buzz marketing
• Mobile marketing • Public service
activities
• Written materials
• Company Web site

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