The promotion mix is the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.

Integrated Marketing Communications

The Promotional Mix

Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

• Broadcast

• Print

• Online

• Mobile

• Outdoor

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https://www.youtube.com/watch?v=Qdb_E7OCu7I
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The Promotional Mix

Sales promotion is a short-term incentive to encourage the purchase or sale of a product or service.

• Discounts

• Coupons

• Displays

• Demonstrations

The Promotional Mix

Personal selling is the personal interaction by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships.

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.

The Promotional Mix

Direct and digital marketing involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.

• Direct mail • Catalogs • Online and social media • Mobile marketing

Integrated Marketing Communications

The New Marketing Communications Model

• Consumers are changing.

• Marketing strategies are changing.

• Advances in digital technology

As marketers adopt richer but more fragmented media and promotion mixes to reach their diverse markets, they risk creating a communications hodgepodge for consumers

A View of the Communication Process

Steps in Developing Effective Communication

Step 1. Identifying the Target Audience

Step 2. Determining the Communication Objectives Buyer Readiness Stages

Purchase

Conviction

Preference

Liking

Knowledge

Awareness

Steps in Developing Effective Communication

Step 3. Designing a Message

Attention Interest Desire

Message Content

Rational Appeals

Emotional Appeals

Moral Appeals

Message Structure

Draw Conclusions

Argument Type

Argument Order

Message Format

Headline, Copy, Color,

Words, & Sounds,

Body Language

Action

AIDA MODEL

Steps in Developing Effective Marketing Communication

Rational appeal relates to the audience’s self-interest.

Emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase.

Moral appeal is directed to an audience’s sense of what is right and proper.

Message Content – “What to Say”

Message structure and format is “how to say it.”

https://www.youtube.com/watch?v=SfAxUpeVhCg

https://www.youtube.com/watch?v=SfAxUpeVhCg
Nonpersonal Communication

Channels

Steps in Developing Effective Communication

Step 4. Choosing Media

Personal Communication

Channels

Step 5. Selecting the Message Source

Step 6. Collecting Feedback

Steps in Developing Effective Marketing Communication

Choosing Communication Channels and Media

Personal communication involves two or more people communicating directly with each other.

• Face to face, Phone, Mail or e-mail, Texting or Internet chat

Nonpersonal communication channels are media that carry messages without personal contact or feedback, including major media, atmospheres, and events. Major media include: • print media (newspapers, magazines, direct mail), • broadcast media (television, radio), • display media (billboards, signs, posters), • online media (e-mail and company web sites).

Steps in Developing Effective Marketing Communication

Choosing Communication Channels and Media

Opinion leaders are people whose opinions are sought by others.

Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities.

Steps in Developing Effective Marketing Communication

Selecting the Message Source

The message’s impact depends on how the target audience views the communicator.

• Celebrities

▪ Athletes

▪ Entertainers

• Professionals

▪ Health care providers

Steps in Developing Effective Marketing Communication

Collecting Feedback

Collecting feedback involves the communicator understanding the effect on the target audience by measuring behavior resulting from the content.

Setting the Total Promotion Budget and Mix

Setting the Promotional Budget

• The affordable method sets the promotion budget at the level management thinks the company can afford.

• The percentage-of-sales method sets the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.

• The competitive-parity method sets the promotion budget to match competitors’ outlays.

• The objective-and-task method develops the promotion budget by specific promotion objectives and the costs of tasks needed to achieve these objectives.

Shaping the Overall Promotional Mix

The concept of integrated marketing communications suggests that the company must blend the promotion tools carefully into a coordinated promotion mix.

Companies within the same industry differ greatly in the design of their promotion mixes.

E.g. cosmetics maker Mary Kay spends most of its promotion funds on personal selling and direct marketing, whereas competitor CoverGirl spends heavily on consumer advertising.

Shaping the Overall Promotional Mix

The Nature of Each Promotional Tool

Advertising can reach masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times.

Personal selling is the most effective method at certain stages of the buying process, particularly in building buyers’ preferences, convictions, actions, and developing customer relationships.

Shaping the Overall Promotional Mix

The Nature of Each Promotional Tool

Sales promotion includes coupons, contests, cents-off deals, and premiums that attract consumer attention and offer strong incentives to purchase.

Public relations is a very believable form of promotion that includes news stories, features, sponsorships, and events.

Direct and digital marketing is an immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telephone marketing, online, mobile, and social media.

Shaping the Overall Promotional Mix

Integrating The Promotional Mix

The company must take steps to see that each promotion mix element is smoothly integrated.

The various promotion elements should work together to carry the firm’s unique brand messages and selling points.

Socially Responsible Marketing Communication

Advertising and Sales Promotion

• Communicate openly and honestly with consumers and resellers

• Avoid deceptive or false advertising

• Avoid bait-and-switch advertising

• Conform to all federal, state, and local regulations

Socially Responsible Marketing Communication

Personal Selling

• Follow rules of “fair competition”

• Do not offer bribes

• Do not attempt to obtain competitors’ trade secrets

• Do not disparage competitors or their products

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