marketing principles

BUS106 Marketing Principles Marketing Mix: Promotion and Integrated Marketing Communication Lecture 9

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This Topic’s Big Ideas

“Expenditure for digital advertising worldwide is forecast to reach

333.25 billion US dollars in 2019”

“Few goods and services can survive in the market space without

effective promotion”

Learning Objectives

1. Describe the communications process. 2. Discuss the concept of integrated

marketing communications. 3. Explain Push VS Pull Strategies. 4. Discuss the elements of the promotional

mix and the factors that affect it.

The communications process

Marketing Communications The process by which we exchange or share meanings through a common set of symbols:

Push VS Pull strategy

7

Integrated marketing communication

The method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer-focused

The elements of the promotional mix and the factors affecting it

A combination of promotion tools used to reach the target market and fulfil the organisation’s overall goals The promotional mix includes: 1. Personal Selling 2. Direct Marketing (direct-response marketing) 3. Advertising 4. Sales Promotion 5. Public Relations (PR) 6. Digital and Social Media Marketing

1. Personal Selling • Provides a detailed

explanation or demonstration of product

• Message can be varied to fit the needs of each prospective customer

• Can be directed to specific qualified prospects

• Costs can be controlled by adjusting sales force size

Kenny Brooks Salesman

Play Me: https://www.youtube.com/w atch?v=LAo-DmzdvK0

Advantages of personal selling

• Detailed explanation or demonstration of the product

• Message can be varied according to motivations of each customer

• Can be directed only to qualified prospects • Costs can be controlled by adjusting the size

of the sales force in one-person increments • Is considerably more effective than other

forms of promotion in obtaining a sale and a satisfied customer

2. Direct marketing Companies reaching out to consumers directly, eliminating middlemen and paid media.

E.g. Woolworths’ smartphone app allows customers to scan grocery items in their own pantry, save shopping lists and nominate their favourite store. It also organises the shopping list by aisle and layout and saves favourites so the user never runs out again.

This is different from direct selling (e.g. Tupperware) and direct response marketing.

3. Advertising

Old Spice uses irreverence and humour to appeal to consumers. Such personality has won the company a huge fan base.

Play Me: https://www.youtube.com/watch?v=owGyk VbfgUE

Advertising: the consumer, brand loyalty and product attributes

Creating an advertising campaign: The three main types

of advertising

Product Advertising

• Designed to promote the benefits of a specific good or service

Advertising Campaign Advertising campaign: • A series of related

advertisements focusing on a common theme, slogan and set of advertising appeals

Advertising objective: • Specific communication

task a campaign should accomplish for a specified target audience during a specified period

Medium: • Channel used to convey a

message to a target market

Steps in creating an advertising campaign

Advertising campaign decision process: make creative decisions

Buzz marketing: Word-of-mouth marketing through the internet using social media and other discussion forums Advertising appeal: Reason for a person to buy a product Unique selling proposition: Desirable, exclusive and believable advertising appeal selected as the theme for a campaign

Media Types

Cooperative advertising and infomercial

Cooperative Advertising: An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturers brand

Infomercials: Thirty-minute or longer advertisement that looks like a TV talk show than a sales pitch

Watch Me: https://www.youtube.com/watch?v =QwRISkyV_B8

The main factors influencing media mix decisions

Cost per contact of the target market Reach: Number of target consumers exposed to a given message Frequency: Number of times an individual is exposed to a given message Audience selectivity: Ability of an advertising medium to reach a precisely defined market

4. Sales Promotion

Types of consumers and sales promotion goals

Tools for Consumer Sales Promotion

• Coupon • Rebate • Premium • Loyalty marketing

programs • Frequent flyer

program • Contest • Sweepstake

• Sampling • Point of Purchase

Display

End of Financial Year Sale Watch Me: https://www.youtube.com/watch?v =ZY47zA0jurA

5. PR and its Roles

• Evaluates public attitudes • Identifies issues of public concern • Executes programs to gain public

acceptance

Can you guess the company behind this powerful message before it is revealed? Watch Me: https://www.youtube.com/watch?v=FLeFfJ1XuEk

Functions of Public Relations

• Press relations • Product publicity • Corporate

communication • Public affairs • Lobbying • Employee and

investor relations • Crisis management

Public Relation Tools

• New-product publicity • Product placement • Consumer education • Event sponsorship • Issue sponsorship • Internet websites

6. Social and Digital Marketing

• A sub-branch of traditional marketing that uses modern digital channels for the placement of products and for communicating with key stakeholders

• Digital marketers also need the ability to future-gaze or use foresight technologies and tools.

• Traditional marketing still has a role to play in an integrated communications strategy.

Digital media types

Viral marketing A marketing method that relies on people to personally pass on a marketing message or information, either by word-of-mouth or through other interpersonal communications

ALS Ice Bucket Challenge

Watch Me: https://www.youtube.com/watch?v =XS6ysDFTbLU

Digital marketing tools and media

Applications and widgets

Blogs

Product life cycle and the promotional mix

Next Week

Marketing Segmentation, Targeting and Positioning.