Promotion Planning

Purposes of Marketing Communications

• not only informs, but is also used to differentiate the seller’s
products/services

• the marketing communications strategy of a firm must be

coordinated and linked with concepts such as target
segments, positioning, differentiation, and image

• Informs, persuades and reminds and is part of the marketing

mix

• Includes all the means by which a company communicates

directly with potential customers.

• Attempts to influence feelings, beliefs, or behaviour.

 IMC – Integrated Marketing
Communication
IMC- A management concept that is designed to
make all aspects of marketing communication such
as advertising, sales promotion, public relations,
and direct marketing work together as a unified
force, rather than permitting each to work in
isolation.

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 IMC
• It ensures that all forms of communications and messages are
carefully linked together.

• All of these communications tools work better if they work

together in harmony rather than in isolation.

• Their sum is greater than their parts - providing they speak

consistently with one voice all the time, every time.

• It can create competitive advantage, boost sales and profits,

while saving money, time and stress.
 Marketing Communication Methods

• Personal selling: The direct presentation of a

product to a prospective customer by a
representative of the selling organization.
• Advertising: A paid, impersonal mass
communication with a clearly-identified
sponsor.
• Sales promotion: Demand-stimulating activity
designed to supplement advertising and
facilitate personal selling.
 Marketing Communication Methods

• Public relations: A planned communication

effort by an organization to contribute to
generally favourable attitudes and opinions
toward an organization and its products.
• Publicity: A special form of public relations that
involves news stories about an organization or
its products.
• Basic Communication Elements

• A message
• A source of the message
• A communication channel
• A receiver

Communication process components:

• Encoding
• Decoding
• Response
• Feedback
• Noise
The Traditional Communication Process
Developing Effective Communication
 Determining the Communications Budget
• Identifying Target Audience

• Determining Communications Objectives

– Buyer Readiness Stages
• Designing Message
– Message Content
– Message Structure
– Message Format
• Media Selection
– personal and nonpersonal communications channels
• Message Source

• Feedback Collection
 More Budgeting Methods
• Follow the Competition:
– Match what your competitors spend.
– Can use industry averages.
– Benchmark against one key competitor.
– But does it fit with your strategies?

• Task or Objective:
– Best approach: What do you want to achieve?
– Identify tasks/objectives, then cost them out.
– Sometimes called buildup method.
Promotion Varies Over the Life Cycle
Common communication platform
Choosing Among Major Media Types
 Advertising objectives
• To cause Awareness.
• To Persuade.
• To create Image.
• To Remind.
Advertising Contributions
• Information and persuasion
• Introduction of new brands and extensions
• Building and maintaining brand loyalty/brand equity
• Creating an image/meaning
• Building brand loyalty in the trade channel
• Brand loyalty leads to inelasticity of demand: less price sensitivity
to demand
• Economies of scale: higher volume results in lower unit cost
 Developing and managing an
advertisement programme
• The 5 Ms of advertising
Advertising objectives at different
stages in hierarchy of effects
New Media
• Advertorials
• Infomercials

Total Number of Exposures (E)

E=RxF
where R = reach, F = frequency