Product Mix Decisions

An organization with several product lines has a product mix. A

product mix (or product portfolio) consists of all the product lines
and items that a particular seller offers for sale.
 Product Mix Width

Product mix width refers to the number of different product lines

the company carries.
 Product Mix Length

Product mix refers to the total number of items/products a

company carries within its product lines.
 Product Mix Depth

Product line depth refers to the number of versions offered of

each product in the line.
 Consistency

Consistency of the product mix refers to how closely to how

closely related product lines are to each other in terms of end
use, production requirements, distribution channels, or some
other way.
 Chapter Fourteen

Communicating Customer Value:

Integrated Marketing
Communications Strategy
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 Communicating Customer Value:
Integrated Marketing Communications Strategy
Topic Outline

 Promotion Mix

 Integrated Marketing Communications

 A View of the Communications Process

 Steps in Developing Effective Communication

 Setting the Total Promotion Budget and Mix

 Socially Responsible Marketing Communication

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 The Promotion Mix
The promotion mix
 Promotion Mix is also sometimes called Communications Mix.

Promotion Mix
 Promotion Mix is the specific blend of advertising, public relations,
personal selling, sales promotion, and direct-marketing tools that
the company uses to communicate customer value and build customer
relationships.

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 The Promotion Mix
Advertising:
 Advertising is any paid form of non-personal
presentation and promotion of ideas, goods, or
services by an identified sponsor.
 Broadcast (Ads appeared on Televisions)
 Print
 Internet

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 The Promotion Mix
Sales Promotion:
 Sales promotion is the short-term incentives to
encouragethe
purchase or sale of a product or service.

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 The Promotion Mix
Sales Promotion Techniques:
 Coupons such as 50% off, save 100 on purchase of 500, buy one get one
free are frequently used to attract customers towards the products of your
brand.
 Premiums: These low-cost items were given to customers at a discount or
for free to build loyalty and fascinate customers.
 Incentives: Incentives builds the customer’s excitement. Thus, marketers
conduct contests, lucky draws and provide rebates to their loyal customers
to retain them with their product.
 Free Product Samples: Providing free samples of your new product with
other famous products.
 Sponsorship: This is what in which a company pays a fee to put their
name and logo on a physical site.
 Product Placement: We have seen in many realities shows a mug
having a logo of a particular drink name is kept in front of celebrities.
 Loyalty Programs: It is also known as buyer programs.
In these
programmes, companies award their customers for the purchases.
 The point of purchase (POP) is the area in which
marketers and
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retailers Education,
plan Inc. activities surrounding the consumer products.
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 The Promotion Mix
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.
 Press releases
 Sponsorships
 Special events

Personal Selling:
 Personal selling is the personal presentation by the firm’s sales
force for the purpose of making sales and building customer
relationships
 Sales presentations
 Trade shows

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 The Promotion Mix
Direct Marketing:
 Involves making direct connections with carefully targeted
individual consumers through the use of direct mail,
telephone, direct-response television, e-mail, and the
Internet to communicate with customers directly
 Telemarketing
 Telemarketing is the direct marketing of goods or
services to potential customers over the telephone or the Internet.

 Kiosks
 A kiosk refers to a small, temporary, stand-alone booth used in high-
traffic areas for marketing purposes.

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 The Promotion Mix
Integrated Marketing Communication:
 Integrated marketing communications is integration by the
the deliver a clear,
company and compelling
consistent, of its communication
message about the organization and its
channels
brands. to
 Use all and/or maximum Promotion Mix tools to reach customers.

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 Steps in Developing Effective Marketing
Communication

Identify the target audience

Determine the
communication
objectives

Design the message

Choose the media

Select the
message
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 Steps in Developing Effective Marketing
Communication
(1) Identifying the Target market
Identifying the Target Market:
 A marketing communication should start with a clear target audience
in mind.

(2) Determining the Communication

Objectives
Communication Objectives:
The following are the possible advertising objectives
 Inform
 Persuade
 Compare
 Remind

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 Steps in Developing Effective Marketing
Communication
(3) Design the Message
Design the Message:
 Ideally, the message should get
attention, hold interest, arouse
desire, and obtain action.

 This framework is known as the

AIDA Model

Message Content/ Types of Appeals

 Rational Appeals (Habib Cooking Oil)
 Emotional Appeals (Moltyform)
 Moral appeals (CSR activities of
brands)

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 Steps in Developing Effective Marketing Communication
(4) Choosing Media
Choosing Media:
 Personal communication
 Face to Face (Company’s Salespeople), Email, Phone, Internet Chat etc
 Word of Mouth
 BUZZ Marketing
 Involves cultivating opinion leaders and getting them to spread information
about a product or a service to others in their communities

 Nonpersonal communication
 Print Media
 Examples: Newspapers, magazines, direct mail
 Broadcast Media
 Examples: television, radio
 Display Media
 Examples: billboards, signs, posters, and
 Online Media
 Examples: email, company websites, and brand mobile and social media sites

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 Steps in Developing Effective Marketing Communication
(5) Message Source
Selecting the Message Source:
 The message’s impact on the target audience is affected by how
the audience views the communicator/endorser.
 Celebrities
 Athletes
 Entertainers

 Professionals
 Health Care Providers
 DR’s Toothpaste

 CEO

 Health Care Providers

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 Setting the Total Promotion
Budget and Mix
Setting the Total Promotion Budget

Methods of Promotion and Budget

 Affordable budget method

 Percentage-of-sales method
 Competitive-parity method
 Objective-and-task method

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 Setting the Total Promotion
Budget and Mix
Setting the Total Promotion Budget

Affordable budget method sets the budget at

an affordable level
 Ignores the effects of promotion on sales

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 Setting the Total Promotion
Budget and Mix
Setting the Total Promotion Budget
Percentage-of-sales method
Percentage-of-sales method sets the budget at a certain
percentage of current or forecasted sales or unit sales
price

 Easy to use and helps management think about the relationship

between promotion, selling price, and profit per unit.

 Wrongly views sales as the cause rather than the result of

promotion.

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 Setting the Total Promotion
Budget and Mix
Setting the Total Promotion Budget
Competitive-parity method
Competitive-parity method sets the budget to
match competitor outlays
 Represents industry standards
 Avoids promotion wars

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 Setting the Total Promotion
Budget and Mix
Setting the Total Promotion Budget
Objective-and-task method
Objective-and-task method sets the budget based on
what the firm wants to accomplish with promotion and
includes:
 Defining promotion objectives
 Determining tasks to achieve the objectives
 Estimating costs

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 Socially Responsible
Marketing
Communication
• 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
• 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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