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CHAPTER 8 - PROMOTION & COMMUNICATION POLICY - Coggle Diagram
CHAPTER 8 - PROMOTION & COMMUNICATION POLICY
The Promotion Mix (Marketing Communications Mix)
Definition: The specific blend of advertising, public relations, personal selling, sales promotion, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships.
Five Major Promotion Tools:
Advertising: Any paid form of non-personal 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 (e.g., coupons, contests, discounts).
Personal Selling: Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.
Public Relations (PR): Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling unfavorable rumors.
Direct and Digital Marketing: Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.
The Communication Process
Elements of Communication:
Sender & Receiver: The major parties in communication.
Message & Media: The major communication tools.
Encoding, Decoding, Response, and Feedback: The major communication functions.
Noise: The unplanned static or distortion during the communication process
Steps in Developing Effective Marketing Communication
Step 1: Identifying the Target Audience: Determining what will be said, how, when, where, and who will say it.
Step 2: Determining the Communication Objectives: Mapping the Buyer-Readiness Stages: Awareness → Knowledge → Liking → Preference → Conviction → Purchase.
Step 3: Designing a Message:
AIDA Model: Message should get Attention, hold Interest, arouse Desire, and obtain Action.
Message Content: Rational appeals (product quality), Emotional appeals (humor, fear, joy), or Moral appeals (social causes).
Step 4: Choosing Communication Channels:
Personal Channels: Word-of-mouth, buzz marketing.
Non-personal Channels: Print media, broadcast, online, events.
Step 5: Selecting the Message Source: Using credible sources (celebrities, professionals) to deliver the message.
Step 6: Collecting Feedback: Measuring the effect on the target audience (recall, attitude change, behavior).
Setting the Total Promotion Budget
Affordable Method: Budget set at the level management thinks the company can afford.
Percentage-of-Sales Method: Budget set at a certain percentage of current or forecasted sales.
Competitive-Parity Method: Budget set to match competitors' outlays.
Objective-and-Task Method: (Most logical) Budget based on specific promotion objectives and the tasks required to achieve them.
Integrated Marketing Communications (IMC)
The New Marketing Communications Model: Moving away from mass marketing to targeted marketing due to digital technology and fragmented media.
The Need for IMC: Companies must integrate their many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.
Socially Responsible Marketing Communication
Advertising and Sales Promotion: Avoid false or deceptive advertising; follow "fair competition" rules.
Personal Selling: Salespeople must follow the rules of "fair competition" and avoid deceptive practices (e.g., bribery or disparaging competitors).
Shaping the Overall Promotion Mix (Strategies)
Push Strategy: A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers.
Pull Strategy: A promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that "pulls" the product through the channel.
Integrating the Mix: The company must coordinate all tools so that they work together seamlessly.