MKTG1001 Lecture Notes - Lecture 10: Integrated Marketing Communications, Brand Equity, Sales Promotion
18 Jul 2018
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MKTG1001 WEEK 10
Promotion:
the function is to communicate to the target market, why your product is better, unique etc. and is
a major expense. The accountability is big, goal is to increase market share or gain profits etc.
Become cheaper with the age of digital marketing.
Communication system:
Sender -> encode (crafting of the message) -> message media -> decode (how consumers interpret
message) -> targeted segment
Trends in promotion scene:
• Journalism dying therefore media changing
• Declining television viewing, however tv shows are still watched but across other platforms
(cross screening)
• Rising media costs
• Media spend on internet is rising, and falling on all the others
Integrated marketing communications/ promotion mix:
Plan of communication, integrates different tools and media as consumers consume multiple types
of media. One consistent message.
Promotion mix:
• Advertising: non personal communication, paid for and persuasive by nature. Brand is explicit
in ad. Good for brand building.
• Sales promotion: short term incentives-> 2 for one, buy one get one free. Purpose is incentive
to get consumer into action now.
• PR: influencing public opinion and good will for organisation. Spread through social media
now. Brand sponsors charity etc. creates good image. Not just aimed at consumers but general
community and stakeholders. Anything which creates publicity. Good to build credibility.
• Personal selling: face to face selling from a sales person. Not as common for consumer goods.
• Direct/ digital marketing: non personal and carefully targeted to individuals, immediate.
Designing IMC:
• Consider the market
• Firm budget
• Appropriate push and pull strategies. Push strategy is pushing product to middle man/supplier.
Pull strategy is building brand equity, targeting consumer directly.
Promotion mix tools advantages and disadvantages:
Advertising:
Advantages:
• Broad geographic reach
• Low cost per exposure
Document Summary
Promotion: the function is to communicate to the target market, why your product is better, unique etc. and is a major expense. The accountability is big, goal is to increase market share or gain profits etc. Become cheaper with the age of digital marketing. Sender -> encode (crafting of the message) -> message media -> decode (how consumers interpret message) -> targeted segment. Journalism dying therefore media changing: declining television viewing, however tv shows are still watched but across other platforms (cross screening, rising media costs, media spend on internet is rising, and falling on all the others. Plan of communication, integrates different tools and media as consumers consume multiple types of media. Promotion mix: advertising: non personal communication, paid for and persuasive by nature. Sales promotion: short term incentives-> 2 for one, buy one get one free. Purpose is incentive to get consumer into action now: pr: influencing public opinion and good will for organisation.
