24108 Lecture Notes - Lecture 8: Product Placement, Integrated Marketing Communications, Personal Selling
“The marketing objective that makes potential customers, partners and
society aware of and attracted to the business’ offerings.”
Marketing communication – term for promotion that refers to
communicating a message to the marketplace.
Sender of message -> noise -> receiver
Objectives of promotion:
• Support marketing objectives
• Demonstrate features/benefits
• Encourage product trial; create demand
• Reinforce product/brand and encourage repeat sales
• Increase support offered by retailers
• Increase awareness and goodwill for organisation
• Build relo between customer and brand
Cause-related marketing
• Philanthropic activities tied to purchase of a product
Integrated marketing communications (IMC)
• Coordination of promotional efforts to maximise communication
effect
Promotion mix
• Combination of methods to promote a product or idea
o Advertising
o Public relations
o Sales promotion
o Personal selling
Advertising:
• Transmission of paid messages about org, brand or product
• Worth >12b per year in Oz
• Benefits
o Reaches many people @ low cost pp
• Limitation
o Difficult to measure effectiveness
Public relations:
• Communications aimed at creating and maintaining relationships
between the marketing organisation and its stakeholders
• Effective PR messages are timely, engaging, accurate and in the
public interest
• Benefits:
o Credibility, resulting word-of-mouth, low or no-cost,
effectively combat negative perceptions or events
Sales promotion:
• Offers extra value to resellers, sales people and customers in a
bid to increase sales
• Used irregularly to smooth demand
• Rewards the sale of company’s products
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• Limitations:
o Can lose effectiveness if overused, easily copied, public
becoming increasingly cynical about whether they offer
real value.
Personal selling:
• Personal communication efforts that seek to persuade consumers
to buy products
• Expensive, high involvement or industrial products favour
personal selling
• Benefits:
o Can be specifically tailored to individuals, so has greater
influence than advertising, sales promotion and PR
strategies
• Limitations:
o Expensive, limited reach, labour intensive and time
consuming
Integrating promotion mix elements:
• Marketing organisations have different promotional needs and
finite financial and other resources, so must choose between
options in the promotional mix.
• Large budget = multiple strategies
• Small budget = fewer, simpler strategies
• Changes over time
Push and Pull Policies:
• Push policy
o Product is promoted to the next institution to ‘push’ goods
through the marketing channel – b2b
• Pull policy
o Product is promoted to consumers to create demand to
‘pull’ goods through the marketing channel – b2c
Advertising:
• Competitive advertising
o Using adv to promote the features and benefits of a
product relative to competing products
• Comparative advertising
o Directly comparing against a competing product
Creating an advertising campaign:
1. Understand the market environment
2. Know the target market (audience)
3. Set specific objectives
4. Create the message strategy
5. Allocate resources
6. Select media
7. Produce the advertisement
8. Place the advertisement
9. Evaluate the campaign
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