SUMMARY CHAPTER 9
SUMMARY CHAPTER 9: MARKETING MIX STRATEGY.
INTRODUCING MAJOR PROMOTION TOOLS. Marketing Communication Mix (promotion mix) is the specific blend of promotion that the company uses to persuasively communicate customer value and build customer relationships.
Five major promotion tools are defined as follows ,firstly, advertising is any paid form of non -personal presentation and promotion of ideas, goods, or services by an identified sponsor. For example, broadcast, print, online, internet and outdoor. Secondly, sales promotion is the short term incentives to encourage the purchase or sale of a product or service. For example, discounts, coupons , displays and demonstrations. Furthermore, personel selling is the personal presentation/interaction by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships such as sales presentations, trade shows and incentive program. Then, public relations involves building good relations with the company’s various publics by obtaining favourable publicity, building up a good corporate image and handling for heading off unfavourable rumours, stories, and events. For example, press releases, sponsorships, special events and web pages.
DIRECT AND DIGITAL MARKETING is engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships such as direct mail, catalogues, online, social media, mobile marketing and kiosks.
Integrated Marketing Communications is new marketing communication model consumers are better informed, more communication and changing communication technology. The need for integrated marketing communication To deliver a clear, consistent and compelling messages about the organization and its brands.
There are 5 steps in developing effective communication. Firstly, identify the target audience. Marketers communicator starts with a clear target audience in mind. Audience such as individuals, groups, special publics, or general public. What will be said? How it will be said? When it will be said? Where it will be said? Who will say it? Second ly, determining the communication objectives. Marketers seek a purchase response that results from a consumer decision-making process that includes the stages of buyer readiness. The target audience may be in any of six buyer-readiness stages. awareness, knowledge, liking, preference, conviction and purchase. Thirdly, designing a message. Having defined the desired audience response , the communicator the turns to develop an effective message .AIDA Model such as get attention, hold interest, arouse desire, obtain action ( suggest the desirable qualities of a good message )When putting a message together, the marketing communicator must decide what to say(message content) and how to say it ( message structure and format ). Message Structure is Marketers must decide how to handle three message structure issues. is whether to draw a conclusion and leave it to the audience. Is whether to present the strongest arguments first and last. Is whether to present a one-sided argument (mentioning only the product’s strength) a two-sided argument (touting the product’s strengths while only admitting its shortcomings). Message Format is Marketing communicator needs a strong format for the message in a print ad, the communicator has to decide on the deadline, copy, illustration, and colors. To attract attention, advertiser can use novelty and contrast, eye catching pictures and headlines and distinctive format, message size and position and color, shape, and movement. Fourthly, choosing media. Personal communication involves two or more people communicating directly with each other, including face to face, phone, mail, E-mail and internet chat. Personal communication is effective because it allows personal addressing and feedback. Control of personal communication directly to company, independent experts and word-of-mouth. Lastly, selecting the message source. The message’s impact on the target audience is affected by how the audience views the communicator .Celebrities likes athletes and entertainers. Professionals likes health care providers. Collecting feedback Involves the communicator understanding the effect on the target audience by measuring behavior resulting from the behavior.
Advantages of advertising is Introduces a New Product in the Market it is stimulates the people to purchase the product. Increased sales, sales can be increased with additional expenditure on advertising with every increase in sale, selling expenses will decrease. Fights Competition is Continuous advertising is very essential in order to save the product from the clutches of the competitors. Enhances Good-Will to Introduces the manufacturer and his product to the people. Repeated advertising and better quality of products brings more reputation for the manufacturer and enhances goodwill for the concern. Elimination of Middlemen Establishing a direct link between the manufacturer and the consumer, thereby eliminating the marketing intermediaries. This increases the profits of the manufacturer and the consumer gets the products at lower prices. More Employment Opportunities is Advertising provides and creates more employment opportunities for many talented people like painters, photographers, singers, cartoonists, musicians, models and people working in different advertising agencies.
Disadvantages of advertising is Increase cost of goods and services Advertising is an indirect cost which is added into distribution expenses and can impact the selling price Security Risk The rise of ‘adware’: malicious software that plants risky ads in your computer. Unfulfilled Desire is Advertising influences the mind of public, create the desire and taste for the new products that are not actually necessities of life and that most cannot afford. Misdirection of Purchasing Power is Influential people give added value to necessary product and can increase price of the product, in fact in reality the product can be bought at lower price. Dangerous Distraction is Billboards, posters, and electronic moving pictures are placed around important intersections, which distract drivers and pedestrians. Harmful to children is Children cannot make informed choice or cannot differentiate between real life and life in the world of advertising.
Definition sales promotion consists of short-term incentives to encourage the purchase or sales a product or service. Advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now. Major sales promotion tools is consumer promotions , trade promotions and business promotions.
Reasons for the growth of sales promotion is Increasing competition – difficult to compete on quality; eg Levis . Customers have become more price sensitive is people would seek for lower price. Products have become more standardized is not much of differentiated products. Advertising has become more expensive and less effective incur more costs to advertise products; SP more cost-effective. Excess of stocks excessive inventories to be cleared.
Advantages sales promotion is Introducing new product provide information in the purchase process, Increased Profit and Create brand awareness.
Disadvantages sales promotion is Can be costly, Short term effects only, Quality image may become tarnished and Can create price sensitive.Nature of personel selling is Part of Promotion Mix is The major elements in the promotional mix are the company’s advertising , sales promotion, and personal selling efforts. Individual Personal Communication is Personal selling is the individual and personal communication of information. Flexible Tool is Sales person can see their customer’s reaction to a particular sales approach and make adjustments. Focused on customer is It consider the needs, desires and buying problems of customer. Alive Interaction is Each party observe the other’s need .Long – Run Relationship is It establishes a selling relationship and also deep personal friendship .It keeps customer’s best interests at heart. Response is It makes the buyer feel that he is listened to, and his needs are considered. Persuasion is a sales person in personal selling tries to persuade the prospect so that he can take a decision to acquire the product which the salesperson is talking about. Human Element Into Marketing is It brings human elements into marketing transactions and increases the customer’s confidence in the supplier. Creative is The salesperson try to create needs, makes the customer aware of these need and try to persuade them to buy the product. The salesman “does not sell , but he creates in the other man urge to buy “Service Element is Personal selling is not getting rid of a thing or cheating the customers. It is necessarily an act of assisting the customers to buy wisely.
Public relations is used to promote products, people, places, ideas, activities, organizations and even nations. PR departments functions are Press relations or press agency, Product publicity, Public affairs, Lobbying, , Investor relations, Development. PR tools such as News, Special events, Written materials, Audio-visual, Corporate identity materials, Public service activities.
Advantages of public relations is influence, Audiences are more likely to trust messages coming from an objectives source rather than paid-for advertising messages. It is one of the most credible forms of promotion and can be persuasive. Then, reach is A good story can be picked up by several news outlets, exposing your massage to a large audience. Furthermore, cost-effectiveness is PR can be an economical way to reach a large audience in comparison to paid for advertising media placement, particularly if its is done in house.
Disadvantages of public relations is no direct control is Unlike advertising, you can’t exactly control how your business is portrayed by the media, when your message will appear and will appear and where it will be placed. Furthermore, no quaranteed results is You may spend time and money on writing a press release, getting suitable photography and speaking with journalists, but you can never guarantee your story will be published. This can be result in a poor return on investment. Lastly, evaluation is It can be difficult to measure the effectiveness of Public Relations activities. You can count media mentions and published stories, but it harder to determine the impact this this has on your audience.
Definition is direct marketing is Connecting directly with carefully targeted segments or individual consumers, often on a one-to-one, interactive basis. Definition of online or digital marketing is Efforts to market products and services and build customer relationships over the internet.
Advantages of direct and digital marketing firstly to buyers is Convenient, easy and private – customers don’t have to go through stored to find products. Gives buyers ready access to a wealth of products – offer an almost unlimited selection to customers almost anywhere in the world. Give buyers access to a wealth comparative information about companies, products, and competitors is good catalogs and online sites. Immediate and interactive is buyers can interact with sellers by phone or on websites. Furthermore, to sellers is Build customer relationships is interact with customers through phone or online. Offers a low-cost, efficient, speedy alternatives to reach their markets is Offer greater flexibility is marketers can make on going adjustments to prices and products. Provide opportunities for building close, personalized, interactive customer relationships. Gives access to buyers that they could not reach through other channels.
Disadvantages of direct marketing, firstly internet fraud is One of internet fraud ( PISHING ) is a type of identity theft that uses deceptive emails and fraudulent online sites to fool users into divulging their personal data. Secondly, consumers worry about online security is fear of unscrupulous snoopers will eavesdrop on their online transactions, picking up personal information or intercepting credit and debit vard number. Furthermore, the access by vulnerable or unauthorized groups is young users are logging onto social networks such as Formspring, tweeting their location to the Web, and making friends out of strangers such as on games sites.
DIGITAL MARKETING CAMPAIGNS ARE EASY TO COPY. A marketers must remain vigilant when marketing online to make sure that some effort are not being used against a marketers by their competitors. Some marketers online can trade out a logo for another one to copy a success marketers logo.