MOUNT KENYA UNIVERSITY

SCHOOL OF BUSINESS AND ECONOMICS

COURSE CODE: BBM 3208

COURSE UNIT: MARKETING COMMUNICATION

NAME:

ADM NO:
 1. Using relevant examples, explain the major promotion budgeting approaches that
are used in any marketing communication programme. (10 Marks)
“Marketing Communication is defined as all the messages and media you deploy to
communicate with the market” (David, 2017). The major promotion budgeting approaches that
are used in any marketing communication programme comprise of the following ways:

(i) Advertising- This comprises of any paid form of presenting ideas, goods, or services
by an identified sponsor. Advertising may target individuals according to their profile
characteristics or behavior; examples are the weekly ads mailed by supermarkets to
local residents or online banner ads targeted to individuals based on the sites they visit
or their Internet search terms.
(ii) Personal selling- Personal selling uses people to develop relationships with target
audiences for the purpose of selling products and services. Personal selling puts an
emphasis on face-to-face interaction, understanding the customer’s needs, and
demonstrating how the product or service provides value.
(iii) Sales promotion- Sales promotions are marketing activities that aim to temporarily
boost sales of a product or service by adding to the basic value offered, such as “buy
one get one free” offers to consumers or “buy twelve cases and get a 10 percent
discount” to wholesalers, retailers, or distributors.
(iv) Direct marketing-This method aims to sell products or services directly to consumers
rather than going through retailer. Catalogs, telemarketing, mailed brochures, or
promotional materials and television home shopping channels are all common
traditional direct marketing tools. Email and mobile marketing are two next-generation
direct marketing channels.
(v) Digital marketing- Digital marketing covers a lot of ground, from Web sites to
search-engine, content, and social media marketing. Digital marketing tools and
techniques evolve rapidly with technological advances, but this umbrella term covers
all of the ways in which digital technologies are used to market and sell organizations,
products, services, ideas, and experiences.
2. Discuss the pros and cons of using an outside advertising agency for an
organization’s promotional needs. (10 Marks)
 The pros of using an outside advertising agency for an organization’s promotional
needs include the following:

(i) Expertise- Many businesses turn to advertising agencies for their expertise
and specialized knowledge. Small businesses, in particular, may not have
their own marketing department, and so may need the depth of expertise an
agency can provide. Agencies will usually have access to researchers, media
buyers, artists, film makers and other experts who can provide advertising
know-how that small businesses cannot afford to hire for themselves.
(ii) Saving Time- Using an advertising agency can save a business valuable time.
Hiring an advertising agency means that you and your staff do not need to
spend time developing an advertising campaign. This is especially important
if you do not have staff that are dedicated to advertising work. Hiring an
agency will free your staff to do what they have been trained for.
(iii) Saving Money- Although it may seem as though hiring an advertising agency
will be expensive, you need to consider that an agency can save you a lot of
money on ad placement. Most agencies are given discounts by publishers, and
radio and TV stations, so they can get cheaper rates than someone dealing
directly.
(iv) Brand Development- Even for experienced businesses, developing a brand
can be a complex undertaking. Advertising agencies can help this process by
developing logos and advertising that will develop brand awareness. They can
also provide you with research that will allow you to target the most effective
market.

Cons of using an outside advertising agency for an organization’s promotional

(i) Advertising agency commissions are likely to cost more than creating promotional
campaigns in house. The firm may not have the money to employ an advertising
agency especially if the business is relatively new, with high startup costs
 (ii) The promotional campaigns and creative ideas suggested by the advertising agency
may not reflect the firm's vision and values.

(iii) The advertising agency may not be as enthusiastic as you are about your product.

(iv) The advertising agency may also have your competitor as their client, especially if the
agency specialize in promoting the type of products you sell.

(v) Client Confidentiality: staff from the advertising agency may inadvertently provide
ideas about your campaign to others and reduce promotional impact.

3. Push and pull marketing strategies comprise the two options available to marketers
interested in getting their products into the hands of customers. Discuss the two
strategies showing their differences. (10marks)

Push marketing takes the product to the consumer, whereas pull marketing brings the consumer
to the product.

Push marketing is a promotional strategy where businesses attempt to take their products to the
customers. The term push stems from the idea that marketers are attempting to push their
products at consumers. Common sales tactics include trying to sell merchandise directly to
customers via company showrooms and negotiating with retailers to sell their products for
them, or set up point-of-sale displays. Often, these retailers will receive special sales incentives
in exchange for this increased visibility.

Businesses often use push marketing when launching a new product, or when trying to stand
out in a niche or crowded market. Example of push marketing can be seen in department stores
that sell fragrance lines. The manufacturing brand of the fragrance will often offer sales
incentives to the department stores for pushing its products onto customers. This tactic can be
especially beneficial for new brands that aren't well-established or for new lines within a given
brand that need additional promotion. After all, for many consumers, being introduced to the
fragrance at the store is their first experience with the product, and they wouldn't know to ask
for it if they didn't know it existed.
Pull marketing takes the opposite approach. The goal of pull marketing is to get the customers
to come to you, hence the term pull, where marketers are attempting to pull customers in.
Common sales tactics used for pull marketing include mass media promotions, word-of-mouth
referrals and advertised sales promotions. From a business perspective, pull marketing attempts
to create brand loyalty and keep customers coming back, whereas push marketing is more
concerned with short-term sales.

Businesses generally will use pull marketing when the customer knows what he is looking for
or what problem he needs to solve, but needs pulling towards your solution as opposed to the
solution offered by your competitors. Example: You can often recognize pull marketing
campaigns by the amount of advertising that's being used. Pull marketing requires lots of
advertising dollars to be spent on making brand and products a household name. One example
includes the marketing of children's toys. In the first stage, the company advertises the product.
Next, the children and parents see the advertisement and want to purchase the toy. As demand
increases, retailers begin scrambling trying to stock the product in their stores. All the while,
the company has successfully pulled customers to them.

References

Hansen, F., & Hansen, M. H. (1972). CENTER FOR MARKETING

Kitchen, P. J., & Burgmann, I. (2010). Integrated marketing communication. Wiley

Varey, R. J. (2002). Marketing communication: Principles and practice. Psychology