Promotion Mix/ Marketing Communication Mix

Promotion Mix/
Marketing
Communication Mix
Macro-model of Communication
Process
15 - 2
Micro Models of consumer process
15 - 3
Hierarchy of effects model
 Awareness - If most of the target audience is not aware of the object that is brand
name, the communicator’s task is to build awareness.
 Knowledge. The target audience might have brand awareness but not know much
about it.
 Liking. Given target members aware about brand name and also have knowledge
about the brand. But key question is - how do they feel about it?
 Preference. The target audience might like the product but not favor or prefer it to
others. The communicator must then try to build consumer preference by comparing
quality, value, performance, and other features with likely competitors.
 Conviction. A target audience might prefer a particular product or brand but not
develop a conviction about buying or availing it. The communicator’s job is to build
conviction and intent
 Purchase. Finally, some members of the target audience might develop conviction
but not quite get around to making the purchase. The communicator must lead these
consumers to take the final step, perhaps by offering the product at a low price, or
letting them try it out.
15 - 4
To increase the chances for a successful
marketing communications campaign,
marketers must try to increase the
likelihood that each step. This can be
only possible if careful planning is done
before committing any valuable
resources to marketing communication.
15 - 5
Marketing communication mix
 1. Advertising - Any paid form of non- personal presentation and
promotion of ideas, goods, or services by an identified sponsor via any
form media like print, broadcast, network, electronic and display.
 2. Sales promotion - A array of short-term inducements to encourage
trial or purchase of a product or service is known as sales promotion.
Sales promotion can be consumer promotions, trade (targeted at channel
intermediaries) promotions, and business and sales force promotions.
 3. Events and experiences – Marketer sponsored activities and
programs designed to create daily or special brand-related interactions
with consumer, through sports, arts, entertainment, and cause events as
well as less formal activities.
 4. Public relations and publicity—A variety of activities directed
internally to employees of the company or externally to consumers,
other firms, the government, and media to promote or protect a
company’s image or its individual product communications.
15 - 6
Marketing communication mix
 5. Direct marketing—Use of direct mediums like mail, telephone,
fax, e-mail, or Internet to communicate directly with or solicit
response or dialogue from specific customers and prospects.
 6. Interactive marketing - Online activities and programs (through
social media websites, company website) designed to connect as
well as engage customers or prospects with objectives to raise
awareness, improve image, or elicit sales of products and services.
 7. Word-of-mouth marketing—People-to-people oral, written, or
electronic communications that narrate about the merits or
experiences of purchasing or using products or services.
 8. Personal selling—Face-to-face interaction with one or more
prospective purchasers with company sales force, other employees
for the purpose of making presentations, answering questions, and
procuring orders.
15 - 7
15 - 8
Need of Integrated Marketing
Communications (IMC)
The fragmentation of mass markets

into a multiple segments and, each
needs different efforts;
The proliferation of new types of
media; and
The growing sophistication of
consumers.
15 - 9
Need of IMC
The wide range of communication tools,
messages, and audiences makes it essential
that firms move toward integrated marketing
communications.
Companies must embrace a “360-degree
view” of consumers to fully understand how
the different ways that communications can
affect consumer behavior in their daily lives.
15 - 10
Integrated Marketing Communications (IMC)
Integrated Marketing Communications
The concept under which a company carefully
integrates and coordinates its many
communications channels to deliver a clear,
consistent, and compelling message about the
organization and its products.
IMC is a planning process designed to assure that
all brand contacts received by a customer or
prospect for a product, service, or organization are
relevant to that person and consistent over time.
IMC implementation often requires the hiring of a
MarCom manager.
15 - 11
IMC crates
synergy through
integration
15 - 12
FACTORS CONSIDERED WHILE
SETTING PROMOTION MIX
Type of product market

Buyer readiness stage
Product life cycle stage
15 - 13
Type of product market
Communications-mix allocations diverge
between consumer and business markets.
Consumer marketers tend to spend comparatively
more on sales promotion and advertising while
business marketers tend to expend comparatively
more on personal selling.
In general, personal selling is highly used with
complex, expensive, and risky goods and in
markets with fewer and larger sellers.
15 - 14
Buyer readiness stage
15 - 15
Product Life cycle stage
 In the introduction stage of the product life cycle,
advertising, events and experiences, and publicity have the
highest cost-effectiveness, followed by personal selling as
marketer’s objectives are to gain distribution coverage,
increase awareness. For inducing trial marketer can also use
sales promotion and direct marketing.
 In the growth stage, demand can gain momentum through
word of mouth and interactive marketing.
 Advertising, events and experiences, and personal selling
all become more vital in the maturity stage.
 In the decline stage, sales promotion continues to be strong
tool while spend on other communication tools are reduced.
15 - 16
Marketing Planning &
Control
MARKETING PLAN
COMPONENTS
Marketing Control
Management is all about
Planning
Executing
Controlling
Any strategy is as good as its
implementation
Marketing Implementation
is the process that converts

plans into assignments, which
after successful achievement
accomplishes the plan’s stated
objectives
The marketing control process
TYPES OF CONTROL
Type of control Whose Why ? Approaches /

responsibility tools
Annual Plan control Top management Whether planned Sales analysis,

and middle results has been market share
management achieved analysis,
financial analysis
Profitability Control Marketing controller Where the company is Profitability by
making and loosing the product, by
money consumer, by
channel, etc
Efficiency control Line and staff Evaluate and improve Efficiency of
management spending efficiency sales force,
Marketing controller promotion,
advertising
Strategic Control Top management. Whether company is Marketing
Marketing Auditor pursuing best excellence
opportunities with review,
respect to markets, marketing audit,
products, channels, CSR review
consumers, etc.
Marketing Control
Budget (salesforce, MarCom, Efficiency (Productivity)
MR, sales admin)  Sales force efficiency
 Measurement of results against  No. of calls per salesperson per day
monthly/quarterly budgets (goals)  Average revenue per sales call
 Reasons for deviations (variances)  Average cost per call
 Remedial steps to be taken to close  Average call time per call

 No. of new customers per period
the gaps between performance and
goals  Sales force cost per unit sales
 Review performance in the next  Advertising efficiency
month/quarter and assess results  Before and after measure of attitude towards the
product
Profitability  No. of enquiries per ad
 Product rationalisation  Cost per enquiry
 Customer rationalisation  Sales promotion efficiency
 Costing Analysis  % sales sold on ‘promotion’
 80 : 20 rule  Display cost per sales rupee
 % coupons redeemed
Strategic  No. of enquiries resulting from a demonstration
 Distribution efficiency (Time taken to execute orders,
% order executed, service levels)
Benchmarks for Efficiency
against last year % growths
against budget % variances
against targets % market share
Financial Analysis
RONW - Net Profits/Net Worth
Profit margin X Asset Turnover
Increase margins by increase in sales or reduction in
costs or both
Increase asset turnover by increasing sales or
reducing the assets (inventories, debtors) against
a given level of sales
MARKETING AUDIT – DEFINED
A comprehensive , systematic,
independent and periodic review of a
company’s business environment,
objectives, strategies and activities
with an idea to identify areas of
weaknesses and recommend a plan
of action to improve on such areas.
MARKETING AUDIT
Comprehensive (COVERS ALL MAJOR MARKETING
ACTIVIES)
Systematic (ORDERLY EXAMINATION)
Independent (SELF AUDIT, AUDIT FROM ACROSS, AUDIT
FROM ABOVE, COMPANY AUDITING OFFICE, COMPANY
TASK FORCE AUDIT, OUTSIDER AUDIT)
Periodic (BENEFITIAL IN BOTH GOOD AND BAD TIMES)
COMPONENTS OF MARKETING AUDIT
 MACRO ENVIRONMENT  MARKETING ORGANIZATION AUDIT
 Demographic  Formal structure
 Economic  Functional Efficiency
 Environmental  Interface efficiency
 Technological
 MARKETING SYSTEM AUDIT
 Political
 Marketing information system
 Socio cultural
 Marketing Planning system
 TASK (INDUSTRY)
 Marketing control system
ENVIRONMENT
 New product development system
 Markets
 Customers  MARKETING PRODUCTIVITY AUDIT
 Competitors  Profitability analysis
 Distributors, dealers, retailers  Cost effective analysis
 Suppliers  MARKETING FUNCTIONS AUDIT
 Marketing firms, facilitators  Product
 Publics  Price
 MARKETING STRATEGY AUDIT  Distribution
 Business Mission  Marketing communication
 Marketing objectives and goals
 Sales force
 Strategy

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Promotion Mix/

The fragmentation of mass markets

Type of product market

is the process that converts

Type of control Whose Why ? Approaches /

Annual Plan control Top management Whether planned Sales analysis,

monthly/quarterly budgets (goals)  Average revenue per sales call

 Reasons for deviations (variances)  Average cost per call

 Remedial steps to be taken to close  Average call time per call

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