MARKETING MANAGEMENT - PROMOTION DECISION
Introduction of Marketing Communication
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Marketing communications is one of the four major elements of the company’s marketing mix.
Introduction
Marketing communications is one of the four major elements of the company’s marketing mix. Marketers must know how to use advertising, sales promotion, direct marketing, public relations, and personal selling to communicate the product’s existence and value to the target customers.
The communication process itself consists of nine elements: sender, receiver,encoding,decoding,message,media,response,feedback,andnoise. Marketers must know how to get through to the target audience in the face of the audience’s tendencies toward selective attention, distortion, and recall.
Developing the promotion program involves eight steps. The communicator must first identify the target audience and its characteristics, including the image it carries of the product. Next the communicator has to define the communication objective, whether it is to create awareness, knowledge, liking, preference, conviction, or purchase.
A message must be designed containing an effective content, structure, format, and source. Then communication channels both personal and non-personal must be selected. Next, the total promotion budget must be established. Four common methods are the affordable method, the percentage-of-sales method, the competitive-parity method, and the objective-and-task method.
The promotion budget should be divided among the main promotional tools, as affected by such factors as push-versus-pull strategy, buyer readiness stage, product life-cycle stage and company market rank. The marketer should then monitor to see how much of the market becomes aware of the product, tries it, and is satisfied in the process. Finally, all of the communications effort must be managed and coordinated for consistency, good timing, and cost effectiveness.
The objective and importance of marketing communication
The objective and importance of marketing communications are
• Behaviour modification: Promotion seeks to modify behavior and thoughts and reinforces the existing behavior. The company hopes to create favourable image for itself and also to motivate customers of the company’s goods and services.
• Objective to inform: All promotional communications are designed to inform the largest market about the firm’s product or services. Informative promotion is more prevalent in the early stages of life cycle of a product or services. It is necessary to increase the primary demand. The first thing which the customer needs is the information about the product itself, its features, etc. it leads the consumer to make a more intelligent purchase decision.
• Objective to persuade: It designed to stimulate purchase. Sometimes firm wants to create appositive image in the mind of the customer for the long term gain rather than the immediate purchase. Persuading to customer to purchase more is the main objective when product reaches the growth stage of the life cycle because at that time both the consumer formation objective and consumer retention objective have to be taken simultaneously.
• Reminder objective: It is used to keep the product brand name in the public’s mind and is used in the maturity stage of the product life cycle. This type of promotion is used to refresh the memory of the target customers assuming that they know the product.
• Specific Objective: The goal of promotion is to change the pattern of demand for a product by behaviour modification – informing, persuading and reminding. In economic terms, the basic purpose of promotion is to change the location and shape of the demand curve. It means to shift the demand curve upward or even to make a change temporarily.
The five major modes of communications are advertising, sales promotion, public relations, personal selling, and direct marketing.
It is a paid form of non-personal mass communication by an identified sponsor. The mass media include print media, audio-visual media, direct mail, bill boards etc. Sponsors may be non-profit organization, a political candidate, a company or an individual. Advertising is used when sponsors want to communicate with a number of people who cannot be reached economically and effectively through personal means.
Personal selling refers to the face-t-face contact between a seller’s representative and those people with whom the seller wants to communicate. Non-profit organizations; political candidates, firms and individuals use personal selling to communicate with the public
Sales promotion includes activities that seek to directly induce or indirectly serve as incentives to motivate a desired response on the part of the target customers, company sales people and middle men, and their sales force. These activities add value to the product. In sales promotion, activities like discount, gifts, contests, premium, displays and coupons are included.
It is a planned effort by an organization to influence the attitudes and opinions of a specific group by developing a long-term relationship. The target audience may be customers, stock holders, government agencies or special interest groups.
Direct Marketing is a form of advertising that allows businesses and non-profits organizations to communicate straight to the customer, with advertising techniques that can include, cell phone text messaging,
Marketing communications is one of the four major elements of the company’s marketing mix. Marketers must know how to use advertising, sales promotion, direct marketing, public relations, and personal selling to communicate the product’s existence and value to the target customers.
The communication process itself consists of nine elements: sender, receiver,encoding,decoding,message,media,response,feedback,andnoise. Marketers must know how to get through to the target audience in the face of the audience’s tendencies toward selective attention, distortion, and recall.
Developing the promotion program involves eight steps. The communicator must first identify the target audience and its characteristics, including the image it carries of the product. Next the communicator has to define the communication objective, whether it is to create awareness, knowledge, liking, preference, conviction, or purchase.
A message must be designed containing an effective content, structure, format, and source. Then communication channels both personal and non-personal must be selected. Next, the total promotion budget must be established. Four common methods are the affordable method, the percentage-of-sales method, the competitive-parity method, and the objective-and-task method.
The promotion budget should be divided among the main promotional tools, as affected by such factors as push-versus-pull strategy, buyer readiness stage, product life-cycle stage and company market rank. The marketer should then monitor to see how much of the market becomes aware of the product, tries it, and is satisfied in the process. Finally, all of the communications effort must be managed and coordinated for consistency, good timing, and cost effectiveness.
The objective and importance of marketing communication
The objective and importance of marketing communications are
• Behaviour modification: Promotion seeks to modify behavior and thoughts and reinforces the existing behavior. The company hopes to create favourable image for itself and also to motivate customers of the company’s goods and services.
• Objective to inform: All promotional communications are designed to inform the largest market about the firm’s product or services. Informative promotion is more prevalent in the early stages of life cycle of a product or services. It is necessary to increase the primary demand. The first thing which the customer needs is the information about the product itself, its features, etc. it leads the consumer to make a more intelligent purchase decision.
• Objective to persuade: It designed to stimulate purchase. Sometimes firm wants to create appositive image in the mind of the customer for the long term gain rather than the immediate purchase. Persuading to customer to purchase more is the main objective when product reaches the growth stage of the life cycle because at that time both the consumer formation objective and consumer retention objective have to be taken simultaneously.
• Reminder objective: It is used to keep the product brand name in the public’s mind and is used in the maturity stage of the product life cycle. This type of promotion is used to refresh the memory of the target customers assuming that they know the product.
• Specific Objective: The goal of promotion is to change the pattern of demand for a product by behaviour modification – informing, persuading and reminding. In economic terms, the basic purpose of promotion is to change the location and shape of the demand curve. It means to shift the demand curve upward or even to make a change temporarily.
The five major modes of communications are advertising, sales promotion, public relations, personal selling, and direct marketing.
Advertising
It is a paid form of non-personal mass communication by an identified sponsor. The mass media include print media, audio-visual media, direct mail, bill boards etc. Sponsors may be non-profit organization, a political candidate, a company or an individual. Advertising is used when sponsors want to communicate with a number of people who cannot be reached economically and effectively through personal means.
Personal selling
Personal selling refers to the face-t-face contact between a seller’s representative and those people with whom the seller wants to communicate. Non-profit organizations; political candidates, firms and individuals use personal selling to communicate with the public
Sales promotion
Sales promotion includes activities that seek to directly induce or indirectly serve as incentives to motivate a desired response on the part of the target customers, company sales people and middle men, and their sales force. These activities add value to the product. In sales promotion, activities like discount, gifts, contests, premium, displays and coupons are included.
Public Relations
It is a planned effort by an organization to influence the attitudes and opinions of a specific group by developing a long-term relationship. The target audience may be customers, stock holders, government agencies or special interest groups.
Direct Marketing
Direct Marketing is a form of advertising that allows businesses and non-profits organizations to communicate straight to the customer, with advertising techniques that can include, cell phone text messaging,
Tags : MARKETING MANAGEMENT - PROMOTION DECISION
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