1. Managing The Marketing Mix
Lecture 6:
Promotion and Marketing Communications (2)
Dr. Martin J. Liu
Lecturer in Marketing

2. In the Previous Lecture…
Overview
Promotional Mix
Factors Affecting
Promotional Mix
Integrated
Marketing
Communication
Summary

3. Objectives for Today
Overview • The types, main characteristics and measurement of public
relations
Promotional Mix
Factors Affecting • The differences between P.R. and advertising
Promotional Mix
• Marketing communications in the new media
Integrated
Marketing
Communication • Factors affecting promotional mix
Summary • Integrated marketing communication

4. Public Relations
Overview • Highly credible
• Many forms: news stories, news features, events and
Promotional Mix sponsorships, etc.
• Reaches many prospects missed via other forms of promotion
Factors Affecting • Dramatizes company or benefits
Promotional Mix • Often the most underused element in the promotional mix
Integrated Definition
Marketing
Communication “is the planned and sustained effort to establish and maintain
goodwill and mutual understanding between an organization and
its publics”
Summary
(British Institute of Public Relations)
Measurement
Number of people who had the opportunity to read, watch or hear
the message, based on readership or audience figures

5. Publicity
Overview • Main characteristics:
– high credibility
Promotional Mix – low costs
– lose control of publication
Factors Affecting – lose control of content
Promotional Mix – lose control of timing
Integrated
Marketing
Communication
Summary

6. Public Relations
Overview
Promotional Mix
Factors Affecting Public Relations
Public Relations
Promotional Mix
Communication Mode
Communication Mode Usually indirect, non-personal
Usually indirect, non-personal
Integrated Communication Control Moderate to low
Marketing Communication Control Moderate to low
Communication Feedback Amount
Feedback Amount Little
Little
Summary
Feedback Speed
Feedback Speed Delayed
Delayed
Message Flow Direction
Message Flow Direction One-way
One-way
Message Content Control
Message Content Control No
No
Sponsor Identification
Sponsor Identification Low
Low
Reaching Large Audience
Reaching Large Audience Usually fast
Usually fast
Message Flexibility
Message Flexibility Usually no direct control
Usually no direct control

7. Sponsorship
Overview Definition:
Promotional Mix
A business relationship between a provider, event or
organisation which offers in return some rights and
Factors Affecting
association that may be used for commercial advantage.
Promotional Mix
(Sleight)
Integrated • Types of sponsorship:
Marketing – Event sponsorship
Communication • Educational
• Cultural
Summary • Awards
• Books
• Sports
– Broadcast sponsorship
• form of advertising whereby a company sponsors a radio or TV
show
• whereby a whole program is sponsored and credit is given to the
sponsor.

8. Sponsorship
Overview • Benefits of sponsorship:
Promotional Mix
• Gain publicity
Factors Affecting – bears a mark of approval which is good P.R. in itself
Promotional Mix
• Create entertainment opportunities
Integrated
Marketing
Communication • Improve community relations
– maintains cultural organisations such as theatres and
Summary orchestras
– provides educational opportunities through bursaries and
fellowships
• Foster favourable brand and company associations
• Create promotional opportunities

9. Sponsorship
Overview • Selection criteria:
– Communications objectives
Promotional Mix – Target market
– Risk
Factors Affecting – Promotional opportunities
Promotional Mix – Past record
– Cost
Integrated
Marketing
Communication
Summary

10. Product Placement
Overview Product placement:
Promotional Mix
• Is a promotional tactic used by marketers in which a real
Factors Affecting commercial product is used in fictional or non-fictional
Promotional Mix media, and the presence of the product is a result of an
economic exchange to augment advertising campaigns
Integrated through the publicising of company and product names
Marketing which often get wide coverage by the media
Communication
Different manifestations:
Summary
• Product usage negotiated rather than paid for
• Advertisement placement
• Controversy
• Creation of false products

11. Product Placement
Overview
Promotional Mix
Factors Affecting
Promotional Mix
Integrated
Marketing
Communication
Summary

12. Effectiveness of PR in New Media
Overview
Promotional Mix
Second life 8%
0%
Factors Affecting Social Networks 10%
36%
14%
Promotional Mix RSS Feeds 11%
14%
Wiki 27%
Mobile 15%
13%
Integrated Online ads 17%
33%
Marketing Blogs 6%
17%
Communication Podcasts 21%
13%
Viral video 23%
32%
Video on demand 26%
20%
Summary SEO-Paid 41%
55%
SEO-Organic 41%
50%
Email Mktng 44%
45%
Webinars 54%
27%
Own website 59%
51%
0% 10% 20% 30% 40% 50% 60% 70%
B-to-B B-to-C

13. Public Relations
Overview How P.R. differs from
Advertising
Promotional Mix
- Audience
Factors Affecting - Purpose
Promotional Mix - Appeal
- Media
Integrated - Presentation
Marketing - Costs
Communication
Summary

14. Communication Decisions
Overview • Which element of communications mix to use?
– Advertising, Public Relation, Personnel Selling, Sales
Promotional Mix Promotion, and Direct Marketing
Factors Affecting
Promotional Mix • What communication channel to use?
– Press, radio, TV, posters, cinema, exhibition, sponsorship, e-
Integrated communications, viral marketing, other
Marketing
Communication • What communication types to use?
– National daily, regional daily, magazines, blog, other
Summary
• What titles to use
– Financial times, times, telegraph, guardian, sun etc

15. Communication vs.
Purchase Decisions
Overview Prepurchase
Advertising is most valuable
Promotional Mix Informs potential customers
about the existence of the
Factors Affecting product and the seller.
Promotional Mix
Purchase
Integrated Importance of personal
Marketing selling is highest
Communication Sales promotion can
encourage demand.
Summary
Postpurchase
Personal contact after the
sale leads to buyer
satisfaction.
Advertising and personal
selling help reduce
postpurchase anxiety.

16. Communication vs.
Purchase Decisions
Overview Why can humor be a
particularly effective
Promotional Mix
appeal?
Factors Affecting
Promotional Mix
Integrated
Marketing
Communication
Summary

17. Factors Affecting Promotional Mix
Overview
Promotional Mix
Factors Affecting
Promotional Mix
Integrated
Marketing
Communication
Summary

18. Integrated Marketing
Communications
Overview • Main considerations:
Promotional Mix
 Resource availability & the cost of promotional tools
Factors Affecting
Promotional Mix  Market size & concentration
Integrated  Customer information needs
Marketing
Communication  Product characteristics
Summary  Push vs. pull strategies

19. PLC and Promotional Activities
Overview
Promotional Mix
Introduction Growth Maturity Decline
Factors Affecting
Promotional Mix
Integrated
Marketing
Communication
Summary
To Inform To Persuade To Remind
•Advertising •Reminder •Limited
•Event Sponsoring Advertising budget
•Direct Marketing •Direct Mail spent on
•Umbrella Reminders promoting
Branding Campaign •Sales Promotions

20. Push vs. Pull Strategy
Overview
Push Strategy
Promotional Mix
Manufacturer Wholesaler Retailer Consumer
Factors Affecting Promotes to promotes to Promotes to Buys from
Promotional Mix Wholesaler Retailer Consumer Retailer
Integrated
Marketing
Communication
Summary Pull Strategy
Consumer Retailer Wholesaler
Manufacturer
Demands Demands Demands
Promotes to
Product from Product from Product from
Customer
Retailer Wholesaler Manufacturer

21. Implementing IMC
Overview
Promotional Mix Marketing Strategy
Factors Affecting
Promotional Mix Positioning Statement
Integrated
Marketing Communications Decisions
Communication 1. Identify Target Audience
2. Set Communications Objectives
Summary 3. Create Message(s)
4. Select Promotional mix
5.Set Promotional Budget
Execute IMC Strategy
Evaluate IMC Strategy

22. Importance of IMC
Overview  It is a core component of the dialogue between customers
and the organisation
Promotional Mix
Factors Affecting  It raises awareness, communicates the value of the
Promotional Mix offering and stimulates purchase
Integrated  It is an important means of creating intangible value
Marketing (brand personality)
Communication
Summary  Supports and adds synergy to the overall business and
marketing strategy

23. Summary
Overview • Communication is at the heart of marketing
Promotional Mix
• All mix elements communicate but promotion is most active
Factors Affecting form
Promotional Mix
• Range of available Tools = advertising, sales promotion,
Integrated PR, direct marketing, personal selling.
Marketing
Communication
• Choice influenced by context
Summary
• Changing marketing environment move towards integrated
marketing communications.