Communication is the process of conveying a message to others and requires a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding.
For effective communication to occur, the sender and receiver must have a shared field of experience. The receiver's response provides feedback to the sender and helps determine whether decoding has occurred or noise has distorted the message.
The promotional elements consist of advertising, personal selling, sales promotion, public relations, and direct marketing. These tools vary according to whether they use mass selling or customized interaction.
In selecting the appropriate promotional mix, marketers must consider the target audience, the stage of the product's life cycle, and the channel of distribution.
The target for promotional programs can be the ultimate consumer, an intermediary, or both. Ultimate consumer programs rely more on advertising, whereas personal selling is more important in reaching business buyers and intermediaries.
The emphasis on the promotional tools varies with a product's life cycle. In introduction, awareness is important. During growth, creating brand preference is essential. Advertising is more important in the former stage and personal selling in the latter. Sales promotion helps maintain buyers in the maturity stage.
When a push strategy is used, personal selling and sales promotions directed to intermediaries play major roles. In a pull strategy, advertising and sales promotions directed to ultimate consumers are important.
Integrated marketing communications programs coordinate all promotional activities to provide a consistent message across all audiences.
The promotion decision process involves developing, executing, and evaluating the promotion program.
Setting promotion objectives is based on the hierarchy of effects: awareness, interest, evaluation, trial, and adoption.
Budgeting methods often used are percentage of sales, competitive parity, and the all-you-can-afford approaches. The best budgeting approach is based on the objectives set and tasks required.
Selecting, designing, and scheduling promotional elements requires experience and creativity because of the large number of possible combinations of the promotion mix.
Direct marketing offers consumers convenience, entertainment, privacy, time savings, low prices, and customer service. Sellers benefit from direct orders, lead generation, and traffic generation.
Global opportunities for direct marketing will increase as mail and telephone systems improve worldwide. Consumers' concerns about privacy will be a key issue for direct marketers in the future.
