Ch 14 Part 1 | Principles of Marketing | Communicating Customer Value | Kotler

Summary

In this chapter, we explore the promotion mix, a blend of advertising, public relations, personal selling, sales promotions, and direct marketing used to communicate customer value and build relationships. The script explains each component's role in maintaining customer communication and promoting products. Advertising is paid and non-personal, public relations builds a good reputation, personal selling involves direct interaction with customers, sales promotions offer incentives, and direct marketing targets consumers directly through various channels.

Takeaways

• 📢 Promotion Mix refers to the blend of advertising, public relations, personal selling, direct marketing, and sometimes sales promotion tools used by a company to communicate customer value.
• 🎯 Advertising is a paid, non-personal presentation of ideas, goods, or services by an identifiable sponsor, such as TV ads or online banners.
• 💡 Sales Promotions are short-term incentives designed to encourage the purchase or sales of a product or service, like discounts, coupons, or product demonstrations.
• 🤝 Public Relations involves building good relations with various publics to obtain favorable publicity and handle or prevent unfavorable stories, often through press releases or sponsorships.
• 👤 Personal Selling is direct interaction by a company's sales force to present products or services, build customer relationships, and make sales.
• 💌 Direct Marketing is about making direct connections with targeted consumers to obtain immediate responses and build lasting relationships, using methods like direct mail, email, or telemarketing.
• 📈 The purpose of the promotion mix is to maintain customer relationships, remind customers about the company and its products, and persuade them to make purchases.
• 🔍 Integrated Marketing Communication is a concept that emphasizes the importance of a unified and consistent message across all communication channels.
• 💼 The communication process in marketing includes steps like setting the total promotion budget, determining the mix, and ensuring socially responsible marketing communication.
• 📊 Setting the total promotion budget or mix involves strategic decisions on how much to spend on each element of the promotion mix to achieve marketing objectives.
• 🌐 The script also touches on the importance of digital marketing tools like the internet and how they've become integral parts of the promotion mix.

Q & A

What is the main focus of Chapter 14?

Chapter 14 focuses on 'Communicating Customer Value Integrated Marketing Communication Strategy', discussing the promotion mix and how it is used to persuasively communicate customer value and build customer relationships.

What is a promotion mix?

A promotion mix is a specific blend of advertising, public relations, personal selling, and direct marketing tools that a company uses to communicate customer value and build customer relationships.

What are the key components of the promotion mix?

The key components of the promotion mix are advertising, sales promotions, public relations, personal selling, and direct marketing.

How does advertising contribute to the promotion mix?

Advertising is a paid, non-personal presentation of ideas, goods, or services by an identifiable sponsor. It helps maintain customer relationships by reminding customers about the brand and its offerings.

What are sales promotions and how do they encourage purchases?

Sales promotions are short-term incentives designed to encourage the purchase or sales of a product or service. They can include discounts, coupons, displays, and demonstrations.

How does public relations help in building a company's image?

Public relations involves building good relations with the company's various publics by obtaining favorable publicity, handling or heading off unfavorable rumors, stories, and events.

What is personal selling and how does it differ from other forms of promotion?

Personal selling involves personal presentations by the firm's sales force to provide descriptions about products or services, make sales, and build customer relationships. It differs from other forms of promotion as it involves direct, personal interaction with potential customers.

What is direct marketing and how does it connect with consumers?

Direct marketing involves making direct connections with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships. It uses direct mail, telephone, direct response television, email, and the internet to communicate directly with specific consumers.

Can you provide an example of a sales promotion mentioned in the script?

An example of a sales promotion mentioned in the script is receiving a coupon that allows you to buy one item and get another one at half price.

What role do trade shows play in personal selling?

Trade shows provide a platform for sales representatives to present products or services, make sales, and build customer relationships by interacting directly with potential customers.

How does direct marketing use technology to reach consumers?

Direct marketing uses technology such as catalogs, telemarketing, and automated kiosks to reach consumers directly, allowing for immediate responses and fostering lasting customer relationships.

Outlines

00:00

📢 Overview of Promotion Mix and Integrated Marketing Communication

This paragraph introduces Chapter 14, which focuses on communicating customer value through an integrated marketing communication strategy. It discusses the promotion mix, which includes advertising, public relations, personal selling, and direct marketing. The paragraph emphasizes the importance of these elements in persuasively communicating customer value and building customer relationships. Advertising is defined as a paid, non-personal presentation of ideas, goods, or services by an identifiable sponsor. Public relations aim to build a good reputation for the company through favorable publicity and handling of rumors or events. Personal selling involves salespeople capturing and retaining customers, while direct marketing targets individual consumers directly through various channels to obtain immediate responses and cultivate lasting relationships.

05:00

🎤 Deep Dive into Sales Promotions and Public Relations

Paragraph 2 delves deeper into the specifics of sales promotions and public relations within the promotion mix. Sales promotions are described as short-term incentives designed to encourage the purchase or sale of a product or service, such as discounts, coupons, displays, and demonstrations. The paragraph provides examples of how these promotions work in practice, like receiving a coupon for a future purchase or trying a product at a supermarket. Public relations are discussed in terms of building good relations with various publics through favorable publicity, corporate image building, and handling rumors or events. The paragraph mentions activities like symposia, congresses, conferences, and media announcements as ways companies engage in public relations. The importance of having a positive image and being heard about through these channels is highlighted, as well as the role of personal selling in presenting products or services and building customer relationships.

Keywords

💡Promotion Mix

Promotion Mix refers to the specific blend of marketing tools a company uses to persuasively communicate customer value and build customer relationships. It includes advertising, public relations, personal selling, and direct marketing. In the script, the promotion mix is central to the discussion on how companies maintain and enhance their customer relationships through various promotional strategies.

💡Advertising

Advertising is defined as any paid form of non-personal presentation promotion of ideas, goods, or services by an identifiable sponsor. It is a key component of the promotion mix, aiming to remind customers about the brand and its offerings. The script mentions various forms of advertising like TV ads and online banners, emphasizing the need for it to be paid and non-personal.

💡Sales Promotions

Sales promotions are short-term incentives designed to encourage the purchase or sale of a product or service. They include discounts, coupons, displays, and demonstrations. The script provides examples such as receiving a coupon for a half-off purchase or trying a product at a supermarket, which are tactics to boost immediate sales and customer engagement.

💡Public Relations

Public relations involve building good relations with the company's various publics by obtaining favorable publicity and handling or heading off unfavorable rumors. The script discusses how companies use press releases, sponsorships, and events to create a positive image and reputation, which is crucial for fostering trust and a good relationship with customers.

💡Personal Selling

Personal selling involves direct, one-on-one presentations by the firm's sales force to provide descriptions about products or services, make sales, and build customer relationships. The script highlights the importance of salespeople in convincing customers to buy products, illustrating how personal interaction can significantly influence a sale.

💡Direct Marketing

Direct marketing is about making direct connections with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships. It uses direct mail, telephone, direct response television, email, and the internet. The script gives examples such as receiving a catalog in the mail or a phone call from a company offering a special deal.

💡Integrated Marketing Communication

Integrated Marketing Communication (IMC) is a view of the communication process that emphasizes the need for a unified and coordinated approach across all promotional efforts. The script discusses how companies should align their advertising, public relations, personal selling, and direct marketing to deliver a consistent message and build stronger customer relationships.

💡Customer Relationship

A customer relationship refers to the connection a company has with its customers, which is built and maintained through various marketing and promotional efforts. The script underscores the importance of customer relationships in the promotion mix, as companies aim to not only attract new customers but also retain and engage existing ones through promotions.

💡Favorable Publicity

Favorable publicity is positive media coverage or public exposure that enhances a company's image and reputation. The script mentions that favorable publicity is a goal of public relations, achieved through activities like press releases and sponsorships, which can lead to a better relationship with customers.

💡Press Releases

A press release is a written or recorded communication for news reporters and journalists announcing something claimed as of interest to the public, especially concerning events, scheduled services, or products of businesses. The script uses press releases as an example of how companies can build good public relations by announcing new products or services to the media.

💡Trade Shows

Trade shows are events where companies in a specific industry set up booths to showcase and demonstrate their latest products and services. The script mentions trade shows as a platform for personal selling, where salespeople can interact directly with potential customers, providing detailed product information and building relationships.

Highlights

Chapter 14 focuses on the integrated marketing communication strategy.

Promotion mix includes advertising, public relations, personal selling, and direct marketing tools.

The purpose of promotion mix is to communicate customer value and build relationships.

Advertising is a paid, non-personal presentation by an identifiable sponsor.

Sales promotions are short-term incentives to encourage purchase or sales.

Public relations aim to build good relations and obtain favorable publicity.

Personal selling involves direct presentations by the firm's sales force.

Direct marketing connects with consumers directly for immediate response and lasting relationships.

Promotion mix is crucial for maintaining customer relationships.

Promotion mix can include discounts, coupons, displays, and demonstrations.

Press releases are a way to build public relations.

Sponsoring events can positively influence public relations.

Personal selling is about presenting products or services and building customer relationships.

Direct marketing uses direct mail, telephone, TV, email, and the internet to communicate with consumers.

Catalogs, telemarketing, and kiosks are examples of direct marketing.

The promotion mix is how companies persuade customers and build relationships.

Understanding the promotion mix is key to effective marketing communication.

Transcripts

so today we'll talk about chapter 14 uh

communicating customer value integrated

marketing communication strategy so in

this chapter uh we're going to talk

about the promotion mix uh do you guys

know

promotions there are lots of promotions

every day we see on the streets on TV

on uh we'll talk about this mix we'll

talk about the idea of integrated

marketing communication a view of the

communication process step in developing

effective marketing communication how to

set the total promotion budget or

mix and then uh we'll talk about uh mix

socially responsible marketing

communication what is a promotion mix

the promotion mix is the specific blend

of these following advertising public

relations personal selling darket

marketing tools that the company will

use to persuasively communicate customer

value and build customer relationship so

remember you have your customers you

want to build a relationship with them

then maybe you want to provide them with

some promotions and uh these promotions

will be part of these four items or five

items advertising so Those ads why do

you make them to maintain customer

relationship you remind the customer who

you are you remind the customer which

they can use their your product for for

uh public relations you try to have very

good

reputation uh the more favorable

information people talk about your

business the better your company will be

right better relationship you have with

your customers personal sellings you

guys remember

salese some salese are able to capture

some customers and keep them back right

and direct marketing like you send them

an update or you send them a message or

you send them an email

so uh so that's how you maintain your

customer uh communication with customers

and you communicate your customer value

and you the relationship so let's see

these uh promotion mix number one we

have advertising it's any paid form of

non-personal presentation promotion of

ideas goods or services by identifiable

sponsor so here you can see it has to be

paid if it's free it's not advertising

if it's SPID its advertising and it has

to be nonpersonal there should shouldn't

be a person there should be non-personal

you know something like a TV ad or a you

know an advertisement on the state

there's no human being come and talk to

you and tell you hey do this and it has

to be by identifiable sponsor so as long

as we know this is by Pepsi then it

becomes an

advertisement and we can see broadcasts

blueprints internet out uh outdoor uh

advertisement second part of the

promotion mix is uh we have uh sales

promotions and the shortterm incentive

to encount to encourage the purchase or

sales of a product or service so a sales

promotion can be um maybe uh discounts

coupons uh displays and demonstrations

do you remember uh last time you got a

coupon

what was it Max Max you go to Max they

give you this coupon you know if you buy

one you get this uh coupon that can

allow you to buy another one half off or

maybe a discount they give you coupons

at Cha they give you this discount the

new prices and discounts they

offer sometimes you go to uh you know Al

Huda supermarket and then they will have

a small rtion you get this juice with

this cookie you try them if you like

them you know you can buy

more those are all sales promotions

public relations involves building good

relations with the company's various

publics by obtaining favorably

publicity favorable publicity building

up a good corporate image handling or

heading off unfavorable rumors stories

and events and how you have a good

public relations by doing press releases

so you make an announcement on the

newspapers in our company we have

introduced this

new uh or maybe sponsored by your

company so maybe you find some activity

or event and you say this is sponsored

by this company then what happened you

have very good positive public relations

people hear your company they hear your

company once and twice then they become

part of your uh you know they start to

have very positive image maybe you have

a special

event or maybe you have a website on the

internet that talks about your

company how many people in their

companies they have very good Public

Relation activities what do they do

everything what do they do uh symposia

for example they do Symposium yeah

Congress uh congresses they do

conferences through the media through

radio they announce all of their new

activities

through those uh channels this way

people hear about your company once and

twice they start to have a positive

image you need to have people to have

heard about you and have a positive

image about you sometimes uh invite open

the later invite speakers to your events

this way you people have a favorable

uh picture of your

company now next here number four is the

personal selling and personal selling is

the personal presentations by The Firm

sales for Force so personal selling is

when you have one of your people go and

one of your people will go and present

the firm uh provide description about

your products or Services uh they make

sales they build customer

relationship uh they have sales

presentations they attend trade shows

and they have maybe incentive programs

to allow uh people to join or uh

participate with your

company do you guys remember which store

had a very excellent sales

people that you go to the store and the

salese will convince you to

buy any yes

yeah yeah we've got some people

here saying you're a salesperson by

yourself you know and if someone comes

and talk to you about a product doctor

you know you're able to provide present

sell I try to convince others okay so

I see the idea of that you know this is

part of the promotion mix of a company

is how you can U you know provide uh a

good presentation about the firm and uh

the purpose is making

sales they do a lot of talking about

their yeah

direct marketing uh it involves making

direct connections with carefully

targeted individual consumers to both

obtain an immediate response and

cultivate lasting customer relationships

through the use of direct mail telephone

direct response television email and the

internet to communicate directly with

specific consumers so this is direct

marketing so these are the uh the ways

of uh these are these are the promotion

mix these are how companies do promotion

they mix these five okay direct

marketing they use cataloges teley

marketing chaos do you guys know what's

a catalog some companies they send you a

catalog uh teley marketers some

companies they call you by phone hey you

know Mr so and so or Miss so and so

we've got this product that's new we

have it on special would you like to buy

it now uh or maybe chaos chaos is when

you uh sometimes they are automated

these days you walk into a Leb Center

and you find their saop phone small

machine it says you know if you want to

buy a new SIM card press here if you

want to recharge your car mobile if you

want to buy this it's you know they have

these casks everywhere so people can

provide selfs service so there's no

person there and at the same time there

is uh and also I think there is people

for buying magazines and newspaper yeah

newspapers and magazines yeah is Kos

yeah you find inside yeah chaos they

sell newspapers and

magazines like a coffee shop yeah inside

the coffee shop you may have a small

Booth about this company saone products

promotions you see that's an example of

direct

marketing are you guys okay with these

five uh let's see