Factors in Setting the Marketing Communications Mix

Companies must consider several factors in developing their communications mix: type of product
market, consumer readiness to make a purchase, and stage in the product life cycle.
TYPE OF PRODUCT MARKET Communications-mix allocations vary between consumer
and business markets. Consumer marketers tend to spend comparatively more on sales promotion
and advertising; business marketers tend to spend comparatively more on personal selling. In
general, personal selling is used more with complex, expensive, and risky goods and in markets
with fewer and larger sellers (hence, business markets).
Although marketers rely more on sales calls in business markets, advertising still plays a significant
role:
• Advertising can provide an introduction to the company and its products.
• If the product has new features, advertising can explain them.
• Reminder advertising is more economical than sales calls.
• Advertisements offering brochures and carrying the company’s phone number or Web address
are an effective way to generate leads for sales representatives.
• Sales representatives can use copies of the company’s ads to legitimize their company and products.
• Advertising can remind customers how to use the product and reassure them about their purchase.
Advertising combined with personal selling can increase sales over personal selling alone.
Corporate advertising can improve a company’s reputation and improve the sales force’s chances of
getting a favorable first hearing and early adoption of the product.36 IBM’s corporate marketing
effort is a notable success in recent years.BUYER-READINESS STAGE Communication tools vary in costeffectiveness
at different stages of buyer readiness. Figure 17.4
shows the relative cost-effectiveness of three communication tools.
Advertising and publicity play the most important roles in the
awareness-building stage. Customer comprehension is primarily
affected by advertising and personal selling. Customer conviction is
influenced mostly by personal selling. Closing the sale is influenced
mostly by personal selling and sales promotion. Reordering is also
affected mostly by personal selling and sales promotion, and
somewhat by reminder advertising.
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 to gain distribution coverage and sales promotion and direct
marketing to induce trial. In the growth stage, demand has its own
momentum through word of mouth and interactive marketing. Advertising, events and experiences,
and personal selling all become more important in the maturity stage. In the decline stage, sales
promotion continues strong, other communication tools are reduced, and salespeople give the
product only minimal attention.