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Chapter 1
Integrated Marketing Communications
United States Army
“An Army of One”
To "Be all you can be" in the Army
now means being "An Army
of one.“
10-Jan-2001
www.goarmy.com
Last Class
Introduction!!!
Objectives To review the various elements of the promotional mix
To introduce the concept of integrated marketing
communications
To summarize the IMC planning process and examine the
steps in a marketing communications program
To examine how various elements must be coordinated to
communicate effectively with the IMC perspective
Marketing Defined
The process of planning and executing
the ___________, _________, ________,
and __________ of _____, _____, and
_______ to create ________ that satisfy
individual and organizational objectives.
American Marketing Association
Marketing Defined
The process of planning and executing
the conception, pricing, promotion,
and distribution of _____, _____, and
_______ to create ________ that satisfy
individual and organizational objectives.
American Marketing Association
Marketing Defined
The process of planning and executing
the conception, pricing, promotion,
and distribution of ideas, goods and
services to create ________ that satisfy
individual and organizational objectives.
American Marketing Association
Marketing Defined
The process of planning and executing
the conception, pricing, promotion,
and distribution of ideas, goods and
services to create exchanges that satisfy
individual and organizational objectives.
American Marketing Association
The Marketing & Promotional Mixes
Product or service Pricing policy Distribution method (Place) Marketing communications mix (Promotion)
Advertising Direct marketing Sales promotion Publicity/public relations Personal selling
Marketing plan : is a written document that describes the overall marketing strategy and programs developed for an organization, product line, or brand.
AdvertisingAny paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.
Advertising
Marketers use advertising to: create brand image strike a responsive chord with consumers
when differentiation using other elements of the marketing mix is difficult
create symbolic appeals for a company or brand
take advantage of the fact that advertising is a very cost-effective method of reaching a large audience
Advantages of Advertising: cost-effective way for communicating, with large
audiences
ability to create images and symbolic appeals and for differentiating similar products and services
ability to strike audience through creative advertising
ability to control the message (what, when and how something is said and where it is delivered.
Disadvantages of Advertising:
the cost of producing and placing ads can be very high, particularly television commercials,
it can be difficult to determine the effectiveness of advertising
there are credibility and image problems associated with advertising
Spending in $Billions [United States]
0
50
100
150
200
250
1980 2000
Advertising
SalesPromotion
Show Net Price*** Change
1 Friends NBC $473,500 3.9%
2 Will & Grace NBC $414,500 10.1%
3 ER NBC $404,814 -7.7%
4 Survivor CBS $390,367 -6.8%
5 Scrubs NBC $360,950 22.5%
6 Coupling NBC $316,400 *
7 CSI CBS $310,324 10.8%
8 The Simpsons Fox $296,440 19.4%
9 24 Fox $292,200 58.3%
10 Mon. Football ABC $272,867 -8.4%
The "Change" field represents the difference from last season.* 'Coupling' is a new show. There is no previous season comparison number.***Price is the cost of placing a 30 second ad in the particular show
Rakamlarla reklam...
Türkiye'de reklam sektörünün GSYH'ye oranı binde 5. Bu oran bazı gelişmiş ülkelerde yüzde 2
Türkiye'de 24'ü ulusal, 76'sı kablo, diğerleri bölgesel ve yerel olmak üzere 340 televizyon kanalı var
34 ulusal gazate yayımlanırken, düzenli reklam alan 250 dergi bulunuyor
2006'da 14 bin firma 17 bin marka için reklam verdi Tam hizmet veren reklam ajansı sayısı 100'ü
buluyor
In 2005 in Turkey
One of the indicators of improvement in advertising sector is number of new ads of firms and brands other one is the number of ads in total.Last year 717 brands advertised for the first time.In total 13,810,636 second of ads were runTV shows were taking the lead.
National TV shows in total had 10,335,659 seconds of ads.
Foreign TV shows in total had 5,726,725 seconds of ads.
Number 1 was (with syndications) "Çocuklar Duymasın“ It was aired 382 times and had 515,073 seconds of ads.
Number 2 was "En Son Babalar Duyar". It was aired 366 times and had 469,754 seconds of ads.
By 2007 February
The most watched TV shows Binbir Gece (Kanal D) Avrupa Yakası (atv) Acı Hayat (Show TV) Sıla (atv) Arka Sokaklar (Kanal D) Yaprak Dökümü (Kanal D) Sağır Oda (Kanal D) Cennet Mahallesi (Show TV) Candan Öte (Star) Karagümrük Yanıyor (Star) Ihlamurlar Altında (Kanal D)
What are the most watched TV shows?
Show TV reklam fiyatlari
What are the TV shows that get the most # of ad placements?
TV Chn Show #of Ads TV Chn Show #of Ads StvSirlar Dünyas? 908 Kanal 7 Kalp Gözü 827StvBe?inci Boyut 807 Show TV Aci Hayat 741StvBüyük Bulu?ma 718 Kanal 7 Eksi 688AtvAvrupa Yakas? 653 Star. Köprü 640StvYagmurdan Sonra. 637 Atv Sila 626StvYeseren Düsler. 586 Show TV Ezo Gelin 563AtvSöhret. 547 Show TV Emret Komutan 532AtvSelena 513 Show TV Yanik Koza 509Star Iki Aile 507 Show TV Cennet Mahalle 504
27 AUGUST-02 SEPTEMBER 2007Most Advertised 10 Brands
No Brand # of ads Brand Duration(sn) 1 Ülker İçim 884 Kosla 39.342 2 Turkcell Süper Ligi 851 Turkcell 30.092 3 Clear 837 Ülker İçim 29.042 4 Beko 825 Turkcell Süper Ligi 25.310 5 Denizbank 785 THY 25.200 6 Bellona 769 İş Bankası 24.080 7 Domestos 754 Clear 23.454 8 İstikbal 736 Ülker Colaturka 19.727 9 Elidor 729 Dove 19.556 10 Turkcell 674 Beko 18.353
Most Advertised Industries
No Industry # of Ads Industry Duration(sn) 1 Gıda 10.818 Gıda 243.562 2 Finans 4.643 Finans 122.216 3 Kozmetik 4.505 Ev Temizlik 115.929 4 Ev Temizlik 4.270 Kozmetik 106.237 5 Kişisel Bakım 3.104 Kişisel Bakım 77.438 6 Tekstil / Deri 2.965 İletişim Tekno 75.898 7 İnşaat/Emlak 2.873 Yayıncılık 69.893 8 Yayıncılık 2.245 İnşaat/Emlak 67.511 9 İletişim Tekno 2.128 Otomotiv 51.637 10 Dayanıklı TM 2.122 Tekstil / Deri 44.049
What about Newspapers
What are the newspapers with the most ad placements?
Hürriyet Zaman Sabah
Circulation??? 03-09 September 2007
Weekly Circulation Numbers Posta 648.997 Hürriyet 593.355 Zaman 523.202 Sabah 501.461 P.Fotomaç 262.655 Takvim 248.546 Fanatik 248.494 Vatan 212.654 Milliyet 210.323 Akşam 196.664 Güneş 160.486 Türkiye 149.423 Yeni Şafak 111.910 Bugün 101.124 Star 91.817 Sözcü 83.255 Cumhuriyet 77.424 E. Fotospor 67.859 A.Vakit 65.518 A.Şok 55.266 Yeni Çağ 53.574 Milli Gazete 51.283 Radikal 36.477 H.O.Tercüman 33.599
Classifications of Advertising
National advertising Retail/local advertising Advertising to increase demand
Primary demand for the product category Selective demand for a specific brand
Business & professional advertising Business-to-business advertising Professional advertising Trade advertising
Sales Promotion
Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales.
Advantages of Sales Promotion
provides extra incentive to consumer or middlemen
way of appealing to price sensitive consumer
effects can often be more directly measured than those of advertising
can be used as a way of building or reinforcing brand equity
IMC and Branding
Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.
Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.
2003 Brand Value(Billions of Dollars)
1. Coca-Cola$70.5
2. Microsoft$65.1
3. IBM$51.8
4. GE $42.35. Intel
$31.16. Nokia
$29.47. Disney
$28.08. McDonald’s
$24.79. Marlboro
$22.210. Mercedes
$21.4
IMC plays a major role in the process of developing and sustaining brand identity and equity.
IMC plays a major role in the process of developing and sustaining brand identity and equity.
Intel’s Advertising Helps Build Brand Equity
Disadvantages of Sales Promotion
many companies are becoming too reliant on sales promotion and focusing too much attention on short-run marketing planning and performance
short-term sales gains are often
achieved at the expense of long-term brand equity
Types of Sales Promotion
Customer-oriented
Trade-oriented
Public RelationsThe management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance. Tools used by public relations
Publicity Special publications Community activity participation Fund-raising Special event sponsorship Public affairs activities
PublicityNon-personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. Publicity is NOT advertising. Advertising.
Paid, sponsor-identified, non personal (media) communications.
Publicity. Non-paid, unsponsored, non personal (media)
communications.
Publicity VehiclesNews releases: Single-page news stories sent
to mediaFeature articles: Larger manuscripts
Captioned photosPress conferencesSpecial events: Sponsorship of events, teams,
or programs of public value.
Advantages of Publicity
credibility of publicity is usually higher than other
low cost way of communicating often has news value and generates word‑of‑mouth discussion among
consumers
Disadvantages of Publicity
lack of control over what is said,
when, where and
how it is said
can be negative as well as
positive
Advertising Versus Publicity Advertising
_____, ___________, nonpersonal (media) communications.
Publicity ___________, __________,
nonpersonal (media) communications.
Advertising Versus Publicity Advertising
Paid , sponsor-identified, nonpersonal (media) communications.
Publicity Unpaid, unsponsored,
nonpersonal (media) communications.
Advertising Versus Publicity
FACTOR ADVERTISING PUBLICITYControl Great LittleCredibility Lower HigherReach Achievable UndeterminedFrequency Schedulable LowCost Specific UnspecifiedFlexibility High LowTiming Specifiable Tentative
Direct Marketing
Organizations communicate directly with target customers to generate a response and/or transaction.
Direct marketing methods. Direct mail. Cataloging. Telemarketing. Direct response ads. Internet sales.
Personal SellingA form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase to company’s product or service or act on an idea.
flexibility exists to tailor the message to the customers specific need or situation.
Advantages of Direct Marketing
changes in society- convenience Ability to be selective and target its
marketing communications to specific customer segments
messages can be customized effectiveness of direct-marketing efforts
are easier to assess than other forms of promotion
Disadvantages of Direct Marketing
consumers and businesses bombarded
with unsolicited mail and phone calls
which makes them less receptive to
direct-marketing
direct marketing has image problems
problems with clutter
Relationship Marketing
Marketing Focuses on EXCHANGE
nature of exchange what is needed for this process to occur including: two or more parties with
something of value to one another;
and a way for the parties to communicate with one another.
________________
is the process of creating, maintaining and enhancing long-term relationships with individual customers as well as other stakeholders for mutual benefit.
Relationship Marketing
is the process of creating, maintaining and enhancing long-term relationships with individual customers as well as other stakeholders for mutual benefit.
Ford Motor Company
Ford’s Vision: To become the world's Ford’s Vision: To become the world's leading consumer company for leading consumer company for automotive products and servicesautomotive products and services
Integrated Marketing Communications
A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines -- for example, general advertising, direct response, sales promotion, and public relations -- and combines these disciplines TO PROVIDE
CLARITY, CONSISTENCY, and maximum COMMUNICATIONS IMPACT.
Integrated Marketing Communications
Coordinating the various promotional elements and other marketing activities that communicate with the firm’s customers.
Reasons for Growth of IMC Planning efficiency and effectiveness. Consumer adoption of technology and media. Innovative marketing practices. Customer’s point of view Relationship Marketing
Planning for IMC:Promotional Management
Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.
Considerations for developing the promotional mix include:
Type of product. Buyer’s decision process Stage of product life cycle Channels of distribution
Situation Analysis Internal analysis.
Assesses relevant areas involving the product/service offering and the firm itself.
Internal factors. Assessment of the firm’s promotional organization and
capabilities. Review of the firm’s previous promotional programs. Assessment of firm or brand image and implications for
promotion. Assessment of relative strengths and weaknesses of
product/service.
Situation Analysis External analysis.
Focuses on factors such as characteristics of a firms customers, market segments, environment and competitors.
External factors. Customer analysis. Competitive analysis. Environmental analysis.
Situation AnalysisInternal Factors
Assessment of the firm’s promotional organization and capabilities
Review of the firm’s previous promotional programs
Assessment of firm or brand image and implications for promotion
Assessment of relative strengths and weaknesses of product/service
External FactorsCustomer analysisCompetitive analysisEnvironmental analysis
SUM UP
Various elements of the promotional mix
IMC planning process
Steps in a marketing communications
program
Coordination to communicate effectively
with the IMC perspective
Next Class
Understanding how firms organize advertising and IMC
Examining methods for selecting, compensating and evaluating Ad Agencies
Explaining the role of specialized marketing communications organizations
To do!!! Read Chapter 2