Integrated Marketing Communication: Advertising, Sales Promotion, and Public Relations 12

12-2 ROAD MAP: Previewing the Concepts Discuss the process and advantages of integrated marketing communications. Discuss the process and advantages of integrated marketing communications. Define the five promotion tools and discuss the factors that must be considered in shaping the overall promotion mix. Define the five promotion tools and discuss the factors that must be considered in shaping the overall promotion mix. Describe and discuss the major decisions involved in developing an advertising program. Describe and discuss the major decisions involved in developing an advertising program. Explain how sales promotion campaigns are developed and implemented. Explain how sales promotion campaigns are developed and implemented. Explain how companies use public relations to communicate with their publics. Explain how companies use public relations to communicate with their publics.

12-3 Marketing Communications Mix Advertising Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Sales Promotion Sales Promotion Short-term incentives to encourage the purchase or sale of a product or service.

12-4 Marketing Communications Mix Public Relations Public Relations Building good relations with the companys various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. Personal Selling Personal Selling Personal presentation by the firms sales force for the purpose of making sales and building customer relationships.

12-5 Marketing Communication Mix Direct Marketing Direct Marketing Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationshipsthe use of telephone, mail, fax, e-mail, the Internet, and other tools to communicate directly with specific consumers.

12-6 The Changing Communications Environment Two factors are changing the face of todays marketing communications: As mass markets have fragmented, marketers are shifting away from mass marketing Vast improvements in information technology are speeding the movement toward segmented marketing

12-7 The Need for IMC Using IMC, the company carefully integrates and coordinates its many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.

12-8 Integrated Marketing Communication

12-9 Advertising Can reach masses of geographically dispersed buyers. Can reach masses of geographically dispersed buyers. Can repeat a message many times. Can repeat a message many times. Is impersonal, one-way communication. Is impersonal, one-way communication. Can be very costly for some media types. Can be very costly for some media types.

12-10 Personal Selling Involves personal interaction between two or more people. Involves personal interaction between two or more people. Allows relationship building. Allows relationship building. Most expensive promotion tool. Most expensive promotion tool.

12-11 Sales Promotion Wide assortment of tools. Wide assortment of tools. Attracts consumer attention. Attracts consumer attention. Offers strong incentives to buy. Offers strong incentives to buy. Invites and rewards quick consumer response. Invites and rewards quick consumer response. Effects are short-lived. Effects are short-lived.

12-12 Public Relations Very believable. Very believable. Reaches people who avoid salespeople and ads. Reaches people who avoid salespeople and ads. Can dramatize a company or product. Can dramatize a company or product. Tends to be used as an afterthought. Tends to be used as an afterthought. Planned use can be effective and economical. Planned use can be effective and economical.

12-13 Direct Marketing Many forms that share four characteristics: Many forms that share four characteristics: Nonpublic Immediate Customized Interactive Well suited to highly targeted marketing. Well suited to highly targeted marketing.

12-14 Push vs. Pull Promotion Strategy

12-15 Advertising Advertising has been used for centuries. Advertising has been used for centuries. U.S. advertisers spend more than $237 billion each year; worldwide spending approaches $470 billion. U.S. advertisers spend more than $237 billion each year; worldwide spending approaches $470 billion. Advertising is used by: Advertising is used by: Business firms Nonprofit organizations Professionals Social agencies Government

12-16 Major Decisions in Advertising

12-17 Setting Advertising Objectives An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time. An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time. Classified by purpose: Classified by purpose: Inform Persuade Compare Remind

12-18 Comparative Advertising Progresso makes side-by-side comparisons of its soup versus Campbells, inviting consumers to Enjoy a better soupwith a more adult taste.

12-19 Choose a partner and discuss why comparative advertising is used so frequently. Do you think this approach to advertising is effective? Can you think of any situations where this type of advertising has influenced your buying behavior? Choose a partner and discuss why comparative advertising is used so frequently. Do you think this approach to advertising is effective? Can you think of any situations where this type of advertising has influenced your buying behavior? Interactive Student Assignment

12-20 Setting the Advertising Budget Affordable Based on What the Company Thinks it Can Afford Objective-and-Task Set Objectives, Determine Tasks to Achieve Objectives, Sum of Task Costs Equals Budget Objective-and-Task Set Objectives, Determine Tasks to Achieve Objectives, Sum of Task Costs Equals Budget Percentage-of-Sales Based on a Percentage of Current or Forecasted Sales Percentage-of-Sales Based on a Percentage of Current or Forecasted Sales Competitive-Parity Set Budget to Match Competitors Competitive-Parity Set Budget to Match Competitors

12-21 Developing Advertising Strategy Consists of two major elements: Consists of two major elements: Creating advertising messages Selecting advertising media

12-22 The Message Strategy Identify Customer Benefits Develop Compelling Creative Concept The Big Idea Advertising Appeals Should Be Meaningful, Believable, & Distinctive

12-23 A New Advertising Challenge The new wave of personal video recorders, such as TiVo, has armed viewers with an arsenal of new-age zipping and zapping weapons.

12-24 Message Execution Slice of Life Lifestyle Fantasy Mood or Image Musical Personality Symbol Technical Expertise Scientific Evidence Testimonial Evidence or Endorsement Testimonial Evidence or Endorsement Typical Approaches

12-25 Celebrity Endorsement Click the picture above to play video Nikes association with Michael Jordan helps the brand succeed, but also emphasizes the qualities that Nike stands for.

12-26 Humor in Advertising These days, it seems as though almost every company is using humor in its advertising, even the scholarly American Heritage Dictionary.

12-27 Message Execution Choose a tone Choose a tone Use memorable, attention-getting words Use memorable, attention-getting words Choose correct format elements Choose correct format elements Illustration Headline Copy

12-28 Selecting Advertising Media Reach Reach Percentage of people exposed to ad Frequency Frequency Number of times a person is exposed to ad Media Impact Media Impact The qualitative value of a message exposure through a given medium

12-29 Choosing Media Type Factors to consider: Factors to consider: Media habits of target consumers Nature of the product Type of message Cost Media vehicles Specific media within each general media type Specific media within each general media type

12-30 Deciding on Media Timing Must decide how to schedule the advertising over the course of a year Must decide how to schedule the advertising over the course of a year Follow seasonal pattern Oppose seasonal pattern Same coverage all year Choose the pattern of the ads Choose the pattern of the ads Continuity Pulsing

12-31 Evaluating Advertising Measure the communication effects of an ad. Copy Testing Measure the sales effects of an ad. Is the ad increasing sales?

12-32 Other Advertising Considerations Small Companies: Sales Departments Large Companies: Advertising Departments Advertising Agency: A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs.

12-33 Sales Promotion Sales promotion consists of short-term incentives to encourage the purchase or sales of a product or service. Sales promotion consists of short-term incentives to encourage the purchase or sales of a product or service. The idea behind sales promotion is to generate immediate sales. The idea behind sales promotion is to generate immediate sales.

12-34 Sales Promotion Todays food marketers are using more and more push promotions, including consumer price promotions.

12-35 Rapid Growth of Sales Promotion Sales promotion can take the form of consumer, business, trade, or sales force promotions. Sales promotion can take the form of consumer, business, trade, or sales force promotions. Rapid growth in the industry has been achieved because: Rapid growth in the industry has been achieved because: Product managers are facing more pressure to increase their current sales Companies face more competition Advertising efficiency has declined Consumers have become more deal oriented

12-36 Sales Promotion Objectives Consumer Promotions: increase short- term sales or help build long-term market share. Consumer Promotions: increase short- term sales or help build long-term market share. Trade Promotions: get retailers to: Trade Promotions: get retailers to: carry new items and more inventory advertise products give products more shelf space buy ahead Sales Force: getting more sales support. Sales Force: getting more sales support. In general, sales promotion should build long-term customer relationships. In general, sales promotion should build long-term customer relationships.

12-37 Sample Coupons Cash Refunds Rebates Cash Refunds Rebates Price Packs Cents-Off Deals Price Packs Cents-Off Deals Premiums Advertising Specialties Advertising Specialties Offers a trial amount of a product Savings when purchasing specified products Refund of part of the purchase price by mail Reduced prices marked on the label or package by producer Goods offered free or low cost as an incentive to buy a product Articles imprinted with an advertisers name given as gifts Consumer Sales Promotion Tools

12-38 Patronage Rewards Point-of-Purchase Promotions Point-of-Purchase Promotions Contest Sweepstakes Games Cash or other award offered for regular use of a product or service Displays or demonstrations at the point of purchase or sale Consumers submit an entry to be judged by a panel Consumers submit their names for a drawing Consumers receive something each time they buy which may help them win a prize Consumer Sales Promotion Tools

12-39 Why do retailers tend to prefer rebates to coupons? Why do retailers tend to prefer rebates to coupons? Discussion Question

12-40 Trade Promotion Persuade resellers to carry a brand Give a brand shelf space Promote brand in advertising Push brand to customers Discounts Allowances Free Goods Push Money Specialty Advertising Items Objectives Tools

12-41 Business Promotion Generate business leads Stimulate purchases Reward customers Motivate salespeople Conventions Trade shows Sales contests Objectives Tools

12-42 Trade Show More than 4,300 trade shows take place every year, drawing as many as 85 million people.

12-43 Decide on the Size of the Incentive Set Conditions for Participation Evaluate the Program Decide How to Promote and Distribute the Promotion Program Decide How to Promote and Distribute the Promotion Program Decide on the Length of the Program Developing the Sales Promotion Program

12-44 Public Relations Public relations involves building good relations with the companys various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. Public relations involves building good relations with the companys various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

12-45 Public Relations Public relations is used to promote products, people, places, ideas, activities, organizations, and even nations. New York City turned its image around when its I Love New York! campaign took root, bringing millions more tourists to the city.

12-46 Public Relations Functions Press relations or press agency Press relations or press agency Product publicity Product publicity Public affairs Public affairs Lobbying Lobbying Investor relations Investor relations Development Development

12-47 Public Relations Tools News News Speeches Speeches Special events Special events Buzz marketing Buzz marketing Mobile marketing Mobile marketing Written materials Written materials Audiovisual materials Audiovisual materials Corporate identity materials Corporate identity materials Public service activities Public service activities Company Web site Company Web site

12-48 Rest Stop: Reviewing the Concepts 1. Discuss the process and advantages of integrated marketing communications. 2. Define the five promotion tools and discuss factors that must be considered in shaping the overall promotion mix. 3. Describe and discuss the major decisions involved in developing an advertising program. 4. Explain how sales promotion campaigns are developed and implemented. 5. Explain how companies use public relations to communicate with their publics.

Documents

Integrated Marketing Communication: Advertising, Sales Promotion, and Public Relations 12