MT 219 Marketing Unit Seven

Integrated Marketing Communications

Dr. Bea Bourne

Note: This seminar will be recorded by the instructor.

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Before we get started:

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Review of Unit 6

• In Unit 6, we looked at the way producers of goods get their products into the hands of consumers through distribution channels and by developing a sound supply chain management system. We also looked at the different types of intermediaries in the distribution process, particularly with regard to wholesalers and retailers

Reading Assignment

Chapters 16, 17, & 18

Our Topics for This Week

• In this unit, we will look at the necessity of having an integrated marketing communications (IMC) strategy in promoting products.

• We are also going to start an examination of each of the five elements of the promotion mix and provide insight into how each of these elements can help provide consumers with the information they need to make purchase decisions.

• Questions

Outcomes• After completing this unit, you should be able to: • Understand the importance of the promotion mix and

integrated marketing communications within the marketing mix

• Comprehend the AIDA concept and its relationship to the promotional mix

• Discuss the effects of advertising on consumers• Understand the role of public relations in the promotional mix• Define and state the objectives of sales promotion• Describe the steps in the selling process

The Promotion Mix

Four elements of the promotional mix:

Advertising

Public Relations

Personal Selling

Sales Promotion

The fifth- Direct Marketing will be explored in Unit 8.

Integrated Marketing Communications

• Assuring consistent messages through the coordination of promotional efforts

• The objective is to generate maximum informational and persuasive impact

• Generally, all five of the promotional mix are used to get maximum effect- advertising, personal selling, sales promotion, direct marketing and publicity

Promotion mix strategies- Push vs. Pull

• Push - budgets are directed to resellers, often through personal selling

• Pull – budgets are directed to the consumer, often through advertising and promotion

Advertising

• Paid non-personal communication through mass media

• Advantages- Cost efficient on a per person reached basis- Highly flexible, and allows for repetition- Adds value- Lends legitimacy

• Disadvantages- Out of pocket outlay is high- Hard to measure sales effect unless source coding is used- Feedback usually slow

Types of Advertising

• Institutional• Advocacy• Product• Pioneer

• Competitive• Comparative• Reminder• Reinforcement

Major Advertising Objectives

• Inform

• Persuade

• Remind

• Good way to remember this is R.I.P.

Budget Decisions

• Affordable

• Percent of sales

• Competitive parity

• Objective and task

Developing Advertising Strategy

• Two major elements- Creating advertising messages and media selection

• Key issues in developing advertising strategy- Breaking through the clutter

- The need to make advertisements that break through clutter

Message Strategy

• Message should be-Relevant and important -Believable-Executable-Able to convey competitive advantage-Memorable-Undertake some effect to move consumer towards some action

-Consistent with other parts of the promotional mix

Media Decisions

• Sets reach, frequency and impact objectives

• Select major media types

• Specific methods- media vehicles and schedule

• Set media scheduling patterns

What are the advantages and disadvantages of TV advertising?

Television

Advantages

Large audiences

Low cost per person reached

Sight and sound

Visible

Confers legitimacy

Disadvantages

High out of pocket cost

Perishable

Waste coverage

What are the advantages and disadvantages of Internet advertising?

The Internet

Advantages

Extremely selective

Interactive

Low cost

Immediate feedback

Disadvantages

Viewers controls viewing

Fairly low impact on viewer

What are the advantages and disadvantages of Newspaper advertising?

Newspapers

AdvantagesReaches large audiencesPurchased to be readShort lead timeFrequent publicationBelievableGood for comparisonCan cover local areas

DisadvantagesNot selective socioeconomic allyShort lifePoor reproductionClutteredNot as popular as they once

were

What are the advantages and disadvantages of Direct Mail advertising?

Direct Mail

Advantages

Very selective

Flexible and selectable segments

Can be personalized

Can arrive in solo package

Disadvantages

Considered as junk mail

High cost per exposure

What are the advantages and disadvantages of Magazine advertising?

Magazines

AdvantagesSelectivity

Good reproduction

Long life

Prestigious

Full color ads

DisadvantagesHigh absolute dollar cost

Long lead time

What are the advantages and disadvantages of Radio advertising?

Radio

Advantages

Inexpensive

Flexible

Targeted

Disadvantages

Audio only

Background medium

Short life

Outdoor Advertising

Advantages

Flexible

Can provide heavy exposure

Low cost per exposure

Good placement selectivity

Disadvantages

No good audience selectivity

Creative limitations

People may ignore

Measuring Advertising Effectiveness

A critical part of every advertising campaign.

Provides feedback on whether the campaign objectives were fulfilled.

The effectiveness is difficult to measure, except for direct mail

Public Relations

Communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. Also called publicity.

Individual brands generally have publicity/public relations done at the corporate level.

Some people call this “free advertising,” but is can be expensive and must be done well to be effective.

Examples?

Personal Selling

• Paid Personal Communication• Advantages

- Provides significant impact on customers due to personal contact

- Interactive- Allows for immediate impact and adjustment

• Disadvantages- Costly- most costly part of promotion based on people reached

• If it is so costly, why is it done?

Steps in Managing the Sales Force

• Designing sales force strategy and structure- Structure-Territory, Product or Customer-based

- Size of sales force

- Outside or inside sales force

- Individual or team selling

• Recruiting and selecting salespeople

• Training salespeople

Steps in Managing the Sales Force- cont.

• Compensating salespeople- Commission

- Salary

- Combination

• Supervising and motivating salespeople

• Evaluating salespeople’s performance

The Personal Selling Process

• Prospecting• Pre-approach- Research is important• Approach• Presentation• Handling objections• Closing the Sale• Follow-up- To help ensure subsequent purchases

Sales Promotion

• Direct incentive to buy• Growing rapidly due to its effectiveness• May be directed at salespeople, resellers, and

consumers- anywhere in the distribution chain• Examples include free samples, coupons, contests,

premiums, rebates, buy one get one frees, frequent buyer programs, etc.

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Questions

Week 7 Assignment

Assignment: KapConsultants’ Training: Marketing Strategy- Promotion Organizations use the Promotion component of the marketing mix to communicate and build relationships with their target market. Understanding how organizations build a promotion strategy is an integral part of learning the fundamentals of marketing.

A promotional strategy is developed and employed to effectively reach consumers using the promotion mix, communications processes, and an integrated approach to managing and delivering consistent and effective messages about the product, brand, and company. As part of your training at KapConsultants, watch the following presentation on continuing the development of Section 4 of your marketing plan:

Week 7 Assignment continued

• Be sure to execute the following items to complete your Unit 7 Assignment:

• Watch the presentation to learn about the promotion component of the marketing mix:

• Download and read the example basic marketing plan to help guide your learning.

• Using the template provided, develop Section IV pertaining to the Promotion component of the Marketing Mix for your new product idea you will propose for your chosen company.

• I appreciate your time and attention during our 1 hour seminar today. If you have questions, feel free to contact me: BBourne@kaplan.edu and I’ll be happy to help!

• See you in Class!

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Thank you