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Chapter 13
Integrated Marketing Communications: Advertising, Sales Promotion, and Public Relations
13-2
Road Map: Previewing the ConceptsDiscuss the process and advantages of integrated marketing communication.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.Explain how sales promotion campaigns are developed and implemented.Explain how companies use public relations to communicate with their publics.
13-3
American StandardYour mission – prepare a promotion campaign for American Standard’s line of toilets.Campaign materials – media ads, direct mailing, and personal contacts – to build sales and market share.
13-4
Marketing Communication Mix or Promotion Mix
Product’s Design
Product’s Price
Product’s
Package
Stores that Sell the Product
13-5
2 Factors
are Changing the Face of Today’s
Marketing Communications:
Improvement in Information Technology
Has Led to Segmented MarketingMore Narrowcasting
Marketers Have ShiftedAway From Mass
MarketingLess Broadcasting
Mark
et
Fragm
enta
tion
Led
to
Med
ia F
rag
men
tati
on
The Changing Communications Environment
13-6
The Need for Integrated Marketing Communications
With Integrated Marketing Communications (IMC), the
Company Carefully Integrates and Coordinates Its Many
Communications Channels to Deliver a Clear, Consistent, and Compelling Message About the Organization and Its Products.
13-7
Integrated Marketing Communications (Fig. 13-1)
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Advertising Advertising
Personal Selling
Personal Selling
SalesPromotion
SalesPromotion
PublicRelations
PublicRelations
DirectMarketing
DirectMarketing
Reaches Many Buyers, Repeats Message Many Times, Impersonal, Expensive
Reaches Many Buyers, Repeats Message Many Times, Impersonal, Expensive
Personal Interaction, Relationship Building, Most
Expensive Promo Tool
Personal Interaction, Relationship Building, Most
Expensive Promo ToolWide Assortment of Tools, Rewards Quick Response,
Efforts Short-Lived
Wide Assortment of Tools, Rewards Quick Response,
Efforts Short-LivedVery Believable, Dramatize a
Company or Product, Underutilized
Very Believable, Dramatize a Company or Product,
Underutilized
Nonpublic, Immediate, Customized, InteractiveNonpublic, Immediate, Customized, Interactive
Setting the Overall Communication Mix
13-9
Push versus Pull Promotion Strategy (Fig. 13-2)
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AdvertisingAdvertising is centuries old.U.S. advertisers spend in excess of $244 billion each year; worldwide spending exceeds $465 billion.Advertising is used by:
Business firms,Nonprofit organizations,Professionals, andSocial agencies.
13-11
Major Decisions in Advertising(Fig. 13-3)
13-12
Informative AdvertisingInform Consumers or Build Primary Demand
i.e DVD Players
Comparative AdvertisingCompares One Brand
to Anotheri.e. Avis vs. Hertz
Persuasive AdvertisingBuild Selective Demandi.e Sony DVD Players
Reminder AdvertisingKeeps Consumers
Thinking About a Producti.e. Coca-Cola
Advertising ObjectiveSpecific Communication Task Accomplished with a Specific
Target Audience During a Specific Period of Time
Setting Advertising Objectives
13-13
Advertising objectives can be classified by primary purpose: to inform, persuade, or remind. Think of examples of ads that address each of these objectives. Using Table 13-1, discuss why your examples fit the chosen objective.
13-14
Affordable Based on What the Company Can Afford
Objective-and-Task Based on Determining
Objectives & Tasks, Then Estimating Costs
Objective-and-Task Based on Determining
Objectives & Tasks, Then Estimating Costs
Percentage-of-SalesBased on a Certain
Percentage of Current or Forecasted Sales
Percentage-of-SalesBased on a Certain
Percentage of Current or Forecasted Sales
Competitive-ParityBased on the Competitors’
Promotion Budget
Competitive-ParityBased on the Competitors’
Promotion Budget
Methods of Setting the Advertising Budget for Each Product and Market.
Setting the Advertising Budget
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Selecting the Advertising Media
Advertising Strategy Consists of Two Major Elements and Companies are Realizing the
Benefits of Planning These Two Elements Jointly.
Developing Advertising Strategy
Creating the Advertising
Messages
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Creating the Advertising Message:Message Strategy
Advertising AppealsMeaningful, Believable
& Distinctive
Develop a Message Focus on
Customer Benefits
Creative Concept“Big Idea”
Visualization or Phrase
13-17
TypicalMessage
ExecutionStyles
Testimonial EvidenceTestimonial Evidence Slice of LifeSlice of Life
Scientific EvidenceScientific Evidence LifestyleLifestyle
Technical ExpertiseTechnical Expertise FantasyFantasy
MusicalMusical
Personality SymbolPersonality Symbol Mood or ImageMood or Image
Developing Advertising Strategy: Message Execution
13-18
Advertising Strategy:Selecting Advertising Media
Deciding on reach, frequency, and impact.Choosing among the major media types.
Media habits of target customers,Nature of the product,Types and costs of messages.
Selecting specific media vehicles.Specific media within each general media type.
Deciding on media timing.Scheduling advertising over the course of a year.
13-19
Communication Effects(Copy Testing)
Is the Ad Communicating Well?
Communication Effects(Copy Testing)
Is the Ad Communicating Well?
Advertising Program Evaluation
Sales Effects
Is the Ad Increasing Sales?
Sales Effects
Is the Ad Increasing Sales?
Evaluating Advertising
13-20
Sales Departments inSmall Companies
Advertising Departments in Larger Companies
Advertising Agency
Firm that Assists Companiesin the Planning, Creation, &
Implementation of TheirAdvertising Programs
Other Advertising Considerations
13-21
What is Sales Promotion?
Sales Promotion Offers Short-Term Incentives to Encourage Purchase or Sales of a Product
or Service.Offers Reasons to Buy NOW.
13-22
Rapid Growth of Sales Promotion
Sales promotion can take the form of consumer promotions, business promotions, trade promotions, or sales force promotions.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.
13-23
Sales Promotion ObjectivesConsumer Promotions: increase short-term sales or help build long-term market share.Trade Promotions: get retailers to:
carry new items and more inventory,advertise products, give products more shelf space, andbuy product ahead.
Sales Force: getting more sales support.In general, sales promotion should focus on consumer relationship building.
13-24
SampleSample
CouponsCoupons
Cash RefundsCash Refunds
Price PacksPrice Packs
PremiumsPremiums
Advertising Specialties
Advertising Specialties
Trial amount of a productTrial amount of a product
Savings when purchasing specified products
Savings when purchasing specified products
Refund of part of the purchase price
Refund of part of the purchase price
Reduced prices marked on the label or package
Reduced prices marked on the label or package
Goods offered free or low cost as an incentive to buy a
product
Goods offered free or low cost as an incentive to buy a
productArticles imprinted with an advertiser’s name given as
gifts
Articles imprinted with an advertiser’s name given as
gifts
Major Consumer Sales Promotion Tools
13-25
Patronage RewardsPatronage Rewards
Point-of-Purchase Point-of-Purchase
ContestContest
SweepstakesSweepstakes
GamesGames
Cash or Other Award Offered for Regular Use of a Product
Cash or Other Award Offered for Regular Use of a Product
Displays or Demonstrations at the Point of Purchase
Displays or Demonstrations at the Point of Purchase
Consumers Submit an Entry to be Judged
Consumers Submit an Entry to be Judged
Consumers Submit Their Names for a Drawing
Consumers Submit Their Names for a Drawing
Consumers Receive Something Each Time They Buy Which May
Help Them Win a Prize
Consumers Receive Something Each Time They Buy Which May
Help Them Win a Prize
Major Consumer Sales Promotion Tools
13-26
Which of the sales promotion tools described in the chapter would be best for stimulating sales of the following products or services?
Gummy Bears new Black Cherry flavor, Proctor & Gamble’s efforts to bundle laundry detergent and fabric softener together in a combined marketing effort, Outpost.com attempts to help consumers remember what it sells as well as its Web address.
13-27
Trade-Promotion Objectives
Persuade Retailers or Wholesalers to Carry a Brand
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf SpaceGive a Brand Shelf Space
Promote a Brand in Advertising
Promote a Brand in Advertising
Push a Brand to ConsumersPush a Brand to Consumers
Major Trade Sales Promotion Tools
Trade-Promotion Tools
DiscountsDiscounts
AllowancesAllowances
Free GoodsFree Goods
Push MoneyPush Money
Specialty Ad ItemsSpecialty Ad Items
13-28
Business-Promotion Objectives
Generate Business LeadsGenerate Business Leads
Stimulate PurchasesStimulate Purchases
Reward CustomersReward Customers
Motivate SalespeopleMotivate Salespeople
Business-Promotion Tools
ConventionsConventions
Trade ShowsTrade Shows
Sales ContestsSales Contests
Major Business Sales Promotion Tools
13-29
Decide on the Size of the IncentiveDecide on the Size of the Incentive
Set Conditions for ParticipationSet Conditions for Participation
Evaluate the ProgramEvaluate the Program
Determine How to Promote andDistribute the Promotion Program Determine How to Promote and
Distribute the Promotion Program
Determine the Length of the ProgramDetermine the Length of the Program
Developing the Sales Promotion Program
13-30
What is Public Relations?
Public Relations Involves Building Good Relations With the
Company’s Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate
Image, and Handling or Heading Off Unfavorable Rumors, Stories,
and Events.
13-31
Press Relations or AgentryPress Relations or Agentry
Product PublicityProduct Publicity
Public AffairsPublic Affairs
LobbyingLobbying
Investor RelationsInvestor Relations
DevelopmentDevelopment
Public Relations Departments May Perform Any or All
of the Following Functions:
Major Public Relations Functions
13-32
News
Speeches
Special Events
Written MaterialsAudiovisual
Materials
Corporate Identity
Materials
Public Service
Activities
Web Site
Major Public Relations Tools
13-33
Rest Stop: Reviewing the ConceptsDiscuss the process and advantages of integrated marketing communication.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.Explain how sales promotion campaigns are developed and implemented.Explain how companies use public relations to communicate with their publics.