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Dr. Close
McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved
"Doing business without advertising is like winking at a girl in the dark. You know what you are doing, but nobody else does." -- Steuart Henderson Britt
Strategic Goals of Mkt CommCreate awarenessCreate awareness
Build positive imagesBuild positive images Identify prospectsIdentify prospectsBuild channel relationshipsBuild channel relationshipsRetain customersRetain customers
VS
IMC Integrated marketing communications Disjointed campaigns are horrible
Use SYNERGISTIC combination of your tools Message should be complementary/
consistent (VW Bug as retro-hip)
Experts who specialize must work together Don’t have to choose between sales
promo, personal selling, & ads (use some of each to reach more of your target market)
IMC Tool: Advertising
Promotion Methods a.k.a. The Promotion Mix Advertising: paid, impersonal
promotions by identified sponsor(s) Traditional big markets, but adaptable to smaller Low cost/contact (LA Times: 2 cents/per) Difficult to measure impact Not adaptable, inflexible
IMC Tool: Sales Promos
Promotion Methods (cont…) Sales promotion (coupons, POP, samples,
tradeshow) Added value or incentive in regard to a
particular product May complement personal and mass selling
(bonus) Targets
Final consumers: coupons, freq. shopper Middleman: gifts, price breaks Company sales force: bonuses, training
$3 SP for $1 ads
IMC Tool: Publicity and PR Promotion Methods (cont…)
Publicity; unpaid, impersonal promotions (talk show, movie premiere, charity, cars, etc; Rosanne) Do not pay media costs (magazine article) Perceived credibility; negativity
Publicity has far more value than advertising, but you must give reporters a reason to write about you. Photo: Michel O’Sullivan
IMC Tool: WOM/eWOM
Promotion Methods (cont…) Word of mouth: “WOM is the most
important marketing element that exists” Gordon Weaver, Paramount Pictures. Do you agree? Unpaid, personal promotions (after ads – PLC) Very high credibility (friends, business
acquaintances, employees) Try for opinion leaders (may pay to stimulate;
teens; movies; fashions) Usually negative (respond to complaints)
IMC Tool: Personal Selling Promotion Methods (cont…)
Personal selling; paid, personal promotions; direct spoken communication Adaptable to each target Immediate feedback Very expensive ($200/contact) More spending on p.s. than ads
McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved
Integrated Marketing ApproachIntegrated Marketing Approach
How Various Promotion Tools Might Contribute to the Purchase How Various Promotion Tools Might Contribute to the Purchase of a Hypothetical Productof a Hypothetical Product
McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved
Some Differences between Traditional Marketing Some Differences between Traditional Marketing Communication Efforts and Integrated Marketing Communication Efforts and Integrated Marketing
CommunicationsCommunications
McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved
Advertising: Planning and StrategyAdvertising: Planning and Strategy
ObjectivesObjectives Generalist viewpoint – Concerned with sales, profits, and Generalist viewpoint – Concerned with sales, profits, and
return on investmentreturn on investment Middle viewpoint – Sees advertising as a competitive Middle viewpoint – Sees advertising as a competitive
weaponweapon Specialist viewpoint – Concerned with the effects of Specialist viewpoint – Concerned with the effects of
specific ads or campaignsspecific ads or campaigns In the long run and often in the short run, advertising is In the long run and often in the short run, advertising is
justified on the basis of the revenue it producesjustified on the basis of the revenue it produces Approach that aids intelligent decision making is neededApproach that aids intelligent decision making is needed
McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved
Developing Advertising Objectives: Developing Advertising Objectives: Nine QuestionsNine Questions
Does the advertising aim at immediate sales?Does the advertising aim at immediate sales? Does the advertising aim at near-term sales?Does the advertising aim at near-term sales? Does the advertising aim at building a long-range Does the advertising aim at building a long-range
consumer franchise?consumer franchise? Does the advertising aim at helping increase sales?Does the advertising aim at helping increase sales? Does the advertising aim at some specific step that Does the advertising aim at some specific step that
leads to a sale?leads to a sale?
McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved
Developing Advertising Objectives: Developing Advertising Objectives: Nine QuestionsNine Questions
How important are supplementary benefits of How important are supplementary benefits of advertising?advertising?
Should the advertising impart information needed to Should the advertising impart information needed to consummate sales and build customer satisfaction?consummate sales and build customer satisfaction?
Should advertising build confidence and goodwill for the Should advertising build confidence and goodwill for the corporation?corporation?
What kind of images does the company wish to build?What kind of images does the company wish to build?
McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved
Advertising DecisionsAdvertising Decisions
Key decisions to be made includeKey decisions to be made include Determining the size of the advertising budgetDetermining the size of the advertising budget Allocation of the advertising budgetAllocation of the advertising budget
Important to remember that brand equity and consumer Important to remember that brand equity and consumer preference for brands drive market sharepreference for brands drive market share