Instructor: Amir Ekhlassi (7) Integrated Marketing Communications: Advertising, Sales Promotion, and Public Relations

Instructor: Amir Ekhlassi

(7)Integrated Marketing Communications: Advertising,

Sales Promotion, and Public Relations

The Marketing Communication MixAdvertising: any paid form of nonpersonal

presentation and promotion of ideas, goods, or services by an identified sponsor.

Sales promotion: short-term incentives to encourage the purchase or sale of a product or service.

Public relations: 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.

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The Marketing Communication Mix (cont’d) Personal selling: personal presentation

by the firm’s sales force for the purpose of making sales and building customer relationships.

Direct Marketing: direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.


Advertising Advertising can reach masses of

geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times.

Beyond its reach, large-scale advertising says something positive about the seller’s size, popularity, and success.

Because of advertising’s public nature, consumers tend to view advertised products as more legitimate.


Advertising (cont’d) Advertising is also very expressive – it allows

the company to dramatize its products through the artful use of visuals, print, sound, and color.

On the one hand, advertising can be used to build up a long-term image for a product (such as Coca-Cola ads). On the other hand, advertising can trigger quick sales (as when sears advertises a weekend sale).


Advertising (cont’d)

Advertising also has some shortcomings:Advertising is impersonal and cannot be

as directly persuasive as can company salespeople.

Advertising can carry on only a one-way communication with the audience.

Advertising can be very costly.


Major decision in advertising

Objectives setting

Communication objSales obj

Budget decisions

Affordable approachPercent of sales

Competitive parityObjective & task

Message decisions

Message strategyMessage execution

Media decisions

Reach, frequency, impactMajor media types

Specific media vehiclesMedia timing

Campaign evaluation

CommunicationImpact

Sales impact


1. Setting advertising objectivesAn advertising objective is a specific communication

task to be accomplished with a specific target audience during a specific period of time.

Advertising objectives can be classified by primary purpose: Informative advertising (build primary demand,

introducing new product) Persuasive advertising (build selective demand,

comparative advertising: Directly or Indirectly) Reminder advertising (For mature products)


2. Setting the advertising budgetIt depends! One of the Hardest Marketing Decisions is

How Much to Spend on Promotion.

Affordable

Objective-and-Task

Percentage of Sales

Competitive-Parity


2. Setting the advertising budget (cont’d)

Affordable method: setting the promotion budget at the level management thinks the company can afford. (SMEs often use this method, overspending or underspending)

Percentage-of-sales method: setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.(it wrongly views sales as the cause of promotion rather than as the result)


2. Setting the advertising budget (cont’d)

Competitive – parity method: setting the promotion budget to match competitors’ outlays.

Objective-and-task method: developing the promotion budget by:Defining specific objectivesDetermining the tasks that must be performed

to achieve these objectivesEstimating the costs of performing these tasks


3. Creating the advertising message

The first step in creating effective message is to decide what general message will be communicated to consumers (message strategy)

Developing an effective message strategy begins with identifying customer benefits that can be used as advertising appeals.

Ideally, advertising message strategy will follow directly from the company’s broader positioning strategy.


3. Creating the advertising message (cont’d)The advertiser must next develop a compelling creative

concept – or ““big ideabig idea”” that will bring the message strategy to life in a distinctive and memorable way.

The creative concept may emerge as a visualization, a phrase, or a combination of the two.

Advertising appeals should have three characteristics: MeaningfulBelievableDistinctive

Watch: it keeps accurate timeSwatch: style & fashion Rolex: Luxury & Status

Hane: “buy cheap socks and you will pay through the toes”13 ©Compiled by: Amir Ekhlassi

3. Creating the advertising message (cont’d)

Any message can be presented in different execution styles:

Slice of life (one or more people using the product in a normal setting)

LifestyleFantasy (Gap : Dream) Mood or image (Beauty, Love, Serenity)Musical (Jingle) Personality symbolTechnical expertiseScientific evidence (Crest) Testimonial evidence or endorsement (highly

believable or likable)14

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4. Selecting advertising mediaThe major steps in media selection are:Deciding on reach, frequency, and impactChoosing among major media typesSelecting specific media vehiclesDeciding on media timing

IllustrationHeadlineThe main block of text


4. Selecting advertising media (cont’d)

Deciding on reach, frequency, and impact:Reach is a measure of the percentage of

people in the target market who are exposed to the ad campaign during a given period of time.

Frequency is a measure of how many times the average person in the target market is exposed to the message.

Impact is the qualitative value of a message exposure through a given medium.



Choosing among major media types:The media habits of target consumer The nature of the product (fashion is best

advertised in color magazine, automobile performance is best demonstrated on TV)

Different types of messages Cost



In selecting media vehicles, the media planner should consider:

Costs against the media vehicle’s audience quality (Baby lotion in New Parents not in Gentlemen’s Quarterly)

Audience attentionThe vehicle’s editorial quality (wall

street, time)



Deciding on media timing:ContinuityPulsing

Hallmark: Seasonal Ad)

The idea is to advertise heavily for a short period to build awareness that carries over to the next ad period.


5. Evaluation advertising The advertising program should evaluate both

the communication effectscommunication effects and the sales sales effectseffects of advertising regularly.

Measuring the communication effects of an ad – copy testing – tells whether the ad is communicating well.

The sales effect of advertising are often harder to measure than the communication effects. Sales are affected by many factors besides advertising – such as product features, price, and availability.


Sales promotion

Sales promotionSales promotion consists of short-term incentives to

encourage purchase or sales of a product or service. Whereas advertising and personal selling offer

reasons to buy a product or service, sales promotion offers reasons to buy now.

Sales promotion are targeted toward:Final buyers (consumer promotions)Retailers and wholesalers (trade promotions)Business customers (business promotions)Member of the sales force (sales force promotion)


Sales promotion (cont’d) Several factors have contributed to the rapid

growth of sales promotion:Inside the company, product managers face

greater pressures to increase their current salesExternally, the company faces more

competition and competing brands are less differentiated

advertising efficiency has declined because of rising costs, media clutter, and legal restraints

Consumers have become more deal oriented and ever-larger retailers are demanding more deals from manufacturers


Consumer promotions Increase short-term sales

Trade promotions Getting retailers to carry new items more inventory more shelf space to buy ahead

Sales force promotion More sales force support

Sales promotion (cont’d)

Sales promotion objectivesSales promotion objectives



Sample (most effective but most expensive, Ex: P&G www.pertplus.com)

CouponsCash refund (rebate): price

reduction occurs after purchase rather than at the retail outlet

Price packs (cents-off deals)PremiumsAdvertising specialties (63% of

consumers in the USA)

Patronage reward (Airlines, Baskin-Robbins)

Point-of-purchaseContestSweepstakesGames

Consumer promotion toolsConsumer promotion tools



AllowanceAdvertising allowanceDisplay allowance

Free goodsPush money: cash or gifts to dealers or their

sales forces to “push” the manufacturers’ goods.

Trade promotion toolsTrade promotion tools


Public Relations (PR)

PR

PR

PR

PR

PRPR

PR

Public relationsBill Gates once famously said, “If I was down to my

last dollar , I ‘d spend it on public relations.”The role of PR in a company’ marketing strategy is key

in managing the image and reputation of businesses and basically there are 2 distinct approaches a PR consultant may use: Generating positive news stories that build the profile

and increase awareness of brands, business and individuals.

Responding to crisis, using the media to negate the impact of “bad press”.

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Public relationsPublic relations: 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.

PR departments may perform any or all of the following functions:Press relations or press agentry product publicityPublic affairs (building and maintaining national or local

community relations) LobbyingInvestor relationsDevelopment

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Public relations (cont’d)Major public relations tools:NewsSpeechesSpecial eventsWritten materialsAudiovisual materialsCorporate identity materials (Uniformity, company

cars and trucks, business cards, signs, logos) Public service activities(companies can improve public

goodwill by contributing money & time to public service activities. )

Web site (Ex: www.butterball.com in thanksgiving , 550,000 viewers)


Thank You For Your Patience & Attention

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Documents

Instructor: Amir Ekhlassi (7) Integrated Marketing Communications: Advertising, Sales Promotion, and Public Relations