Using IntegratedUsing IntegratedMarketing CommunicationsMarketing Communications

to Promote Productsto Promote Products

Using IntegratedUsing IntegratedMarketing CommunicationsMarketing Communications

to Promote Productsto Promote Products

Chapter 16

Chapter 16 Learning GoalsChapter 16 Learning Goals

1.1. WWhat are the goals of promotional strategy?

2.2. WWhat is the promotional mix, and what are its elements?

3.3. WWhat are the types of advertising?4.4. WWhat are the advertising media, and

how are they selected?5.5. WWhat is the selling process?

Chapter 16 Learning Goals Chapter 16 Learning Goals (cont’d.)(cont’d.)

6.6. WWhat are the goals of sales promotion, and what are several types of sales promotion?

7.7. HHow does public relations fit into the promotional mix?

8.8. WWhat factors affect the promotional mix?9.9. WWhat are three important trends in

promotion?

Learning Goal 1Learning Goal 1

• WWhat are the goals of promotional strategy?– Promotional strategy is designed to inform, persuade,

or remind target audiences about a company’s products

– Goals of promotion• Create awareness• Get people to try products• Provide information• Keep loyal customers• Increase use of a product• Identify potential customers

PromotionPromotion::

the attempt by marketers to inform, persuade, or remind consumers and industrial users to engage in the exchange process

Goals of PromotionGoals of Promotion

• Create awareness

• Get consumers to try products

• Provide information

• Keep loyal customers

• Increase amount and frequency of use

• Identify target customers

Keeping Loyal CustomersKeeping Loyal Customers

Some companies establish customer loyalty through social identity.

Social identitySocial identity: aspects of self-definition that derive from membership in social groups

ExampleExample: “It’s a Jeep thing. You wouldn’t understand.” This slogan implies Jeep owners are an elite group with common qualities.

Learning Goal 2Learning Goal 2

• WWhat is the promotional mix, and what are its elements?– Promotional mix Promotional mix is the combination of the following to promote a

product• Advertising

– Paid form of nonpersonal promotion by an identified sponsor

• Personal selling– Face-to-face presentation with a prospective buyer

• Sales promotion– Marketing activities that stimulate consumers to buy

• Public relations– Marketing function that links policies of the organization with public interest– Develops programs designed to earn public understanding and acceptance

Components of Promotional MixComponents of Promotional Mix

1.1. Advertising

2.2. Personal selling (face-to-face)

3.3. Sales promotion includes coupons, free samples,

demonstrations

4.4. Public relations

Discussion QuestionDiscussion Question

How could Compaq use each component of the promotional mix to introduce a new computer to the market?

AdvertisingAdvertising - educate consumersPersonal sellingPersonal selling - persuade retailers to

stock the new computer Sales promotionSales promotion - in-store

demonstrations, rebatesPublic relationsPublic relations - issue a press release

about the new product

Learning Goal 3Learning Goal 3

• WWhat are the types of advertising?– Institutional advertising Institutional advertising

• Creates a positive picture of a company

– Advocacy advertisingAdvocacy advertising• Takes a stand on controversial social or economic issues

– Product advertisingProduct advertising• Features a specific good or service

– Comparative advertisingComparative advertising• Company’s product is compared with competing, named

products

– Reminder advertisingReminder advertising• Used to keep a brand name in the public’s mind

AdvertisingAdvertising::

any paid form of nonpersonal promotion by an identified sponsor

1.1. Advertising

Types of Advertising:Types of Advertising:

1. Product advertisingProduct advertising– promotes a specific good or service

2. Institutional advertisingInstitutional advertising– promotes a company’s image

• Advertising businesses received approx. $34

billion in 1997, about 45% more than in 1988

($19 billion) (Source: US Census, www.census.gov)

1.1. Advertising

Learning Goal 4Learning Goal 4

• WWhat are the advertising media, and how are they selected?– Main types of advertising media

• NewspapersNewspapers• MagazinesMagazines• RadioRadio• TelevisionTelevision• OutdoorOutdoor• Direct mailDirect mail

– Two main factors in selecting media• Cost of medium• Audience reached by medium

Advertising MediaAdvertising Media

Types of media:

newspaper, magazine, radio, television, outdoor advertising, direct mail, Internet

Factors influencing choice of media:– cost– audience reached

1.1. Advertising

Advertising Regulation Advertising Regulation

Some types of complaints made against advertisers by consumers and competitors:

• unsupported claims regarding the popularity and performance of goods and services

• unfair comparisons to competitors’ goods and services

• exaggerated, unrealistic visual depiction of products

• overstatements that need qualification• broad claims based on one testimonial

1.1. Advertising

Source: The Better Business Bureau, www.bbb.org

Personal SellingPersonal Selling::

a face-to-face presentation to a prospective buyer

2.2. Personal selling

Learning Goal 5Learning Goal 5

• WWhat is the selling process?– Prospecting and qualifying– Approaching customers – Presenting and demonstrating the product– Handling objections– Closing the sale– Following up on the sale

Steps of the Selling ProcessSteps of the Selling Process

1.1. Prospecting and qualifying

2. 2. Approaching customers

3. 3. Presenting and demonstrating

4. 4. Handling objections

5. 5. Closing the sale

6. 6. Following up the sale

2.2. Personal selling

Enhancing Personal SalesEnhancing Personal SalesWhen salespersons do favors for potential

clients, the clients may feel obligated to

reciprocate by buying the product.

ReciprocityReciprocity is the social norm that positive

behavior should be re-payed in kind.

ExampleExample: salespersons may pay for lunch, give

free samples, go out of their way to do small

favors

2.2. Personal selling

Learning Goal 6Learning Goal 6

• WWhat are the goals of sales promotion, and what are several types of sales promotion?– Goal of sales promotion: Immediate purchaseImmediate purchase– Most popular types of sales promotions

• Coupons• Samples and premiums• Contests and sweepstakes• Trade shows• Conventions• Point-of-purchase displays

Sales PromotionSales Promotion::

marketing activities that stimulate consumer buying, including coupons and samples, displays, shows and exhibitions, demonstrations, and other types of selling efforts

3.3. Sales promotion

Promotional Goals DependPromotional Goals Dependon Type of Customeron Type of Customer

3.3. Sales promotion

Type of customer Promotional goal1. loyal to your

brand

reinforce behavior,increase consumption

2. competitor’scustomer

break loyalty, switch toyour brand

3. brand switchers buy your brand moreoften

4. price buyers appeal with low prices oradd value for same price

Promotional Products Can Be Used To:Promotional Products Can Be Used To:

3.3. Sales promotion

• Motivate sales teams

• Draw customers to a store or event

• Publicize an event

• Increase brand awareness

• Raise funds• Use as souvenirs and thank-yous

• Gain attention for new productsSource: Alpha Promotional Products, www.logomall.com/about/APP3.htm

Learning Goal 7Learning Goal 7

• HHow does public relations fit into the promotional mix?– Public relations

• Mostly concerned with getting good publicity for companies

– Public relations departments• Furnish company speakers for business and

civic clubs• Write speeches for corporate officers• Encourage employees to take active roles in

civic groups

Public RelationsPublic Relations::

the linking of organizational goals with key aspects of the public interest and the development of programs designed to earn public understanding and acceptance

4.4. Public relations

Public Relations Activities:Public Relations Activities:

4.4. Public relations

• Press relations• Product publicity• Corporate communication• Public affairs• Lobbying• Employee & investor relations• Crisis management

Discussion QuestionDiscussion Question4.4. Public relations

If you were public relations director for Nike, how could you have responded to the negative publicity of exploiting overseas labor?

Press relationsPress relations - release information about how Nike addressed the problem; release positive information about Nike

Corporate communicationCorporate communication & Employee/investor relationsEmployee/investor relations - restore confidence among Nike employees and shareholders

Crisis managementCrisis management - minimize damage; take positive steps to control the problem

Learning Goal 8Learning Goal 8

• WWhat factors affect the promotional mix?– Nature of the product– Market characteristics– Available funds– Whether a push or a pull strategy is

emphasized

Factors That Affect the Promotional Mix:Factors That Affect the Promotional Mix:

• Nature of the product

• Market characteristics

• Available funds

• Push and pull strategies

Using a Pull StrategyUsing a Pull Strategy

Sometimes a pull strategy can be used by increasing demand for a product through scarcity.

Scarcity principleScarcity principle: products seem more valuable when their availability is limited

ExampleExample: The scarcity of Ty’s Beanie Babies© increased their appeal among consumers.

Learning Goal 9Learning Goal 9

• WWhat are three important trends in promotion?– Integrated marketing communications (IMC)

• Produces a consistent, unified message that is customer focused

– Growth of Web advertising• Traditional advertising techniques don’t work well on the

Internet• Advertisers must use rational branding

– Digital VCRs may make the measurement of television audiences more difficult

Trends in Promotion:Trends in Promotion:

1.1. Integrated marketing communications

2. 2. Growth of advertising on the Internet

3. 3. Impact of Digital VCRs on television

Leaders in AdvertisingLeaders in Advertisingon the Interneton the Internet

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Source: The Nielsen//NetRatings Reporter, www.nielsen-netratings.com