12 Integrated Marketing Communication: Advertising, Sales Promotion, and Public

12
Integrated Marketing
Communication: Advertising,
Sales Promotion, and Public
Relations
ROAD MAP: Previewing the Concepts
• Discuss the process and advantages of integrated
•
•
•
•
marketing communications.
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.
12-2
Marketing Communications Mix
• Advertising
– 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.
12-3
Marketing Communications Mix
• 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.
• Personal Selling
– Personal presentation by the firm’s sales force
for the purpose of making sales and building
customer relationships.
12-4
Marketing Communication Mix
• Direct Marketing
– Direct connections with carefully targeted
individual consumers to both obtain an
immediate response and cultivate lasting
customer relationships—the use of telephone,
mail, fax, e-mail, the Internet, and other tools
to communicate directly with specific
consumers.
12-5
The Changing Communications
Environment
Two factors are changing the face of today’s
marketing communications:
As mass markets have fragmented, marketers
are shifting away from mass marketing
Vast improvements in information technology
are speeding the movement toward segmented
marketing
12-6
The Need for IMC
Using IMC, the company carefully
integrates and coordinates its many
communication channels to deliver
a clear, consistent, and compelling
message about the organization
and its brands.
12-7
Integrated Marketing Communication
12-8
Advertising
• Can reach masses of geographically
dispersed buyers.
• Can repeat a message many times.
• Is impersonal, one-way communication.
• Can be very costly for some media types.
12-9
Personal Selling
• Involves personal interaction between two
or more people.
• Allows relationship building.
• Most expensive promotion tool.
12-10
Sales Promotion
• Wide assortment of tools.
• Attracts consumer attention.
• Offers strong incentives to buy.
• Invites and rewards quick consumer
response.
• Effects are short-lived.
12-11
Public Relations
• Very believable.
• Reaches people who avoid salespeople
and ads.
• Can dramatize a company or product.
• Tends to be used as an afterthought.
• Planned use can be effective and
economical.
12-12
Direct Marketing
• Many forms that share four characteristics:
– Nonpublic
– Immediate
– Customized
– Interactive
• Well suited to highly targeted marketing.
12-13
Push vs. Pull Promotion Strategy
12-14
Advertising
• Advertising has been used for centuries.
• U.S. advertisers spend more than $237 billion
•
each year; worldwide spending approaches $470
billion.
Advertising is used by:
–
–
–
–
–
Business firms
Nonprofit organizations
Professionals
Social agencies
Government
12-15
Major Decisions in Advertising
12-16
Setting Advertising Objectives
• An advertising objective is a specific
communication task to be accomplished
with a specific target audience during a
specific period of time.
• Classified by purpose:
– Inform
– Persuade
– Compare
– Remind
12-17
Comparative Advertising
Progresso makes
side-by-side
comparisons of its
soup versus
Campbell’s, inviting
consumers to
“Enjoy a better
soup…with a more
adult taste.”
12-18
Interactive Student
Assignment
• Choose a partner and discuss why
comparative advertising is used so
frequently. Do you think this approach to
advertising is effective? Can you think of
any situations where this type of
advertising has influenced your buying
behavior?
12-19
Setting the Advertising Budget
Affordable
Based on What the Company Thinks it Can Afford
Percentage-of-Sales
Based on a Percentage of Current or Forecasted Sales
Competitive-Parity
Set Budget to Match Competitors
Objective-and-Task
Set Objectives, Determine Tasks to Achieve Objectives,
Sum of Task Costs Equals Budget
12-20
Developing Advertising Strategy
• Consists of two major elements:
– Creating advertising messages
– Selecting advertising media
12-21
The Message Strategy
Identify Customer Benefits
Develop Compelling Creative Concept
The “Big Idea”
Advertising Appeals Should Be
Meaningful, Believable, & Distinctive
12-22
A New Advertising Challenge
The new wave of personal video recorders, such as TiVo, has armed
viewers with an arsenal of new-age zipping and zapping weapons.
12-23
Message Execution
Testimonial Evidence
or Endorsement
Scientific Evidence
Technical Expertise
Slice of Life
Lifestyle
Typical
Approaches
Fantasy
Mood or Image
Personality Symbol
Musical
12-24
Celebrity Endorsement
Click the picture above to play video
Nike’s association
with Michael Jordan
helps the brand
succeed, but also
emphasizes the
qualities that Nike
stands for.
12-25
Humor in Advertising
These days, it seems as though almost every company is using humor in its
advertising, even the scholarly American Heritage Dictionary.
12-26
Message Execution
• Choose a tone
• Use memorable, attention-getting words
• Choose correct format elements
– Illustration
– Headline
– Copy
12-27
Selecting Advertising Media
• Reach
– Percentage of people exposed to ad
• Frequency
– Number of times a person is exposed to ad
• Media Impact
– The qualitative value of a message exposure
through a given medium
12-28
Choosing Media Type
• Factors to consider:
– Media habits of target consumers
– Nature of the product
– Type of message
– Cost
– Media vehicles
• Specific media within each general media type
12-29
Deciding on Media Timing
• Must decide how to schedule the
advertising over the course of a year
– Follow seasonal pattern
– Oppose seasonal pattern
– Same coverage all year
• Choose the pattern of the ads
– Continuity
– Pulsing
12-30
Evaluating Advertising
Measure the communication effects of an ad.
“Copy Testing”
Measure the sales effects of an ad.
Is the ad increasing sales?
12-31
Other Advertising Considerations
Small Companies:
Sales Departments
Large Companies:
Advertising
Departments
Advertising Agency:
A marketing services firm that assists companies in
planning, preparing, implementing, and evaluating all or
portions of their advertising programs.
12-32
Sales Promotion
• Sales promotion consists of short-term
incentives to encourage the purchase or
sales of a product or service.
• The idea behind sales promotion is to
generate immediate sales.
12-33
Sales Promotion
Today’s food
marketers are
using more and
more push
promotions,
including
consumer price
promotions.
12-34
Rapid Growth of Sales Promotion
• Sales promotion can take the form of
consumer, business, trade, 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
12-35
Sales Promotion Objectives
• Consumer 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
– buy ahead
• Sales Force: getting more sales support.
• In general, sales promotion should build
long-term customer relationships.
12-36
Consumer Sales Promotion Tools
Sample
Offers a trial amount of a product
Coupons
Savings when purchasing specified
products
Cash Refunds
“Rebates”
Refund of part of the purchase price by
mail
Price Packs
“Cents-Off Deals”
Reduced prices marked on the label or
package by producer
Premiums
Goods offered free or low cost as an
incentive to buy a product
Advertising
Specialties
Articles imprinted with an advertiser’s
name given as gifts
12-37
Consumer Sales Promotion Tools
Patronage Rewards
Cash or other award offered for regular
use of a product or service
Point-of-Purchase
Promotions
Displays or demonstrations at the point
of purchase or sale
Contest
Consumers submit an entry to be
judged by a panel
Sweepstakes
Consumers submit their names for a
drawing
Games
Consumers receive something each
time they buy which may help them
win a prize
12-38
Discussion Question
• Why do retailers tend to prefer
rebates to coupons?
12-39
Trade Promotion
Objectives
Persuade resellers to
carry a brand
Give a brand shelf
space
Promote brand in
advertising
Push brand to
customers
Tools
Discounts
Allowances
Free Goods
Push Money
Specialty Advertising
Items
12-40
Business Promotion
Objectives
Generate business
leads
Stimulate purchases
Reward customers
Tools
Conventions
Trade shows
Sales contests
Motivate salespeople
12-41
Trade Show
More than 4,300 trade shows take place every year, drawing as many as
85 million people.
12-42
Developing the Sales Promotion Program
Decide on the Size of the Incentive
Set Conditions for Participation
Decide How to Promote and
Distribute the Promotion Program
Decide on the Length of the Program
Evaluate the Program
12-43
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.
12-44
Public Relations
Public relations is used to
promote products, people,
places, ideas, activities,
organizations, and even
nations. New York City
turned its image around
when its “I Love New
York!” campaign took
root, bringing millions
more tourists to the city.
12-45
Public Relations Functions
• Press relations or
• Lobbying
• Product publicity
• Investor relations
• Public affairs
• Development
press agency
12-46
Public Relations Tools
• News
• Speeches
• Special events
• Buzz marketing
• Mobile marketing
• Written materials
• Audiovisual
materials
• Corporate identity
materials
• Public service
activities
• Company Web site
12-47
Rest Stop: Reviewing the Concepts
1. Discuss the process and advantages of integrated
2.
3.
4.
5.
marketing communications.
Define the five promotion tools and discuss 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.
12-48