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Integrated Marketing Communications

VIEWS: 29 PAGES: 60

									          Marketing Communications &
                  Advertising



13
chapter




                                            Prepared by
                                          Deborah Baker
                              Texas Christian University
                                                 Revised
                                              Dr. R. Baur
                          Agricultural Technical Institute
          Chapter 12 Review
          1. Importance of retailing in the U.S. economy.
          2. Classification of retailers can be classified.
          3. Major types of retail operations.
 12       4. Non-store retailing techniques.
          5. Franchising and its basic forms.
chapter




          6. Major tasks in a retail marketing strategy.
          7. Challenges of expanding retailing
                operations into global markets.
          8. Future trends in retailing.
  BUSINESS MARKETING CONCEPTS
CH 1: OVERVIEW OF MARKETING
CH 2: THE MARKETING ENVIROMENT
CH 3: DEVELOPING A GLOBAL VISION
CH 4: CONSUMER DECISION MAKING
CH 5: BUSINESS MARKETING
CH 6: TARGET MARKETS & SEGMENTS
CH 7: MARKET RESEARCH
CH 8: PRODUCTS & SERVICE CONCEPTS
CH 9: DEVELOP & MANAGE PRODUCTS
CH 11: MARKETING CHANNELS
CH 12: RETAILING
CH 13: MARKETING COM & ADVERTISING
CH 14: PUBLIC REL, PROMOTION & SELLING
CH 15:PRICING CONCEPTS
          Chapter 13 Learning Objectives
          What Promotion Tools Are Available & What Factors
                   Influence The Choice Of Tools

          1. Discuss the role of promotion in the
             marketing mix.
          2. Discuss elements of the promotional mix.
 13       3. Describe the communication process.
          4. Explain the goal and tasks of promotion.
chapter




          5. Discuss the AIDA concept and its
             relationship to the promotional mix.
          6. Describe the factors that affect the
             promotional mix.
          7. Discuss the concept of integrated marketing
             communications.
396 Learning           Promotion Elements
    Objective   13-1   & The Marketing Mix.


                           Promotional
                             Strategy
                         A plan for the optimal
                         use of the elements of
                              promotion:
                             1. Advertising
                          2. Public Relations
                          3. Personal Selling
                           4. Sales Promotion
396 Learning                            Promotion Elements
    Objective
The Role of Promotion        13-1       & The Marketing Mix.


                         Overall                 Promotional Mix
                        Marketing
                        Objectives            •Advertising
                                              •Public Relations
                             Marketing Mix
                                              •Personal Selling
                         •   Product
                                              •Sales Promotion
                         •   Place
                         •   Promotion Plan
                                              To convince target
                         •   Price
                                              customers that the
                                              goods/services offer a
                        Target Market         COMPETITIVE
                                              ADVANTAGE over
                                              competitors
396 Learning            Promotion Elements
    Objective   13-1    & The Marketing Mix.
                              High Product Quality
                                    Cadillac

                                 Rapid Delivery
                           John Deere Overnight Parts

          Features                Low Prices
        That Provide      Walmart Everyday Low Prices
         Differential
         Advantage             Excellent Service
                             “We will pick you up”

                                Unique Features
                                  Hybrid Cars
396 Learning            Promotion Elements
    Objective   13-1    & The Marketing Mix.


                            1. Advertising
                        Impersonal, one-way
                       mass communication ...



  ...about a product,
       service or
 organization that is
paid for by a marketer.
396 Learning            Promotion Elements
    Objective   13-1    & The Marketing Mix.
                Advertising Media

       Traditional             Electronic
    Advertising Media       Advertising Media
  Television               Internet
  Radio                    Computer modems
  Newspapers               Fax machines
  Magazines
  Books
  Direct mail
  Billboards
  Transit Cards
396 Learning              Promotion Elements
    Objective   13-1      & The Marketing Mix.

                   Advertising
   Advantages                   Disadvantages
  Ability to reach large       Total cost is high
number of people at 1 time




Cost per contact is low

Can be micro-targeted
                             30 Sec    3.0 Million
397 Learning           Promotion Elements
    Objective   13-1   & The Marketing Mix.


2. Public                 The marketing function
Relations                   that evaluates public
                         attitudes, identifies areas
                          within the organization
                           that the public may be
                              interested in, and
                          executes a program of
                            action to earn public
                             understanding and
                                 acceptance.
397 Learning               Promotion Elements
    Objective   13-1       & The Marketing Mix.

                    Functions of
                   Public Relations
Evaluates public                            Executes
   attitudes                               programs to
                                           “win” public
     Ecology                                Curbside
                     Identifies areas
                                            Programs
                    of public interest
                   Recycling/Alt Energy
           Publicity: Public information
              (good or bad ) about a
            company, good, or service
           appearing in the mass media
             as a unpaid news item.
398 Learning              Promotion Elements
    Objective   13-1      & The Marketing Mix.
                3. Sales Promotion
    Marketing activities-- OTHER THAN personal
    selling, advertising, and public relations--that
        stimulate consumer buying and dealer
                     effectiveness.

                  Sales Promotion
                      Targets

        End                               Company
    Consumers      Trade Customers       Employees
     IN-STORE                           COATS, HATS
     SAMPLES             TRIPS             TRIPS
399 Learning                   Promotion Elements
    Objective   13-1           & The Marketing Mix.


       A. Free samples        SOAP IN MAIL    CHIPS IN STORE

                B. Contests      “WHY YOU LIKE...”

                   C. Premiums         BEANIE BABIES

                         D. Trade Shows      HORT: CENT
  Popular Tools
      for                     E. Vacation Giveaways
 Consumer Sales
   Promotion                           F. Coupons

                                    OUT OF STORE      IN STORE
399 Learning                 Promotion Elements
    Objective     13-1       & The Marketing Mix.


  4. Personal           Two people communicate in
  Selling               order to influence each other
    Traditional                            Relationship
      Selling                                 Selling
Planned presentation                     Accomplishment
   to one or more                           of mutual
prospective buyers to                      objectives.
    make a sale.

  CONSUMER PRD                             BUSINESS PRD
 CARS: QUICK SALE                  COMPUTERS: LONG REL
    WIN - LOSE                               WIN - WIN
400   Learning
      Objective   13-2 Marketing Communication

                           Communication
                          The process by which we
                             exchange or share
                            meanings through a
                          common set of symbols.

 Interpersonal        Categories of
Communication        Communication       Mass
                                      Communication
ONE TO FEW
                                       ONE TO MANY
PERSON TO PERSON                       IMPERSONAL
400   Learning
      Objective   13-2 Marketing Communication

                        The
                   Communication
                      Process
                         Noise

 Sender       Encoding             Decoding
                                              Receiver
  Idea        Message              Message

                         Message
                         Channel
403   Learning
      Objective   13-2 Marketing Communication


         Characteristics of Advertising
                                  A. Advertising
Communication Mode          Indirect and non-personal
Communication Control                  Low
Feedback Amount                        Little
Feedback Speed                        Delayed
Message Flow Direction                One-way
Message Content Control                 Yes
Sponsor Identification                  Yes
Reaching Large Audience                Fast
Message Flexibility       Same message to all audiences
403   Learning
      Objective   13-2 Marketing Communication


      Characteristics of Public Relations
                             B. Public Relations
 Communication Mode        Usually indirect, non-personal
 Communication Control        Moderate to low
 Feedback Amount                    Little
 Feedback Speed                    Delayed
 Message Flow Direction            One-way
 Message Content Control              No
 Sponsor Identification               No
 Reaching Large Audience         Usually fast
 Message Flexibility       Usually no direct control
403   Learning
      Objective   13-2 Marketing Communication


      Characteristics of Sales Promotion
                               C. Sales Promotion
 Communication Mode        Usually Indirect and non-personal
 Communication Control             Moderate to low
 Feedback Amount                Little to moderate
 Feedback Speed                        Varies
 Message Flow Direction          Mostly one-way
 Message Content Control                 Yes
 Sponsor Identification                  Yes
 Reaching Large Audience                Fast
 Message Flexibility           None: Same message
403   Learning
      Objective   13-2 Marketing Communication


      Characteristics of Personal Selling
                            D. Personal Selling
 Communication Mode
                           Direct and face-to-face
 Communication Control
                                    High
 Feedback Amount
                                    Much
 Feedback Speed
                                  Immediate
 Message Flow Direction            Two-way
 Message Content Control             Yes
 Sponsor Identification              Yes
 Reaching Large Audience            Slow
 Message Flexibility        Tailored to prospect
405 Learning           Promotion Elements
    Objective   13-3   & The Marketing Mix.



                        Promotion
                           Communication by
                        marketers that informs,
                        persuades, and reminds
                          potential buyers of a
                           product in order to
                        influence an opinion or
                       elicit a response and then
                                 reassures.
405 Learning              Promotion Goals, Tasks
    Objective   13-3
                             & AIDA Concept
 INFORMATIVE OBJECTIVE
    Increase Awareness CELL PHONES

    Explain How Product Works

•                         BACK OF PACKAGE

     Suggest New Uses
•

•               RICE KRISPIE BARS


•
     Build Company Image       WORLD’S LEADER IN ...
406 Learning                 Promotion Goals, Tasks
    Objective   13-3
                                & AIDA Concept
 PERSUASION OBJECTIVE
            Encourage brand switching
                     SWITCH PHONE CO
                    Change customers’
                         perception
                    of product attributes
                       HUYNDI CARS

                Influence buying decision

                 Persuade customers to call
                     “ON SALE UNTIL..”
           “IF YOU CALL RIGHT NOW, YOU WILL..”
406 Learning           Promotion Goals, Tasks
    Objective   13-3
                          & AIDA Concept

 REMINDER OBJECTIVE


• Remind customers that
  product/service may be
  needed

• Remind customers where
                              “NORTHERN OHIO
  to buy product               BUICK DEALERS

• Maintain customer
  awareness
XXX Learning           Promotion Goals, Tasks
    Objective   13-3
                          & AIDA Concept

REASSURE OBJECTIVE
   Reduce Cognitive
     Dissonance
407 Learning           Promotion Goals, Tasks
    Objective   13-3
                          & AIDA Concept

The AIDA Concept         Model that outlines the
                         process for achieving
           Action      promotional goals in terms
                         of stages of consumer
            Desire        involvement with the
                                message.

           Interest
          Attention
408 Learning                   Promotion Goals, Tasks
    Objective    13-3
                                  & AIDA Concept


         AIDA and the Promotional Mix

              Awareness Interest         Desire       Action
                  Very        Very       Somewhat        Not
Advertising     effective   effective     effective   effective

  Public          Very        Very         Very          Not
 Relations      effective   effective    effective    effective

  Sales        Somewhat     Somewhat       Very         Very
Promotion       effective    effective   effective    effective

 Personal      Somewhat       Very         Very       Somewhat
  Selling       effective   effective    effective     effective
410 Learning    13-4   Describe The Factors That
    Objective          Affect The Promotional Mix.


 A. Nature of the Product
    Product characteristics
      – Business product vs. consumer product

    Costs and risks
        HIGH COST OF PERSONAL SELLING

    Social risk            CLOTHING, JEWELRY
411 Learning            Describe The Factors That
    Objective   13-4
                        Affect The Promotional Mix.



PLC Stages: 1. Informing    3. Reminding
Introduction                            PLC Stages:
Early Growth
                                           Maturity
                        Target
                       Audience
PLC Stages:
  Growth                                   PLC Stages:
  Maturity                                    ALL
                            4. Reassuring
          2. Persuading
411 Learning                     Describe The Factors That
    Objective            13-4
                                 Affect The Promotional Mix.


B. Product Life Cycle & Promotional Mix
                                          Maturity
  Sales ($)




                                                        Decline
               Introduction      Growth


              Time
    Light    Heavy use of       Advertising,       Ads         AD/PR
Advertising, advertising,        PR, Brand      decrease.    decrease
     pre-       PR for             loyalty        Sales       Limited
introduction awareness;          Personal      Promotion,      Sales
  Publicity     sales            Selling for    Personal    Promotion,
              promotion         distribution     Selling     Personal
               for trial                       Reminder &    Selling for
                                               Persuasive   distribution
411 Learning                 Describe The Factors That
    Objective   13-4
                             Affect The Promotional Mix.


   C. Target Market Characteristics


                                FOR:
                                 Widely scattered
         Advertising              market
       Sales Promotion           Informed buyers
     Less Personal Selling       Repeat buyers
412 Learning             Describe The Factors That
    Objective   13-4
                         Affect The Promotional Mix.
   D. Type of Buying Decision
                                              Advertising
                         Routine
                                            Sales Promotion
                          Toothpaste, Soft drinks, Soap
     Type of                                  Advertising
 Buying Decision       Not Routine
                       or Complex           Public Relations
     affects
  Promotional                        Buying Wine
   Mix Choice


                        Complex             Personal Selling

                                     Buying a Boat
412 Learning           Describe The Factors That
    Objective   13-4
                       Affect The Promotional Mix.

E. Available Funds


 Trade-offs with funds available

 Number of people in target market

 Quality of communication needed

 Relative costs of promotional elements
413 Learning                   Describe The Factors That
    Objective     13-4
                               Affect The Promotional Mix.
                F. Push and Pull Strategies
                         PUSH STRATEGY
 Manufacturer       Wholesaler          Retailer       Consumer
 promotes to        promotes to       promotes to      buys from
  wholesaler           retailer        consumer         retailer

    Orders to manufacturer


                          PULL STRATEGY
                     Consumer           Retailer      Wholesaler
 Manufacturer
                      demands          demands          demands
 promotes to
                       product          product       product from
  consumer
                    from retailer   from wholesaler   manufacturer

                         Orders to manufacturer
413 Learning            Describe The Factors That
    Objective   13-4
                        Affect The Promotional Mix.


                        Integrated Marketing
                          Communications
                           A method of carefully
                              coordinating all
                          promotional activities to
                           produce a consistent,
                          unified message that is
                             customer focused.
                NEW MOVIE – NEW TOY AT McDonalds
414 Learning           Describe The Factors That
    Objective   13-4
                       Affect The Promotional Mix.



            IMC Popularity Growth

    Proliferation of thousands of media
     choices

    Fragmentation of the mass market

    Slash of advertising spending in favor
     of promotional techniques
415 Learning      Discuss The Effect Of
   Objective 13-5      Advertising

   U.S. Advertising Spending Exceeds
    $300 Billion Per Year

   Ad Industry Employs Only 155,000

   Ad Budgets Of Some Firms Exceed
    Over $4 Billion Per Year (10 Mill/Day)
  One company spending more on 1 item in one
 year that 45% of the countries in the world spend
                   on everything.
415 Learning       Discuss The Effect Of
    Objective 13-5      Advertising
      Advertising and Market Share
     New brands spend proportionately
      more for advertising than old ones.
         Frito Lay Baked vs Frito Lay Regular

     A certain level of exposure is needed
      to affect purchase habits.
        Repeated Exposure in Multiple Media
    
        Beyond a certain level, diminishing
        returns set in.
416 Learning       Discuss The Effect Of
    Objective 13-5      Advertising
     Advertising and the Consumer
     Average U.S. citizen is exposed to
      hundreds of ads each day.
         1/3 of Every TV Hour is Ads
     Advertising may change a consumer’s
      attitude toward a product.
         Repositioning
     Advertising can affect consumer ranking
      of brand attributes.
        Car Power & Speed vs Safety
416 Learning     13-6
                                  Identify Major Types Of
       Objective                        Advertising.

                                             Enhance
           Institutional                corporation’s identify
           Advertising
                                        Advocacy Advertising
    Designed to enhance a
company’s image rather than      Mobil Oil   Bud    Responsible
promote a particular product.                        Drinking
                                         Pioneering
           Product
          Advertising
                                         Competitive

Designed to tout the benefits
                                        Comparative
of a specific good or service.
416 Learning  13-6
                       Identify Major Types Of
    Objective                Advertising.
               Product Advertising
                  • Stimulates primary demand for
   Pioneering       new product or category
                      Saturn        Microsoft’s Vista

                  • Influence demand for a brand in
   Competitive      the growth phase of the PLC.
    Olay          • Often uses emotional appeal.

                  • Compares two or more competing
  Comparative       brands’ product attributes.
                  • Used if growth is sluggish, or if
 Between Brands     competition is strong.
  Ford vs Chevy       Old vs New: “New & Improved”
419 Learning 13-7 Discuss Creative Decisions In
   Objective       Developing An Ad Campaign

                        Advertising Campaign
                           A series of related
                        advertisements focusing
                          on a common theme,
                           slogan, and set of
                          advertising appeals.
 Internal               External
  Small Company          Advertising Agency
     1 or 2 People        1. Dev Adv Strategy
  Larger Companies        2. Design & Produce Ads
    Staff in Mkt Dept     3. Schedule & Buy Media
419 Learning      Discuss Creative Decisions In
             13-7
   Objective       Developing An Ad Campaign
             Steps in Creating an
            Advertising Campaign
                    Step 1. Setting
                     Advertising
                      Objectives

     Define                            Define the Time
 Target Audience     Define Desired   Frame for Change
                      Percentage
     WHO                Change          BY WHEN
Inc Sports Drinks     HOW MUCH
                                       Within 8 Months
                        15%
 Defining Advertising Goals for Measured Ad Results
420 Learning      Discuss Creative Decisions In
             13-7
   Objective       Developing An Ad Campaign
   Step 2A. Identify Product Benefits
   “Sell the Sizzle, not the Steak”
     WOMEN IN SHAVING PRODUCT ADS
   Sell product’s benefits, not its attributes
   Convenience, Pleasure, Health, Savings
  SELL STRONG BONES, NOT MILK          WONDER BREAD

   A benefit should answer
    “What’s in it for me?”

   Ask “So?” to determine
       if it is a benefit
421 Learning       Discuss Creative Decisions In
              13-7
    Objective       Developing An Ad Campaign
  2B. Common Advertising Appeals
Profit               Product saves, makes, or protects money
Health               Appeals to body-conscious or health seekers

Love or romance      Used in selling cosmetics and perfumes

Fear                 Social embarrassment, old age, losing health

Admiration           Reason for use of celebrity spokespeople

Convenience          Used for fast foods and microwave foods

Fun and pleasure     Key to advertising vacations, beer, parks

Vanity and egotism   Used for expensive or conspicuous items
Environmental
                     Centers around environmental protection
Consciousness
421 Learning      Discuss Creative Decisions In
             13-6
   Objective       Developing An Ad Campaign


                           Unique
                           Selling
                         Proposition

                     Desirable, exclusive, and
                      believable advertising
                      appeal selected as the
                      theme for a campaign.
421 Learning  13-7 Discuss Creative Decisions In
    Objective       Developing An Ad Campaign
                2C. Executing the Message
                                    1. Slice-of-
                  10. Scientific
                                        Life
   9 Musical                                       2. Lifestyle


                            Common                  3. Spokes-
 8. Demon-
                           Executional                person/
  stration
                                                    Testimonial
                             Styles
   7. Mood or
                                                   4. Fantasy
      Image
                   6. Product
                                   5. Humorous
                    Symbols

  Different Countries Have Different Acceptable Styles
             2D. Post Campaign Evaluation
421 Learning              Media Decisions in
   Objective
             13- 8
                             Advertising
                      A. Newspapers
     1. Advantages             2. Disadvantages
 a. Year-round readership    a. Limited demographic
                                selectivity
 b. Geographic selectivity
                             b. Little color
 c. Immediacy
                             c. May be expensive
 d. High individual market
    coverage                 d. Low pass-along rate

 e. Short lead time          e. Clutter
                             f. Mass market medium
426 Learning         Media Decisions in
   Objective
             13- 8
                        Advertising

                        Cooperative
                        Advertising
                     An arrangement in which
                     the manufacturer and the
                      retailer(s) split the costs
                          of advertising the
                       manufacturer’s brand.
TV AD:....AT YOUR NORTHERN OHIO BUICK DEALERS”
 MAG AD: OH FARMER: LISTS ALL OH JD DEALERS
 NEWPAPER FLYER LISTING ALL TRUE VAL STORES
426 Learning                    Media Decisions in
     Objective
               13- 8
                                   Advertising
 B. Magazines                        2. Disadvantages
    1. Advantages                  Higher cost per contact
a. Good reproduction               Long-term advertiser
                                    commitments
b. Demographic
   selectivity                     Slow audience build-up

c. Regional/local selectivity      Limited demonstration
                                    capabilities
   Ohio Farmer
d. Long advertising life           Lack of urgency
                                   Long lead time

                                  Consumer Magazine (monthly)
                                       Five to six months
 e. High pass-along rate
427 Learning                 Media Decisions in
   Objective
             13- 8
                                Advertising

 C. Radio
     1. Advantages                 2. Disadvantages
                                   a. No visual treatment
 a. Selectivity and audience
    segmentation                   b. Short advertising
                                      life
 b. Immediate and portable
                                   c. High frequency to
 c. Geographic flexibility
                                      generate retention
 d. Entertainment carryover
                                   d. Commercial clutter
 e. Short-term ad
                                   e. Background
    commitments
                                      distractions
427 Learning              Media Decisions in
   Objective
             13- 8
                             Advertising



 D. Television
                                    2. Disadvantages
     1. Advantages           Short life of message
 a. Wide diverse audience    Expensive with high
                                 campaign cost
 b. Low cost per thousand
                             Little demographic
 c. Creative & demonstrative     selectivity with network
 d. Immediacy of messages Long-term advertiser
 e. Entertainment carryover      commitments
 f. Demographic selectivity Long lead times
     with cable              Clutter
428 Learning               Media Decisions in
    Objective
              13- 8
                              Advertising

 E. Outdoor Media
      1. Advantages

  High exposure frequency
  Moderate cost                2. Disadvantages
  Flexibility
                             Short message
  Geographic selectivity
                              Lack of demographic
  Broad, diverse market        selectivity
                              High “noise” level
429 Learning             Media Decisions in
   Objective
             13- 8
                            Advertising

   F. Internet and World Wide Web
   1. Advantages               2. Disadvantages
 a. Fast growing              a. Difficult to measure ad
                                 effectiveness and ROI
 b. Ability to reach narrow
    target audience           b. Ad exposure relies on
                                 “click through”
 c. Short lead time
                              c. Not all consumers
 d. Moderate cost                have access to
                                 internet
430 Learning         Media Decisions in
   Objective
             13- 8
                        Advertising
                            1. Fax Machines
                            Unwanted Ads
                             2. Gas Pumps
                              Banner Ads
     Examples of              3. Computer
   Alternative               Screen Savers
      Media               4. Interactive Kiosks
                       Wayne Co Visitors Bureau
                        5. Ads in Movies & Videos
                                6. DVD’s
                                  AOL
431 Learning           Media Decisions in
   Objective
             13- 8
                          Advertising
   Factors Influencing Media Mix Decisions

   Cost per             The cost of reaching one
   Contact             member of the target market.
                     The number of target consumers
    Reach            exposed to a commercial at least
                        once during a time period.
                     The number of times an individual
  Frequency          is exposed to a message during a
                               time period.

  Audience             The ability of an advertising
                       medium to reach a precisely
  Selectivity                defined market.
432 Learning             Media Decisions in
   Objective
             13- 8
                            Advertising
               Media Scheduling
  Continuous             Advertising is run steadily
 Media Schedule           throughout the period.
 Detergent Ad Every Day During “As the World Turns”
    Flighted           Advertising is run heavily every
 Media Schedule       other month or every two weeks.
        Movie Advertising Before the Weekend
    Pulsing          Advertising combines continuous
 Media Schedule          scheduling with flighting.
          Year around + Additional Holiday
   Seasonal          Advertising is run only when the
 Media Schedule        product is likely to be used.
        Cough Syrup, Suntan Lotion, Perfume
          Chapter 13 Summary
          1. The role of promotion in the marketing mix.
          2. Elements of the promotional mix.
          3. The communication process.
 13       4. Explain the goal and tasks of promotion.
          5. AIDA concept and its relationship to the
chapter




             promotional mix.
          6. Factors that affect the promotional mix.
          7. Concept of integrated marketing
             communications.
Next Topic
 Chapter 14



Advertising &
Public Relations

								
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