Integrated Marketing Communication Advertising, Sales, Promotion - PowerPoint

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					Integrated Marketing
   Communication:
  Advertising, Sales,
Promotion, and Public
      Relations
     Chapters 15, 16
 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.


                                             12 - 2
Road Map: Previewing the
       Concepts
• Explain how sales promotion campaigns are
  developed and implemented.
• Explain how companies use public relations
  to communicate with their publics.




                                          12 - 3
Marketing Communications
           Mix
•   Advertising
•   Sales Promotion
•   Public Relations
•   Personal Selling
•   Direct Marketing


                       12 - 4
    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 - 5
         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 - 6
       Personal Selling
•   Involves personal interaction
    between two or more people.
•   Allows relationship building.
•   Most expensive promotion tool.



                                     12 - 7
      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 - 8
      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 - 9
         Direct Marketing
•       Many forms that share four
        characteristics:
        Nonpublic
        Immediate
        Customized
        Interactive
•       Well suited to highly targeted
        marketing.
                                         12 - 10
                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 - 11
          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 - 12
    Setting the Advertising
            Budget

•   Affordable
•   Percentage-of-Sales
•   Competitive-Parity
•   Objective-and-Task


                              12 - 13
    Developing Advertising
          Strategy
•       Consists of two major elements:

        Creating advertising messages

        Selecting advertising media



                                          12 - 14
    The Message Strategy
•   Identify Customer Benefits
•   Develop Compelling Creative
    Concept—the “Big Idea”
•   Advertising Appeals Should Be:
    Meaningful, Believable, &
    Distinctive

                                     12 - 15
       Message Execution
•   Slice of Life   •   Personality Symbol
•   Lifestyle       •   Technical Expertise
•   Fantasy         •   Scientific Evidence
•   Mood or         •   Testimonial or
    Image               Endorsement
•   Musical

                                         12 - 16
        Message Execution
•       Choose a tone
•       Use memorable, attention-getting
        words
•       Choose correct format elements
        Illustration
        Headline
        Copy

                                       12 - 17
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 - 18
    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 - 19
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 - 20
Evaluating Advertising
•       Measure the communication
        effects of an ad—“Copy Testing”
•       Measure the sales effects of an ad
        Is the ad increasing sales?




                                         12 - 21
      Other Advertising
       Considerations
•   Small Companies
•   Large Companies
•   Advertising Agency
•   International Issues



                           12 - 22
      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 - 23
        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 - 24
Sales Promotion Objectives


•   Consumer Promotions
•   Trade Promotions
•   Sales Force Promotions



                             12 - 25
    Consumer Sales Promotion
             Tools
•    Samples           •   Patronage
•    Coupons               Rewards
•    Rebates           •   Point-of-Purchase
                           Promotions
•    Cents-off Deals
                       •   Contests
•    Premiums
                       •   Sweepstakes
•    Advertising
     Specialties       •   Games


                                           12 - 26
          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 - 27
        Business Promotion
•       Objectives:
         Generate business leads
         Stimulate purchases
         Reward customers
         Motivate salespeople
•       Tools:
         Conventions, trade shows, sales contests


                                                 12 - 28
    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 the Length of the Program
•   Evaluate the Program

                                  12 - 29
      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 - 30
Public Relations Functions
•   Press relations   •   Lobbying
    or press agency

•   Product           •   Investor
    publicity             relations

•   Public affairs    •   Development

                                        12 - 31
    Public Relations Tools
•   News             •   Audiovisual
•   Speeches             materials
•   Special events   •   Corporate identity
•   Buzz marketing       materials
•   Mobile           •   Public service
    marketing
                         activities
•   Written
    materials        •   Company Web site

                                          12 - 32
Rest Stop: Reviewing the Concepts

•   Discuss the process and advantages of
    integrated 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.

                                         12 - 33
Rest Stop: Reviewing the Concepts

•   Explain how sales promotion
    campaigns are developed and
    implemented.
•   Explain how companies use public
    relations to communicate with
    their publics.

                                   12 - 34