12 Integrated Marketing Communication Advertising Sales Promotion and

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

Marketing Communication Mix or Promotion Mix Product’s Design Product’s Price Stores that Sell the Product’s Package 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

Marketers Have Shifted Away From Mass Marketing Less Broadcasting 2 Factors are Changing the Face of Today’s Marketing Communications: Improvement in Information Technology Has Led to Segmented Marketing More Narrowcasting Market Fragmentation Led to Media Fragmentation The Changing Communications Environment 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

A View of the Communications Process Marketers View Communications as the Management of the Customer Relationship Over Time Through the Following Stages: Preselling Selling Post. Consumption Consuming 12 -14

Push vs. Pull Promotion Strategy 12 -15

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 -16

What is Advertising? Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor. 12 -17

Major Decisions in Advertising 12 -18

Setting Advertising Objectives Informative Advertising Inform Consumers or Build Primary Demand Persuasive Advertising Build Selective Demand Advertising Objective Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time Reminder Advertising Comparative Advertising Keeps Consumers Compares One Brand Thinking About a Product to Another 12 -19

Setting the Advertising Budget Based on What the Company Thinks it Can Afford Based on a Percentage of Current or Forecasted Sales 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 and Companies are Realizing the Benefits of Planning These Two Elements Jointly. Creating the Advertising Selecting the Advertising Media Messages 12 -21

The Message Strategy Identify Customer Benefits Develop Compelling Creative Concept The “Big Idea” Advertising Appeals Should Be Meaningful, Believable, & Distinctive 12 -22

Message Execution Testimonial Evidence Scientific Evidence Technical Expertise Typical Message Execution Styles Lifestyle Fantasy Musical 12 -23

Message Execution • Choose a tone • Use memorable, attention-getting words • Choose correct format elements – Illustration – Headline – Copy 12 -24

Selecting Advertising Media – Percentage of people exposed to ad – Number of times a person is exposed to ad – The qualitative value of a message exposure through a given medium 12 -25

Choosing Media Type • Factors to consider: – Media habits of target consumers – Nature of the product – Type of message – Cost – Media vehicles 12 -26

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 -27

Evaluating Advertising Program Evaluation (Copy Testing) Is the Ad Communicating Well? Is the Ad Increasing Sales? 12 -28

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 -29

International Advertising Decisions Advertising Media Differ Considerably in Availability and Cost Comparison Ads Not Acceptable in All Countries Programs Must be Matched to Local Cultures and Customs 12 -30

Advertising to the World’s Consumers REACHING PEOPLE (media spending per capita for top-ranking and bottom ranking countries, 1996) RANK 1 2 3 4 5 6 7 8 COUNTRY Japan United States France Germany Netherlands Denmark Belgium United Kingdom PER-CAPITA MEDIA SPENDING* $2, 137 1, 861 1, 845 1, 593 1, 517 1, 504 1, 357 1, 286 12 -31

continued RANK 9 10 126 127 128 129 130 COUNTRY Hong Kong Australia Tanzania Vietnam Nigeria China Laos PER-CAPITA MEDIA SPENDING* $1, 180 1, 166 $4. 10 2. 92 2. 77 2. 62 0. 41 *Author’s estimates based on various sources. 12 -32

Commercials Shown Per Hour Turkey 57 Philippines 40 China 38 France 36 Mexico 34 Thailand 33 Australia 30 United Kingdom 16 0 10 20 30 40 50 60 12 -33

What is Sales Promotion? Sales Promotion Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Offers Reasons to Buy NOW. 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 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 relationship building. 12 -36

Consumer Sales Promotion Tools Offers a trial amount of a product Coupons Savings when purchasing specified products 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 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

Trade Promotion Objectives Tools Persuade resellers to carry a brand Give a brand shelf space Promote brand in advertising Push brand to customers Push Money Specialty Advertising Items 12 -39

Business Promotion Objectives Tools Generate business leads Stimulate purchases Reward customers Motivate salespeople 12 -40

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 -41

What is 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 -42

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 -43

Major Public Relations Functions Product Publicity Public Relations Departments May Perform Any or All of the Following Functions: Investor Relations Development 12 -44

Major Public Relations Tools Speeches Public Service Activities Special Events Corporate Identity Materials Audiovisual Materials 12 -45

Major Public Relations Decisions Choosing the Public Relations Messages and Vehicles Implementing the Public Relations Plan Evaluating Public Relations Results 12 -46