5 Objectives To review the various elements of the promotional mix To introduce the concept of integrated marketing communicationsTo summarize the IMC planning process and examine the steps in a marketing communications programTo examine how various elements must be coordinated to communicate effectively with the IMC perspective
6 Marketing Defined The process of planning and executing and __________ of _____, _____, and_______ to create ________ that satisfyindividual and organizational objectives.American Marketing Association
7 Marketing Defined The process of planning and executing the conception, pricing, promotion,and distribution of _____, _____, and_______ to create ________ that satisfyindividual and organizational objectives.American Marketing Association
8 Marketing Defined The process of planning and executing the conception, pricing, promotion,and distribution of ideas, goods andservices to create ________ that satisfyindividual and organizational objectives.American Marketing Association
9 Marketing Defined The process of planning and executing the conception, pricing, promotion,and distribution of ideas, goods andservices to create exchanges that satisfyindividual and organizational objectives.American Marketing Association
10 The Marketing & Promotional Mixes Product or servicePricing policyDistribution method (Place)Marketing communications mix (Promotion)AdvertisingDirect marketingSales promotionPublicity/public relationsPersonal selling
11 Marketing plan : is a written document that describes the overall marketing strategy and programs developed for an organization, product line, or brand.
12 AdvertisingAny paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.
13 Advertising Marketers use advertising to: create brand image strike a responsive chord with consumers when differentiation using other elements of the marketing mix is difficultcreate symbolic appeals for a company or brandtake advantage of the fact that advertising is a very cost-effective method of reaching a large audience
14 Advantages of Advertising: cost-effective way for communicating, with large audiencesability to create images and symbolic appeals and for differentiating similar products and servicesability to strike audience through creative advertisingability to control the message (what, when and how something is said and where it is delivered.
15 Disadvantages of Advertising: the cost of producing and placing ads can be very high, particularly television commercials,it can be difficult to determine the effectiveness of advertisingthere are credibility and image problems associated with advertising
17 ShowNetPrice***Change1FriendsNBC$473,5003.9%2Will & Grace$414,50010.1%3ER$404,814-7.7%4SurvivorCBS$390,367-6.8%5Scrubs$360,95022.5%6Coupling$316,400*7CSI$310,32410.8%8The SimpsonsFox$296,44019.4%924$292,20058.3%10Mon. FootballABC$272,867-8.4%The "Change" field represents the difference from last season. * 'Coupling' is a new show. There is no previous season comparison number.***Price is the cost of placing a 30 second ad in the particular show
18 Rakamlarla reklam...Türkiye'de reklam sektörünün GSYH'ye oranı binde 5. Bu oran bazı gelişmiş ülkelerde yüzde 2Türkiye'de 24'ü ulusal, 76'sı kablo, diğerleri bölgesel ve yerel olmak üzere 340 televizyon kanalı var34 ulusal gazate yayımlanırken, düzenli reklam alan 250 dergi bulunuyor2006'da 14 bin firma 17 bin marka için reklam verdiTam hizmet veren reklam ajansı sayısı 100'ü buluyor
19 In 2005 in TurkeyOne of the indicators of improvement in advertising sector is number of new ads of firms and brands other one is the number of ads in total.Last year 717 brands advertised for the first time.In total 13,810,636 second of ads were runTV shows were taking the lead. National TV shows in total had 10,335,659 seconds of ads.Foreign TV shows in total had 5,726,725 seconds of ads.Number 1 was (with syndications) "Çocuklar Duymasın“ It was aired 382 times and had 515,073 seconds of ads.Number 2 was "En Son Babalar Duyar". It was aired 366 times and had 469,754 seconds of ads.
20 By 2007 February What are the most watched TV shows? Binbir Gece (Kanal D)Avrupa Yakası (atv)Acı Hayat (Show TV)Sıla (atv)Arka Sokaklar (Kanal D)Yaprak Dökümü (Kanal D)Sağır Oda (Kanal D)Cennet Mahallesi (Show TV)Candan Öte (Star)Karagümrük Yanıyor (Star)Ihlamurlar Altında (Kanal D)
22 What are the TV shows that get the most # of ad placements? TV Chn Show #of Ads TV Chn Show #of AdsStv Sirlar Dünyas? Kanal 7 Kalp Gözü 827Stv Be?inci Boyut Show TV Aci Hayat 741Stv Büyük Bulu?ma Kanal 7 Eksi 688Atv Avrupa Yakas? Star. Köprü 640Stv Yagmurdan Sonra Atv Sila 626Stv Yeseren Düsler Show TV Ezo Gelin 563Atv Söhret Show TV Emret Komutan 532Atv Selena Show TV Yanik Koza 509Star Iki Aile Show TV Cennet Mahalle 504
23 27 AUGUST-02 SEPTEMBER 2007 Most Advertised 10 Brands No Brand # of ads Brand Duration(sn)1 Ülker İçim Kosla2 Turkcell Süper Ligi Turkcell3 Clear Ülker İçim4 Beko Turkcell Süper Ligi5 Denizbank THY6 Bellona İş Bankası7 Domestos Clear8 İstikbal Ülker Colaturka9 Elidor Dove10 Turkcell Beko
24 Most Advertised Industries No Industry # of Ads Industry Duration(sn)1 Gıda Gıda2 Finans Finans3 Kozmetik Ev Temizlik4 Ev Temizlik Kozmetik5 Kişisel Bakım Kişisel Bakım6 Tekstil / Deri İletişim Tekno7 İnşaat/Emlak Yayıncılık8 Yayıncılık İnşaat/Emlak9 İletişim Tekno Otomotiv10 Dayanıklı TM Tekstil / Deri
25 What about NewspapersWhat are the newspapers with the most ad placements?HürriyetZamanSabah
26 Circulation??? 03-09 September 2007 Weekly Circulation NumbersPosta HürriyetZaman SabahP.Fotomaç TakvimFanatik VatanMilliyet AkşamGüneş TürkiyeYeni Şafak BugünStar SözcüCumhuriyet E. FotosporA.Vakit A.ŞokYeni Çağ Milli GazeteRadikal H.O.Tercüman
27 Classifications of Advertising National advertisingRetail/local advertisingAdvertising to increase demandPrimary demand for the product categorySelective demand for a specific brandBusiness & professional advertisingBusiness-to-business advertisingProfessional advertisingTrade advertising
28 Sales PromotionMarketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales.
29 Advantages of Sales Promotion provides extra incentive to consumer or middlemenway of appealing to price sensitive consumereffects can often be more directly measured than those of advertisingcan be used as a way of building or reinforcing brand equity
30 IMC and BrandingBrand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.2003 Brand Value(Billions of Dollars)1. Coca-Cola $70.52. Microsoft $65.13. IBM $51.84. GE $42.35. Intel $31.16. Nokia $29.47. Disney $28.08. McDonald’s $24.79. Marlboro $22.210. Mercedes $21.4Relation to text This slide relates to material found on pp14-15 and IMC Perspective 1-2 of the text.Summary Overview With more and more products and services available to consumers, developing and maintaining brand identity is becoming increasingly more important. Well known brands have a major competitive advantage in today’s marketplace. A well-defined and coordinated IMC plan contributes to overall brand identity and equity.Use of this slide This slide can be used to define brand identity and discuss the importance of building and sustaining strong brand identity. The list of the 10 most valuable brands, as measured by the brand consultancy company Interbrand, should be familiar to your students. You might discuss how these popular brands may have a competitive edge with consumers during the purchase decision process.IMC plays a major role in the process of developing and sustaining brand identity and equity.
31 Intel’s Advertising Helps Build Brand Equity Relation to text This slide relates to the material in IMC Perspective 1-2 on p. 15 regarding the power of brands.Summary Overview This slide contains a commercial from one of the phases of the “Intel Inside” advertising campaign. As shown in the table in IMC Perspective 1-2, Intel is one of the world’s 10 most valuable brands. Intel spends over $1 billion a year globally on advertising which makes it the world’s leading high tech advertiser.The commercial shown here features Intel’s “Bunny People” who were introduced in early 1997 as part of the advertising campaign for the Pentium II microprocessor with MMX technology. The Bunny People are a takeoff of the workers who wear so-called bunny suits to keep chip labs sterile. The spot shows the technicians adding something new to Intel’s Pentium processor – fun in the form of MMX technology. It then shows the Bunny People dancing to the’70s disco hit – Play That Funky Music.Use of this slide The Intel commercial can be used as part of a discussion of branding and the role advertising plays for companies in developing and maintaining a strong brand image. Intel has used a variety of advertising campaigns over the past 12 years to strengthen its brand image and demonstrate the power of its various generations of Pentium processors.
32 Disadvantages of Sales Promotion many companies are becoming too reliant on sales promotion and focusing too much attention on short-run marketing planning and performanceshort-term sales gains are often achieved at the expense of long-term brand equity
33 Types of Sales Promotion Customer-orientedTrade-oriented
34 Public RelationsThe management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.Tools used by public relationsPublicitySpecial publicationsCommunity activity participationFund-raisingSpecial event sponsorshipPublic affairs activities
35 PublicityNon-personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship.Publicity is NOT advertising.Advertising.Paid, sponsor-identified, non personal (media) communications.Publicity.Non-paid, unsponsored, non personal (media) communications.
36 Publicity VehiclesNews releases: Single-page news stories sent to mediaFeature articles: Larger manuscriptsCaptioned photosPress conferencesSpecial events: Sponsorship of events, teams, or programs of public value.
37 Advantages of Publicity credibility of publicity is usually higher than otherlow cost way of communicatingoften has news value and generatesword‑of‑mouth discussion among consumers
38 Disadvantages of Publicity lack of control over what is said, when, where andhow it is saidcan be negative as well as positive
41 Advertising Versus Publicity FACTOR ADVERTISING PUBLICITYControl Great LittleCredibility Lower HigherReach Achievable UndeterminedFrequency Schedulable LowCost Specific UnspecifiedFlexibility High LowTiming Specifiable Tentative
42 Direct Marketing Direct marketing methods. Direct mail. Cataloging. Organizations communicate directly with target customers to generate a response and/or transaction.Direct marketing methods.Direct mail.Cataloging.Telemarketing.Direct response ads.Internet sales.
43 Personal SellingA form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase to company’s product or service or act on an idea.flexibility exists to tailor the message to the customers specific need or situation.
44 Advantages of Direct Marketing changes in society- convenienceAbility to be selective and target its marketing communications to specific customer segmentsmessages can be customizedeffectiveness of direct-marketing efforts are easier to assess than other forms of promotion
45 Disadvantages of Direct Marketing consumers and businesses bombarded with unsolicited mail and phone calls which makes them less receptive to direct-marketingdirect marketing has image problemsproblems with clutter
46 Relationship Marketing Marketing Focuses on EXCHANGEnature of exchange what is needed for this process to occur including:two or more parties with something of value to one another;and a way for the parties to communicate with one another.
47 ________________is the process of creating, maintaining and enhancing long-term relationships with individual customers as well as other stakeholders for mutual benefit.
48 Relationship Marketing is the process of creating, maintaining and enhancing long-term relationships with individual customers as well as other stakeholders for mutual benefit.
49 Ford Motor CompanyFord’s Vision: To become the world's leading consumer company for automotive products and services
50 Integrated Marketing Communications A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines -- for example, general advertising, direct response, sales promotion, and public relations -- and combines these disciplines TO PROVIDE CLARITY, CONSISTENCY, and maximum COMMUNICATIONS IMPACT.
51 Integrated Marketing Communications Coordinating the various promotional elements and other marketing activities that communicate with the firm’s customers.
52 Reasons for Growth of IMC Planning efficiency and effectiveness.Consumer adoption of technology and media.Innovative marketing practices.Customer’s point of viewRelationship MarketingPlanning efficiency and effectiveness.By coordinating marketing communication efforts companies avoid duplication, take advantage of synergy, and develop more efficient and effective programs.Consumer adoption of technology and media.Consumers lifestyles and purchasing behavior are changing as they adopt new technologies.Traditional media are facing declining audiences and less responsive consumers.Innovative marketing practices.A shift in marketplace power from manufacturers to retailers.A shifting of marketing dollars from media advertising to other forms of promotion.Customer’s point of view.All elements of the promotional campaign have to be carefully linked in some manner so that the message is clear and does not misrepresent the brand.A movement away from relying on advertising- focused approaches to solve communication problems.
53 Planning for IMC: Promotional Management Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.Considerations for developing the promotional mix include:Type of product.Buyer’s decision processStage of product life cycleChannels of distribution
54 Situation Analysis Internal analysis. Internal factors. Assesses relevant areas involving the product/service offering and the firm itself.Internal factors.Assessment of the firm’s promotional organization and capabilities.Review of the firm’s previous promotional programs.Assessment of firm or brand image and implications for promotion.Assessment of relative strengths and weaknesses of product/service.
55 Situation Analysis External factors. External analysis. Focuses on factors such as characteristics of a firms customers, market segments, environment and competitors.External factors.Customer analysis.Competitive analysis.Environmental analysis.
56 Situation Analysis Internal Factors External Factors Assessment of the firm’s promotional organization and capabilitiesReview of the firm’s previous promotional programsAssessment of firm or brand image and implications for promotionAssessment of relative strengths and weaknesses of product/serviceExternal FactorsCustomer analysisCompetitive analysisEnvironmental analysis
57 SUM UP Various elements of the promotional mix IMC planning process Steps in a marketing communications programCoordination to communicate effectively with the IMC perspective
58 Next Class Understanding how firms organize advertising and IMC Examining methods for selecting, compensating and evaluating Ad AgenciesExplaining the role of specialized marketing communications organizationsTo do!!!Read Chapter 2