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Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

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Presentation on theme: "Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“"— Presentation transcript:

1 Chapter 1 Integrated Marketing Communications

2 United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“ 10-Jan-2001

3 Last Class  Introduction!!!

4

5 Objectives  To review the various elements of the promotional mix  To introduce the concept of integrated marketing communications  To summarize the IMC planning process and examine the steps in a marketing communications program  To examine how various elements must be coordinated to communicate effectively with the IMC perspective

6 Marketing Defined The process of planning and executing the ___________, _________, ________, and __________ of _____, _____, and _______ to create ________ that satisfy individual 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 satisfy individual and organizational objectives. American Marketing Association

8 Marketing Defined The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create ________ that satisfy individual and organizational objectives. American Marketing Association

9 Marketing Defined The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. American Marketing Association

10 The Marketing & Promotional Mixes  Product or service  Pricing policy  Distribution method (Place)  Marketing communications mix (Promotion) Advertising Direct marketing Sales promotion Publicity/public relations Personal 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 Advertising Any 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 difficult create symbolic appeals for a company or brand take 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 audiences  ability to create images and symbolic appeals and for differentiating similar products and services  ability to strike audience through creative advertising  ability 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 advertising  there are credibility and image problems associated with advertising

16 Spending in $Billions [United States]

17 ShowNetPrice***Change 1FriendsNBC$473,5003.9% 2Will & GraceNBC$414, % 3ERNBC$404, % 4SurvivorCBS$390, % 5ScrubsNBC$360, % 6CouplingNBC$316,400* 7CSICBS$310, % 8The SimpsonsFox$296, % 924Fox$292, % 10Mon. FootballABC$272, % 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 2  Türkiye'de 24'ü ulusal, 76'sı kablo, diğerleri bölgesel ve yerel olmak üzere 340 televizyon kanalı var  34 ulusal gazate yayımlanırken, düzenli reklam alan 250 dergi bulunuyor  2006'da 14 bin firma 17 bin marka için reklam verdi  Tam hizmet veren reklam ajansı sayısı 100'ü buluyor

19 In 2005 in Turkey One 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 run  TV 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  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)  What are the most watched TV shows?

21 Show TV reklam fiyatlari

22 What are the TV shows that get the most # of ad placements? TV ChnShow#of Ads TV ChnShow #of Ads StvSirlar Dünyas? 908Kanal 7Kalp Gözü827 StvBe?inci Boyut 807Show TVAci Hayat741 StvBüyük Bulu?ma 718Kanal 7Eksi688 AtvAvrupa Yakas? 653Star.Köprü640 StvYagmurdan Sonra. 637AtvSila626 StvYeseren Düsler. 586Show TVEzo Gelin563 AtvSöhret. 547Show TVEmret Komutan532 AtvSelena 513Show TVYanik Koza509 Star Iki Aile 507Show TVCennet Mahalle504

23 27 AUGUST-02 SEPTEMBER 2007 Most Advertised 10 Brands  NoBrand # of adsBrand Duration(sn)  1 Ülker İçim 884 Kosla  2 Turkcell Süper Ligi 851 Turkcell  3 Clear 837 Ülker İçim  4Beko 825 Turkcell Süper Ligi  5Denizbank 785 THY  6Bellona 769İş Bankası  7Domestos 754 Clear  8 İstikbal 736 Ülker Colaturka  9 Elidor 729 Dove  10 Turkcell 674 Beko

24 Most Advertised Industries  No Industry # of Ads Industry Duration(sn)  1 Gıda Gıda  2 Finans Finans  3 Kozmetik Ev Temizlik  4 Ev Temizlik Kozmetik  5 Kişisel Bakım Kişisel Bakım  6 Tekstil / Deri İletişim Tekno  7 İnşaat/Emlak Yayıncılık  8 Yayıncılık2.245 İnşaat/Emlak  9 İletişim Tekno Otomotiv  10 Dayanıklı TM Tekstil / Deri

25 What about Newspapers  What are the newspapers with the most ad placements?  Hürriyet  Zaman  Sabah

26 Circulation??? September 2007 Weekly Circulation Numbers  Posta Hürriyet  Zaman Sabah  P.Fotomaç Takvim  Fanatik Vatan  Milliyet Akşam  Güneş Türkiye  Yeni Şafak Bugün  Star Sözcü  Cumhuriyet E. Fotospor  A.Vakit A.Şok  Yeni Çağ Milli Gazete  Radikal H.O.Tercüman

27 Classifications of Advertising  National advertising  Retail/local advertising  Advertising to increase demand Primary demand for the product category Selective demand for a specific brand  Business & professional advertising Business-to-business advertising Professional advertising Trade advertising

28 Sales Promotion Marketing 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 middlemen  way of appealing to price sensitive consumer  effects can often be more directly measured than those of advertising  can be used as a way of building or reinforcing brand equity

30 IMC and Branding Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind Brand Value (Billions of Dollars) 1. Coca-Cola$ Microsoft$ IBM$ GE$ Intel$ Nokia$ Disney$ McDonald’s$ Marlboro$ Mercedes$21.4 IMC plays a major role in the process of developing and sustaining brand identity and equity.

31 Intel’s Advertising Helps Build Brand Equity

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 performance  short-term sales gains are often achieved at the expense of long-term brand equity

33 Types of Sales Promotion  Customer-oriented  Trade-oriented

34 Public Relations The 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 relations  Publicity  Special publications  Community activity participation  Fund-raising  Special event sponsorship  Public affairs activities

35 Publicity Non-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 Vehicles  News releases: Single-page news stories sent to media  Feature articles: Larger manuscripts  Captioned photos  Press conferences  Special events: Sponsorship of events, teams, or programs of public value.

37 Advantages of Publicity  credibility of publicity is usually higher than other  low cost way of communicating  often has news value and generates  word ‑ of ‑ mouth discussion among consumers

38 Disadvantages of Publicity  lack of control over what is said, when, where and  how it is said  can be negative as well as positive

39 Advertising Versus Publicity  Advertising _____, ___________, nonpersonal (media) communications.  Publicity ___________, __________, nonpersonal (media) communications.

40 Advertising Versus Publicity  Advertising Paid, sponsor-identified, nonpersonal (media) communications.  Publicity Unpaid, unsponsored, nonpersonal (media) communications.

41 Advertising Versus Publicity  FACTORADVERTISINGPUBLICITY  ControlGreatLittle  CredibilityLowerHigher  ReachAchievableUndetermined  FrequencySchedulableLow  CostSpecificUnspecified  FlexibilityHighLow  TimingSpecifiableTentative

42 Direct Marketing 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 Selling A 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- convenience  Ability to be selective and target its marketing communications to specific customer segments  messages can be customized  effectiveness 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-marketing  direct marketing has image problems  problems with clutter

46 Relationship Marketing Marketing Focuses on EXCHANGE nature 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 Company Ford’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 view  Relationship Marketing

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 process  Stage of product life cycle  Channels of distribution

54 Situation Analysis  Internal analysis. 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 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 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  External Factors Customer analysis Competitive analysis Environmental analysis

57 SUM UP  Various elements of the promotional mix  IMC planning process  Steps in a marketing communications program  Coordination 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 Agencies  Explaining the role of specialized marketing communications organizations To do!!!  Read Chapter 2


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