Chapter 13 Integrated Marketing Communications: Advertising, Sales Promotion, and Public Relations.
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1 Chapter 13Integrated Marketing Communications: Advertising, Sales Promotion, and Public Relations
2 Road Map: Previewing the Concepts Discuss the process and advantages of integrated marketing communication.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.Explain how sales promotion campaigns are developed and implemented.Explain how companies use public relations to communicate with their publics.
3 American StandardYour mission – prepare a promotion campaign for American Standard’s line of toilets.Campaign materials – media ads, direct mailing, and personal contacts – to build sales and market share.
4 Marketing Communication Mix or Promotion Mix AdvertisingSales PromotionProduct’s DesignDirect MarketingProduct’s PriceStores that Sell the ProductPersonal SellingPublic RelationsProduct’s Package
5 The Changing Communications Environment Market Fragmentation Led toMedia FragmentationMarketers Have ShiftedAway From MassMarketingLess Broadcasting2 Factorsare Changing the Face of Today’sMarketing Communications:Improvement inInformation TechnologyHas Led toSegmented MarketingMore Narrowcasting
6 The Need for Integrated Marketing Communications With Integrated Marketing Communications (IMC), the Company Carefully Integrates and Coordinates Its Many Communications Channels to Deliver a Clear, Consistent, and Compelling Message About the Organization and Its Products.
8 Setting the Overall Communication Mix AdvertisingReaches Many Buyers, Repeats Message Many Times, Impersonal, ExpensivePersonalSellingPersonal Interaction, Relationship Building, Most Expensive Promo ToolSalesPromotionWide Assortment of Tools, Rewards Quick Response, Efforts Short-LivedPublicRelationsVery Believable, Dramatize a Company or Product, UnderutilizedDirectMarketingNonpublic, Immediate, Customized, Interactive
10 Advertising Advertising is centuries old. U.S. advertisers spend in excess of $244 billion each year; worldwide spending exceeds $465 billion.Advertising is used by:Business firms,Nonprofit organizations,Professionals, andSocial agencies.
12 Setting Advertising Objectives Informative AdvertisingInform Consumers orBuild Primary Demandi.e DVD PlayersPersuasive AdvertisingBuild Selective Demandi.e Sony DVD PlayersAdvertising ObjectiveSpecific Communication TaskAccomplished with a SpecificTarget AudienceDuring a Specific Period of TimeComparative AdvertisingCompares One Brandto Anotheri.e. Avis vs. HertzReminder AdvertisingKeeps ConsumersThinking About a Producti.e. Coca-Cola
13 Discussion QuestionsAdvertising objectives can be classified by primary purpose: to inform, persuade, or remind.Think of examples of ads that address each of these objectives.Using Table 13-1, discuss why your examples fit the chosen objective.This question asks the students to become involved in and make judgments of advertising objectives. Ask students to consider a variety of media formats (magazines, TV, radio, etc) to accomplish this objective or they can be instructed to “surf” the Web and investigate sites and then apply advertising objectives criteria to what they find.Table 13-1 provides several versions (within the major categories--to inform, to persuade, and to remind) that may be applied to the student’s advertisements. The students should be instructed to identify which of the sub-categories might apply.
14 Setting the Advertising Budget Methods of Setting the Advertising Budget for Each Product and Market.AffordableBased on What theCompany Can AffordObjective-and-TaskBased on DeterminingObjectives & Tasks,Then Estimating CostsPercentage-of-SalesBased on a CertainPercentage of Currentor Forecasted SalesCompetitive-ParityBased on the Competitors’Promotion Budget
15 Developing Advertising Strategy Advertising Strategy Consists of Two Major Elements and Companies are Realizing the Benefits of Planning These Two Elements Jointly.Creating the AdvertisingMessagesSelecting the Advertising Media
16 Creating the Advertising Message: Message Strategy Develop a MessageFocus onCustomer BenefitsCreative Concept“Big Idea”Visualization or PhraseAdvertising AppealsMeaningful, Believable& Distinctive
17 Developing Advertising Strategy: Message Execution Testimonial EvidenceSlice of LifeScientific EvidenceTypicalMessageExecutionStylesLifestyleTechnical ExpertiseFantasyPersonality SymbolMood or ImageMusical
18 Advertising Strategy: Selecting Advertising Media Deciding on reach, frequency, and impact.Choosing among the major media types.Media habits of target customers,Nature of the product,Types and costs of messages.Selecting specific media vehicles.Specific media within each general media type.Deciding on media timing.Scheduling advertising over the course of a year.
19 Evaluating Advertising Advertising Program EvaluationEvaluating AdvertisingCommunication Effects(Copy Testing)Is the Ad CommunicatingWell?Sales EffectsIs the Ad IncreasingSales?
20 Other Advertising Considerations Sales Departments inSmall CompaniesAdvertising Departmentsin Larger CompaniesAdvertising AgencyFirm that Assists Companiesin the Planning, Creation, &Implementation of TheirAdvertising ProgramsInternational Issues
21 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.
22 Rapid Growth of Sales Promotion Sales promotion can take the form of consumer promotions, business promotions, trade promotions, 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.
23 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, andbuy product ahead.Sales Force: getting more sales support.In general, sales promotion should focus on consumer relationship building.
24 Major Consumer Sales Promotion Tools SampleCouponsCash RefundsPrice PacksPremiumsAdvertisingSpecialtiesTrial amount of a productSavings when purchasing specified productsRefund of part of the purchase priceReduced prices marked on the label or packageGoods offered free or low cost as an incentive to buy a productArticles imprinted with an advertiser’s name given as gifts
25 Major Consumer Sales Promotion Tools Patronage RewardsCash or Other Award Offered for Regular Use of a ProductPoint-of-PurchaseDisplays or Demonstrations at the Point of PurchaseContestConsumers Submit an Entry to be JudgedSweepstakesConsumers Submit Their Names for a DrawingGamesConsumers Receive Something Each Time They Buy Which May Help Them Win a Prize
26 Interactive Student Assignments Which of the sales promotion tools described in the chapter would be best for stimulating sales of the following products or services?Gummy Bears new Black Cherry flavor,Proctor & Gamble’s efforts to bundle laundry detergent and fabric softener together in a combined marketing effort,Outpost.com attempts to help consumers remember what it sells as well as its Web address.A brief summary of the primary chief function or characteristic of each of the consumer-promotion tools would be: Samples--offer to consumers of a trial amount of a product. Coupons--certificates that give buyers a saving when they purchase a specified product. Cash refund offers (rebates)--offers to refund part of the purchase price of a product to consumers who send a proof of purchase to the manufacturer. Price packs (cents-off deals)--reduced prices that are marked by the producer directly on the label or package. Premiums--goods offered either free or at low cost as an incentive to buy a product. Advertising specialties--useful articles imprinted with an advertiser’s name that are given as gifts to consumers. Patronage rewards--cash or other rewards for the regular use of a certain company’s products or services. Point-of-purchase (POP) promotions--displays and demonstrations that take place at the point of purchase or sale. Contests, sweepstakes, and games--promotional events that give consumers the chance to win something (such as cash, trips, or goods) by luck or through extra effort.Students are free to choose from among the tools found in the list above. There really is no right or wrong answer (even though some choices or combinations are obviously better than others). Some suggestions that might be used to begin a discussion are as follows:Gummy Bears new Black Cherry flavor--samples, coupons, premiums, advertising specialties, point-of purchase, and contests, sweepstakes, and games.Proctor and Gamble decides to bundle laundry detergent and fabric softener together--coupons, price packs, premiums, and point-of-purchase.Outpost.com--advertising specialties, contests, sweepstakes, and games.
27 Major Trade Sales Promotion Tools Trade-Promotion ObjectivesTrade-Promotion ToolsDiscountsAllowancesPersuade Retailers orWholesalers to Carry a BrandGive a Brand Shelf SpacePromote a Brand inAdvertisingFree GoodsPush a Brand to ConsumersPush MoneySpecialty Ad Items
28 Major Business Sales Promotion Tools Business-Promotion ObjectivesBusiness-Promotion ToolsConventionsTrade ShowsSales ContestsGenerate Business LeadsStimulate PurchasesReward CustomersMotivate Salespeople
29 Developing the Sales Promotion Program Decide on the Size of the IncentiveSet Conditions for ParticipationDeveloping the Sales Promotion ProgramDetermine How to Promote andDistribute the Promotion ProgramDetermine the Length of the ProgramEvaluate the Program
30 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.
31 Major Public Relations Functions Press Relations or AgentryProduct PublicityPublic AffairsLobbyingInvestor RelationsDevelopmentPublic Relations Departments May Perform Any or All of the Following Functions:
32 Major Public Relations Tools NewsWeb SiteSpeechesPublic Service ActivitiesSpecial EventsCorporate Identity MaterialsWritten MaterialsAudiovisual Materials
33 Rest Stop: Reviewing the Concepts Discuss the process and advantages of integrated marketing communication.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.Explain how sales promotion campaigns are developed and implemented.Explain how companies use public relations to communicate with their publics.