1. Chapter 1 12
Integrated Marketing Communication: Advertising, Sales Promotion, and Public Relations

2. 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.
Explain how sales promotion campaigns are developed and implemented.
Explain how companies use public relations to communicate with their publics.

3. 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.

4. 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.

5. 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, , the Internet, and other tools to communicate directly with specific consumers.

6. The Changing Communications Environment
Two factors are changing the face of today’s marketing communications:
As mass markets have fragmented, marketers
are shifting away from mass marketing
Vast improvements in information technology
are speeding the movement toward segmented
marketing

7. 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.

8. Integrated Marketing Communication

9. 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.

10. Personal Selling
Involves personal interaction between two or more people.
Allows relationship building.
Most expensive promotion tool.

11. 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. 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.

13. Direct Marketing Many forms that share four characteristics:
Nonpublic
Immediate
Customized
Interactive
Well suited to highly targeted marketing.

14. Push vs. Pull Promotion Strategy

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

16. Major Decisions in Advertising

17. 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

18. Comparative Advertising
Progresso makes side-by-side comparisons of its soup versus Campbell’s, inviting consumers to “Enjoy a better soup…with a more adult taste.”

19. Interactive Student Assignment
Chapter 1
Choose a partner and discuss why comparative advertising is used so frequently. Do you think this approach to advertising is effective? Can you think of any situations where this type of advertising has influenced your buying behavior?

20. Setting the Advertising Budget
Affordable
Based on What the Company Thinks it Can Afford
Percentage-of-Sales
Based on a Percentage of Current or Forecasted Sales
Setting the Advertising Budget
Competitive-Parity
Set Budget to Match Competitors
Objective-and-Task
Set Objectives, Determine Tasks to Achieve Objectives,
Sum of Task Costs Equals Budget

21. Developing Advertising Strategy
Consists of two major elements:
Creating advertising messages
Selecting advertising media

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

23. A New Advertising Challenge
The new wave of personal video recorders, such as TiVo, has armed viewers with an arsenal of new-age zipping and zapping weapons.

24. Message Execution Typical Approaches Slice of Life
Testimonial Evidence
or Endorsement
Lifestyle
Scientific Evidence
Fantasy
Technical Expertise
Typical
Approaches
Mood or Image
Personality Symbol
Musical

25. Celebrity Endorsement
Nike’s association with Michael Jordan helps the brand succeed, but also emphasizes the qualities that Nike stands for.
Click the picture above to play video

26. Humor in Advertising
These days, it seems as though almost every company is using humor in its advertising, even the scholarly American Heritage Dictionary.

27. Message Execution Choose a tone Use memorable, attention-getting words
Choose correct format elements
Illustration
Headline
Copy

28. 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

29. 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

30. 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

31. Evaluating Advertising
Measure the communication effects of an ad.
“Copy Testing”
Measure the sales effects of an ad.
Is the ad increasing sales?

32. 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.
International Issues

33. 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.

34. Sales Promotion
Today’s food marketers are using more and more push promotions, including consumer price promotions.

35. Rapid Growth of Sales Promotion
Chapter 1
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

36. Sales Promotion Objectives
Chapter 1
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 relationships.

37. Consumer Sales Promotion Tools
Chapter 1
Consumer Sales Promotion Tools
Sample
Offers a trial amount of a product
Coupons
Savings when purchasing specified products
Cash Refunds
“Rebates”
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
Advertising
Specialties
Articles imprinted with an advertiser’s name given as gifts

38. Consumer Sales Promotion Tools
Chapter 1
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

39. Chapter 1
Discussion Question
Why do retailers tend to prefer rebates to coupons?

40. Trade Promotion Objectives Tools Persuade resellers to carry a brand
Give a brand shelf space
Promote brand in advertising
Push brand to customers
Discounts
Allowances
Free Goods
Push Money
Specialty Advertising Items

41. Generate business leads
Business Promotion
Objectives
Tools
Generate business leads
Stimulate purchases
Reward customers
Motivate salespeople
Conventions
Trade shows
Sales contests

42. Trade Show
More than 4,300 trade shows take place every year, drawing as many as 85 million people.

43. Developing the Sales Promotion Program
Decide on the Size of the Incentive
Set Conditions for Participation
Chapter 1
Developing the Sales Promotion Program
Decide How to Promote and
Distribute the Promotion Program
Decide on the Length of the Program
Evaluate the Program

44. 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.

45. 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.

46. Public Relations Functions
Press relations or press agency
Product publicity
Public affairs
Lobbying
Investor relations
Development

47. Public Relations Tools
News
Speeches
Special events
Buzz marketing
Mobile marketing
Written materials
Audiovisual materials
Corporate identity materials
Public service activities
Company Web site

48. Rest Stop: Reviewing the Concepts
Chapter 1
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.
Explain how sales promotion campaigns are developed and implemented.
Explain how companies use public relations to communicate with their publics.