1. MT 219 Marketing Unit Seven Integrated Marketing Communications Dr. Bea Bourne Note: This seminar will be recorded by the instructor.

2. 2 Before we get started: If you have any troubles in seminar, please do call Tech Support at: 1-866-522-7747 They can assist if you get “bumped” from the seminar room or experience other difficulties.

3. Review of Unit 6 In Unit 6, we looked at the way producers of goods get their products into the hands of consumers through distribution channels and by developing a sound supply chain management system. We also looked at the different types of intermediaries in the distribution process, particularly with regard to wholesalers and retailers

4. Reading Assignment Chapters 16, 17, & 18

5. Our Topics for This Week In this unit, we will look at the necessity of having an integrated marketing communications (IMC) strategy in promoting products. We are also going to start an examination of each of the five elements of the promotion mix and provide insight into how each of these elements can help provide consumers with the information they need to make purchase decisions. Questions

6. Outcomes After completing this unit, you should be able to: Understand the importance of the promotion mix and integrated marketing communications within the marketing mix Comprehend the AIDA concept and its relationship to the promotional mix Discuss the effects of advertising on consumers Understand the role of public relations in the promotional mix Define and state the objectives of sales promotion Describe the steps in the selling process

7. The Promotion Mix Four elements of the promotional mix: Advertising Public Relations Personal Selling Sales Promotion The fifth- Direct Marketing will be explored in Unit 8.

8. Integrated Marketing Communications Assuring consistent messages through the coordination of promotional efforts The objective is to generate maximum informational and persuasive impact Generally, all five of the promotional mix are used to get maximum effect- advertising, personal selling, sales promotion, direct marketing and publicity

9. Promotion mix strategies- Push vs. Pull Push - budgets are directed to resellers, often through personal selling Pull – budgets are directed to the consumer, often through advertising and promotion

10. Advertising Paid non-personal communication through mass media Advantages -Cost efficient on a per person reached basis -Highly flexible, and allows for repetition -Adds value -Lends legitimacy Disadvantages -Out of pocket outlay is high -Hard to measure sales effect unless source coding is used -Feedback usually slow

11. Types of Advertising Institutional Advocacy Product Pioneer Competitive Comparative Reminder Reinforcement

12. Major Advertising Objectives Inform Persuade Remind Good way to remember this is R.I.P.

13. Budget Decisions Affordable Percent of sales Competitive parity Objective and task

14. Developing Advertising Strategy Two major elements- Creating advertising messages and media selection Key issues in developing advertising strategy -Breaking through the clutter -The need to make advertisements that break through clutter

15. Message Strategy Message should be -Relevant and important -Believable -Executable -Able to convey competitive advantage -Memorable -Undertake some effect to move consumer towards some action -Consistent with other parts of the promotional mix

16. Media Decisions Sets reach, frequency and impact objectives Select major media types Specific methods- media vehicles and schedule Set media scheduling patterns

17. What are the advantages and disadvantages of TV advertising?

18. Television Advantages Large audiences Low cost per person reached Sight and sound Visible Confers legitimacy Disadvantages High out of pocket cost Perishable Waste coverage

19. What are the advantages and disadvantages of Internet advertising?

20. The Internet Advantages Extremely selective Interactive Low cost Immediate feedback Disadvantages Viewers controls viewing Fairly low impact on viewer

21. What are the advantages and disadvantages of Newspaper advertising?

22. Newspapers Advantages Reaches large audiences Purchased to be read Short lead time Frequent publication Believable Good for comparison Can cover local areas Disadvantages Not selective socioeconomic ally Short life Poor reproduction Cluttered Not as popular as they once were

23. What are the advantages and disadvantages of Direct Mail advertising?

24. Direct Mail Advantages Very selective Flexible and selectable segments Can be personalized Can arrive in solo package Disadvantages Considered as junk mail High cost per exposure

25. What are the advantages and disadvantages of Magazine advertising?

26. Magazines Advantages Selectivity Good reproduction Long life Prestigious Full color ads Disadvantages High absolute dollar cost Long lead time

27. What are the advantages and disadvantages of Radio advertising?

28. Radio Advantages Inexpensive Flexible Targeted Disadvantages Audio only Background medium Short life

29. Outdoor Advertising Advantages Flexible Can provide heavy exposure Low cost per exposure Good placement selectivity Disadvantages No good audience selectivity Creative limitations People may ignore

30. Measuring Advertising Effectiveness A critical part of every advertising campaign. Provides feedback on whether the campaign objectives were fulfilled. The effectiveness is difficult to measure, except for direct mail

31. Public Relations Communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. Also called publicity. Individual brands generally have publicity/public relations done at the corporate level. Some people call this “free advertising,” but is can be expensive and must be done well to be effective. Examples?

32. Personal Selling Paid Personal Communication Advantages -Provides significant impact on customers due to personal contact -Interactive- Allows for immediate impact and adjustment Disadvantages -Costly- most costly part of promotion based on people reached If it is so costly, why is it done?

33. Steps in Managing the Sales Force Designing sales force strategy and structure - Structure-Territory, Product or Customer-based -Size of sales force -Outside or inside sales force -Individual or team selling Recruiting and selecting salespeople Training salespeople

34. Steps in Managing the Sales Force- cont. Compensating salespeople -Commission -Salary -Combination Supervising and motivating salespeople Evaluating salespeople’s performance

35. The Personal Selling Process Prospecting Pre-approach- Research is important Approach Presentation Handling objections Closing the Sale Follow-up- To help ensure subsequent purchases

36. Sales Promotion Direct incentive to buy Growing rapidly due to its effectiveness May be directed at salespeople, resellers, and consumers- anywhere in the distribution chain Examples include free samples, coupons, contests, premiums, rebates, buy one get one frees, frequent buyer programs, etc.

37. 37 Questions

38. Week 7 Assignment Assignment: KapConsultants’ Training: Marketing Strategy- Promotion Organizations use the Promotion component of the marketing mix to communicate and build relationships with their target market. Understanding how organizations build a promotion strategy is an integral part of learning the fundamentals of marketing. A promotional strategy is developed and employed to effectively reach consumers using the promotion mix, communications processes, and an integrated approach to managing and delivering consistent and effective messages about the product, brand, and company. As part of your training at KapConsultants, watch the following presentation on continuing the development of Section 4 of your marketing plan:

39. Week 7 Assignment continued Be sure to execute the following items to complete your Unit 7 Assignment: Watch the presentation to learn about the promotion component of the marketing mix: Download and read the example basic marketing plan to help guide your learning. Using the template provided, develop Section IV pertaining to the Promotion component of the Marketing Mix for your new product idea you will propose for your chosen company.

40. I appreciate your time and attention during our 1 hour seminar today. If you have questions, feel free to contact me: BBourne@kaplan.edu and I’ll be happy to help!BBourne@kaplan.edu See you in Class! 40 Thank you