Advertising and Promotion An Integrated Marketing Communications Perspective George E. Belch & Michael A. Belch Both of San Diego State University Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998 1 1

An Introduction to Integrated Marketing Communications Chapter 1 An Introduction to Integrated Marketing Communications Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1998 2 2

MARKETING Marketing is 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. Concept of satisfaction and exchange are at the core of the marketing Two key tasks of marketing manager : Determination of specific target markets Marketing management, i.e., manipulation of M-Mix variables to best satisfy the needs of individual target markets. Relationship marketing :involves creating ,maintaining ,and enhancing long-term relationship with customers &stakeholders

Integrated Marketing Communications (4As ) 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 marketing, sales promotion, and public relations- and combines these disciplines to provide clarity, consistency, and maximum communications impact. Slide 1-1 Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1998 3 3

Reasons for the growing importance of IMC Understanding the value of strategically integrating the various communications functions rather than having them autonomously. Adaptation by marketers to changing environment through coordinating their marketing communications efforts. New technologies and format create new ways of marketing communications. decline in audience size for traditional media. The major reason of growing the importance of IMC is that it plays a major role in the process of developing and sustaining brand identity and equity (Name ,logo , symbol .design ,packaging , & image.

The Promotional Mix Slide 1-2 Figure 1-1 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998 4 4

Advertising: Any paid form of no personal communication about organization goods by identified sponsor Direct Marketing : Communicate directly with customers to generate transaction. (catalogs , direct mail, data base management , direct sale ,telemarketing ,direct mail) Sales Promotion: Marketing activities that provide extra value incentives to sales force ,distributors and ultimate customers. Publicity: Any not paid & identified of no personal communication about organization goods by identified sponsor it comes in form news Public relation: Management functions which evaluate public attitudes identified the policies and procedures of organization with the public interest. Personal selling: A form of person to person communication in which seller attempt to persuade buyers to purchase the company products or services.

Classifications of Advertising Advertising to Consumer Markets National Advertising: Done by large companies in a country Retail/Local advertising Primary Advertising: For general product Selective Demand: Advertising for specific brand Advertising to Business Markets Business to Business Advertising: Targeted individuals who buy for organizations Professional Advertising: Doctors ,lawyers Trade advertising: Targeted wholesalers Advertising To The Consumer Market National Advertising - advertising done by a company on a nationwide basis or most regions of the country that is targeted at the consumer market Retail/Local Advertising - advertising done by major retailers or smaller local merchants to encourage consumers to patronize their stores or use their local services (banking, restaurants) Primary versus Selective Demand Advertising - primary demand advertising - advertising designed to stimulate demand for the general product class or an entire industry Selective demand advertising - advertising that focuses on creating demand for a specific company's product or service Advertising To the Business and Professional Market Industrial Advertising - advertising that is targeted at individuals who influence the purchase of industrial goods or other services Professional Advertising - advertising targeted to professional groups such as doctors, lawyers, dentists or engineers Trade Advertising - advertising directed to resellers such as wholesalers and retailers to encourage them to carry a company's products Slide 1-3 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998 5 5

An Integrated Marketing Communications Planning Model The promotional plan provides a framework for developing, implementing, and controlling an organization's integrated marketing communication program and activities (Figure 1-4 in the text). Slide 1-4 Figure 1-4 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998 6 6

An Integrated Marketing Communications Planning Model (cont.) Slide 1-5 Figure 1-4 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998 7 7