Managing the “IMC” Process

Activity Think about the people you tried to persuade over the last day or two. –Who were the people? –What were you trying to accomplish? –Were you successful? If so, why? If not, why not?

Major Types of Advertising Enhance corporation’s identify Pioneering Competitive Comparative ProductAdvertisingProductAdvertising InstitutionalAdvertisingInstitutionalAdvertising Advocacy advertising

Money and Trust…

Advertising Campaign A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.

Creating the Ad Campaign Determine the advertising objectives. Make creative decisions. Make media decisions. Evaluate the campaign.

Objectives Inform, Persuade, Remind Where in PLC? Where in AIDA? What other important factors? Be specific, quantifiable and time oriented

Common Advertising Appeals Profit Health Love or romance Fear Admiration Convenience Fun and pleasure Vanity and egotism Environmental Consciousness Environmental Consciousness Product saves, makes, or protects money Appeals to body-conscious or health seekers Used in selling cosmetics and perfumes Social embarrassment, old age, losing health Reason for use of celebrity spokespeople Used for fast foods and microwave foods Key to advertising vacations, beer, parks Used for expensive or conspicuous items Centers around environmental protection

Mood or Image Musical Demon- stration Demon- stration Scientific Real/ Animated Product Symbols Real/ Animated Product Symbols Fantasy Lifestyle Slice-of-Life Humorous CommonExecutionalStylesCommonExecutionalStyles Spokes- person/ Testimonial

What people say they like…

Demonstration

Slice of Life

Testimonial

Lifestyle

Media Decisions (know the +/- of each) Newspapers Magazines Radio Television Outdoor Internet Alternative Media Major Types ofAdvertisingMedia ofAdvertisingMedia

The New Tactics Video games (Media & Marketing News July 28, 2004) 14.2% people play videogames for leisure; 64 hours spent playing games in 2002; 42 million own gaming console Nascar 2005 Chase for the Cup – Advertisers include AutoZone, Dodge, Levi’s Signature, Mr. Clean AutoDry, Old Spice Jeep’s Trail of Life – 250,000 downloads & 40% intentions US Army – America’s Army PC online and CD-Rom Online tactics (USA Today June 22, 2004) Burger King is the King – subservient chicken & Ugoff BMW Films Online expected to exceed print advertising by 2007

The New Tactics Longer Ads (Wall Street Journal July 22, 2004) Moving from :30 to 2 minute ads Stella Artois beer, P&G, Honda, Under Armour Advertainment (USA Today June 22, 2004) Mattel’s Hot Wheels will star in a feature length movie Yahoo’s Times Square billboard where 800 number got consumers racing cars for all to see Cinema Advertising Creativity in outdoor (adidas)

Media Terms to Know Media planning – series of decisions involved in delivering the message to the target audience. Media objectives – objectives sought by the plan Medium – general category of media channels [broadcast, print] Media vehicle – specific carrier in the media category [television, magazine & specifics]

Media Concepts to Know Designated Market Areas (DMA) – NYC is largest Cost Per Thousand (CPM) – used for print cost comparison Cost Per Rating Point (CPRP) – used for broadcast cost comparison Sweeps – Neilson Grading (4 times a year) – currently testing a new method – The people meters.

Comparing Media Costs - Magazines Time MagazineNewsweek Magazine Per page cost$156,000$144,000 Circulation4 million3.1 million Calculation of CPM156,000 x 1000/4 million 144,000 x 1000/3.1 million CPM$39.00$46.45

Media Selection Criteria Cost per Contact ContactReachReach FrequencyFrequency AudienceSelectivityAudienceSelectivity The cost of reaching one member of the target market. The number of target consumers exposed to a commercial at least once during a time period. The number of times an individual is exposed to a message during a time period. The ability of an advertising medium to reach a precisely defined market.

Media SchedulesContinuous Media Schedule Continuous Flighted Media Schedule Pulsing Media Schedule Pulsing Seasonal Seasonal Advertising is run steadily throughout the period. Advertising is run heavily every other month or every two weeks. Advertising combines continuous scheduling with flighting. Advertising is run only when the product is likely to be used.

Evaluation Brand recognition Brand recall Attitudes & intentions to purchase Use research tools again!! Share of expenditure, share of voice, share of mind and heart and share of market

The Confusion of ROI Incremental sales revenue created by marketing Changes in brand awareness Total sales revenue generated by marketing activity Changes in purchase intentions Changes in attitudes toward brand Changes in market share Number of leads generated Ratio of ad costs to sales revenues Cost per lead generated Reach/frequency Gross rating points Cost per sale generated Post buy analysis of media Increase in lifetime value

Public Relations Evaluates public attitudes Identifies issues of public concern Executes programs to gain public acceptance The Role of Public Relations The Role of Public Relations

Public Relations Functions Press/media relations Product publicity Corporate communication Lobbying Counseling/crisis management Viral marketing Creating WOM

BW, 5.17/99

Major Tools for Marketing PR Internal & External AudiencesInternal Audiences Events Sponsorships News Speeches Public Service Activities Publications

Sales Promotion Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase. Consumer Promotions Trade promotions

Objectives of Sales Promotions Type of Buyer Loyal Customers Competitor’s Customers Competitor’s Customers Brand Switchers Price Buyers Desired Results Reinforce behavior Increase consumption Change timing Reinforce behavior Increase consumption Change timing Break loyalty Persuade to switch Break loyalty Persuade to switch Persuade to buy your brand more often Appeal with low prices Supply added value Appeal with low prices Supply added value Sales Promotion Examples Loyalty marketing Bonus packs Loyalty marketing Bonus packs Sampling Sweepstakes, contests, premiums Sampling Sweepstakes, contests, premiums Price-lowering promotion Trade deals Price-lowering promotion Trade deals Coupons, price-off packages, refunds Trade deals Coupons, price-off packages, refunds Trade deals

Why Use Sales Promotions? Immediate Purchases Increase Trial Boost consumer inventory Encourage repurchase Increase ad effectiveness Encourage brand switching UsesofSalesPromotionUsesofSalesPromotion Encourage brand loyalty

Major Consumer Promotion Tools Samples Coupons Case refund offers (rebates) Price packs Premiums Frequency programs Prizes (contests, sweepstakes) Patronage awards Free trials Warranties Tie in promotions Cross promotions POPs

Major Trade Promotion Tools Price Off (off invoice, off list) Allowance Free Goods Trade shows Sales contests Specialty Advertising

Direct Marketing The use of consumer direct channels to reach and deliver goods and services to customers w/out intermediaries Talk more in retailing about direct marketing