1. Entrepreneurship and Small Business Management
Chapter 9
Integrated Marketing Communications

2. Ch. 9 Performance Objectives
Define integrated marketing communications and its components.
Conduct promotional planning and budgeting.
Understand advertising and advertising management.
Identify and evaluate media.

3. Ch. 9 Performance Objectives (continued)
Discuss sales promotion.
Explore alternative marketing options.
Analyze database and direct-response marketing opportunities.
Incorporate e-active marketing.
Describe publicity and public relations.

4. What Is Integrated Marketing?
Promotional communication strategies combined for maximum effectiveness
Components may include:
Advertising
Promotions
Personal selling
Sponsorships
Public relations
Types of specialized marketing such as database, direct, alternative, and e-active

5. Promotional Planning
Determine the best ways to effectively communicate your brand and unique selling proposition to your customers.
Involve all parts of your organization.
Promotions opportunity analysis—process that includes researching target markets and the promotional strategies to reach them

6. Five Steps of Promotions Opportunity Analysis
Conduct a communications market analysis.
Establish communications objectives.
Create a communications budget.
Prepare promotional strategies.
Match tactics with strategies.

7. Common Examples of Communications Objectives
Develop brand awareness and image.
Provide information.
Change customer beliefs or attitudes.
Encourage repeat purchases.
Build customer traffic.
Increase market share.
Reinforce purchasing decisions.

8. Ways to Determine Your Promotional Budget
Percentage of sales—a percentage of the prior year’s sales or anticipated sales
Competitive spending—budget similar to competition’s level of spending
Excess funds—amount “left over” after other expenses are calculated
Objective and task—based on what is needed to reach promotional objectives

9. Types of Advertising
Institutional advertising—provides information about an organization; intended to create awareness about the firm and enhance its image
Product advertising—designed to create awareness, interest, purchasing behavior, and post-purchase satisfaction for specific products and services

10. Media Planning
Determine your media strategy: identify which media types will be used
Create a media schedule: spell out specific media vehicles, volume of use, and timing
Consider critical measurement factors.
Compare media costs.

11. Media Measurement Factors
Reach—number of target audience members exposed to the advertisement during a given time period
Frequency—how often your target audience will be exposed to the advertisement during a given period
Target audience: people, businesses, or households

12. Media Measurement Factors (continued)
Opportunities to see (OTS)— cumulative number of exposures in a given time period (usually four weeks)
Gross rating points (GRP)—
Measures the intensity of a media plan
GRP = Media vehicle’s rating (reach) x OTS (number of insertions)

13. Media Categories Broadcast media (television and radio) Print media
Newspapers
Magazines
Directories
Outdoor advertising media (billboards)
Internet

14. Calculating Media Costs
Cost Per Thousand—cost of reaching 1,000 members of the media vehicle’s audience (not the purchaser’s)
CPM = (Cost of media buy ($) / Total audience) x 1,000
Cost Per Rating Point—measure of the efficiency of a media vehicle to a company’s target market
CPRP = Cost of media buy ($) / Vehicle’s rating

15. Marketing Materials
Examples: stationery, business cards, posters, flyers, brochures, newsletters
Should reinforce competitive advantage
Serve three main functions:
Organize your thinking
Teach others in your company about the business
Sell your product/service in marketplace

16. Sales Promotional Tools
Consumer
Business-to-Business
Coupons
Contests and sweepstakes
Refunds and rebates
Sampling
Premiums
Tie-ins
Bonus packs
Mall carts or kiosks
Incentives
Contests
Refunds and rebates
Sampling
Allowances
Trade show exhibits

17. Alternative Marketing Options
Guerilla marketing—original, unconventional, and inexpensive small-business strategies
Buzz marketing—another name for word-of-mouth marketing
Organic (occurs naturally)
Amplified (jump-started by the business)

18. Alternative Marketing Options (continued)
Product placement/branded entertainment
Lifestyle marketing
In-store marketing
Samples or demonstrations (edutainment)
Point-of-purchase and shelf placement
Ads in/on other media venues (theaters, bus stops, clothing, shopping bags, etc.)

19. Database Marketing Focus on building customer loyalty.
Design and follow a data-collection plan.
Code and analyze the collected data.
Calculate lifetime value.
Perform a RFM analysis.
Use data mining to extract information.
Create highly-targeted, customized communications based on the database.

20. Marketing Communications Driven by Databases
marketing
Direct mail
Catalogs
Coupons
Infomercials/direct-response commercials
Telemarketing

21. What Is E-active Marketing?
Combination of e-commerce and interactive marketing
E-commerce example: electronic store
Interactive marketing—uses Internet to collect information from consumers and communicate with them

22. E-active Marketing Methods
Online advertising, such as banner ads
Brand spiraling
Blogs
Online social networks (FaceBook, MySpace, BlackPlanet, etc.)
Consumer-generated advertising/media
Viral marketing campaigns

23. Ways to Generate Publicity
Press release
An announcement sent to the media
States the “who, what, when, where, and why” of the story
Pitch letter
Correspondence designed to explain the story behind the press release
Tells why the story would be interesting to the media outlet’s audience

24. Build Public Relations Through:
Special events (contests, parties, unusual events, etc.)
Sponsorships
Networking (exchanging information and contacts)
Public speaking