1. 18B INTEGRATED MARKETING COMMUNICATIONS - 2

2. TYPES OF ADVERTISEMENTS An objective for every target market LO1 Informative Advertising Build Primary Demand New products Major product changes “Coldwater Tide” Informative Advertising Build Primary Demand New products Major product changes “Coldwater Tide” Persuasive Advertising Build Selective Demand “Buy brand X” Stress some brand X benefits Persuasive Advertising Build Selective Demand “Buy brand X” Stress some brand X benefits Comparison Advertising Compares Brand A to B Features & benefits Negative advertising: [Ford / VW] Comparison Advertising Compares Brand A to B Features & benefits Negative advertising: [Ford / VW] Reminder Advertising Keeps Consumers Thinking About a Product Repurchase “Have you had your Wheaties today?” Reminder Advertising Keeps Consumers Thinking About a Product Repurchase “Have you had your Wheaties today?”

3. DEVELOPING THE AD PROGRAM Advertising Categories LO2 National (global) brand advertising Retail (local) advertising Directory advertising Institutional advertising Business-to-business advertising Direct response advertising Public service advertising Internet advertising

4. DEVELOPING THE ADVERTISING PROGRAM SELECTING THE RIGHT MEDIA LO2 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Media Habits of Target Consumers / Segments Nature of the Product - Type of Message Cost Step 2. Choosing Among Major Media Types Media Habits of Target Consumers / Segments Nature of the Product - Type of Message Cost Step 3. Selecting Specific Media Vehicles Specific Media Within a Given Type, i.e. TV’s ER. Must Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality Step 3. Selecting Specific Media Vehicles Specific Media Within a Given Type, i.e. TV’s ER. Must Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality Step 4. Deciding on Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing Media Schedule Step 4. Deciding on Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing Media Schedule

5. TYPES OF MEDIA Newspapers (>18,000, >96,000,000 homes) Advantages: Flexibility, timeliness; good local market coverage; broad acceptance, high believability Limitations:Short life; less than magazine print quality; small pass-along audience; declining circulation Television Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses; low cable costs Limitations:High network costs; high clutter; fleeting exposure; less audience selectivity Direct Mail Advantages:Audience segmentation; flexibility, no ad compe- tition within same medium; allows personalization Limitations:Relative high postage cost; “junk mail” image

6. TYPES OF MEDIA Radio Advantages: Mass use; high geographic and demographic selectivity; low cost Limitations:Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences Magazines Advantages:High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership Limitations:Longer ad purchase lead time; waste circulation; no guarantee of position Outdoor Advantages:Flexibility; high repeat exposure; low cost; low message competition; very brief exposure; limited attention of the audience Limitations:Little audience selectivity; creative limitations

7. EXECUTING THE ADVERTISING PROGRAM IMPLEMENTING THE ADVERTISING PROGRAM LO3 Account Management Develops Campaign’s Strategy for Client Account Management Develops Campaign’s Strategy for Client Creative Services Dreams Up and Produces the Ads / Materials Creative Services Dreams Up and Produces the Ads / Materials Media Planning Determines Effective Communication Vehicles / Media Schedule Media Planning Determines Effective Communication Vehicles / Media Schedule Research & Marketing Services Collect and Analyze Information to Help Develop a Strategy Research & Marketing Services Collect and Analyze Information to Help Develop a Strategy

8. ADVERTISING CHALLENGES TODAY Technology Empowers the Consumer: Internet Technology Empowers the Consumer: Internet Greater Emphasis on Point-of-Purchase [POP] The Rules Are Changing: Cable, Internet, Gen Y and Millennial generations The Rules Are Changing: Cable, Internet, Gen Y and Millennial generations The Advertising Environment is Cluttered: Much more noise The Advertising Environment is Cluttered: Much more noise Some Consumers Are Turned Off by Advertising : Gen Y: social networking – friends, family, online, … ads Some Consumers Are Turned Off by Advertising : Gen Y: social networking – friends, family, online, … ads

9. ADVERTISING’S 5 M MODEL Mission Sales goals Advertising objectives Money Factors to consider: Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substitutability Message Message generation Message evaluation and selection Message execution Social-responsibility review Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation Measure- ment Communication impact Sales impact

10. DEVELOPING EFFECTIVE COMMUNICATIONS Set communication objectives Awareness Knowledge Liking Preference Conviction Purchase Set communication objectives Awareness Knowledge Liking Preference Conviction Purchase RC COLA –Firm sold 10 times between 1929 and 1997. RC Cola ads, what do you see first? Target market segment profile and identify your target audience – be very specific!

11. ASSESSING THE ADVERTISING PROGRAM POSTTESTING THE ADVERTISING LO3  Posttests – How well did the ad perform?  Aided Recall  Noted – Seen - Read  Unaided Recall  Attitude - Inquiry - Sales tests 19-11 RC COLA –Firm sold 10 times between 1929 and 1997. RC Cola ads, what do you see first?

12. SALES PROMOTION CONSUMER-ORIENTED SALES PROMOTION LO4 19-12 Consumer-Promotion Objectives Increase Short-Term Sales Build Long-Term Market Share Get Retailers to Carry New Items Sales Force Support for Current or New Products Consumer Relationship Building

13. B2C CONSUMER PROMOTION Consumer-Promotion Objectives Increase Short-Term Sales Build Long-Term Market Share Build Long-Term Market Share Point-of-Purchase Displays Point-of-Purchase Displays Premiums Price Packs Cash Refunds Coupons Samples Consumer-Promotion Tools Games Sweepstakes Contests Patronage Awards Patronage Awards Advertising Specialties Advertising Specialties Get Retailers to Carry New Items Sales Force Support for Current or New Products Consumer Relationship Building

14. CONSUMER PROMOTION Create Awareness Make the consumer aware there is a new product on the market. Create Awareness Make the consumer aware there is a new product on the market. Inform the Market Provide knowledge about the benefits the product offers. Inform the Market Provide knowledge about the benefits the product offers. Create Desire Create favorable feelings toward the product and interest. Create Desire Create favorable feelings toward the product and interest. Encourage Trial Encourage trial & use of product among target users. Encourage Trial Encourage trial & use of product among target users. Build Loyalty Convince customers to keep purchasing product. Build Loyalty Convince customers to keep purchasing product. Slogans & Jingles Internet / Advertising Status Appeals Coupons / Samples / Promotions Product Placement / Repurchase Programs

15. SALES PROMOTION CONSUMER-ORIENTED SALES PROMOTION  Loyalty Programs LO4 19-15  Rebates  Product Placement  Introduce / Demonstrate new products

16. SALES PROMOTION B2B TRADE-ORIENTED SALES PROMOTION LO4 Trade-Promotion Objectives Persuade Resellers to Carry a Brand Obtain Brand Shelf Space Promote a Brand with Advertising Promote a Brand with Advertising “PUSH” a Brand Specialty Advertising Items Specialty Advertising Items Contests Free Goods Buy-Back Guarantees Buy-Back Guarantees Allowances Price-Offs Trade-Promotion Tools Push Money Discounts Displays Premiums Cooperative [Co-op] Advertising Cooperative [Co-op] Advertising

17. TRADE PROMOTION Industrial Customers Trade-Promotion Objectives Generate Business Leads * Stimulate Purchases Reward Customers Motivate Manufacturer or Reseller Salespeople *

18. TRADE PROMOTION Industrial Customers Trade-Promotion Objectives Generate Business Leads Stimulate Purchases Reward Customers Trade-Promotion Tools Specialty Advertising Programs Specialty Advertising Programs Sales Contests * Sales Contests * Initial Stock Buy-Back * Initial Stock Buy-Back * Advertising Allowances * Advertising Allowances * Discounts or Free Goods Discounts or Free Goods Displays Conventions And Trade Shows * Conventions And Trade Shows * Motivate Manufacturer or Reseller Salespeople Co-op Adv. * Train Resellers

19. DEVELOPING A SALES PROMOTION PROGRAM Decide on the Scope of the Program and the Size of the Incentive Set Conditions for and Rules of Participation Evaluate the Program Determine How to Roll-out [includes training at all levels] and Distribute the Promotion Program Determine How to Roll-out [includes training at all levels] and Distribute the Promotion Program Determine the Length of the Program

20. PUBLIC RELATIONS PUBLICITY TOOLS LO5  Public Relations  Publicity Tools  News release  Public service announcement  News conference  Invitational event 19-20

21. PUBLIC RELATIONS OBJECTIVES Introducing New Products to Manufacturers Introducing New Products to Manufacturers Introducing New Products to Consumers Introducing New Products to Consumers Influencing Government Legislation Influencing Government Legislation Enhancing the Image of a City, Region, or Country Enhancing the Image of a City, Region, or Country Calling Attention to a Firm’s Involvement with the Community Calling Attention to a Firm’s Involvement with the Community

22. PUBLIC RELATIONS TOOLS Strong PR Firm Press releases / stories (Firm and it products) Press releases / stories (Firm and it products) Public Affairs (Community relations) Public Affairs (Community relations) Lobbying (Specialized firms & tasks) Lobbying (Specialized firms & tasks) Investor Relations (almost always a corporate function) Investor Relations (almost always a corporate function) Development & Miscellaneous

23. BUILDING AN IMC PLAN: Coordinate and maximize the effectiveness of all the tools. ADVERTISING COLLATERAL DIRECT MARKETING EVENTS SALES AIDS INTERNET PACKAGING & LABELING PUBLIC RELATIONS POINT OF PURCHASE CONSUMER PROMOTIONS TRADE PROMOTIONS TRADE SHOWS

24. PROMOTION MIX AND THE PLC ANY OR ALL ELEMENTS MAY CHANGE BY STAGE OF THE PLC –ADVERTISING –PUBLIC RELATIONS –SALES –SAMPLES

25. IMC CHALLENGES FLOW TIMING ACCURACY COORDINATION CONTROL MEASUREMENT

26. E-COMMERCE OBJECTIVES Must address integrate with your existing business[es] with a minimum amount of conflict and disruption. Need to define measurable goals