Download Promotion Management

Chapter 1
Integrated Marketing Communications
Chapter Objectives
• To review the various elements of the promotional
mix
• To summarize the IMC planning process and
examine the steps in a marketing communications
program
Chapter 1: IMC
Chapter Objectives
• To introduce the concept of integrated marketing
communications
• To examine how various elements must be
coordinated to communicate effectively with the
IMC perspective
Chapter 1: IMC
Elements of the Promotional Mix
• Figure 1-1
Chapter 1: IMC
The Marketing & Promotional Mixes
•
•
•
•
Product or service
Pricing policy
Distribution method
Marketing communications mix
–
–
–
–
–
Advertising
Direct marketing
Sales promotion
Publicity/public relations
Personal selling
Chapter 1: IMC
Advertising
Any paid form of nonpersonal communication
about an organization, product, service, or idea by
an identified sponsor.
• Cost effective for communicating to a large
audience.
– Creates brand images and symbolic appeal.
– Strikes a responsive chord with consumers, popular
campaigns get attention.
Chapter 1: IMC
Classifications of Advertising
• National advertising
• Retail/local advertising
• Advertising to increase demand
– Primary demand for the product category
– Selective demand for a specific brand
• Business & professional advertising
– Business-to-business advertising
– Professional advertising
– Trade advertising
Chapter 1: IMC
Sales Promotion
Marketing activities that provide extra value
or incentives to the sales force, distributors,
or ultimate consumers and can stimulate
immediate sales.
Chapter 1: IMC
Types of Sales Promotion
• Customer-oriented
– Targeted to the ultimate users of a product or service
• Coupons, sampling, premiums, rebates, contests, sweepstakes,
POP materials
• Trade-oriented
– Targeted toward marketing intermediaries such as
retailers, wholesalers, or distributors
• Promotion allowances, merchandise allowances, price deals,
sales contests, trade shows
Chapter 1: IMC
Public Relations
The management function which evaluates public
attitudes, identifies the policies and procedures of
an individual or organization with the public
interest, and executes a program of action to
earn public understanding and acceptance.
– Tools used by public relations.
•
•
•
•
•
•
Publicity.
Special publications.
Community activity participation.
Fund-raising.
Special event sponsorship.
Public affairs activities.
Chapter 1: IMC
Publicity
Non-personal communications regarding an
organization, product, service, or idea not directly
paid for or run under identified sponsorship.
– Publicity is NOT advertising.
– Advertising.
• Paid, sponsor-identified, non personal (media)
communications.
– Publicity.
• Non-paid, unsponsored, non personal (media)
communications.
Chapter 1: IMC
Publicity Vehicles
• News releases:
– Single-page news stories sent to media who might print or
broadcast the content.
• Feature articles:
– Larger manuscripts composed and edited for a particular medium.
• Captioned photos:
– Photographs with content identified and explained below the
picture.
• Press conferences:
– Meetings and presentations to invited reporters and editors.
• Special events:
– Sponsorship of events, teams, or programs of public value.
Chapter 1: IMC
Direct Marketing
Organizations communicate directly with target
customers to generate a response and/or
transaction.
• Direct marketing methods.
–
–
–
–
–
Direct mail.
Cataloging.
Telemarketing.
Direct response ads.
Internet sales.
Chapter 1: IMC
Interactive/internet Marketing
Interactive media allow for a back and forth flow
of information whereby users can participate in
and modify the form and content of the information
they receive in real time.
Chapter 1: IMC
Interactive/internet Marketing
• Multiple internet roles
–
–
–
–
–
–
–
As a persuasive advertising medium
As a means to educate or inform customers
As a sales tool or an actual sales vehicle
To obtain customer database information
To communicate and interact with buyers
To provide customer service and support
To build and maintain customer relationships
Chapter 1: IMC
Personal Selling
A form of person-to-person communication in
which a seller attempts to assist and/or persuade
prospective buyers to purchase to company’s
product or service or act on an idea.
– With this type of interaction the flexibility exists to tailor
the message to the customers specific need or
situation.
Chapter 1: IMC
Integrated Marketing Communications
• Coordinating the various promotional elements
and other marketing activities that communicate
with the firm’s customers.
Chapter 1: IMC
Integrated Marketing Communications
– A plan that evaluates the strategic roles of
several communications disciplines:
•
•
•
•
General advertising
Direct response
Sales promotion
Public relations
– Combines the disciplines to provide:
• Clarity
• Consistency
• Maximum communications impact
Chapter 1: IMC
Reasons for Growth of IMC
• Planning efficiency and effectiveness.
– By coordinating marketing communication efforts
companies avoid duplication, take advantage of
synergy, and develop more efficient and effective
programs.
• Consumer adoption of technology and media.
– Consumers lifestyles and purchasing behavior are
changing as they adopt new technologies.
– Traditional media are facing declining audiences and
less responsive consumers.
Chapter 1: IMC
Reasons for Growth of IMC
• Innovative marketing practices.
– A shift in marketplace power from manufacturers to
retailers.
– A shifting of marketing dollars from media advertising to
other forms of promotion.
– A movement away from relying on advertising- focused
approaches to solve communication problems.
Chapter 1: IMC
Reasons for Growth of IMC
• Innovative Marketing Practices.
– The rapid growth and development of database
marketing.
– Demands for greater accountability from ad agencies
and changes in compensation.
– Rapid growth of the internet.
Chapter 1: IMC
Importance of IMC
• Customer’s point of view.
– All elements of the promotional campaign have to be
carefully linked in some manner so that the message is
clear and does not misrepresent the brand.
Chapter 1: IMC
Importance of IMC
• Relationship marketing.
– Creating, maintaining, and enhancing long-term
relationship with individual customers as well as other
stakeholders for mutual benefit.
– Marketers must recognize which tools within the
promotional mix are enhancing the relationship.
Chapter 1: IMC
Planning for IMC:
Promotional Management
Coordinating the promotional mix elements to
develop a controlled, integrated program of
effective marketing communications.
– Considerations for developing the promotional
mix include:
•
•
•
•
Type of product.
Buyer’s decision process.
Stage of product life cycle.
Channels of distribution.
Chapter 1: IMC
The Marketing Plan
1. A detailed situation analysis
2. Specific marketing objectives
3. A marketing strategy and program
4. A program for implementing the strategy
5. A process for monitoring and evaluating
performance
Chapter 1: IMC
Situation Analysis
• Internal analysis.
– Assesses relevant areas involving the product/service
offering and the firm itself.
• Internal factors.
– Assessment of the firm’s promotional organization and
capabilities.
– Review of the firm’s previous promotional programs.
– Assessment of firm or brand image and implications for
promotion.
– Assessment of relative strengths and weaknesses of
product/service.
Chapter 1: IMC
Situation Analysis
• External analysis.
– Focuses on factors such as characteristics of a firms
customers, market segments, environment and
competitors.
• External factors.
– Customer analysis.
– Competitive analysis.
– Environmental analysis.
Chapter 1: IMC