* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download File
Survey
Document related concepts
Ad blocking wikipedia , lookup
Radio advertisement wikipedia , lookup
Criticism of advertising wikipedia , lookup
Social media marketing wikipedia , lookup
Online advertising wikipedia , lookup
Targeted advertising wikipedia , lookup
Advertising to children wikipedia , lookup
Digital marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Street marketing wikipedia , lookup
Pharmaceutical marketing wikipedia , lookup
Advertising management wikipedia , lookup
Racial stereotyping in advertising wikipedia , lookup
Transcript
Chapter Eight Integrated Marketing Communications: Advertising, Sales Promotion, Public Relations, and Direct Marketing Key Words / Outline Advertising, Sales promotion, Public relations, Direct marketing, Personal selling, Marketing communications, Creating awareness Aiding comprehension, Developing conviction, Percent of sale, Over unit expenditure, Competitive parity, The task approach, Pull strategy, Push strategy, Trade promotion, Frequency marketing program McGraw-Hill/Irwin Marketing Management, 8e © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. Strategic Goals Of Marketing Communication • • • • • Create awareness Build positive images Identify prospects Build channel relationships Retain customers 8-3 Promotional Mix • Promotional mix incorporates the combination and types of non-personal and personal communication the organization employs during a specified period Non-personal communication Personal communication Advertising Personal selling Sales promotion Public relations Direct marketing 8-4 Promotional Mix • Advertising - Strengths • • • • Efficient for reaching many buyers simultaneously Effective way to create image of the brand Flexible Variety of media to choose from - Weaknesses • • • • • Reaches many people who are not potential buyers Ads are subject to criticism Exposure time is short People tend to screen out advertisements Total cost is high 8-5 Promotional Mix • Personal selling - Strengths • Salespeople can be persuasive and influential • Two-way communication allows for questions and other feedback • Message can be targeted to specific individuals weaknesses - Weaknesses • Cost per contact is high • Salespeople may be hard to recruit and motivate • Presentation skills may vary between salespeople 8-6 Promotional Mix • Sales promotion - Strengths • Supports short-term price reductions designed to stimulate debate • Variety of sales promotion tools available • Effective in changing short-term behavior • Easy link to other communications - Weaknesses • Risk inducing brand-loyal customers to stock up while not inducing others • Impact may be limited to short-term • Price-related sales promotion may hurt brand image • Easy for competitors to copy 8-7 Promotional Mix • Public relations - Strengths • Total cost may be low • Media-generated stories seen as more credible than marketersponsored messages - Weaknesses • Media may not cooperate • Heavy competition for media attention • Marketer has little control over the message 8-8 Promotional Mix • Direct marketing - Strengths • Message can be customized and prepared quickly • Can facilitate a relationship with customer - Weaknesses • Managing and maintaining accurate database can be costly • Often low customer response 8-9 Buyer Impact • Potential buyers go through a process - Awareness of the product Comprehension of what it can do and important features Conviction that it has value for them Ordering on the part of a sufficient number of potential buyers 8 - 10 Using Integrated Marketing Communication • Traditional approach – Focus on - Making Transactions Customers Independent brand messages Mass media – monologue with customers Product claims Adjusting prior year’s plan Functional department planning and monitoring Communication specialists Mass marketing and customer acquisition Stable of agencies 8 - 11 Using Integrated Marketing Communication • Integrated approach – Focus on - Building/nourishing relationships All stakeholders in the organizations Strategic consistency on brand messages Interactivity – dialogue with customers Corporate mission marketing Zero-based campaign planning Cross-functional planning and monitoring Creating core competencies Building and managing databases to retain customers One communication management agency 8 - 12 Buyer Impact 8 - 13 Advertising Approaches • • • The generalist viewpoint is primarily concerned with sales, profits, and return on investment The middle viewpoint sees advertising as a competitive weapon The specialist viewpoint is concerned with the effects of specific ads or campaigns 8 - 14 Developing Advertising Objectives • • • • • Does advertising aim at immediate sales? Does advertising aim at near-term sales? Does advertising aim at building long-range customer franchise? Does advertising aim at helping increase sales? Does advertising aim at some specific step that leads to sale? 8 - 15 Developing Advertising Objectives • • • • How important are supplementary benefits of advertising? Should advertising impart information needed to consummate sales and build customer satisfaction? Should advertising build confidence and goodwill for the corporation? What kind of images does the company wish to build? 8 - 16 Budgeting Approach • • • • • • Percent of sales Per-unit expenditure All you can afford Competitive parity The research approach The task approach 8 - 17 The Eight-M Formula • • • • • • • • Who will manage the advertising program? Budget on advertising as opposed to other forms of communication To whom should the advertising be directed? What should the ads says about the product? Types of combination of media to be used Longevity of the ads before changing ads or themes Timing factor for the ad to appear during the course of campaign Measuring the effectiveness of the campaign and how the campaign be evaluated and controlled 8 - 18 Budget Allocation • A successful campaign has two related tasks - Message strategy: Say the right things in ads itself Media mix: Use the appropriate media in right amounts at the right time to reach the target market 8 - 19 Budget Allocation: Message Strategy • • • • Who the firm’s customers and potential customers are; their demographic and psychological characteristics? How many such customers there are? How much of the firm’s type and brand of the product are they currently buying and can reasonably be expected in the future? Which individuals, other than customers and potential customers, influence purchasing decisions? 8 - 20 Budget Allocation: Message Strategy • • • • • Where customers buy the firm’s brand product? When customers buy and frequency of purchase? Which competitive brands they buy and frequency of purchase? How do they use the product? Why they buy particular types and brands of products? 8 - 21 Budget Allocation: Media Mix • Measures of media effectiveness include - Reach – number of targeted audience members exposed at least once to the advertiser’s message Frequency – number of times they are exposed Cost per thousand – based on a number of visits (to a website, for example) 8 - 22 Media Review • Newspapers - Advantages • • • • Flexible and timely Intense coverage of local markets Broad acceptance and use High believability of printed word - Disadvantages • Short life • Read hastily • Small “pass-along” audience 8 - 23 Media Review • Radio - Advantages • • • • Mass use Audience selectivity via station format Low cost Geographic flexibility - Disadvantages • • • • Audio presentation only Less attention than TV Chaotic buying Short life 8 - 24 Media Review • Outdoor - Advantages • • • • Flexible Relative absence of competing advertisements Repeat exposure Relatively inexpensive - Disadvantages • • • • Creative limitations Many distractions for viewer Public attack (ecological) No selectivity of audience 8 - 25 Media Review • Television - Advantages • • • • Combination of sight, sound and motion Appeals to senses Mass audience coverage Psychology of attention - Disadvantages • • • • Insecurity of audience retention Fleeting impressions Short life Expensive 8 - 26 Media Review • Magazines - Advantages • • • • High geographic and demographic selectivity Psychology of attention Quality of reproduction Pass-along readership - Disadvantages • Long closing periods • Some waste circulation • No guarantee of position 8 - 27 Media Review • Direct mail - Advantages • • • • Audience selectivity Flexible No competition from competing advertisements Personalized - Disadvantages • Relatively high cost • Consumers often pay little or no attention to direct mail 8 - 28 Media Review • Internet - Advantages • • • • • • Interactive Low cost per exposure Ads can be placed in interest sections Timely High information content possible New favorable medium - Disadvantages • • • • • Low attention getting Short message life Readers selects exposure May be perceived as intruding Subject to download speeds 8 - 29 Evaluation Procedures • Specific advertisements - • Recognition tests Recall tests Opinion tests Theatre tests Specific advertising objectives - Awareness Attitude Motivational impact Intention to buy Market test 8 - 30 Sales Promotion • Effective sales promotion moves consumers to - Obtain a trial product Consider new or improved product Repeat or increase current usage Come into a retail stores Expand the total number of users of an established product lines 8 - 31 Sales Promotion • An effective sales promotion motivates salespeople by - • Motivating sales force Educating the sales force about product improvements Stabilizing a fluctuating sales pattern An effective sales promotion motivates resellers to - Increase inventories Obtain displays and other support products Improve product distribution Obtain more and better shelf life 8 - 32 Push Versus Pull Marketing 8 - 33 Push Versus Pull Marketing 8 - 34 Trade Promotion Rationale • • • • • To convince retailer’s to carry the manufacturer’s products To reduce the manufacturer’s and increase the distributors or retailer’s inventories To support advertising and consumer sales promotion To encourage retailers to give the product more favorable shelf space To serve as a reward for past sales efforts 8 - 35 Consumer Promotion Rationale • • • • • • To induce the customer to try the product To reward customers for brand loyalty To encourage the customer to trade up or try larger sizes of the product To stimulate repeat purchases To react to competitor efforts To reinforce other selling efforts 8 - 36 Consumer Promotion Rationale 8 - 37 PR/Publicity • • • • News release or press release News conference Sponsorship Public service announcements (PSA) 8 - 38 Direct Marketing • • • • • Online Direct Mail Catalogs Direct Response Personal Selling 8 - 39