Download Road Map: Previewing the Concepts

Chapter 13
Integrated Marketing
Communications: Advertising, Sales
Promotion, and Public Relations
Road Map: Previewing the Concepts
Discuss the process and advantages of integrated
marketing communication.
Define the five promotion tools and discuss the
factors that must be considered in shaping the overall
promotion mix.
Describe and discuss the major decisions involved in
developing an advertising program.
Explain how sales promotion campaigns are
developed and implemented.
Explain how companies use public relations to
communicate with their publics.
13-2
American Standard
Your mission –
prepare a promotion
campaign for
American Standard’s
line of toilets.
Campaign materials –
media ads, direct
mailing, and personal
contacts – to build
sales and market
share.
13-3
Marketing Communication Mix
or Promotion Mix
Product’s
Design
Product’s
Price
Stores that Sell
the Product
Product’s
Package
13-4
Marketers Have Shifted
Away From Mass
Marketing
Less Broadcasting
2 Factors
are Changing the Face of Today’s
Marketing Communications:
Improvement in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting
Market Fragmentation Led to
Media Fragmentation
The Changing Communications
Environment
13-5
The Need for Integrated
Marketing Communications
With Integrated Marketing
Communications (IMC), the
Company Carefully Integrates and
Coordinates Its Many
Communications Channels to Deliver
a Clear, Consistent, and Compelling
Message About the Organization
and Its Products.
13-6
Integrated Marketing
Communications (Fig. 13-1)
13-7
Setting the Overall
Communication Reaches
Mix Many Buyers, Repeats
Advertising
Personal
Selling
Sales
Promotion
Public
Relations
Direct
Marketing
Message Many Times, Impersonal,
Expensive
Personal Interaction, Relationship
Building, Most Expensive Promo
Tool
Wide Assortment of Tools, Rewards
Quick Response, Efforts Short-Lived
Very Believable, Dramatize a
Company or Product, Underutilized
Nonpublic, Immediate, Customized,
Interactive
13-8
Push versus Pull Promotion
Strategy (Fig. 13-2)
13-9
Advertising
Advertising is centuries old.
U.S. advertisers spend in excess of $244
billion each year; worldwide spending
exceeds $465 billion.
Advertising is used by:
Business firms,
Nonprofit organizations,
Professionals, and
Social agencies.
13-10
Major Decisions in Advertising
(Fig. 13-3)
13-11
Setting Advertising Objectives
Informative Advertising
Persuasive Advertising
Inform Consumers or
Build Selective Demand
Build Primary Demand
i.e Sony DVD Players
i.e DVD Players
Advertising Objective
Specific Communication Task
Accomplished with a Specific
Target Audience
During a Specific Period of Time
Comparative Advertising
Reminder Advertising
Compares One Brand
Keeps Consumers
to Another
Thinking About a Product
i.e. Avis vs. Hertz
i.e. Coca-Cola
13-12
Advertising objectives can be classified
by primary purpose: to inform,
persuade, or remind.
Think of examples of ads that address
each of these objectives.
Using Table 13-1, discuss why your
examples fit the chosen objective.
13-13
Setting the Advertising Budget
Methods of Setting the Advertising Budget for
Each Product and Market.
Affordable
Based on What the
Company Can Afford
Percentage-of-Sales
Based on a Certain
Percentage of Current
or Forecasted Sales
Objective-and-Task
Competitive-Parity
Based on Determining Based on the Competitors’
Objectives & Tasks,
Promotion Budget
Then Estimating Costs
13-14
Developing Advertising Strategy
Advertising Strategy Consists of Two Major Elements
and Companies are Realizing the Benefits of Planning
These Two Elements Jointly.
Creating the
Advertising
Selecting the
Advertising Media
Messages
13-15
Creating the Advertising Message:
Message Strategy
Develop a Message
Focus on
Customer Benefits
Creative Concept
“Big Idea”
Visualization or Phrase
Advertising Appeals
Meaningful, Believable
& Distinctive
13-16
Developing Advertising
Strategy: Message Execution
Testimonial Evidence
Scientific Evidence
Technical Expertise
Slice of Life
Typical
Message
Execution
Styles
Personality Symbol
Lifestyle
Fantasy
Mood or Image
Musical
13-17
Advertising Strategy:
Selecting Advertising Media
Deciding on reach, frequency, and impact.
Choosing among the major media types.
Media habits of target customers,
Nature of the product,
Types and costs of messages.
Selecting specific media vehicles.
Specific media within each general media type.
Deciding on media timing.
Scheduling advertising over the course of a year.
13-18
Evaluating Advertising
Advertising Program Evaluation
Communication Effects
(Copy Testing)
Is the Ad Communicating
Well?
Sales Effects
Is the Ad Increasing
Sales?
13-19
Other Advertising Considerations
Sales Departments in
Small Companies
Advertising Departments
in Larger Companies
Advertising Agency
Firm that Assists Companies
in the Planning, Creation, &
Implementation of Their
Advertising Programs
13-20
What is Sales Promotion?
Sales Promotion Offers Short-Term
Incentives to Encourage Purchase
or Sales of a Product or Service.
Offers Reasons to Buy NOW.
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Rapid Growth of Sales
Promotion
Sales promotion can take the form of consumer
promotions, business promotions, trade
promotions, or sales force promotions.
Rapid growth in the industry has been achieved
because:
Product managers are facing more pressure to
increase their current sales,
Companies face more competition,
Advertising efficiency has declined,
Consumers have become more deal oriented.
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Sales Promotion Objectives
Consumer Promotions: increase short-term sales
or help build long-term market share.
Trade Promotions: get retailers to:
carry new items and more inventory,
advertise products,
give products more shelf space, and
buy product ahead.
Sales Force: getting more sales support.
In general, sales promotion should focus on
consumer relationship building.
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Major Consumer Sales
Promotion Tools
Sample
Trial amount of a product
Coupons
Savings when purchasing specified
products
Cash Refunds
Refund of part of the purchase price
Price Packs
Premiums
Advertising
Specialties
Reduced prices marked on the label
or package
Goods offered free or low cost as an
incentive to buy a product
Articles imprinted with an
advertiser’s name given as gifts
13-24
Major Consumer Sales
Promotion Tools
Patronage Rewards
Point-of-Purchase
Contest
Sweepstakes
Games
Cash or Other Award Offered for
Regular Use of a Product
Displays or Demonstrations at the
Point of Purchase
Consumers Submit an Entry to be
Judged
Consumers Submit Their Names for
a Drawing
Consumers Receive Something Each
Time They Buy Which May Help
Them Win a Prize
13-25
Which of the sales promotion tools described
in the chapter would be best for stimulating
sales of the following products or services?
Gummy Bears new Black Cherry flavor,
Proctor & Gamble’s efforts to bundle laundry
detergent and fabric softener together in a
combined marketing effort,
Outpost.com attempts to help consumers
remember what it sells as well as its Web address.
13-26
Major Trade Sales Promotion
Tools
Trade-Promotion
Objectives
Trade-Promotion
Tools
Persuade Retailers or
Wholesalers to Carry a Brand
Discounts
Give a Brand Shelf Space
Allowances
Promote a Brand in
Advertising
Free Goods
Push a Brand to Consumers
Push Money
Specialty Ad Items
13-27
Major Business Sales
Promotion Tools
Business-Promotion
Objectives
Business-Promotion
Tools
Generate Business Leads
Conventions
Stimulate Purchases
Trade Shows
Reward Customers
Sales Contests
Motivate Salespeople
13-28
Developing the Sales
Promotion Program
Decide on the Size of the Incentive
Set Conditions for Participation
Determine How to Promote and
Distribute the Promotion Program
Determine the Length of the Program
Evaluate the Program
13-29
What is Public Relations?
Public Relations Involves Building
Good Relations With the Company’s
Various Publics by Obtaining
Favorable Publicity, Building Up a
Good Corporate Image, and Handling
or Heading Off Unfavorable Rumors,
Stories, and Events.
13-30
Major Public Relations Functions
Press Relations or Agentry
Product Publicity
Public Affairs
Public Relations
Departments May
Perform Any or All
of the Following
Functions:
Lobbying
Investor Relations
Development
13-31
Major Public Relations Tools
News
Web Site
Speeches
Public
Service
Activities
Special
Events
Corporate
Identity
Materials
Audiovisual
Materials
Written
Materials
13-32
Rest Stop: Reviewing the Concepts
Discuss the process and advantages of integrated
marketing communication.
Define the five promotion tools and discuss the
factors that must be considered in shaping the overall
promotion mix.
Describe and discuss the major decisions involved in
developing an advertising program.
Explain how sales promotion campaigns are
developed and implemented.
Explain how companies use public relations to
communicate with their publics.
13-33