Download C H A P T E R 10-2 Integrated Marketing Communications

marketing strategy
O. C. Ferrell
Michael D. Hartline
Integrated
Marketing
Communications
C H A P T E R
Integrated Marketing
Communications
• Integrated Marketing Communications (IMC)
– “…the strategic, coordinated use of promotional
elements to ensure maximum persuasive impact on the
firm’s current and potential customers.”
• Reasons that IMC is important:
– Foster’s long-term relationships
– Reduces or eliminates promotional redundancies
– Technology allows better targeting of customers
10-2
Components of IMC Strategy
Exhibit 10.1
10-3
Strategic Issues in Integrated
Marketing Communications
• IMC must have clear promotional goals and
objectives
• The AIDA Model
–
–
–
–
Attention
Interest
Desire
Action
• Promotional goals with respect to the supply chain
– Push or Pull Strategy?
10-4
Promotional Strategy over the
Product Life Cycle
Exhibit 10.2
10-5
Discussion Question
• Review the steps in the AIDA model. In what
ways has promotion affected you in various
stages of this model? Does promotion affect you
differently based on the type of product in
question? Does the price of the product (low vs.
high) make a difference in how promotion can
affect your choices? Explain.
10-6
Advertising
• Types of Advertising
– Institutional Advertising
– Product Advertising
• Determining the Advertising Budget
–
–
–
–
Objectives and task approach
Percentage of sales approach
Competitive matching approach
Arbitrary approach
10-7
Spending on National Advertising
Exhibit 10.3
10-8
Online Advertising
Placements by Industry
Exhibit 10.4
10-9
Top 20 Internet Advertisers
Exhibit 10.5
10-10
Recall of Advertising Slogans
for Major Brands
Exhibit 10.6
10-11
Discussion Question
• What does the future hold for traditional mass
media advertising? If you were the CEO of a
major television network, magazine publisher, or
newspaper company, what you be doing now to
ensure the livelihood of your company in 10 to 20
years?
10-12
The End of TV Advertising?
• Consumers are faced with an
increasing array of media and
entertainment choices (e.g.
TiVo, iPods, DVDs, video
games, cell phones).
• Do these competitors spell the
end for traditional television
advertising? What can TV
executives do to retain this
critical source of revenue?
Beyond the Pages 10.1
10-13
Targeted Communication Works
10-14
Marketing Strategy in Action
• The Dairy Board’s “Got
Milk” campaign is a very
good example of successful
product advertising.
• How does this type of
advertising benefit all sellers
in the market? What is the
primary goal of this type of
advertising?
10-15
Evaluating Advertising
Effectiveness
• Key Considerations:
– Evaluating the achievement of advertising objectives
– Assessing the effectiveness of advertising copy,
illustrations, and layouts
– Evaluating the effectiveness of various media
• Timing of Evaluations:
– Pretest
– During
– Posttest
10-16
Public Relations
• Public Relations Methods
- News (or press) releases
- Feature articles
- Event sponsorship
- Product placement
- White papers
- Press conferences
- Employee relations
• Negative Public Relations
– Honest is the best policy
– Open access to information is critical
10-17
The Strongest and Weakest
Corporate Reputations
Exhibit 10.7
10-18
Personal Selling and Sales Management
• The Sales Management Process
–
–
–
–
Developing Sales Force Objectives
Determining Sales Force Size
Recruiting and Training Salespeople
Controlling and Evaluating the Sales Force
• The Impact of Technology on Personal Selling
10-19
Comparison of Sales Force
Compensation Methods
Exhibit 10.8
10-20
Sales Promotion
• Sales Promotion in Consumer Markets
- Coupons
- Rebates
- Point-of-purchase
- Premiums
- Product samples
- Loyalty programs
- Contests and sweepstakes
- Direct mail
• Sales Promotion in Business Markets
- Trade allowances
- Free merchandise
- Cooperative advertising
- Selling incentives
- Training assistance
10-21
Coupons: Sales Promotion to Consumers
10-22
Spending on Various
Sales Promotion Activities
Exhibit 10.9
10-23
Discussion Question
• What would happen if a company suddenly
stopped using sales promotion activities after
having used them for a long period of time? Is it
possible for a company to become dependent on
the use of sales promotion strategies? Explain.
10-24