Download Promotion Management

Chapter 1
Integrated Marketing
Communications
United States Army
“An Army of One”
To "Be all you can
be" in the Army
now means
being "An Army
of one.“
10-Jan-2001
www.goarmy.com
Last Class
 Introduction!!!
Objectives
 To review the various elements of the promotional mix
 To introduce the concept of integrated marketing
communications
 To summarize the IMC planning process and examine the
steps in a marketing communications program
 To examine how various elements must be coordinated to
communicate effectively with the IMC perspective
Marketing Defined
The process of planning and executing
the ___________, _________, ________,
and __________ of _____, _____, and
_______ to create ________ that satisfy
individual and organizational objectives.
American Marketing Association
Marketing Defined
The process of planning and executing
the conception, pricing, promotion,
and distribution of _____, _____, and
_______ to create ________ that satisfy
individual and organizational objectives.
American Marketing Association
Marketing Defined
The process of planning and executing
the conception, pricing, promotion,
and distribution of ideas, goods and
services to create ________ that satisfy
individual and organizational objectives.
American Marketing Association
Marketing Defined
The process of planning and executing
the conception, pricing, promotion,
and distribution of ideas, goods and
services to create exchanges that satisfy
individual and organizational objectives.
American Marketing Association
The Marketing & Promotional
Mixes
 Product or service
 Pricing policy
 Distribution method (Place)
 Marketing communications mix (Promotion)





Advertising
Direct marketing
Sales promotion
Publicity/public relations
Personal selling
 Marketing plan : is a written document
that describes the overall marketing
strategy and programs developed for an
organization, product line, or brand.
Advertising
Any paid form of nonpersonal communication
about an organization, product, service, or idea by
an identified sponsor.
Advertising
 Marketers use advertising to:




create brand image
strike a responsive chord with consumers
when differentiation using other elements
of the marketing mix is difficult
create symbolic appeals for a company or
brand
take advantage of the fact that advertising
is a very cost-effective method of reaching
a large audience
Advantages of
Advertising:
 cost-effective way for communicating, with large
audiences
 ability to create images and symbolic appeals
and for differentiating similar products and
services
 ability to strike audience through creative
advertising
 ability to control the message (what, when and
how something is said and where it is delivered.
Disadvantages of Advertising:
the cost of producing and placing ads
can be very high, particularly television
commercials,
it can be difficult to determine the
effectiveness of advertising
there are credibility and image
problems associated with advertising
Spending in $Billions [United States]
250
200
150
Advertising
100
Sales
Promotion
50
0
1980
2000
Show
Net
Price***
Change
1 Friends
NBC
$473,500
3.9%
2 Will & Grace
NBC
$414,500
10.1%
3 ER
NBC
$404,814
-7.7%
4 Survivor
CBS
$390,367
-6.8%
5 Scrubs
NBC
$360,950
22.5%
6 Coupling
NBC
$316,400
*
7 CSI
CBS
$310,324
10.8%
8 The Simpsons
Fox
$296,440
19.4%
9 24
Fox
$292,200
58.3%
ABC
$272,867
-8.4%
10 Mon. Football
The "Change" field represents the difference from last season.
* 'Coupling' is a new show. There is no previous season comparison number.
***Price is the cost of placing a 30 second ad in the particular show
Rakamlarla reklam...
 Türkiye'de reklam sektörünün GSYH'ye oranı binde




5. Bu oran bazı gelişmiş ülkelerde yüzde 2
Türkiye'de 24'ü ulusal, 76'sı kablo, diğerleri bölgesel
ve yerel olmak üzere 340 televizyon kanalı var
34 ulusal gazate yayımlanırken, düzenli reklam alan
250 dergi bulunuyor
2006'da 14 bin firma 17 bin marka için reklam verdi
Tam hizmet veren reklam ajansı sayısı 100'ü buluyor
In 2005 in Turkey
One of the indicators of improvement in advertising sector is number of
new ads of firms and brands other one is the number of ads in total.
Last year 717 brands advertised for the first time.
In total 13,810,636 second of ads were run
TV shows were taking the lead.
National TV shows in total had 10,335,659 seconds of ads.
Foreign TV shows in total had 5,726,725 seconds of ads.
Number 1 was (with syndications) "Çocuklar Duymasın“ It was aired
382 times and had 515,073 seconds of ads.
Number 2 was "En Son Babalar Duyar". It was aired 366 times and
had 469,754 seconds of ads.
By 2007 February
 What are the most
watched TV shows?
 The most watched TV shows











Binbir Gece (Kanal D)
Avrupa Yakası (atv)
Acı Hayat (Show TV)
Sıla (atv)
Arka Sokaklar (Kanal D)
Yaprak Dökümü (Kanal D)
Sağır Oda (Kanal D)
Cennet Mahallesi (Show TV)
Candan Öte (Star)
Karagümrük Yanıyor (Star)
Ihlamurlar Altında (Kanal D)
Show TV reklam fiyatlari
What are the TV shows that get
the most # of ad placements?
TV Chn Show
StvSirlar Dünyas?
StvBe?inci Boyut
StvBüyük Bulu?ma
AtvAvrupa Yakas?
StvYagmurdan Sonra.
StvYeseren Düsler.
AtvSöhret.
AtvSelena
Star Iki Aile
#of Ads TV Chn
908 Kanal 7
807 Show TV
718 Kanal 7
653 Star.
637 Atv
586 Show TV
547 Show TV
513 Show TV
507 Show TV
Show
#of Ads
Kalp Gözü
827
Aci Hayat
741
Eksi
688
Köprü
640
Sila
626
Ezo Gelin
563
Emret Komutan 532
Yanik Koza
509
Cennet Mahalle 504
27 AUGUST-02 SEPTEMBER 2007
Most Advertised 10 Brands
 No
 1
 2
 3
 4
 5
 6
 7
 8
 9
 10
Brand
# of ads
Ülker İçim
884
Turkcell Süper Ligi
851
Clear
837
Beko
825
Denizbank
785
Bellona
769
Domestos
754
İstikbal
736
Elidor
729
Turkcell
674
Brand
Duration(sn)
Kosla
39.342
Turkcell
30.092
Ülker İçim
29.042
Turkcell Süper Ligi 25.310
THY
25.200
İş Bankası
24.080
Clear
23.454
Ülker Colaturka
19.727
Dove
19.556
Beko
18.353
Most Advertised Industries
 No
 1
 2
 3
 4
 5
 6
 7
 8
 9
 10
Industry
# of Ads
Gıda
10.818
Finans
4.643
Kozmetik
4.505
Ev Temizlik
4.270
Kişisel Bakım 3.104
Tekstil / Deri
2.965
İnşaat/Emlak 2.873
Yayıncılık
2.245
İletişim Tekno 2.128
Dayanıklı TM 2.122
Industry
Gıda
Finans
Ev Temizlik
Kozmetik
Kişisel Bakım
İletişim Tekno
Yayıncılık
İnşaat/Emlak
Otomotiv
Tekstil / Deri
Duration(sn)
243.562
122.216
115.929
106.237
77.438
75.898
69.893
67.511
51.637
44.049
What about Newspapers
 What are the
newspapers with the
most ad placements?
 Hürriyet
 Zaman
 Sabah
Circulation??? 03-09
September 2007
Weekly Circulation Numbers
 Posta
648.997
 Zaman
523.202
 P.Fotomaç 262.655
 Fanatik
248.494
 Milliyet
210.323
 Güneş
160.486
 Yeni Şafak 111.910
 Star
91.817
 Cumhuriyet 77.424
 A.Vakit
65.518
 Yeni Çağ
53.574
 Radikal
36.477
Hürriyet
593.355
Sabah
501.461
Takvim 248.546
Vatan
212.654
Akşam
196.664
Türkiye 149.423
Bugün
101.124
Sözcü
83.255
E. Fotospor
67.859
A.Şok
55.266
Milli Gazete
51.283
H.O.Tercüman 33.599
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
Sales Promotion
Marketing activities that provide extra value or
incentives to the sales force, distributors, or
ultimate consumers and can stimulate immediate
sales.
Advantages of Sales
Promotion
 provides extra incentive to consumer or
middlemen
 way of appealing to price sensitive
consumer
 effects can often be more directly
measured than those of advertising
 can be used as a way of building or
reinforcing brand equity
IMC and Branding
Brand Identity is a
combination of factors:
Name, logo, symbols,
design, packaging,
product or service
performance, and image
or associations in the
consumer’s mind.
IMC plays a major role
in the process of
developing and
sustaining brand
identity and equity.
2003 Brand Value
(Billions of Dollars)
1. Coca-Cola
2. Microsoft
3. IBM
4. GE
5. Intel
6. Nokia
7. Disney
8. McDonald’s
9. Marlboro
10. Mercedes
$70.5
$65.1
$51.8
$42.3
$31.1
$29.4
$28.0
$24.7
$22.2
$21.4
Intel’s Advertising Helps Build Brand
Equity
Disadvantages of Sales Promotion
 many companies are becoming too
reliant on sales promotion and focusing
too much attention on short-run
marketing planning and performance
 short-term sales gains are often
achieved at the expense of long-term
brand equity
Types of Sales Promotion
 Customer-oriented
 Trade-oriented
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
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.
Publicity Vehicles
 News releases: Single-page news stories sent
to media
 Feature articles: Larger manuscripts
 Captioned photos
 Press conferences
 Special events: Sponsorship of events, teams,
or programs of public value.
Advantages of Publicity
 credibility of publicity is usually higher
than other
 low cost way of communicating
 often has news value and generates
 word-of-mouth discussion among
consumers
Disadvantages of Publicity
 lack of control over what is said,
when, where and
 how it is said
 can be negative as well as
positive
Advertising Versus Publicity
 Advertising

_____, ___________,
nonpersonal (media)
communications.
 Publicity

___________, __________,
nonpersonal (media)
communications.
Advertising Versus Publicity
 Advertising

Paid , sponsor-identified,
nonpersonal (media)
communications.
 Publicity

Unpaid, unsponsored,
nonpersonal (media)
communications.
Advertising Versus Publicity
FACTOR
Control
Credibility
Reach
Frequency
Cost
Flexibility
Timing
ADVERTISING
Great
Lower
Achievable
Schedulable
Specific
High
Specifiable
PUBLICITY
Little
Higher
Undetermined
Low
Unspecified
Low
Tentative
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.
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.

flexibility exists to tailor the message to the
customers specific need or situation.
Advantages of Direct
Marketing
 changes in society- convenience
 Ability to be selective and target its
marketing communications to specific
customer segments
 messages can be customized
 effectiveness of direct-marketing efforts
are easier to assess than other forms of
promotion
Disadvantages of Direct Marketing
 consumers and businesses bombarded
with unsolicited mail and phone calls
which makes them less receptive to
direct-marketing
 direct marketing has image problems
 problems with clutter
Relationship Marketing
Marketing Focuses on EXCHANGE
nature of exchange what is needed
for this process to occur including:
 two
or more parties with
something of value to one
another;
 and a way for the parties to
communicate with one another.
________________
is the process of creating, maintaining
and enhancing long-term relationships
with individual customers as well as
other stakeholders for mutual benefit.
Relationship Marketing
is the process of creating, maintaining
and enhancing long-term relationships
with individual customers as well as
other stakeholders for mutual benefit.
Ford Motor Company
Ford’s Vision: To become the world's leading
consumer company for automotive products and
services
Integrated Marketing Communications
A concept of marketing communications
planning that recognizes the added value
of a comprehensive plan that evaluates the
strategic roles of a variety of
communication disciplines -- for example,
general advertising, direct response, sales
promotion, and public relations -- and
combines these disciplines TO PROVIDE
CLARITY, CONSISTENCY, and maximum
COMMUNICATIONS IMPACT.
Integrated Marketing
Communications
 Coordinating the
various
promotional
elements and
other marketing
activities that
communicate with
the firm’s
customers.
Reasons for Growth of IMC
 Planning efficiency and effectiveness.
 Consumer adoption of technology and media.
 Innovative marketing practices.
 Customer’s point of view
 Relationship Marketing
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
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.
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.
Situation Analysis
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
External Factors
Customer analysis
Competitive analysis
Environmental analysis
SUM UP
 Various elements of the promotional mix
 IMC planning process
 Steps in a marketing communications
program
 Coordination to communicate effectively
with the IMC perspective
Next Class
 Understanding how firms organize
advertising and IMC
 Examining methods for selecting,
compensating and evaluating Ad
Agencies
 Explaining the role of specialized
marketing communications organizations
To do!!!
 Read Chapter 2