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Introduction to Marketing
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
Chapter 13 Objectives
1. Appreciate the variety of marketing
communications tools, and how they
work together to accomplish
communication objectives.
2. Understand the nature, importance,
and features of integrated marketing
communications.
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
Chapter 13 Objectives
3. Describe the concept of brand-equity
enhancement and the role of
marketing communications in
facilitating this objective.
4. Comprehend the factors that
determine how different marketing
communications elements are
effectively combined.
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
Chapter 13 Objectives
5. Discuss the primary decision
spheres involved in managing the
marketing communications process.
6. Evaluate the nature and function of
the major MarCom tools: (a)
advertising, (b) sales promotion, (c)
public relations, and (d) sponsorship
and event marketing.
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
Integrated Marketing Communications
• The dramatic changes in the field of
marketing communications over the last
decade have challenged marketing
communicators to use communications
methods that will:
– Break through the communications
clutter in the marketplace
– Reach audiences with interesting and
persuasive messages
– Assure that MarCom investments yield
an adequate return on investment
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
The Tools of Marketing Communications
The MarCom Mix:
1.
2.
3.
4.
5.
Personal Selling
Advertising
Public Relations
Sales Promotion
Sponsorship Marketing
Objective 1
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
The MarCom Mix
1. Personal Selling
• Interaction between salesperson and
prospect to sell products such as
insurance, automobiles, and real
estate.
Objective 1
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The MarCom Mix
2. Advertising
• Informs the end customer or B2B
customer about products and
brand benefits and ultimately
influences brand choice.
Objective 1
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The MarCom Mix
3. Public Relations
• Garners positive publicity for the
company and its brands through
news items or editorial comments.
Objective 1
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The MarCom Mix
4. Sales Promotion
• Creates an immediate response from
the market.
– Trade-oriented sales promotions
– Consumer-oriented sales
promotions
Objective 1
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The MarCom Mix
5. Sponsorship Marketing
• Represents an opportunity for a
company and its brands to directly
target communications toward narrow,
but highly desirable, audiences.
• Associates a brand with a charitable
cause, a high profile event, or a cultural
affair.
Objective 1
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
The Philosophy and Practice of Integrated
Marketing Communications
Integrated Marketing Communications:
•
A move towards fully integrating all
business practices that communicate
something about a company’s brands to
present or prospective customers.
Objective 2
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
Integrated Marketing Communications
Five Key Aspects of IMC:
1. Start with the customer or prospect
2. Use any form of relevant contact
3. Achieve Synergy
4. Build Relationships
5. Affect Behavior
Objective 2
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
The Philosophy and Practice of Integrated
Marketing Communications
Key Changes in MarCom from the IMC Thrust:
• Reduced dependence on mass-media
advertising.
• Increased reliance on highly targeted
communication methods.
• Expanded efforts to assess communications’
return on investment.
Objective 2
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
Enhancing Brand Equity
•
Brand Equity:
A brand possesses equity to the extent
that customers are familiar with the brand
and have stored in memory favorable,
strong, unique brand associations.
•
Brand Equity consists of two forms
of knowledge:
– Brand Awareness
– Brand Image
Objective 3
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
Enhancing Brand Equity
•
Brand Awareness:
– Brand Recognition
– *Brand Recall*
(It is this deeper level of awareness, recall,
to which marketers aspire)
•
Brand Image:
– Can be thought of in terms of the types
of associations that come to the
consumer’s mind when contemplating a
particular brand.
Objective 3
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
Determining an Appropriate Mix of IMC Tools
Five Factors to Consider:
1. What is the intended market?
2. What objectives must the MarCom initiative
achieve?
3. What is the product life-cycle stage?
4. What are competitors doing?
5. What is the available budget for marketing
communications?
Objective 4
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Managing the MarCom Process
Six Primary Areas of Decision Influence:
1.
2.
3.
4.
5.
Selecting target markets
Establishing objectives
Setting budgets
Formulating positioning strategies
Establishing and implementing message
and media strategies
6. Evaluating program effectiveness
Objective 5
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Advertising
3 Ways to Add Value to Offerings:
1. Innovating
2. Improving quality
3. Altering consumer perspectives
•
Advertising adds value to brands by
influencing consumers’ perceptions.
Objective 6A
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Advertising
Six Major Activities of Advertising Strategy:
1.
2.
3.
4.
5.
6.
Objective setting
Budgeting
Positioning
Planning message strategy
Developing media strategy
Assessing advertising effectiveness
Objective 6A
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
Advertising
Good or Effective Advertising:
•
•
•
•
•
•
Extends from sound marketing strategy
Takes the consumer’s view
Is persuasive
Finds a unique way to break through
competitive clutter
Never promises more than it can deliver
Prevents the creative idea from
overwhelming the strategy
Objective 6A
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Sales Promotion
•
Sales Promotions are the use of any
incentive by a manufacturer to induce the
trade (wholesalers and retailers) and/or
consumers to buy a brand and to
encourage the sales force to aggressively
sell it.
Objective 6B
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Sales Promotion
•
Over the last two decades, there has been
a shift from Advertising to Sales
Promotion.
6 Factors accounting for Shift:
1.
2.
3.
4.
5.
6.
Balance of power transfer
Increased brand parity and price sensitivity
Reduced brand loyalty
Splintering of the mass market and reduced media
effectiveness
Short term orientation and corporate reward
structures
Trade and consumer responsiveness Objective 6B
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Sales Promotion
Sales Promotion: Roles and Objectives
1. Facilitating the introduction of new
products to the trade.
2. Obtaining trial purchases from consumers.
3. Stimulating sales force enthusiasm for
new, improved, or mature brands.
4. Invigorating sales of a mature brand.
5. Increasing on- and off-shelf merchandising
space.
Objective 6B
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Sales Promotion
Sales Promotion: Roles and Objectives
6. Neutralizing competitive advertising and
sales promotion.
7. Holding current users by encouraging
repeat purchases.
8. Increasing brand usage by loading
consumers.
9. Preempting competition by loading
consumers.
10. Reinforcing advertising.
Objective 6B
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Sales Promotion
Trade Promotions:
•
Trade Promotions are directed at wholesalers,
retailers, and other marketing intermediaries, and
represent the first step in any promotional effort.
Consumer Promotions:
•
Consumer Promotions encourage consumers to
purchase one brand over another, to purchase a
particular brand more often, and to purchase in
larger quantities through activities such as
sampling, couponing, sweepstakes, and
contests.
Objective 6B
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Public Relations
•
PR is the MarCom tool that is uniquely
suited to fostering goodwill between a
company and its various publics.
•
It can also increase brand awareness,
build favorable attitudes toward a
company and its products, and encourage
purchase behavior.
Objective 6C
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Public Relations
•
Proactive MPR is another MarCom tool in
addition to advertising and sales
promotion that can give a brand additional
exposure, newsworthiness, and
credibility.
•
Reactive MPR is undertaken as a result of
external pressures and challenges
brought by competitive actions, changes
in consumer attitudes, changes in
government policy, or other external
influences.
Objective 6C
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Sponsorship Marketing
•
Sponsorships range from supporting
athletic events to throwing corporate
weight behind a worthy cause.
•
•
Event Marketing
Cause Related Marketing
Objective 6D
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Sponsorship Marketing
•
Four Factors account for the growth in
sponsorships:
1. Enables companies to avoid the clutter
inherent in advertising media
2. Helps companies respond to consumers’
changing media habits
3. Helps companies gain the approval of
various constituencies
4. Enables marketers to target their
communication and promotional efforts to
specific regions or groups
Objective 6D
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.