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12. Integrated Marketing Communication: Advertising, Sales Promotion, and Public Relations. ROAD MAP: Previewing the Concepts. Discuss the process and advantages of integrated marketing communications.

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Integrated marketing communication advertising sales promotion and public relations

12

Integrated Marketing Communication: Advertising, Sales Promotion, and Public Relations


Road map previewing the concepts
ROAD MAP: Previewing the Concepts

  • Discuss the process and advantages of integrated marketing communications.

  • 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.


Marketing communications mix
Marketing Communications Mix

  • Advertising

    • Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

  • Sales Promotion

    • Short-term incentives to encourage the purchase or sale of a product or service.


Marketing communications mix1
Marketing Communications Mix

  • Public Relations

    • 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.

  • Personal Selling

    • Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.


Marketing communication mix
Marketing Communication Mix

  • Direct Marketing

    • Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—the use of telephone, mail, fax, e-mail, the Internet, and other tools to communicate directly with specific consumers.


The changing communications environment
The Changing Communications Environment

Two factors are changing the face of today’s marketing communications:

As mass markets have fragmented, marketers

are shifting away from mass marketing

Vast improvements in information technology

are speeding the movement toward segmented

marketing


The need for imc
The Need for IMC

Using IMC, the company carefully

integrates and coordinates its many

communication channels to deliver

a clear, consistent, and compelling

message about the organization

and its brands.



Advertising
Advertising

  • Can reach masses of geographically dispersed buyers.

  • Can repeat a message many times.

  • Is impersonal, one-way communication.

  • Can be very costly for some media types.


Personal selling
Personal Selling

  • Involves personal interaction between two or more people.

  • Allows relationship building.

  • Most expensive promotion tool.


Sales promotion
Sales Promotion

  • Wide assortment of tools.

  • Attracts consumer attention.

  • Offers strong incentives to buy.

  • Invites and rewards quick consumer response.

  • Effects are short-lived.


Public relations
Public Relations

  • Very believable.

  • Reaches people who avoid salespeople and ads.

  • Can dramatize a company or product.

  • Tends to be used as an afterthought.

  • Planned use can be effective and economical.


Direct marketing
Direct Marketing

  • Many forms that share four characteristics:

    • Nonpublic

    • Immediate

    • Customized

    • Interactive

  • Well suited to highly targeted marketing.



Advertising1
Advertising

  • Advertising has been used for centuries.

  • U.S. advertisers spend more than $237 billion each year; worldwide spending approaches $470 billion.

  • Advertising is used by:

    • Business firms

    • Nonprofit organizations

    • Professionals

    • Social agencies

    • Government



Setting advertising objectives
Setting Advertising Objectives

  • An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time.

  • Classified by purpose:

    • Inform

    • Persuade

    • Compare

    • Remind


Comparative advertising
Comparative Advertising

Progresso makes side-by-side comparisons of its soup versus Campbell’s, inviting consumers to “Enjoy a better soup…with a more adult taste.”


Interactive student assignment
Interactive Student Assignment

  • Choose a partner and discuss why comparative advertising is used so frequently. Do you think this approach to advertising is effective? Can you think of any situations where this type of advertising has influenced your buying behavior?


Setting the advertising budget

Affordable

Based on What the Company Thinks it Can Afford

Percentage-of-Sales

Based on a Percentage of Current or Forecasted Sales

Setting the Advertising Budget

Competitive-Parity

Set Budget to Match Competitors

Objective-and-Task

Set Objectives, Determine Tasks to Achieve Objectives,

Sum of Task Costs Equals Budget


Developing advertising strategy
Developing Advertising Strategy

  • Consists of two major elements:

    • Creating advertising messages

    • Selecting advertising media


The message strategy
The Message Strategy

Identify Customer Benefits

Develop Compelling Creative Concept

The “Big Idea”

Advertising Appeals Should Be

Meaningful, Believable, & Distinctive


A new advertising challenge
A New Advertising Challenge

The new wave of personal video recorders, such as TiVo, has armed viewers with an arsenal of new-age zipping and zapping weapons.


Message execution
Message Execution

Slice of Life

Testimonial Evidence

or Endorsement

Lifestyle

Scientific Evidence

Fantasy

Technical Expertise

Typical

Approaches

Mood or Image

Personality Symbol

Musical


Celebrity endorsement
Celebrity Endorsement

Nike’s association with Michael Jordan helps the brand succeed, but also emphasizes the qualities that Nike stands for.

Click the picture above to play video


Humor in advertising
Humor in Advertising

These days, it seems as though almost every company is using humor in its advertising, even the scholarly American Heritage Dictionary.


Message execution1
Message Execution

  • Choose a tone

  • Use memorable, attention-getting words

  • Choose correct format elements

    • Illustration

    • Headline

    • Copy


Selecting advertising media
Selecting Advertising Media

  • Reach

    • Percentage of people exposed to ad

  • Frequency

    • Number of times a person is exposed to ad

  • Media Impact

    • The qualitative value of a message exposure through a given medium


Choosing media type
Choosing Media Type

  • Factors to consider:

    • Media habits of target consumers

    • Nature of the product

    • Type of message

    • Cost

    • Media vehicles

      • Specific media within each general media type


Deciding on media timing
Deciding on Media Timing

  • Must decide how to schedule the advertising over the course of a year

    • Follow seasonal pattern

    • Oppose seasonal pattern

    • Same coverage all year

  • Choose the pattern of the ads

    • Continuity

    • Pulsing


Evaluating advertising
Evaluating Advertising

Measure the communication effects of an ad.

“Copy Testing”

Measure the sales effects of an ad.

Is the ad increasing sales?


Other advertising considerations
Other Advertising Considerations

Small Companies:

Sales Departments

Large Companies:

Advertising Departments

Advertising Agency:

A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs.

International Issues


Sales promotion1
Sales Promotion

  • Sales promotion consists of short-term incentives to encourage the purchase or sales of a product or service.

  • The idea behind sales promotion is to generate immediate sales.


Sales promotion2
Sales Promotion

Today’s food marketers are using more and more push promotions, including consumer price promotions.


Rapid growth of sales promotion
Rapid Growth of Sales Promotion

  • Sales promotion can take the form of consumer, business, trade, 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


Sales promotion objectives
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

    • buy ahead

  • Sales Force: getting more sales support.

  • In general, sales promotion should build long-term customer relationships.


Consumer sales promotion tools
Consumer Sales Promotion Tools

Sample

Offers a trial amount of a product

Coupons

Savings when purchasing specified products

Cash Refunds

“Rebates”

Refund of part of the purchase price by mail

Price Packs

“Cents-Off Deals”

Reduced prices marked on the label or package by producer

Premiums

Goods offered free or low cost as an incentive to buy a product

Advertising

Specialties

Articles imprinted with an advertiser’s name given as gifts


Consumer sales promotion tools1
Consumer Sales Promotion Tools

Patronage Rewards

Cash or other award offered for regular use of a product or service

Point-of-Purchase

Promotions

Displays or demonstrations at the point of purchase or sale

Contest

Consumers submit an entry to be judged by a panel

Sweepstakes

Consumers submit their names for a drawing

Games

Consumers receive something each time they buy which may help them win a prize


Discussion Question

  • Why do retailers tend to prefer rebates to coupons?


Trade promotion
Trade Promotion

Tools

Objectives

Persuade resellers to carry a brand

Give a brand shelf space

Promote brand in advertising

Push brand to customers

Discounts

Allowances

Free Goods

Push Money

Specialty Advertising Items


Business promotion
Business Promotion

Tools

Objectives

Generate business leads

Stimulate purchases

Reward customers

Motivate salespeople

Conventions

Trade shows

Sales contests


Trade show
Trade Show

More than 4,300 trade shows take place every year, drawing as many as 85 million people.


Developing the sales promotion program

Decide on the Size of the Incentive

Set Conditions for Participation

Developing the Sales Promotion Program

Decide How to Promote and

Distribute the Promotion Program

Decide on the Length of the Program

Evaluate the Program


Public relations1
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.


Public relations2
Public Relations

Public relations is used to promote products, people, places, ideas, activities, organizations, and even nations. New York City turned its image around when its “I Love New York!” campaign took root, bringing millions more tourists to the city.


Public relations functions
Public Relations Functions

  • Press relations or press agency

  • Product publicity

  • Public affairs

  • Lobbying

  • Investor relations

  • Development


Public relations tools
Public Relations Tools

  • News

  • Speeches

  • Special events

  • Buzz marketing

  • Mobile marketing

  • Written materials

  • Audiovisual materials

  • Corporate identity materials

  • Public service activities

  • Company Web site


Rest stop reviewing the concepts
Rest Stop: Reviewing the Concepts

  • Discuss the process and advantages of integrated marketing communications.

  • Define the five promotion tools and discuss 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.


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