INTEGRATED MARKETING COMMUNICATIONS (PROMOTION)

1. INTEGRATED MARKETING COMMUNICATIONS (PROMOTION) Marketing Communications Process The Promotional Mix Pull vs. Push Promotional Strategy Advertising, Personal Selling, Sales Promotion, and Public Relations The New Communications Paradigm

2. Integrated Marketing Communications Conveying a CONSISTENT message across ALL promotional mix tools The separate promotional mix messages are complementary, but also CONSISTENT

3. Elements in the Communication Process SENDER Media RECEIVER Message Encoding Decoding Noise Feedback Response

4. Response Hierarchy Models AIDA Modela Hierarchy-of- Effects Modelb Innovation- Adoption Modelc Communi- cations Modeld Stages Cognitive stage Attention Awareness Knowlege Awareness Exposure Reception Cognitive response Affective stage Interest Desire Liking Preference Conviction Interest Evaluation Attitude Intention Behavior stage Action Purchase Trial Adoption Behavior

5. PromotionPersuasive Communication Trying to convince the target market that what you are selling will satisfy its needs better than the competition

6. Basic Types of Promotion • Primary Demand Promotion-persuasive communication about the generic concept, product, or technology • Selective Demand Promotion -persuasive communication about one particular brand vs. another brand

7. Pull vs. Push Promotional Strategy • Pull -directing promotion at target market in effort to get customers to seek product from channel members • Push -directing promotion at channel members in effort to get them to promote product to target market

8. Push vs. Pull Promotion Producer Interme- diaries End users Marketing activities Demand Demand Push Strategy Marketing activities Producer Interme- diaries End users Demand Demand Pull Strategy

9. Promotional MixTools that marketing management can use to communicate persuasively with the target market • Advertising • Personal Selling • Sales Promotion • Publicity (Public Relations)

10. Advertising Mass persuasive communication paid for by an identified sponsor that makes use of various media

11. Message Message generation Message evaluation and selection Message execution Social-responsibility review Money Factors to consider: Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substituta- bility Mission Sales goals Adver- tising objectives Measure- ment Communi- cation impact Sales impact Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation The Five M’s of Advertising

12. Types of Advertising • Product advertising http://www.youtube.com/watch?v=p4pscr_vg5I&feature=pyv • Institutional advertising http://www.youtube.com/watch?v=rubcXpSV9pI • Pioneering advertising http://www.youtube.com/watch?v=RgBWBUPHUGM • Competitive advertising Reminder advertising http://www.youtube.com/watch?v=QJHWJHYH_bk • Comparative advertising http://www.youtube.com/watch?v=eudVDoAaTiw

13. Advertising Budgeting Methods • Percentage of sales • Competitive parity • All you can afford • Arbitrary • Objective and task

14. Measuring the Effectiveness of Advertising I know that half of the money I spend on advertising is wasted. I just don’t know which half. * Communication effects * Sales effects

15. (Attention) How well does the ad catch the reader’s attention? (Read-through) How well does the ad lead the reader to read further? (Cognitive) How clear is the central message or benefit? (Affective) How effective is the particular appeal? (Behavior) How well does the ad suggest follow-through action? ___ (20) ___ (20) ___ (20) ___ (20) ___ (20) ___Total Simplified Rating Sheet for Ads | | | | | | 0 20 40 60 80 100 Poor ad Mediocre ad Average ad Good ad Great ad

16. Personal Selling Persuasive communication delivered via direct spoken words between seller and potential customer

17. Major Sales force Management Decision Areas • Establishing sales force objectives • Designing sales force strategy, structure, size and compensation • Recruiting and selecting sales force • Training salespeople • Supervising salespeople • Evaluating salespeople

18. Major Steps in Effective Selling Prospecting and qualifying Preapproach Approach Presentation and demonstration Overcoming objections Closing Follow-up and maintenance

19. Steps in Relationship Building • Identify key customers for relationship building • Assign relationship manager to each customer • Develop job description for relationship managers • Appoint an overall manager to supervise the relationship managers • Hold relationship managers accountable for developing enhanced relationships with customers

20. Sales Promotion Promotional activities (other than advertising, personal selling, or publicity) aimed at stimulating interest, trial, or purchase. Examples Coupons, contests, games, special incentives, deals, etc.

21. Sales Promotion Aimed at Final Consumers or Users Contests Coupons Aisle Displays Samples POP Displays Banners and Steamers Frequent Buyer Programs Sponsored Events

22. Sales Promotion Aimed at Wholesalers or Retailers Price Deals Promotion Allowances Sales Contests Calendars Gifts Trade Shows Meetings Catalogs and Videos Merchandising Aids

23. Sales Promotion Aimed at Company’s Own Sales Force Contests Bonuses Meetings Portfolios Displays Sales Aids Training Materials

24. Publicity(Public Relations) Any form of unpaid nonpersonal presentation of ideas, goods, or services

25. The New Communications Paradigm • Agents: • Advertising Agency • Marketing Research • Public Relations Firm • Traditional Promotional Mix: • Advertising • Personal Selling • Public Relations and Publicity • & • Social Media: • Blogs • Social networking sites • Video sharing Marketplace: Consumers Social Media Consumers Organization Consumers From: Mangold, W. Glynn and David J. Faulds (2009). “Social Media : The New Hybrid Element of the Promotion Mix,” Business Horizons, 52, 357-365

26. Social Media Social networking sites (Facebook, Twitter) http://www.youtube.com/watch?v=6ju4LyQaZCE&feature=related Creativity Works sharing sites (YouTube, Flickr) User-sponsored blogs Company-sponsored blogs Business networking sites (LinkedIn) Podcasts Social bookmarking sites allowing users to recommend online news stories, music, videos (Digg, Newsvine, Mixx it, Reddit)

27. Social Media’s Promotional Roles Companies can “talk” to their customers and customers can “talk” to companies 2. Customers can communicate with one another http://www.youtube.com/watch?v=gza8dvN8Hkc From: Mangold, W. Glynn and David J. Faulds (2009). “Social Media : The New Hybrid Element of the Promotion Mix,” Business Horizons, 52, 357-365

28. The Power of Social Media Consumers are turning away from traditional mass media Consumers utilize social media for information gathering and purchase decisions Social media is often perceived as a more trustworthy information source From: Mangold, W. Glynn and David J. Faulds (2009). “Social Media : The New Hybrid Element of the Promotion Mix,” Business Horizons, 52, 357-365