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Integrated Marketing Communications Advertising, Promotion, Public Relations and Selling

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  1. Integrated Marketing CommunicationsAdvertising, Promotion, Public Relations and Selling Marketing 5341 Chip Besio

  2. The communication process

  3. BMW X3Who is the source and what is the message?

  4. The promotional mix Slide 18-15

  5. FenceIndustryWho is the target audience?

  6. Factors that influence the use of promotional tools

  7. Purina Dog ChowWhat stage in its product life cycle andhow does its promotional mix change?

  8. Promotional tools used over the product life cycle of Purina Dog Chow Slide 18-28

  9. 6 Ms of Advertising Market - target consumer Mission - objectives. Money - to pay for the campaign. Message - to be delivered. Media - choice of advertising media. Measure - measuring the impact.

  10. Mission - Advertising / Promotional objectives To increase sales To attract new customers To retain existing ones To encourage customer loyalty To encourage trial To create awareness To inform To remind To reassure To encourage customer contact To modify attitudes To create an image To position a product To encourage brand switching To improve position in the market To enlarge the market To pull the product through the channels To push the product through the channels

  11. Personal selling vs advertising Relative importance of the two main elements in the promotional mix % of Promotional Effort Personal Selling Advertising Simple / Inexpensive Goods Complex / Expensive Goods

  12. Mission - Advertising and Promotion

  13. Money - Determining the budget The advertising budget will be set in terms of one of: What can be afforded A given % of sales Comparison with rivals Objective and task- whatever is needed to achieve objectives

  14. Media - Factors in the choice of media Marketing mix Relative Cost Target audience Impact of the media Reach and selectivity of the media Competition Legal constraints Permanence of the media The nature of the product Size and spread of the market Advertising budget The message to be conveyed

  15. Advertising/Promotion Segmentation/Positioning What is the purpose of this ad and who is the target?

  16. Advertising ROI What competitive benefit will be promised?

  17. Advertising ROI Benefits must be Promised and Supported Relevance our beer is brewed in Belgium ….. Must tell the beer drinker why that matters Originality Impact

  18. What personalitywill distinguish thebrand? Consistency of traits Predictability different from and better than ….

  19. Television Advantages Large audience Low cost per exposure High impact- colour, sound and movement Can target specific groups Disadvantages Very high overall cost Limited prime time space Short-lived May not be watched- visual wallpaper Proliferation of channels reduces audience Conveys only a limited message

  20. Magazines Advantages Useful for targeting specific groups Good reproduction- high quality gloss images Long life-read at leisure Can be linked to features All consumer interests catered for Disadvantages Can be expensive Long lead time Some magazines are only published monthly Moderate impact Slow impact due to long life Magazines with limited readership are not suitable for mass marketing

  21. Advertising on the Internet Paid-for search inclusion (e.g. Google Adwords) Company website. Banner ads - on line adverts on relevant website. Link exchange- mutual exchange of links between web sites or similar or complementary interest. Search engine/directory listing. Ezine/email sponsorship- on line magazines delivered to subscribers via email.

  22. Advertising and Promotion

  23. Advertising and Promotion Internet advertising is rapidly replacing some traditional ad forms

  24. Radio Advantages Relatively inexpensive Can target specific segment Relatively mobile Local Disadvantages Limited impact No vision Short life Listener’s attention limited Audio wallpaper Mainly local rather than national

  25. Newspapers Advantages Widely read Can target specific segments Frequent publication Short lead time Inexpensive compared to television Local, regional and national papers available Colour printing adds to impact Disadvantages Short life Low impact May get lost in the rest of the paper Not every group reads a paper High costs especially for national newspaper

  26. Cinema Advantages High impact Captive audience Can be specifically targeted Local audience Visual, sound, movement Disadvantages Limited audience Mainly young audience Short lived message May only be seen once

  27. Outdoor (Billboards) Advantages Repeatedly seen 24/7 coverage Target particular area May encourage impulse buying if close to shops Local media Disadvantages Message must be short and simple Cannot target socio economic groups Rarely attract full attention Short lived May be seen as traffic hazard Difficult to measure effectiveness

  28. Advertising and Promotion

  29. Advertising and Promotion Frequency is better than reach

  30. The Evolution of Advertising in the United States - Madison and Vine Branded Entertainment • The blending of advertising and integrated brand promotion with entertainment programming • Brand “placement” key tactic here • Some films and television programs are considered hour long promotions

  31. Personal Selling

  32. Selling and the promotional mix Personal selling is one element of the promotional mix. In business to consumer markets (B2C) personal selling and advertising are the main elements of the mix. Personal selling becomes more important when The product is more complex The product is more expensive The product is bought infrequently The customers is another business i.e. B2B markets

  33. The role of the sales representative To gather information about customer wants To communicate information especially on the advantages of the product to the customer To prospect-look for new opportunities. Prospecting is concerned with locating potential customers To display and demonstrate the product To advise customers To advise on stock levels To progress orders To build goodwill To deal with complaints To close the sale - i.e. to secure a sale To provide after -sales service To collect orders from customers In some cases, to make deliveries

  34. The essence of personal selling The presentation of products and associated persuasive communication to potential clients Involves two way, persuasive communication The aim is to match customer needs with the goods/services on offer Ultimate objective: to make a sale

  35. B2C transactions where personal selling is…. Very important Motor vehicles Fitted kitchens Double glazing Security systems Conservatories Shopping and speciality goods Unimportant Food Grocery Clothing CDs/DVDs Books i.e. Convenience goods

  36. A comparison of push and pull promotional strategies

  37. Consumer promotions Promotions aimed at the consumers Examples: Price reduction Coupons Vouchers Competition Free gifts Premium offers Trade-in offers Stamps Events Displays BOGOF

  38. Advertising and Promotion - Consumer

  39. Trade promotions Promotions aimed at intermediaries The purpose is to encourage intermediaries to stock the product Examples Loyalty bonuses Sale or return Range bonuses Credit Delayed invoicing New product offers Competitions Trade in offers Free services Training Reciprocal buying

  40. Advertising and Promotion - Trade

  41. The scope of PR Promoting products and services through media publicity. Enhancing public awareness of the company. Projecting the company’s mission and philosophy. Portrayal of the company as a good corporate citizen. Protecting the company’s reputation. Projecting the organization as a source of opportunities. Obtaining favourable comment in the media.

  42. The promotion decision process