An Introduction to Integrated Marketing Communication

1. Chapter 1 An Introduction to Integrated Marketing Communication

2. What is Promotion? • Communication process in marketing • It is used to create a favorable predisposition toward brand concept, services, idea, or person. • Implementing the three other marketing mix factors • Achieving market segmentation, product differentiation, and positioning • Enhancing revenues and profits

3. Promotional Mix • A blend of communication tools and activities used by a firm • Advertising • Sales Promotion • Publicity/Public Relations • Direct Marketing • Interactive/Internet marketing • Personal Selling

4. Advertising • Any paid form of non-personal communication about an organization, product, service or idea by an identified sponsor.

5. 10 Leading Advertisers in the United States, 2006

6. 20 Leading Advertisers in Taiwan, 2009

7. Major Decisions in Advertising

8. Advertising Pros: • Cost-effective for large audiences • Differentiates between similar products, e.g. Marlboro, 多喝水, 泰山Twist Water. • Brand equity • Empathizes with target audience • Control of the message

9. Advertising Cons: • Media and production costs • On average, U.S. advertisers pay $332,000 to produce a single 30-second television commercial; Nike’s “The Wall” – $2,000,000. • 25,000～40,000/10sec. • Effectiveness difficult to judge • Credibility and image problems

10. Sales Promotion • Activities that provide extra value or incentive to the sales force, distributors or the ultimate consumer and can stimulate immediate sales.

11. Coupons Coupons Trade Allowances Samples Samples Premiums Premiums POP Displays POP Displays Contests/Sweepstakes Contests/Sweepstakes TrainingPrograms TrainingPrograms Refunds/Rebates Refunds/Rebates Bonus Packs Bonus Packs TradeShows TradeShows Loyalty Programs Loyalty Programs CoopAdvertising CooperativeAdvertising Events Events • Trade-oriented • [For resellers] • Consumer-oriented • [For end-users] Sales Promotion Tools

12. Introduce new products Get existing customers to buy more Introduce new products Get existing customers to buy more Attract new customers Combat Competition Attract new customers Sales Promotion Enhance personal selling Maintain sales in off season Enhance personal selling Maintain sales in off season Tie in advertising & personal selling Increase retail inventories Tie in advertising & personal selling Increase retail inventories Various Uses of Sales Promotion

13. Sales Promotion • Pros: • Extra incentive to consumer or retailer • Appeals to price sensitive consumer • Generates interest in product or ad • Easier to measure, e.g. 7-11 Hello Kitty: revenue↑11.82%, profits↑29.33%. • Cons: • Short-run strategy • Affects brand image, brand equity • Stock problem

14. 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. • News stories, features, sponsorships, and events seem more real and believable to readers than ads do.

15. Megamarketing (巨行銷) • Megamarketing is the strategic coordination of economic, psychological, political, and public relations skills, to gain the cooperation of a number of parties in order to enter or operate in a given market. • 4Ps + 2Ps (politics & public opinions) • Examples: PepsiCo in India, Harley-Davidson.

16. Public Relations Tools Publicity Vehicles Special Publications Publicity Vehicles Special Publications Community Activities Corporate Advertising Cause-related Marketing Community Activities Corporate Advertising Cause-related Marketing Special Event Sponsorship Public Affairs Activities Public Affairs Activities

17. Cause-related Marketing (公益行銷, 善因行銷) • Link the firm’s contributions to a designated cause to customers’ engaging directly or indirectly in revenue-producing transactions with the firm • The creation of the term "cause-related marketing" is attributed to American Express. • Some experts believe that the positive impact on a brand from cause-related marketing may be lessened by sporadic involvement with numerous causes. • Branding: self-branded, co-branded, and jointly-branded.

18. Public Relations • Pros: • Credibility • Low cost • News value generating word-of-mouth • Cons: • Lack of control • Negative as well as positive

19. Publicity (公關宣傳) • Nonpersonal communications regarding an organization, product, service, or idea not directly paid or run under identified sponsorship. • It usually comes in the form of a news story, editorial, or announcement about an organization and/or its products and services.

20. Feature Articles Feature Articles News Releases News Releases Interviews Interviews PublicityVehicles Press Conferences Special Events Special Events Publicity Vehicles

21. Factor Advertising Publicity Control Great Little Credibility Lower Higher Reach Undetermined Measurable Frequency Uncontrollable Schedulable Cost Low/Unspecified High/Specific Flexibility Low High Timing Tentative Specifiable Advertising vs. Publicity

22. Direct Marketing • Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. • Four characteristics: nonpublic, immediate, customized, and interactive.

23. Direct Marketing Direct Mail Direct Mail Direct Response Advertising Internet Sales DirectMarketing Shopping Channels Shopping Channels Telemarketing Telemarketing Catalogs Catalogs

24. Direct Marketing • Pros: • Convenience for consumers • Selectivity of audience • Tailored/ customized communications • Easier to measure effects • Cons: • Direct mail and telemarketing – too much • “Junk mail” image

25. Personal Selling • Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. • Pros: • Communication flexibility • Customized to consumer • Feedback • Specific targeting • Cons: • High cost per contact • Not cost-effective for large audience • Low consistency of message