Transcript Mkt 440 Class2-

Mkt440/Advertising & Promotions
IMC and Planning
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Marketing Concept and Mix
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IMC Planning
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Setting Objectives
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Promotion/IMC Plan Outline
April 1, 2016
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
The Marketing Concept
“Find/Create
a Need/Problem,
and
Solve It
at a Profit.”
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
The Marketing Mix
Step One
The Target Market -- Needs, Wants, Expectations
Step One
The Positioning -- The Story
Brand Image & Competitive Advantage
Step Two
The 4 P’s
Product ---- Price ---- Place ---- Promotion
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Successful Planning
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
The Promotion/IMC Plan
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Assembles all pertinent facts/assumptions about:
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an organization
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its markets
products and services
customers
competition
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Summarizes the collected information with a
SWOT Analysis.
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Specifies objectives, strategies and tactics of the
IMC effort.
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Top-Down Planning
Situation
Analysis
Marketing
Objectives
Marketing
Strategy
Marketing
Tactics
Monitoring &
Evaluation
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Bottom-Up Planning
Marketing
Results
Marketing
Strategy
Marketing
Tactics
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Integrated Marketing
Communications (IMC)
The process of building and reinforcing mutually
profitable relationships with employees,
customers, other stakeholders, and the general
public
by developing and coordinating a strategic
communications program
that enables them to have a constructive encounter
with the company/brand through a variety of
media or other contacts.
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
IMC
(a.k.a. Relationship Planning)
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Lost Customers are Hard to Re-acquire
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Defensive Marketing is Cheaper than Offensive
Marketing
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Repeat Purchasers Account for 90% of Sales
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Current Consumers are the lifeblood of the
company, not sales.
Share of Customer vs. Share of Market
 Brand Loyalty
 Lifetime Customer Value (LCV)
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
IMC
(a.k.a. Relationship Planning)
 The
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“4 C’s”
4 P’s/Inside Focus
4 C’s/Outside Focus
 Product
Customer
 Price
Cost
 Place
Convenience
 Promotion
Communication
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Types of Relationships
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Basic Transactional Relationship
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Reactive Relationship
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Accountable Relationship
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Proactive Relationship
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Partnership
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Marketing Communications
Functions Used in IMC
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Mass Media Advertising
Specialty advertising
Sales promotion
Direct response
Public relations
Events and sponsorships
Trade and consumer shows
Merchandising and point of purpose
Personal selling
Customer service
Licensing
Packaging
E-Commerce
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
The Integration Triangle
Say
Planned
Messages from
Company
Confirm
Unplanned
Word-of-Mouth
messages from
Customers
Do
Actual Messages
from
Product/Service
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Setting IMC Objectives
Specify what the company wants from its IMC functions:
Do
Do
Action
Desire
Feel
Conviction
Feel
Comprehension
Learn
Awareness
Learn
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Setting IMC Objectives(Cont.)
Specify what the company wants from its IMC functions:
Action
5 customers
Desire
25
Conviction
50
Comprehension
80
Specific, quantitative, realistic
goals to be achieved in a
specified period of time
Awareness
100 people
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Relationship Objectives
Specify what the company wants from its IMC functions:
Champs
Specific, quantitative, realistic
goals to be achieved in a
specified period of time
5 customers
Clients
25
Customers
50
Prospects
80
Target Market
100 people
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Number of
Products Sold
Advertising and Sales
X
Advertising Expenditures ($)
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
IMC/Promotion Plan
Outline
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Letter of Transmittal
Executive Summary
Company and Product(s) Background
SWOT Analysis (highlights of economic, industry,
market share and consumer trends, competitive analysis,
etc.)
Campaign Objectives ($ and unit sales, new customers,
awareness, etc.)
Target Market Profile (demographic, lifestyle,
problems/needs, and interests Supported with research.
Include “a customer profile” and/or “a day in the life”
scenario.)
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Where to Find SWOT Analyses For Nearly
500 Companies.
The University Library, via Business Source Premier, has a
database that provides SWOT analyses on 497 companies.
Most of the entries are 3 to 6 pages as part of their DataMonitor
Report. Datamonitor is a respected business
information/research firm.
How to access:
•Go http://www.calstatela.edu/library/databases.htm
•Find and select “Business Source Premier” in the Database
Quick Pick box at the bottom of the page.
•Select “Company Profiles” from the "ribbon" below the tabs at
the top of the page.
•Type in the name of company (Apple, American Airlines,
Starbucks, Wal-Mart). Hit browse.
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
IMC/Promotion Plan Outline
(Cont.)
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Positioning Statement (including proof/support)
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Creative Execution (ad roughs for all selected
media)
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Media Plan (media mix, schedule, GRP’s, etc.)
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Sales Promotion Plan (consumer and/or trade)
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Public Relations and Publicity Plans
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Budget Recap (by month; all activities)
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Planning Calendar
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.