Transcript Chapter 10
MARKETING STRATEGY O.C. FERRELL • MICHAEL D. HARTLINE 10 Integrated Marketing Communications Integrated Marketing Communication • Integrated Marketing Communication (IMC) – “…the strategic, coordinated use of promotional elements to ensure maximum persuasive impact on the firm’s current and potential customers.” • Reasons that IMC is important: – Fosters long-term relationships – Reduces or eliminates promotional redundancies – Technology allows better targeting of customers 10-2 Promotional Elements Used in IMC Exhibit 10.1 10-3 Discussion Question • How might the IMC strategy for a dot-com company differ from a traditional company? Would the dot-com company have an advantage or a disadvantage relative to its offline competitors? Explain your answer. 10-4 Strategic Issues in Integrated Marketing Communications • IMC must have clear promotional goals and objectives • The AIDA Model – – – – Attention Interest Desire Action • Promotional goals with respect to the supply chain – Push or pull strategy? 10-5 Discussion Question • Review the steps in the AIDA model. In what ways has promotion affected you in various stages of this model? Does promotion affect customers differently when the product is inexpensive versus when it is expensive? Explain your answer. 10-6 Promotion Strategy Over the Product Life Cycle Exhibit 10.2 10-7 Advertising • Types of Advertising – Institutional advertising – Advocacy advertising – Product advertising • Determining the Advertising Budget – – – – Objectives and task approach Percentage of sales approach Competitive matching approach Arbitrary approach 10-8 Focusing on Women’s Issues 10-9 Marketing Strategy in Action • The Dairy Board’s “Got Milk” campaign is a good example of successful pioneer advertising. • How does this type of advertising benefit all sellers in the market? What is the primary goal of pioneer advertising? 10-10 Spending on National Advertising: 2003 Projections Exhibit 10.3 10-11 Top Ten Fortune 500 Online Advertisers Exhibit 10.4 10-12 Top Ten Web Properties Hosting Online Advertising Exhibit 10.5 10-13 Evaluating Advertising Effectiveness • Methods – Evaluating the achievement of advertising objectives – Assessing the effectiveness of advertising copy, illustrations, and layouts – Evaluating the effectiveness of various media • Timing of Evaluation – Pretest – During campaign – Posttest 10-14 Discussion Question • How does the highly visible nature of advertising relate to the development of brand image? If all advertising for a wellknown brand were to stop suddenly, would the image of the brand suffer? Why or why not? 10-15 Public Relations • Public Relations Methods - News (or press) releases - Feature articles - White papers - Press conferences - Lobbying - Investor relations - Employee relations - Event sponsorship - Product placement • Negative Public Relations 10-16 Degree of Customer Trust in Selected U.S. Industries Exhibit 10.6 10-17 Degree of Customer Trust in Selected Corporations and Nonprofits Exhibit 10.7 10-18 Personal Selling and Sales Management • The Sales Management Process – – – – – Developing Sales Force Objectives Determining Sales Force Size Recruiting Salespeople Training the Sales Force Controlling and Evaluating the Sales Force • The Impact of Technology on Personal Selling 10-19 Comparison of Sales Force Compensation Methods Exhibit 10.8 10-20 Sales Promotion in Consumer Markets • Types of Sales Promotion to Consumers – – – – – – – Coupons Rebates Samples Loyalty programs Point-of-purchase promotion Premiums Contests and sweepstakes 10-21 Coupons: Sales Promotion to Consumers 10-22 Sales Promotion in Business Markets • Sales Promotion Methods Unique to Business Markets – – – – – Trade allowances Free merchandise Training assistance Cooperative advertising Selling incentives 10-23