Transcript Chapter 4: Developing the Right Market Mix

Entrepreneurship and Small
Business Management
Chapter 9
Integrated Marketing Communications
Ch. 9 Performance Objectives
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Define integrated marketing
communications and its components.
Conduct promotional planning and
budgeting.
Understand advertising and advertising
management.
Identify and evaluate media.
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Ch. 9 Performance Objectives
(continued)
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Discuss sales promotion.
Explore alternative marketing options.
Analyze database and direct-response
marketing opportunities.
Incorporate e-active marketing.
Describe publicity and public relations.
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What Is Integrated Marketing?
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Promotional communication strategies
combined for maximum effectiveness
Components may include:
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Advertising
Promotions
Personal selling
Sponsorships
Public relations
Types of specialized marketing such as
database, direct, alternative, and e-active
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Promotional Planning
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Determine the best ways to effectively
communicate your brand and unique
selling proposition to your customers.
Involve all parts of your organization.
Promotions opportunity analysis—
process that includes researching target
markets and the promotional strategies
to reach them
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Five Steps of Promotions
Opportunity Analysis
1. Conduct a communications market
analysis.
2. Establish communications objectives.
3. Create a communications budget.
4. Prepare promotional strategies.
5. Match tactics with strategies.
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Common Examples of
Communications Objectives
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Develop brand awareness and image.
Provide information.
Change customer beliefs or attitudes.
Encourage repeat purchases.
Build customer traffic.
Increase market share.
Reinforce purchasing decisions.
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Ways to Determine Your
Promotional Budget
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Percentage of sales—a percentage of
the prior year’s sales or anticipated sales
Competitive spending—budget similar
to competition’s level of spending
Excess funds—amount “left over” after
other expenses are calculated
Objective and task—based on what is
needed to reach promotional objectives
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Types of Advertising
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Institutional advertising—provides
information about an organization;
intended to create awareness about the
firm and enhance its image
Product advertising—designed to
create awareness, interest, purchasing
behavior, and post-purchase satisfaction
for specific products and services
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Media Planning
1. Determine your media strategy:
identify which media types will be used
2. Create a media schedule: spell out
specific media vehicles, volume of use,
and timing
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Consider critical measurement factors.
Compare media costs.
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Media Measurement Factors
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Reach—number of target audience
members exposed to the advertisement
during a given time period
Frequency—how often your target
audience will be exposed to the
advertisement during a given period
Target audience: people, businesses, or
households
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Media Measurement Factors
(continued)
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Opportunities to see (OTS)—
cumulative number of exposures in a
given time period (usually four weeks)
Gross rating points (GRP)—
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Measures the intensity of a media plan
GRP = Media vehicle’s rating (reach) x OTS
(number of insertions)
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Media Categories
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Broadcast media (television and radio)
Print media
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Newspapers
Magazines
Directories
Outdoor advertising media (billboards)
Internet
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Calculating Media Costs
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Cost Per Thousand—cost of reaching
1,000 members of the media vehicle’s
audience (not the purchaser’s)
CPM = (Cost of media buy ($) / Total audience) x 1,000
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Cost Per Rating Point—measure of
the efficiency of a media vehicle to a
company’s target market
CPRP = Cost of media buy ($) / Vehicle’s rating
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Marketing Materials
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Examples: stationery, business cards,
posters, flyers, brochures, newsletters
Should reinforce competitive advantage
Serve three main functions:
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Organize your thinking
Teach others in your company about the
business
Sell your product/service in marketplace
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Sales Promotional Tools
Consumer
 Coupons
 Contests and
sweepstakes
 Refunds and rebates
 Sampling
 Premiums
 Tie-ins
 Bonus packs
 Mall carts or kiosks
Business-to-Business
 Incentives
 Contests
 Refunds and rebates
 Sampling
 Allowances
 Trade show exhibits
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Alternative Marketing Options
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Guerilla marketing—original,
unconventional, and inexpensive
small-business strategies
Buzz marketing—another name for
word-of-mouth marketing
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Organic (occurs naturally)
Amplified (jump-started by the business)
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Alternative Marketing Options
(continued)
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Product placement/branded entertainment
Lifestyle marketing
In-store marketing
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Samples or demonstrations (edutainment)
Point-of-purchase and shelf placement
Ads in/on other media venues (theaters,
bus stops, clothing, shopping bags, etc.)
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Database Marketing
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Focus on building customer loyalty.
Design and follow a data-collection plan.
Code and analyze the collected data.
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Calculate lifetime value.
Perform a RFM analysis.
Use data mining to extract information.
Create highly-targeted, customized
communications based on the database.
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Marketing Communications
Driven by Databases
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E-mail marketing
Direct mail
Catalogs
Coupons
Infomercials/direct-response commercials
Telemarketing
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What Is E-active Marketing?
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Combination of e-commerce and
interactive marketing
E-commerce example: electronic store
Interactive marketing—uses Internet
to collect information from consumers
and communicate with them
Entrepreneurship and Small Business Management, 1/e
By Steve Mariotti and Caroline Glackin
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© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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E-active Marketing Methods
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Online advertising, such as banner ads
Brand spiraling
Blogs
Online social networks (FaceBook,
MySpace, BlackPlanet, etc.)
Consumer-generated advertising/media
Viral marketing campaigns
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By Steve Mariotti and Caroline Glackin
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Ways to Generate Publicity
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Press release
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An announcement sent to the media
States the “who, what, when, where, and
why” of the story
Pitch letter
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Correspondence designed to explain the
story behind the press release
Tells why the story would be interesting
to the media outlet’s audience
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© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Build Public Relations Through:
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Special events (contests, parties,
unusual events, etc.)
Sponsorships
Networking (exchanging information
and contacts)
Public speaking
Entrepreneurship and Small Business Management, 1/e
By Steve Mariotti and Caroline Glackin
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© 2012 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.