Transcript Foundations of Marketing

of
MARKETING
Chapter
19
Integrated
Marketing
Communications
Applications
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Integrated Marketing Communications
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Chapter
19
Objectives
1. Identify the categories of advertisements.
2. Identify and discuss the main advertising media.
3. Describe the process of creating an advertisement.
4. Explain public relations and its functions.
5. Discuss sales promotion and its various elements.
6. Classify the three basic types of selling.
7. Outline the seven steps in the sales process.
8. Specify the functions of sales management.
19-1
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Table 19.1
19
The Top Ten Advertising Sectors in
Canada, 2001
RANK
SECTOR
EXPENDITURES($)
1
2
Retail
Automotive: Cars; Mini Vans;
Trucks; Vans; Dealer
Food
Entertainment
Financial Services and Insurance Services
Local Automotive Dealer Advertising
Travel and Transportation
Restaurants and Catering Services
Telecommunications
Media
997 261 000
3
4
5
6
7
8
9
10
19-2
Chapter
918 069 000
367 684 000
350 814 000
319 020 000
318 679 000
241 485 000
233 162 000
212 010 000
202 364 000
Source:Copyright © Nielsen Media Research Limited, 2002. Reprinted by permission.
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Figure 19.1
Chapter
19
The Process of Creating an
Advertisement
Research Inputs
• Consumer research
• Product research
• Market analysis
• Competitive situation
Strategic Decisions
Tactical Decisions
• Setting objectives
• Defining target markets
• Determining budgets
• Deciding message
strategy
• Establishing controls
• Writing and producing
ads
• Selecting and
scheduling media
19-3
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Categories of Advertisements
•
•
•
•
•
Informative Product
Persuasive Product
Reminder-oriented Product
Retail
Institutional
19-4
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Product Advertising
• Nonpersonal selling of a particular
good or service.
19-5
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Informative Product Advertising
• Advertising that seeks to develop
demand through presenting factual
information on the attributes of a
product or service.
19-6
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Persuasive Product Advertising
• Advertising that emphasizes using
words or images to try to create an
image for a product and to influence
attitudes about it.
19-7
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Reminder-Oriented Product
Advertising
• Advertising whose goal is to reinforce
previous promotional activity by
keeping the product or service name in
front of the public.
19-8
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Cooperative Advertising
• The sharing of advertising costs
between the retailer and the
manufacturer.
19-9
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Institutional Advertising
• Promoting a concept, idea, or
philosophy, or the goodwill of an
industry, company, or organization.
19-10
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Figure 19.2
Chapter
19
Relationship between Advertising
and the Product Life Cycle
Growth
Maturity
Decline
Sales
Introduction
Informative
Advertising
19-11
Persuasive
Advertising
Reminder-Oriented
Advertising
Time
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Comparative Advertising
• Advertising that makes direct
promotional comparisons with
competitive brands.
19-12
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Celebrity Marketing
• Having celebrities lend their name and
influence to the promotion of a product.
19-13
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Role Model Marketing
• Marketing technique that associates a
product with the positive perception of
a type of individual or role.
19-14
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Buzz Marketing
• Giving a significant person in a social
system a product to use in the hope
that others will see and want to buy the
product.
19-15
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Media Selection
•
•
•
•
Television
Newspapers
Radio
Magazines
• Direct Mail
• Internet Advertising
• Outdoor Advertising
19-16
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Table 19.3
Chapter
19
Advantages and Disadvantages of Various
Advertising Media (1 of 3)
MEDIUM
ADVANTAGES
DISADVANTAGES
Television
Advertising
•Demonstration ability
•Intrusion value
•Ability to generate excitement
•One-on-one reach
•Ability to use humour
•Effective with salesforce and trade
•Ability to achieve impact
•Rapidly escalating cost
•Erosion of viewing audiences
•Audience fractionalization
•Zipping and zapping
•Clutter
Newspaper
Advertising
•Audience in appropriate mental frame
to process messages
•Mass audience coverage
•Flexibility
•Ability to use detailed copy
•Timelines
•Clutter
•Not a highly selective medium
•Higher rates for occasional advertisers
•Mediocre reproduction quality
•Complicated buying for national
advertiser
•Changing composition of readers
19-17a
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Table 19.3
Chapter
19
Advantages and Disadvantages of Various
Advertising Media (2 of 3)
MEDIUM
ADVANTAGES
DISADVANTAGES
Radio
Advertising
•Ability to reach segmented audiences
•Advertising Intimacy
•Economy
•Short lead times
•Transfer of imagery from TV
•Use of local personalities
•Clutter
•No visuals
•Audience fractionalization
•Buying difficulties
Magazine
Advertising
•Some magazines reach large
audiences
•Selectivity
•Long life
•High reproduction quality
•Ability to present detailed information
•Authoritative conveying of information
•High involvement potential
•Not intrusive
•Long lead times
•Clutter
•Somewhat limited geographic options
•Variability of circulation patterns by
market
19-17b
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Table 19.3
MEDIUM
19
Advantages and Disadvantages of Various
Advertising Media (3 of 3)
ADVANTAGES
DISADVANTAGES
Direct Mail •Selectivity; Intense coverage
•Speed
•Flexibility of format
•Complete information; personalization
•High cost per person
•Dependence on quality of mailing list
•Consumer resistance
Internet
•Ability to reach segmented audiences
Advertising •Ability to change message quickly
•High user interest in medium
•Use of colour and limited motion graphics
•Ability to bridge to extensive message
and to advertiser’s Web site
•Broad reach and high frequency levels
Outdoor
Advertising •Geographic flexibility
•Low cost per thousand
•Prominent brand identification
•Opportune purchase reminder
19-17c
Chapter
•Limited initial message length
•Clutter
•Uncertain effectiveness of new medium
•Consumer resistance
•Concern about security of information
•Nonselectivity
•Short exposure time
•Difficult to measure audience size
•Environmental problems
Source: Adapted from Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications 4th ed., by Terrance A.
Shimp. Copyright © 1997, pp. 324-325. Reprinted with permission of South-Western, a division of Thomson Learning: www.thomsonrights.com.
Fax 800-730-2215.
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Figure 19.3
Net Advertising Revenues by Medium
Internet 1%
Other 0.5%
Television 26%
Dailies 18%
Direct Mail 12.5%
Radio 11%
Yellow Pa ges 11%
Community Newspapers 9%
Ma gazines 5%
Trade Publications 3%
Outdoor 3%
19-18
Source: Canadian Media Directors’ Council, Media Digest 1998-99, p. 11. Publication can be accessed on-line at http://www.marketingmag.ca
Data compiled from Statistics Canada, CRTC, CAN, CCNA,/Les Hebdos du Quebec, Magazines Canada, CARD CAN, TeleDirect, Canada Post,
IAB and Industry estimates.
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Advertising Agency
• A marketing specialist firm that assists
the advertiser in planning and
preparing its advertisements.
19-19
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Assessing the Effectiveness of an
Advertisement
• Pretesting
The assessment of an advertisement’s
effectiveness before it is actually used.
• Post-testing
The assessment of advertising copy after it
has been used.
19-20
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Direct Response Marketing
• An interactive system of marketing that
uses one or more advertising media to
effect a measurable response directly
to the advertiser.
19-21
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Table 19.5
19
Comparison of Direct Response
Marketing and General Advertising
DIRECT RESPONSE MARKETING
GENERAL ADVERTISING
•
•Mass selling. Buyers are identified as
broad groups sharing common
demographic and psychographic
characteristics.
•
•
19-22
Chapter
Selling to individuals. Customers are
often identifiable by name, address,
and purchase behaviour.
Products may have added value or
service.
Distribution is an important product
benefit.
•
The medium is the marketplace.
•
Marketer controls product until delivery.
•
Advertising is used to motivate an
immediate order or inquiry.
•
Repetition is used in ad.
•
Consumers feel a high perceived risk -product is bought unseen. Recourse is
distant.
•Product benefits do not always include
convenient distribution channels.
•The retail outlet is the marketplace.
•Marketer may lose control as product
enters distribution channel.
•Advertising is used for cumulative effect
over time to build image, awareness,
loyalty, or benefit recall. Purchase action
is deferred.
•Repetition is used over time.
•Consumers feel less risk -- have direct
contact with the product and direct
recourse.
Source: Reprinted from Bob Stone, Successful Direct Marketing Methods, 5th ed. (Lincolnwood, IL: NTC Publishing Group, 1994).
Used with permission of NTC/Contemporary Publishing Group, Inc. Copyright The McGraw-Hill Companies, Inc.
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Point-of-Purchase Advertising
• Displays and demonstrations that seek
to promote the product at a time and
place closely associated with the actual
decision to buy.
19-23
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Specialty Advertising
• Sales promotion medium that uses
useful articles to carry the advertiser’s
name, address, and advertising
message.
19-24
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Loyalty Program
• A program that gives rewards, such as
points or free air miles, with each
purchase in order to stimulate repeat
business.
19-25
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Trade Show
• An organized exhibition of products
based on a central theme.
19-26
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Public Relations
• The component of marketing
communications that focuses on
fostering goodwill between a company
and its various publics.
19-27
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Publicity
• Normally unpaid communication that
disseminates positive information
about company activities and products.
19-28
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Table 19.6
Chapter
19
Factors Affecting the Importance of Personal Selling in
the Promotional Mix
PERSONAL SELLING IS LIKELY TO
BE MORE IMPORTANT WHEN
ADVERTISING IS LIKELY TO BE
MORE IMPORTANT WHEN
Consumer is
Geographically concentrated,
relatively small in number
Geographically dispersed,
relatively large in number
Product is
Expensive, technically complex,
custom-made, requires special
handling, frequently involves trade-ins
Inexpensive, simple to understand,
standardized, requires no special
handling, requires no trade-ins
Price is
Relatively high
Relatively low
Channels are Relatively short
Relatively short
19-29
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Categories of Personal Selling
• Order Processing
• Creative Selling
• Missionary Selling
19-30
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Order Processing
• Selling at the wholesale and retail
levels; involves identifying customer
needs, pointing out these needs to the
customer, and completing the order.
19-31
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Creative Selling
• Selling that involves making the buyer
see the worth of the item.
19-32
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Missionary Selling
• Selling that emphasizes the firm’s
goodwill and providing customers with
technical or operational assistance.
19-33
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The Sales Process
1.
2.
3.
4.
5.
6.
7.
Prospecting and Qualifying
Approach
Presentation
Demonstration
Handling Objections
Closing
Follow-up
19-34
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Prospecting and Qualifying
• Prospecting
– Identifying potential customers.
• Qualifying
– Determining that the prospect is really a
potential customer.
19-35
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Approach
• The initial contact between the
salesperson and the prospective
customer.
19-36
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Presentation
• The act of giving the sales message to
a prospective customer.
19-37
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Demonstration
• Actions which supplement, support,
and reinforce what the salesperson has
told the prospect.
19-38
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Objection
• Reveals a customer’s interest in a
product and can be used as a cue to
provide additional information.
19-39
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Closing and Follow-Up
• Closing
– The act of asking the prospect for an
order.
• Follow-Up
– The post-sales activities that often
determine whether a person will become
a repeat customer.
19-40
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Sales Management
• Securing, maintaining, motivating,
supervising, evaluating, and controlling
the field sales force.
19-41
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Sales Management - Seven Basic
Managerial Functions
1.
2.
3.
4.
5.
6.
7.
Recruitment and Selection
Training
Organization
Supervision
Motivation
Compensation
Evaluation and Control
19-42
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