Transcript Promotional Mix

Integrated Marketing
Communications
Jeremy Kees, Ph.D.
Advertising
Some thoughts…
“I know I’m wasting half of my ad
spend….I just don’t know which half.”
We’re in a advertising/promotions
world…full of clutter…and it’s a
vicious cycle”
Overview of Advertising…
• Paid and non-personal communication
through various media by business firms,
not-for-profit organizations, and
individuals who are identified in the
advertising message and who hope to
inform or persuade members of a particular
audience
Step 1: Setting Objectives
• Inform
• Persuade
• Remind
• Reinforce
What is the goal?
• Heinz?
• Honda? Cog
• Based on the PLC…
Message Generation and Execution
• Comparative Advertising
– Pepsi
Message Generation and Execution
• Celebrity Testimonials
• Risks??
Message Generation and Execution
• Interactive Advertising
– Wrigley's
Message Generation and Execution
• Message Appeals…
• Fear
– Example 1
– Example 2
• Sex
– Example 1
– Example
• Humor
– Example
– Example 1
– Example 2
• Emotion Evoking (sadness and humor)
– Example
Media Selection
• Just as important as the ad itself
• Radio
• Newspapers
Media Selection
• Magazines
• Direct Mail
• Outdoor
– Human Billboards
• http://www.tatad.com/
Creative Development and Execution
• Interactive Media
• Television
Legal and Social Issues
• Common sense (e.g., don’t be false
or misleading)
• Not-so-common sense (e.g.,
reaching your target market—and
ONLY your target market)
– Cigarettes/Alcohol
– Norelco and other risqué ads
Legal and Social Issues
• The value in being proactive in
spending ad/promo $$ on
tangential social issues
– Corporate Social Responsibility
(CSR)
• An example…
– Dove
Sales Promotions
• A collection of incentive tools,
mostly short term, designed to
stimulate quicker or greater
purchase of particular products or
services by consumers or the trade
– Customer Oriented
– Trade Oriented
Why Sales Promotions?
• Increased Promotional Sensitivity
– Declining Brand Loyalty
– Response to Competition (viscous
cycle)
• Brand Proliferation
• Fragmentation of Markets
• Pressures for Short-Term
Performance
– Increased Accountability
– Advertising Inefficiency
Consumer-Oriented Promotions
• Coupons
Consumer-Oriented Promotions
• Refunds
– Similar to Rebates
• Samples
• Bonus Packs
• Premiums
Consumer-Oriented Promotions
• Contests
• Sweepstakes
Consumer-Oriented Promotions
• Specialty Advertising
– Peanut Chews Opening Night T-Shirt
Consumer-Oriented Promotions
• Event Marketing
– Becoming part of a personally relevant
moment in consumers’ lives
– Sponsorships are perhaps the most
prevalent/popular form of event marketing
– Example: Bryant Park and the Simpsons
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Free ice skating (skate rentals)
Ned Flanders' hot chocolate
Simpsons Sprinkalicious donuts
"Duff & D'oh!Nuts" ice cream
Empire State Building of shining “Simpsons”
yellow
Trade-Oriented Promotions
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Trade Allowances
Point-of-Purchase Displays
Trade Shows
Dealer Incentives
And finally…
• Marketers’ response to the DVR /
TiVo revaluation…
• Product placement
– Some examples
• Apprentice / Survivor
• The Office (1)
– We now see it in…
• Movies
• TV programming
• Video games
Group Exercise
• Is product placement a useful tool
for marketers?
– If so, under what circumstances
• Are there any ethical
considerations?
– For instance, some countries not
permit product placements in
domestic made films.
Marketing Public Relations (MPR)
• The firm’s communications
and relationships with its
various publics
• Includes a variety of
programs to promote or
protect a company’s image
or individual products
Corporate Ads – Boeing
VSB
MPR Functions
• Building Marketplace Excitement
– PS3
• Creating Advertising News
– Super Bowl Ads
• Substitute for Advertising
• Providing Value-Added Customer
Service
– Butterball
Advantages of MPR
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Credibility
Cost
Avoidance of Clutter
Image Building
Publicity
…. nonpersonal stimulation of
demand for a good, service, place,
idea, person, or organization by
unpaid placement of significant
news regarding the product in a
print or broadcast medium
Sprint Fires Customers
Really, a subset of the MPR effort.
Advantages of Publicity
• Credibility (even more than public
relations)
• News Value
Disadvantages??
Personal Selling
…. interpersonal influence process
involving a seller’s promotional
presentation conducted on a person-toperson basis with the buyer
– Oldest and most traditional form of
“marketing”
– Traditionally a negative stereotype
(unfortunately)
– Today, we see an emphasis on “relationship
selling”
• Emphasis on LTV of customers
• Constant building/fostering of relationships
Today’s Salesperson…
• A highly-trained professional
• Takes a customer-oriented
approach in order to satisfy the
long-term needs of both the
customer and the selling firm
• Problem solvers
– Account managers
– Know customers inside and out so
that the company can adapt to
customer needs
Huge $$ Potential (if you’re good)
The Sales Process
Sales Force Decisions
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Objectives
Strategy
Structure
Size
Compensation