Transcript Promotion Management

Chapter 1
Integrated Marketing Communications
Chapter Objectives
We will:
1. Review the various elements of the promotional
mix
2. Summarize the IMC planning process and
examine the steps in a marketing communications
program
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Chapter Objectives
3. Introduce the concept of integrated marketing
communications
4. Examine how various elements must be
coordinated to communicate effectively with the
IMC perspective
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The Marketing & Promotional Mixes
Product
Price
Place
Elements of the Promotional Mix
Advertising
Direct marketing
Internet Marketing
Sales promotion
Publicity/public relations
Personal selling
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Promotion
Elements of the Promotional Mix
• Figure 1-1
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Advertising
Any paid form of nonpersonal communication
about an organization, product, service,
or idea by an identified sponsor
• Cost effective for communicating to a large
audience.
• Creates brand images and symbolic appeal.
• Strikes a responsive chord with consumers,
popular campaigns get attention.
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Advertising to Markets
Consumer Markets
• National Advertising
– Goal to inform and remind consumer
• Retail/Local Advertising
– Goal to increase store traffic
Creating Demand
• Advertising to increase demand
– Primary demand for the product category - Jeans
– Selective demand for a specific brand - Levi's
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Advertising to Markets
Business & Professional Advertising
– Business-to-business advertising
– Professional advertising
– Trade advertising
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Sales Promotion
Marketing activities that provide extra
value or incentives to the sales force,
distributors, or ultimate consumers and
can stimulate immediate sales.
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Types of Sales Promotion
• Customer-oriented
– Targeted to the ultimate users of a product or
service
• Coupons, sampling, premiums, rebates, contests,
sweepstakes, POP materials
• Trade-oriented
– Targeted toward marketing intermediaries such as
retailers, wholesalers, or distributors
• Promotion allowances, merchandise allowances, price
deals, sales contests, trade shows
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Public Relations
The management function which evaluates public
attitudes, identifies the policies and procedures
of an individual or organization with the public
interest, and executes a program of action to
earn public understanding and acceptance.
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Public Relations
Tools used by public relations.
• Publicity.
• Special publications.
• Community activity participation.
• Fund-raising.
• Special event sponsorship.
• Public affairs activities.
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Publicity
Non-personal communications regarding an
organization, product, service, or idea not directly
paid for or run under identified sponsorship.
– Publicity is NOT advertising.
– Advertising.
• Paid, sponsor-identified, non personal (media)
communications.
– Publicity.
• Non-paid, unsponsored, non personal (media)
communications.
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Publicity Vehicles
• News releases:
– Single-page news stories sent to media who might print or
broadcast the content.
• Feature articles:
– Larger manuscripts composed and edited for a particular
medium.
• Captioned photos:
– Photographs with content identified and explained below the
picture.
• Press conferences:
– Meetings and presentations to invited reporters and editors.
• Special events:
– Sponsorship of events, teams, or programs of public value.
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Direct Marketing
Organizations communicate directly with target
customers to generate a response and/or
transaction.
• Direct marketing methods.
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Direct mail.
Cataloging.
Telemarketing.
Direct response ads.
Internet sales.
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Interactive/internet Marketing
Interactive media allow for a back and forth flow
of information whereby users can participate in
and modify the form and content of the information
they receive in real time.
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Interactive/internet Marketing
Multiple internet roles
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As a persuasive advertising medium
As a means to educate or inform customers
As a sales tool or an actual sales vehicle
To obtain customer database information
To communicate and interact with buyers
To provide customer service and support
To build and maintain customer relationships
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Personal Selling
A form of person-to-person communication in
which a seller attempts to assist and/or persuade
prospective buyers to purchase to company’s
product or service or act on an idea.
– With this type of interaction the flexibility exists to
tailor the message to the customers specific need
or situation.
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Integrated Marketing Communications
Coordinating the various promotional elements and
other marketing activities that communicate with
the firm’s customers.
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Integrated Marketing Communications
An IMC plan evaluates the strategic roles of
a variety of communications disciplines:
• General advertising
• Direct marketing
• Sales promotion
• Publicity/Public relations
• Internet advertising
• Personal Selling
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Integrated Marketing Communications
An IMC Plan combines the disciplines to
provide the “Big Picture”:
• Clarity
• Consistency
• Maximum communications impact
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Reasons for Growth of IMC
• Planning efficiency and effectiveness.
– By coordinating marketing communication
efforts companies avoid duplication, take
advantage of synergy, and develop more
efficient and effective programs.
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Reasons for Growth of IMC
• Consumer adoption of technology and
media.
– Consumers lifestyles and purchasing
behavior are changing as they adopt new
technologies.
– Traditional media are facing declining
audiences and less responsive consumers.
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Reasons for Growth of IMC
• Innovative marketing practices.
– A shift in marketplace power from
manufacturers to retailers.
– A shifting of marketing dollars from media
advertising to other forms of promotion.
– A movement away from relying on
advertising- focused approaches to solve
communication problems.
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Reasons for Growth of IMC
• Innovative Marketing Practices.
– The rapid growth and development of
database marketing.
– Demands for greater accountability from ad
agencies and changes in compensation.
– Rapid growth of the internet.
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Importance of IMC
• Customer’s point of view.
– All elements of the promotional campaign
have to be carefully linked in some manner
so that the message is clear and does not
misrepresent the brand.
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Importance of IMC
• Relationship marketing.
– Creating, maintaining, and enhancing longterm relationship with individual customers
as well as other stakeholders for mutual
benefit.
– Marketers must recognize which tools within
the promotional mix are enhancing the
relationship.
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Planning for IMC:
Promotional Management
Coordinating the promotional mix elements to
develop a controlled, integrated program of
effective marketing communications.
– Considerations for developing the promotional
mix include:
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Type of product.
Buyer’s decision process.
Stage of product life cycle.
Channels of distribution.
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The Marketing Plan
1. A detailed situation analysis
2. Specific marketing objectives
3. A marketing strategy and program
4. A program for implementing the strategy
5. A process for monitoring and evaluating
performance
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Situation Analysis
Internal analysis.
Assesses relevant areas involving the
product/service offering and the firm itself.
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Situation Analysis
Internal factors.
– Assessment of the firm’s promotional
organization and capabilities.
– Review of the firm’s previous promotional
programs.
– Assessment of firm or brand image and
implications for promotion.
– Assessment of relative strengths and
weaknesses of product/service.
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Situation Analysis
• External analysis.
– Focuses on factors such as characteristics of a
firms customers, market segments, environment
and competitors.
• External factors.
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Who, what, how, when, why, where.
Customer analysis.
Competitive analysis.
Environmental analysis.
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Discussion Questions
Consider all the elements/IMC tools of the
promotional mix that are used to market a
( car, cel phone, computer, running shoes,
watch, shampoo) that a college student
might be expected to buy. Explain why
each tool would be effective or would not
be effective to create awareness.
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