Integrated Marketing Communications Advertising, Promotion, Public Relations and Selling

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Integrated Marketing CommunicationsAdvertising,
Promotion, Public Relations and Selling

• Marketing 5341
• Chip Besio

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The communication process
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BMW X3 Who is the source and what is the message?
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The promotional mix
Slide 18-15
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Fence Industry Who is the target audience?
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Factors that influence the use of promotional
tools
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Purina Dog Chow What stage in its product life
cycle andhow does its promotional mix change?
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Promotional tools used over the product life
cycle of Purina Dog Chow
Slide 18-28
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6 Ms of Advertising

• Market - target consumer
• Mission - objectives.
• Money - to pay for the campaign.
• Message - to be delivered.
• Media - choice of advertising media.
• Measure - measuring the impact.

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Mission - Advertising / Promotional objectives

• To increase sales
• To attract new customers
• To retain existing ones
• To encourage customer loyalty
• To encourage trial
• To create awareness
• To inform
• To remind
• To reassure
• To encourage customer contact

• To modify attitudes
• To create an image
• To position a product
• To encourage brand switching
• To improve position in the market
• To enlarge the market
• To pull the product through the channels
• To push the product through the channels

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Personal selling vs advertising
Relative importance of the two main elements in
the promotional mix
of Promotional Effort
Personal Selling
Advertising
Complex / Expensive Goods
Simple / Inexpensive Goods
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Mission - Advertising and Promotion
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Money - Determining the budget

• The advertising budget will be set in terms of
  one of
• What can be afforded
• A given of sales
• Comparison with rivals
• Objective and task- whatever is needed to achieve
  objectives

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Media - Factors in the choice of media

• Marketing mix
• Relative Cost
• Target audience
• Impact of the media
• Reach and selectivity of the media
• Competition
• Legal constraints

• Permanence of the media
• The nature of the product
• Size and spread of the market
• Advertising budget
• The message to be conveyed

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Advertising/Promotion Segmentation/Positioning
What is the purpose of this ad and who is the
target?
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Advertising ROI

• What competitive benefit will be promised?

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Advertising ROI

• Benefits must be Promised and Supported
• Relevance
• our beer is brewed in Belgium ..
• Must tell the beer drinker
• why that matters
• Originality
• Impact

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What personalitywill distinguish thebrand?
Consistency of traits Predictability different
from and better than .
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Television

• Advantages
• Large audience
• Low cost per exposure
• High impact- colour, sound and movement
• Can target specific groups

• Disadvantages
• Very high overall cost
• Limited prime time space
• Short-lived
• May not be watched- visual wallpaper
• Proliferation of channels reduces audience
• Conveys only a limited message

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Magazines

• Advantages
• Useful for targeting specific groups
• Good reproduction- high quality gloss images
• Long life-read at leisure
• Can be linked to features
• All consumer interests catered for

• Disadvantages
• Can be expensive
• Long lead time
• Some magazines are only published monthly
• Moderate impact
• Slow impact due to long life
• Magazines with limited readership are not
  suitable for mass marketing

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Advertising on the Internet

• Paid-for search inclusion (e.g. Google Adwords)
• Company website.
• Banner ads - on line adverts on relevant website.
• Link exchange- mutual exchange of links between
  web sites or similar or complementary interest.
• Search engine/directory listing.
• Ezine/email sponsorship- on line magazines
  delivered to subscribers via email.

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Advertising and Promotion
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Advertising and Promotion
Internet advertising is rapidly replacing some
traditional ad forms
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Radio

• Advantages
• Relatively inexpensive
• Can target specific segment
• Relatively mobile
• Local

• Disadvantages
• Limited impact
• No vision
• Short life
• Listeners attention limited
• Audio wallpaper
• Mainly local rather than national

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Newspapers

• Advantages
• Widely read
• Can target specific segments
• Frequent publication
• Short lead time
• Inexpensive compared to television
• Local, regional and national papers available
• Colour printing adds to impact

• Disadvantages
• Short life
• Low impact
• May get lost in the rest of the paper
• Not every group reads a paper
• High costs especially for national newspaper

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Cinema

• Advantages
• High impact
• Captive audience
• Can be specifically targeted
• Local audience
• Visual, sound, movement

• Disadvantages
• Limited audience
• Mainly young audience
• Short lived message
• May only be seen once

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Outdoor (Billboards)

• Advantages
• Repeatedly seen
• 24/7 coverage
• Target particular area
• May encourage impulse buying if close to shops
• Local media

• Disadvantages
• Message must be short and simple
• Cannot target socio economic groups
• Rarely attract full attention
• Short lived
• May be seen as traffic hazard
• Difficult to measure effectiveness

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Advertising and Promotion
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Advertising and Promotion
Frequency is better than reach
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The Evolution of Advertising in the United States
- Madison and Vine

• Branded
• Entertainment
• The blending of advertising and integrated brand
  promotion with entertainment programming
• Brand placement key tactic here
• Some films and television programs are considered
  hour long promotions

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Personal Selling
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Selling and the promotional mix

• Personal selling is one element of the
  promotional mix.
• In business to consumer markets (B2C) personal
  selling and advertising are the main elements of
  the mix.
• Personal selling becomes more important when
• The product is more complex
• The product is more expensive
• The product is bought infrequently
• The customers is another business i.e. B2B
  markets

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The role of the sales representative

• To gather information about customer wants
• To communicate information especially on the
  advantages of the product to the customer
• To prospect-look for new opportunities.
  Prospecting is concerned with locating potential
  customers
• To display and demonstrate the product
• To advise customers
• To advise on stock levels
• To progress orders
• To build goodwill
• To deal with complaints
• To close the sale - i.e. to secure a sale
• To provide after -sales service
• To collect orders from customers
• In some cases, to make deliveries

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The essence of personal selling

• The presentation of products and associated
  persuasive communication to potential clients
• Involves two way, persuasive communication
• The aim is to match customer needs with the
  goods/services on offer
• Ultimate objective to make a sale

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B2C transactions where personal selling is.

• Very important
• Motor vehicles
• Fitted kitchens
• Double glazing
• Security systems
• Conservatories
• Shopping and speciality goods

• Unimportant
• Food
• Grocery
• Clothing
• CDs/DVDs
• Books
• i.e. Convenience goods

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A comparison of push and pull promotional
strategies
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Consumer promotions

• Promotions aimed at the consumers
• Examples
• Price reduction
• Coupons
• Vouchers
• Competition
• Free gifts

• Premium offers
• Trade-in offers
• Stamps
• Events
• Displays
• BOGOF

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Advertising and Promotion - Consumer
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Trade promotions

• Promotions aimed at intermediaries
• The purpose is to encourage intermediaries to
  stock the product
• Examples
• Loyalty bonuses
• Sale or return
• Range bonuses

• Credit
• Delayed invoicing
• New product offers
• Competitions
• Trade in offers
• Free services
• Training
• Reciprocal buying

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Advertising and Promotion - Trade
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The scope of PR

• Promoting products and services through media
  publicity.
• Enhancing public awareness of the company.
• Projecting the companys mission and philosophy.
• Portrayal of the company as a good corporate
  citizen.
• Protecting the companys reputation.
• Projecting the organization as a source of
  opportunities.
• Obtaining favourable comment in the media.

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The promotion decision process