The Role of IMC in the Marketing Process

1
Chapter 2

• The Role of IMC in the Marketing Process

2
Marketing Positioning

• Strategies
• Production Attributes/ Characteristics/ Benefits
• Price/ Quality
• Use/ Application
• Product Class
• Product User
• Competitors
• Cultural Symbols
• II. Repositioning

3
Marketing Segmentation

• Defined Dividing a market into distinct
  groups that have common needs and that respond
  similarly to marketing strategies. Taking a large
  heterogeneous market and dividing it into smaller
  more homogeneous markets.
• Bases for Segmentation
• Demographic
• Geographic
• Psychographics
• Product use
• Benefits
• Awareness/ Intentions
• Buying condition

4
Sample Positioning Statement

• American Red Cross
• The American Red Cross is the organization that
  translates your caring and concern into immediate
  action
• Theme Help Cant Wait

5
Chapter 3

• Organizing for Advertising and Promotion The
  Role of Ad Agencies and Other Marketing
  Communication Organizations

6
Organizing for Advertising

• I. Options
• Advertising Department
• In-House Agencies
• Advertising Agencies
• Combination

7
Organizing for Advertising (Continued)

• II. Functions of a Full Service Industry
• Account Executive Public
  Relations
• Research
  Production
• Media
  Traffic
• Creative
  Administration
• Promotions
• III. Integrated Marketing Communications (IMC)

8
Methods of Agency Compensation

• Media Commission
• Straight Media Commission
• Media Commission Plus Percentage Charge for
  Extra Services
• Negotiated Commissions
• Fee Systems
• Fee Arrangements
• Fixed Fee
• Fee-Commission

9
Methods of Agency Compensation (Continued)

• B. Cost Plus Agreement
• 1. Cost plus system
• 2. Incentive Based Compensation
• III. Hourly Rated
• IV. Combination

10
Chapter 4

• Perspectives on Consumer Behavior

11
Consumer Behavior

• Psychological Perspective
• A. Psychoanalytic Theory
• 1. Freud
• 2. Motivation Research
• In-depth interview
• Projective techniques
• Association test
• Focus Groups

12
Consumer Behavior (Continued)

• B. Behavior Learning Theories
• 1. Classical Conditioning
• 2. Instrumental/ Operant Conditioning
• C. Cognitive Theory
• 1. Motivation
• 2. Perception
• 3. Attitudes
• II. Consumer Decision Process
• A. Problem Recognition
• B. Information Search

13
Consumer Behavior (Continued)

• C. Alternative Evaluation
• D. Purchase Decision
• E. Post-purchase Evaluation
• III. Environmental/ Social Influences
• Culture
• Subcultures
• Social Class
• Reference Groups
• Opinion Leaders

14
Chapter 6

• Source, Message, and Channel Factors

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Source, Message, and Channel Factors

• Source Factors
• A. Source Credibility
• 1. Expertise
• 2. Trustworthiness
• 3. Corporate leaders as spokespersons
• B. Source Attractiveness
• 1. Similarity
• 2. Decorative models
• 3. Celebrities
• C. Source Powers

16
Source, Message, and Channel Factors (Continued)

• Message Factors
• Message Structure
• Order of presentation
• Drawing a conclusion
• Message Sidedness
• B. Message Appeals
• Rational vs. Emotional
• Comparative
• Fear
• Humor
• Combinations

17
Source, Message, and Channel Factors (Continued)

• Channel Factors
• Personal vs. Non-personal
• Multi-step flow
• Qualitative media factors
• Clutter

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Chapter 7

• Establishing Objectives and Budgeting for the
  Promotional Program

19
Determining Objectives

• Sales Versus Communication Objectives
• DAGMAR (Defining Advertising Goals Measuring
  Advertising Results)
• Characteristics of Objectives
• Concrete and Measurable
• Target Audience
• Benchmark and Degree of Change
• Specified Time Period

20
The Budgeting Process

• Theoretical Approaches
• Marginal Analysis
• Sales Response Models
• Top-Down Approaches
• Affordable Method
• Arbitrary Allocation
• Return-on-Investment
• Competitive Parity
• Percentage of Sales

21
The Budgeting Process (Continued)

• Build-Up Approaches
• Objective and Task
• Quantitative Models
• Payout Planning

22
Chapter 10

• Media Planning and Strategy

23
Goal of Media Planning

• Reach the largest number of potential customers
• The most number of times
• For the least amount of money
• And the least amount of waste

24
Steps in Developing The Media Plan

• Market Analysis
• Who?
• What?
• Where?
• Establish Media Objectives
• Implement Media Strategy

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Developing Media Strategy

• Media Mix
• Target Market Coverage
• Geographic Coverage
• Scheduling
• Reach and Frequency
• Gross Rating Points
• Mood
• Flexibility
• Budget

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Chapter 11

• Evaluation of Broadcast Media

27
Radio

• Advantages
• Low Cost
• Selectivity
• Very Flexible
• The Image Media
• High reach potential
• Merchandising tie-ins

• Disadvantages
• Lack of visuals
• Fragmentation of listeners
• Message is fleeting

28
Television

• Advantages
• Audio and visual
• Mass Coverage
• Cost Effective CPMs
• Attention-getting
• Some selectivity

• Disadvantages
• Initial Cost
• Mass coverage waste
• Fleeting message
• Clutter

29
Types of Sponsorship

• Full
• Participating
• Spot Announcement

30
Audience Measurement

• Coverage
• Sets-in-use or H.U.T.
• Program rating
• Share of Audience

31
Single Source Data

• SAMSCAN (Sami/Burke/Arbitron)
• INFOSCAN (Information Resources, Inc.)
• SCANTRAK (A.C. Nielson)

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Chapter 12

• Evaluation of Print Media

33
Newspapers

• Advantages
• Extensive market coverage
• Flexible lead times
• Geographic selectivity
• Reader involvement
• Disadvantages
• Poor color reproduction
• Short life
• Lack of demographic selectivity
• Clutter
• Competition from TV and computers

34
Magazines

• Advantages
• Selectivity
• Reproduction quality
• Creative flexibility
• Performance
• Prestige
• Consumer involvement
• Services (e.g. research studies)

• Disadvantages
• Cost
• Limited reach and frequency
• Long lead time

35
Magazine Circulation

• Primary circulation
• Rate base circulation
• Pass along readers
• Total audience

36
Chapter 13

• Support Media

37
Out-of-Home Media

• Outdoor advertising
• Types
• 30 and 8 sheet poster
• Painted bulletins
• Spectaculars
• Others
• Advantages
• Wide coverage of local markets
• High potential reach
• Geographic flexibility
• Creativity (e.g. 3-D boards)

38
Out-of-Home Media (Continued)

• B. Disadvantages
• Waste
• Limited message
• Wear-out (weather and route)
• Cost for national
• Transit advertising
• A. Types
• Inside cards
• Outside cards
• Station posters

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Out-of-Home Media (Continued)

• Advantages
• Long exposure time (inside cards)
• High frequency
• Timeless
• Geographic selectivity
• Low cost
• Disadvantages
• Poor image
• Reach or target audience
• Waste
• Copy limitations

40
Out-of-Home Media (Continued)

• Other Out-of-Home
• Types
• Aerial Advertising
• Rolling boards (e.g. entire vehicle)
• Point of purchase
• - Video display
• - Shopping carts
• Restrooms, ski-lifts, trash cans
• Movie/ video tape advertising
• In-flight Advertising
• Other

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Chapter 14

• Direct Marketing

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Direct Marketing

• Reasons for growth of direct marketing
• Growth of catalogs
• Use of credit cards
• Direct marketing companies
• Changing American society
• - Money rich, time poor
• Technological advances

43
Direct Marketing Media

• Direct mail
• Broadcast media
• Print media
• Telemarketing
• The new electronic media
• Teleshopping
• Infomercials
• Videotext

44
Chapter 16

• Sales Promotion

45
Sales Promotion

• Defined A direct inducement that offers an
  extra value or incentive for the product to the
  sales force, dealers, or the ultimate consumer,
  with the primary purpose of creating an immediate
  sale.
• Reasons for growth of Sales Promotion
• Brand proliferation
• Declining brand loyalty
• Prompt short-term sales growth
• Break through clutter

46
Consumer Sales Promotion

• Coupons
• Bounce-back
• Cross-ruff
• Instant
• In-store coupon dispenser
• Samples
• Premiums
• Direct
• Self Liquidating

47
Consumer Sales Promotion (Continued)

• Bonus Packs
• Price-offs
• Contests/ Sweepstakes
• Event sponsorship

48
Re-seller (Trade) Sales Promotion

• Push money
• Promotional allowances
• Sales training programs
• Dealer incentives (e.g. free goods)
• P.O.P.
• Trade shows
• Contest/ Sweepstakes
• Store-traffic demonstrations
• Off-invoice
• Slotting allowances

49
Chapter 17

• Public Relations, Publicity, and Corporate
  Advertising

50
Public Relations

• Defined The management function that evaluates
  public attitudes, identifies the policies and
  procedures of the organization, with the publics
  interest in mind, and executes a program of
  action to earn public understanding and
  acceptance.

51
Public RelationsTarget Audiences

• Internal
• Employees
• Stockholders
• External
• Community in general
• Suppliers
• Educators
• Business community
• Government(s)
• The press

52
Public Relation Related Issues

• Publicity
• Corporate/ Institutional Advertising
• Cause-related Marketing
• Issue or Advocacy Advertising

53
Chapter 20

• International Advertising and Promotion

54
International Advertising

• Global vs. Local Approach
• Know your target (country and consumer)
• Research
• Media
• Legal
• Translations
• - Words
• - Colors

55
Chapter 21

• Regulation of Advertising and
  Promotion

56
Advertising Regulation

• Self-regulation
• Advertising and agencies
• Trade associations
• CBBB/CBBB
• NAD/NARB/NARC
• AAF
• ANA
• 4As
• CBBB
• Media Codes

57
Advertising Regulation (Continued)

• Pure Food and Drug Act (1908)
• FTC Act (1914)
• Wheeler-Lea Amendment (1938)
• Lanham Act (1947)
• Federal Communications Act (1934)
• Federal Food, Drug and Cosmetic Act (1938)
• Magnuson/ Moss Warranty Act/ Federal Trade
  Commission Improvement Act (1975)
• FTC Improvement Act (1980)

58
Advertising Regulation (Continued)

• Federal Agencies
• FTC
• FCC
• FDA
• U.S. Postal Service
• BATF
• State Regulations

59
Business-to-Business

• Relation to derived demand
• Differences between business-to-business and
  consumer communications
• Decision-maker (multiple influences)
• Rational vs. emotional communication
• Purchase decision length
• Buyer involvement
• Budget allocation
• Media

60
Social Criticisms

• Untruthful or deceptive
• Offensive or bad taste
• Advertising to children
• Materialism
• Makes you buy things you dont need
• Stereotyping
• Advertisings control over media

61
Economic Criticisms

• Limits consumer choice
• Barriers to entry
• Makes things cost more