Chapter 11 Advertising, Integrated Marketing Communications, and the Changing Media Landscape

1
Chapter 11Advertising, Integrated Marketing
Communications, and the Changing Media Landscape

2
Integrated Marketing Communications (IMC) and New
Media

• Learning Objectives
• Understand what integrated marketing
  communications are.
• Understand why organizations may change their
  promotional strategies to reach different
  audiences.

3
IMC
Communications designed to deliver one
consistent message to buyers!
4
The Promotion (Communication) Mix

• Learning Objectives
• Outline the different components of the promotion
  mix.
• Understand the different types of media and
  vehicles.

5
Promotional Mix Elements
6
Advertising

• A paid, non-personal message to a mass audience.
• Media used
• Printnewspapers, magazines
• TV and radio
• Internet
• Social mediaFacebook, Twitter, blogs
• Mobile marketing

7
The Advertising Conundrum

• It is generally recognized that as much as 50
  99.5 of all advertising dollars is wasted.
• The problem?
• Knowing which 50 to cut!

8
Ads to think about

• Lotto Ads
• Ameriquest 1
• Other Ad themes

9
Creating Advertising

• Creative strategya statement or concept of what
  a particular message or campaign will say
• The big idea
• What is the big idea and why is it so important?

10
Advertising Appeal

• Rational approach
• Depend on logic and speak to the consumers
  intellect based on the consumers need for
  information
• Emotional approach
• Tugs at the heartstrings or uses humor

11
Types of Appeal

• Rational appeals can be divided into two groups
• Argument
• Lecture 
• Emotional appeals can be divided into two groups
  
• Dramatic
• Psychological (self-interest)

12
Advertising Appeal

• Selling proposition
• The promise or claim that captures the reason for
  buying the product or the benefit that ownership
  confers
• Creative execution
• The way an appeal or proposition is presented

13
Emotional vs. Rational Advertising

• Rational- http//www.youtube.com/watch?vXZoBfpm1z
  Hg
• Emotional- http//www.youtube.com/watch?vTq4nrmnq
  Y9o

14
Art Directors and Art Direction

• Art directors
• Advertising professional who has the general
  responsibility for the overall look of an ad
• Will choose graphics, pictures, type styles, and
  other visual elements that appear in an ad
• Art direction
• The visional presentation of an advertisement

15
Copy and Copywriters

• Copy is written or spoken communication elements
• Copywriters are language specialists who develop
  headlines, subheads, and body copy

16
Advertising Decisions

• Which media gives the biggest bang for the buck?
• The impact of advertising in most cases is
  difficult to measure except for coupons and
  rebates.
• Different targeted markets require specific
  choices of vehicles to reach those markets.

17
Public Relations
18
Publicity Pro and Con

• Publicity is a way of getting a message out in a
  manner that consumers feel is more believable
  since it comes through a third party.
• The risk a company runs with publicity is that
  they lose control of the message, unlike
  advertising where control of the message is
  complete.

19
Personal Selling

• The most flexible and adaptive way to communicate
  is through personal selling.
• The cost of personal sales limits its use to
  large transactions as in B2B markets.
• Consumer personal selling may be found in such
  areas as Tupperware and Amway where the cost is
  borne by the seller.

20
Sales Promotions

• Several promotional types are used to increase
  sales and gain market share.
• Coupons and rebates are most frequently used as
  customers respond to actions where they can
  reduce their costs.
• Grocery retailers would like to eliminate the
  burden of dealing with coupons, but tests have
  shown that customers want the immediate cost
  savings, and producers like the increase in sales
  that coupons offer.

21
Direct Marketing

• Delivering personalized promotional materials
  directly to consumers.
• Delivery may come via mail, Internet, e-mail,
  telephone, or direct response advertising.
• Allows targeting specific consumers through
  demographics and zip codes.
• Because this approach is intrusive, prospects
  ignore attempts to reach them.

22
Telemarketing

• Direct marketing by phone.
• An effective technique for charitable
  organizations.
• Consumers generally have a negative perception
  for telemarketing.
• The Do Not Call Registry prevents calling to
  phone numbers registered with the FTC.
• Most companies avoid this technique because of
  costs, perceptions, and the DNC registry.

23
Key Takeaways

• The promotional mix consists of advertising,
  personal selling, public relations, sales
  promotions, and direct marketing.
• Decisions are necessary regarding which media to
  use and then selecting the right vehicle.

24
The Promotion Budget

• Learning Objectives
• Understand the different ways in which
  promotional budgets are set.
• Understand how the budget can be allocated among
  different media.

25
Setting the Promotion Budget

• Simplest methoduse last years of sales.
• Affordable methodallocate funds based on what
  can be made available.
• Competitive parity methodbudget funds
  comparative to competitors expenditures.
• Objective and task methodestablish a budget that
  is consistent with achieving the objectives and
  tasks cited in the marketing plan.

26
Allocating the Budget to Selected Media

• The promotion budget needs to be spread among the
  various media for effective communication of
  product programs.
• Typical choices are
• Printnewspapers and magazines
• TV and radio
• Internet
• Outdoorbillboards, etc.
• Mobile devices