Marketing Management, 8/e

1
(No Transcript)
2
Integrated Marketing Communications Advertising,
Sales Promotion, Public Relations, and Direct
Marketing
Chapter Eight

• Key Words / Outline
• Advertising, Sales promotion, Public relations,
  Direct marketing, Personal selling, Marketing
  communications, Creating awareness Aiding
  comprehension, Developing conviction, Percent of
  sale, Over unit expenditure, Competitive parity,
  The task approach, Pull strategy, Push strategy,
  Trade promotion, Frequency marketing program

3
Strategic Goals Of Marketing Communication

• Create awareness
• Build positive images
• Identify prospects
• Build channel relationships
• Retain customers

4
Promotional Mix

• Promotional mix incorporates the combination and
  types of non-personal and personal communication
  the organization employs during a specified period

Non-personal communication
Advertising
Sales promotion
Public relations
Direct marketing
Personal communication
Personal selling
5
Promotional Mix

• Advertising
• Strengths
• Efficient for reaching many buyers simultaneously
• Effective way to create image of the brand
• Flexible
• Variety of media to choose from
• Weaknesses
• Reaches many people who are not potential buyers
• Ads are subject to criticism
• Exposure time is short
• People tend to screen out advertisements
• Total cost is high

6
Promotional Mix

• Personal selling
• Strengths
• Salespeople can be persuasive and influential
• Two-way communication allows for questions and
  other feedback
• Message can be targeted to specific individuals
  weaknesses
• Weaknesses
• Cost per contact is high
• Salespeople may be hard to recruit and motivate
• Presentation skills may vary between salespeople

7
Promotional Mix

• Sales promotion
• Strengths
• Supports short-term price reductions designed to
  stimulate debate
• Variety of sales promotion tools available
• Effective in changing short-term behavior
• Easy link to other communications
• Weaknesses
• Risk inducing brand-loyal customers to stock up
  while not inducing others
• Impact may be limited to short-term
• Price-related sales promotion may hurt brand
  image
• Easy for competitors to copy

8
Promotional Mix

• Public relations
• Strengths
• Total cost may be low
• Media-generated stories seen as more credible
  than marketer-sponsored messages
• Weaknesses
• Media may not cooperate
• Heavy competition for media attention
• Marketer has little control over the message

9
Promotional Mix

• Direct marketing
• Strengths
• Message can be customized and prepared quickly
• Can facilitate a relationship with customer
• Weaknesses
• Managing and maintaining accurate database can be
  costly
• Often low customer response

10
Buyer Impact

• Potential buyers go through a process
• Awareness of the product
• Comprehension of what it can do and important
  features
• Conviction that it has value for them
• Ordering on the part of a sufficient number of
  potential buyers

11
Using Integrated Marketing Communication

• Traditional approach Focus on
• Making Transactions
• Customers
• Independent brand messages
• Mass media monologue with customers
• Product claims
• Adjusting prior years plan
• Functional department planning and monitoring
• Communication specialists
• Mass marketing and customer acquisition
• Stable of agencies

12
Using Integrated Marketing Communication

• Integrated approach Focus on
• Building/nourishing relationships
• All stakeholders in the organizations
• Strategic consistency on brand messages
• Interactivity dialogue with customers
• Corporate mission marketing
• Zero-based campaign planning
• Cross-functional planning and monitoring
• Creating core competencies
• Building and managing databases to retain
  customers
• One communication management agency

13
Buyer Impact
14
Advertising Approaches

• The generalist viewpoint is primarily concerned
  with sales, profits, and return on investment
• The middle viewpoint sees advertising as a
  competitive weapon
• The specialist viewpoint is concerned with the
  effects of specific ads or campaigns

15
Developing Advertising Objectives

• Does advertising aim at immediate sales?
• Does advertising aim at near-term sales?
• Does advertising aim at building long-range
  customer franchise?
• Does advertising aim at helping increase sales?
• Does advertising aim at some specific step that
  leads to sale?

16
Developing Advertising Objectives

• How important are supplementary benefits of
  advertising?
• Should advertising impart information needed to
  consummate sales and build customer satisfaction?
• Should advertising build confidence and goodwill
  for the corporation?
• What kind of images does the company wish to
  build?

17
Budgeting Approach

• Percent of sales
• Per-unit expenditure
• All you can afford
• Competitive parity
• The research approach
• The task approach

18
The Eight-M Formula

• Who will manage the advertising program?
• Budget on advertising as opposed to other forms
  of communication
• To whom should the advertising be directed?
• What should the ads says about the product?
• Types of combination of media to be used
• Longevity of the ads before changing ads or
  themes
• Timing factor for the ad to appear during the
  course of campaign
• Measuring the effectiveness of the campaign and
  how the campaign be evaluated and controlled

19
Budget Allocation

• A successful campaign has two related tasks
• Message strategy Say the right things in ads
  itself
• Media mix Use the appropriate media in right
  amounts at the right time to reach the target
  market

20
Budget Allocation Message Strategy

• Who the firms customers and potential customers
  are their demographic and psychological
  characteristics?
• How many such customers there are?
• How much of the firms type and brand of the
  product are they currently buying and can
  reasonably be expected in the future?
• Which individuals, other than customers and
  potential customers, influence purchasing
  decisions?

21
Budget Allocation Message Strategy

• Where customers buy the firms brand product?
• When customers buy and frequency of purchase?
• Which competitive brands they buy and frequency
  of purchase?
• How do they use the product?
• Why they buy particular types and brands of
  products?

22
Budget Allocation Media Mix

• Measures of media effectiveness include
• Reach number of targeted audience members
  exposed at least once to the advertisers message
• Frequency number of times they are exposed
• Cost per thousand based on a number of visits
  (to a website, for example)

23
Media Review

• Newspapers
• Advantages
• Flexible and timely
• Intense coverage of local markets
• Broad acceptance and use
• High believability of printed word
• Disadvantages
• Short life
• Read hastily
• Small pass-along audience

24
Media Review

• Radio
• Advantages
• Mass use
• Audience selectivity via station format
• Low cost
• Geographic flexibility
• Disadvantages
• Audio presentation only
• Less attention than TV
• Chaotic buying
• Short life

25
Media Review

• Outdoor
• Advantages
• Flexible
• Relative absence of competing advertisements
• Repeat exposure
• Relatively inexpensive
• Disadvantages
• Creative limitations
• Many distractions for viewer
• Public attack (ecological)
• No selectivity of audience

26
Media Review

• Television
• Advantages
• Combination of sight, sound and motion
• Appeals to senses
• Mass audience coverage
• Psychology of attention
• Disadvantages
• Insecurity of audience retention
• Fleeting impressions
• Short life
• Expensive

27
Media Review

• Magazines
• Advantages
• High geographic and demographic selectivity
• Psychology of attention
• Quality of reproduction
• Pass-along readership
• Disadvantages
• Long closing periods
• Some waste circulation
• No guarantee of position

28
Media Review

• Direct mail
• Advantages
• Audience selectivity
• Flexible
• No competition from competing advertisements
• Personalized
• Disadvantages
• Relatively high cost
• Consumers often pay little or no attention to
  direct mail

29
Media Review

• Internet
• Advantages
• Interactive
• Low cost per exposure
• Ads can be placed in interest sections
• Timely
• High information content possible
• New favorable medium
• Disadvantages
• Low attention getting
• Short message life
• Readers selects exposure
• May be perceived as intruding
• Subject to download speeds

30
Evaluation Procedures

• Specific advertisements
• Recognition tests
• Recall tests
• Opinion tests
• Theatre tests
• Specific advertising objectives
• Awareness
• Attitude
• Motivational impact
• Intention to buy
• Market test

31
Sales Promotion

• Effective sales promotion moves consumers to
• Obtain a trial product
• Consider new or improved product
• Repeat or increase current usage
• Come into a retail stores
• Expand the total number of users of an
  established product lines

32
Sales Promotion

• An effective sales promotion motivates
  salespeople by
• Motivating sales force
• Educating the sales force about product
  improvements
• Stabilizing a fluctuating sales pattern
• An effective sales promotion motivates resellers
  to
• Increase inventories
• Obtain displays and other support products
• Improve product distribution
• Obtain more and better shelf life

33
Push Versus Pull Marketing
34
Push Versus Pull Marketing
35
Trade Promotion Rationale

• To convince retailers to carry the
  manufacturers products
• To reduce the manufacturers and increase the
  distributors or retailers inventories
• To support advertising and consumer sales
  promotion
• To encourage retailers to give the product more
  favorable shelf space
• To serve as a reward for past sales efforts

36
Consumer Promotion Rationale

• To induce the customer to try the product
• To reward customers for brand loyalty
• To encourage the customer to trade up or try
  larger sizes of the product
• To stimulate repeat purchases
• To react to competitor efforts
• To reinforce other selling efforts

37
Consumer Promotion Rationale
38
PR/Publicity

• News release or press release
• News conference
• Sponsorship
• Public service announcements (PSA)

39
Direct Marketing

• Online
• Direct Mail
• Catalogs
• Direct Response
• Personal Selling