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Integrated Marketing Communications: Advertising, Sales Promotion, Public Relations, and Direct Mark

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The middle viewpoint sees advertising as a competitive weapon ... Who will manage the advertising program? Budget on advertising as opposed to other forms ... – PowerPoint PPT presentation

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Title: Integrated Marketing Communications: Advertising, Sales Promotion, Public Relations, and Direct Mark


1
Integrated Marketing Communications Advertising,
Sales Promotion, Public Relations, and Direct
Marketing
  • 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

2
Strategic Goals Of Marketing Communication
  • Create awareness
  • Build positive images
  • Identify prospects
  • Build channel relationships
  • Retain customers

3
Promotional Mix
  • Promotional mix incorporates the combination and
    types of non-personal and personal communication
    the organization employs during a specified period

4
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

5
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

6
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

7
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

8
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

9
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

10
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

11
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

12
Buyer Impact
13
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

14
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?

15
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?

16
Budgeting Approach
  • Percent of sales
  • Per-unit expenditure
  • All you can afford
  • Competitive parity
  • The research approach
  • The task approach

17
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

18
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

19
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?

20
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?

21
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)

22
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

23
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

24
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

25
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

26
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

27
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

28
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

29
Evaluation Procedures
  • Specific advertisements
  • Recognition tests
  • Recall tests
  • Opinion tests
  • Theatre tests
  • Specific advertising objectives
  • Awareness
  • Attitude
  • Motivational impact
  • Intention to buy
  • Market test

30
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

31
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

32
Push Versus Pull Marketing
33
Push Versus Pull Marketing
34
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

35
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

36
Consumer Promotion Rationale
37
PR/Publicity
  • News release or press release
  • News conference
  • Sponsorship
  • Public service announcements (PSA)

38
Direct Marketing
  • Online
  • Direct Mail
  • Catalogs
  • Direct Response
  • Personal Selling
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