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CHAPTER OBJECTIVES
To review the various elements of the promotional mix: advertising, sales promotion, public relations, direct marketing, Internet marketing, and personal selling. To introduce the concept of integrated marketing communications (IMC) by considering its evolution, growth, importance, and a broader view. To examine how various marketing and promotional elements must be coordinated to communicate effectively with the IMC perspective. To summarize a model of the IMC planning process and examine the CHATHAN,CIDHOO,YOGA steps in developing a marketing communications program.
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WHAT IS IMC?
Co-ordinating the various promotional elements to effectively communicate with target audiences
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added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines to provide clarity, consistency and maximum
communications impact.
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Defining IMC
IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences. The goal of IMC is to generate short-term financial returns and build long-term brand value.
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Interactive/internet marketing
Sales promotion Publicity/Public relations
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Television, radio, magazines, newspapers, billboards Now drive consumers to Web sites
Online strategies
Provide detailed information Be experiential, entertaining, interactive MySpace, YouTube, Facebook, wireless mobile media devices, e-mail
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From
a myriad of sources
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Founded in 1998
Keys to success
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Automated purchase of radio ads Magazine and newspaper ad-buying YouTube Google TV Ads Partnership with Nielsen Media Research New varieties of online ads
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WHAT IS MARKETING?
An organizational function Processes for creating, communicating, and delivering value to customers Managing customer relationships in ways that benefit the organization and its stakeholders
Value
Relationship marketing
Mass customization
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PROMOTION
Coordination of
all seller-initiated efforts to set up channels of information and persuasion to sell goods and services or to promote an idea.
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ADVERTISING
Non-personal communication
Highly
discussed.
Used
or brand.
Ability
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CLASSIFICATIONS OF ADVERTISING
National Advertising National Advertising Retail/Local Advertising Retail/Local Advertising Primaryvs. vs. Selective Primary Selective Demand Advertising Demand Advertising
Consumers
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Trade Advertising
Organizations
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$0
$50
$100
$150
$200
$250
$300
$350
$400
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DIRECT MARKETING
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Internet Sales
Direct Marketing
Shopping Shopping Channels Channels Catalogs Cataloging
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Telemarketing Telemarketing
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Internet Marketing
Interactive media allow two-way communication. Users can participate in and modify the form and content of information they receive.
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A Tool or A Sales Sales Tool an Sales or Actual an Actual Vehicle Sales Vehicle
Communicates Communicates and Interacts With and Interacts Buyers With Buyers
Provides Provides Customer Customer Service and Service and Support Support
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SALES PROMOTION
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Training Programs
Trade Shows Coop Advertising
Loyalty Programs
Events
Consumer-oriented
For end-users
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Trade-oriented
For resellers
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Combat Competition
Sales Promotion
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Publicity/Public Relations
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PUBLIC RELATIONS
Evaluating public attitudes, identifying policies and procedures of individuals or organizations, and executing a program of action to gain public understanding and acceptance.
Systematically planning and distributing information in an attempt to control and manage image and the nature of the publicity received
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PUBLICITY
Idea reaches public in a form not directly paid for by the company. More credible to consumers than other forms of promotion.
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POSITIONING STRATEGIES
How should we position?
By andand Benefits? By Attributes Attributes Benefits?
By Cultural Symbols?
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Customer Characteristics
Socioeconomic Geographic
Behavior
Outlets
Buying Situation
Usage Benefits 35
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The Position
Do Have thethe Do We We Have Tenacity To Stay Tenacity To Stay With WithIt? It? Do Have thethe Do We We Have Money To Do the Money To Do the Job? Job? From Must FromWhom Whom We Win This Must We Win Position? This Position?
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Positioning Decisions
Is the Current Is the Current Position Position Strategy Strategy Working? Working? Is the Segmentation Is the Segmentation Strategy Strategy Appropriate? Appropriate?
The Checklist
Are Sufficient AreThere There Sufficient Resources To To Resources Communicate the the Communicate Position? Position?
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PUBLICITY VEHICLES
Feature Feature Articles Articles
Publicity Vehicles
Interviews Interviews
Press Conferences
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Frequency
Cost Flexibility
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Uncontrollable
Low/Unspecified
High/Specific
High Specifiable
Low Tentative
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Timing
Community Activities
Corporate Advertising
Cause-related Marketing
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Publicity/Public Relations
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Personal Selling
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PERSONAL SELLING
Person-to-person communication. Seller encourages prospective buyers to purchase companys product/service or to act on an idea.
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Figure 1-3
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IMC coordinates various promotional elements and marketing activities which communicate with a firms customers to provide clarity, consistency, and maximum communications impact.
Evolved as companies realized the need for strategic integration of promotional tools.
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Point of Purchase
Publicity
Special Events
Media Advertising
Packaging
Direct Response
Interactive Marketing
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Point of Purchase
Publicity
Media Advertising
Public Relations
Interactive Marketing
Direct Marketing
Special Events
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IMPORTANCE OF IMC
Relationship Marketing
IMC helps link elements of promotional campaign to clearly and accurately represent the brand.
Allows marketers to create, maintain, or enhance long-term relationships with customers or stakeholders.
More cost-effective to retain customers than acquire new ones.
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IMC can be expanded to consider all sources of brand or company contact by customer.
A total marketing communications strategy recognizes how ALL marketing activities communicate with customers.
Everything the company says and does needs to communicate a common theme.
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1. Coca-Cola 2. Microsoft 3. IBM 4. GE 5. Intel 6. Nokia 7. Disney 8. McDonalds 9. Marlboro 10. Mercedes
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$70.5 $65.1 $51.8 $42.3 $31.1 $29.4 $28.0 $24.7 $22.2 $21.4
Product planning involves portraying the product as a bundle of benefits for consumers.
Product Symbolism
What a product or brand means to consumers. What consumers experience by purchasing or using the product.
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PRODUCT SYMBOLISM
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BRAND EQUITY
Added
value resulting from products image, customer attachment to product, and impressions of product differentiation.
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Economic cost to consumers for all product benefits combined. Advertising and promotion reinforce consumers belief that products benefits or qualities accurately indicates the price decisions.
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What messages are conveyed by selling a product at Holt Renfrew instead of Wal-Mart?
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PROMOTIONAL MANAGEMENT
Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.
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4. for implementing the strategy 4.A Aprogram program for implementing the strategy
Market Segmentation
Distribution Decisions
Resellers
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Advertising
Advertising Objectives Message Strategy