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ChapterSixteen

Promoting Products Using Promoting Products Using Interactive and Integrated Interactive and Integrated Marketing CommunicationsMarketing Communications

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Change &Change & Promotion MixPromotion Mix

Definition- PromotionDefinition- Promotion Promotion MixPromotion Mix Integrated Marketing Integrated Marketing

Communication (IMC)Communication (IMC) ChangeChange

TechnologyTechnology Build RelationshipsBuild Relationships InteractivityInteractivity

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Promotion DefinitionsPromotion Definitions Promotion is an attempt by Promotion is an attempt by

marketers to inform people about marketers to inform people about products and to persuade them to products and to persuade them to participate in an exchangeparticipate in an exchange

Integrated marketing Integrated marketing communications combines all the communications combines all the promotional tools into one promotional tools into one comprehensive promotional strategycomprehensive promotional strategy All the promotional tools and company All the promotional tools and company

resources are used to create a positive resources are used to create a positive brand image.brand image.

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Change and PromotionChange and Promotion Constant change is affecting Constant change is affecting

promotional strategiespromotional strategies Technology has dramatically changed the Technology has dramatically changed the

role and activities of salespeople.role and activities of salespeople. Advertisers must be more creative in trying to Advertisers must be more creative in trying to

reach large audiences - the number of television reach large audiences - the number of television channels available to consumers have increasedchannels available to consumers have increased

Build relationshipsBuild relationships Interactive promotion changes the Interactive promotion changes the

promotion process from a monologue of promotion process from a monologue of persuasive sellers, to a dialogue of buyer persuasive sellers, to a dialogue of buyer and seller working together to create and seller working together to create beneficial exchange relationships.beneficial exchange relationships.

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AdvertisingAdvertising Advertising is paid, nonpersonal Advertising is paid, nonpersonal

communication through various media communication through various media by organizations and individuals who by organizations and individuals who are in some way identified in the are in some way identified in the advertising message.advertising message. Total ad volume exceeds $215 billion Total ad volume exceeds $215 billion

yearly yearly TV is largest with 23%TV is largest with 23% Newspaper second with 21%Newspaper second with 21% Direct Mail – 19%Direct Mail – 19% Internet now less than 2%Internet now less than 2%

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Advertising BenefitsAdvertising Benefits It is informativeIt is informative Provides public with free TV and Provides public with free TV and

Radio programsRadio programs Newspapers, radio and Yellow pages Newspapers, radio and Yellow pages

provides a wealth of information paid provides a wealth of information paid by local advertisingby local advertising

Infomercials is a growing trend that Infomercials is a growing trend that provides product information in provides product information in detail, they provide testimonials detail, they provide testimonials from users.from users.

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Factors That Affect Factors That Affect

The Promotion MixThe Promotion Mix Type of ProductType of Product Stage in the Stage in the

Product Life CycleProduct Life Cycle Target Market Target Market

CharacteristicsCharacteristics Actions of Actions of

CompetitorsCompetitors Available FundsAvailable Funds

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Components of Components of Integrated MarketingIntegrated Marketing

AdvertisingAdvertising Corporate Corporate

CommunicationCommunication Crisis Crisis

CommunicationCommunication E-CommerceE-Commerce Event Event

MarketingMarketing Internal Internal

CommunicationCommunication

Issues Issues ManagementManagement

MarketingMarketing MultimediaMultimedia Public RelationsPublic Relations Sales PromotionSales Promotion Strategic Strategic

PlanningPlanning Web DesignWeb Design

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Internet Advertising and Internet Advertising and PromotionPromotion

Is a relatively new phenomenonIs a relatively new phenomenon Most people find pop-up Internet adds Most people find pop-up Internet adds

annoying, but companies continue to use tem annoying, but companies continue to use tem hoping to tap into the huge online marketing hoping to tap into the huge online marketing potential.potential.

CRM software makes it possible to track CRM software makes it possible to track customers’ purchases and answers their customers’ purchases and answers their questions online.questions online.

High speed connections will improve the High speed connections will improve the experience and capabilities of Internet experience and capabilities of Internet AdvertisingAdvertising

New computing technologies will allow users to New computing technologies will allow users to Cybershop while visiting the mall (Palm Cybershop while visiting the mall (Palm Computers/Wireless).Computers/Wireless).

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Global AdvertisingGlobal Advertising Refers to developing a product and Refers to developing a product and

promotional strategy that can be promotional strategy that can be used worldwideused worldwide

Country specific promotion is more Country specific promotion is more successful since each country’s successful since each country’s culture is differentculture is different

Getting the word right is criticalGetting the word right is critical Even in the US selective groups are Even in the US selective groups are

large enough to warrant specially large enough to warrant specially designed promotions for them designed promotions for them

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Objectives of Objectives of Integrated Integrated MarketingMarketing

Build Brand EquityBuild Brand Equity Provide InformationProvide Information Manage Demand & Manage Demand &

Build SalesBuild Sales Differentiate ProductsDifferentiate Products Influence Perceptions, Influence Perceptions,

Attitudes, & Buyer Attitudes, & Buyer BehaviorBehavior

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Total Direct Total Direct Advertising Advertising

ExpendituresExpenditures

$104.3

$142.1 $153.0$164.1

$213.3

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

1992 1996 1997 1998 2002*

In billionsIn billions

*Projected*ProjectedSource: Source: The Direct Marketing Association

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Figure 16.3 Advertising Expenditure by Figure 16.3 Advertising Expenditure by MediaMedia

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Century’sCentury’s Top Ad JinglesTop Ad Jingles

““You deserve a You deserve a break today”break today”

““Be all you can Be all you can be”be”

““Pepsi-Cola hits Pepsi-Cola hits the spot”the spot”

““Mm Mm good!”Mm Mm good!” ““See the USA in See the USA in

your Chevrolet”your Chevrolet”

““I wish I were an I wish I were an Oscar Mayer wiener”Oscar Mayer wiener”

““Double your Double your pleasure, double pleasure, double your fun”your fun”

““Winston tastes Winston tastes good like a cigarette good like a cigarette should”should”

““It’s the real thing”It’s the real thing” ““A little dab’ll do yaA little dab’ll do ya””

Source: Source: Advertising Age

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Favorite Budweiser Favorite Budweiser Advertising SlogansAdvertising Slogans

18991899

King ofKing of

Bottled BeersBottled Beers

America’sAmerica’s

Social Social

CompanionCompanion

19371937 19431943

Food’s Food’s Favorite Favorite

CompanioCompanionn

19471947

It lives with It lives with good taste good taste everywhereeverywhere

19531953

When you When you know your know your beer… it’s beer… it’s

bound to be bound to be BudBud

19711971

When you When you say say

Budweiser, Budweiser, you’ve said it you’ve said it

allall

19931993

Proud to Proud to be your be your

BudBud

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Do Blatantly Sexy Do Blatantly Sexy Ads Turn You Off?Ads Turn You Off?

4

5145

4

72

24

01020304050607080

Strongly/SomewhatAgree

Strongly/SomewhatDisagree

Don't Know

Per

cen

t

Men Women

Source: Source: USA Today

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Amount Spent On...Amount Spent On...

Internet Advertising Internet Advertising = =

$1.92 Billion$1.92 Billion

Outdoor Advertising Outdoor Advertising ==

$1.58 Billion$1.58 Billion

Source: Source: CIO Web Business, 1/1/1999

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Internet Internet Advertising- Advertising-

20042004 Will reach $22 billion in the U.S. Will reach $22 billion in the U.S. The rest of world will spend The rest of world will spend

$10.8 billion.$10.8 billion. $27 billion (10% of all U.S. ad $27 billion (10% of all U.S. ad

spending) will be siphoned from spending) will be siphoned from traditional mediatraditional media

Hardest hit: newspapers and Hardest hit: newspapers and direct maildirect mail

Source: Source: CIO Web Business, 10/1/1999

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Steps in Personal Steps in Personal SellingSelling

Prospect/QualifyProspect/QualifyProspect/QualifyProspect/Qualify

PreapproachPreapproachPreapproachPreapproach

ApproachApproachApproachApproach

PresentatioPresentationn

PresentatioPresentationn

ObjectionsObjectionsObjectionsObjections

CloseCloseCloseClose

Follow-upFollow-upFollow-upFollow-up

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Public Public RelationsRelations

StepsSteps ListenListen

Change/Change/DevelopDevelop

InformInform

PublicityPublicity FreeFree More Effective More Effective

Than AdThan Ad BelievableBelievable No ControlNo Control No RepetitionNo Repetition

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Sales PromotionSales Promotion Internal & ExternalInternal & External SamplingSampling Word-Of-MouthWord-Of-Mouth Viral Viral

Marketing/SwagMarketing/Swag TechnologyTechnology TestimonialsTestimonials

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Tips onTips on Issuing CouponsIssuing Coupons

Coupons can be Coupons can be used as a “Thank used as a “Thank you for buying” or a you for buying” or a “Stop and try us.”“Stop and try us.”

The value must be The value must be enough to attract enough to attract customers.customers.

Use coupon Use coupon promotions promotions sparingly.sparingly.

Get professional Get professional help to get help to get maximum maximum exposure.exposure.

Color-code your Color-code your coupons for coupons for different groups different groups that use them.that use them.

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Top Celebrity Top Celebrity EndorsersEndorsers

CelebrityCelebrityCandice BergenCandice BergenBill CosbyBill CosbyKathi Lee Kathi Lee

GiffordGiffordCindy CrawfordCindy CrawfordJerry SeinfieldJerry SeinfieldCybil ShepherdCybil Shepherd

ProductProduct(s)(s)SprintSprintJell-OJell-OCarnival Cruise Carnival Cruise

LinesLinesRevlon, PepsiRevlon, PepsiAmerican ExpressAmerican ExpressL’OrealL’Oreal

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Top Sports Top Sports EndorsersEndorsers

AthleteAthleteMicheal Micheal

JordanJordan

Tiger WoodsTiger Woods

Arnold PalmerArnold Palmer

Andre AgassiAndre Agassi

EndorsementsEndorsements$ 47.0 Million$ 47.0 Million

$ 24.0 Million$ 24.0 Million

$ 16.0 Million$ 16.0 Million

$ 14.0 Million$ 14.0 Million

Source:Source: Fortune Magazine

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Promotional Promotional StrategiesStrategies

Push StrategyPush Strategy

Pull StrategyPull Strategy

PromotioPromotionn

DistributionDistribution

Retail Retail StoreStore

CustomerCustomer

PromotioPromotionn

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Building IMCBuilding IMC

IMCIMC

Gather Data & Gather Data & Maintain Maintain DatabaseDatabaseRespond Quickly To Respond Quickly To Adjust Policies & Adjust Policies & ProceduresProcedures

Provide Provide Accessible Accessible InformationInformation