18B

INTEGRATED MARKETING

COMMUNICATIONS - 2

TYPES OF ADVERTISEMENTSAn objective for every target market

LO1

Informative AdvertisingBuild Primary Demand

New productsMajor product changes

“Coldwater Tide”

Informative AdvertisingBuild Primary Demand

New productsMajor product changes

“Coldwater Tide”

Persuasive AdvertisingBuild Selective Demand

“Buy brand X”Stress some brand X benefits

Persuasive AdvertisingBuild Selective Demand

“Buy brand X”Stress some brand X benefits

Comparison AdvertisingCompares Brand A to B

Features & benefitsNegative advertising:

[Ford / VW]

Comparison AdvertisingCompares Brand A to B

Features & benefitsNegative advertising:

[Ford / VW]

Reminder AdvertisingKeeps Consumers Thinking

About a Product

Repurchase“Have you had your Wheaties

today?”

Reminder AdvertisingKeeps Consumers Thinking

About a Product

Repurchase“Have you had your Wheaties

today?”

DEVELOPING THE AD PROGRAMAdvertising Categories

LO2

National (global) brand advertisingNational (global) brand advertising

Retail (local) advertisingRetail (local) advertising

Directory advertisingDirectory advertising

Institutional advertisingInstitutional advertising

Business-to-business advertisingBusiness-to-business advertising

Direct response advertisingDirect response advertising

Public service advertisingPublic service advertising

Internet advertisingInternet advertising

DEVELOPING THEADVERTISING PROGRAM

SELECTING THE RIGHT MEDIALO2

1. Decide on Reach, Frequency, and Impact 1. Decide on Reach, Frequency, and Impact

Step 2. Choosing Among Major Media TypesMedia Habits of Target Consumers / Segments

Nature of the Product - Type of MessageCost

Step 2. Choosing Among Major Media TypesMedia Habits of Target Consumers / Segments

Nature of the Product - Type of MessageCost

Step 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. TV’s ER.Must Balance Media Cost Against Media Factors:

Audience Quality & Attention, Editorial Quality

Step 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. TV’s ER.Must Balance Media Cost Against Media Factors:

Audience Quality & Attention, Editorial Quality

Step 4. Deciding on Media TimingScheduling of Advertising Over the Course of a Year

Pattern of Ads: Continuity or PulsingMedia Schedule

Step 4. Deciding on Media TimingScheduling of Advertising Over the Course of a Year

Pattern of Ads: Continuity or PulsingMedia Schedule

TYPES OF MEDIA

Newspapers (>18,000, >96,000,000 homes)Advantages: Flexibility, timeliness; good local market coverage;

broad acceptance, high believability

Limitations: Short life; less than magazine print quality; smallpass-along audience; declining circulation

TelevisionAdvantages: Combines sight, sound, motion; high attention; high reach; appealing to senses; low cable costs

Limitations: High network costs; high clutter; fleeting exposure;less audience selectivity

Direct MailAdvantages: Audience segmentation; flexibility, no ad compe-

tition within same medium; allows personalization

Limitations: Relative high postage cost; “junk mail” image

TYPES OF MEDIARadioAdvantages: Mass use; high geographic and demographic

selectivity; low cost

Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences

MagazinesAdvantages: High geographic and demographic selectivity;

credibility and prestige; high-quality reproduction;long life; good pass-along readership

Limitations: Longer ad purchase lead time; waste circulation; no guarantee of position

OutdoorAdvantages: Flexibility; high repeat exposure; low cost; low message competition; very brief exposure;

limited attention of the audience

Limitations: Little audience selectivity; creative limitations

EXECUTING THEADVERTISING PROGRAM

IMPLEMENTING THE ADVERTISING PROGRAM

LO3

Account ManagementDevelops Campaign’s

Strategy for Client

Account ManagementDevelops Campaign’s

Strategy for Client

Creative ServicesDreams Up and Produces

the Ads / Materials

Creative ServicesDreams Up and Produces

the Ads / Materials

Media PlanningDetermines Effective

Communication Vehicles /Media Schedule

Media PlanningDetermines Effective

Communication Vehicles /Media Schedule

Research & Marketing Services

Collect and Analyze Information to Help Develop a Strategy

Research & Marketing Services

Collect and Analyze Information to Help Develop a Strategy

ADVERTISING CHALLENGES TODAY

Technology Empowers the Consumer: Internet

Technology Empowers the Consumer: Internet

Greater Emphasis on Point-of-Purchase [POP]Greater Emphasis on Point-of-Purchase [POP]

The Rules Are Changing: Cable, Internet, Gen Y and Millennial generations

The Rules Are Changing: Cable, Internet, Gen Y and Millennial generations

The Advertising Environment is Cluttered: Much more noise

The Advertising Environment is Cluttered: Much more noise

Some Consumers Are Turned Off by Advertising: Gen Y: social networking – friends, family, online, … ads

Some Consumers Are Turned Off by Advertising: Gen Y: social networking – friends, family, online, … ads

ADVERTISING’S 5 M MODEL

Mission

Salesgoals

Advertisingobjectives

Money

Factors toconsider:

Stage in PLC

Market shareand con-sumer base

Competitionand clutter

Advertisingfrequency

Productsubstitutability

Message

Message generation

Message evaluationand selection

Message execution

Social-responsibilityreview

Media

Reach, frequency,impactMajor media typesSpecific mediavehicles

Media timingGeographicalmedia allocation

Measure-ment

Communicationimpact

Salesimpact

DEVELOPING EFFECTIVE COMMUNICATIONS

Set communication objectivesAwarenessKnowledge

LikingPreferenceConvictionPurchase

Set communication objectivesAwarenessKnowledge

LikingPreferenceConvictionPurchase

RC COLA –Firm sold 10 times between 1929 and 1997.

RC Cola ads, what do you see first?

Target market segment profile and identify your target audience – be very specific!

Target market segment profile and identify your target audience – be very specific!

ASSESSING THEADVERTISING PROGRAMPOSTTESTING THE ADVERTISING

LO3

Posttests – How well did the ad perform?Aided Recall

Noted – Seen - ReadUnaided RecallAttitude - Inquiry - Sales tests

19-11

RC COLA –Firm sold 10 times between 1929 and 1997.

RC Cola ads, what do you see first?

SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTION

LO4

19-12

Consumer-Promotion Objectives

Increase Short-Term SalesIncrease Short-Term Sales

Build Long-Term Market ShareBuild Long-Term Market Share

Get Retailers to Carry New Items Get Retailers to Carry New Items

Sales Force Support for Current or New Products

Sales Force Support for Current or New Products

Consumer Relationship BuildingConsumer Relationship Building

B2C CONSUMER PROMOTION

Consumer-Promotion Objectives

Increase Short-Term SalesIncrease Short-Term Sales

Build Long-Term MarketShare

Build Long-Term MarketShare

Point-of-PurchaseDisplays

Point-of-PurchaseDisplays

PremiumsPremiums

Price PacksPrice Packs

Cash RefundsCash Refunds

CouponsCoupons

SamplesSamples

Consumer-Promotion Tools

GamesGames

SweepstakesSweepstakes

ContestsContests

PatronageAwards

PatronageAwards

AdvertisingSpecialties

AdvertisingSpecialties

Get Retailers to Carry New Items Get Retailers to Carry New Items

Sales Force Support for Current or New Products

Sales Force Support for Current or New Products

Consumer Relationship BuildingConsumer Relationship Building

CONSUMER PROMOTION

Create Awareness

Make the consumer aware there is a new product on the market.

Create Awareness

Make the consumer aware there is a new product on the market.

Inform the MarketProvide knowledge about the

benefits the product offers.

Inform the MarketProvide knowledge about the

benefits the product offers.

Create DesireCreate favorable feelings toward

the product and interest.

Create DesireCreate favorable feelings toward

the product and interest.

Encourage TrialEncourage trial & use of

product among target users.

Encourage TrialEncourage trial & use of

product among target users.

Build LoyaltyConvince customers to keep

purchasing product.

Build LoyaltyConvince customers to keep

purchasing product.

Slogans & Jingles

Internet / Advertising

Status Appeals

Coupons / Samples / Promotions

Product Placement / Repurchase Programs

SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTION

Loyalty Programs

LO4

19-15

Rebates

Product PlacementIntroduce / Demonstrate new products

SALES PROMOTIONB2B TRADE-ORIENTED SALES PROMOTION

LO4

Trade-Promotion Objectives

Persuade Resellers to Carry a Brand

Persuade Resellers to Carry a Brand

Obtain Brand Shelf SpaceObtain Brand Shelf Space

Promote a Brand with Advertising

Promote a Brand with Advertising

“PUSH” a Brand“PUSH” a Brand

Specialty Advertising

Items

Specialty Advertising

ItemsContestsContests

Free GoodsFree Goods

Buy-BackGuarantees

Buy-BackGuarantees

AllowancesAllowances

Price-OffsPrice-Offs

Trade-Promotion Tools

Push MoneyPush Money

DiscountsDiscounts

DisplaysDisplays

PremiumsPremiums

Cooperative [Co-op] Advertising

Cooperative [Co-op] Advertising

TRADE PROMOTIONIndustrial Customers

Trade-Promotion Objectives

Generate Business Leads *Generate Business Leads *

Stimulate PurchasesStimulate Purchases

Reward CustomersReward Customers

Motivate Manufacturer or Reseller Salespeople *

Motivate Manufacturer or Reseller Salespeople *

TRADE PROMOTIONIndustrial Customers

Trade-Promotion Objectives

Generate Business LeadsGenerate Business Leads

Stimulate PurchasesStimulate Purchases

Reward CustomersReward Customers

Trade-Promotion Tools

Specialty AdvertisingPrograms

Specialty AdvertisingPrograms

SalesContests *

SalesContests *

Initial StockBuy-Back *

Initial StockBuy-Back *

AdvertisingAllowances *

AdvertisingAllowances *

Discounts orFree Goods

Discounts orFree Goods

DisplaysDisplays

ConventionsAnd TradeShows *

ConventionsAnd TradeShows *

Motivate Manufacturer or Reseller Salespeople

Motivate Manufacturer or Reseller Salespeople

Co-op Adv. *Co-op Adv. * Train ResellersTrain Resellers

DEVELOPING A SALES PROMOTION PROGRAM

Decide on the Scope of the Program and the Size of the Incentive

Decide on the Scope of the Program and the Size of the Incentive

Set Conditions for and Rules of ParticipationSet Conditions for and Rules of Participation

Evaluate the ProgramEvaluate the Program

Determine How to Roll-out [includes training at all levels] and Distribute the Promotion Program

Determine How to Roll-out [includes training at all levels] and Distribute the Promotion Program

Determine the Length of the ProgramDetermine the Length of the Program

PUBLIC RELATIONSPUBLICITY TOOLS

LO5

Public Relations Publicity Tools

News releasePublic service announcementNews conferenceInvitational event

19-20

PUBLIC RELATIONS OBJECTIVES

Introducing New Products toManufacturers

Introducing New Products toManufacturers

Introducing New Products to Consumers

Introducing New Products to Consumers

Influencing Government Legislation

Influencing Government Legislation

Enhancing the Image of a City, Region, or Country

Enhancing the Image of a City, Region, or Country

Calling Attention to a Firm’sInvolvement with the Community

Calling Attention to a Firm’sInvolvement with the Community

PUBLIC RELATIONS TOOLS

Strong PR FirmStrong PR Firm

Press releases / stories(Firm and it products)

Press releases / stories(Firm and it products)

Public Affairs(Community relations)

Public Affairs(Community relations)

Lobbying(Specialized firms & tasks)

Lobbying(Specialized firms & tasks)

Investor Relations(almost always a corporate function)

Investor Relations(almost always a corporate function)

Development & MiscellaneousDevelopment & Miscellaneous

BUILDING AN IMC PLAN:Coordinate and maximize the effectiveness of all the tools.

ADVERTISING

COLLATERAL

DIRECTMARKETING

EVENTS

SALESAIDS

INTERNET

PACKAGING& LABELING

PUBLICRELATIONS

POINTOF

PURCHASE

CONSUMERPROMOTIONS

TRADEPROMOTIONS

TRADESHOWS

PROMOTION MIX AND THE PLC

• ANY OR ALL ELEMENTS MAY CHANGE

• BY STAGE OF THE PLC

– ADVERTISING– PUBLIC RELATIONS– SALES– SAMPLES

IMC CHALLENGES

• FLOW

• TIMING

• ACCURACY

• COORDINATION

• CONTROL

• MEASUREMENT

E-COMMERCE OBJECTIVES

• Must address integrate with your existing business[es] with a minimum amount of conflict and disruption.

• Need to define measurable goals