Lecture OneMKT 385
Introduction to Promotion
Integrated Marketing Communications
a concept of marketing communications planning that
recognizes the added value of a comprehensive plan that evaluates the
strategic roles of a variety of communication disciplines - for
example, general advertising, direct response, sales promotion, and public
relations- and combines these disciplines to provide clarity, consistency, and maximum
communications impact.
Slide 1-1
Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998
Elements of the Promotions/Communications Mix
Advertising Sales Promotion Publicity/PR Management Personal Selling Direct Marketing AND Social Media Marketing
Advertising “salesmanship in
print” Albert Lasker
Generally Paid ( except PSAs)
Identifiable Sponsor Mass Media Inform or Persuade Structured communication
AdvertisingAdvantages
Cost Effective Emotional Appeals Brand Equity Changing
technology with Interactive media (Internet) and nontraditional media (blimps, shopping carts)
Disadvantages
Cost of Production Clutter Zipping/Zapping
The Communication Process Source Encoding Message Channel Decoding Receiver Feedback Noise
How Does The Communication Process Relate to Advertising ?
Source Encoding Message Channel Decoding Receiver Feedback Noise
Sponsor Appeal Design Message
Autobiographical, narrative, drama
Medium Reception process Consumer
Implied (ideal), sponsorial (management), actual
Purchase/Call Distractions
Functions and Effects of Advertising To identify products and
differentiate To communicate information about
the product, features and location To stimulate trial To stimulate distribution To build value, brand preference,
loyalty Lower Costs
Economic Role of Advertising Market
Power School less price
sensitivity distraction encourages
loyalty differentiates
Market Competition School increases
sensitivity stimulates
competition lower prices
for everyone!
Economic Impacts of Advertising
Value - perception of added value
Prices - are they raised or lowered?
Competition Consumer Demand Consumer Choice Business Cycle
Advertising The Major Players
The AdvertiserThe AgencyThe Media
Classifications of Advertising
Advertising to Consumer Markets Retail advertising, product
advertisements, branding PSAs
Advertising to Business Markets Business to Business Professional – teachers, lawyers,
doctors Trade – aimed at resellers Agricultural – farmers and
agribusiness
Slide 1-3
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998
What is Marketing? The process of planning and
executing the conception, pricing, distribution and promotion of ideas, goods and services to create exchanges that satisfy the perceived needs, wants and objectives of individuals and organizations
4 P’s Influence on Advertising Product
Consumer packaged goods advertising Service advertising Hi-tech advertising
Price Image advertising (brand) Sale advertising Price advertising
4 P’s Influence on Advertising Place (Distribution)
Global advertising – unified message International advertising – specific
messages by market Promotion – see following slides!
Sales Promotion
Incentive or extra value to encourage the consumer to act in a certain fashion.
Examples: coupons, sweepstakes, trade shows, rebates, free samples
Sales PromotionAdvantages/Disadvantages
Short-term sales boost
stimulates trial
incentives for intermediaries to cooperate
Sacrifice long-term performance for short term gain
Clutter Sacrifice
brand equity
Public Relations
the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.
Publicity
nonpersonal communication regarding the organization, product, service or idea that is not directly paid for nor run under identified sponsorship, usually coming from a news story, editorial, or announcement about an organization or its products and services.
Additional tools include: collateral materials such as press kits, instruction booklets, brochures, catalogs, fliers
Publicity/PR toolsAdvantages/Disadvantages
Credibility Low Cost
Lack of Control Negative
Publicity very harmful and difficult to overcome
Miss the Target Audience
Personal Selling involves the direct contact
between the buyer and seller in which the seller attempts to persuade and assist the prospective customers to purchase the company’s products or service or to act on an idea.
Personal SellingAdvantages/Disadvantages
Flexibility Immediate
Feedback
High cost per High cost per contactcontact
uniformity of uniformity of message message deliverydelivery
Direct Marketing Any direct
communication delivered the consumer to designed to generate a response or a transaction in the form of an order, request for information or visit
Direct mail catalogs, specialty
promos Telemarketing Direct selling Direct response
advertising
Direct Marketing Negatives
Viewed often as sales oriented, not relationship oriented
Intrusive Women working Do Not Call Lists Expensive per contact
Positives Measurable results Many forms work around customer
schedules
Social Media Marketing Recognizing and utilizing social media
outlets to promote interest, communication and dialogue relating to a product, individual, service or event
Social Media can be utilized by developing pages, boosting posts, advertising, etc. to form relationships in the marketplace
Evolution of Advertising Early Ads
Gutenberg’s invention of the printing press changed the world we live in …
Now we could become literate, communicate information and sell products!
1472 – first ad appeared in the form of a handbill tacked on church doors selling prayer books
By the early 1700’s clutter takes hold! 1704 – Boston Newsletter begins to carry
ads and Ben Franklin makes them artsy!
Industrial Age and Ad Agencies Second half of the 19th century through
the 20th
Commodities markets saturated and branding began in the form of consumer packaged goods
Advertising primarily fell to wholesalers who disseminated information on goods
Volney Palmer set up business as a media buyer
N.W. Ayer & Sons was the first agency to charge commission based on space
Evolution of Advertising
Golden Age of Advertising (1946-1970)
Following the advent of radio, television again inspired creativity and advertising flourishes Market segmentation, positioning, USP
Post Industrial Age Demarketing to slow demand for
products consuming and manufactured from natural resources
Global Interactive Age Evolution of cable and satellite TV
(segmentation), TiVo (ad skipping), digital technology (how to compete?) Use of web sites, social networking,
downloadable entertainment with sponsorships