entrepreneurship and small business management chapter 9 integrated marketing communications
TRANSCRIPT
Entrepreneurship and Small Business Management
Chapter 9 Integrated Marketing
Communications
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.2
Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Ch. 9 Performance Objectives Define integrated marketing
communications and its components.
Conduct promotional planning and budgeting.
Understand advertising and advertising management.
Identify and evaluate media.
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Ch. 9 Performance Objectives(continued)
Discuss sales promotion. Explore alternative marketing options. Analyze database and direct-response
marketing opportunities. Incorporate e-active marketing. Describe publicity and public
relations.
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
What Is Integrated Marketing? Promotional communication
strategies combined for maximum effectiveness
Components may include: Advertising Promotions Personal selling Sponsorships Public relations Types of specialized marketing such as
database, direct, alternative, and e-active
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Promotional Planning Determine the best ways to
effectively communicate your brand and unique selling proposition to your customers.
Involve all parts of your organization.
Promotions opportunity analysis—process that includes researching target markets and the promotional strategies to reach them
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Five Steps of Promotions Opportunity Analysis
1. Conduct a communications market analysis.
2. Establish communications objectives.
3. Create a communications budget.4. Prepare promotional strategies.5. Match tactics with strategies.
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Common Examples of Communications Objectives Develop brand awareness and image. Provide information. Change customer beliefs or attitudes. Encourage repeat purchases. Build customer traffic. Increase market share. Reinforce purchasing decisions.
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Ways to Determine Your Promotional Budget Percentage of sales—a percentage of
the prior year’s sales or anticipated sales Competitive spending—budget similar
to competition’s level of spending Excess funds—amount “left over” after
other expenses are calculated Objective and task—based on what is
needed to reach promotional objectives
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Types of Advertising Institutional advertising—provides
information about an organization; intended to create awareness about the firm and enhance its image
Product advertising—designed to create awareness, interest, purchasing behavior, and post-purchase satisfaction for specific products and services
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Media Planning
1. Determine your media strategy: identify which media types will be used
2. Create a media schedule: spell out specific media vehicles, volume of use, and timing
Consider critical measurement factors. Compare media costs.
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Media Measurement Factors Reach—number of target audience
members exposed to the advertisement during a given time period
Frequency—how often your target audience will be exposed to the advertisement during a given period
Target audience: people, businesses, or households
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Media Measurement Factors(continued) Opportunities to see (OTS)—
cumulative number of exposures in a given time period (usually four weeks)
Gross rating points (GRP)— Measures the intensity of a media plan GRP = Media vehicle’s rating (reach) x
OTS (number of insertions)
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Media Categories Broadcast media (television and radio) Print media
Newspapers Magazines Directories
Outdoor advertising media (billboards) Internet
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Calculating Media Costs Cost Per Thousand—cost of reaching
1,000 members of the media vehicle’s audience (not the purchaser’s)
CPM = (Cost of media buy ($) / Total audience) x 1,000
Cost Per Rating Point—measure of the efficiency of a media vehicle to a company’s target market
CPRP = Cost of media buy ($) / Vehicle’s rating
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Marketing Materials Examples: stationery, business cards,
posters, flyers, brochures, newsletters Should reinforce competitive
advantage Serve three main functions:
Organize your thinking Teach others in your company about the
business Sell your product/service in marketplace
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Sales Promotional ToolsConsumer Coupons Contests and
sweepstakes Refunds and rebates Sampling Premiums Tie-ins Bonus packs Mall carts or kiosks
Business-to-Business Incentives Contests Refunds and rebates Sampling Allowances Trade show exhibits
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Alternative Marketing Options Guerilla marketing—original,
unconventional, and inexpensive small-business strategies
Buzz marketing—another name for word-of-mouth marketing Organic (occurs naturally) Amplified (jump-started by the
business)
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Alternative Marketing Options(continued) Product placement/branded
entertainment Lifestyle marketing In-store marketing
Samples or demonstrations (edutainment) Point-of-purchase and shelf placement
Ads in/on other media venues (theaters, bus stops, clothing, shopping bags, etc.)
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Database Marketing Focus on building customer loyalty. Design and follow a data-collection plan. Code and analyze the collected data.
Calculate lifetime value. Perform a RFM analysis. Use data mining to extract information.
Create highly-targeted, customized communications based on the database.
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Marketing Communications Driven by Databases E-mail marketing Direct mail Catalogs Coupons Infomercials/direct-response
commercials Telemarketing
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
What Is E-active Marketing? Combination of e-commerce and
interactive marketing
E-commerce example: electronic store
Interactive marketing—uses Internet to collect information from consumers and communicate with them
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
E-active Marketing Methods Online advertising, such as banner ads Brand spiraling Blogs Online social networks (FaceBook,
MySpace, BlackPlanet, etc.) Consumer-generated
advertising/media Viral marketing campaigns
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Ways to Generate Publicity Press release
An announcement sent to the media States the “who, what, when, where,
and why” of the story Pitch letter
Correspondence designed to explain the story behind the press release
Tells why the story would be interesting to the media outlet’s audience
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin
Build Public Relations Through: Special events (contests, parties,
unusual events, etc.)
Sponsorships
Networking (exchanging information and contacts)
Public speaking