16-1 Chapter Sixteen Promoting Products Using Interactive and Integrated Marketing Communications

16-2 Change & Promotion Mix Definition- Promotion Definition- Promotion Promotion Mix Promotion Mix Integrated Marketing Communication (IMC) Integrated Marketing Communication (IMC) Change Change Technology Technology Build Relationships Build Relationships Interactivity Interactivity

16-3 Promotion Definitions Promotion is an attempt by marketers to inform people about products and to persuade them to participate in an exchange Promotion is an attempt by marketers to inform people about products and to persuade them to participate in an exchange Integrated marketing communications combines all the promotional tools into one comprehensive promotional strategy Integrated marketing communications combines all the promotional tools into one comprehensive promotional strategy All the promotional tools and company resources are used to create a positive brand image. All the promotional tools and company resources are used to create a positive brand image.

16-4 Change and Promotion Constant change is affecting promotional strategies Constant change is affecting promotional strategies Technology has dramatically changed the role and activities of salespeople. Technology has dramatically changed the role and activities of salespeople. Advertisers must be more creative in trying to reach large audiences - the number of television channels available to consumers have increased Advertisers must be more creative in trying to reach large audiences - the number of television channels available to consumers have increased Build relationships Build relationships Interactive promotion changes the promotion process from a monologue of persuasive sellers, to a dialogue of buyer and seller working together to create beneficial exchange relationships. Interactive promotion changes the promotion process from a monologue of persuasive sellers, to a dialogue of buyer and seller working together to create beneficial exchange relationships.

16-5 Advertising Advertising is paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message. Advertising is paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message. Total ad volume exceeds $215 billion yearly Total ad volume exceeds $215 billion 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%

16-6 Advertising Benefits It is informative It is informative Provides public with free TV and Radio programs Provides public with free TV and Radio programs Newspapers, radio and Yellow pages provides a wealth of information paid by local advertising Newspapers, radio and Yellow pages provides a wealth of information paid by local advertising Infomercials is a growing trend that provides product information in detail, they provide testimonials from users. Infomercials is a growing trend that provides product information in detail, they provide testimonials from users.

16-7 Factors That Affect The Promotion Mix Type of Product Type of Product Stage in the Product Life Cycle Stage in the Product Life Cycle Target Market Characteristics Target Market Characteristics Actions of Competitors Actions of Competitors Available Funds Available Funds

16-8 Components of Integrated Marketing Advertising Advertising Corporate Communication Corporate Communication Crisis Communication Crisis Communication E-Commerce E-Commerce Event Marketing Event Marketing Internal Communication Internal Communication Issues Management Issues Management Marketing Marketing Multimedia Multimedia Public Relations Public Relations Sales Promotion Sales Promotion Strategic Planning Strategic Planning Web Design Web Design

16-9 Internet Advertising and Promotion Is a relatively new phenomenon Is a relatively new phenomenon Most people find pop-up Internet adds annoying, but companies continue to use tem hoping to tap into the huge online marketing potential. Most people find pop-up Internet adds annoying, but companies continue to use tem hoping to tap into the huge online marketing potential. CRM software makes it possible to track customers purchases and answers their questions online. CRM software makes it possible to track customers purchases and answers their questions online. High speed connections will improve the experience and capabilities of Internet Advertising High speed connections will improve the experience and capabilities of Internet Advertising New computing technologies will allow users to Cybershop while visiting the mall (Palm Computers/Wireless). New computing technologies will allow users to Cybershop while visiting the mall (Palm Computers/Wireless).

16-10 Global Advertising Refers to developing a product and promotional strategy that can be used worldwide Refers to developing a product and promotional strategy that can be used worldwide Country specific promotion is more successful since each countrys culture is different Country specific promotion is more successful since each countrys culture is different Getting the word right is critical Getting the word right is critical Even in the US selective groups are large enough to warrant specially designed promotions for them Even in the US selective groups are large enough to warrant specially designed promotions for them

16-11 Objectives of Integrated Marketing Build Brand Equity Build Brand Equity Provide Information Provide Information Manage Demand & Build Sales Manage Demand & Build Sales Differentiate Products Differentiate Products Influence Perceptions, Attitudes, & Buyer Behavior Influence Perceptions, Attitudes, & Buyer Behavior

16-12 Total Direct Advertising Expenditures In billions *Projected Source: Source: The Direct Marketing Association

16-13 Figure 16.3 Advertising Expenditure by Media

16-14 Centurys Top Ad Jingles You deserve a break today You deserve a break today Be all you can be Be all you can be Pepsi-Cola hits the spot Pepsi-Cola hits the spot Mm Mm good! Mm Mm good! See the USA in your Chevrolet See the USA in your Chevrolet I wish I were an Oscar Mayer wiener I wish I were an Oscar Mayer wiener Double your pleasure, double your fun Double your pleasure, double your fun Winston tastes good like a cigarette should Winston tastes good like a cigarette should Its the real thing Its the real thing A little dabll do ya A little dabll do ya Source: Source: Advertising Age

16-15 Favorite Budweiser Advertising Slogans 1899 King of Bottled Beers AmericasSocialCompanion Foods Favorite Companion 1947 It lives with good taste everywhere 1953 When you know your beer… its bound to be Bud 1971 When you say Budweiser, youve said it all 1993 Proud to be your Bud

16-16 Do Blatantly Sexy Ads Turn You Off? Source: Source: USA Today

16-17 Amount Spent On... Internet Advertising = $1.92 Billion Outdoor Advertising = $1.58 Billion Source: Source: CIO Web Business, 1/1/1999

16-18 Internet Advertising Will reach $22 billion in the U.S. Will reach $22 billion in the U.S. The rest of world will spend $10.8 billion. The rest of world will spend $10.8 billion. $27 billion (10% of all U.S. ad spending) will be siphoned from traditional media $27 billion (10% of all U.S. ad spending) will be siphoned from traditional media Hardest hit: newspapers and direct mail Hardest hit: newspapers and direct mail Source: Source: CIO Web Business, 10/1/1999

16-19 Steps in Personal Selling Prospect/QualifyProspect/Qualify PreapproachPreapproach ApproachApproach PresentationPresentation ObjectionsObjections CloseClose Follow-upFollow-up

16-20 Public Relations Steps Listen Listen Change/Develop Change/Develop Inform InformPublicity Free Free More Effective Than Ad More Effective Than Ad Believable Believable No Control No Control No Repetition No Repetition

16-21 Sales Promotion Internal & External Internal & External Sampling Sampling Word-Of-Mouth Word-Of-Mouth Viral Marketing/Swag Viral Marketing/Swag Technology Technology Testimonials Testimonials

16-22 Tips on Issuing Coupons Coupons can be used as a Thank you for buying or a Stop and try us. Coupons can be used as a Thank you for buying or a Stop and try us. The value must be enough to attract customers. The value must be enough to attract customers. Use coupon promotions sparingly. Use coupon promotions sparingly. Get professional help to get maximum exposure. Get professional help to get maximum exposure. Color-code your coupons for different groups that use them. Color-code your coupons for different groups that use them.

16-23 Top Celebrity Endorsers Celebrity Candice Bergen Bill Cosby Kathi Lee Gifford Cindy Crawford Jerry Seinfield Cybil Shepherd Product (s) SprintJell-O Carnival Cruise Lines Revlon, Pepsi American Express LOreal

16-24 Top Sports Endorsers Athlete Micheal Jordan Tiger Woods Arnold Palmer Andre Agassi Endorsements $ 47.0 Million $ 24.0 Million $ 16.0 Million $ 14.0 Million Source: Source: Fortune Magazine

16-25 Promotional Strategies Push Strategy Pull Strategy Promotion Distribution Retail Store Customer Promotion

16-26 Building IMC IMC Gather Data & Maintain Database Gather Data & Maintain Database Respond Quickly To Adjust Policies & Procedures Respond Quickly To Adjust Policies & Procedures Provide Accessible Information Provide Accessible Information