Introduction to Advertising, Sales Promotion and Public Relations 4/16/2017 Introduction to Advertising, Sales Promotion and Public Relations

Overview Process and advantages of integrated marketing communications 4/16/2017 Overview Process and advantages of integrated marketing communications Five promotion tools and factors that must be considered in shaping overall promotion mix Major decisions involved in developing an advertising program How sales promotion campaigns are developed and implemented How companies use public relations to communicate with their publics

Marketing Communications (Promotion) Mix 4/16/2017 Marketing Communications (Promotion) Mix Advertising Sales Promotion Public Relations Personal Selling Direct Marketing

New Communications Realities 4/16/2017 New Communications Realities Mass markets have fragmented, leading to shift away from mass marketing Improvements in information technology are speeding movement toward segmented marketing These factors have shifted the marketing communications model Less broadcasting More narrow casting

Integrated Marketing Communications 4/16/2017 Integrated Marketing Communications Using IMC, firms can carefully integrate and coordinate their communication channels to deliver clear, consistent, and compelling messages about themselves and their brands Factors influencing the choice of promotional tools include…

Advertising Can reach masses of geographically dispersed buyers 4/16/2017 Advertising Can reach masses of geographically dispersed buyers Can repeat message many times Impersonal, one-way communication Can be very costly for some media types

4/16/2017 Personal Selling Involves personal interaction between two or more people Most effective tool at building preferences, convictions and actions Allows relationship building Most expensive promotion tool; requires long-term commitment

Sales Promotion Wide assortment of tools Attracts consumer attention 4/16/2017 Sales Promotion Wide assortment of tools Attracts consumer attention Offers strong incentives to buy Invites and rewards quick consumer response Effects are short-lived

Public Relations Very believable 4/16/2017 Public Relations Very believable Reaches people who avoid salespeople and ads Can dramatize company or product Tends to be used as an afterthought Planned use can be effective and economical

Direct Marketing Many forms share four primary characteristics 4/16/2017 Direct Marketing Many forms share four primary characteristics Nonpublic Immediate Customized Interactive Well suited to highly targeted marketing

Promotion Mix Strategies 4/16/2017 Promotion Mix Strategies Push Strategy Producer directs marketing activities toward channel members to induce them to carry product and promote it to final consumers Pull Strategy Producer directs marketing activities toward final consumers to induce them to buy product

Major Advertising Decisions 4/16/2017 Major Advertising Decisions Setting advertising objectives Setting the advertising budget Developing advertising strategy Evaluating advertising campaigns

Setting Advertising Objectives 4/16/2017 Setting Advertising Objectives Advertising Objective Specific communication task to be accomplished with a specific target audience during a specific period of time Classified by Purpose Inform—to build primary demand Persuade—to build selective demand Compare—type of persuasive advertising Remind—for mature products/brands

Setting the Advertising Budget 4/16/2017 Setting the Advertising Budget Affordable method Percentage-of-sales method Competitive-parity method Objective-and-task method

Two Major Elements of Advertising Strategies 4/16/2017 Two Major Elements of Advertising Strategies Creating advertising messages Message strategy and message execution must break through the clutter Message avoidance—zipping (VCR/DVR), zapping Selecting advertising media Set reach, frequency, and impact goals Choose among major media types Select specific media vehicles Decide on media timing

Message Strategy Identify customer benefits 4/16/2017 Message Strategy Identify customer benefits Develop compelling creative concept—the “Big Idea” Advertising appeals should be meaningful, believable, and distinctive

Message Execution Slice of Life Lifestyle Fantasy (dream) 4/16/2017 Message Execution Slice of Life Lifestyle Fantasy (dream) Mood or Image Musical Personality Symbol e.g., Taco Bell dog Technical Expertise of Firm’s Personnel Scientific Evidence Testimonial or Endorsement

Message Execution Choose a tone Use memorable, attention-getting words 4/16/2017 Message Execution Choose a tone Use memorable, attention-getting words Choose correct format elements Illustration Headline Copy

Setting Media Objectives 4/16/2017 Setting Media Objectives Reach Percentage of people exposed to ad Frequency Number of times a person exposed to ad Media Impact Qualitative value of message exposure through given medium

Choosing Media Type Factors to consider when selecting media type 4/16/2017 Choosing Media Type Factors to consider when selecting media type Medium’s impact Message effectiveness Cost

Choosing Media Vehicles 4/16/2017 Choosing Media Vehicles Media vehicles Specific media within each general media type Factors to consider Cost per exposure Audience quality Audience attention Editorial quality

Deciding on Media Timing 4/16/2017 Deciding on Media Timing Must decide how to schedule advertising over course of a year Follow seasonal pattern Oppose seasonal pattern Same coverage all year Choose the ad pattern Continuity Pulsing

Evaluating Advertising 4/16/2017 Evaluating Advertising Measure the communication effects of an ad—“Copy Testing” Measure the sales effects of an ad Is the ad increasing sales?

4/16/2017 Sales Promotion Sales promotions are short-term incentives to encourage the purchase or sales of a product or service Goal of sales promotion is to generate immediate sales

Rapid Growth of Sales Promotion 4/16/2017 Rapid Growth of Sales Promotion Sales promotion can take the form of consumer, business, trade, or sales force promotions Rapid growth in the industry has been achieved because Product managers are facing more pressure to increase their current sales Companies face more competition Advertising efficiency has declined Consumers have become more deal oriented

Consumer Promotion Objectives Increase short-term sales 4/16/2017 Consumer Promotion Objectives Increase short-term sales Help build long-term market share Many tools exist for achieving these objectives

Consumer Sales Promotion Tools 4/16/2017 Consumer Sales Promotion Tools Samples Most effective Most costly Coupons Cash refunds/rebates Price packs Premiums Advertising Specialties Good with advertiser’s name Patronage rewards for loyal/frequent customers Point-of-purchase displays Demonstrations Contests Sweepstakes Games

Trade Promotion Objectives Tools Persuade resellers to carry brand 4/16/2017 Trade Promotion Objectives Persuade resellers to carry brand Give brand shelf space Promote brand in advertising Push brand to customers Tools Discounts, allowances, free goods, push money, and specialty advertising items

Developing the Sales Promotion Program 4/16/2017 Developing the Sales Promotion Program Decide on the size of the incentive Set conditions for participation Decide how to promote and distribute promotion program Decide program length Evaluate program

4/16/2017 Public Relations Building good relations with firm’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

Public Relations Functions 4/16/2017 Public Relations Functions Press relations or press agency Product publicity Public affairs Lobbying Investor relations Development

Public Relations Role & Impact 4/16/2017 Public Relations Role & Impact May strongly impact public awareness at lower cost than advertising Results can be spectacular Beginning to play increasingly important brand-building role

Public Relations Tools 4/16/2017 Public Relations Tools News Speeches Special events Buzz marketing Mobile marketing Written materials Audiovisual materials Corporate identity materials Public service activities Company Web site

Recap—What was Covered? 4/16/2017 Recap—What was Covered? Process and advantages of integrated marketing communications Five promotion tools and factors that must be considered in shaping overall promotion mix Major decisions involved in developing an advertising program How sales promotion campaigns are developed and implemented How companies use public relations to communicate with their publics