1.1 INTRODUCTION to PROMOTION and INTEGRATED MARKETING COMMUNICATIONS Chapter 1:

1.2 Relationship Between Promotion, the Promotional Mix, and Integrated Marketing Communications PROMOTION Communication Process in Marketing Communication Process in Marketing Used to Create a Favorable Predisposition Toward: Used to Create a Favorable Predisposition Toward: Brand of Product Brand of Product Service Service Idea Idea Person Person PROMOTIONAL MIX Blend of Communications Tools and Activities Used by a Firm Blend of Communications Tools and Activities Used by a Firm Carries out the Promotion Process Carries out the Promotion Process Communicates Directly with Target Markets Communicates Directly with Target Markets

1.3 Relationship Between Promotion, the Promotional Mix, and Integrated Marketing Communications (con’t) INTEGRATED MARKETING COMMUNICATIONS (IMC) Manages the Processes and Activities of Using Promotional Tools Manages the Processes and Activities of Using Promotional Tools Unified Way Unified Way Produces a Synergistic Communications Effect Produces a Synergistic Communications Effect

1.4 Relationship Between Promotion, the Promotional Mix, and Integrated Marketing Communications (con’t) Promotion:Process Promotion:Process Promotion Mix:Tools Promotion Mix:Tools IMC:Management of the Promotion Mix IMC:Management of the Promotion Mix

1.5 The Promotional Mix ADVERTISING Paid Mass Media Attempt to Persuade Paid Mass Media Attempt to Persuade Complex System of Strategic Planning and Complex System of Strategic Planning and Creative Genius INTERNET ADVERTISING Electronic Mail ( ) Electronic Mail ( ) Internet Relay Chat (IRC) Internet Relay Chat (IRC) Usenet Usenet World Wide Web (www) World Wide Web (www) SALES PROMOTION Use of Incentives to Generate a Specific Short-Term Response Use of Incentives to Generate a Specific Short-Term Response Household Consumer Household Consumer Trade Buyer Trade Buyer Business Buyer Business Buyer

1.6 Example of Mass Media Advertising

1.7 Example of Sales Promotion

1.8 DIRECT MARKETING AND e-COMMERCE Distinguished From Other Primary Promotional Tools in 3 Ways Distinguished From Other Primary Promotional Tools in 3 Ways Uses a Combination of Media Uses a Combination of Media Designed to Elicit a Direct Response Designed to Elicit a Direct Response Transactions Can Occur Anywhere Transactions Can Occur Anywhere E-Commerce is Another Form of Direct Marketing E-Commerce is Another Form of Direct Marketing Business is Conducted Between Buyers and Sellers Using Electronic Exchange Media Business is Conducted Between Buyers and Sellers Using Electronic Exchange Media The Promotional Mix (con’t)

1.9 The Promotional Mix (con’t) SPONSORSHIP Funding an Event Funding an Event Creating an Event to Showcase a Firm’s Brand Creating an Event to Showcase a Firm’s BrandPOINT-OF-PURCHASE Materials Used in Retail Setting to Attract Shoppers’ to a Company’s Brand Materials Used in Retail Setting to Attract Shoppers’ to a Company’s Brand SUPPORTIVE COMMUNICATIONS Used to Target Audiences Outside Mainstream Media or Electronic Communications Used to Target Audiences Outside Mainstream Media or Electronic Communications

1.10 The Promotional Mix (con’t) PUBLIC RELATIONS Communication that can Foster Goodwill Between a Firm and its Many Constituent Groups Communication that can Foster Goodwill Between a Firm and its Many Constituent Groups PERSONAL SELLING Presentation of Information about a Firm’s Products or Services by One Person to Another Person or to a Small Group of People Presentation of Information about a Firm’s Products or Services by One Person to Another Person or to a Small Group of People

1.11 Personal Selling is the Most Important Variable in the Promotional Mix of Many Organizations

1.12 The Promotional Mix (con’t) ROLE OF PROMOTION IN MARKETING STRATEGY Must Have Marketing Strategy Decisions about Products (Brand) Must Have Marketing Strategy Decisions about Products (Brand) Branding – Established Name, Term, Symbol or Design that Identifies for Consumers that a Product is being Offered by a Particular Seller and Clearly Distinguished the Product of that Seller from those Offered by Competitors Branding – Established Name, Term, Symbol or Design that Identifies for Consumers that a Product is being Offered by a Particular Seller and Clearly Distinguished the Product of that Seller from those Offered by Competitors

1.13 The Promotional Mix (con’t) ROLE OF PROMOTION IN MARKETING STRATEGY (con’t) Role of Promotion in Marketing Strategy Affects 3 Key Aspects of Decision Making with Respect to Brands Role of Promotion in Marketing Strategy Affects 3 Key Aspects of Decision Making with Respect to Brands Creating the Marketing Mix Creating the Marketing Mix Achieving Effective Market Segmentation, Product Differentiation, and Positioning Achieving Effective Market Segmentation, Product Differentiation, and Positioning Enhancing Revenues and Profits Enhancing Revenues and Profits

1.14 The Promotional Mix (con’t) ROLE OF PROMOTION IN THE MARKETING MIX Assumes a Wide Range of Responsibilities Related to: Assumes a Wide Range of Responsibilities Related to: Conception Conception Pricing Pricing Distribution Brands Distribution Brands Product (Brand) Product (Brand)

1.15 The Promotional Mix (Con’t) ROLE OF PROMOTION IN THE MARKETING MIX (con’t) Promotion Affects the Product Area of the Promotion Affects the Product Area of the Marketing Mix Information and Persuasion Information and Persuasion Introduction of New Brand or Brand Extensions Introduction of New Brand or Brand Extensions Building and Maintaining Brand Loyalty Building and Maintaining Brand Loyalty Among Consumers Building and Maintaining Brand Loyalty Building and Maintaining Brand Loyalty Within the Trade

1.16 One Role for Promotion is to Help Introduce Brand Extensions Like this Extension of Jell-O into the Yogurt Market

1.17 The Promotional Mix (con’t) ROLE OF PROMOTION IN THE MARKETING MIX (con’t) Price Price Effects the Consumer Market Effects the Consumer Market Effects the Trade Market Effects the Trade Market Distribution Distribution Consumer Access to Brands Consumer Access to Brands Securing Trade Distribution Securing Trade Distribution

1.18 The Role of Promotion in Effective Market Segmentation, Differentiation and Positioning Promotion is Important in Helping to Execute These Strategies Promotion is Important in Helping to Execute These Strategies Market Segmentation Market Segmentation Product Differentiation Product Differentiation Positioning Positioning External External Internal Internal

1.19 The Role of Promotion in Revenue and Profits Sales Occur Sales Occur Brand has Well-Conceived Marketing Mix Brand has Well-Conceived Marketing Mix Complete Marketing Mix Complete Marketing Mix Good Promotion Good Promotion Large-Scale Demand /Production Produces Large-Scale Demand /Production Produces Cost to Produce Item is Reduced Cost to Produce Item is Reduced Known as Economies of Scale Known as Economies of Scale Brand Loyalty at Any Cost Brand Loyalty at Any Cost Firm Raises Prices Firm Raises Prices Known as Inelasticity of Demand Known as Inelasticity of Demand

1.20 Promotional Tools Help Increase Brand Loyalty

1.21 Integrated Marketing Communications FACTORS CONTRIBUTING TO IMC’s RISING PROMINENCE Fragmentation of Media Fragmentation of Media Better Audience Assessment Through Database Technology Better Audience Assessment Through Database Technology Consumer Empowerment Consumer Empowerment Increased Advertising Clutter Increased Advertising Clutter Shifting Channel Power Shifting Channel Power Desire of Greater Accountability Desire of Greater Accountability

1.22 Promotion and IMC Help Cut Through the Clutter of Advertising

1.23 Participants in IMC Management Marketing Organization Marketing Plan Goal & Objectives Customer/Prospect Databases Marketing Organization Marketing Plan Goal & Objectives Customer/Prospect Databases Specialized Promotion Organizations Media Organizations Event Management Firms Web Site Designers Sales Promotions Agencies Direct Marketing Agencies Public Relations Firms P-O-P Agencies & Designers Specialized Promotion Organizations Media Organizations Event Management Firms Web Site Designers Sales Promotions Agencies Direct Marketing Agencies Public Relations Firms P-O-P Agencies & Designers Advertising Agency Research Creative Strategies Production Message Placement Advertising Agency Research Creative Strategies Production Message Placement Internet Advertising (Chapter 9) Advertising (Chapter 8) Advertising (Chapter 8) Sales Promotions (Chapter 11) Sales Promotions (Chapter 11) IMC Management Personal Selling (Chapter 14) Personal Selling (Chapter 14) Direct Marketing e-Commerce (Chapter 10) Direct Marketing e-Commerce (Chapter 10) Sales Promotions P-O-P Supportive (Chapter 12) Sales Promotions P-O-P Supportive (Chapter 12) Public Relations (Chapter 13) Public Relations (Chapter 13)