ADVERTISING MANAGEMENT …through the lens of Branding Dr. Close

1.23 Key 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 Advertising Sales Promotions IMC Management Personal Selling Direct Marketing e-Commerce Direct Marketing e-Commerce Sales Promotions P-O-P Supportive Sales Promotions P-O-P Supportive Public Relations

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

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

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

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

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

1.8 DIRECT MARKETING & e-COMMERCE Distinguished From Other Primary Promotional Tools in 3 Ways – Uses a Combination of Media – Designed to Elicit a Direct Response – Transactions Can Occur Anywhere E-Commerce is Another Form of Direct Marketing – Business is Conducted Between Buyers & Sellers Using Electronic Exchange Media The Promotional Mix

1.9 The Promotional Mix SPONSORSHIP Funding an Event Creating an Event to Showcase a Firm’s Brand POINT-OF-PURCHASE 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

1.10 The Promotional Mix PUBLIC RELATIONS Communication that can Foster Goodwill Between a Firm & 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

1.12 The Promotional Mix ROLE OF PROMOTION IN MARKETING STRATEGY 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 & Clearly Distinguished the Product of that Seller from those Offered by Competitors

1.13 The Promotional Mix ROLE OF PROMOTION IN MARKETING STRATEGY Affects 3 Key Aspects of Decision Making with Respect to Brands – Creating the Marketing Mix – Achieving Effective Market Segmentation, Product Differentiation, & Positioning – Enhancing Revenues & Profits

1.14 The Promotional Mix – Assumes a Wide Range of Responsibilities Related to: Conception Pricing

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

1.16 One Role for Promotion is to Introduce Brand/Line Extensions Example: Extension of Jell-O into the Yogurt Market Go-gurt? (I say no-gurt!)

1.17 The Promotional Mix ROLE OF PROMOTION IN MARKETING _ Price Effects the Consumer Market Effects the Trade Market – Distribution Consumer Access to Brands Securing Trade Distribution

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

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

1.20 Promotional Tools Help Increase Brand Loyalty (or even brand love)

1.22 Cut Through the