Integrated Marketing Communications:, PR, Publicity, and Sales Promotions Jeremy Kees, Ph.D.

Sales Promotions A collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade –Customer Oriented –Trade Oriented

Why Sales Promotions? Increased Promotional Sensitivity –Declining Brand Loyalty –Response to Competition (viscous cycle) Brand Proliferation Fragmentation of Markets Pressures for Short-Term Performance –Increased Accountability –Advertising Inefficiency

Consumer-Oriented Promotions Coupons

Consumer-Oriented Promotions Refunds –Similar to Rebates Samples Bonus Packs Premiums

Consumer-Oriented Promotions Contests Sweepstakes

Consumer-Oriented Promotions Specialty Advertising –Peanut Chews Opening Night T-Shirt

Consumer-Oriented Promotions Event Marketing –Becoming part of a personally relevant moment in consumers’ lives –Sponsorships are perhaps the most prevalent/popular form of event marketing –Example: Bryant Park and the Simpsons Free ice skating (skate rentals) Ned Flanders' hot chocolate Simpsons Sprinkalicious donuts "Duff & D'oh!Nuts" ice cream Empire State Building of shining “Simpsons” yellow

Trade-Oriented Promotions Trade Allowances Point-of-Purchase Displays Trade Shows Dealer Incentives

And finally… Marketers’ response to the DVR / TiVo revaluation… Product placement –Some examples Apprentice / Survivor The Office (1)1 –We now see it in… Movies TV programming Video games

Group Exercise Is product placement a useful tool for marketers? –If so, under what circumstances Are there any ethical considerations? –For instance, some countries not permit product placements in domestic made films.

Marketing Public Relations (MPR) The firm’s communications and relationships with its various publics Includes a variety of programs to promote or protect a company’s image or individual products Corporate Ads – Boeing VSB

MPR Functions Building Marketplace Excitement –PS3PS3 Creating Advertising News –Super Bowl AdsSuper Bowl Ads Substitute for Advertising Providing Value-Added Customer Service –ButterballButterball

Advantages of MPR Credibility Cost Avoidance of Clutter Image Building

Publicity …. nonpersonal stimulation of demand for a good, service, place, idea, person, or organization by unpaid placement of significant news regarding the product in a print or broadcast medium Sprint Fires Customers Really, a subset of the MPR effort.

Advantages of Publicity Credibility (even more than public relations) News Value Disadvantages??

Personal Selling …. interpersonal influence process involving a seller’s promotional presentation conducted on a person-to- person basis with the buyer –Oldest and most traditional form of “marketing” –Traditionally a negative stereotype (unfortunately) –Today, we see an emphasis on “relationship selling” Emphasis on LTV of customers Constant building/fostering of relationships

Today’s Salesperson… A highly-trained professional Takes a customer-oriented approach in order to satisfy the long-term needs of both the customer and the selling firm Problem solvers –Account managers –Know customers inside and out so that the company can adapt to customer needs

Huge $$ Potential (if you’re good)

The Sales Process

Sales Force Decisions Objectives Strategy Structure Size Compensation