1. MKT 337 Promotional Management
Lecture 1

2. An Introduction to Integrated Marketing Communications
Chapter 1
An Introduction to Integrated Marketing Communications

3. Topics of the Lecture Rapidly changing media environment
The Growth of Advertising and Promotion
The Role of Marketing
The Idea of Value and Marketing mix
Growing Importance of IMC
The Promotional Mix
IMC Audience Contact Tools
Touch Points: Control vs. Impact

4. Evolution of Advertising
960–1279
Bronze plate for printing an advertisement for the Liu family needle shop at Jinan, Song Dynasty China.

5. Evolution of Advertising
First published on April 24, 1704,
The first newspaper advertisement, an announcement seeking a buyer for an Oyster Bay, Long Island, estate, is published in the Boston News-Letter.

6. Evolution of Advertising First Billboard Appear
1835
First Billboard Appear

7. Evolution of Advertising
1890
Does the Logo look Familiar? 

8. Evolution of Advertising
October 20, 1930
The first series considered to be a "soap opera" was Painted Dreams, which debuted on October 20, 1930 on Chicago radio station WGN.

9. Evolution of Advertising
July 1, 1941
The first television commercial premiered during a baseball game between the Brooklyn Dodgers and Philadelphia Phillies. It was purchased by the Bulova company to promote their clocks with the phrase, “America Runs on Bulova Time.” Bulova paid $9 for the world’s first TV commercial spot

10. Evolution of Advertising
113M+ viewers
The commercial breaks are once again set to be a flashy affair, and it's little surprise: Super Bowl 2015 broadcaster NBC is seeking $4.4 million to $4.5 million per 30-second spot, up on the $4 million price tag FOX set last year.

11. Rapidly Changing Media Environment
Mass media losing viewers, readers, listeners
Digital media targets narrow audience
Consumers not content to be passive message recipients
Information now obtained from a myriad of sources

12. The Growth of Advertising and Promotion
Daily Ad/brand Exposure
Integral part of social and economims
- Carefully prepared messages delivered to carefully targeted audiences
Six-fold increase between 1980 and 2010
w marketing channels
- Internet ads (banner ads, videos, webisodes)
- Social media
- Mobile marketing

13. Rapidly Changing Media Environment

14. Advertising & Promotion Nonprofit Organizations
The Role of Marketing
Advertising & Promotion
Nonprofit Organizations
Inform customers of a product or service
Convince them of its ability to satisfy their wants or needs
Help develop and sustain relationships
Solicit donations
Offer intangible social and psychological satisfactions

15. What is Marketing?
The activity, set of institutions, and processes for…
creating, communicating, delivering, and exchanging offerings that have…
value for customers, clients, partners, and society at large

16. Value & Marketing Mix
Customer’s perception of all the benefits of a product or service
Weighed against costs of acquiring and consuming it
Benefits can be…
Functional
Experiential
Psychological

17. Marketing Mix
The Four Ps
Product
Price
Place
Promotion

18. Interactive Marketing
The Promotion Mix
Advertising
Sales Promotion
Personal Selling
Public Relations
Promotion MIX
Interactive Marketing

19. Celebrity Endorsement
The Promotion Mix
Advertising
Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Can reach masses of geographically dispersed buyers
Newspapers
Magazine
Broadcast TV
Cable TV
Radio
Billboards
Internet
Celebrity Endorsement

20. Sales promotion
Short-term incentives to encourage the purchase or sale of a product or service

21. Major Sales Promotion tools
Samples
Coupons
Cash refunds
Price packs
Premiums
e.g. McDonalds Happy meal
Advertising specialties(e.g.
free gifts)
Point-of-purchase displays
Demonstrations
Contests
Sweepstakes
(e.g. lottery)
Games

22. Sales Promotion Samples offer a trial amount of a product
Coupons are certificates that give buyers a saving when they purchase specified products
Cash refunds are similar to coupons except that the price reduction occurs after the purchase
Price packs offer consumers savings off the regular price of a product

23. Sales Promotion
Premiums are goods offered either for free or at a low price Advertising specialties are useful articles imprinted with the advertiser’s name, logo, or message that are given as gifts to consumers Point-of-purchase promotions include displays and demonstrations that take place at the point of sales

24. Sales Promotion
Contests, sweepstakes, and games give consumers the chance to win something—such as cash, trips, or goods—by luck or through extra effort
Contests require an entry by a consumer
Sweepstakes require consumers to submit their names for a drawing
Games present consumers with something that may or may not help them win a prize
Event marketing
Note to students:
Event marketing is on the rise. The text gives an example of Charmin:
P&G recently sponsored a holiday event promotion for its Charmin brand in New York’s Times Square, where it can be very difficult to find a public restroom. For the second year running, P&G set up 20 sparkling clean Charmin-themed mini-bathrooms, each with its own sink and a bountiful supply of Charmin. The event turned out to be the ultimate in experiential marketing—touching people in places advertising wouldn’t dare to go. More than 420,000 people gratefully used the facilities and privately voted for the Charmin they preferred (Charmin Ultra Soft or Ultra Strong).

25. News and Media Exposure
The Promotion Mix
Personal Selling
Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships
Prospecting
Approaching
Presenting
Following UP
Closing
Handling Objections
Public Relations
Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events
Corporate Briefing
News and Media Exposure
Buzz Marketing
Viral Marketing
Buzz marketing: marketers attempt to create a trend or acceptance of a product or service through seeking out trendsetters in community and get them to talk about the brand.

26. Direct Marketing The Promotion Mix
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—the use of telephone, mail, fax, , the Internet, and other tools to communicate directly with specific consumers

27. Advertising Classifications
Consumers
National
Retail / Local
Primary / Selective Demand
Business-to-Business
Organizations
Professional
Trade

28. Interactive Marketing
Interactive media
Internet
Kiosks
Cell phones
Other mobile devices

29. Digital/Internet Marketing
Digital Marketing
Digital/Internet Marketing
Interactive media
Allow users to participate in and modify the form and content of the information they receive in real time
Social media
Online means of communication and interactions used to create, share, and exchange content
Mobile marketing
Messages delivered are specific to a consumer’s location or consumption situation

30. Contemporary IMC Approach
Point of
purchase
Publicity
Interactive
marketing
Public
relations
Direct
Special
events
Packaging
Sales
promotion
response
Mass media advertising

31. Growing Importance of IMC
Value of IMC
Avoids duplication of marketing efforts
Synergy among promotional tools
More efficient and effective marketing
Rapidly changing environment
Consumer behavior
Technology
Media consumption behavior
Proliferation of media

32. IMC Audience Contact Tools

33. IMC example: Apple

37. Touch-Points: Control Vs. Impact

38. IMC Communication Planning Model

39. Promotional Program Situation Analysis
Internal Analysis
Promotional Department
Firm’s Ability
Agency Evaluation & Selection
Review of previous programs
External Analysis
Consumer Behavior Analysis
Market Segmentation and target market
Market Positioning

40. Any questions / concerns?