1. Chapter 16 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. INTEGRATED MARKETING COMMUNICATIONS, ADVERTISING, AND PUBLIC RELATIONS 1

2. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Objectives 1. Define integrated marketing communications and explain how it relates to the development of an optimal promotional mix. 2. Describe the communication process and how it relates to the AIDA concept. 3. Identify the elements of the promotional mix. 2

3. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Objectives 4. Name the three major advertising objectives and the two basic categories of advertising. 5. Identify the major advertising strategies and the process of creating an advertisement. 6. Describe the major types of advertising appeals, and discuss their uses. 3

4. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Objectives 7. List and compare the major advertising media. 8. Explain the roles of public relations, publicity, cross-promotion, and ethics in an organization’s promotional strategy. 9. Discuss the factors that influence the effectiveness of a promotional mix, and how marketers measure effectiveness. 4

5. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 1. Define Promotion. Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

6. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Introduction ▮ Promotion - Function of informing, persuading, and influencing the consumer’s purchase decision ▮ Marketing communications - Messages that deal with buyer-seller relationships ▮ Integrated marketing communications (IMC) - Coordination of all promotional activities to produce a unified, customer- focused promotional message 6

7. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Figure 16.1 - Integrated Marketing Communications (IMC) 7

8. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 2. Define Advertising. Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

9. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Nonpersonal Selling ▮ Advertising - Any paid, nonpersonal communication about a business good ▮ Product placement - Marketer pays a motion picture owner a fee to display his or her product prominently in the film or show 9

10. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 3. What are the five ‘M’s’ of Advertising? Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

11. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 5 M’s ▮ Mission ▮ Money ▮ Message ▮ Media ▮ Measurement 11

12. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 4. What are the two types of Advertising? Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

13. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Types of Advertising ▮ Product advertising - Nonpersonal selling of a particular good or service ▮ Institutional advertising - Promotion of a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographic location, or government agency 13

14. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 5. What are the three objectives of advertising? Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

15. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Objectives of Advertising ▮ Informative advertising - Seeks to develop initial demand for a good, service, organization, person, place, idea, or cause ▮ Persuasive advertising - Attempts to increase demand for an existing good, service, organization, person, place, idea, or cause 15

16. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Objectives of Advertising ▮ Reminder advertising - Reinforces previous promotional activity by keeping the name of a good, service, organization, person, place, idea, or cause before the public 16

17. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Figure 16.2 - Advertising Objectives in Relation to Stage in the Product Lifecycle 17

18. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 6. What are the various advertising strategies? Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

19. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Advertising Strategies ▮ Comparative advertising - Emphasizes messages with direct or indirect promotional comparisons between competing brands Used by firms whose products are not market leaders Advertising by market leaders seldom acknowledge existence of competing products 19

20. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Advertising Strategies ▮ Celebrity testimonials Can improve product recognition A celebrity who endorses too many products may create marketplace confusion 20

21. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Advertising Strategies ▮ Retail advertising - Advertising by stores that sell goods or services directly to the consuming public Cooperative advertising - Retailer shares advertising costs with a manufacturer or wholesaler 21

22. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Interactive Advertising ▮ Two-way promotional messages transmitted through communication channels Induce message recipients to participate actively in the promotional effort ▮ Provides information throughout the purchase and consumption processes 22

23. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 7. What are the steps involved in creating an advertisement? Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

24. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Creating an Advertisement ▮ Must create effective ads that increase sales and enhance the organization’s image ▮ An ad needs to accomplish: Educating consumers about product features Enhancing brand loyalty Improving consumer perception of the brand 24

25. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Figure 16.3 - Elements of the Advertising Planning Process 25

26. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Advertising Messages ▮ Advertising campaign - Series of different but related ads that use a single theme and appear in different media within a specified time period Example: Retail chain Target’s “Hello.... Good Buy” ads featuring the Beatles’ musicTarget 26

27. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Advertising Appeals ▮ Fear appeals ▮ Humor in advertising messages ▮ Ads based on sex 27

28. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Developing and Preparing Ads ▮ Goals Gain attention and interest Inform or persuade Lead to purchase or other desired action ▮ After conceiving an idea, ads must be refined from rough sketch to finished layout 28

29. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Figure 16.4 - Elements of a Typical Ad 29

30. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Creating Interactive Ads ▮ Advergames ▮ Missiles ▮ Keyword ads ▮ Adware ▮ Social network advertising ▮ Narrowcasting 30

31. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 8. What are the different types of media selection available? Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

32. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Media Selection and Scheduling ▮ Television Mass coverage Powerful impact on viewers, repetition of messages Flexibility, and prestige 32

33. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Media Selection and Scheduling ▮ Radio Advantages Ability to reach people while they drive because they are a captive audience Benefits include low cost, flexibility, and mobility Disadvantages Highly segmented audiences, The temporary nature of messages A minimum of research information compared with television 33

34. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Media Selection and Scheduling ▮ Newspapers Advantages Flexible Intensive coverage for ads Can refer back to newspaper ads Disadvantages Hasty reading Relatively poor reproduction quality 34

35. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Media Selection and Scheduling ▮ Magazines Consumer magazines and business magazines Advantages The ability to reach precise target markets Quality reproduction Long life Prestige associated with some magazines Disadvantage Lack flexibility 35

36. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Media Selection and Scheduling ▮ Direct mail Advantages Ability to segment large numbers of prospective customers Flexible Detailed information Personalization Disadvantages High cost per reader Reliance on the quality of mailing lists Consumers’ resistance 36

37. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Media Selection and Scheduling ▮ Outdoor advertising Traditional - Billboards and painted displays Transit advertising - Ads placed inside and outside buses, subway trains, commuter trains, and stations 37

38. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Media Selection and Scheduling ▮ Interactive Media Internet and social media sites Augmented reality - Virtual imaging can be incorporated into real-time video on a mobile phone ▮ Other Advertising Media Total Immersion’s D’Fusion system Ads appear on T-shirts, on store flooring, in printed programs of live theater productions, and as previews on movie DVDs 38

39. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Media Scheduling ▮ Setting the timing and sequence for a series of advertisements ▮ Influenced by a variety of factors Seasonal sales patterns Repurchase cycles Competitors’ activities 39

40. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Marketing and Nonmarketing Public Relations ▮ Nonmarketing public relations - A company’s messages about general management issues ▮ Marketing public relations (MPR) - Focused public relations activities that directly support marketing goals 40

41. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 9. What is an advertising agency? Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

42. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations ▮ Firms whose marketing specialists help advertisers plan and prepare advertisements ▮ May offer creativity and objectivity that is difficult to maintain in an internal department Advertising Agencies Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

43. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

44. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 10. Define Publicity. Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

45. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Publicity ▮ Nonpersonal stimulation of demand for a good by unpaid placement of significant news ▮ Many consumers consider news stories more credible than advertisements 45

46. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Cross-Promotion ▮ Marketing partners share the cost of a promotional campaign that meets their mutual needs 46

47. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Ethics and Promotional Strategies ▮ Advertising to children ▮ Insertion of product messages in media programs without full disclosure ▮ Use of cookies in online advertising 47

48. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Puffery and Deception ▮ Puffery Exaggerated claims of a product’s superiority Use of subjective or vague statements that may not be literally true ▮ The Uniform Commercial Code standardizes sales and business practices throughout the United States 48

49. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Ethics in Public Relations ▮ Issues include performing services for companies that produce unsafe products ▮ The Public Relations Society of America’s Code of Professional Standards prohibits: Promoting products or causes widely known to be harmful 49

50. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Promotional Mix Effectiveness ▮ Marketers create a promotional mix by: Blending advertising Personal selling Sales promotion Public relations ▮ Several factors can influence the effectiveness of promotional mix 50

51. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Nature of the Market ▮ Market’s target audience ▮ Personal selling can be highly effective if the market has a limited number of buyers ▮ Type of customer 51

52. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Nature of the Product ▮ Consumer products rely more on advertising than business products ▮ Personal selling is important for shopping products ▮ Personal and nonpersonal selling are important in the promotion of specialty items 52

53. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Stage in the Product Lifecycle ▮ Introduction - Nonpersonal and personal selling ▮ Growth and maturity - Advertising and personal selling ▮ Maturity and early - Reduction in advertising and sales promotion 53

54. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Price ▮ Advertising dominates for low-unit-value products ▮ Personal selling involves high per-contact costs ▮ A real barrier in implementing any promotional strategy is the size of the promotional budget 54

55. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Funds Available for Promotion ▮ Percentage-of-sales method ▮ Fixed-sum-per-unit method ▮ Meeting competition method ▮ Task-objective method 55

56. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Evaluating Promotional Effectiveness ▮ Direct sales results test ▮ Indirect evaluation 56

57. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Measuring Advertising Effectiveness ▮ Cost per thousand impressions (CPM) ▮ By measuring promotional effectiveness: Organizations can evaluate different strategies Prevent mistakes before spending money on specific programs Improve their promotional programs 57

58. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Media and Message Research ▮ Media research - Assesses how well a particular medium delivers a message ▮ Message research - Tests consumer reactions to an advertisement’s creative message 58

59. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Media and Message Research ▮ Pretesting ▮ Posttesting Readership tests Unaided recall tests Inquiry tests Split runs - Allow advertisers to test two or more ads at the same time 59

60. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Measuring Public Relations Effectiveness ▮ The simplest and least costly method Whether the target audience received messages directed to them Count the number of media placements and gauge the extent of media coverage ▮ Conduct focus groups, interview opinion leaders 60

61. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Evaluating Interactive Media ▮ Hits - User requests for a file ▮ Impressions - Number of times a viewer sees an ad ▮ Click-throughs - User clicks ad for more information ▮ View-through - Measures response over time 61

62. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Evaluating Interactive Media ▮ Cost per impression - Relates the cost of an ad to every thousand people who view it ▮ Cost per response (click-through) - Relates the cost of an ad to the number of people who click it ▮ Conversion rate - Percentage of visitors to a Web site who make a purchase 62

63. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Pepe’s Pizzeria Video 63 http://www.cengage.com/marketing/book_content/boone_9781133628460 /videos/ch16.html