1. Dr. Close

2. McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved "Doing business without advertising is like winking at a girl in the dark. You know what you are doing, but nobody else does." -- Steuart Henderson Britt

3. Strategic Goals of Mkt Comm  Create awareness  Build positive images  Identify prospects  Build channel relationships  Retain customers VSVS

4. IMC  Integrated marketing communications  Disjointed campaigns are horrible  Use SYNERGISTIC combination of your tools  Message should be complementary/ consistent (VW Bug as retro-hip)  Experts who specialize must work together  Don’t have to choose between sales promo, personal selling, & ads (use some of each to reach more of your target market)

5. IMC Tool: Advertising  Promotion Methods a.k.a. The Promotion Mix  Advertising: paid, impersonal promotions by identified sponsor(s)  Traditional big markets, but adaptable to smaller  Low cost/contact (LA Times: 2 cents/per)  Difficult to measure impact  Not adaptable, inflexible

6. IMC Tool: Sales Promos  Promotion Methods (cont…)  Sales promotion (coupons, POP, samples, tradeshow)  Added value or incentive in regard to a particular product  May complement personal and mass selling (bonus)  Targets  Final consumers: coupons, freq. shopper  Middleman: gifts, price breaks  Company sales force: bonuses, training  $3 SP for $1 ads

7. IMC Tool: Publicity and PR  Promotion Methods (cont…)  Publicity; unpaid, impersonal promotions (talk show, movie premiere, charity, cars, etc; Rosanne)  Do not pay media costs (magazine article)  Perceived credibility; negativity Publicity has far more value than advertising, but you must give reporters a reason to write about you. Photo: Michel O’Sullivan

8. IMC Tool: WOM/eWOM  Promotion Methods (cont…)  Word of mouth: “WOM is the most important marketing element that exists” Gordon Weaver, Paramount Pictures. Do you agree?  Unpaid, personal promotions (after ads – PLC)  Very high credibility (friends, business acquaintances, employees)  Try for opinion leaders (may pay to stimulate; teens; movies; fashions)  Usually negative (respond to complaints)

9. IMC Tool: Personal Selling  Promotion Methods (cont…)  Personal selling; paid, personal promotions; direct spoken communication  Adaptable to each target  Immediate feedback  Very expensive ($200/contact)  More spending on p.s. than ads

10. McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved Integrated Marketing Approach How Various Promotion Tools Might Contribute to the Purchase of a Hypothetical Product

11. McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved Some Differences between Traditional Marketing Communication Efforts and Integrated Marketing Communications

12. McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved Advertising: Planning and Strategy  Objectives  Generalist viewpoint – Concerned with sales, profits, and return on investment  Middle viewpoint – Sees advertising as a competitive weapon  Specialist viewpoint – Concerned with the effects of specific ads or campaigns  In the long run and often in the short run, advertising is justified on the basis of the revenue it produces  Approach that aids intelligent decision making is needed

13. McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved Developing Advertising Objectives: Nine Questions  Does the advertising aim at immediate sales?  Does the advertising aim at near-term sales?  Does the advertising aim at building a long-range consumer franchise?  Does the advertising aim at helping increase sales?  Does the advertising aim at some specific step that leads to a sale?

14. McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved Developing Advertising Objectives: Nine Questions  How important are supplementary benefits of advertising?  Should the advertising impart information needed to consummate sales and build customer satisfaction?  Should advertising build confidence and goodwill for the corporation?  What kind of images does the company wish to build?

15. McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved Advertising Decisions  Key decisions to be made include  Determining the size of the advertising budget  Allocation of the advertising budget  Important to remember that brand equity and consumer preference for brands drive market share