1. Integrated Marketing Communication: Advertising, Sales Promotion, and Public Relations 12

2. 12-2 Marketing Communication Mix or Promotion Mix Product’s Design Product’s Price Product’s Package Stores that Sell the Product

3. 12-3 Marketing Communications Mix Advertising Advertising –Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Sales Promotion Sales Promotion –Short-term incentives to encourage the purchase or sale of a product or service.

4. 12-4 Marketing Communications Mix Public Relations 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. Personal Selling Personal Selling –Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.

5. 12-5 Marketing Communication Mix Direct Marketing Direct Marketing –Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—the use of telephone, mail, fax, e-mail, the Internet, and other tools to communicate directly with specific consumers.

6. 12-6 2 Factors are Changing the Face of Today’s Marketing Communications: Improvement in Information Technology Has Led to Segmented Marketing More Narrowcasting Marketers Have Shifted Away From Mass Marketing Less Broadcasting Market Fragmentation Led to Media Fragmentation The Changing Communications Environment

7. 12-7 The Need for IMC Using IMC, the company carefully integrates and coordinates its many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.

8. 12-8 Integrated Marketing Communication

9. 12-9 Advertising Can reach masses of geographically dispersed buyers. Can reach masses of geographically dispersed buyers. Can repeat a message many times. Can repeat a message many times. Is impersonal, one-way communication. Is impersonal, one-way communication. Can be very costly for some media types. Can be very costly for some media types.

10. 12-10 Personal Selling Involves personal interaction between two or more people. Involves personal interaction between two or more people. Allows relationship building. Allows relationship building. Most expensive promotion tool. Most expensive promotion tool.

11. 12-11 Sales Promotion Wide assortment of tools. Wide assortment of tools. Attracts consumer attention. Attracts consumer attention. Offers strong incentives to buy. Offers strong incentives to buy. Invites and rewards quick consumer response. Invites and rewards quick consumer response. Effects are short-lived. Effects are short-lived.

12. 12-12 Public Relations Very believable. Very believable. Reaches people who avoid salespeople and ads. Reaches people who avoid salespeople and ads. Can dramatize a company or product. Can dramatize a company or product. Tends to be used as an afterthought. Tends to be used as an afterthought. Planned use can be effective and economical. Planned use can be effective and economical.

13. 12-13 Direct Marketing Many forms that share four characteristics: Many forms that share four characteristics: –Nonpublic –Immediate –Customized –Interactive Well suited to highly targeted marketing. Well suited to highly targeted marketing.

14. 12-14 Preselling Selling Post- Consumption Post- Consumption Consuming Marketers View Communications as the Management of the Customer Relationship Over Time Through the Following Stages: A View of the Communications Process

15. 12-15 Push vs. Pull Promotion Strategy

16. 12-16 Advertising Advertising has been used for centuries. Advertising has been used for centuries. U.S. advertisers spend more than $237 billion each year; worldwide spending approaches $470 billion. U.S. advertisers spend more than $237 billion each year; worldwide spending approaches $470 billion. Advertising is used by: Advertising is used by: –Business firms –Nonprofit organizations –Professionals –Social agencies –Government

17. 12-17 What is Advertising? Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.

18. 12-18 Major Decisions in Advertising

19. 12-19 Informative Advertising Inform Consumers or Build Primary Demand Comparative Advertising Compares One Brand to Another Persuasive Advertising Build Selective Demand Reminder Advertising Keeps Consumers Thinking About a Product Advertising Objective Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time Setting Advertising Objectives

20. 12-20 Setting the Advertising Budget Based on What the Company Thinks it Can Afford Objective-and-Task Set Objectives, Determine Tasks to Achieve Objectives, Sum of Task Costs Equals Budget Objective-and-Task Set Objectives, Determine Tasks to Achieve Objectives, Sum of Task Costs Equals Budget Based on a Percentage of Current or Forecasted Sales Set Budget to Match Competitors

21. 12-21 Selecting the Advertising Media Advertising Strategy Consists of Two Major Elements and Companies are Realizing the Benefits of Planning These Two Elements Jointly. Developing Advertising Strategy Creating the Advertising Messages

22. 12-22 The Message Strategy Identify Customer Benefits Develop Compelling Creative Concept The “Big Idea” Advertising Appeals Should Be Meaningful, Believable, & Distinctive

23. 12-23 Typical Message Execution Styles Testimonial Evidence Scientific Evidence Lifestyle Technical Expertise Fantasy Musical Message Execution

24. 12-24 Message Execution Choose a tone Choose a tone Use memorable, attention-getting words Use memorable, attention-getting words Choose correct format elements Choose correct format elements –Illustration –Headline –Copy

25. 12-25 Selecting Advertising Media –Percentage of people exposed to ad –Number of times a person is exposed to ad –The qualitative value of a message exposure through a given medium

26. 12-26 Choosing Media Type Factors to consider: Factors to consider: –Media habits of target consumers –Nature of the product –Type of message –Cost –Media vehicles

27. 12-27 Deciding on Media Timing Must decide how to schedule the advertising over the course of a year Must decide how to schedule the advertising over the course of a year –Follow seasonal pattern –Oppose seasonal pattern –Same coverage all year Choose the pattern of the ads Choose the pattern of the ads –Continuity –Pulsing

28. 12-28 (Copy Testing) Is the Ad Communicating Well? (Copy Testing) Is the Ad Communicating Well? Advertising Program Evaluation Is the Ad Increasing Sales? Is the Ad Increasing Sales? Evaluating Advertising

29. 12-29 Other Advertising Considerations Small Companies: Sales Departments Large Companies: Advertising Departments Advertising Agency: A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs.

30. 12-30 International Advertising Decisions Advertising Media Differ Considerably in Availability and Cost Comparison Ads Not Acceptable in All Countries Programs Must be Matched to Local Cultures and Customs

31. 12-31 Advertising to the World’s Consumers RANKCOUNTRY PER-CAPITA MEDIA SPENDING* 1Japan$2,137 2United States 1,861 3France 1,845 4Germany 1,593 5Netherlands 1,517 6Denmark 1,504 7Belgium 1,357 8United Kingdom 1,286 REACHING PEOPLE (media spending per capita for top-ranking and bottom ranking countries, 1996)

32. 12-32 continued RANKCOUNTRY PER-CAPITA MEDIA SPENDING* 9Hong Kong$1,180 10Australia 1,166 126Tanzania $4.10 127Vietnam 2.92 128Nigeria 2.77 129China 2.62 130Laos 0.41 *Author’s estimates based on various sources.

33. 12-33 Commercials Shown Per Hour 57 40 38 36 34 33 30 16 0102030405060 United Kingdom Australia Thailand Mexico France China Philippines Turkey

34. 12-34 What is Sales Promotion? Sales Promotion Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Offers Reasons to Buy NOW.

35. 12-35 Rapid Growth of Sales Promotion Sales promotion can take the form of consumer, business, trade, or sales force promotions. Sales promotion can take the form of consumer, business, trade, or sales force promotions. Rapid growth in the industry has been achieved because: Rapid growth in the industry has been achieved because: –Product managers are facing more pressure to increase their current sales –Companies face more competition –Advertising efficiency has declined

36. 12-36 Sales Promotion Objectives Consumer Promotions: increase short- term sales or help build long-term market share. Consumer Promotions: increase short- term sales or help build long-term market share. Trade Promotions: get retailers to: Trade Promotions: get retailers to: –carry new items and more inventory –advertise products –give products more shelf space –buy ahead Sales Force: getting more sales support. Sales Force: getting more sales support. In general, sales promotion should build long-term customer relationship building. In general, sales promotion should build long-term customer relationship building.

37. 12-37 Coupons Price Packs “Cents-Off Deals” Price Packs “Cents-Off Deals” Premiums Offers a trial amount of a product Savings when purchasing specified products Refund of part of the purchase price by mail Reduced prices marked on the label or package by producer Goods offered free or low cost as an incentive to buy a product Articles imprinted with an advertiser’s name given as gifts Consumer Sales Promotion Tools

38. 12-38 Patronage Rewards Point-of-Purchase Promotions Point-of-Purchase Promotions Contest Sweepstakes Games Cash or other award offered for regular use of a product or service Displays or demonstrations at the point of purchase or sale Consumers submit an entry to be judged by a panel Consumers submit their names for a drawing Consumers receive something each time they buy which may help them win a prize Consumer Sales Promotion Tools

39. 12-39 Trade Promotion Persuade resellers to carry a brand Give a brand shelf space Promote brand in advertising Push brand to customers Push Money Specialty Advertising Items Objectives Tools

40. 12-40 Business Promotion Generate business leads Stimulate purchases Reward customers Motivate salespeople Objectives Tools

41. 12-41 Decide on the Size of the Incentive Set Conditions for Participation Evaluate the Program Decide How to Promote and Distribute the Promotion Program Decide How to Promote and Distribute the Promotion Program Decide on the Length of the Program Developing the Sales Promotion Program

42. 12-42 What is Public Relations? Public Relations Involves 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.

43. 12-43 Public Relations Public relations is used to promote products, people, places, ideas, activities, organizations, and even nations. New York City turned its image around when its “I Love New York!” campaign took root, bringing millions more tourists to the city.

44. 12-44 Product Publicity Investor Relations Development Public Relations Departments May Perform Any or All of the Following Functions: Major Public Relations Functions

45. 12-45 Speeches Special Events Audiovisual Materials Corporate Identity Materials Public Service Activities Major Public Relations Tools

46. 12-46 Choosing the Public Relations Messages and Vehicles Choosing the Public Relations Messages and Vehicles Implementing the Public Relations Plan Evaluating Public Relations Results Major Public Relations Decisions