1. Instructor: Amir Ekhlassi
(7) Integrated Marketing Communications: Advertising, Sales Promotion, and Public Relations
Instructor: Amir Ekhlassi

2. The Marketing Communication Mix
Advertising: any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Sales promotion: short-term incentives to encourage the purchase or sale of a product or service.
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.
©Compiled by: Amir Ekhlassi

3. The Marketing Communication Mix (cont’d)
Personal selling: personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.
Direct Marketing: direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
©Compiled by: Amir Ekhlassi

4. ©Compiled by: Amir Ekhlassi
Advertising
Advertising can reach masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times.
Beyond its reach, large-scale advertising says something positive about the seller’s size, popularity, and success.
Because of advertising’s public nature, consumers tend to view advertised products as more legitimate.
©Compiled by: Amir Ekhlassi

5. ©Compiled by: Amir Ekhlassi
Advertising (cont’d)
Advertising is also very expressive – it allows the company to dramatize its products through the artful use of visuals, print, sound, and color.
On the one hand, advertising can be used to build up a long-term image for a product (such as Coca-Cola ads). On the other hand, advertising can trigger quick sales (as when sears advertises a weekend sale).
©Compiled by: Amir Ekhlassi

6. ©Compiled by: Amir Ekhlassi
Advertising (cont’d)
Advertising also has some shortcomings:
Advertising is impersonal and cannot be as directly persuasive as can company salespeople.
Advertising can carry on only a one-way communication with the audience.
Advertising can be very costly.
©Compiled by: Amir Ekhlassi

7. Major decision in advertising
Message decisions
Message strategy
Message execution
Objectives setting
Communication obj
Sales obj
Budget decisions
Affordable approach
Percent of sales
Competitive parity
Objective & task
Campaign evaluation
Communication
Impact
Sales impact
Media decisions
Reach, frequency, impact
Major media types
Specific media vehicles
Media timing
©Compiled by: Amir Ekhlassi

8. 1. Setting advertising objectives
An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time.
Advertising objectives can be classified by primary purpose:
Informative advertising (build primary demand, introducing new product)
Persuasive advertising (build selective demand, comparative advertising: Directly or Indirectly)
Reminder advertising (For mature products)
©Compiled by: Amir Ekhlassi

9. 2. Setting the advertising budget
It depends! One of the Hardest Marketing Decisions is How Much to Spend on Promotion.
Affordable
Objective-and-Task
Percentage of Sales
Competitive-Parity
©Compiled by: Amir Ekhlassi

10. 2. Setting the advertising budget (cont’d)
Affordable method: setting the promotion budget at the level management thinks the company can afford. (SMEs often use this method, overspending or underspending)
Percentage-of-sales method: setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.(it wrongly views sales as the cause of promotion rather than as the result)
©Compiled by: Amir Ekhlassi

11. 2. Setting the advertising budget (cont’d)
Competitive – parity method: setting the promotion budget to match competitors’ outlays.
Objective-and-task method: developing the promotion budget by:
Defining specific objectives
Determining the tasks that must be performed to achieve these objectives
Estimating the costs of performing these tasks
©Compiled by: Amir Ekhlassi

12. 3. Creating the advertising message
The first step in creating effective message is to decide what general message will be communicated to consumers (message strategy)
Developing an effective message strategy begins with identifying customer benefits that can be used as advertising appeals.
Ideally, advertising message strategy will follow directly from the company’s broader positioning strategy.
©Compiled by: Amir Ekhlassi

13. 3. Creating the advertising message (cont’d)
The advertiser must next develop a compelling creative concept – or “big idea” that will bring the message strategy to life in a distinctive and memorable way.
The creative concept may emerge as a visualization, a phrase, or a combination of the two.
Advertising appeals should have three characteristics:
Meaningful
Believable
Distinctive
Watch: it keeps accurate time
Swatch: style & fashion
Rolex: Luxury & Status
Hane: “buy cheap socks and you will pay through the toes”
©Compiled by: Amir Ekhlassi

14. 3. Creating the advertising message (cont’d)
Any message can be presented in different execution styles:
Slice of life (one or more people using the product in a normal setting)
Lifestyle
Fantasy (Gap : Dream)
Mood or image (Beauty, Love, Serenity)
Musical (Jingle)
Personality symbol
Technical expertise
Scientific evidence (Crest)
Testimonial evidence or endorsement (highly believable or likable)
©Compiled by: Amir Ekhlassi

15. 4. Selecting advertising media
The major steps in media selection are:
Deciding on reach, frequency, and impact
Choosing among major media types
Selecting specific media vehicles
Deciding on media timing
Illustration
Headline
The main block of text
©Compiled by: Amir Ekhlassi

16. 4. Selecting advertising media (cont’d)
Deciding on reach, frequency, and impact:
Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.
Frequency is a measure of how many times the average person in the target market is exposed to the message.
Impact is the qualitative value of a message exposure through a given medium.
©Compiled by: Amir Ekhlassi

17. 4. Selecting advertising media (cont’d)
Choosing among major media types:
The media habits of target consumer
The nature of the product (fashion is best advertised in color magazine, automobile performance is best demonstrated on TV)
Different types of messages
Cost
©Compiled by: Amir Ekhlassi

18. 4. Selecting advertising media (cont’d)
In selecting media vehicles, the media planner should consider:
Costs against the media vehicle’s audience quality (Baby lotion in New Parents not in Gentlemen’s Quarterly)
Audience attention
The vehicle’s editorial quality (wall street, time)
©Compiled by: Amir Ekhlassi

19. 4. Selecting advertising media (cont’d)
Deciding on media timing:
Continuity
Pulsing
Hallmark: Seasonal Ad)
The idea is to advertise heavily for a short period to build awareness that carries over to the next ad period.
©Compiled by: Amir Ekhlassi

20. 5. Evaluation advertising
The advertising program should evaluate both the communication effects and the sales effects of advertising regularly.
Measuring the communication effects of an ad – copy testing – tells whether the ad is communicating well.
The sales effect of advertising are often harder to measure than the communication effects. Sales are affected by many factors besides advertising – such as product features, price, and availability.
©Compiled by: Amir Ekhlassi

21. Sales promotion

22. ©Compiled by: Amir Ekhlassi
Sales promotion
Sales promotion consists of short-term incentives to encourage purchase or sales of a product or service.
Whereas advertising and personal selling offer reasons to buy a product or service, sales promotion offers reasons to buy now.
Sales promotion are targeted toward:
Final buyers (consumer promotions)
Retailers and wholesalers (trade promotions)
Business customers (business promotions)
Member of the sales force (sales force promotion)
©Compiled by: Amir Ekhlassi

23. Sales promotion (cont’d)
Several factors have contributed to the rapid growth of sales promotion:
Inside the company, product managers face greater pressures to increase their current sales
Externally, the company faces more competition and competing brands are less differentiated
advertising efficiency has declined because of rising costs, media clutter, and legal restraints
Consumers have become more deal oriented and ever-larger retailers are demanding more deals from manufacturers
©Compiled by: Amir Ekhlassi

24. Sales promotion (cont’d)
Sales promotion objectives
Consumer promotions
Increase short-term sales
Trade promotions
Getting retailers to carry new items
more inventory
more shelf space
to buy ahead
Sales force promotion
More sales force support
©Compiled by: Amir Ekhlassi

25. Sales promotion (cont’d)
Consumer promotion tools
Sample (most effective but most expensive, Ex: P&G
Coupons
Cash refund (rebate): price reduction occurs after purchase rather than at the retail outlet
Price packs (cents-off deals)
Premiums
Advertising specialties (63% of consumers in the USA)
Patronage reward (Airlines, Baskin-Robbins)
Point-of-purchase
Contest
Sweepstakes
Games
©Compiled by: Amir Ekhlassi

26. Sales promotion (cont’d)
Trade promotion tools
Allowance
Advertising allowance
Display allowance
Free goods
Push money: cash or gifts to dealers or their sales forces to “push” the manufacturers’ goods.
©Compiled by: Amir Ekhlassi

27. PR PR PR PR PR PR PR
Public Relations (PR)

28. ©Compiled by: Amir Ekhlassi
Public relations
Bill Gates once famously said, “If I was down to my last dollar , I ‘d spend it on public relations.”
The role of PR in a company’ marketing strategy is key in managing the image and reputation of businesses and basically there are 2 distinct approaches a PR consultant may use:
Generating positive news stories that build the profile and increase awareness of brands, business and individuals.
Responding to crisis, using the media to negate the impact of “bad press”.
©Compiled by: Amir Ekhlassi

29. ©Compiled by: Amir Ekhlassi
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.
PR departments may perform any or all of the following functions:
Press relations or press agentry
product publicity
Public affairs (building and maintaining national or local community relations)
Lobbying
Investor relations
Development
I New York
©Compiled by: Amir Ekhlassi

30. Public relations (cont’d)
Major public relations tools:
News
Speeches
Special events
Written materials
Audiovisual materials
Corporate identity materials (Uniformity, company cars and trucks, business cards, signs, logos)
Public service activities(companies can improve public goodwill by contributing money & time to public service activities. )
Web site (Ex: in thanksgiving , 550,000 viewers)
©Compiled by: Amir Ekhlassi

31. Thank You For Your Patience & Attention