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© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.
16-16-11McGraw-Hill/Irwin
ChapterSixteen
Promoting Products Using Promoting Products Using Interactive and Integrated Interactive and Integrated Marketing CommunicationsMarketing Communications
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Change &Change & Promotion MixPromotion Mix
Definition- PromotionDefinition- Promotion Promotion MixPromotion Mix Integrated Marketing Integrated Marketing
Communication (IMC)Communication (IMC) ChangeChange
TechnologyTechnology Build RelationshipsBuild Relationships InteractivityInteractivity
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Factors That Affect Factors That Affect
The Promotion MixThe Promotion Mix Type of ProductType of Product Stage in the Stage in the
Product Life CycleProduct Life Cycle Target Market Target Market
CharacteristicsCharacteristics Actions of Actions of
CompetitorsCompetitors Available FundsAvailable Funds
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Components of Components of Integrated MarketingIntegrated Marketing
AdvertisingAdvertising Corporate Corporate
CommunicationCommunication Crisis Crisis
CommunicationCommunication E-CommerceE-Commerce Event Event
MarketingMarketing Internal Internal
CommunicationCommunication
Issues Issues ManagementManagement
MarketingMarketing MultimediaMultimedia Public RelationsPublic Relations Sales PromotionSales Promotion Strategic Strategic
PlanningPlanning Web DesignWeb Design
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Objectives of Objectives of Integrated Integrated MarketingMarketing
Build Brand EquityBuild Brand Equity Provide InformationProvide Information Manage Demand & Manage Demand &
Build SalesBuild Sales Differentiate ProductsDifferentiate Products Influence Perceptions, Influence Perceptions,
Attitudes, & Buyer Attitudes, & Buyer BehaviorBehavior
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Promotional MixPromotional Mix
Personal selling:Personal selling: Direct salesDirect sales
Non-personal Non-personal selling:selling:
AdvertisingAdvertising Sales promotionSales promotion
Coupons, rebates, Coupons, rebates, samples, premiums, samples, premiums, contests, sweepstakes, contests, sweepstakes, specialty adv., POP specialty adv., POP (trade-oriented adv.), (trade-oriented adv.), trade showstrade shows
Direct marketingDirect marketing Public relationsPublic relations
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Figure 16.3 Advertising Expenditure by Figure 16.3 Advertising Expenditure by MediaMedia
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Advertising Advertising TodayToday
Persuasive Persuasive CommunicationCommunication
InfomercialsInfomercials
InternetInternet
Global AdvertisingGlobal Advertising
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Product PlacementProduct Placement Reese's Pieces, Reese's Pieces, ETET (1982) (1982) Pitch your weakness, not your strength:Pitch your weakness, not your strength:
Budget Rent-a-Truck, Budget Rent-a-Truck, Home AloneHome Alone (1990) (1990) Selling high:Selling high: Red Stripe beer, Red Stripe beer, The FirmThe Firm
(1993).(1993). Don't be afraid to laugh at yourself:Don't be afraid to laugh at yourself: Junior Junior
Mints, Seinfeld (1990s) Mints, Seinfeld (1990s) Look, we're placing products!Look, we're placing products! Pizza Hut Pizza Hut
pizza and Nuprin pain relievers, pizza and Nuprin pain relievers, Wayne's Wayne's WorldWorld (1992) (1992)
If you can, get it in writing:If you can, get it in writing: Reebok, Reebok, Jerry Jerry MaguireMaguire (1996) (1996)
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Product PlacementProduct Placement
Too much is enough, 007: Visa card, Too much is enough, 007: Visa card, Avis car rentals, BMW cars and Avis car rentals, BMW cars and motorcycles, Smirnoff vodka, motorcycles, Smirnoff vodka, Heineken beer, Omega watches, Heineken beer, Omega watches, Ericsson cell phones, L'Oreal Ericsson cell phones, L'Oreal makeup, makeup, Tomorrow Never DiesTomorrow Never Dies (1997)(1997)
The last stronghold has been The last stronghold has been violated: Chanel perfume, violated: Chanel perfume, AnastasiaAnastasia (1997)(1997)
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Century’sCentury’s Top Ad JinglesTop Ad Jingles
““You deserve a You deserve a break today”break today”
““Be all you can Be all you can be”be”
““Pepsi-Cola hits Pepsi-Cola hits the spot”the spot”
““Mm Mm good!”Mm Mm good!” ““See the USA in See the USA in
your Chevrolet”your Chevrolet”
““I wish I were an I wish I were an Oscar Mayer wiener”Oscar Mayer wiener”
““Double your Double your pleasure, double pleasure, double your fun”your fun”
““Winston tastes Winston tastes good like a cigarette good like a cigarette should”should”
““It’s the real thing”It’s the real thing” ““A little dab’ll do yaA little dab’ll do ya””
Source: Source: Advertising Age
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Favorite Budweiser Favorite Budweiser Advertising SlogansAdvertising Slogans
18991899
King ofKing of
Bottled BeersBottled Beers
America’sAmerica’s
Social Social
CompanionCompanion
19371937 19431943
Food’s Food’s Favorite Favorite
CompanioCompanionn
19471947
It lives with It lives with good taste good taste everywhereeverywhere
19531953
When you When you know your know your beer… it’s beer… it’s
bound to be bound to be BudBud
19711971
When you When you say say
Budweiser, Budweiser, you’ve said it you’ve said it
allall
19931993
Proud to Proud to be your be your
BudBud
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Do Blatantly Sexy Do Blatantly Sexy Ads Turn You Off?Ads Turn You Off?
4
5145
4
72
24
01020304050607080
Strongly/SomewhatAgree
Strongly/SomewhatDisagree
Don't Know
Per
cen
t
Men Women
Source: Source: USA Today
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Amount Spent On...Amount Spent On...
Internet Advertising Internet Advertising = =
$1.92 Billion$1.92 Billion
Outdoor Advertising Outdoor Advertising ==
$1.58 Billion$1.58 Billion
Source: Source: CIO Web Business, 1/1/1999
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Internet Internet Advertising- Advertising-
20042004 Will reach $22 billion in the U.S. Will reach $22 billion in the U.S. The rest of world will spend The rest of world will spend
$10.8 billion.$10.8 billion. $27 billion (10% of all U.S. ad $27 billion (10% of all U.S. ad
spending) will be siphoned from spending) will be siphoned from traditional mediatraditional media
Hardest hit: newspapers and Hardest hit: newspapers and direct maildirect mail
Source: Source: CIO Web Business, 10/1/1999
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Web Advertising Web Advertising ChoicesChoices
Banner AdsBanner Ads Skyscrapers Skyscrapers
Bulky BoxesBulky Boxes Buttons and Big Buttons and Big
ImpressionsImpressions E-mailE-mail SponsorshipsSponsorships Pop-up AdsPop-up Ads
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Dot-Com ProfitsDot-Com Profits
EbayEbay FTD.comFTD.com Omahasteaks.comOmahasteaks.com
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Steps in Personal Steps in Personal SellingSelling
Prospect/QualifyProspect/QualifyProspect/QualifyProspect/Qualify
PreapproachPreapproachPreapproachPreapproach
ApproachApproachApproachApproach
PresentatioPresentationn
PresentatioPresentationn
ObjectionsObjectionsObjectionsObjections
CloseCloseCloseClose
Follow-upFollow-upFollow-upFollow-up
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Public Public RelationsRelations
StepsSteps ListenListen
Change/Change/DevelopDevelop
InformInform
PublicityPublicity FreeFree More Effective More Effective
Than AdThan Ad BelievableBelievable No ControlNo Control No RepetitionNo Repetition
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PR in Not–for-ProfitPR in Not–for-Profit 3-26-03 WSJ 3-26-03 WSJ Military battled more than the Military battled more than the
enemy. Competing for valuable enemy. Competing for valuable press attention that some press attention that some believe can later pay off with believe can later pay off with fatter fatter
budget allocations in Congress. budget allocations in Congress. The Army with over 400 The Army with over 400 embedded journalists appears embedded journalists appears to have won the war. to have won the war.
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Sales PromotionSales Promotion Internal & ExternalInternal & External SamplingSampling Word-Of-MouthWord-Of-Mouth Viral Viral
Marketing/SwagMarketing/Swag TechnologyTechnology TestimonialsTestimonials
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Visual MerchandisingVisual Merchandising To attract customers into the storeTo attract customers into the store
Awareness of merchandise & trends, Awareness of merchandise & trends, trade up, tie-in salestrade up, tie-in sales
Change every 2 weeks, 4-6 wks. to planChange every 2 weeks, 4-6 wks. to plan 30% of shoppers have plans to buy30% of shoppers have plans to buy 45% want to buy but have no idea 45% want to buy but have no idea
whatwhat 80% of buying is impulse80% of buying is impulse
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Tips onTips on Issuing CouponsIssuing Coupons
Coupons can be Coupons can be used as a “Thank used as a “Thank you for buying” or a you for buying” or a “Stop and try us.”“Stop and try us.”
The value must be The value must be enough to attract enough to attract customers.customers.
Use coupon Use coupon promotions promotions sparingly.sparingly.
Get professional Get professional help to get help to get maximum maximum exposure.exposure.
Color-code your Color-code your coupons for coupons for different groups different groups that use them.that use them.
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Celebrity Celebrity EndorsersEndorsers
CelebrityCelebrityCatherine Zeta-Catherine Zeta-
JonesJones
Morgan FairchildMorgan Fairchild
Yao MingYao Ming
ProductProduct(s)(s)T-MobileT-Mobile
Old NavyOld Navy
Pepsi, VisaPepsi, Visa
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Top Sports Top Sports EndorsersEndorsers
AthleteAthleteMicheal JordanMicheal Jordan
Tiger WoodsTiger Woods
Arnold PalmerArnold Palmer
Andre AgassiAndre Agassi
Lebron James Lebron James
EndorsementsEndorsements$ 47.0 Million$ 47.0 Million
$ 24.0 Million$ 24.0 Million
$ 16.0 Million$ 16.0 Million
$ 14.0 Million$ 14.0 Million
$ 90.0 Million $ 90.0 Million (2003) (2003) Source:Source: Fortune Magazine
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Promotional Promotional StrategiesStrategies
Push StrategyPush Strategy
Pull StrategyPull Strategy
PromotioPromotionn
DistributionDistribution
Retail Retail StoreStore
CustomerCustomer
PromotioPromotionn