1.1 introduction to promotion and integrated marketing communications chapter 1:
TRANSCRIPT
1.1
INTRODUCTIONINTRODUCTIONto to
PROMOTIONPROMOTIONand and
INTEGRATED MARKETING INTEGRATED MARKETING COMMUNICATIONSCOMMUNICATIONS
Chapter 1:Chapter 1:
1.2
Relationship Between Promotion, Relationship Between Promotion, the Promotional Mix, and the Promotional Mix, and Integrated Marketing CommunicationsIntegrated Marketing Communications
PROMOTIONPROMOTION Communication Process in MarketingCommunication Process in Marketing Used to Create a Favorable Predisposition Toward:Used to Create a Favorable Predisposition Toward:
Brand of ProductBrand of Product ServiceService IdeaIdea PersonPerson
PROMOTIONAL MIXPROMOTIONAL MIX Blend of Communications Tools and Activities Used by a Blend of Communications Tools and Activities Used by a
FirmFirm Carries out the Promotion ProcessCarries out the Promotion Process Communicates Directly with Target MarketsCommunicates Directly with Target Markets
1.3
Relationship Between Promotion, Relationship Between Promotion, the Promotional Mix, and the Promotional Mix, and Integrated Marketing Communications Integrated Marketing Communications (con’t)(con’t)
INTEGRATED MARKETING COMMUNICATIONS (IMC)INTEGRATED MARKETING COMMUNICATIONS (IMC) Manages the Processes and Activities of Using Promotional ToolsManages the Processes and Activities of Using Promotional Tools Unified WayUnified Way Produces a Synergistic Communications EffectProduces a Synergistic Communications Effect
1.4
Relationship Between Promotion, Relationship Between Promotion, the Promotional Mix, and the Promotional Mix, and Integrated Marketing Communications Integrated Marketing Communications (con’t)(con’t)
Promotion:Promotion: ProcessProcess
Promotion Mix:Promotion Mix: ToolsTools
IMC:IMC: Management of the Management of the Promotion MixPromotion Mix
1.5
The The PromotionalPromotional Mix Mix
ADVERTISINGADVERTISING Paid Mass Media Attempt to PersuadePaid Mass Media Attempt to Persuade Complex System of Strategic Planning and Complex System of Strategic Planning and
Creative GeniusCreative Genius
INTERNET ADVERTISINGINTERNET ADVERTISING Electronic Mail (e-mail)Electronic Mail (e-mail) Internet Relay Chat (IRC)Internet Relay Chat (IRC) UsenetUsenet World Wide Web (www)World Wide Web (www)
SALES PROMOTIONSALES PROMOTION Use of Incentives to Generate a Specific Short-Term ResponseUse of Incentives to Generate a Specific Short-Term Response
Household ConsumerHousehold Consumer Trade BuyerTrade Buyer Business BuyerBusiness Buyer
1.6
Example of Mass Media Advertising
1.7
Example of Sales Promotion
1.8
DIRECT MARKETING AND e-COMMERCEDIRECT MARKETING AND e-COMMERCE Distinguished From Other Primary Promotional Tools Distinguished From Other Primary Promotional Tools
in 3 Waysin 3 Ways Uses a Combination of MediaUses a Combination of Media Designed to Elicit a Direct ResponseDesigned to Elicit a Direct Response Transactions Can Occur AnywhereTransactions Can Occur Anywhere
E-Commerce is Another Form of Direct MarketingE-Commerce is Another Form of Direct Marketing Business is Conducted Between Buyers and Sellers Business is Conducted Between Buyers and Sellers
Using Electronic Exchange MediaUsing Electronic Exchange Media
The Promotional Mix The Promotional Mix (con’t)(con’t)
1.9
The Promotional Mix The Promotional Mix (con’t)(con’t)
SPONSORSHIPSPONSORSHIP Funding an EventFunding an Event Creating an Event to Showcase a Firm’s BrandCreating an Event to Showcase a Firm’s Brand
POINT-OF-PURCHASEPOINT-OF-PURCHASE Materials Used in Retail Setting to Attract Shoppers’ to a Materials Used in Retail Setting to Attract Shoppers’ to a
Company’s BrandCompany’s Brand
SUPPORTIVE COMMUNICATIONSSUPPORTIVE COMMUNICATIONS Used to Target Audiences Outside Mainstream Media or Used to Target Audiences Outside Mainstream Media or
Electronic CommunicationsElectronic Communications
1.10
The Promotional Mix The Promotional Mix (con’t)(con’t)
PUBLIC RELATIONSPUBLIC RELATIONS Communication that can Foster Goodwill Between a Firm Communication that can Foster Goodwill Between a Firm
and its Many Constituent Groupsand its Many Constituent Groups
PERSONAL SELLINGPERSONAL SELLING Presentation of Information about a Firm’s Products or Presentation of Information about a Firm’s Products or
Services by One Person to Another Person or to a Small Services by One Person to Another Person or to a Small Group of PeopleGroup of People
1.11
Personal Selling is the Most Important Variable in the Promotional Mix of Many Organizations
1.12
The Promotional Mix The Promotional Mix (con’t)(con’t)
ROLE OF PROMOTION IN MARKETING STRATEGYROLE OF PROMOTION IN MARKETING STRATEGY Must Have Marketing Strategy Decisions about Products Must Have Marketing Strategy Decisions about Products
(Brand)(Brand) Branding – Established Name, Term, Symbol or Design Branding – Established Name, Term, Symbol or Design
that Identifies for Consumers that a Product is being that Identifies for Consumers that a Product is being Offered by a Particular Seller and Clearly Distinguished Offered by a Particular Seller and Clearly Distinguished the Product of that Seller from those Offered by the Product of that Seller from those Offered by CompetitorsCompetitors
1.13
The Promotional Mix The Promotional Mix (con’t)(con’t)
ROLE OF PROMOTION IN MARKETING STRATEGY (con’t)ROLE OF PROMOTION IN MARKETING STRATEGY (con’t) Role of Promotion in Marketing Strategy Affects 3 Key Role of Promotion in Marketing Strategy Affects 3 Key
Aspects of Decision Making with Respect to BrandsAspects of Decision Making with Respect to Brands Creating the Marketing MixCreating the Marketing Mix Achieving Effective Market Segmentation, Product Achieving Effective Market Segmentation, Product
Differentiation, and PositioningDifferentiation, and Positioning Enhancing Revenues and ProfitsEnhancing Revenues and Profits
1.14
The Promotional Mix The Promotional Mix (con’t)(con’t)
ROLE OF PROMOTION IN THE MARKETING MIXROLE OF PROMOTION IN THE MARKETING MIX Assumes a Wide Range of Responsibilities Assumes a Wide Range of Responsibilities
Related to:Related to: ConceptionConception PricingPricing Distribution BrandsDistribution Brands
Product (Brand)Product (Brand)
1.15
The Promotional Mix The Promotional Mix (Con’t)(Con’t)
ROLE OF PROMOTION IN THE MARKETING MIX (con’t)ROLE OF PROMOTION IN THE MARKETING MIX (con’t) Promotion Affects the Product Area of the Promotion Affects the Product Area of the
Marketing MixMarketing Mix Information and PersuasionInformation and Persuasion Introduction of New Brand or Brand ExtensionsIntroduction of New Brand or Brand Extensions Building and Maintaining Brand Loyalty Building and Maintaining Brand Loyalty
Among ConsumersAmong Consumers Building and Maintaining Brand Loyalty Building and Maintaining Brand Loyalty
Within the TradeWithin the Trade
1.16
One Role for Promotion is to Help Introduce Brand ExtensionsLike this Extension of Jell-O intothe Yogurt Market
1.17
The Promotional Mix The Promotional Mix (con’t)(con’t)
ROLE OF PROMOTION IN THE MARKETING MIX (con’t)ROLE OF PROMOTION IN THE MARKETING MIX (con’t) PricePrice
Effects the Consumer MarketEffects the Consumer Market Effects the Trade MarketEffects the Trade Market
DistributionDistribution Consumer Access to BrandsConsumer Access to Brands Securing Trade DistributionSecuring Trade Distribution
1.18
The Role of Promotion in Effective Market The Role of Promotion in Effective Market Segmentation, Differentiation and PositioningSegmentation, Differentiation and Positioning
Promotion is Important in Helping to Promotion is Important in Helping to Execute These StrategiesExecute These Strategies Market SegmentationMarket Segmentation Product DifferentiationProduct Differentiation PositioningPositioning
ExternalExternal InternalInternal
1.19
The Role of Promotion in Revenue and ProfitsThe Role of Promotion in Revenue and Profits
Sales OccurSales Occur Brand has Well-Conceived Marketing MixBrand has Well-Conceived Marketing Mix Complete Marketing MixComplete Marketing Mix Good PromotionGood Promotion
Large-Scale Demand /Production ProducesLarge-Scale Demand /Production Produces Cost to Produce Item is ReducedCost to Produce Item is Reduced Known as Economies of ScaleKnown as Economies of Scale
Brand Loyalty at Any CostBrand Loyalty at Any Cost Firm Raises PricesFirm Raises Prices Known as Inelasticity of DemandKnown as Inelasticity of Demand
1.20
Promotional Tools HelpIncrease Brand Loyalty
1.21
Integrated Marketing CommunicationsIntegrated Marketing Communications
FACTORS CONTRIBUTING TO IMC’s RISING PROMINENCEFACTORS CONTRIBUTING TO IMC’s RISING PROMINENCE Fragmentation of MediaFragmentation of Media Better Audience Assessment Through Database TechnologyBetter Audience Assessment Through Database Technology Consumer EmpowermentConsumer Empowerment Increased Advertising ClutterIncreased Advertising Clutter Shifting Channel PowerShifting Channel Power Desire of Greater AccountabilityDesire of Greater Accountability
1.22
Promotion and IMCHelp Cut Through the Clutter of Advertising
1.23
Participants in IMC Management
Marketing Organization•Marketing Plan•Goal & Objectives•Customer/Prospect Databases
Marketing Organization•Marketing Plan•Goal & Objectives•Customer/Prospect Databases
Specialized Promotion Organizations•Media Organizations•Event Management Firms•Web Site Designers•Sales Promotions Agencies•Direct Marketing Agencies•Public Relations Firms•P-O-P Agencies & Designers
Specialized Promotion Organizations•Media Organizations•Event Management Firms•Web Site Designers•Sales Promotions Agencies•Direct Marketing Agencies•Public Relations Firms•P-O-P Agencies & Designers
Advertising Agency•Research•Creative Strategies•Production•Message Placement
Advertising Agency•Research•Creative Strategies•Production•Message Placement
Internet Advertising (Chapter 9)
Internet Advertising (Chapter 9)
Advertising (Chapter 8)
Advertising (Chapter 8)
Sales Promotions(Chapter 11)
Sales Promotions(Chapter 11)
IMC ManagementIMC Management Personal Selling(Chapter 14)
Personal Selling(Chapter 14)
Direct Marketing e-Commerce (Chapter 10)
Direct Marketing e-Commerce (Chapter 10)
Sales PromotionsP-O-P
Supportive(Chapter 12)
Sales PromotionsP-O-P
Supportive(Chapter 12)
Public Relations(Chapter 13)
Public Relations(Chapter 13)