adv 435 ch 8 imc

ADV 435

Chapter 11

IMC

INTEGRATED MARKETING

COMMUNICATIONS Definition: The process of

• Planning

• Creating

• Integrating

• Implementing

Communications elements i.e.

• Advertising

• Sales Promotion

• PR/Events

Delivered to brand’s customers/prospects


COMMUNICATIONS

Goal = Consistent message and feel

• Consistent does NOT mean

“look alike”

• Consistent DOES mean

“Reflecting desired experience with brand”


COMMUNICATIONS Goal = Consistent message and feel

Examples:

•Geico: Gecko greets you online

•Target: Bulls eye logo web, credit card

•Aflac: Duck appears somewhere

•Pepsi: Logos, bubbles, fun


COMMUNICATIONS Emphasis (budget) is function of:

•Growth Potential

• Sales Potential


COMMUNICATIONS Communications Targets:

•Brand Loyals

• Brand Switchers

• Competitors Brand Loyals


COMMUNICATIONS Brand Loyals:

• Best Customers

• Buy Largest Quantities or most often

• Do NOT switch if unavailable

• Goal = RETAIN


COMMUNICATIONS Brand Switchers:

• Your brand AND others

• Swayed by:

• Promos

• Incentives

• Just a change

• Goal = Build Volume


COMMUNICATIONS Competitors Brand Loyals:

• Very Challenging

• Goal = Initiate trial & some

conversion:

• First to “Switchers”

• Then to your “Brand Loyals”

SALES PROMOTION

DEFINITION = Incentives of reduced price or

added value

•Tends to “buy” share of market

•Short term impact

• May increase consumer expectations for

more

• Why pay full price…just wait for coupons

• Should reinforce ad message

• ergo: “Think like a retailer & act like a brand”

SALES PROMOTION

“Think like a retailer & act like a brand”

• delicate balance

• building sales vs. image

• forces annual repeat same period

SALES PROMOTION

Types:

•Consumer “Pull”

• Trade “Push”

SALES PROMOTION

Consumer Promotions:

• Samples - Sweepstakes

• Coupons - Refunds

• Rebates - Bonus Packs

• Premiums - Event Sponsorships

• Contests - Price-offs (days,

weeks, months)

• Games

SALES PROMOTIONTrade Promotions:

•Slotting allowances – $$ space/facings

• Dealer Contests ($, gifts, trips)

• Co-op Ad Support

• Trade Show Specials

• Spiffs (cash to sales force)

• Display Allowances

• POP Material

• Price Reductions

SALES PROMOTION

Objectives:

• Trial

• Retention

• Increase Sales

• Reinforce Advertising

• Build Trade Support

• Generate Excitement

SALES PROMOTION

Trial by New Customers

•Samples

• Coupons

• Rebates

SALES PROMOTION

Retention of Loyals

•Ideas(To Buy More)

• Recipes

• Calendars

• Special Offers

SALES PROMOTION

Increase Overall Sales

•Multi Unit Purchases

• Special Sizes (larger, travel,

pocket)

• Premiums

SALES PROMOTION

Reinforce Advertising

–Contests

– Games

– Sweepstakes

SALES PROMOTION

Build Trade Support

–Increase Distribution

– Increase Exposure

– Motivate Retailers

SALES PROMOTION

Generate Excitement

–Starts with Sales Force

– Incentives on:

• Models

• Sizes

• Flavors/Scents

SALES PROMOTION TACTICS

SAMPLING

• Expensive due to size/package

• Mail or Door Hanger

• Magazine/Newspaper Insert

• Demonstration

• Attached to other product

• Welcome Kits

SALES PROMOTION TACTICS

COUPONING•Customer assured of discount

• Target geographically

• Retailer can double/triple

•Low redemption rates

•Retail stock level varies

• DM, FSI, ROP, Back of Receipts, hand

outs, Web, Text

DESIGNING COUPONS

• Must look like coupon

• Use cut marks

• FSI’s will perforate

• Face Value & Expiration Date

must be clear

• UPC and Coupon code to track

• Package & Logo on coupon

• Do not hide or bury coupon

PREMIUMS•Tangible rewards for purchasing

• Happy Meals

• Cracker Jack

• Cereals

• In/On Pack = Immediate reward

• Mail-ins – Must increase value of

reward to make up for “delay”

PREMIUMS•Self Liquidators = customer buys

premium at reduced cost

•Fragrance sets with bags

•BBQ sets

•Continuity Plans

• Frequent Flyer

• Hotel Guest

• Buy nine, get tenth free

REBATES•Offset portion of Sale Price

• Mail in for check

• Mail in for debit card (w/co-marketer)

• Provides Data Base

• Time period between purchase &

receipt affects redemption

• Longer lapse, less redemption

• Auto dealers apply to down payment

CONTESTS/SWEEPSTAKES/GAM

ES•KISS

• Avoid Purchase (lottery)

• Contests involve skill or judging

•Less appealing

•Exceptions = recipes

BONUS PACKS

• Two for One

• Two for One plus slight premium

• Good way to counter competitive

sales promotions

EVENT SPONSORSHIP

•Excellent exposure

• Positive Correlation to brand

• Sports

• Local Festivals

• Civic Organizations

• Entertainers

• Schools

EVENT SPONSORSHIP

CAVEATS

• Religious Groups

• Help one, help all

• Local Causes

• ditto

TRADE PROMOTIONS

• Need product in the pipeline

• New products die w/o distribution

• Need retail space and support

TRADE PROMOTIONS

Types:

•Purchase Incentives

• Performance

Allowances

TRADE PROMOTIONS

Purchase Incentives:

•Slotting Allowance – payments for

shelf space (retail, wholesale)

• Reduces ad budget

• May reduce # facings

• Reduce/Eliminate certain

• Flavors

• Scents

• Sizes

TRADE PROMOTIONS


• Off Invoice Purchase Allowance –

reduces Price to the Trade• Restricted by Time & # Orders

• Can reduce invoice price 5%-25%

• Creates Higher Inventory Level

TRADE PROMOTIONS


•Dating or Extension of Terms

•Two/10, net/30 or net 60

•Buy early or buy more or both

TRADE PROMOTIONS


•Free Goods•Buy 10 cases get one free

•Listing Advertising•Buy quantity, get listing in

national print ad

TRADE PROMOTIONS

Performance Allowances:

– Display/Merchandising

Allowances

• Sampling/Demonstrations

• Celebrities

• End of Aisle Position

TRADE PROMOTIONS


– POP

TRADE PROMOTIONS

TRADE PROMOTIONS


–Advertising Allowances

• Weekly Circular

– Product Position

– Package

– Logo

TRADE PROMOTIONS


– Co-op Advertising

• Defray cost of media–TV, Radio, Print

• Must mention/display

brand

TRADE PROMOTIONS


– POP = Point of Purchase

•Creative supplied by manuf.

– Bins, posters, clings

– Shelf talkers/danglers

• Often go unused

TRADE PROMOTIONS


–Trade Shows/Sales Mtgs

•Hospitality Suites

• Show deals

• Meal/Break Sponsorships

• Invite Trade to Corp Mtg

PUBLIC RELATIONS

ROLES:–Promote understanding of policies

– Combat negative images & publicity

• Correct misconceptions

• Encourage positive discussion

• Advise & train executives

– Do something good & talk about it

PUBLIC RELATIONS

TYPES:

–News Stories

– New Products

– Situation Updates

– Interviews

– Access behind the scenes

PUBLIC RELATIONS

TYPES:

–Press Kits• Newsletters

• Pamphlets

• Brochures

• Annual reports

• Info Hot Lines

PUBLIC RELATIONS

TYPES:

–Staged Events

• Trade Shows

• Celebrities

• Sponsorships

PRODUCT PUBLICITY

Informing how to select, buy & use

the product

•Technology

• High End

• New/Different

• Risky

• Complicated

PRODUCT PUBLICITY

Persuading to Purchase

•Well placed 7 timed stories

• Print

• Internet

• Broadcast/Cable/Radio

•News

•Talk

PRODUCT PUBLICITY

Dispelling Negatives

• Opinions

• Information

• Immediate response &

availability is key

PRODUCT PUBLICITY

Adds Value to Events and

Sponsorships

•Provides Heads up To Media

• Can tie Celebs/Politicians to

brand in positive way

• Creates sound bites

DIRECT MARKETING

CAN BE:

• Broad (FSI, ROP, Internet)

• Narrow (Clipper, Valpak, Text)

KEY IS EASE OF RESPONSE

• Toll Free

• Internet

•Reply card or envelop

DIRECT MARKETING

PROVIDES ACCOUNTABILITY

• Immediate Evaluation

•Offer

•Media

•Target

•Timing

DIRECT MARKETING

DATABASES

• Purchased …up to date?

• Home grown

• Co-Marketing partners

DIRECT MARKETING

DATABASES

• Can create profiles

• Demographics

• Purchase Patterns

• Frequency

• Timing (recent?)

• Amount in units & $$$

• Location – Where? How? Online?

• History/Patterns/Link to Occasion

DIRECT MARKETING OFFERS

Creating an Offer Top Ten:

10. Guarantees

- Reduces Perceived Risk

- Builds Confidence

9. Quantity Limits

- Creates sense of urgency

- Minimizes sale to resellers

- retailers

- Internet (e-Bay, Amazon)



8. Time Limits

- Also creates sense of urgency

- Entertainment Books

7. Incentives

- Should add value not detract

- Free Low cost gifts work well



6. Credit Options

- Sales Increase with Credit Cards

- Can hold merch. until charge clears

5. Future Obligation

- Continuity – Books, DVD’s

- First one = low price

- Then auto send at higher price



4. Optional Features

- Colors

- Sizes

- Personalization (monograms)

3. Units

- Smaller units (1 or 2) get more response



2. Shipping & Handling

- Mail orders usually include

- TV offers usually add

And the #1 factor in creating a direct marketing

offer is…………



PRICE• Be Competitive & Attractive

• Can test offers to different

targets

DIRECT MARKETING

Copy Guidelines

Headlines:

•Involve Reader

• Focus on Human Nature & Self

Interest

•Provide Information

• Never assume knowledge

DIRECT MARKETING

Copy Guidelines

Headlines:

•Make appeal & offer obvious

•No need to be subtle or coy

DIRECT MARKETING

Copy Guidelines

Visuals:

•Must reinforce message

• Avoid confusion – less is more

• Be genuine first, clever second

DIRECT MARKETING

Copy Guidelines

Consumer Motivation:

•Show & Tell how good it is

• Add inventive (time and/or

quantity limit) to move them

DIRECT MARKETING

Copy Guidelines

OFFER:

•Customers skeptical of:• Fine Print

• Asterisks

• Disclaimers

• Strings attached

DIRECT MARKETING

Copy Guidelines

CUSTOMER:

•MAKE THEM FEEL:

• SPECIAL

• GLAD

• UNIQUE

adv 435 ch 8 imc

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