Advertising and PromotionAn Integrated Marketing

An Introduction to Integrated Marketing Communications

Communications Perspective

Chapter 1.

January , 2011Pavel Vazquez Molina (MBA)

ADVENTURE BEGINS……

To axamine the mkt comunications function and the growing importance of advertising and promotion

To introduce IMC

To introduce the varios elements of the promotional mix and consider their roles in an IMC program

Chapter objectives

What is marketing?

Why is it important to International Businesses students?

What’s the difference between price and value?

Introduction Questions

What is marketing?MKT is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual of organizational objectives.

American Marketing Association 1985

MKT is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

American Marketing Association 2004

What is marketing?

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

American Marketing Association 2007

MKT is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

American Marketing Association 2004

Relationship and value

Relationship marketing: creating, maintaining and enhancing long-term relationships.

Value: benefits vs cost.

Mass customization: response to particular clients needs in cost-effective way. http://nikeid.nike.com

It is always less expensive to maintain actual customers than obtaining new ones.

Marketing MIX

Product, Price, Place and Promotion

It is always less expensive to maintain actual customers than obtaining new ones.

Companies need this variables to develop an effective mkt. program that delivers value to customers.

IMC – Integrated Marketing Communications Is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communications programs over times with customers, prospects, employees, associates and other targeted relevant external and internal audiences. The goal is to generate both short-term financial returns and build long-term brand and shareholder value.

Reasons 4 the growing of IMCMarketers understand the value of Integration vs. autonomous action. They adopt to a changing environment (customers, technology and media).

-800 million users of the WWW.-In the US the average house hold receives 100 tv channels (only 27 in 1994).-TV, magazines, newspapers and radio are becoming more fragmented.Product placement in movies, soap operas, tv shows etc.

Reasons 4 the growing of IMC

Marketers are changing from traditional media advertising to price promotions, event marketing and sponsorship, direct mailing, internet (cost factors).

Shift in market place from manufactures to retailers (small retailers are being replace by large retailers.

Rapid growth of database marketing.Agencies are compensated based in objective measures.Rapid grow of internet as a communication and business strategy

The role of IMC in Branding

Plays a major role in the process of developing brand identity and equity (important asset-$).

Logo, symbols, design, packaging and performance of a product or service

67.72 bd 59.94 bd 53.38Brand Value

The promotional MIX

The promotional MIX1. Advertising: Paid form of none personal communication

Space or time cost $ Message to large group, no feed back

-Is the most effective way to reach large audiences

-Is great for building company or brand equity It is always less expensive to maintain actual customers than obtaining new ones.

2. Direct Marketing

Organizations communicate directly with target customers to generate a respond and or a transaction.

Not only direct mail or mail-order catalog, but database management, direct selling, telemarketing, the internet, broadcast and print media.

CV Directo, Magazines “Please send me more info on:” Call today 1-800-bose 123

The promotional MIX

3. Interactive/Internet Marketing

• Back and forth of flow of information

• User modify the content of info they receive.

Internet (compare items, online chat) www.hp.comCD ROM’sText messaging Media with internet

The promotional MIX

4. Publicity/Public Relations

• Publicity refers to nonpersonal communications regarding an organization, product, service, idea not directly paid for or run under identified sponsorship.

News released, press conferences, feature articles, photographs, films, and video tapes.

The promotional MIX

Could be not always under control/stories could be damaging.

(Super Size Me, by Morgan Spurlock)http://video.google.com/videoplay?docid=-1432315846377280008#

4. Publicity/Public Relations

• Public Relations is the management function that evaluates public attitudes, identifies the policies and procedures of an individual or organization with public interest and executes a program of action to earn public interest.Objective: To establish and maintain a positive image of the company among its various publics.Sempra Energy: Costa Azul Ensenada Gives money to the city for refuse trucks, parks etc,Gives money to Universities for certain projects.

Should CETYS accept money from them?

The promotional MIX

5. Personal Selling

• Person-to-person communication.Seller tries to persuade a customer to buy a product or service or to a act towards an idea. Direct contact buyer-seller.Involves precise feedback.Seller can change his techniques or speech (situation).

Insurance or Retirements plans (afore).Cell phone and Nextel communications.What else?

The promotional MIX

The IMC Planning Process

• The IMC Management involves:

Planning, executing, evaluating and controlling the use of the various promotional mix elements to effectively communicate with target audiences.

Which promotional tools should use and how to integrate them to achieve:

Marketing ObjectivesCommunication Objectives

Review of the marketing planSituation Analysis-Internal analysis

• Identify current problems and challenges• Review of previous program results • External promotion agencies used • SW Analysis (SWOT analysis)

▫Promotional department organization▫Firm’s ability to implement a promotional

program

Review of the marketing plan

Situation Analysis-External analysis

• Consumer behavior analysis• Current market segmentation• Current market positioning• Competitive analysis• Current Marketing Strategy or IMC Strategy• Environmental factors (social and cultural,

technological, legal, regulatory, political)• OT Analysis (SWOT analysis)