instructor: amir ekhlassi (7) integrated marketing communications: advertising, sales promotion, and...
TRANSCRIPT
Instructor: Amir Ekhlassi
(7)Integrated Marketing Communications: Advertising,
Sales Promotion, and Public Relations
The Marketing Communication MixAdvertising: 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.
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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.
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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.
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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).
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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.
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Major decision in advertising
Objectives setting
Communication objSales obj
Budget decisions
Affordable approachPercent of sales
Competitive parityObjective & task
Message decisions
Message strategyMessage execution
Media decisions
Reach, frequency, impactMajor media types
Specific media vehiclesMedia timing
Campaign evaluation
CommunicationImpact
Sales impact
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1. Setting advertising objectivesAn 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)
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2. Setting the advertising budgetIt depends! One of the Hardest Marketing Decisions is
How Much to Spend on Promotion.
Affordable
Objective-and-Task
Percentage of Sales
Competitive-Parity
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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)
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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 objectivesDetermining the tasks that must be performed
to achieve these objectivesEstimating the costs of performing these tasks
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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.
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3. Creating the advertising message (cont’d)The advertiser must next develop a compelling creative
concept – or ““big ideabig 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: MeaningfulBelievableDistinctive
Watch: it keeps accurate timeSwatch: style & fashion Rolex: Luxury & Status
Hane: “buy cheap socks and you will pay through the toes”13 ©Compiled by: Amir Ekhlassi
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)
LifestyleFantasy (Gap : Dream) Mood or image (Beauty, Love, Serenity)Musical (Jingle) Personality symbolTechnical expertiseScientific evidence (Crest) Testimonial evidence or endorsement (highly
believable or likable)14
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4. Selecting advertising mediaThe major steps in media selection are:Deciding on reach, frequency, and impactChoosing among major media typesSelecting specific media vehiclesDeciding on media timing
IllustrationHeadlineThe main block of text
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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.
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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
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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 attentionThe vehicle’s editorial quality (wall
street, time)
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4. Selecting advertising media (cont’d)
Deciding on media timing:ContinuityPulsing
Hallmark: Seasonal Ad)
The idea is to advertise heavily for a short period to build awareness that carries over to the next ad period.
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5. Evaluation advertising The advertising program should evaluate both
the communication effectscommunication effects and the sales sales effectseffects 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.
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Sales promotionSales 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)
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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 salesExternally, 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
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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
Sales promotion (cont’d)
Sales promotion objectivesSales promotion objectives
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Sales promotion (cont’d)
Sample (most effective but most expensive, Ex: P&G www.pertplus.com)
CouponsCash refund (rebate): price
reduction occurs after purchase rather than at the retail outlet
Price packs (cents-off deals)PremiumsAdvertising specialties (63% of
consumers in the USA)
Patronage reward (Airlines, Baskin-Robbins)
Point-of-purchaseContestSweepstakesGames
Consumer promotion toolsConsumer promotion tools
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Sales promotion (cont’d)
AllowanceAdvertising allowanceDisplay allowance
Free goodsPush money: cash or gifts to dealers or their
sales forces to “push” the manufacturers’ goods.
Trade promotion toolsTrade promotion tools
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Public relationsBill 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”.
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Public relationsPublic 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 publicityPublic affairs (building and maintaining national or local
community relations) LobbyingInvestor relationsDevelopment
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Public relations (cont’d)Major public relations tools:NewsSpeechesSpecial eventsWritten materialsAudiovisual materialsCorporate 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: www.butterball.com in thanksgiving , 550,000 viewers)
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