Dr. Close. McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved "Doing business without advertising is like winking at a girl in the.

Dr. Close

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"Doing business without advertising is like winking at a girl in the dark. You know what you are doing, but nobody else does." -- Steuart Henderson Britt

Strategic Goals of Mkt CommCreate awarenessCreate awareness

Build positive imagesBuild positive images Identify prospectsIdentify prospectsBuild channel relationshipsBuild channel relationshipsRetain customersRetain customers

VS

IMC Integrated marketing communications Disjointed campaigns are horrible

Use SYNERGISTIC combination of your tools Message should be complementary/

consistent (VW Bug as retro-hip)

Experts who specialize must work together Don’t have to choose between sales

promo, personal selling, & ads (use some of each to reach more of your target market)

IMC Tool: Advertising

Promotion Methods a.k.a. The Promotion Mix Advertising: paid, impersonal

promotions by identified sponsor(s) Traditional big markets, but adaptable to smaller Low cost/contact (LA Times: 2 cents/per) Difficult to measure impact Not adaptable, inflexible

IMC Tool: Sales Promos

Promotion Methods (cont…) Sales promotion (coupons, POP, samples,

tradeshow) Added value or incentive in regard to a

particular product May complement personal and mass selling

(bonus) Targets

Final consumers: coupons, freq. shopper Middleman: gifts, price breaks Company sales force: bonuses, training

$3 SP for $1 ads

IMC Tool: Publicity and PR Promotion Methods (cont…)

Publicity; unpaid, impersonal promotions (talk show, movie premiere, charity, cars, etc; Rosanne) Do not pay media costs (magazine article) Perceived credibility; negativity

Publicity has far more value than advertising, but you must give reporters a reason to write about you. Photo: Michel O’Sullivan

IMC Tool: WOM/eWOM

Promotion Methods (cont…) Word of mouth: “WOM is the most

important marketing element that exists” Gordon Weaver, Paramount Pictures. Do you agree? Unpaid, personal promotions (after ads – PLC) Very high credibility (friends, business

acquaintances, employees) Try for opinion leaders (may pay to stimulate;

teens; movies; fashions) Usually negative (respond to complaints)

IMC Tool: Personal Selling Promotion Methods (cont…)

Personal selling; paid, personal promotions; direct spoken communication Adaptable to each target Immediate feedback Very expensive ($200/contact) More spending on p.s. than ads

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Integrated Marketing ApproachIntegrated Marketing Approach

How Various Promotion Tools Might Contribute to the Purchase How Various Promotion Tools Might Contribute to the Purchase of a Hypothetical Productof a Hypothetical Product

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Some Differences between Traditional Marketing Some Differences between Traditional Marketing Communication Efforts and Integrated Marketing Communication Efforts and Integrated Marketing

CommunicationsCommunications

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Advertising: Planning and StrategyAdvertising: Planning and Strategy

ObjectivesObjectives Generalist viewpoint – Concerned with sales, profits, and Generalist viewpoint – Concerned with sales, profits, and

return on investmentreturn on investment Middle viewpoint – Sees advertising as a competitive Middle viewpoint – Sees advertising as a competitive

weaponweapon Specialist viewpoint – Concerned with the effects of Specialist viewpoint – Concerned with the effects of

specific ads or campaignsspecific ads or campaigns In the long run and often in the short run, advertising is In the long run and often in the short run, advertising is

justified on the basis of the revenue it producesjustified on the basis of the revenue it produces Approach that aids intelligent decision making is neededApproach that aids intelligent decision making is needed

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Developing Advertising Objectives: Developing Advertising Objectives: Nine QuestionsNine Questions

Does the advertising aim at immediate sales?Does the advertising aim at immediate sales? Does the advertising aim at near-term sales?Does the advertising aim at near-term sales? Does the advertising aim at building a long-range Does the advertising aim at building a long-range

consumer franchise?consumer franchise? Does the advertising aim at helping increase sales?Does the advertising aim at helping increase sales? Does the advertising aim at some specific step that Does the advertising aim at some specific step that

leads to a sale?leads to a sale?

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Developing Advertising Objectives: Developing Advertising Objectives: Nine QuestionsNine Questions

How important are supplementary benefits of How important are supplementary benefits of advertising?advertising?

Should the advertising impart information needed to Should the advertising impart information needed to consummate sales and build customer satisfaction?consummate sales and build customer satisfaction?

Should advertising build confidence and goodwill for the Should advertising build confidence and goodwill for the corporation?corporation?

What kind of images does the company wish to build?What kind of images does the company wish to build?

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Advertising DecisionsAdvertising Decisions

Key decisions to be made includeKey decisions to be made include Determining the size of the advertising budgetDetermining the size of the advertising budget Allocation of the advertising budgetAllocation of the advertising budget

Important to remember that brand equity and consumer Important to remember that brand equity and consumer preference for brands drive market sharepreference for brands drive market share