Lecture One MKT 385 Introduction to Promotion Integrated Marketing Communications a concept of marketing communications planning that recognizes the.

Lecture OneMKT 385

Introduction to Promotion

Integrated Marketing Communications

a concept of marketing communications planning that

recognizes the added value of a comprehensive plan that evaluates the

strategic roles of a variety of communication disciplines - for

example, general advertising, direct response, sales promotion, and public

relations- and combines these disciplines to provide clarity, consistency, and maximum

communications impact.

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Elements of the Promotions/Communications Mix

Advertising Sales Promotion Publicity/PR Management Personal Selling Direct Marketing AND Social Media Marketing

Advertising “salesmanship in

print” Albert Lasker

Generally Paid ( except PSAs)

Identifiable Sponsor Mass Media Inform or Persuade Structured communication

AdvertisingAdvantages

Cost Effective Emotional Appeals Brand Equity Changing

technology with Interactive media (Internet) and nontraditional media (blimps, shopping carts)

Disadvantages

Cost of Production Clutter Zipping/Zapping

The Communication Process Source Encoding Message Channel Decoding Receiver Feedback Noise

How Does The Communication Process Relate to Advertising ?

Source Encoding Message Channel Decoding Receiver Feedback Noise

Sponsor Appeal Design Message

Autobiographical, narrative, drama

Medium Reception process Consumer

Implied (ideal), sponsorial (management), actual

Purchase/Call Distractions

Functions and Effects of Advertising To identify products and

differentiate To communicate information about

the product, features and location To stimulate trial To stimulate distribution To build value, brand preference,

loyalty Lower Costs

Economic Role of Advertising Market

Power School less price

sensitivity distraction encourages

loyalty differentiates

Market Competition School increases

sensitivity stimulates

competition lower prices

for everyone!

Economic Impacts of Advertising

Value - perception of added value

Prices - are they raised or lowered?

Competition Consumer Demand Consumer Choice Business Cycle

Advertising The Major Players

The AdvertiserThe AgencyThe Media

Classifications of Advertising

Advertising to Consumer Markets Retail advertising, product

advertisements, branding PSAs

Advertising to Business Markets Business to Business Professional – teachers, lawyers,

doctors Trade – aimed at resellers Agricultural – farmers and

agribusiness

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What is Marketing? The process of planning and

executing the conception, pricing, distribution and promotion of ideas, goods and services to create exchanges that satisfy the perceived needs, wants and objectives of individuals and organizations

4 P’s Influence on Advertising Product

Consumer packaged goods advertising Service advertising Hi-tech advertising

Price Image advertising (brand) Sale advertising Price advertising

4 P’s Influence on Advertising Place (Distribution)

Global advertising – unified message International advertising – specific

messages by market Promotion – see following slides!

Sales Promotion

Incentive or extra value to encourage the consumer to act in a certain fashion.

Examples: coupons, sweepstakes, trade shows, rebates, free samples

Sales PromotionAdvantages/Disadvantages

Short-term sales boost

stimulates trial

incentives for intermediaries to cooperate

Sacrifice long-term performance for short term gain

Clutter Sacrifice

brand equity

Public Relations

the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.

Publicity

nonpersonal communication regarding the organization, product, service or idea that is not directly paid for nor run under identified sponsorship, usually coming from a news story, editorial, or announcement about an organization or its products and services.

Additional tools include: collateral materials such as press kits, instruction booklets, brochures, catalogs, fliers

Publicity/PR toolsAdvantages/Disadvantages

Credibility Low Cost

Lack of Control Negative

Publicity very harmful and difficult to overcome

Miss the Target Audience

Personal Selling involves the direct contact

between the buyer and seller in which the seller attempts to persuade and assist the prospective customers to purchase the company’s products or service or to act on an idea.

Personal SellingAdvantages/Disadvantages

Flexibility Immediate

Feedback

High cost per High cost per contactcontact

uniformity of uniformity of message message deliverydelivery

Direct Marketing Any direct

communication delivered the consumer to designed to generate a response or a transaction in the form of an order, request for information or visit

Direct mail catalogs, specialty

promos Telemarketing Direct selling Direct response

advertising

Direct Marketing Negatives

Viewed often as sales oriented, not relationship oriented

Intrusive Women working Do Not Call Lists Expensive per contact

Positives Measurable results Many forms work around customer

schedules

Social Media Marketing Recognizing and utilizing social media

outlets to promote interest, communication and dialogue relating to a product, individual, service or event

Social Media can be utilized by developing pages, boosting posts, advertising, etc. to form relationships in the marketplace

Evolution of Advertising Early Ads

Gutenberg’s invention of the printing press changed the world we live in …

Now we could become literate, communicate information and sell products!

1472 – first ad appeared in the form of a handbill tacked on church doors selling prayer books

By the early 1700’s clutter takes hold! 1704 – Boston Newsletter begins to carry

ads and Ben Franklin makes them artsy!

Industrial Age and Ad Agencies Second half of the 19th century through

the 20th

Commodities markets saturated and branding began in the form of consumer packaged goods

Advertising primarily fell to wholesalers who disseminated information on goods

Volney Palmer set up business as a media buyer

N.W. Ayer & Sons was the first agency to charge commission based on space

Evolution of Advertising

Golden Age of Advertising (1946-1970)

Following the advent of radio, television again inspired creativity and advertising flourishes Market segmentation, positioning, USP

Post Industrial Age Demarketing to slow demand for

products consuming and manufactured from natural resources

Global Interactive Age Evolution of cable and satellite TV

(segmentation), TiVo (ad skipping), digital technology (how to compete?) Use of web sites, social networking,

downloadable entertainment with sponsorships