Lecture One MKT 6810 Introduction to Promotions Management and Integrated Marketing Communications (IMC)

Lecture OneLecture OneMKT 6810MKT 6810

Introduction to Promotions

Management and Integrated Marketing

Communications (IMC)

Key TermsKey Terms Marketing

Set of activities whereby businesses and other organizations create transfers of value (exchanges) between themselves and their customers

Communications Process whereby

thoughts are conveyed and meaning is shared between individuals or between organizations and individuals

Marketing CommunicationsMarketing Communications

What types of communications exist to promote their offerings and achieve their financial and non-financial objectives? B2B B2C B2NP

Integrated Integrated Marketing Marketing

CommunicationsCommunicationsa 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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Marketing Marketing CommunicationsCommunications Collection of all elements in a brand’s marketing mix that facilitate exchanges by establishing shared meaning with the brand’s customer of clients

Strategies for IMCStrategies for IMC

Affect Behavior Use all forms of

contacts Start with

customer Achieve

synergy Build

Relationships

Brand EquityBrand Equity One of the primary objectives of

brand and category managers if to utilize promotions to enhance brand equity

Brand equity New products would be perceived

as on a level playing field with existing brands in the marketplace as well as other products of the firm

Most IMC focuses on brand level

Importance of Brand Importance of Brand Loyalty vs. EquityLoyalty vs. Equity “While marketers have long viewed

brands as assets, the real asset is brand loyalty. A brand is not an asset. Brand loyalty is the asset. Without the loyalty of its customers a brand is merely a trademark, an ownable, identifiable symbol with little value. With the loyalty of its customers, a brand is more than a trademark.

Importance of Brand Importance of Brand LoyaltyLoyalty A trademark identifies a product, a

service, a corporation. A brand identifies a promise. A strong brand is a trustworthy, relevant, distinctive promise. It is more than a trademark. It is a trustmark of enormous value. Creating and increasing brand loyalty results in a corresponding increase in the value of the trustmark.”

Valuable Brands in the Valuable Brands in the MarketMarket

Coca-Cola Marlboro IBM Motorola HP GE Levi’s

Brand Concept Brand Concept Management (BCM)Management (BCM) Brand concept

The specific meaning that managers create and communicate to the TM

Introduce Utilize advertising and promotions to

yield awareness and familiarity Fortify

Reinforce the image and connections in consumers’ minds

Elaborate Build and expand to other products

BCMBCM Focuses on three basic consumer

needs Functional needs

Provide solutions to consumers’ problems through product attributes

Symbolic needs Psychological desires addressed

Group membership Affiliation, belongingness (think Maslow)

Experiential Needs Sensory pleasures addressed as well as

cognitive and hedonic consumption

Elements of the Elements of the Promotions MixPromotions Mix Advertising Sales Promotion Publicity/PR Management Personal Selling Direct Marketing and Social Media Marketing

New School vs. Old School New School vs. Old School Promotions MixPromotions Mix Old School

Advertising Sales Promotion Personal Selling Public Relations

New School Advertising, PR, Sales Promotion and Personal

Selling Direct Marketing, SEO, Social Media Mktg

AdvertisingAdvertising Paid Identifiable Sponsor Mass Media Inform or Persuade

Sales Sales PromotionPromotion Incentive or extra value to

encourage the consumer to act in a certain fashion.

Trade-oriented and consumer oriented

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

Public RelationsPublic 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.

PublicityPublicity 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

A tool in public relations along with promo videos, press kits,brochures, newsletters, etc.

PersonalPersonal SellingSelling 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.

Direct MarketingDirect Marketing Communication

delivered directly to the consumer to generate a response or a transaction Direct mail

catalogs, specialty promos

Telemarketing Direct selling Direct response

advertising

Social Media Marketing and ADsSocial Media Marketing and ADs

Utilizing social media platforms to form relationships with customers and prospects. Advertising PR Sales Promo

Trends in IMCTrends in IMC Reduced Dependence in Mass

Media Advertising Boom in Social Media options Increased Reliance on Highly

Targeted Communications Methods Greater Demands Imposed on

Marketing Communications Suppliers

Increased Efforts to Assess Communications ROI