Integrated Marketing Communication

Introduction

Promotional Mix

combination of one or more of the communication tools used to

inform - propsective buyser about the benefits of the product

persuade - them to try it and,

remind - them later about the benefits they enjoyed by using the product

Integrated Marketing Communication

Introduction

Integrated Marketing Communications (IMC)

Integrated Marketing Communication

Introduction

Promotional Mix: Elements

Advertising

paid form of non-personal communication about an organization, good, service, or idea by an identified sponsor

Adv: effecient reach,  Some targeting

Dis: Absolute Cost,   Feedback

Integrated Marketing Communication

Introduction

Promotional Mix: Elements

Personal Selling

-two way flow of communication between buyer and seller

-designed to influence a person's or group's purchase decision, usually face to face communication between sender and receiver

Adv: Immediate Feedback,   Target Marketing,   Complex Information

Dis: Cost/Exposure, Message change per sales rep

Integrated Marketing Communication

Introduction

Promotional Mix: Elements

Public Relations

Communication management that seeks to influence the feelings, opinions, or beliefs

customer; prospective customers; stockholders; suppliers; employees; other publics about the company and its products/services

Adv:credibility

Dis: limited control over media

Integrated Marketing Communication

Introduction

Promotional Mix: Elements

Sales Promotion

short-term inducement of value offered to arouse interest in buying a good or service

Adv: changes short term behavior,   flexible

Dis: Abuse,   Promotion wars,   duplication

Integrated Marketing Communication

Introduction

Promotional Mix: Elements

Direct Marketing

direct communication with consumers to:

generates a response in the form of an order.

request for further information

Adv: Quick Preparation,   customer Relationship

Dis: Customer response,   database management

Integrated Marketing Communication

Introduction

Developing the Promotional Mix

Product Life Cycle

Introduction

Marketing Obj: Gain Awareness

Promotion: Publicity, Advertising, Sales Promotion-Free Samples

Integrated Marketing Communication

Introduction

Developing the Promotional Mix

Product Life Cycle

Growth

Marketing Obj: Persuasion

Promotion: Personal Selling, Advertising-Differentiation, Sales Promotion-Trial

Integrated Marketing Communication

Introduction

Developing the Promotional Mix

Product Life Cycle

Maturity

Marketing Obj: Brand Loyalty

Promotion: Advertising-Remind, Sales Promotion- discounts, coupons, DM reminds

Integrated Marketing Communication

Introduction

Developing the Promotional Mix

Product Life Cycle

Decline

Marketing Obj: Harvest, Deletion

Promotion: Minimal

Integrated Marketing Communication

Introduction

Developing the Promotional Mix

Product Life Cycle

Stages of Buying Decision

Check Notes

Integrated Marketing Communication

Developing the Promotional Mix

Stage of Buying Decision

Push Strategy

directing the promotional mix to channel members to gain their cooperation in ordering an stocking the product

ie Suave

Integrated Marketing Communication

Developing the Promotional Mix

Stage of Buying Decision

Pull Strategy

directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product

ie head and sholders

Integrated Marketing Communication

Developing the Promotional Mix

Stage of Buying Decision

Push and Pull Order

Push: Manufacturer, (Personal Selling to direct intermediaries), Wholesaler, Retailer, Consumer

Pull: Consumer, Retailer, Wholesaler, (advertising directly to consumers), Manufacturer

Personal Selling

Scope and Significance

 Personal Selling

Personal Selling

Scope and Significance

Sales Management

Personal Selling

Scope and Significance

Creating Customer Value Through Salespeople: Relationship and Partnership selling

Relationship Selling

practice of building ties to consumer based on a salesperson's attention and commitment to customer needs over time

Personal Selling

Forms of Personal Selling

Missionary Salespeople

Personal Selling

Forms of Personal Selling

Sales Engineer

Salesperson who specializes in identifying analyzing and solving customer problems

Brings know-how and technical expectise to the selling situation but often does not actually sell products/services

Personal Selling

The Sales Process

Prospecting

search for qualified prospects

advertising, referrals, cold calls

Personal Selling

The Sales Process

Pre-approach

gather information to decide how to approach customer

Personal obeservation, other customers, own salespeople

Personal Selling

The Sales Process

Approach

Personal Selling

The Sales Process

Presentation

1. Create desire for the product

2. Gain consumer involvement

3. Opportunity to handle objections

Personal Selling

The Sales Process

 Presentation

Opportunity to handle objections

1. Compensation - develop positive attitude toward objections
2. feel-felt-found - relax and listen, dont interrupt
3. boomerang - anticipate objections and prepare helpful responses
4. pass-up - addess known concerns before they arise
5. postpone - make sure objection is not an excuse
6. denial direct/indirect - sincere empathic response to buyers' objection

Personal Selling

The Sales Process

Close

1. Direct Request
2. Benefit Summary
3. Balance Sheet Method
4. Probing Method
5. Minor Point close
6. Continuous Commitment
7. Standing room only
8. Benefits in reserve
9. Emotional Close

Advertising & Sales Promotion

Types of Advertising

Advertising

Any paid form of:

nonpersonal communication

about an organization, good, service or idea by an identified sponsor

Advertising & Sales Promotion

Types of Advertising

Product Advertising

advertisements that focus on selling a good or service

1. pioneering
2. competitive
3. reminder

Advertising & Sales Promotion

Types of Advertising

Institutional Advertisements

designed to build goodwill or an image for an organization rather than promote a specific good or service

1. Advocacy
2. Pioneering
3. Competitive
4. Reminder

Advertising & Sales Promotion

Types of Advertising

Designing the Ad- Forms

1. Fear appeal
2. Sex Appeal
3. Humor Appeal

Advertising & Sales Promotion

Developing Ad Programs

Selecting Media

Reach

Advertising & Sales Promotion

Developing Ad Programs

Selecting Media

Rating

Advertising & Sales Promotion

Developing Ad Programs

Selecting Media

Frequency

Advertising & Sales Promotion

Developing Ad Programs

Selecting Media

Gross Rating Points (GRP's)

Advertising & Sales Promotion

Developing Ad Programs

Selecting Media

Cost per thousand (CPM)

Advertising & Sales Promotion

Developing Ad Programs

Television

1. out of home
2. spot
3. wasted coverage
4. DVR
5. Infomercials - program length (30 min) ad that take an educational approach to communication with potential customers

Advertising & Sales Promotion

Developing Ad Programs

Advantages and Disadvantages

Television

1. reaches extremely large audience
2. uses picture, print, sound and motion for effect
3. target specific audience

1. high cost to prepare and run ad
2. short exposure time and perishable
3. difficult to convey complex message

Advertising & Sales Promotion

Developing Ad Programs

Advantages and Disadvantages

Radio

1. low cost, can target specific audiences
2. ads can be placed quickly
3. use sound, humor and intimacy effectively

1. No visual element
2. short exposure time and perishable message
3. difficult to convey complex info 

Advertising & Sales Promotion

Developing Ad Programs

Advantages and Disadvantages

Magazine

1. can target specific audiences
2. high quality color; long life ad
3. ads can be collected
4. convey complex information

1. long time needed to place ad
2. relatively high cost
3. competes or attention with other magazine features

Advertising & Sales Promotion

Developing Ad Programs

Advantages and Disadvantages

 Newspapers

1. excellent coverage of local markets
2. ads can be placed and changed quickly
3. ads can be saved
4. quick consumer response
5. low cost

1. ads compete for attention with other newspaper features
2. short lifespan
3. poor color

Advertising & Sales Promotion

Developing Ad Programs

Advantages and Disadvantages

Yellow Pages

1. Excellent coverage of geographic
2. long use period
3. available 24/7

1. Proliferation of competitive directories in many markets
2. difficult to keep up to date

Advertising & Sales Promotion

Developing Ad Programs

Advantages and Disadvantages

Internet

1. video and audio capabilities
2. animation can capture attention
3. ads can be interactive and link to adveriser

1. Animation and interactivity require large files and mre time to load
2. effectiveness is still uncertain

Advertising & Sales Promotion

Developing Ad Programs

Advantages and Disadvantages

Outdoor

1. low cost
2. local market focus
3. high visibility
4. opportunity for repeat exposures

1. short and simple
2. low selectivity of audience
3. critized as a traffic hazard

Advertising & Sales Promotion

Developing Ad Programs

Advantages and Disadvantages

Direct Mail

1. highly selective of audience
2. contain complex info
3. personalize message
4. high quality graphics

1. high cost per contact
2. poor image (junkmail)

Advertising & Sales Promotion

Developing Ad Programs

Scheduling the Ads

1. Continuous - Coke
2. Flighting, seasonal - Snow Skii's
3. Pulse - Pay Day

Retailing

Value of retailing

Retailing

Retailing

Value of retailing

Utility

1. time
2. place
3. form
4. possession

Retailing

Classifying retail outlets

Form of Ownership

1. Independent retailer - Philips Market
2. Corporate Chain - Starbucks
3. Contractual System - Pizza hut

Retailing

Classifying retail outlets

Level of Service

1. self-service
2. limited service
3. full-service

Retailing

Classifying retail outlets

Merchandise line

Retailing

Classifying retail outlets

Merchandise line

Depth of product line

Retailing

Classifying retail outlets

Merchandise line

breadth of product line

Retailing

Classifying retail outlets

Merchandise line

Scrambled Merchandising

Retailing

Classifying retail outlets

Merchandise line

Hypermarket

Retailing

Classifying retail outlets

Merchandise line

intertype competition

Retailing

Non-Store retailing

1. Automated vending
2. direct mail and catalogs
3. television home shopping
4. online retailing
5. direct selling
6. telemarketing - using the telephone to interact with and selling directly to consumers

Retailing

Strategy

Positioning

retail positioning matrix

Retailing

Strategy

Positioning

Retail positioning Matrix Example

Retailing

Changing nature of retailing

Wheel of retailing

page 152

Pricing

Nature and importance of price

Price

Pricing

Nature and importance of price

Barter

Pricing

Nature and importance of price

Value

Pricing

Nature and importance of price

 Value-pricing

Pricing

Nature and importance of price

 Profit Equation

1. Profit = Total Revenue - Total cost; or
2. Profit = (Unit price x Quantity sold) - Total cost

Pricing

Step 1: Identify pricing objectives and constraints

Pricing Objectives

specifying the role of price in an organization's marketing and strategic plans

1. Profit - long run, current or target return
2. Sales
3. Market Share
4. Unit Volume
5. Survival
6. Social Responsibility

Pricing

Step 1: Identify pricing objectives and constraints

Pricing Constraints

involve factors that limit the range of prices a firm may set

1. Demand for the product class, produc and brand
2. newness of product: stage in the product life cycle
3. single product v. product line
4. Cost of producing and Marketing product
5. cost of changing pricest time period they apply
6. Competitor's prices
7. type of competitive markets

Pricing

Step 2: Estimate demand and revenue

fundamentals of estimating demand

demand curve

1. a graph relating to the quantity sold and pice, which shows the max number of units that will be sold at a given price
2. consumer tastes
3. price and availability of similar products
4. consumer income
5. demand factors

Pricing

Step 2: Estimate demand and revenue

fundamentals of estimating demand

Total Revenue (TR)

1. total money received from sale of a product
2. total revenue (TR) = unit price (P) the quantity sold (Q) or TR=PxQ

Pricing

Step 3: Determine cost, volume and profit relationships

Total Cost

1. Total expense incurred by a firm in producing and marketing a product
2. TC equals the sum of fixed costs and variable cost-- TC=FC+VC

Pricing

Step 3: Determine cost, volume and profit relationships

graph

Pricing

Step 4: Select an appropriate price level

Demand-Oriented Approaches

1. Skimming pricing
2. penetration pricing
3. prestige pricing
4. price lining
5. odd-Even prcing
6. target pricing
7. bundle pricing
8. yeild managament pricing

Pricing

Step 4: Select an appropriate price level

Cost Oriented Approaches

1. Standard Markup Pricing
2. Cost-Plus Pricing
3. Experience Curve pricing