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1
Chapter 9Integrating Marketing
Communications 1: Mass Communications
Techniques
2
Key Promotional Mix Tools
AdvertisingAdvertising
DirectMarketing
DirectMarketing
PublicityPublicity Personal Selling
Personal Selling
Digital Marketing
Digital Marketing
SalesPromotion
SalesPromotion
SponsorshipSponsorship
3
Integrated Marketing Communications (IMC)
Choice of promotional blend depends on:
Resource availability and the cost of promotional toolsMarket size and concentration Customer information needsProduct characteristicsPush versus pull strategies
4
Apple Mac v PC
The famous campaign contrasting
the PC owner on the left with the
Apple Mac owner on the right
illustrates the power of marketing
communications to transfer
meanings
5
The Communication Process
Encodedmessage
Decodedmessage
Transmission
Noise
Noise
Strong and weak theories of how advertising works
Desire(or conviction)
Interest
Awareness
Action
Reinforcement
Trial
Awareness
Strong (AIDA) Weak (ATR)
7
Diesel
The Diesel clothing
‘Be Stupid’ campaign
generated a significant
amount of buzz due to
its clever graphics and
strong headlines
8
Developing Advertising Strategy
Identify and understand target audienceIdentify and understand target audience
Marketing strategy
Define advertising objectives
Set the advertising budget
Message decisions Media decisions
Execute campaign
Evaluate advertising effectiveness
Setting the Advertising Budget
Percentageof Sales
Affordability MatchingCompetition
Objective & Task
Stimulate
Sales
10
Advertising Media Spend
Advertising expenditure by media – Western Europe,
2011 Source GroupM
Message decisionsCustomer convergence
consumers across different countries share common experiences, needs and motivations
Advertising platform foundation of the advertising message, the basic selling
proposition it should be: important to the target audience communicate competitive advantage
Advertising message translates the platform into words, symbols and
illustrations which are attractive and meaningful to the target audience
12
Ethical Issues in AdvertisingAdvertising in the UK should be legal, decent, honest, and truthful. The advertising Standards Authority administers the British advertising codes of practice. Sometimes these codes are broken using some of the following practices:
Misleading advertising can take the form of exaggerated claims and conceal facts.
Advertising may deceive by omitting important facts from the message.
Media Class OptionsPress
•National•Regional
Magazines•Fashion•Technical•Trade
Television
Radio
Cinema Posters
Defining Opportunities to See (OTS)?Television
Presence in the room with the set switched on at turn of clock minute to relevant channel, providing presence in the room with the set on is for at least 15 consecutive seconds
Press and MagazinesRead or looked at any issue (for at least two minutes) within the
publication period (e.g. for weeklies within the last 7 days)
PostersTraffic past site including pedestrians
CinemaActual cinema admissions
The structure of a large advertising agency
Managing director
Accountmanagement
Productionand trafficCreative Media Planning
Accountexecutives
Accountdirectors
Manageaccount
Develop concepts and create copy and artwork
Decide upon media
and negotiate
price
Make the ads and get the right ad to the right
media at the right time
Commission, conduct and
interpret marketing
research for use in
campaign planning
Artdirector
Copywriters
Buyers
Planners
Trafficmanager
Productionmanager
Researchers
Strategists
Layout
16
Sales PromotionThe growth of sales promotion is attributed to:
Increased impulse purchasing (at the point of purchace)
The rising cost of advertising and advertising clutter
Shortening time horizons (shortening life cycles)
Competitor activities (general practice in certain businesses)
Measurability (effect is more direct and usually, short term)
17
Sales Promotion StrategyObjectives for the promotionshort term sales increase, reducing inventories,
meet budgets prior to the end of the financial year
Encourage trial: Home sampling and home couponing of a brandEncourage repeat purchasing of a brand over a period of time
Gain distribution and shelf space
Objectives for the promotionshort term sales increase, reducing inventories,
meet budgets prior to the end of the financial year
Encourage trial: Home sampling and home couponing of a brandEncourage repeat purchasing of a brand over a period of time
Gain distribution and shelf space
Decisions on which techniques are most suitableConsumer & Trade promotion (see Fig 9.4)
Decisions on which techniques are most suitableConsumer & Trade promotion (see Fig 9.4)
Evaluation of the effectiveness of the promotionpre-testing and post-testing approaches
Group discussions, Hall tests, Experimentation
Evaluation of the effectiveness of the promotionpre-testing and post-testing approaches
Group discussions, Hall tests, Experimentation
18
Consumer and Trade Promotions
Money offappealing to existing customers
Free samples13 for the price of 12
encourage trialNew brand or brand extentions
Prize promotionsspecial offers
Loyalty cardsBensin kort
Free goodsAllowancesin store demos
sum of money in return
Bonus packs
Premiumsfree or at low cost
encouraging bulk purchasingmaintaining share
Couponsat homes or in magazines
Price discounts
Competitionsextra shelf space
providing prices for a distributor’s sales forcesCommission offers to sales forces
Consumerpromotions
Tradepromotions
19
Cosmopolitan
Free in-pack gifts have been used by
many magazine publishers in a bid
to counter declining sales
20
Public Relations & PublicityPublic Relations (PR) is concerned with managing the interactions between a company and its publics, e.g., consumers, suppliers, the local community, employees, shareholders, pressure groups.
1. The message has high credibility2. No direct media cost3. No control over publication
There has been a significant growth in PR. Key reasons are recognition by marketing teams of the power and value of PR, increased advertising costs, and improved understanding of the role of PR.
21
An Organization and its Publics
•Television•Press•Radio
Media
•Customers•Distribution•Suppliers
Commercial
•Local communities•Pressure groups•Opinion leaders•General public
Public
•Parliament•Civil service•Local authorities
Government
•Shareholders•Stockbrokers•Fund managers•Banks
Finance
•Staff•Trade union
representatives
Employees
Organisation
22Potentially Newsworthy Items
•New products•Research breakthrough • potentially new products•Large orders/contracts•Sponsorship•Price changes•Service changes•New logos•Export success
•Training awards•Winners of company contests•Promotions/new appointments•Success stories•Visits by famous people•Reports of interviews
•Conferences/seminars/exhibitions•Anniversaries of significant events
•Productivity achievements•Employment changes•Capital investments
•Financial statements•Acquisitions•Sales/profit achievements
Marketing issues:
Production issues:
Personnel issues:
General issues:
Financial issues:
23
SponsorshipA business relationship between a provider of funds, resources or services and an individual, event or organization which offers in return some rights and association that may be used for commercial advantage.
The five key principles of sponsorship are:
Gaining publicity
Creating entertainment opportunities
Fostering favourable brand and company associations
Improving community relations
Creating promotional opportunities
24
Specsavers
Specsavers has cleverly sponsored referees and has also been quick to build advertising
around major sporting controversies
Other Promotional Techniques
• Exhibitions
• Product Placement
• Ambient Advertising – På bussar och flygplan, väskor mm
• Guerrilla Marketing – T ex One Direction
26Chapter SummaryThe promotional mix consists of 7 elements, including advertising, sales promotions, direct and Internet marketing.Adopting an integrated approach toward the use of marketing communication enables firms to deliver a clear, consistent, credible and competitive message to the market place. It is important to adopt a systematic approach towards communication planning.Advertising is a highly visible component of the promotional mix. Sales promotions are a powerful technique for giving a short-term boost to sales. Publicity plays a very important role and has more credibility than other communication techniques say advertising.Sponsorship can generate publicity and foster favourable brand and company associations.Other important mass communications techniques include exhibitions, product placement, ambient marketing and guerrilla marketing.