Integrated Marketing Communications

• Advertising

• Sales Promotion

• Publicity

• Personal Selling

• Web 2.0/Social Media

Advertising

• Marketing decisions• Account executive

• Creative decisions• Copywriter• Graphic designer

• Media decisions• Media planner

• Assessment decisions

Advertising

• Marketing decisions– Objective (Response Hierarchy)

• Cognitive• Affective• Behavioral

– Message• Generic strategy, positioning, CBP• Other message

– Target

• http://www.youtube.com/watch?v=wtaXjzQQGE8

Advertising

• Creative decisions– Source

– Company– Spokesperson

– Encoding• Break through clutter• Receive attention• Speaks to target

– Appeal (Ex 17.1, p280)• Rational• Emotional (humor, fear, sex, etc.)

– Execution (Ex 17.2, p281)• Slice of life, lifestyle, testimonial,

musical, personality symbol, technical expertise, etc., etc.

Advertising

• Media decisions– Types

• Television (network, cable)• Radio• Magazines• Newspapers• Outdoor• Internet• Other

– Direct marketing– Directories

– Advantages/disadvantages • Exhibit 17.3, p283

Advertising

• Media decisions– Objectives

• Reach• Frequency

– Vehicles• Cost• Audience attention• Audience quality• Editorial quality

• Assessment decisions– Back to objectives

Sales Promotion

• Value-adding incentives offered by organization to:– Obtain consumer response– Induce trade response– Motivate salesforce

• Value equation– Value = Benefits

Price– Typically, a sales promotion

increases value by:• Increasing benefits• Decreasing price

Sales Promotion

• Trend toward sales promotion– Budget breakdown

• Advertising 25%• Consumer promotion 25%• Trade promotion 50%

– Reasons• Balance of power transfer• Increased brand parity, less

brand loyalty• Splintering of mass market,

reduced media effectiveness, clutter

• Responsiveness• Measurability

Sales Promotion

• Capabilities– By itself, no long-term, compelling

reason to buy– Consumers

• Induce trial• Invigorate mature brand• Encourage repeat purchases• Loading• Counter competitive efforts• Attract attention• Obtain goodwill

– Trade• Introduce new products• Obtain shelf space, retail support• Motivate sales force

Sales Promotion

• Consumer techniques– Price reductions– Price packs

• Multiple unit• Bonus packs

– Refunds/rebates– Coupons– Cross-promotions– Tie-ins

– Products– Creative

– Events• Existing (sponsorship)• Created

– Contests, sweepstakes, games

Sales Promotion

• Consumer techniques– Premiums

• In-pack, on-pack, close-by, container

– Sampling, trial sizes– Specialties– Loyalty programs

Sales Promotion

• Trade techniques– Trade allowances

• Quantity discount• Price-off allowance

– Display– Co-op advertising– Sales training, etc.

– Dealer loaders• Gifts, premiums for purchasing in

quantity, performing services– Trade contests– Merchandising (POS/POP)

materials• Quality/appearance, fit with store,

likely to move merchandise?– Trade shows

Publicity

• Public Relations– Communication with “publics” of

organization– Publicity is sub-field dealing with

media and word-of-mouth

• Proactive– News releases

• Print, video, press kits• News contacts• Of interest

– Press conferences– Media tours/links– Access for media– Alignment with eventsts, sales

promotions, etc.

Publicity

• Reactive– Crisis management– Collect facts– Don’t stonewall– Single spokesperson– Do the right thing

Personal Selling

• Only personal two-way communication mechanism

• Relationship marketing– Identify customer’s needs– Match to your organization’s

offerings (if possible)– Convince customer of match

• Sales positions– Inside (order-taking)

• Phone, retail, brokers– Outside (creative)– Other

• Missionary, installation, after-sale service

Personal Selling

• Process– Prospecting and qualifying

• Cold-calling• Secondary sources• Help from firm

– Pre-approach• Further research• Key players and decision-

makers• Call objectives

– Approach• Meet & greet

Personal Selling

• Process– Presentation

• Story• Need/satisfaction approach• Listening (75%)• Demonstration

– Handling objections• Seek out, clarify• Preparation

– Closing• Seeking and gaining commitment• Process, not manipulation

– Follow-up• Ensure satisfaction• Continue relationship

Personal Selling

• Sales management– Territories

• Geography, product, customer, sales task, etc.

– Personnel• Special traits of salespeople• High turnover• Selection, motivation, and

retention– Compensation

• Salary (base) vs. commission• Quotas and bonuses