Relation to textThis slide relates to pages 4-5 of the text. Summary OverviewIn the past, the only advertising avenues were television, radio, billboards, and printed media. Ads in these media promoted the product or service for sale. Today, traditional media are used more and more to drive customers to online sites, where the information can be more detail, colorful, and interactive. Use of this slideUse this slide to discuss how traditional media is more and more often a “pointer” to an online device, because consumers are no longer passive message recipients. They want to be in control of the content they receive from the media, and they are seeking information, and entertainment, from a variety of sources.
Relation to Text: This slide relates to page 5 of the text. Summary Overview: The Volkswagen Punch Dub campaign shows how companies are now using integrated marketing communications (IMC) to reach their target audiences. Use of this Slide: Use this slide to discuss Volkswagen’s IMC mix: Traditional mass media Television, radio, print, billboards Social Media Commercials on YouTube Games and promotions on VW Website Facebook and Twitter connections You may wish to poll the class to see how many students have Facebook or Twitter accounts. Ask if they have ever seen commercials on these sites, and which (if any) were especially appealing or memorable.
Relation to Text: This slide relates to pages 3-5 of the text. Summary Overview: This is the Punch Dub game that was presented via the Volkswagen website. It was designed to be an entertaining and interactive experience. Use of this Slide: When showing this slide, ask students if they have played this game. Solicit comments on whether they found it entertaining and memorable. See if they can recall other sites that offered such games. This is a good point at which to show the following videos: Wendy’s “Fluffy Bun” commercial, which falls into the category of “entertaining.” This is an older commercial that, in it’s day, went the equivalent of “viral.” “Where’s the beef?” became an all-purpose phrase questioning the substance of an idea, event, or product. Charmin’s NYC Restroom Experience. This advertising event has to be one of the most interactive of all times. Customers actually used Charmin products in a public restroom, and could then go online to play the Roll Toss Game, locate Charmin restrooms, download free promotional tunes, and so forth. Charmin garnered additional press by having actress Molly Shannon perform the first ceremonial “flush” at the NYC location grand opening.
Relation to textThis slide relates to “The Growth of Advertising and Promotion” topic on pages 5-6 of the text. Summary OverviewThis slide explains that advertising and promotion have become an integral part of our social and economic systems, and how it has grown six-fold in the past 30 years. Use of this slideThis slide can be used to discuss how consumers have learned to rely on advertising and other forms of promotion for information that they can use to make purchasing decisions. Point out new channels through which products and services can be marketed, such as the Internet, social websites, and mobile devices.
Relation to Text: This slide relates to pages 6-7 of the text. Summary Overview: This slide shows for-profit uses of marketing, as well as non-profit uses. Use of this Slide: While showing this slide, ask students if they have ever donate to a non-profit cause, such as the Haiti relief effort, via the Internet. Ask them if they prefer an Internet solicitation over a phone call. Why? Does the method by which they are asked to donate influence how much (or little) they donate? This is a good time to show the San Diego State University video, Aztec for Life, which highlights the life-long, intangible social and psychological satisfaction of attending the college.
Relation to textThis slide relates to material found on page 7 of the text. Summary OverviewThis slide presents the revised definition of Marketing developed by the American Marketing Association in 2007. This revised definition is viewed as being more reflective of the role of non-marketers to the marketing process. It also recognizes the role marketing plays in the process of creating, communicating, and delivering value to customers, as well as society at large. Use of this slideThis slide can be used to introduce the new definition of Marketing developed by the AMA and some of the key aspects of marketing, which include: Creating, communicating and delivering value Focusing on customer relationships
Relation to Text: This slide relates to page 7 of the text. Summary Overview: This slide defines value in a product or service, as well as the benefits a consumer may experience. Use of this Slide: Use this slide to discuss how consumers determine the value of a product. Present examples, and ask students which items would have the most value for them. For example, would they rather have (a) a day off from school, (b) a 10-point curve on the next test, or (c) a free snack during class? Then ask them if the benefit of their choice was functional, experiential, or psychological.
Relation to textThis slide relates pages 7-8 of the text. Summary OverviewThis slide presents the four key elements of marketing. Use of this slideThis slide can be used when explaining that a proper marketing mix does not just happen. Marketers must understand the issues and options involved in each element of the mix, and how these elements can be combined to form an effective marketing program. Real estate agents, for example, often place a sign in front of the property to be sold in order to attract drive-by customers. They also place ads in newspapers or real-estate guides, and enter all the pertinent information into online databases so consumers can search for the properties that meet their individual needs. Larger real estate firms, or those with high-end properties for sale, sometimes advertise them on television as well.
Relation to textThis slide relates to material on pages 8-9 of the text. Summary OverviewThis slide shows the contemporary approach to advertising and promotion, which began in the 1980s. This approach coordinates the various promotional elements and marketing activities that communicate with a firm’s customers. Use of this slideThis slide can be used to show the contemporary approach to marketing communications, which is coordinated, consistent, and presents a unified image in the marketplace. The connected puzzle pieces demonstrate how various IMC tools are coordinated with traditional media advertising to create a unified, effective communications program. Per the American Association of Advertising, such an approach provides clarity, consistency, and maximum communications impact. Prior to the 1980s, most marketing and promotional functions were planned and managed separately. They had different budgets, views of the market, goals, and objectives, which resulted in a lack of coordination, consistency, and synergy.
Relation to Text: This slide relates to pages 10-12 of the text. Summary Overview: This slide presents the value behind an IMC program, as well as the trends that caused companies to adopt the IMC approach. Use of this Slide: Use this slide to present the key benefits of an IMC approach to marketing. Then discuss key factors in the environment prompted marketers to change to an IMC strategy. All of which resulted in an evolution to micromarketing, as the mass audience once tied to network television fragments at an accelerating pace. The Internet is luring away television viewers, but television itself is splintering into more and more specialized channels.
Relation to Text: This slide relates to pages 13-15 of the text. Summary Overview: This slide presents some of the driving forces behind today’s marketing revolution. Use of this Slide: When showing this slide, make some of these key points about the marketing revolution: Traditional media is too expensive and is not cost-effective Companies are using more targeted communication tools Consumers are less responsive to traditional media Product placement is replacing commercials The Internet has 1.8 billion users, including 75% of U.S. households Small, local businesses are being replaced with mega-retailers, like Walmart, who are demanding more fees and allowances Databases contain extensive customer profiles (name, geographic/ demographic/psychographic profiles, purchase patterns, media preferences, financial information, and so on.) Ad agencies are being held to objective measures, such as sales, market share, and profitability.
Relation to textThis slide relates to material found on pages 15-16 of the text. Summary OverviewWith more and more products and services available to consumers, developing and maintaining brand identity is becoming increasingly important. Well-known brands have a major competitive advantage in today’s marketplace. A well-defined and coordinated IMC plan contributes to overall brand identity and equity. Use of this slideThis slide can be used to explain that brand identity is a combination of many factors, including the name, logo, symbols, design, packaging, and performance of a product or service… as well as the image or associations that come to mind when consumers think about a brand.
Relation to Text: This slide relates to pages 15-17 of the text. Summary Overview: This slide details the effects that a recession has on consumers. Use of this Slide: Use this slide when discussing the impact of a recession on consumer behavior. Point out that research shows that 80 to 90 percent of consumers are willing to trade off or down, in order to save money. Companies in virtually every product and service category are discovering that their brands are not recession-proof.
Relation to Text: This slide relates to pages 15-17 of the text. Summary Overview: This slide details the effects that a recession has on companies Use of this Slide: Use this slide to present the effect that a recession and changing consumer behavior has on companies. In particular, how do these companies keep customers who are suddenly more price sensitive and value conscious? How do they balance smaller advertising and promotion budgets with the need to convince consumers of the value of their brands? Possible class discussions: Was developing the “dollar menu” a good move for fast food businesses? Do you think these discount menus will remain after the economy recovers? Will banks, mortgage companies, and other financial institutions have a tougher time rebuilding their brands than, say, a grocery store chain? If your advertising budget was smaller, but you needed to reach a larger audience, how might you adjust your advertising campaign/mix?
Relation to Text: This slide relates to pages 17-25 of the text. Summary Overview: This slide identifies the basic tools used to accomplish an organization’s communication objectives. Use of this Slide: Use this slide to introduce students to the basic tools available to organizations that which to set up channels of information and persuasion, in order to sell goods and services or promote an idea. These tools are known as the “promotional mix.”
Relation to Text: This slide relates to pages 18-19 of the text. Summary Overview: This slide presents a definition of “advertising.” Use of this Slide: Key points to mention: The “paid” aspect of this definition reflects the fact that the space or time for an ad message must be bought. The occasional exception to this is the Public Service Announcement, whose time or space may be donated. Nonpersonal means that the message is delivered to a large group of individuals, often at the same time. It also means that there is no opportunity for immediate feedback from the recipient(s).
Relation to Text: This slide relates to page 18 of the text. Summary Overview: This slide identifies various forms of mass media and details the benefits of using them. Use of this Slide: Use this slide to explain that media advertising is still the most cost-effective way to reach large numbers of consumers. Examples: The average 30-second commercial on the four major television networks during prime-time programming reaches nearly 5 million households. Cost per 1000 households in 2009/2010 was $22.72. Magazines like Time, Sports Illustrated, or People have a circulation of 3 million, but can reach more than 10 million due to multiple readers There is no cost effective substitute for media advertising
Relation to Text: This slide relates to page 20 of the text. Summary Overview: This slide presents the various classifications of advertising. Use of this Slide: Use this slide to explain various kinds of consumer & business/professional markets. Consumer Markets: National ads… done by large companies on a nationwide or regional basis. The goal is to remind consumers of the company, brand, or products and services. Retail/Local ads… Done by retailers or local merchants to encourage shopping at a specific store or establishment. Primary vs. Selective demand… Primary demand is designed to stimulate demand for a general product class or industry. Selective demand focuses on creating demand for a specific company’s brands. Business and Professional Markets: B2B ads… target individuals who buy industrial goods or services. Professional ads… target professionals, like doctors, lawyers, dentists, and engineers. Trade ads… target marketing channel members, such as wholesalers, distributors, and retailers.
Relation to Text: This slide relates to pages 19 and 21 of the text. Summary Overview: This slide show the various forms of marketing through which direct sales take place. Use of this Slide: Use this slide to explain these forms of direct marketing: Direct mail… letters, postcards, videos. Catalogs… mailed or available for pickup at stores. Direct response ads… any ad that prompts the consumer to purchase direct from the manufacturer. Dell has been very successful at this. Telemarketing… contacting consumers by phone to sell them something or to qualify them as sales leads. Direct selling… Avon, Tupperware, Amway. Databases… vast stores of information on consumers, including their names, addresses, financial information, shopping habits. Shopping channels… such as the Home Shopping Network. Internet sales… companies like Under Armour, Land’s End, and J. Crew sell products online as well as through retail channels.
Relation to Text: This slide relates to Exhibit 1-8 on page 21 of the text. Summary Overview: This slide shows the home page of Under Armour’s website, through which consumers may purchase directly from the company. Use of this Slide: Use this slide to demonstrate a direct-sales website, and discuss online shopping. Ask students if they have ever purchased from Under Armour. From other companies? What was their motivation for shopping online versus visiting a store? What are some of the advantages and disadvantages of shopping online?
Relation to Text: This slide relates to page 21 of the text. Summary Overview: This slide portrays the major tools of direct marketing, as well as the forces behind the shift to direct marketing. Use of this Slide: Use this slide to point out why direct-response advertising and other forms of direct marketing have become so popular over the past 20 years: Changing lifestyles, particularly the increase in two-income households. More discretionary income, but less time for in-store shopping. Availability of credit cards and toll-free phone numbers Rapid growth of the Internet
Relation to Text: This slide relates to pages 21 and 22 of the text. Summary Overview: This slide presents various forms of interactive media. Use of this Slide: Use this slide to discuss various forms of interactive media available to companies today. Explain that these media allow a back-and-forth flow of information, whereby users can participate in and modify the form and content of the information. This occurs in real time. Unlike traditional forms of media, the new media allow consumers to make inquiries, respond to questions, make purchases, and obtain online purchasing assistance. Cell phones and other mobile devices have opened up a new way for marketers to connect with consumers. Although mobile advertising is in the beginning stages, it is expected to grow to $2 billion by 2012. Novel uses for mobile communication include price comparison apps, brand-specific games and videos, and location-specific coupons.
Relation to Text: This slide relates to pages 22 and 23 of the text. Summary Overview: This slide presents ways in which the Internet can be used as a marketing tool. Use of this Slide: Use this slide to discuss ways that the Internet can be used as a marketing tool. Students should be very familiar with this medium, so you may want to ask such things as: Which search engine do you use most often, and why? Do you ever enroll in online contests or sweepstakes? Do you have your own website? If so, do you sell anything? How much traffic does your site get, and how do you drive traffic there?
Relation to Text: This slide relates to pages 23 and 24 of the text. Summary Overview: This slide presents the definition of a sales promotion. Use of this Slide: Use this slide when discussing the next variable in the promotional mix, sales promotion, which is those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer. A sales promotion can stimulate immediate sales, and are generally broken into two categories… consumer-oriented and trade-oriented. (See next slide)
Relation to Text: This slide relates to page 23 of the text. Summary Overview: This slide presents the differences between consumer- and trade-oriented promotions. Use of this Slide: Use this slide to present the differences between consumer- and trade-oriented promotions. Consumer-oriented Couponing, sampling, premiums, rebates, contests, sweepstakes, POP materials Encourages immediate purchases Trade-oriented Targeted toward wholesalers, distributors, and retailers Promotional/merchandising allowances, price deals, sales contests, trade shows Among consumer packaged-goods companies, sales promotion is often 60-70% of the promotional budget. This represents a shift in promotional strategy, because consumers now have less brand loyalty and are more price sensitive. Retailers have also become larger and more powerful, and are demanding more trade promotion support from companies.
Relation to Text: This slide relates to pages 24 and 25 of the text. Summary Overview: This slide defines publicity, and gives its advantages and disadvantages. Use of this Slide: Use this slide to discuss recent news stories, both positive and negative, about major companies. Ask students how much control they feel these companies had over the content of the stories. If negative, were they able to mitigate some of the damage? If positive, did it bring them any additional benefits, such as increased business or donations ? It may also be enlightening to take a poll of students to see how many felt that a particular story was damaging to the target’s reputation, had limited impact, or had no impact whatsoever.
Relation to Text: This slide relates to page 25 of the text. Summary Overview: This slide defines public relations and presents its primary objective. Use of this Slide: Use this slide to explain that public relations has a broader objective than publicity; its purpose is to establish and maintain a positive image of the company among its various publics.
Relation to Text: This slide relates to page 25 and Exhibit 1-12 of the text. Summary Overview: This ad is part of the American Honda Motor Company’s “Value to America” campaign. Use of this Slide: This ad publicizes how Honda has been a major contributor to the U.S. economy for over 50 years. It notes the opening of Honda’s 10th U.S. plant, which created more than 2,000 new jobs, and notes that the company now manufactures over 80 percent of the vehicles it sells in the United States.
Relation to Text: This slide relates to page 25 of the text. Summary Overview: This slide presents the final element or an organization’s promotional mix… personal selling. Use of this Slide: Use this slide to illustrate that personal selling is a form a person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company’s product or service or to act on an idea. This interaction allows the marketer to see or hear the potential buyer’s reactions and modify the message accordingly. Personal selling is not a direct part of the IMC program in most companies and is not under the control of the advertising or marketing communications manager.
Relation to Text: This slide relates to Figure 1-5 on page 26 of the text. Summary Overview: This figure illustrates various IMC audience contact tools. Use of this Slide: Use this slide to illustrate that there are additional ways companies communicate with current and prospective customer that extend beyond the traditional promotional mix. Product placements, word-of-mouth, and point-of-purchase displays are a few of those ways. Each and every opportunity a customer has to see or hear about a company and/or its brands, or has an encounter or experience with it, is a contact (touch) point.
Relation to Text: This slide relates to pages 26-27 of the text and Figure 1-6. Summary Overview: This slide presents the four basic categories of touch points. Use of this Slide: Use this slide to discuss the four basic contact or touch points: Unexpected… unanticipated references or information about a company or brand that a customer or prospect receives that is beyond the control of the organization. For example, a word-of-mouth message, or a website that hosts product reviews. Customer-initiated… occurs whenever a customer or prospect contacts the company. Many involve inquiries or complaints. Intrinsic… interactions that occur with a company or brand during the process of buying or using the product or service, such as discussions with retail sales personnel. These touch points are not under the control of the company. Company created… planned marketing communication messages created by the company. This includes ads, websites, news/press releases, packaging, brochures and collateral material, sale promotions, point-of-purchase displays, and in-store décor.
Relation to Text: This slide relates to page 28 of the text and Figure 1-7. Summary Overview: This slide presents the four major processes required of an IMC program for it to effectively communicate with target audiences. Use of this Slide: Use this slide when explaining to students that the Integrated Marketing Communications Plan provides the framework for developing, implementing, and controlling the IMC program. Those involved with the program must: Decide on the role and function of the specific elements of the promotional mix Develop strategies for each element Determine how they will be integrated Plan their implementation Consider how to evaluate the results achieves, and Make any necessary adjustments
Relation to Text: This slide relates to page 29 of the text. Summary Overview: This slide lists the five basic elements included in most marketing plans. Use of this Slide: Use this slide to review the five basic elements included in most marketing plans: A detailed situational analysis that consists of an internal marketing audit/review, and an external analysis of the competition and the environment. Specific marketing objectives that provide direction, a time frame for marketing activities, and a mechanism for measuring performance. A marketing strategy and program that include selection of target market(s) and decisions/plans for the four elements of the marketing mix. A program for implementing the marketing strategy, including determining specific tasks and responsibilities. A process for monitoring and evaluating performance, and then providing feedback, so control can be maintained and both strategy and tactics can be adjusted.
Relation to Text: This slide relates to pages 29-33 of the text. Summary Overview: This slide presents a list of things that must be analyzed prior to initiating a promotional program. Use of this Slide: Use this slide to go over the factors that influence or are relevant to the development of a promotional strategy. The internal factors are fairly intuitive: What are the strengths and weaknesses of the product or service Its advantages and disadvantages Unique selling points or benefits Packaging, price, and design Key points about the external analysis: Characteristics of the firm’s customers, including their perceptions, attitudes, lifestyles, and criteria for making purchase decisions Market segments Positioning strategies Competitors
Relation to Text: This slide relates to pages 33 and 34 of the text. Summary Overview: This slide outlines the basic communication decisions that must be made. Use of this Slide: Use this slide to explain that this stage of the promotional planning process examines how a company can effectively communicate with consumers in target markets. Here are some things that must be considered: What process will consumers go through when responding to marketing communications? The process response when a consumer has a high level of interest varies from low-interest or routine decisions. Which source, message, and communication channels should be used? For example, should a celebrity spokesperson be used? What media mix should be used, and what are the costs of each channel? What is the overall marketing objective, in terms of sales, market share, or profitability? What does the firm hope to accomplish with its promotional program (the communication objective)?
Relation to Text: This slide relates to page 34 of the text. Summary Overview: This slide identifies the two questions that must be answered before an IMC program can be implemented. Use of this Slide: Use this slide to illustrate that the over-riding decision in any promotional campaign is budget. How much will the promotional program cost, and how will the money be allocated. Ideally, the amount spent on promotion is determined by what must be done to accomplish the communication objectives. In reality, promotional budgets are often determined by how much money is available, or a percentage of sales revenue.
Relation to Text: This slide relates to pages 34 and 35 of the text. Summary Overview: This slide identifies two important aspects of the advertising program… the creative strategy and the media strategy. Use of this Slide: Use this slide when discussing the creative and media strategies behind an IMC program. Creative strategy… involves determining the basic appeal and message the advertiser wishes to convey to the target audience. Media strategy… involves determining which communication channels will be used to deliver the advertising message to the target audience. This task requires careful evaluation of the media options’ advantages and limitations, costs, and ability to deliver the message effectively to the target audience.
Relation to Text: This slide relates to page 35 of the text. Summary Overview: This slide presents the final stage of the IMC planning process. Use of this Slide: Use this slide when discussing the final stage of the IMC planning process… monitoring, evaluating, and controlling the promotional program. All of which are designed to provide managers with continual feedback concerning the effectiveness of the IMC program, which in turn can be used as input into the planning process.
The Modern World of Marketing
• Rapidly changing media environment
• Mass media losing viewers, readers,
• Digital media targets narrow audience
• Consumers not content to be passive
• Information now obtained from a myriad
• Entertaining, interactive information
The Growth of Advertising and Promotion
• Integral part of social and economic
• Carefully prepared messages delivered
to carefully targeted audiences
• Six-fold increase between 1980 and 2010
• New marketing channels
• Internet ads (banner ads, videos,
• Social media
• Mobile marketing
The Role of Marketing
Inform customers of a
product or service
Convince them of its
ability to satisfy their
wants or needs
Help develop and
What is Marketing?
The activity, set of institutions, and
creating, communicating, delivering,
and exchanging offerings that have…
value for customers, clients, partners,
and society at large
What is Value?
• Customer’s perception
of all the benefits of a
product or service
• Weighed against
costs of acquiring
and consuming it
• Benefits can be…
The Marketing Mix
• The Four Ps
Contemporary IMC Approach
Growing Importance of IMC
• Value of IMC
• Avoids duplication of marketing efforts
• Synergy among promotional tools
• More efficient and effective marketing
• Rapidly changing environment
• Consumer behavior
• Media consumption behavior
• Proliferation of media
The Marketing Revolution
Shift from traditional media ads to other forms
of promotion/nontraditional media
Internet and social media changing how
companies interact with consumers
Power shift: manufacturers to retailers
Greater ad agency accountability
Changes in how ad agencies are compensated
The Role of IMC in Branding
Building Brands in a Recession
Spend less money
Carefully scrutinize purchases
Rethink brand loyalties
Willing to trade off or down
More price sensitive
More value conscious
Building Brands in a Recession
Reduce advertising budgets
Balance discounts/promos w/brand image
Must overcome consumer distrust
Change product marketing focus
Increase online social presence
Look for new ways to remain relevant
Test Your Knowledge
Why are marketers decreasing the use of mass media
advertising and increasing the use of integrated
A) The mass market has become fragmented
B) New technologies gave consumers greater
control over the communication process
C) Use of the Internet and electronic commerce
D) Explosive growth in social networking
E) All of the above
The Promotional Mix
• Paid, nonpersonal communication
• About an organization, product,
service, or idea
• With an identified sponsor
• No immediate feedback from audience
• Mass media
• Cost effective
• Large audiences
Forms of Direct Marketing
Direct MailDirect Mail
Direct SellingDirect Selling
Direct Response Advertising
• Encourages consumers to purchase
directly from the manufacturer
Direct Response Advertising
Forces for Change
Rapid Internet Growth
• Interactive media
• Interactive television
• Cell phones
• Other mobile devices
• Internet activities
• Advertise products and services
• Link ads and websites to search engines
• Offer coupons, contests, sweepstakes
• Conduct direct marketing
• Do personal selling
• Conduct public relations activities
• Measure advertising and promotions
Marketing activities that provide
extra value or incentives to the…
High credibility and
High credibility and
Not always under
Not always under
A news story,
a mass audience
A news story,
a mass audience
Not directly paid for
or run under
• Management function
• Evaluates public attitudes
• Identifies items of public interest
• Executes a program of action to earn
public understanding and acceptance
• Primary objectives
• Establish and maintain a positive image
of the company among various publics
• Uses publicity and
• Special publications
• Community activities
• Fund-raising events
• Public affairs
• Person-to-person communication
• A seller attempts to assist and/or
persuade prospective buyers to make a
purchase or act on an idea
IMC Planning Model
Promotional program situation analysis
Analysis of the communications process
Develop integrated marketing communications programs
Review of marketing plan
Integrate and implement marketing communications strategies
Monitor, evaluate and control IMC Program
Elements of a Marketing Plan
Detailed situation analysis
Marketing strategy and program
Specific marketing objectives
Program for implementing the strategy
Process for monitoring & evaluating performance
Promotional Program Situational Analysis
Review of previous
programs and results
Assess strengths and
weaknesses of product
Analysis of Communications Process
• Communication decisions
• Source and message
• Communication channels
• Media mix
• Marketing goals
• Communication objectives
• What will the promotional program cost?
• How will the money be allocated?
Developing the IMC Program
Monitoring, Evaluation, Control
Determine how well the program
is doing, and why
Continual management feedback
Input for future promotions/strategies