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Chapter 11: Advertising, Integrated Marketing Communications, and the Changing Media Landscape

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  • 1. by Jeff Tanner and Mary Anne Raymond Principles of Marketing
  • 2. Chapter 11 Advertising, Integrated Marketing Communications, and the Changing Media Landscape ©2010 Flat World Knowledge, Inc.
  • 3. ©2010 Flat World Knowledge, Inc.
    • Learning Objectives
    • Understand what integrated marketing communications are.
    • Understand why organizations may change their promotional strategies to reach different audiences.
    Integrated Marketing Communications (IMC) and New Media
  • 4. IMC ©2010 Flat World Knowledge, Inc. Communications designed to deliver one consistent message to buyers!
  • 5. The Promotion (Communication) Mix
    • Learning Objectives
    • Outline the different components of the promotion mix.
    • Understand the different types of media and vehicles.
    ©2010 Flat World Knowledge, Inc.
  • 6. Promotional Mix Elements ©2010 Flat World Knowledge, Inc.
  • 7. Advertising
    • A paid, non-personal message to a mass audience.
    • Media used:
      • Print—newspapers, magazines
      • TV and radio
      • Internet
      • Social media—Facebook, Twitter, blogs
      • Mobile marketing
    ©2010 Flat World Knowledge, Inc.
  • 8. The Advertising Conundrum
    • It is generally recognized that as much as 50% of all advertising dollars is wasted.
    • The problem?
    • Knowing which 50% to cut!
    ©2010 Flat World Knowledge, Inc.
  • 9. Advertising Decisions
    • Which media gives the biggest bang for the buck?
    • The impact of advertising in most cases is difficult to measure except for coupons and rebates.
    • Different targeted markets require specific choices of vehicles to reach those markets.
    ©2010 Flat World Knowledge, Inc.
  • 10. Personal Selling
    • The most flexible and adaptive way to communicate is through personal selling.
    • The cost of personal sales limits its use to large transactions as in B2B markets.
    • Consumer personal selling may be found in such areas as Tupperware and Amway where the cost is borne by the seller.
    ©2010 Flat World Knowledge, Inc.
  • 11. Public Relations ©2010 Flat World Knowledge, Inc.
  • 12. Publicity Pro and Con
    • Publicity is a way of getting a message out in a manner that consumers feel is more believable since it comes through a third party.
    • The risk a company runs with publicity is that they lose control of the message, unlike advertising where control of the message is complete.
    ©2010 Flat World Knowledge, Inc.
  • 13. Sales Promotions
    • Several promotional types are used to increase sales and gain market share.
    • Coupons and rebates are most frequently used as customers respond to actions where they can reduce their costs.
    • Grocery retailers would like to eliminate the burden of dealing with coupons, but tests have shown that customers want the immediate cost savings, and producers like the increase in sales that coupons offer.
    ©2010 Flat World Knowledge, Inc.
  • 14. Direct Marketing
    • Delivering personalized promotional materials directly to consumers.
    • Delivery may come via mail, Internet, e-mail, telephone, or direct response advertising.
    • Allows targeting specific consumers through demographics and zip codes.
    • Because this approach is intrusive, prospects ignore attempts to reach them .
    ©2010 Flat World Knowledge, Inc.
  • 15. Telemarketing
    • Direct marketing by phone.
    • An effective technique for charitable organizations.
    • Consumers generally have a negative perception for telemarketing.
    • The Do Not Call Registry prevents calling to phone numbers registered with the FTC.
    • Most companies avoid this technique because of costs, perceptions, and the DNC registry.
    ©2010 Flat World Knowledge, Inc.
  • 16. Key Takeaways
    • The promotional mix consists of advertising, personal selling, public relations, sales promotions, and direct marketing.
    • Decisions are necessary regarding which media to use and then selecting the right vehicle.
    ©2010 Flat World Knowledge, Inc.
  • 17. The Promotion Budget
    • Learning Objectives
    • Understand the different ways in which promotional budgets are set.
    • Understand how the budget can be allocated among different media.
    ©2010 Flat World Knowledge, Inc.
  • 18. Setting the Promotion Budget
    • Simplest method—use last year’s % of sales.
    • Affordable method—allocate funds based on what can be made available.
    • Competitive parity method—budget funds comparative to competitor’s expenditures.
    • Objective and task method—establish a budget that is consistent with achieving the objectives and tasks cited in the marketing plan.
    ©2010 Flat World Knowledge, Inc.
  • 19. Allocating the Budget to Selected Media
    • The promotion budget needs to be spread among the various media for effective communication of product programs.
    • Typical choices are:
    • Print—newspapers and magazines
    • TV and radio
    • Internet
    • Outdoor—billboards, etc.
    • Mobile devices
    ©2010 Flat World Knowledge, Inc.