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Promotional Strategy
MKT4230
An Introduction to
Integrated Marketing
Communications
Patricia Knowles, Ph.D.
Associate Professor
Clemson University
1
2
Promotional Strategy
MKT4230
2
The Modern World of Marketing
In the past, the only advertising avenues
were television, radio, billboards, and
printed media. Ads in these media
promoted the product or service for sale.
Textbook
Pages 4 - 5
Rapidly changing media environment:
Mass media losing viewers, readers, listeners
Digital media targets narrow audience
Consumers not content to be passive message recipients
Information now obtained from a myriad of sources
Today, traditional media are used more and
more to drive customers to online sites,
where the information can be more detail,
colorful, and interactive.
3
Promotional Strategy
MKT4230
3
Volkswagen Strategy
The Volkswagen Punch Dub campaign shows how companies are now using integrated
marketing communications (IMC) to reach their target audiences.
Textbook
Page 5
Integrated
Marketing
Strategy
Traditional
Mass
Media
Social
Media
Sports Team
Sponsor
Point-of-
Sale Kits
4
Promotional Strategy
MKT4230
4
Punch Dub
This is the Punch Dub game
that was presented via the
Volkswagen website.
It was designed to be an
entertaining and interactive
experience.
Textbook
Pages 3 - 5
Entertaining, Interactive Information
5
Promotional Strategy
MKT4230
5
The Growth of Advertising and Promotion
Advertising and promotion have become an integral part of our social and economic systems.
It has grown six-fold in the past 30 years.
Textbook
Pages 5 - 6
Integral Part of Social and Economic
Systems
Carefully prepared messages delivered
to carefully targeted audiences
Six-fold increase between 1980 and 2010
New Marketing Channels
Internet ads
(banner ads, videos, webisodes)
Social media
Mobile marketing
6
Promotional Strategy
MKT4230
6
The Role of Marketing
There are for-profit and non-profit uses of marketing.
Textbook
Pages 6 - 7
Advertising and Promotion
Inform customers of a product or
service
Convince them of its ability to
satisfy their wants or needs
Help develop and sustain
relationships
Nonprofit Organizations
Solicit donations
Offer intangible social and
psychological satisfactions
7
Promotional Strategy
MKT4230
7
What is Marketing?
This is 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.
Textbook
Page 7
The activity, set of institutions, and processes for…
creating, communicating, delivering, and exchanging offerings that have…
value for customers, clients, partners, and society at large
8
Promotional Strategy
MKT4230
8
What is Valued?
There is value in a product, service, and benefits a consumer may experience.
Textbook
Page 7
Customer’s perception of all the benefits of a product or
service weighed against costs of acquiring and
consuming it.
Benefits can be…
• Functional
• Experiential
• Psychological
9
Promotional Strategy
MKT4230
9
The Marketing Mix
The four key elements of marketing.
Textbook
Pages 7 - 8
The Four Ps
Product
Price
Place
Promotion
10
Promotional Strategy
MKT4230
10
Contemporary IMC Approach
The contemporary approach to advertising and promotion began in the 1980s. This approach
coordinates the various promotional elements and marketing activities that communicate
with a firm’s customers.
Textbook
Pages 8 - 9
Point of
Purchase
Publicity
Interactive
Marketing
Public
Relations
Direct
Marketing
Special
Events
Packaging
Sales
Promotion
Direct
Response
Mass
Media
Advertising
11
Promotional Strategy
MKT4230
11
Growing Importance of IMC
Here is the value behind an IMC program, as well as the trends that caused companies to
adopt the IMC approach.
Textbook
Pages 10 - 12
Value of IMC
Avoids duplication of marketing efforts
Synergy among promotional tools
More efficient and effective marketing
Rapidly Changing Environment
Consumer behavior
Technology
Media consumption behavior
Proliferation of media
12
Promotional Strategy
MKT4230
12
The Marketing Revolution
Here are some of the driving forces behind today’s marketing revolution.
Textbook
Pages 13 - 15
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
Database marketing
Greater ad agency accountability
Changes in how ad agencies are compensated
13
Promotional Strategy
MKT4230
13
The Role of IMC in Branding
With 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.
Textbook
Pages 15 - 16
Brand
Identity
Image or
Associations
Performance
Name Packaging
Logo Design
Symbols
14
Promotional Strategy
MKT4230
14
Building Brands in a Recession
Here are the effects that a recession has on consumers.
Textbook
Pages 15 - 17
Consumers
Spend less money
Carefully scrutinize purchases
Rethink brand loyalties
Willing to trade off or down
More price sensitive
More value conscious
15
Promotional Strategy
MKT4230
15
Building Brands in a Recession
Here are the effects that a recession has on companies.
Textbook
Pages 15 - 17
Companies
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
16
Promotional Strategy
MKT4230
16
Test Your Knowledge
Why are marketers decreasing the use of mass media advertising and increasing the use of
integrated marketing communications?
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 is growing
D. Explosive growth in social networking
E. All of the above
17
Promotional Strategy
MKT4230
17
The Promotional Mix
Here are the basic tools used to accomplish an organization’s communication objectives.
Textbook
Pages 17 - 25
Interactive/
Internet
Marketing
Advertising
Direct
Marketing
Personal Selling
Sales
Promotion
Publicity/
Public Relations
18
Promotional Strategy
MKT4230
18
Advertising
This is the definition of “advertising.”
Textbook
Pages 18 - 19
Paid, non-personal communication...
• About an organization, product,
service, or idea
• With an identified sponsor
• No immediate feedback from audience
19
Promotional Strategy
MKT4230
19
Non-Personal Media
Various forms of mass media and details of the benefits of using them.
Textbook
Page 18
Mass Media
• TV
• Radio
• Magazines
• Newspapers
Benefits
• Cost effective
• Large audiences
20
Promotional Strategy
MKT4230
20
Advertising Classifications
Various classifications of advertising.
Textbook
Page 20
Primary / Selective Demand
Business-to-Business
Organizations
National
Retail / Local
Professional
Trade
Consumers
21
Promotional Strategy
MKT4230
21
Forms of Direct Marketing
Here are various forms of marketing through which direct sales take place.
Textbook
Pages 19 - 21
Direct Response
Ads
Direct
Mail
Catalogs
Database
Management
Telemarketing
Direct
Selling
Internet
Sales
Shopping
Channels
22
Promotional Strategy
MKT4230
22
Direct Response Advertising
Home page of Under Armour’s website through which consumers may purchase directly
from the company.
Textbook
Page 21 / Exhibit 1 - 8
23
Promotional Strategy
MKT4230
23
Direct Response Advertising
Major tools of direct marketing, as well as the forces behind the shift to direct marketing.
Textbook
Page 21
Major Tools
Direct Mail
Television
Magazines
Internet
Forces for Change
Changing Lifestyles
Credit Cards
Toll-free Numbers
Rapid Internet Growth
24
Promotional Strategy
MKT4230
24
Interactive Marketing
Various forms of interactive media.
Textbook
Pages 21 - 22
Interactive Media
• Internet
• Kiosks
• Interactive Television
• Cell Phones
• Other Mobile Devices
25
Promotional Strategy
MKT4230
25
Interactive Marketing
Ways in which the Internet can be used as a marketing tool.
Textbook
Pages 22 - 23
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
26
Promotional Strategy
MKT4230
26
Sales Promotion
Definition of sales promotion.
Textbook
Pages 23 - 24
Marketing activities that provide
extra value or incentives to the…
Sales Force
Retailers
Ultimate
Consumer
27
Promotional Strategy
MKT4230
27
Consumer vs Trade Promotions
Differences between consumer and trade-oriented promotions.
Textbook
Page 23
Consumer-Oriented
Trade-Oriented
Couponing, sampling, premiums, rebates, contests,
sweepstakes, POP materials
Wholesalers, distributors, retailers
Encourages immediate purchases
Promotional/merchandising allowances, price deals,
sales contests, trade shows
28
Promotional Strategy
MKT4230
28
Publicity
Definition of publicity, as well as its advantages and disadvantages.
Textbook
Page 24 - 25
High credibility and low cost
Not always under company
control
Is sometimes unfavorable
A news story, editorial, or
announcement to a mass
audience
Not directly paid for
or run under
identified sponsor
29
Promotional Strategy
MKT4230
29
Public Relations
Definition of public relations and its primary objective.
Textbook
Page 25
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
30
Promotional Strategy
MKT4230
30
Public Relations
This ad is part of the American Honda Motor Company’s “Value to America” campaign.
Uses publicity and other tools
• Special publications
• Community activities
• Fund-raising events
• Sponsorships
• Public affairs activities
Textbook
Page 25 / Exhibit 1 - 12
31
Promotional Strategy
MKT4230
31
Public Relations
The final element or an organization’s promotional mix… personal selling.
Textbook
Page 25
Person-to-Person Communication
A seller attempts to assist and/or persuade prospective buyers to make a purchase
or act on an idea
32
Promotional Strategy
MKT4230
32
IMC Audience Contact Tools
This figure illustrates various IMC audience contact tools.
Textbook
Page 26 / Figure 1 - 5
33
Promotional Strategy
MKT4230
33
Touch Points: Control vs Impact
Here are the four basic categories of touch points.
Textbook
Page 26 - 27 / Figure 1 - 6
34
Promotional Strategy
MKT4230
34
IMC Planning Model
Textbook
Page 28 / Figure 1 - 7
Advertising
Sales
promotion
PR/
publicity
Personal
selling
Direct
marketing
Advertising
objectives
Sales
promotion
objectives
PR/
publicity
objectives
Personal
selling
objectives
Direct
marketing
objectives
Message
strategy
Sales
promotion
strategy
PR/
publicity
strategy
Personal
selling
strategy
Direct
marketing
strategy
Integrate and implement marketing communications strategies
Monitor, evaluate and control IMC Program
Internet/
interactive
Internet/
interactive
objectives
Internet/
interactive
strategy
Promotional program situation analysis
Analysis of the communications process
Budget determination
Develop integrated marketing communications programs
Review of marketing plan
35
Promotional Strategy
MKT4230
35
Elements of a Marketing Plan
The five basic elements included in most marketing plans.
Textbook
Page 29
Detailed situation analysis
Marketing strategy and program
Specific marketing objectives
Program for implementing the strategy
Process for monitoring & evaluating performance
36
Promotional Strategy
MKT4230
36
Promotional Program Situational Analysis
A list of things that must be analyzed prior to initiating a promotional program.
Textbook
Pages 29 - 33
Internal
Firm’s promotional
organization/capabilities
Review of previous programs and
results
Assess firm/brand image
Assess strengths and weaknesses
of product or service
External
Customer analysis
Competitive analysis
Environmental analysis
37
Promotional Strategy
MKT4230
37
Analysis of Communications Process
The basic communication decisions that must be made.
Textbook
Pages 33 - 34
Communication Decisions
Source and message
Communication channels
Media mix
Costs
Marketing goals
Communication objectives
38
Promotional Strategy
MKT4230
38
Budget Determination
The two questions that must be answered before an IMC program can be implemented.
Textbook
Page 34
What will the promotional program cost?
How will the money be allocated?
39
Promotional Strategy
MKT4230
39
Developing the IMC Program
The two important aspects of the advertising program: The creative strategy and the media
strategy.
Textbook
Pages 34 - 35
IMC Strategies
Creative Media
40
Promotional Strategy
MKT4230
40
Monitoring, Evaluation, Control
The final stage of the IMC planning process.
Textbook
Page 35
Basic Goals
Determine how well the program
is doing, and why
Problem correction
Continual management feedback
Input for future promotions/strategies

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Chapter 1 1

  • 1. Promotional Strategy MKT4230 An Introduction to Integrated Marketing Communications Patricia Knowles, Ph.D. Associate Professor Clemson University 1
  • 2. 2 Promotional Strategy MKT4230 2 The Modern World of Marketing In the past, the only advertising avenues were television, radio, billboards, and printed media. Ads in these media promoted the product or service for sale. Textbook Pages 4 - 5 Rapidly changing media environment: Mass media losing viewers, readers, listeners Digital media targets narrow audience Consumers not content to be passive message recipients Information now obtained from a myriad of sources Today, traditional media are used more and more to drive customers to online sites, where the information can be more detail, colorful, and interactive.
  • 3. 3 Promotional Strategy MKT4230 3 Volkswagen Strategy The Volkswagen Punch Dub campaign shows how companies are now using integrated marketing communications (IMC) to reach their target audiences. Textbook Page 5 Integrated Marketing Strategy Traditional Mass Media Social Media Sports Team Sponsor Point-of- Sale Kits
  • 4. 4 Promotional Strategy MKT4230 4 Punch Dub This is the Punch Dub game that was presented via the Volkswagen website. It was designed to be an entertaining and interactive experience. Textbook Pages 3 - 5 Entertaining, Interactive Information
  • 5. 5 Promotional Strategy MKT4230 5 The Growth of Advertising and Promotion Advertising and promotion have become an integral part of our social and economic systems. It has grown six-fold in the past 30 years. Textbook Pages 5 - 6 Integral Part of Social and Economic Systems Carefully prepared messages delivered to carefully targeted audiences Six-fold increase between 1980 and 2010 New Marketing Channels Internet ads (banner ads, videos, webisodes) Social media Mobile marketing
  • 6. 6 Promotional Strategy MKT4230 6 The Role of Marketing There are for-profit and non-profit uses of marketing. Textbook Pages 6 - 7 Advertising and Promotion Inform customers of a product or service Convince them of its ability to satisfy their wants or needs Help develop and sustain relationships Nonprofit Organizations Solicit donations Offer intangible social and psychological satisfactions
  • 7. 7 Promotional Strategy MKT4230 7 What is Marketing? This is 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. Textbook Page 7 The activity, set of institutions, and processes for… creating, communicating, delivering, and exchanging offerings that have… value for customers, clients, partners, and society at large
  • 8. 8 Promotional Strategy MKT4230 8 What is Valued? There is value in a product, service, and benefits a consumer may experience. Textbook Page 7 Customer’s perception of all the benefits of a product or service weighed against costs of acquiring and consuming it. Benefits can be… • Functional • Experiential • Psychological
  • 9. 9 Promotional Strategy MKT4230 9 The Marketing Mix The four key elements of marketing. Textbook Pages 7 - 8 The Four Ps Product Price Place Promotion
  • 10. 10 Promotional Strategy MKT4230 10 Contemporary IMC Approach The contemporary approach to advertising and promotion began in the 1980s. This approach coordinates the various promotional elements and marketing activities that communicate with a firm’s customers. Textbook Pages 8 - 9 Point of Purchase Publicity Interactive Marketing Public Relations Direct Marketing Special Events Packaging Sales Promotion Direct Response Mass Media Advertising
  • 11. 11 Promotional Strategy MKT4230 11 Growing Importance of IMC Here is the value behind an IMC program, as well as the trends that caused companies to adopt the IMC approach. Textbook Pages 10 - 12 Value of IMC Avoids duplication of marketing efforts Synergy among promotional tools More efficient and effective marketing Rapidly Changing Environment Consumer behavior Technology Media consumption behavior Proliferation of media
  • 12. 12 Promotional Strategy MKT4230 12 The Marketing Revolution Here are some of the driving forces behind today’s marketing revolution. Textbook Pages 13 - 15 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 Database marketing Greater ad agency accountability Changes in how ad agencies are compensated
  • 13. 13 Promotional Strategy MKT4230 13 The Role of IMC in Branding With 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. Textbook Pages 15 - 16 Brand Identity Image or Associations Performance Name Packaging Logo Design Symbols
  • 14. 14 Promotional Strategy MKT4230 14 Building Brands in a Recession Here are the effects that a recession has on consumers. Textbook Pages 15 - 17 Consumers Spend less money Carefully scrutinize purchases Rethink brand loyalties Willing to trade off or down More price sensitive More value conscious
  • 15. 15 Promotional Strategy MKT4230 15 Building Brands in a Recession Here are the effects that a recession has on companies. Textbook Pages 15 - 17 Companies 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
  • 16. 16 Promotional Strategy MKT4230 16 Test Your Knowledge Why are marketers decreasing the use of mass media advertising and increasing the use of integrated marketing communications? 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 is growing D. Explosive growth in social networking E. All of the above
  • 17. 17 Promotional Strategy MKT4230 17 The Promotional Mix Here are the basic tools used to accomplish an organization’s communication objectives. Textbook Pages 17 - 25 Interactive/ Internet Marketing Advertising Direct Marketing Personal Selling Sales Promotion Publicity/ Public Relations
  • 18. 18 Promotional Strategy MKT4230 18 Advertising This is the definition of “advertising.” Textbook Pages 18 - 19 Paid, non-personal communication... • About an organization, product, service, or idea • With an identified sponsor • No immediate feedback from audience
  • 19. 19 Promotional Strategy MKT4230 19 Non-Personal Media Various forms of mass media and details of the benefits of using them. Textbook Page 18 Mass Media • TV • Radio • Magazines • Newspapers Benefits • Cost effective • Large audiences
  • 20. 20 Promotional Strategy MKT4230 20 Advertising Classifications Various classifications of advertising. Textbook Page 20 Primary / Selective Demand Business-to-Business Organizations National Retail / Local Professional Trade Consumers
  • 21. 21 Promotional Strategy MKT4230 21 Forms of Direct Marketing Here are various forms of marketing through which direct sales take place. Textbook Pages 19 - 21 Direct Response Ads Direct Mail Catalogs Database Management Telemarketing Direct Selling Internet Sales Shopping Channels
  • 22. 22 Promotional Strategy MKT4230 22 Direct Response Advertising Home page of Under Armour’s website through which consumers may purchase directly from the company. Textbook Page 21 / Exhibit 1 - 8
  • 23. 23 Promotional Strategy MKT4230 23 Direct Response Advertising Major tools of direct marketing, as well as the forces behind the shift to direct marketing. Textbook Page 21 Major Tools Direct Mail Television Magazines Internet Forces for Change Changing Lifestyles Credit Cards Toll-free Numbers Rapid Internet Growth
  • 24. 24 Promotional Strategy MKT4230 24 Interactive Marketing Various forms of interactive media. Textbook Pages 21 - 22 Interactive Media • Internet • Kiosks • Interactive Television • Cell Phones • Other Mobile Devices
  • 25. 25 Promotional Strategy MKT4230 25 Interactive Marketing Ways in which the Internet can be used as a marketing tool. Textbook Pages 22 - 23 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
  • 26. 26 Promotional Strategy MKT4230 26 Sales Promotion Definition of sales promotion. Textbook Pages 23 - 24 Marketing activities that provide extra value or incentives to the… Sales Force Retailers Ultimate Consumer
  • 27. 27 Promotional Strategy MKT4230 27 Consumer vs Trade Promotions Differences between consumer and trade-oriented promotions. Textbook Page 23 Consumer-Oriented Trade-Oriented Couponing, sampling, premiums, rebates, contests, sweepstakes, POP materials Wholesalers, distributors, retailers Encourages immediate purchases Promotional/merchandising allowances, price deals, sales contests, trade shows
  • 28. 28 Promotional Strategy MKT4230 28 Publicity Definition of publicity, as well as its advantages and disadvantages. Textbook Page 24 - 25 High credibility and low cost Not always under company control Is sometimes unfavorable A news story, editorial, or announcement to a mass audience Not directly paid for or run under identified sponsor
  • 29. 29 Promotional Strategy MKT4230 29 Public Relations Definition of public relations and its primary objective. Textbook Page 25 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
  • 30. 30 Promotional Strategy MKT4230 30 Public Relations This ad is part of the American Honda Motor Company’s “Value to America” campaign. Uses publicity and other tools • Special publications • Community activities • Fund-raising events • Sponsorships • Public affairs activities Textbook Page 25 / Exhibit 1 - 12
  • 31. 31 Promotional Strategy MKT4230 31 Public Relations The final element or an organization’s promotional mix… personal selling. Textbook Page 25 Person-to-Person Communication A seller attempts to assist and/or persuade prospective buyers to make a purchase or act on an idea
  • 32. 32 Promotional Strategy MKT4230 32 IMC Audience Contact Tools This figure illustrates various IMC audience contact tools. Textbook Page 26 / Figure 1 - 5
  • 33. 33 Promotional Strategy MKT4230 33 Touch Points: Control vs Impact Here are the four basic categories of touch points. Textbook Page 26 - 27 / Figure 1 - 6
  • 34. 34 Promotional Strategy MKT4230 34 IMC Planning Model Textbook Page 28 / Figure 1 - 7 Advertising Sales promotion PR/ publicity Personal selling Direct marketing Advertising objectives Sales promotion objectives PR/ publicity objectives Personal selling objectives Direct marketing objectives Message strategy Sales promotion strategy PR/ publicity strategy Personal selling strategy Direct marketing strategy Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Program Internet/ interactive Internet/ interactive objectives Internet/ interactive strategy Promotional program situation analysis Analysis of the communications process Budget determination Develop integrated marketing communications programs Review of marketing plan
  • 35. 35 Promotional Strategy MKT4230 35 Elements of a Marketing Plan The five basic elements included in most marketing plans. Textbook Page 29 Detailed situation analysis Marketing strategy and program Specific marketing objectives Program for implementing the strategy Process for monitoring & evaluating performance
  • 36. 36 Promotional Strategy MKT4230 36 Promotional Program Situational Analysis A list of things that must be analyzed prior to initiating a promotional program. Textbook Pages 29 - 33 Internal Firm’s promotional organization/capabilities Review of previous programs and results Assess firm/brand image Assess strengths and weaknesses of product or service External Customer analysis Competitive analysis Environmental analysis
  • 37. 37 Promotional Strategy MKT4230 37 Analysis of Communications Process The basic communication decisions that must be made. Textbook Pages 33 - 34 Communication Decisions Source and message Communication channels Media mix Costs Marketing goals Communication objectives
  • 38. 38 Promotional Strategy MKT4230 38 Budget Determination The two questions that must be answered before an IMC program can be implemented. Textbook Page 34 What will the promotional program cost? How will the money be allocated?
  • 39. 39 Promotional Strategy MKT4230 39 Developing the IMC Program The two important aspects of the advertising program: The creative strategy and the media strategy. Textbook Pages 34 - 35 IMC Strategies Creative Media
  • 40. 40 Promotional Strategy MKT4230 40 Monitoring, Evaluation, Control The final stage of the IMC planning process. Textbook Page 35 Basic Goals Determine how well the program is doing, and why Problem correction Continual management feedback Input for future promotions/strategies