MARK 3000 Test 3

integrated marketing communications

* customers
* results
* communication channel

the communication process

noise from the environment → sender → communication channel (media) → receiver (consumer) decodes message → feedback

sender

person who starts the message

transmitter

person in charge of making the message and deciding how to convey it

how consumers perceive communication

* receivers decode messages differently
* senders adjust messages according to medium receivers’s traits
* ex. Trump Billboard confusion

the AIDMA Model

* awareness
* interest
* desire
* action

objectives of promotions

trying to get customers to do something through the messaging

* ie. make a consultation
* Ariana grande song
* i see it, i like it, i want it, i got it

the lagged effect

* marketing communications do not always have an immediate impact
* multiple exposures are often necessary
* it is difficult to determine which exposure led to purchase
* can take a while for TV ad, billboards to get enough attention and be noticed
* did the right people see it? how long will it take for them to take action?

offline interactive channels

* personal selling
* sales promotions
* contests
* direct marketing
* telemarketing

offline passive channels

* advertising
* sales promotions
* coupons
* public relations
* direct marketing
* catalogs

online interactive channels

* direct marketing
* mobile marketing
* online marketing
* blogs, social media

online passive channels

* direct marketing
* email marketing

advertising

* most visible element of IMC
* extremely effective at creating awareness and generating interest
* paid form of communication

public relations

* “free” media attention
* importance of PR has grown as cost of other media has increased
* consumers becoming more skeptical about marketing, PR becoming more important
* ex. 11 Alive covering something good about product/company (free media)

sales promotions

* can be aimed at both end users or channel members
* used in conjunction with other forms of IMC
* can be used for both short-term and long-term objectives
* ex. P&g enter to win home theater sweepstakes
* has nothing to do with their products, but provides them with data
* everyone’s name, address, email, etc.

personal selling

* some products require the help of a salesperson
* more expensive than other forms of promotion
* salespeople can add significant value, which makes the expense worth it
* ex. complex or expensive products

direct marketing

* communicating directly with target customers to generate a response to transaction
* growing element of IMC
* improvements in database technology have contributed to the rapid growth
* ability to carefully target customers
* email
* mobile marketing

online marketing

* websites
* blogs
* social media

planning and measuring IMC success

* understand the outcome they hope to achieve before they begin
* short-term or long-term
* should be explicitly defined and measured

setting and allocating the IMC budget

* objective and task method
* rule of thumb methods

rule of thumb methods

* competitive parity
* percentage of sales
* available budget

competitive parity

* the communication budget is set so that the firm’s share of communication expenses equals its share of the market
* limitations
* does not allow firms to exploit the unique opportunities or problems they confront in the market
* if all competitors use this method to set communication strategies, their market shares will stay approximately the same over time

percentage of sales

* the communication budget is a fixed percentage of forecasted sales
* limitations
* assumes the same percentage used in the past or by competitors, is still appropriate for the firm
* does not take into account new plans (ex. to introduce a new line of products in the current year)

available budget

* marketers forecast sales and expenses, excluding communication, during the budgeting period
* the difference between the forecast sales and expenses plus desired profit is used for the communication budget
* uses the money available after operating costs and profits have been budgeted
* limitations
* assumes communication expenses do not stimulate sales and profit

measuring success using marketing metrics

* frequency
* reach
* gross rating points
* reach X frequency
* web tracking

search engine marketing

* clicks
* impressions
* click through rate
* clicks/impressions
* return on investment (ROI)

ROMI Assessment

return on marketing investment, the amount of profit divided by the value of the investment

IMC Goals and Results

steps in planning and executing an ad campaign

* step 1: identify target audience
* step 2: set advertising objectives
* step 3: determine advertising budget
* step 4: convey message and select appeal
* step 5: evaluate and select media
* step 6: create advertisements
* step 7: assess impact

step 1: identify target audience

* who is your audience?
* current target market?
* new target market?
* info is used to set the tone and select the media
* who is it and what do we want to tell them?

step 2: set advertising objectives

* push versus pull strategy
* overall goal or objective of messaging
* what is being advertised: product vs institution

pull strategy

* aimed at final consumers- get consumers to pull the product into marketing channel
* advertising
* consumer sales promotions
* online
* manufacturer promotes to consumer → consumer demands product from retailer → retailer demands product from wholesaler → wholesaler demands product from manufacturer

push strategy

* aimed at channel members- increase demand by focusing on wholesalers, retailers, salespeople
* primarily personal selling
* trade sales promotion
* manufacturer promotes to wholesaler → wholesaler promotes to retailer → retailer promotes to consumer → consumer buys from retailer

overall goal or objective of marketing

* inform
* persuade
* remind

informative advertising

* create and build brand awareness


* usually used in introductory stage of lifecycle
* should focus on education or creating buzz

persuasive advertising

* generally occurs in the growth and early maturity stages of the PLC when competition is intense
* may be used to reposition an established brand in the later stage of the PLC
* compares your brand to other brands
* should focus on features, advantages
* persuasive ads can be directly comparative
* ex. Orange Juice as
* ex. Papa Johns is better than Dominos

reminder advertising

* typically occurs after product has gained market acceptance in mature stage of the PLC
* used to remind or prompt repurchases
* usually does not include lots of information
* ex. Coca Cola ad “it’s the simple things in life” with logo

product focused advertisements

related to a specific product

* Dove soap ad

institutional advertisements

* corporate image
* Budweiser “stand by me” ad
* advocacy advertisements
* public service announcements
* ex. Dawn: saving wildlife for over 20 years
* ex. Tobacco kills ad

public service advertising

* focus on public welfare
* generally sponsored by non-profit or civic groups
* social marketing:
* stop smoking
* fight hunger
* cancer research

Step 3: determine the advertising budget

* considerations:
* role that advertising plays in firm’s attempt to meet overall performance objectives
* expenditures vary over the course of the Product Life Cycle
* nature of the market and the product influence the size of the budget

step 4: convey the message and select the appeal

* messaging
* ex. Ford: build ford tough, Nike: just do it, state farm: like a good neighbor, state farm is there, tnt: we know drama
* appeal
* how message is conveyed

appeal through information

message is conveyed through product use and benefits

appeal through emotions

* fear/safety
* humor
* happiness
* love/sex
* comfort
* nostalgia

fear/safety appeal

allstate mayhem ad

humor appeal

amazon alexa ad

happiness ad

coca cola happiness machine ad

love/sex appeal

extra gum ad

comfort appeal

kleenex let it out ad

nostalgia

disney donald duck ad

step 5: evaluate and select media

* mass media
* niche media
* choosing the right medium
* determine the advertising schedule

mass media

* ideal for reaching large, anonymous audiences
* includes:
* outdoor/billboards, newspapers, magazines, radio, and television

niche media

* more focused
* reach narrower segments
* targets unique demographic interests

choosing the right medium

* television
* radio
* magazines
* newspapers
* internet/mobile
* outdoor/billboard
* direct marketing

television

advantages

* wide reach; incorporates sound and video

disadvantages

* high cost; several channel and program options; may increase awareness of competitors’ products

radio

advantages

* relatively inexpensive, can be selectively targeted, wide reach

disadvantages

* no video, which limits presentation, consumers give less focused attention than TV, exposure periods are short

magazines

advantages

* very targeted, subscribers pass along to others

disadvantages

* relatively inflexible, takes some time for the magazine to be available

newspapers

advantages

* flexible, timely, able to localize

disadvantages

* can be expensive in some markets, advertisements have short life span

internet/mobile

advantages

* can be linked to detailed content, highly flexible and interactive, allows for specific targeting

disadvantages

* becoming cluttered, the ad may be blocked by software on the computer

outdoor/billboard

advantages

* relatively inexpensive, offers opportunities for repeat exposure

disadvantages

* is not easily targeted, has placement problems in some markets, exposure time is very short

direct marketing

advantages

* highly targeted, allows for personalization

disadvantages

* cost can very depending on type of direct marketing used, traditional media, like mail, will be more expensive than newer media

determining the advertising schedule

* continuous
* flighting
* pulsing

continuous ad

runs steadily through the year

* ex. detergent

flighting ad

implemented in spurts, with heavy periods of advertising followed by periods of no advertising

* ex. sunscreen

pulsing ad

combines continuous and flighting with a base level of advertising, but increasing intensity during certain periods

* ex. airlines

step 6: create advertisements

ads:

* message and appeal translated into actual words and images
* creativity should not overshadow the message
* the execution style must match the medium and objectives

step 7: assess impact

* pretesting
* tracking
* posttesting

pretesting

* know where we started before ad runs

tracking

* see what ad does throughout to see how its going

posttesting

* how did we hit our goals?

regulatory and ethical issues in advertising

* federal trade commission
* federal communications commission
* food and drug administration
* the U.S. postal service
* bureau of alcohol, tobacco, firearms, and explosives

Federal trade commission

enforces truth in advertising laws, defines deceptive and unfair advertising practices

federal communications commission

enforces restrictions on broadcasting material that promote lotteries (with some exceptions), cigarettes, smokeless tobacco products, or that perpetuates a fraud, enforces laws that prohibit or limit obscene language

food and drug administration

regulates package labeling and inserts, definition of terms such as light and organic, and required disclosure statements (warning labels, dosage requirements, etc.)

USPS

regulates advertising that uses the mail and involves obscenity or lotteries

bureau of alcohol, tobacco, firearms, and explosives

regulates the advertising for alcohol, including warning labels, determines what constitutes false or misleading advertising

requirements for messaging

* must meet standards for language, images
* be truthful
* avoid puffery

puffery

* exaggerated commendation for promotional purposes
* promotional statement that expresses subjective, rather than objective claims, that no reasonable person would take literally

public relations

* public relations involve managing communications and relationships to achieve various objectives such as
* building and maintaining a positive image of the firm
* handling unfavorable stories or events
* maintaining positive relationships with the media
* ex. KFC mistake

forms of public relations

* cause marketing
* chilis create a pepper challenge
* event sponsorship
* coca cola partner

elements of a PR toolkit

* publications
* video and audio
* annual reports
* media relations
* electronic media

publications

brochures, special purpose single use publications such as books

* inform various constituencies about the activities of the organization and highlight specific areas of expertise

video and audio

programs, public service announcements

* highlight the organization or support cause-related marketing efforts

media relations

press kits, new releases, speeches, event sponsorships

* give required financial performance data and inform investors and others about the unique activities of the organization

electronic media

websites, email campaigns

* websites can contain all the previously mentioned toolbox elements, email directs PR efforts to specific target groups

sales promotions

* special incentives
* can be targeted at either the end-user consumer or channel members
* can be used in either push or pull strategies

types of sales promotions

* coupons
* deals
* premiums
* contests
* sweepstakes
* samples
* loyalty programs
* POP displays
* rebates
* product placement

coupons

advantages

* stimulates demand
* allows for direct tracking of sales

disadvantages

* low redemption rates
* high cost

deals

advantages

* encourages trial
* reduces consumer risk

disadvantages

* may reduce perception of value

premiums

advantages

* builds goodwill
* increases perceptions of value

disadvantages

* consumers buy for premium, not product
* has to be carefully managed

contests

advantages

* increases consumer involvement
* generates excitement

disadvantages

* requires creativity
* must be monitored

sweepstakes

advantages

* increases involvement with the product

disadvantages

* sales often decline after the sweepstakes is over

samples

advantages

* encourage trial
* offer direct involvement

disadvantages

* high cost to the firm

loyalty programs

advantages

* create loyalty
* encourage repurchase

disadvantages

* high cost to the firm

POP displays

advantages

* provides high visibility
* encourage brand trial

disadvantages

* difficult to get a good location in the store
* can be costly to the firm

rebates

advantages

* stimulate demand
* increase value perception

disadvantages

* easily copied by competitors

product placement

advantages

* displays products nontraditionally
* demonstrats product uses

disadvantages

* firm often has little control over display
* product can be overshadowed

using sales promotion tools

* use care in sales promotion, especially when lowering price
* coupons could cause consumers to stockpile non-perishable items but might work well for perishable goods
* cross-promoting

the supply chain

sometimes called value chain or demand chain

physical supply network

* raw materials
* components
* manufactured good