chap 13 Integrated Marketing Communications – Promotional Tools Study Notes

Integrated Marketing Communications: Promotional Tools

Learning Objectives

• Describe the promotional mix and the uniqueness of each component: Understanding the various tools that compose the promotional mix; their individual characteristics and how they interrelate.
• Explore advertising design and the different types of advertising: Identifying various advertising formats and their design principles to effectively communicate messages.
• Describe product placement and branded entertainment as tactics within the promotional mix: Understanding how these strategies integrate brands into media content.
• Outline the different consumer and trade sales promotional approaches: Differentiation between promotions targeted at consumers versus businesses.
• Detail personal selling and the stages of the personal selling process: Examination of the necessary steps and skills involved in effective personal selling.
• Explain public relations and the tools used by the industry: Overview of PR's role in managing public perception and communication tools available.
• Explain direct response marketing: Insight into marketing strategies that elicit immediate responses from consumers.
• Explain event marketing and sponsorship: Discussion on how organizations use events to promote brands and products.
• Explain the unique digital approaches used in marketing communications: Examination of digital strategies including social media and mobile marketing.

The Chicken Big Mac Example

• Integrated Campaign Launch: The Chicken Big Mac's promotion utilized a comprehensive and integrated campaign combining social media, out-of-home advertising, television, and other promotional tools.

Promotional Mix

• Definition: A combination of various marketing communications tools.
• Overview of Available Tools: Marketing communications tools include advertising, public relations, sales promotions, direct response marketing, event marketing, personal selling, digital marketing, and social media.

Strengths and Weaknesses of Communication Tools

• Advertising:

  • Strengths: Reaches large audiences; affordable online options for small budgets; controlled messaging.
  • Weaknesses: Higher costs for offline methods; clutter; low credibility.

• Public Relations:

  • Strengths: Credible messages; inexpensive; well-integrated into promotions.
  • Weaknesses: Lack of control; difficult evaluation of effectiveness.

• Sales Promotion:

  • Strengths: Increases short-term sales; measurable results; numerous options.
  • Weaknesses: Risks of fraud and promotional wars; complex regulations.

• Direct Response Marketing:

  • Strengths: Targeted messages; measurable results; supports customer relationships.
  • Weaknesses: High costs; cluttered environment.

• Event Marketing and Sponsorship:

  • Strengths: Create buzz through events; potential for large audiences.
  • Weaknesses: High costs; challenges in measuring results.

• Product Placement and Branded Entertainment:

  • Strengths: Seamless brand integration into content.
  • Weaknesses: High costs; saturation of placement incidences.

• Personal Selling:

  • Strengths: Builds lasting relationships; differentiated approach.
  • Weaknesses: High costs for large teams; consistency can suffer.

• Online Marketing:

  • Strengths: Two-way communication; relatively inexpensive.
  • Weaknesses: Clutter; technology dependence.

• Mobile Marketing:

  • Strengths: Growing user base; integrates easily with other tools.
  • Weaknesses: Clutter; dependence on technology.

Advertising

• Definition: A paid form of media communication, targeting consumers with information about products.
• Characteristics:
  • “Paid”: Advertising space is purchased, with exceptions for public service ads.
  • “Non-personal”: Involves mass media, lacking immediate feedback mechanisms.
• Media Options: Selection is determined by campaign goals, products, target markets, and budget limitations.

Designing the Advertisement

• Focus: Key benefits important for buyer decisions.
• Message Form Appeal: Appeals can include:
  • Fear Appeals: Evokes fear to motivate behavior change.
  • Sex Appeals: Utilizes sexual appeal to attract attention.
  • Humorous Appeals: Leverages humor for engagement.

Advertising Media Choices

• Table: Advertising Options
  • Television: Broad reach but high costs and fleeting exposure.
  • Newspapers: Localized reach and low cost but short lifespan.
  • Search Engine Marketing: Measurable and cost-effective but faces viewer intrusion issues.
  • Online Display Advertising: Targeting strengths yet suffers from low engagement rates.
  • Social Media Advertising: Enhances brand recognition, but invites user criticism.
  • Email Marketing: Cost-effective but can be perceived as spam.
  • Magazines: High-quality visuals but high cost and competition for attention.
  • Radio: Low cost yet lacks visual elements.
  • Out-of-Home: Simplistic messaging but low selectivity.
  • Mobile Advertising: Immediate reach but can annoy users.
  • Direct Mail: Tailored yet has the stigma of junk mail.

Scheduling the Advertising

• Factors Influencing Scheduling:

  1. Buyer Turnover: Frequency of new buyers.
  2. Purchase Frequency: Relation to the need for repetition.
  3. Forgetting Rate: How quickly consumers forget the brand.

• Approaches:

  • Continuous: Steady ads over time.
  • Flighting: Intermittent ads.
  • Pulse: Burst periods of higher advertising intensity.

Product Placement and Branded Entertainment

• Product Placement: Integrates products within entertainment; compensated positioning.
• Branded Entertainment: Produces media content focused on a brand; paid integration.

Sales Promotion and Personal Selling

• Sales Promotion Definition: Short-term communications tactics to spur interest and purchases.

• Types: Two basic forms: Consumer and Trade promotions.

• Consumer Promotions Tools:

  • Coupons: Price reductions redeemable via physical or electronic means.
  • Premiums: Rewards for purchase proof.
  • Contests: Competitions requiring skill or creativity.
  • Sweepstakes: Chance-based entries requiring simple actions for participation.
  • Samples: Free products to encourage trials.
  • Loyalty Programs: Encourage repeat purchases through rewards.
  • Rebates: Cash-back offers for proof of purchase.
  • Bonuses: Special deals with promotional packaging.
  • Point-of-Purchase Materials: In-store displays to increase visibility.

Personal Selling Process

• Definition: Two-way buyer-seller communication, often through face-to-face interactions.
• Stages:
  1. Prospecting: Identifying potential customers.
  2. Pre-approach: Gathering information on prospects.
  3. Approach: Engaging the prospect.
  4. Presentation: Making the sales pitch.
  5. Close: Encouraging a purchase commitment.
  6. Follow-up: Ensuring customer satisfaction.

Public Relations

• Definition: A communication tool that aims to shape public perception through unpaid media.
• Functionality: Utilizes media to generate positive discussions about a brand.
• Tools Used: Includes press releases, special events, conferences, and social media interactions.

Direct Response Marketing

• Definition: Tailored marketing approach driving targeted communication.
• Methods: Involves offline and online emails with a clear call to action.

Event Marketing and Sponsorship

• Event Marketing: Creating brand involvement in events for visibility and awareness.
• Sponsorship: Financial support of an event in exchange for brand visibility.

Digital Marketing Communication

• Definition: The dynamic evolution of marketing communications through digital platforms.
• Key Tools: Websites, SEM, influencer engagements, word-of-mouth tactics.

Online Marketing Tools

• Websites/Microsites: Required content to be fresh and regularly updated.
• SEM Definition: Paid marketing on search engines, including SEO and PPC.

Influencer Marketing

• Definition: Engaging influential individuals to promote products based on their credibility.
• Relevance: Impact on consumer behavior influenced by perceived authenticity.

Word-of-Mouth Marketing

• Definition: Driving consumer engagement through sharing positive experiences.
• Economic Impact: Contributes to significant consumer spending.

Social Media Marketing

• Definition: Engaging consumers through social networks for brand interactions.
• Characteristics: Two-way communication format and content sharing as a means of engagement.

Best Practices for Mobile Marketing

• General Advice:
  • Start with a focused mobile-first strategy.
  • Create engaging and functional mobile experiences.
  • Integrate with offline efforts for a cohesive approach.

Mobile Marketing Regulations

• Canada's Legality: Business practices governed by CRTC and CASL to protect consumers.

Measuring Social Media Marketing Programs

• Analytic Methods: Include real-time engagement, optimization metrics, and overall brand awareness.
• Engagement and Optimization Metrics: Focus metrics like followers, likes, and shares provide insight into performance and ROI.