Integrated Marketing Communications – Promotional Tools Study Notes

Integrated Marketing Communications – Promotional Tools

Learning Objectives

• Describe the promotional mix and the uniqueness of each component

• Explore advertising design and the different types of advertising

• Describe product placement and branded entertainment as tactics within the promotional mix

• Outline different consumer and trade sales promotional approaches

• Detail personal selling and the stages of the personal selling process

• Explain public relations and the tools used by the industry

• Explain direct response marketing

• Explain event marketing and sponsorship

• Explain the unique digital approaches used in marketing communications

• Describe social media marketing, networks, and strategies

• Explain mobile marketing, its approaches, tools, best practices, and regulations

The Chicken Big Mac – Using New and Traditional Media to Launch a Success

• A limited-time offer promoting the Chicken Big Mac, employing various media:

  • Social media

  • Out-of-home advertising

  • Television spots

  • Integrated campaign by McDonald’s Canada

Promotional Mix

• The promotional mix consists of diverse marketing communications tools available in a wide range of choices for marketers.

Strengths and Weaknesses of Communication Tools

• Advertising

  • Strengths:

  • Efficient means of reaching large audiences both online and offline.

  • Affordable options for marketers with small budgets.

  • Integration of online and offline options to enhance messaging.

  • Control over messaging by advertisers.

  • Weaknesses:

  • Higher costs associated with offline advertising.

  • Offline approaches are difficult to evaluate.

  • High cluster in online and offline platforms.

  • Low credibility of messaging.

  • Consumer avoidance of advertisements.

• Public Relations

  • Strengths:

  • Highly credible messages, especially when spread through the media.

  • Inexpensive, particularly with social media.

  • New measurable tools available due to social media integration in IMC programs.

  • Weaknesses:

  • Lack of control over media messaging.

  • Challenging to manage the volume of messages spread through the media.

  • Difficult evaluation of results.

• Sales Promotion

  • Strengths:

  • Effective in increasing short-term sales.

  • Various online and offline options available.

  • Social media as an affordable dissemination tool for offers.

  • Measurable results.

  • Weaknesses:

  • Potential for fraud in promotions.

  • Possibility of promotional wars with competitors.

  • Consumer inclination to wait for sales promotions before purchasing.

  • Complex legal regulations governing promotions.

• Direct Response Marketing

  • Strengths:

  • Targeted messaging through online and offline approaches.

  • Facilitates customer relationships effectively.

  • Measurable results.

  • Weaknesses:

  • High costs associated with offline and online approaches.

  • Potential negative customer reactions and message clutter.

  • Requirement for a robust database.

• Event Marketing and Sponsorship

  • Strengths:

  • Small branded events can generate buzz and lead to viral messages.

  • Major sponsorship opportunities can reach large audiences.

  • Integration into IMC programs and online environments.

  • Weaknesses:

  • Sponsorship costs can be high and evaluation challenging.

• Product Placement and Branded Entertainment

  • Strengths:

  • Seamless product integration into programming, enhancing brand visibility.

  • Positive associations created through integration with popular films or TV shows.

  • Weaknesses:

  • Increasing ubiquity leading to potential overexposure.

• Personal Selling

  • Strengths:

  • Builds lasting relationships through personal interaction.

  • Can differentiate products significantly.

  • Useful for high-cost products.

  • Weaknesses:

  • Expensive when involving extensive sales forces.

  • Inconsistency in messaging is difficult to manage.

• Online Marketing

  • Strengths:

  • Enables two-way communication.

  • Generally low-cost compared to traditional methods.

  • Weaknesses:

  • Message clutter online is a significant issue.

• Social Media Marketing

  • Strengths:

  • Allows two-way communication and is relatively inexpensive.

  • Weaknesses:

  • Clutter and dependence on technology.

• Mobile Marketing

  • Strengths:

  • Increasing range of mobile users.

  • Integration with other promotional tools is straightforward.

  • Weaknesses:

  • Formatting challenges and message clutter.

Advertising

• Definition: Paid form of media communicating non-personally to consumers regarding an organization, product, or idea.

• Characteristics:

  • "Paid" means the space for advertising must be purchased, except in selected public service announcements using donated media.

  • "Non-personal" describes how it involves mass media, lacking an immediate feedback loop available through direct marketing or personal selling.

• Media Options:

  • Selection based on objectives, product characteristics, target market, and budget constraints.

Designing the Advertisement

• An advertising message focuses on benefits crucial for the prospective buyer. The message comprises:

  • Appeal formats, including:

  • Fear appeals: Utilizing fear to promote a response.

  • Humorous appeals: Engaging consumers with humor.

  • Sex appeals: Utilizing sexual allure to attract attention.

Advertising Media Choices

• Television:

  • Advantages: Large audience reach, employs various media formats.

  • Disadvantages: High preparation and airing costs, short-lived message.

• Newspapers:

  • Advantages: Local market coverage, quick ad placement.

  • Disadvantages: Competes for attention and short ad lifespan.

• Search Engine Marketing:

  • Advantages: Real-time measurable data available.

  • Disadvantages: Intrusive, competing ads.

• Online Display Advertising:

  • Advantages: Targeting capabilities.

  • Disadvantages: Low click-through rates; ad-blockers hinder visibility.

• Social Media Advertising:

  • Advantages: Engagement tracking; improves brand awareness.

  • Disadvantages: Potential for negative feedback.

• Email Marketing:

  • Advantages: Cost-effective.

  • Disadvantages: Volume can be viewed as spam.

• Magazines:

  • Advantages: Targeted audience and high-quality ads.

  • Disadvantages: High costs and lengthy publication timelines.

• Radio:

  • Advantages: Cost-effective advertising.

  • Disadvantages: Lack of visual elements; perishable message.

• Out-of-Home:

  • Advantages: Low cost and high visibility.

  • Disadvantages: Message has to be simple due to limited exposure time.

• Mobile Advertising:

  • Advantages: Real-time consumer reach.

  • Disadvantages: Interruptive nature may harm brand image.

• Direct Mail:

  • Advantages: High audience selectivity and personalized messages.

  • Disadvantages: High cost and potential negative consumer reception.

Advertising Revenue in Canada

• Projected Revenue: Significant expected increases in advertising revenue, analyzed in millions for years leading up to 2023.

Scheduling Advertising

• Three Factors Considered:

  • Buyer Turnover: Frequency with which new buyers enter the market.

  • Purchase Frequency: How often products are bought affects the required repetition of advertisements.

  • Forgetting Rate: How quickly consumers forget a brand when not reminded.

Scheduling Approaches

• Continuous: Steady advertisement running.

• Flighting: Alternating periods of high and no advertising.

• Pulsing: Intermittent periods of advertising with continuous low-level advertising.

Product Placement and Branded Entertainment

• Product Placement: Integrating products within movies or television shows for promotional purposes.

• Branded Entertainment: Creating entire entertainment programs centered around a brand.

Sales Promotion and Personal Selling

• Sales Promotion: Short-term communications tools designed to boost interest and purchase support;

  • Two Basic Types: Consumer and Trade promotions.

Consumer Promotions Tools

• Coupons: Price reductions for electronic or printed documents.

• Premiums: Merchandise offers for free or at reduced price for proof of purchase.

• Contests: Skill-required entries for prizes.

• Sweepstakes: Games of chance offering products or prizes for entry submission.

• Samples: Free product distribution to encourage purchase.

• Loyalty Programs: Points accrued for purchases redeemable for rewards.

• Rebates: Price reductions via mail for purchasing proof.

Examples of Successful Promotions

• McDonald's Monopoly game has been a leading consumer promotion in Canada for over three decades.

Trade Promotions Tools

• Trade Shows: Showcase new products and industry initiatives.

• Off-invoice allowances: Price reductions on invoices made within time frames.

• Merchandising allowances: Reductions for displaying products within store locations.

• Co-op advertising: Funds contributed for advertisement inclusion.

Personal Selling

• Definition: Two-way communication flow between buyer and seller to influence purchasing decisions.

Stages in the Personal Selling Process

1. Prospecting: Searching and qualifying potential customers.

2. Pre-approach: Gathering information to prepare for the initial contact.

3. Approach: Gaining attention to transition into a product presentation.

4. Presentation: Converting prospects by showcasing product value.

5. Close: Securing commitment from the prospect to buy.

6. Follow-up: Ensuring customer satisfaction post-purchase.

Public Relations

• Definition: Communicating to influence target opinions using unpaid media exposure, incorporating:

  • Crisis and image management.

  • Generating positive publicity.

Public Relations Tools

• Press Releases: Formal announcements to media.

• Press Conferences: Organized events to communicate with journalists.

• Special Events: Engaging audiences on significant occasions.

• Company Reports: Providing business performance insight.

• Social Media Releases: Utilizing social platforms for messaging.

Direct Response Marketing

• Definition: Targeted messaging encouraging immediate responses from consumers through varied channels.

• Mechanisms: Calls to action and response evaluation through metrics.

  • Lead Generation: Requests for more information.

  • Traffic Generation: Consumer visits to digital and physical locations.

  • Email Marketing: Opt-in lists for consumer communication.

Event Marketing and Sponsorship

• Event Marketing: Involvement in experiences to enhance brand awareness and associations.

• Sponsorship: Financial contributions for event participation.

Digital Marketing Communication

• Overview: Rapidly evolving, often consumers' first contact point with a brand through various online tools.

Online Marketing Tools

• Websites: Key for consumer interaction.

• Microsites: Specialized, often campaign-focused websites.

• Search Engine Marketing (SEM): Paid visibility on search engines, incorporating SEO and PPC.

• Influencer Marketing: Leveraging individuals with significant follower bases to promote brands through personal influence.

• Word-of-Mouth Marketing: Positive consumer messages shared organically, significantly impacting spending behaviors.

Defining Social Media

• Characteristics:

  • A unique blend of technology and social interaction.

  • User-generated content (UGC): Media created by consumers that meets specific criteria implemented by platforms.

Classified Social Media Types

• Varying levels of media richness and self-disclosure are observed across different platforms.

Social Media and Traditional Media Comparison

• Social Media: Flexibility to adjust content post-publication, instantaneous access, facilitates conversation, and requires ongoing engagement.

• Traditional Media: Generally unidirectional, requiring longer prep times and offering limited access for consumer-initiated interaction.

Social Media Marketing Strategies

• Brands use social networks to reach consumers for interaction and sharing.

• Key social media platforms in Canada include Facebook, X, YouTube, Instagram, and LinkedIn.

Attention To Social Media Engagement Metrics

• Engagement Metrics: Followers, reach, comments, and likes.

• Optimization Metrics: Share of voice, click-through rates, and retention rates for campaigns.

Best Practices for Social Media Marketing

• Company-Wide Governance: Creating policies and objectives, integrating programs, and employing experts to handle interactions effectively.

• Adjustment Practices: Understanding potential negative feedback and planning for mistakes.

The Mobile Market

• Characteristics:

  • Central tool for various transactions and interactions.

  • Essential in the multi-screen environment, enhancing daily conveniences for users.

Mobile Marketing Tools

• Mobile Marketing Execution: Personalized communication platforms, employing location, demographics, and interests for targeting.

• Mobile Applications: Encompassing various app types, including native and hybrid formats with potential push notifications.

• Regulatory Oversight: Ensuring compliance with various legislation and codes such as CASL for mobile marketing.