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An Introduction to Integrated Marketing Communications
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Chapter01
- 1. An Introduction to Integrated Marketing Communications 1 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
- 2. It’s Google’s World The most powerful brand in the world
- 3. It’s Google’s World • Founded in 1998 – Delivers relevant search results by favoring pages linked to by other sites –Sells ads linked to search keywords –Annual revenue exceeds $10 billion • Keys to success –Simplicity –Speed –Accuracy
- 4. Google Adwords • Keyword-targeting advertising – Text ads at top or side of search results –Advertisers compete for top spot –Cost is “per click” (CPC) • Contextual ads –Appear on other relevant Web sites • Site-targeted – Generates sales and branding –Cost is per thousand impressions (CPM)
- 5. Google Rapidly Expanding • Beyond online search advertising –Automated purchase of radio ads –Magazine and newspaper ad-buying – YouTube –Google TV Ads – Partnership with Nielsen Media Research –New varieties of online ads
- 6. Rapidly Changing Media Environment • Increasingly difficult to target audiences & communicate effectively –Consumers no longer passive recipients – They demand more than information – From a myriad of sources
- 7. Integrated Marketing Approach • Traditional mass media – Television, radio, magazines, newspapers, billboards –Now drive consumers to Web sites • Online strategies – Provide detailed information – Be experiential, entertaining, interactive –MySpace, YouTube, Facebook, wireless mobile media devices, e-mail
- 8. The New Look of Advertising Interactive, Informative, Entertaining
- 9. Growth of Advertising and Promotion Expenditure in Billions of Dollars $0 $50 $100 $150 $200 $250 $300 $350 $400 Advertising Outside U.S. U.S. Advertising 2007 1980
- 10. What is Marketing? • An organizational function • Processes for creating, communicating, and delivering value to customers • Managing customer relationships in ways that benefit the organization and its stakeholders VVaalluuee RReellaattiioonnsshhiipp mmaarrkkeettiinngg MMaassss ccuussttoommiizzaattiioonn Customer relationship management (CRM) Customer relationship management (CRM)
- 11. The Scion Web Site Consumers can now customize the car they want to purchase
- 12. Marketing Mix • The four Ps Product Price Place Promotion
- 13. Coordinated Marketing Elements Build Image
- 14. Traditional Marketing Approach Point of purchase Public relations Interactive marketing Direct marketing Special events Sales promotion Packaging Direct response Media Adver-tising Publicity
- 15. Contemporary IMC Approach Point of purchase Publicity Interactive marketing Public relations Direct marketing Special events Packaging Sales promotion Direct response Media Adver-tising
- 16. Defining IMC IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences. IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences. The goal of IMC is to generate short-term financial returns and build long-term brand value. The goal of IMC is to generate short-term financial returns and build long-term brand value.
- 17. Contemporary Perspective of IMC RReeccooggnniizzeedd aass aa bbuussiinneessss pprroocceessss IIMMCC MMuullttiippllee rreelleevvaanntt aauuddiieenncceess IImmppoorrttaannccee ooff rreelleevvaanntt aauuddiieennccee Demand for accountability and measurement of outcomes DeDDmeemamnaadnn dfdo frfo oarr c aaccocccuoonuutnantbtaailbbitiilyliit tyaynd measurement of outcomes
- 18. 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 have given consumers greater control over the communication process. C) Use of the Internet and electronic commerce is growing. D) New global markets are emerging. E) All of the above.
- 19. Growing Importance of IMC • Strategic integration of communications functions –Avoids duplication –Synergy among promotional tools –More efficient and effective marketing • Rapidly changing environment –Consumers – Technology –Media
- 20. Behind the Growing Importance of IMC From Toward MMeeddiiaa aaddvveerrttiissiinngg MMuullttiippllee ffoorrmmss ooff ccoommmmuunniiccaattiioonn MMaassss mmeeddiiaa SSppeecciiaalliizzeedd mmeeddiiaa MMaannuuffaaccttuurreerr ddoommiinnaannccee RReettaaiilleerr ddoommiinnaannccee GGeenneerraall ffooccuuss DDaattaa--bbaasseedd mmaarrkkeettiinngg LLooww aaggeennccyy aaccccoouunnttaabbiilliittyy GGrreeaatteerr aaggeennccyy aaccccoouunnttaabbiilliittyy Traditional Traditional ccoommppeennssaattiioonn PPeerrffoorrmmaannccee--bbaasseedd ccoommppeennssaattiioonn LLiimmiitteedd IInntteerrnneett aavvaaiillaabbiilliittyy WWiiddeesspprreeaadd IInntteerrnneett aavvaaiillaabbiilliittyy
- 21. The Role of IMC in Branding • Brand identity is a combination of –Name – Logo –Symbols – Design – Packaging – Performance – Image or associations IMC plays a major role in developing and sustaining brand identity and equity
- 22. The Most Valuable Brands in the World Rank Brand Brand Value (Billions) 1 Coca-Cola $65.32 2 Microsoft 58.71 3 IBM 57.09 4 General Electric 51.57 5 Nokia 33.70 6 Toyota 32.07 7 Intel 30.95 8 McDonald’s 29.39 9 Disney 29.21 10 Mercedes-Benz 23.57
- 23. Finding New Ways to Build Brands • Consumers are driving the trend – They view brands as a form of self-expression – They know more about brands and the companies that make them –Cynicism about corporations is at an all-time high – They seek and share information with other consumers via the Internet
- 24. Finding New Ways to Build Brands • Get consumers involved –Apple Computer lets consumers test products in store –Starbucks positions stores as a community gathering place • Interaction can be the best marketing –MySpace – Facebook –Google
- 25. The Promotional Mix AAddvveerrttiissiinngg DDiirreecctt MMaarrkkeettiinngg Interactive/ Interactive/ Internet Marketing Internet Marketing SSaalleess PPrroommoottiioonn Publicity/Public Publicity/Public Relations Relations PPeerrssoonnaall SSeelllliinngg
- 26. Advertising • Paid forms of non-personal communication –About an organization, product, service, or idea by an identified sponsor –No feedback from audience – Important for products and services aimed at mass consumer markets –Cost effective
- 27. The Most Common Forms of Advertising NNaattiioonnaall AAddvveerrttiissiinngg RReettaaiill//LLooccaall AAddvveerrttiissiinngg Primary vs. Selective Demand Advertising Primary vs. Selective Demand Advertising Consumers BBuussiinneessss--ttoo--BBuussiinneessss AAddvveerrttiissiinngg Organizations PPrrooffeessssiioonnaall AAddvveerrttiissiinngg TTrraaddee AAddvveerrttiissiinngg
- 28. Direct Marketing Direct Response Advertising Direct Mail CCaattaallooggss TTeelleemmaarrkkeettiinngg Internet Sales Shopping Channels Direct Marketing
- 29. Bose Uses Direct Response Advertising Includes call for action. Phone number, mail-in form, website address provided.
- 30. Interactive/Internet Marketing • Back-and-forth communication – Users participate in and modify the form and content of information –Happens in real time • Interactive media – Internet –CD-ROMs –Kiosks – Interactive television – Digital cell phones
- 31. Sales Promotion *Click outside of the video screen to advance to the next slide
- 32. Using the Internet as an IMC Tool A sales tool or an actual sales vehicle Builds and maintains customer relationships Builds and maintains customer relationships Educates or informs customers Obtains customer database information Obtains customer database information A persuasive advertising medium Communicates and interacts with buyers Communicates and interacts with buyers Provides customer service and support Provides customer service and support Educates or informs customers A persuasive advertising medium A sales tool or an actual sales vehicle The Internet
- 33. Sales Promotion Consumer-oriented [For end-users] Trade-oriented [For resellers] Coupons Samples Premiums Contest/Sweepstake Refunds/Rebates Bonus Packs Loyalty Programs Events Trade Allowances POP Displays Training Programs Trade Shows Coop Advertising
- 34. Sales Promotion • Most of the promotional budget now goes to sales promotion – Declining brand loyalty – Increased consumer sensitivity to “deals” – Larger and more powerful retailers are demanding more trade promotion support
- 35. Test Your Knowledge _____ is nonpersonal communication, neither directly paid for nor run under, identified sponsorship. A) Advertising B) Sales promotion C) Publicity D) Public relations E) Personal selling
- 36. Advertising Versus Publicity AAddvveerrttiissiinngg PPuubblliicciittyy LLiittttllee HHiigghheerr UUnnccoonnttrroollllaabbllee LLooww//UUnnssppeecciiffiieedd LLooww TTeennttaattiivvee GGrreeaatt LLoowweerr MMeeaassuurraabbllee SScchheedduullaabbllee HHiigghh//SSppeecciiffiicc HHiigghh SSppeecciiffiiaabbllee UUnnddeetteerrmmiinneedd FFaaccttoorr CCoonnttrrooll CCrreeddiibbiilliittyy RReeaacchh FFrreeqquueennccyy CCoosstt FFlleexxiibbiilliittyy TTiimmiinngg
- 37. Publicity Vehicles IInntteerrvviieewwss Feature Articles Feature Articles Special Events Special Events Press Press News Releases News Releases Publicity Vehicles Conferences Conferences
- 38. Public Relations Systematically planning and distributing information in an attempt to control and manage image and the nature of the publicity received.
- 39. Public Relations Tools Cause-related Marketing Corporate Advertising Corporate Advertising Publicity Vehicles Publicity Vehicles Community Activities Community Activities Public Affairs Activities Public Affairs Activities Special Publications Special Publications Special Event Sponsorship Special Event Sponsorship
- 40. Personal Selling • Person-to-person communication –A seller attempts to assist and/or persuade prospective buyers to make a purchase or act on an idea
- 41. IMC Audience Contact Tools Broadcast media PPrriinntt mmeeddiiaa Public Relations/ publicity TTaarrggeett AAuuddiieennccee Broadcast media Public Relations/ publicity Internet/ interactive Internet/ interactive Direct marketing Direct marketing Sales Sales Promotion Promotion Product placements Product placements Events and sponsorship Events and sponsorship Word-of-mouth Word-of-mouth Out-of-home Out-of-home media media Personal selling Personal selling Point-of-purchase Point-of-purchase
- 42. Test Your Knowledge The _____ is a written document that describes the overall marketing strategy and programs developed for an organization, product line, or brand. A) promotional plan B) marketing plan C) communications plan D) marketing audit E) situation analysis
- 43. The IMC Planning Process • Developing an integrated marketing communications plan requires Planning Executing Evaluating Controlling
- 44. Basic Elements of a Marketing Plan 11.. AA ddeettaaiilleedd ssiittuuaattiioonn aannaallyyssiiss 22.. SSppeecciiffiicc mmaarrkkeettiinngg oobbjjeeccttiivveess 33.. AA mmaarrkkeettiinngg ssttrraatteeggyy aanndd pprrooggrraamm 44.. AA pprrooggrraamm ffoorr iimmpplleemmeennttiinngg tthhee ssttrraatteeggyy 5. A process for 5. A process for mmoonniittoorriinngg aanndd eevvaalluuaattiinngg ppeerrffoorrmmaannccee
- 45. Model of the IMC Planning Process Review of marketing plan Analysis of Promotional program situation Analysis of communications process Budget determination Develop integrated marketing communications program Sales promotion PR/ publicity Personal selling Direct marketing Develop objectives and strategy for each Develop message, media strategy, and tactics Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Program Internet/ Advertising interactive
Notas do Editor
- Relation to textThis slide relates to pages 3-5 of the text, which discusses Google and Internet advertising. Summary OverviewThis slide shows the home page of Google Adsense, from which one may sign up, sign in, or learn more about the program. Use of this slideThis slide can be used as part of a discussion about (a) how advertising has moved from traditional medium to the Internet, (b) how website owners have more control over their advertising, and (c) the cost of such advertising.
- Relation to textThis slide relates to pages 3-5 of the text, which discusses how Google achieved it’s success. Summary OverviewThis slide provides a general overview of what Google does, and how it achieved its success. Use of this slideThis slide can be used as part of a discussion of search engines in general, or during a comparison of various search engine results. Yahoo! is a competing search engine, as are MSN, Ask Jeeves, Dogpile, Excite, and AltaVista.
- Relation to textThis slide relates to pages 3-5 of the text, which discusses advertising on Google. Summary OverviewThis slide provides a general overview of the three types of advertising that can be purchase through Google. Use of this slideThis slide can be used as part of a discussion of choosing how to advertise on the Internet and how to allocate budget dollars based on advertising goals and ROI. For instance, site-targeted ads will generate some sales, but is most often used to build brand recognition. You are charged for the number of ads shown, regardless of whether a user clicks on them. The advantage is that when someone is searching for a particular product or service, your ad can be seen next to those of your competitors’.
- Relation to textThis slide relates to pages 4 of the text, which discusses Google’s expansion into other forms of advertising media. Summary OverviewThis slide provides a general overview of the three types of advertising that can be purchase through Google. Use of this slideThis slide can be used as a springboard into discussions about the future of advertising and the potential effect that Google can have on the marketplace if it becomes the dominant player in the field. For instance, will advertising become more expensive, or less? Will advertising become more effective or more diluted? What would happen if Google declined to allow certain types of ads or ads for certain products? How might other advertising firms try to maintain their customer base?
- Relation to textThis slide relates to page 5 of the text. Summary OverviewThe rapidly changing media environment is making it increasingly difficult to reach target audiences and communicate effectively with them. The mass media are losing viewers, listeners, and reads to the highly fragmented, more targeted digital media that allows consumers to be actively engaged in the communications process. Use of this slideUse this slide to prompt a discussion of the preferred types of media that students use when they are searching for a product or service. If they are looking for a new car, do they wait for the Sunday newspaper ads? Do they visit automobile dealerships? Do they search online first, then go to a dealer? Do they use the Internet to do comparison shopping or to read reviews?
- Relation to textThis slide relates to pages 5-6 of the text. Summary OverviewIn the past, the only advertising avenues were television, radio, billboards, and printed media. Ads in these media promoted the product or service for sale. Today, traditional media are used more and more to drive customers to online sites, where the information can be more detail, colorful, and interactive. Use of this slideUse this slide to discuss how traditional media is more and more often a “pointer” to an online device. Point out recent examples of oddball advertising in the news, such as when people agreed to temporarily tattoo the logo of the Golden Palace casino on their scalp, forehead, or pregnant belly in exchange for cash. Examples can be found on YouTube and eBay.
- Relation to textThis slide relates to page Summary OverviewT Use of this slideT
- Relation to textThis slide relates to “The Growth of Advertising and Promotion” topic on pages 6 through 8. Summary OverviewThis slide charts evidence of the increasing importance of advertising and promotion expenditures over the past three decades. Use of this slideThis slide can be used to discuss what factors have contributed to the tremendous growth in expenditures for advertising and promotion, such as growth of the U.S. and global economies and the efforts of expansion-minded companies to take advantage of these growth opportunities. In market-based economies, consumers have learned to rely on advertising and other forms of promotion for information that they can use to make purchasing decisions.
- Relation to textThis slide relates to material found on pp. 8-10 of the text. Summary OverviewThis slide presents the revised definition of Marketing developed by the American Marketing Association in 2004. This new definition views marketing as being more strategic in nature as well as more reflective of the role it plays in the functioning of an organization. Use of this slideThis slide can be used to discuss the new definition of Marketing developed by the AMA and some of the key aspects of marketing which include: creating, communicating and delivering value, focusing on customer relationships, using mass customization to deliver products and services in response to specific customer needs, and customer relationship management (CRM), which involves the systematic tracking of customers’ preference and behavior and adjusting the marketing program to meet their needs.
- Relation to textThis slide relates to the text on pages 9 and 10. Summary OverviewThis website is an example of how a company can make a product or deliver a service in a response to a particular customer’s needs. Use of this slideUse this slide to begin a discussion of other manufacturers that allow customization of their products. For example, CafePress.com allows customers to choose from hundreds, if not thousands, of pieces of artwork (or upload your own) and then apply it to the product of their choice, such as mugs, t-shirts, and hats.
- Relation to textThis slide relates to the text on page 10. Summary OverviewThis slide illustrates the four key elements of marketing. Use of this slideThis slide can be used when explaining that a proper marketing mix does not just happen. Marketers must understand the issues and options involved in each element of the mix, and how these elements can be combined to form an effective marketing program. Real estate agents, for example, often place a sign in front of the property to be sold in order to attract drive-by customers. They also place ads in newspapers or real-estate guides, and enter all the pertinent information into online databases so consumers can search for the properties that meet their individual needs. Larger real estate firms, or those with high-end properties for sale, sometimes advertise them on television as well.
- Relation to textThis slide refers to the material on pages 10 and 11 of the text. Summary OverviewThis slide shows a print ad for a Mont Blanc watch. Mont Blanc uses a classical design and a distinctive brand name, as well as a high price, to position its watches as high-quality, high-status time pieces. The upscale image is enhanced by the company’s strategy of distributing its products only though boutiques, jewelry stores, and exclusive retail shops. Mont Blanc’s distinctive image is a result of coordination of all of the marketing mix elements. Use of this slideThis slide can be used to show how Mont Blanc uses a variety of marketing mix elements including price, product design, brand name, and distribution strategy to create a high-quality, upscale image for its time pieces.
- Relation to textThis slide relates to material on pp. 9-11 of the text. Summary OverviewThis slide shows the traditional approach to advertising and promotion where many of the marketing and promotional functions were planned and managed separately with different budgets, different views of the market, and different goals and objectives. Many marketing activities, such as package design, sales promotion, and direct marketing services, were viewed as ancillary services and handled on a project basis rather than integrating them into the IMC program. Use of this slideThis slide can be used to show that the traditional approach to marketing communications that lacks coordination and consistency. The disconnected puzzle pieces demonstrate how traditional approaches to marketing communications viewed the various IMC tools as separate pieces of the puzzle, rather than having them all work together.
- Relation to textThis slide relates to material on pp. 12 of the text, which discusses the contemporary approach to integrated marketing communications. Summary OverviewThis slide shows the contemporary approach to advertising and promotion, which is referred to as Integrated Marketing Communications. This approach seeks to have all of a company’s marketing and promotional activities project a consistent, unified image in the marketplace. It calls for a centralized messaging function, so that everything a company says and does communicates a common theme and positioning. Use of this slideThis slide can be used to show the contemporary approach to marketing communications, which is coordinated and consistent. The connected puzzle pieces demonstrate how the various IMC tools are coordinated with media advertising and work together in a seamless fashion to create an effective communications program.
- Relation To Text This slide relates to the material on p. 121 of the text, which discusses the evolution of IMC. Summary Overview This slide shows the new definition of IMC developed by Don Schultz of Northwestern University, who is one of the leading IMC scholars. The three major aspects of this new definition of IMC are shown in the next slide. Use of this slide This slide can be used to present the new definition of IMC developed by Schultz. You might compare this new definition to the original definition of IMC developed by the American Association of Advertising Agencies, which is shown on p. 11.
- Relation to textThis slide relates to p. 12 of the text. Summary OverviewThere are several important aspects of the definition of IMC: Recognized as a business process – rather than just tactical integration of various communication activities. Importance of relevant audiences – externally these include customers, prospects, suppliers, investors, interest groups, and the general public. Employees are an example of an internal audience. Demand for accountability – increased emphasis on the outcomes of marketing communication programs. Use of this slideThis slide can be used to help students understand that IMC involves more than just coordinating the various elements of a marketing and communications program into a “one look, one voice” approach.
- Answer: E
- Relation to textThis slide relates to the material on page 12 and 13 of the text. Summary OverviewThis slide summarizes the benefits of strategically integrating communications functions, and the driving forces behind the communications environment… consumer trends, technology, and media. Use of this slideUse this slide to
- Relation to textThis slide relates to material on pp. 12-16 of the text, which discusses reasons for the growing importance of IMC. Summary OverviewA major reason for the growing importance of the IMC approach is the ongoing revolution that is changing the rules of marketing. These changes include: A shift in dollars from media advertising to other forms of promotions particularly consumer and trade oriented sales promotion. A movement away from mass media and advertising toward more targeted communication tools such as event marketing and sponsorship, direct mail, and the Internet. A shift in marketplace power from manufacturers to retailers resulting in retailers demanding larger promotional fees and allowances from manufacturers. Technology facilitated a rapid increase in database development and information sharing. Marketers are using this information to improve market targeting. Greater accountability from advertising agencies and changes in agency compensation. Companies are moving toward incentive-based systems of compensation. Rapid growth of the Internet. The interactive nature of the Internet has made it a vital part of any communications strategy. Use of this slideThis slide can be used to explain the reasons for the growing importance of IMC in contemporary marketing.
- Relation to textThis slide relates to material found on pp. 16-18 of the text. Summary OverviewWith 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. Use of this slideThis slide can be used to define brand identity and discuss the importance of building and sustaining strong brand identity. The next slide presents some of the most valuable brands in the world.
- Relation to textThis slide relates to Figure 1-1, on page 16 of the text. Summary OverviewThis table presents the world’s most valuable brands, as measured by Interbrand, a leading brand consultancy company. Use of this slideUse this slide to emphasize that a strong brand can have as much value as factories, patents, and cash, because strong brands have the power to command a premium price from consumers and from investors. Before displaying the table, you may wish to ask students to identify the brands that they think are the most valuable. You may wish to poll students to call out positive descriptive terms and/or phrases that they associate with each brand. Then do the same with negative terms/phrases. How hard was it to come up with negatives? Compare the length of the lists.
- Relation to textThis slide relates to the material in IMC Perspective 1-2 on p. 17. Summary OverviewMarketers are finding that they can no longer build and maintain brand equity merely by spending large sums on money on media advertising. Brands are becoming less about the actual product and more about how people relate to them. Use of this slideUse this slide to initiate a discussion about how astute marketers are finding ways to build relationships with customers. In other words, they are moving away from one-way communication to an interactive model, whereby consumers can easily communicate with them as well as with other customers.
- Relation to textThis slide relates to the material in IMC Perspective 1-2 on p. 17. Summary OverviewThis slide continues the previous discussion about consumer-driven branding techniques. Use of this slideThe point of this slide is to get students to think about building a brand without saturating the media with expensive ads. For instance, it doesn’t cost much to allow potential customers to test computers and iPods before purchasing them. Starbucks believes that “the product is the experience,” and that people visit their cafes for the relaxed ambiance, the music, and the service they receive. MySpace and Facebook became part of popular culture with little or no advertising, as did Google. Point out that, ironically, Google relies primarily on word of mouth and media coverage to build and maintain brand awareness and equity, even though it makes money by selling online advertising.
- Relation to textThis slide relates to material on page 18-23 and Figure 1-2. Summary OverviewThe basic tools used to accomplish an organization’s communication objectives are often referred to as the promotional mix. These tools include: Advertising – any paid form of non personal communication about an organization, product, service, or idea by an identified sponsor Direct marketing – communication directly with target customers to generate a response and/or transaction Interactive/Internet marketing – communication through interactive media such as the Internet, CD-ROMS and kiosks. Sales promotion – marketing activities that provide extra value or incentives to sales force, distributors, or consumers to stimulate immediate sales Publicity/Public Relations – Publicity is a form of non-personal communication not directly paid for or run under identified sponsorship. Public relations is a management function which executes programs of action to earn public understanding and acceptance an enhance the image of the company. Personal Selling – person-to-person communication between a seller and buyer Use of this slideThis slide can be used to introduce and define the various elements of the promotional mix.
- Relation to textThis slide relates to the material on pp. 18-20 of the text. Summary OverviewThis is a definition of advertising, along with its key points. Use of this slideUse this slide to emphasize the nonpersonal nature of advertising. Advertisers throw ads at thousands, sometimes millions, of viewers and hope that it “sticks” to the desired audience. These ads may appear on TV, radio, magazines, or newspapers, although there is no effective substitute for ads on network television. For instance, a 30-second commercial on the four major networks during evening prime-time programming reaches 6 million households. The cost per thousand households reached during prime time in 2007 was $22.87, or just over 2 cents per household.
- Relation to textThis slide relates to Figure 1-4 in the text. Summary OverviewThe nature and purpose of advertising differs from one industry to another and/or across situations. Advertising can be targeted toward consumer and/or business markets. Consumer advertising is classified as: National advertising – done by large companies on a nationwide basis. Ads for well-known brands and companies shown on television are an example. Retail/Local advertising – done by retail and local merchants encouraging consumers to shop at a specific store, use a local service, or patronize a particular establishment. Primary versus selective demand advertising – primary demand advertising is designed to stimulate demand for the general product class or industry. Selective-demand focuses on creating demand for a specific company and/or its brands. Advertising to business and professional markets includes: Business to business advertising – advertising that targets individuals who buy or influence the purchase of industrial goods or services for their companies. Professional advertising – advertising targeted to professionals such doctors, lawyers, engineers, and the like. Trade advertising – targeted to marketing channel members such as wholesalers, distributors, and retailers. Use of this slideThis slide can be used to explain the various types of advertising and how the role of advertising can vary given the target customer, goals and objectives, or situation.
- Relation to textThis slide relates to material on p. 20 of the text. Summary OverviewDirect marketing is one of the fastest-growing sectors of the U.S. economy. It is a form of integrated marketing communications whereby an organization communicates directly with target customers to generate a response and/or transaction. It involves a variety of activities, including: Direct mail Direct response advertising (on TV, radio or in magazines or newspapers) Telemarketing Internet Sales Catalogs Shopping channel Use of this slideThis slide can be used to provide an overview of direct marketing and the various forms it can take.
- Relation to textThis slide relates to material on p. 20 of the text. Summary OverviewThis slide shows a direct response print ad for Bose Corporation promoting its audio products. There is a response card in the ad as well as an 800 number to encourage the consumer to make an inquiry or even a purchase. Direct response advertising and other forms of direct marketing have increased in popularity due to: Changing lifestyles, particularly two-income households with more income, but less time to shop. Availability and use of credit cards Toll free telephone numbers Rapid growth of the Internet Use of slideThis slide can be used to show an example of a direct response ad. Although direct mail is the primary medium for this form of advertising, direct response ads often appear in magazines. Direct mail pieces range from simple letters and flyers to detailed brochures, catalogs, and videotapes.
- Relation to textThis slide relates to information found on page 22 of the text. Summary OverviewOver the past decade, there have been dynamic and revolutionary changes in marketing, advertising, and promotion. These changes are being driven by advances in technology and interactive media, which allow a back-and-forth flow of information. Use of this slideUse this slide to discuss how we now take interactive communication for granted, although it has only been around for a decade or so. The fact that we accept, and even expect, such interaction shows how quickly it has become ingrained it society today. You may also wish to poll the class to see if the type of interactive technology preferred, or the rate at which it is accepted, varies across segments of the population. For instance, do older Americans text message as often as those in their 20s and 30s? Does one age group prefer CDs over iPods, or vice versa? Does income level, type of job, or education level impact the use of, or preference for, certain technologies? These are important things to consider when selecting the advertising tools to be used with a target market.
- Relation to textThis slide relates to the material on p. 21, which discusses the “Perspectives” campaign for the Sharp Aquos LCD television. Summary OverviewThis video clip, created by the Wieden & Kennedy advertising agency as part of the “Perspectives” campaign, is a commercial with a strange ending. It encouraged viewers to visit the “MoretoSee.com” Web site to solve the mystery of why the car ran into the water. The site contained video clips, character blogs relating various events, chat rooms in which site visitors could work together to solve the mystery, as well as audio and video clues. While there, consumers also learned about the Aquos television. Use of slideThis slide can be used to show how a marketer can integrate television advertising and the Internet to build awareness of their company and its products or services.
- Relation to textThis slide relates to material on pp. 22-23 of the text, which discusses interactive marketing and the Internet as IMC tools. Summary OverviewRapid changes in technology have led to dramatic growth of communications through interactive media, particularly the Internet. The Internet is a unique communication medium in that it allows for back-and-forth information in real time. Customers can perform a variety of functions on the Internet, such as receive and alter information and images, make inquires, respond to questions, and make purchases. The Internet has changed the ways companies communicate with their customers, and companies and organizations of all sizes have developed websites to promote their products and services. Use of this slideThis slide can be used to show that the Internet has changed the way companies market themselves. Because of its interactive nature, it is a very effective way to communicate with customers. And, it is a medium that can be used to execute all elements of the promotional mix. In addition to online advertising, companies can also offer sales promotion incentives (coupons or contests), do direct marketing, and execute public relations and personal selling functions. This may be a good point at which to discuss websites in general. What do students expect to find on most company websites? (Products, services, “About Us,” references, news releases, Help, and contact information are common.) What do students find most annoying about websites? (Slow response, confusing menus, too many links [drill downs] to find what they’re looking for, too many other advertisements, pop-up ads?)
- Relation to textThis slide relates to material on pp. 23-24 of the text, which discusses the role of sales promotion as an IMC tool. Summary OverviewSales promotion is defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. Sales promotion is generally broken down into two categories: Customer-oriented – targeted to the ultimate user of the product or service and includes coupons, sampling, premiums, contests, sweepstakes, refunds/rebates, bonus packs, events, and loyalty programs. Trade-oriented – targeted to marketing intermediaries such as wholesalers, distributors, and retailers and includes trade allowances, price deals, sales contests, trade shows, and cooperative advertising. Use of slideThis slide can be used to introduce sales promotion as an IMC tool and the various types of consumer and trade promotions.
- Relation to textT Summary OverviewT Use of this slideT
- Answer: C
- Relation to textThis slide relates to material on pp. 24-25, which discusses publicity and public relations. Summary OverviewAnother important component of an organization’s promotional mix is publicity/public relations. Publicity refers to the non personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. Companies attempt to get the media to cover or run favorable stories on their products, services, or causes. It usually comes in the form of a news story, editorial, or announcement. There are a number of advantages and disadvantages that publicity has relative to advertising. This slide compares advertising and publicity on a number of factors. Use of this slideThis slide can be used to introduce publicity/public relations and to discuss how publicity compares to advertising.
- Relation to textThis slide relates to the material on page 24. Summary OverviewCompanies attempt to get the media to cover or run favorable stories on their products, services, or causes. There are a number of publicity vehicles available to marketers. Publicity can be generated through the use of: Feature articles News releases Press conferences Special events Interviews Use of SlideThis slide can be used to show the various methods that can be used to generate publicity for companies, brands, organizations, or causes.
- Relation to textThis slide relates to the material on page 23. Summary OverviewPublic relations generally has a broader objective than does publicity. It’s purpose is to establish and maintain a positive image of the company among its various publics. Use of Slide Use this slide to explain that public relations is an attempt to show a company in a positive light, and to feed information into the sources from which publicity arises.
- Relation to textThis slide relates to the material on page 25, which discusses public relations. Summary OverviewThere are a variety of public relations tools with which marketers can try to enhance an organization’s image. Examples include publicity vehicles, special publications, community activities, fund raising programs, public affairs activities, and special event sponsorships. Organizations can also use advertising as a public relations tool. Use of SlideThis slide can be used to explain the various public relations tools. It also provides another opportunity to discuss the differences between public relations and publicity. You may also want to poll students to see if they have recognized such tools being used in the media. For instance, which companies have been promoting their efforts to “go green” or to help communities.
- Relation to textThis slide relates to the material on page 25. Summary OverviewPersonal selling is the final element of an organization’s promotional mix. Unlike advertising, personal selling involves direct contact between buyer and seller. This can be face-to-face or through some form of telecommunications, such as telephone sales. This interaction allows the seller to see or hear the potential buyer’s reactions and modify the message accordingly. Use of Slide Use this slide to introduce personal selling and to emphasize that it involves immediate feedback and selection of a target audience.
- Relation to textThis slide relates to material on p. 26 and Figure 1-5 of the text. Summary OverviewA key aspect of IMC is that it encourages marketers to consider a variety of communication tools and how they can be used to deliver messages about their company or brands. Use of this slideThis slide can be used to discuss that marketers must determine how valuable each contact tool is and how they can be combined to form an effective IMC program.
- Answer: B
- Relation to textThis slide relates to the material on pp. 26-28 of the text. Summary OverviewThe integrated marketing communications plan provides the framework for developing, implementing, and controlling an organization’s IMC program. Those involved with the IMC program must decide on the role and function of the specific elements of the promotional mix, develop strategies for each element, determine how they will be integrated, plan for their implementation, consider how to evaluate the results achieved, and make any necessary adjustments (control). Use of Slide Use this slide to introduce the four major areas that must be considered when developing an IMC program.
- Relation to textThis slide relates to the material on pp. 28-29 of the text. Summary OverviewThe first step in the IMC planning process is to review the marketing plan and objectives. Marketing plans can take many forms, but generally include the elements shown in this slide. Use of Slide Use this slide to explain the elements of a marketing plan and to emphasize that good IMC planning begins with a review of the overall marketing plan and objectives. A situation analysis consists of an internal marketing audit and review and an external analysis of the market competition and environmental factors. Specific marketing objectives provide direction, a time frame for marketing activities, and a mechanism for measuring performance. A marketing strategy and program includes selection of target markets and decisions and plans for the four elements of the marketing mix. A program for implementing the marketing strategy includes determining the specific tasks to be performed, and responsibilities. There must be a process for monitoring and evaluating performance, and then providing feedback, so that proper control can be maintained and any necessary changes can be made in the overall marketing strategy or tactics.
- Relation to textThis slide presents the IMC Planning Model, which is shown in Figure 1-6 and discussed on pp. 26-35. Summary OverviewThis slide presents the IMC Planning Model which is discussed in detail in Chapter 1. This model presents the framework for developing, implementing, evaluating, and controlling the firm’s IMC program and activities. Use of Slide This model should be reviewed very carefully to show students what is involved in the development of a complete IMC program. It presents the framework that is used for the text and presents students with the “big picture” and a roadmap of what will be covered in the course. The activities that should be performed during each of the steps shown above is detailed in the illustration on page 31 of the text.