Marketing Communications Second Lecture

IMC
•Carefully integrating and
coordinating the company's many
communications channels to deliver
a clear, consistent and compelling
message about the organization and
its products.

Personal Selling
Advertising
Direct Marketing
Digital
Sales Promotion
Public Relations
Promotional
Mix
Event Marketing

“Advertising
is the last
unfair legal
competitive
advantage.”

What other
ad campaigns
would you
include?

Advertising
Tool Strengths Weaknesses
Advertising • An efficient means of
reaching large numbers of
people both online and offline
• Many affordable online
options exist for marketers
with small budgets
• Online and offline options
can work together to enhance
messaging
• Advertisers control
messaging
• Higher cost of offline
approaches
• Difficult to evaluate offline
approaches
• High clutter both online and
offline
• Low credibility of messaging
• Viewers avoid both online and
offline messaging

Advertising Objectives
• An advertising objective is a specific
communication task to be accomplished
with a specific target audience during a
specific period of time.
• Classified by purpose:
–Inform, persuade, compare, remind

Creating Advertising Messages
•Message strategy and execution
must break through the clutter
•Advertising is being merged with
entertainment

Planning the Message Strategy
• Identify customer benefits that can be used as
advertising appeals
• Develop a compelling creative concept-the “big
idea”
• Choose an advertising appeal that is:
–Meaningful, Believable, Distinctive

The appeal should:
• Point out the benefits of the product making
it more desirable.
• The appeal should be believable and
distinctive.
• The creative concept is referred to as the
big idea.

The appeal should be
meaningful, believable
and distinctive?

Is this 50 year old video
still relevant? Explain.

What is the ‘big idea’ here?

What is the
‘big idea’ here?

In advertising, there is no
standardization or fixed
rules, but a type of process
is commonly followed

Did the communications
solution solve the
communications
problem for Old Spice?

Creating a great message
is only half the battle…

The other half is getting it to the
right people at the right time.

Each media type has specific
advantages and disadvantages
• Choosing among media types requires
consideration of the:
–Medium’s impact
–Message effectiveness
–Cost
• The media mix should be regularly reexamined

Advertising Options – advantages
and disadvantages
Medium Advantages Disadvantages
Internet • Video and audio capabilities
• Animation and sound can
get attention
• Ads can be interactive
• Ad can be placed on
websites, web portals, search
engines, or social networks
• Detailed information can be
conveyed
• Many creative options
• Easy to measure
• Can be low cost
• Animation and interactivity
require large files that can have
long load-times
• High avoidance
• Short attention spans on the
Internet

and disadvantages
Television • Reaches a wide audience
• Uses sight, sound, and
motion
• Can target specific
audiences
• Excellent for products
requiring demonstration
• Highly visible
• High cost to create ads
• High cost to purchase media
• Short exposure time
• Perishable message
• Difficult to convey complex
information
• High avoidance
• Difficult to measure

TV is an
entertainment
medium, so TV
ads must
entertain and
inform

and disadvantages
Newspapers • Strong in local markets
• Short lead-times for ad
placement
• Flexible ad sizes
• Ads can be clipped and
saved
• Detailed information can
be conveyed
• Can be low cost for local
placements
• Ads compete for attention
with other newspaper features
• Advertising clutter
• Short lifespan
• Poor colour reproduction
• Relatively high cost for
national ads

Where do
you get
your news
from?

Who read a
newspaper
yesterday?
1. Yes
2. No

Is the future of
newspapers digital?

and disadvantages
Magazines • Can target specific audiences
• High-quality colour
• Pass-along readership
• Ads can be clipped and saved
• Complex information can be
conveyed
• Long lead-times
• Relatively high cost
• Advertising clutter
• Ads compete for attention with
other magazine features
Radio • Low cost of media and
production
• Good for local businesses
• Short lead-times
• No visual elements
• Perishable message
• Background media
• Difficult to convey complex
information
• Difficult for national campaigns

and disadvantages
Outdoor/
Transit
• Relatively low cost
• Local market focus
• High visibility
• Strong opportunity for repeat
exposure
• Good for building awareness in
short time
• Cannot be turned off
• Message must be short and simple
• Low selectivity of audience
• Visual pollution

The Message Strategy
• Need a good message to communicate.
• Break through advertising clutter.
• Media proliferation has made attracting
attention very difficult for advertisers.

Therefore
marketers
need to
be_______

In times of
great need
we need
great______?

‘We know 50% of
our advertising is
effective. We
just don’t know
which 50%.’

Higher costs of
production and
media time make
it vital for ads to
produce
measurable results

How do you
define good
advertising?

How does
a marketer
define good
advertising?

“We sell,
or else”
David Ogilvy

Evaluating Advertising
• Ultimate test is whether sales have increased.
• Measure before & after an ad campaign to
measure results.
• Online advertising the easiest to measure
based on conversion rates and the ability to
prompt immediate calls to action.

Public Relations
Public
relations
• Highly credible messages
when spread by the media
• Inexpensive, particularly
when using social media
• New measurable tools
available due to social
media
• Can be well-integrated
into IMC programs
• Unable to control media
messaging
• Difficult to influence the
number of messages spread
through the media
• Results can be difficult to
evaluate

Public Relations
• Building good relations with the company’s
various publics by:
–Obtaining favorable publicity
–Building up a good corporate image
–Handling or heading off unfavorable
rumors, stories, and events

What firms are
currently getting
good PR?

Public Relations Tools
Crisis management can be an important
aspect of public relations.
Press
Release
Press
Conference
Special
Events
Company
Reports
Social Media
Release

What firms are
currently
getting bad PR?

“Every crisis is a
social media crisis
because that’s
where people go for
information.”

How has social media
such as, Facebook,
Twitter and YouTube
changed the nature of
crises for companies?

Sales Promotion
Sales
Promotion
• Effective at increasing short-
term sales
• Many options are available
both online and offline
• Social media provides an
affordable way to
disseminate offers
• Results are measurable
• Can be well-integrated into
IMC programs
• Fraud can occur
• Can lead to promotional wars
• Promotions can be easily
duplicated by competitors
• Consumers may wait for a
sales promotion before
purchasing
• Legal regulations are complex

Consumer Sales Promotions
Promotional
Tool
Explanation
Coupons Price reductions offered in exchange for electronic or paper documents. Can be
distributed online, on-pack, through flyers, or on shelf.
Premiums Offers that provide merchandise for free or at a significant savings in exchange
for proof-of-purchase of a product.
Contests Offers where participants require a skill to win a prize such as creative
submissions.
Sweepstakes Offers which are pure games-of-chance and where consumers often participate
by completing an entry form and, if selected as a winner, answering a skill-
testing question.

Consumer Sales Promotions
Promotional Tool Explanation
Samples The provision of free products to encourage consumers to try and
purchase a product.
Loyalty Programs Programs that encourage and reward customers for ongoing purchases
with points that can be redeemed for rewards.
Rebates A price reduction supplied via mail in exchange for proof-of-purchase.
Bonus packs/ special
packs
The provision of oversized packs or bonus items attached to the original
product.
Point-of-purchase
materials
The use of in-store merchandising such as display materials, banners,
floor decals, and posters to draw attention.

Trade Sales Promotions
Promotional Tool Explanation
Trade Shows Participation in industry events that showcase new products and
initiatives.
Off-invoice
allowances
A price reduction taken off the invoice of a purchase that is made
within a specific time frame.
Merchandising
allowances
A price reduction taken off a purchase in return for displaying the
product.
Co-op advertising The contribution of funds for inclusion in a wholesaler, distributor,
or retailer advertising program such as a flyer.

Direct Response Marketing
Direct
response
marketing
• Messages can be
targeted through online
and offline approaches
• Facilitates customer
relationships
• Results are measurable
• High cost of offline and
online approaches
• Negative customer
reactions
• Clutter
• Requires a well-
constructed database to
be done properly

Direct Response Marketing
• Requires a comprehensive and up-to-date
database
• Use metrics to evaluate success
• Lead Generation
• Traffic Generation

Event Marketing and Sponsorship
Event
marketing and
sponsorship
• Small branded events can be used
to create a buzz and spread viral
messages
• Major event sponsorships can
reach large audiences and create
positive associations
• Can be integrated into IMC
programs
• Sponsorships can be carried into
the online environment
• Buzz can be affordably created
through microsites and social
media
• Large event sponsorships can be
limited to awareness-building
messages
• Sponsorships can be costly and
difficult to evaluate
• Results can be difficult to
measure

Product Placement and
Branded Entertainment
Product
placement and
branded
entertainment
• Seamless product
integration into
programming
• Can create a
positive association
for the brand with a
particular movie or
TV show
• Can be expensive
• Product placement is
becoming ubiquitous

Personal Selling
Personal
selling
• Personal interactions can build
lasting relationships with
consumers
• Online approaches can be used
to enhance relationships
• An important approach for
expensive products
• Can be used in large and small
businesses
• Can be a strong form of
product differentiation
• Can become expensive when
large salesforces are involved
• Consistency in approach and
messaging is difficult to achieve
• People may not want to engage

Like Phil Dunphy,
who wants to
work in selling?

How many of you are
currently involved
in personal selling in
some form?

Who will work
in selling?
Everyone!

Personal Selling
• Personal presentation by the firm’s sales
force for the purpose of making sales
and building customer relationships
– Order taker / Order getter
– Creative selling
– Social selling
– Relationship building

Personal Selling
Stage Objective Comments
1) Prospecting Search for and qualify
prospects
Start of the selling process; prospects
generated through advertising, referrals, and
cold canvassing
2) Preapproach Gather information and
decide how to approach
the prospect
Information sources include personal
observation, other customers, and company
salespeople
3) Approach Gain prospect’s attention,
stimulate interest, and
make transition to the
presentation
First impression is critical; gain attention and
interest through references to common
acquaintances, a referral, or product
demonstration

Personal Selling
Stage Objective Comments
4) Presentation Begin converting a
prospect into a customer
by creating a desire for the
product or service
Different presentation formats are possible;
involving the customer is critical; responding
to objections is key; a professional ethical
approach is needed
5) Close Obtain a purchase
commitment from the
prospect and secure a
customer
Salesperson asks for the order; different
approaches include the trial close and
assumptive close; trial close can be used at
any stage
6) Follow-up Ensure that the customer is
satisfied with the product
or service
Resolve any problems faced by the customer
to ensure customer satisfaction and future
sales possibilities

How many of
you have
recently
purchased an
item involving
a salesperson?

What struck you about the salesperson’s:
• Appearance?
• Presentation?
• First impressions?
• Product knowledge?
• Who did they talk to?
• How did they establish a rapport?

Closed Conversation
•Salesperson says, "can I help you?"
•The prospect politely says, "no
thanks, just looking.“
•The conversation is now closed

Open Conversation
•That's a [insert adjective here] tie
you're wearing, sir. Where did you
buy it?"
•Conversation is now open.

“Attention has been paid, a
rapport can be built. They can
talk about ties. And good taste.”

“Open conversations generate
loyalty, sales and most of all,
learning... for both sides.”
Seth Godin, Open conversations (or close them), Oct. 11, 2011

Presentation
• A - Attention
• I - Interest
• D - Desire
• A - Action

Importance
of being a
good active
listener

Designing
Marketing
Communication
Programs

Push versus pull
promotion strategy

Steps in the Marketing Communications Process
customer
touch
points
Product
life
cycle

Would you rather
reach 100% of people
and convince them 10%
of the way or reach 10%
of people and convince
them 100% of the way?
The advertising cost is
the same.

Deciding on Reach and Frequency
• Reach: Percentage of people exposed
to ad campaign in a given time period
• Frequency: Number of times a person
is exposed to advertisement

Steps in the Marketing
Communications Process

Marketing Communications Second Lecture

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