Integrated Marketing Communications

1. Integrated Marketing Communications Jeremy Kees, Ph.D.

3. Advertising

4. Some thoughts… “I know I’m wasting half of my ad spend….I just don’t know which half.” We’re in a advertising/promotions world…full of clutter…and it’s a vicious cycle”

5. Overview of Advertising… • Paid and non-personal communication through various media by business firms, not-for-profit organizations, and individuals who are identified in the advertising message and who hope to inform or persuade members of a particular audience

6. Step 1: Setting Objectives • Inform • Persuade • Remind • Reinforce What is the goal? • Heinz? • Honda? Cog • Based on the PLC…

7. Message Generation and Execution • Comparative Advertising • Pepsi

8. Message Generation and Execution • Celebrity Testimonials • Risks??

9. Message Generation and Execution • Interactive Advertising • Wrigley's

10. Message Generation and Execution • Message Appeals… • Fear • Example 1 • Example 2 • Sex • Example 1 • Example • Humor • Example • Example 1 • Example 2 • Emotion Evoking (sadness and humor) • Example

11. Media Selection • Just as important as the ad itself • Radio • Newspapers

12. Media Selection • Magazines • Direct Mail • Outdoor • Human Billboards • http://www.tatad.com/

13. Creative Development and Execution • Interactive Media • Television

14. Legal and Social Issues • Common sense (e.g., don’t be false or misleading) • Not-so-common sense (e.g., reaching your target market—and ONLY your target market) • Cigarettes/Alcohol • Norelco and other risqué ads

15. Legal and Social Issues • The value in being proactive in spending ad/promo $$ on tangential social issues • Corporate Social Responsibility (CSR) • An example… • Dove

16. Sales Promotions • A collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade • Customer Oriented • Trade Oriented

17. Why Sales Promotions? • Increased Promotional Sensitivity • Declining Brand Loyalty • Response to Competition (viscous cycle) • Brand Proliferation • Fragmentation of Markets • Pressures for Short-Term Performance • Increased Accountability • Advertising Inefficiency

18. Consumer-Oriented Promotions • Coupons

19. Consumer-Oriented Promotions • Refunds • Similar to Rebates • Samples • Bonus Packs • Premiums

20. Consumer-Oriented Promotions • Contests • Sweepstakes

21. Consumer-Oriented Promotions • Specialty Advertising • Peanut Chews Opening Night T-Shirt

22. Consumer-Oriented Promotions • Event Marketing • Becoming part of a personally relevant moment in consumers’ lives • Sponsorships are perhaps the most prevalent/popular form of event marketing • Example: Bryant Park and the Simpsons • Free ice skating (skate rentals) • Ned Flanders' hot chocolate • Simpsons Sprinkalicious donuts • "Duff & D'oh!Nuts" ice cream • Empire State Building of shining “Simpsons” yellow

24. Trade-Oriented Promotions • Trade Allowances • Point-of-Purchase Displays • Trade Shows • Dealer Incentives

25. And finally… • Marketers’ response to the DVR / TiVo revaluation… • Product placement • Some examples • Apprentice / Survivor • The Office (1) • We now see it in… • Movies • TV programming • Video games

26. Group Exercise • Is product placement a useful tool for marketers? • If so, under what circumstances • Are there any ethical considerations? • For instance, some countries not permit product placements in domestic made films.

27. Marketing Public Relations (MPR) • The firm’s communications and relationships with its various publics • Includes a variety of programs to promote or protect a company’s image or individual products Corporate Ads – Boeing VSB

28. MPR Functions • Building Marketplace Excitement • PS3 • Creating Advertising News • Super Bowl Ads • Substitute for Advertising • Providing Value-Added Customer Service • Butterball

29. Advantages of MPR • Credibility • Cost • Avoidance of Clutter • Image Building

30. Publicity …. nonpersonal stimulation of demand for a good, service, place, idea, person, or organization by unpaid placement of significant news regarding the product in a print or broadcast medium Sprint Fires Customers Really, a subset of the MPR effort.

31. Advantages of Publicity • Credibility (even more than public relations) • News Value Disadvantages??

32. Personal Selling …. interpersonal influence process involving a seller’s promotional presentation conducted on a person-to-person basis with the buyer • Oldest and most traditional form of “marketing” • Traditionally a negative stereotype (unfortunately) • Today, we see an emphasis on “relationship selling” • Emphasis on LTV of customers • Constant building/fostering of relationships

33. Today’s Salesperson… • A highly-trained professional • Takes a customer-oriented approach in order to satisfy the long-term needs of both the customer and the selling firm • Problem solvers • Account managers • Know customers inside and out so that the company can adapt to customer needs

34. Huge $$ Potential (if you’re good)

35. The Sales Process

36. Sales Force Decisions • Objectives • Strategy • Structure • Size • Compensation