Integrated Marketing Communications and Promotion

1. Integrated Marketing Communications and Promotion • Elements of promotion • Advertising strategies • Other methods of promotion

2. Advertising Sales Promotion Sales Coupons Rebates Premiums Personal selling Public relations Direct marketing Elements of the Promotion Mix

3. Introduction Awareness Trial Growth stage Persuasion to buy product Brand preference Solid distribution Maturity Maintenance of Sales Distribution channels Shelf space The Product Life Cycle and Promotional Objectives

4. Promotion by Decision Stage • Pre-Purchase • Influence decision, preference • Samples to induce trial • Purchase • Sales promotion • Point-of-purchase (POP) displays • Post-purchase • Increase repurchase propensity

5. “Push” Make product readily available to buyers “Hard” sell to Distributors Consumers Heavy sales promotions “Pull” Create demand for products “When you care to send the very best” “Snapple—made from the best stuff on earth” Channel strategies

6. Promotional Objectives and the Hierarchy of Effects • Awareness • Interest • Evaluation • Trial • Adoption • Repurchase

7. Bases for Advertising Budgets • Percentage of sales • Percentage of profits • Competitive parity • Affordability • Objective and task

8. Developing the Advertising Program • Identifying the target audience • Specifying advertising objectives • Setting the advertising budget • Designing the advertisements • Informational/persuasive • Fear appeals • Sex appeals • Humor appeal

9. Television Conventional advertisements Infomercials Sponsorship programming “Placements” In programming “Superimposed” Radio Magazines Newspapers Outdoor Internet Point-of-purchase Other Movie theaters On other products Some Media Alternatives

10. Pre-testing Portfolio test Jury tests Need to test a very large number of tests Possible redesign Carrying out advertisement Full service agencies Limited service agencies In-house Executing The Advertising Program

11. Advertising Intensity and Return --A Typical Relationship The “S”-Shaped Curve 1 0.8 Relatively high effectiveness Saturation Point 0.6 Response (e.g., sales, recall) 0.4 Too little to do much good 0.2 0 0 5 10 15 20 25 Amount of Advertising Spending

12. Measuring Advertising Effect • Several possible criteria: • Increase in sales(but it may be impossible to separate effects of different simultaneous ads) • Lab studies: • Recall • Attitude toward product • Preference

13. One-sided vs. two sided appeals • One-sided: only saying what favors your side • Two-sided: stating your case but also admitting points favoring the other side • Why is this effective?

14. Elaboration and Likely Effectiveness of Celebrity Endorsements Is endorser congruent with product endorsed? Product important or expensive? Yes No Yes high elaboration low elaboration low elaboration No More likely to be effective Unlikely to be effective Celebrity endorsements more likely to be effective

15. Symbolism • Green: Health in U.S.; in Latin America, jungle (associated with danger) • Marlboro man: freedom in U.S.; dusty, unappealing life in Hong Kong • Perfume against raindrop: Cool, refreshing feeling to Europeans; symbol of fertility to some Asians

16. Cultural Dimensions in Advertising • Directness vs. indirectness • Comparative advertising • Humor appeal • Gender roles • Explicitness • Sophistication • Popular vs. traditional culture • Information content vs. fluff

17. Advertising Standardization: Advantages • Economies of scale • Consistent image • Appeal to global consumer segments • Conservation/maximum utilization of creative talent • Cross-fertilization--moving knowledge across markets Essentially parallel to product/ positioning standardization

18. Disadvantages • Cultural differences • Advertising and promotional regulations • Market lifecycle stage (maturity) • Local commitment to campaign (“Not-invented-here) Again, parallel to product/ positioning standardization

19. Humor • Humor appears to be a universal phenomenon • However, there are great differences in form across the World • “A can a week is all we ask” worked in U.S. but was seen as silly in Canada

20. Values • Americans tend to emphasize individuals; in other cultures, standing out from the group may not be desirable • Popular vs. traditional culture • Perception of comparative advertising • Eastern Europeans want more facts in advertising

21. Legal Issues in Promotion • Media allowed for advertising • Comparative advertising • Price promotions • coupons • premiums

22. Western “Atomistic”—broken down to smallest component parts “Unique selling propositions” “How to” Positioning May be “dull and boring” “Copy focused” Asian Holistic “Everything relates to everything else” How things “fit together” and “relate” Visual and oral Contrasting Advertising Perspectives (Aithison 2002) Jim Aitchison, How Asia Advertises, New York: Wiley, 2002.

23. Coupons In ads In store Electronic Deals Premiums Contests Sweepstakes Samples Continuity programs Point-of-purchase displays Rebates Product placements Promotion Options

24. Trade Promotions • Allowances and discounts • Reimbursement for costs • Slotting fees • Quantity discounts • Premiums • Fixtures • Cooperative advertising • Training

25. Public Relations and Publicity • Advantages of media coverage over advertising: • cost • credibility • attention • Issues • “Two-way street”--must provide something of interest to media

26. Making a News Release--Issues • Properties of a good news release • timing--for event and journalist’s schedule • brevity--if you can’t say it in two pages, how do you expect the journalist to? • Interest to readers • content • quotes • facts

27. Personal selling • Traditional vs. consultative selling • Commission vs. salary