Transcript Promotion Management - Faculty Web Server

What is IMC?
The practice of unifying all marketing
communication efforts so they send a
clear, consistent, persuasive message
to target audiences.
Book
IMC Example
http://thedarkknight.warnerbros.com/
Advertising
Paid, sponsor-identified, nonpersonal (media) communications.
Advantages
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Low cost per contact
High degree of control
Best differentiation tool
Best brand equity builder
Disadvantages
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Very high overall cost
Difficult to determine
effectiveness
Credibility problems
Clutter
Sales Promotion Uses
Introduce new products
Get existing customers to buy more
Attract new customers
Combat competition
Maintain sales in off season
Increase retail inventories
Tie in advertising & personal selling
Enhance personal selling efforts
Sales Promotion
Advantages
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Response is more
immediate than
advertising.
Appeals to price sensitive
consumers
Generates extra interest in
advertising
Easy to measure effects
High control
Disadvantages
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Short term impact
Often abused
Promotion wars
Negligible brand image
effect
Publicity
Non-paid, unsponsored, nonpersonal (media) communications.
Advantages
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Most credible
Low cost mass
communication
Disadvantages
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Very little control
Requires media
cooperation.
Can be negative.
Personal Selling
Advantages
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Low overall costs
Best for complex info
Very specific targeting
Direct feedback
Flexible message
Disadvantages
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Very high cost per contact
Difficult to communicate a
uniform message
Medium level of control
IMC Players
Advertiser or Client
Advertising Agency
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AAAA; AAF; ARF
Media Organizations
Marketing Communications Specialists
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Direct Marketing Agencies
Sales Promotion Agencies
Interactive Agencies
Public Relations Firms
Collateral Services
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Namelab; Strategic Name Development
Reasons for Using an Agency
Obtain services of highly skilled
specialists
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Artists
Writers
Media analysts
Researchers
Others with specific skills
Obtain an objective point of view
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Free of internal policy constraints and
biases
Broad range of experience, having
worked with:
Diverse marketing problems
Various types of clients
Full-Services Agencies
Full Range of Marketing,
Communication and
Promotion services
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Planning, creating,
producing advertising
Performing research
Selecting media
Non-Advertising Services
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Strategic market planning
Sales promotion and sales
training
Production of trade show
materials
Package design
Public relations and publicity
Agency Services
Account services
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The link between agency and client
Managed by the Account Executive
Marketing services
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Research department may design and
execute research programs
Media department may analyze, select
and contract media resources
Creative services
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Creation and execution of ads
Copywriters, artists, other specialists
Other Agencies and Services
Creative Boutiques
Provide only creative services
Other functions provided by the
internal client departments
Full-service agencies may
subcontract with creative boutiques
Other Agencies and Services
Media Buying Services
Specialize in buying media,
especially broadcast time
Agencies and clients develop media
strategy
Media buying organizations
implement the strategy and buy time
and space
Direct Response Agencies
Data Base Management
Direct Mail
Research
Media Services
Creative
Production
Sales Promotion Specialists
Contests
Sweepstakes
Refunds and rebates
Sampling programs
Incentive programs
Public Relations Firms
Strategy Development
Program Planning
Generating Publicity
Lobbying
Public Affairs
Image portrayal
Damage control
Interactive Agencies
Interactive Media Creation
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Web sites
Web banner ads
CD-ROMs
Kiosks
Digitized Content
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Audio
Video
Animation
Agency Compensation
The Commissions Method
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Agency usually receives 15 percent
Commissions are paid by the media
Commission system is controversial
System is becoming less common
Fee Arrangements
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Fixed fee method
Fee-commission method
Cost-Plus Agreements
Incentive-Based Compensation
Percentage Charges
Marketing Strategy
The Marketing Concept
What is Marketing Strategy?
 Providing superior customer value.
What is value?
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The marketing Strategy Process:
Opportunity Identification / Situation
Analysis
S-T-P
Marketing mix
Segmentation, Targeting, and
Positioning
Market Segmentation
1. Identify segmentation variables and segment the
market
2. Develop profiles of resulting segments
Market Targeting
3. Evaluate the attractiveness of each segment
4. Select the target segment(s)
Product/Service Positioning
5. Identify possible positioning concepts for each target
segment
6. Select, develop, and communicate the chosen positioning
concept
Segmentation
Segmentation is a
concept that
recognizes the
diversity in the
marketplace. The
process of
segmenting the
market produces
clusters of people
who enjoy similar
product features.
Segmentation
Goal: Identify segments that seek different
benefits and, therefore, will be responsive to
different positionings of the product/offerings.
Means: Link benefits sought to characteristics
that make customers readily identifiable and
accessible. For example:
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User status, Demographics, Media exposure
patterns, …
Caution: Avoid over-segmenting; make sure
that each segment is substantial enough to
justify a unique positioning effort.
Market Segmentation
Bases for Segmentation
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Usage
Non-users vs. Category users
Competitor users vs. Own brand users
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Geographic
Zip Code Analysis
Regional Analysis
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Demographic
Age
Gender
Income
Others
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Benefit Sought
Psychographic
Market Segmentation
Usage Segmentation
•Category Usage
Colas
Hair
Spray
Nonuser
s
(%)
Light Half
%pop %use
Heavy Half
%pop %use
22
39 10
39
90
52
24 13
24
87
48 13
48
87
Cereal 4
Heavy users: Efficiency /Profit
Caution: Majority Fallacy
•Brand Usage
•$ to Sales - Target people/companies with profile of current user
•$ to Opportunity - Target users of competitive brands or nonusers
Market Segmentation
Geographic Segmentation
•Zip Code Analysis
•Regional Analysis
Demographic Segmentation
http://www.census.gov/cgi-bin/gazetteer
•Age
•Gender
•Income
•Others
Volkswagen Ads:
5-second-rule.mov
Flirting.mov
Synchronicity II.mov
Turbonium.mov
Smarter Looking.mov
Market Segmentation
Psychographic Segmentation
•Lifestyles
•Values
•Attitudes
•Interests
•Opinions
www.claritas.com
Market Segmentation
Criteria For Segmentation
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Identifiable
Accessible
Responsive
Significant
Capturing Segments
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Instruments Available
Price
Product
Distribution
Promotion
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Common Positioning Errors
Positioning in a crowded market space
Positioning on an unimportant attribute
Positioning
Positioning requires designing a company
and product image and developing a
marketing mix to promote the image to the
target segment(s).
Positioning Statement
The key concept of an idea to be
communicated to a target market via
elements of the marketing mix.
Elements:
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Target
Concept (Frame of Reference)
Point of Difference
Communications Objectives
Messages are designed to achieve
specific strategic goals.
The “BellSouth Yellow Pages” campaign’s
four objectives:
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Introduce the new brand name and achieve
50% unaided brand awareness
80% aided brand awareness
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Exceed unaided ad recall norm of 14%
Improve consumer usage share above 85%
Increase revenues by 2.6%
Product Decisions
A product is a bundle of benefits or values
Product symbolism refers to what a product or
brand means to customers
Product quality, branding, packaging, and
company name contribute to product image
BRANDING:
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Brand name communicates attributes and meaning
Advertising creates and maintains brand equity
PACKAGING:
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Packaging has become increasingly important
It is often the customer’s first exposure to product
Pricing Decisions
Price must be consistent with
perceptions of the product
Higher prices communicate higher
product quality
Lower prices reflect bargain or “value”
perceptions
A product positioned as high quality
while carrying a lower price than
competitors will confuse customers
Price, advertising and distribution be
unified in identifying the product position
Distribution Channel Decisions
Channel decisions involve:
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Selecting
Managing
Motivating
Independent intermediaries:
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Wholesalers
Distributors
Brokers
Retailers