Transcript Document 7446653

Chapter 1:
INTRODUCTION
to
PROMOTION
and
INTEGRATED MARKETING
COMMUNICATIONS
1.1
Relationship Between Promotion,
the Promotional Mix, and
Integrated Marketing Communications
PROMOTION
 Communication Process in Marketing
 Used to Create a Favorable Predisposition Toward:
 Brand of Product
 Service
 Idea
 Person
PROMOTIONAL MIX
 Blend of Communications Tools and Activities Used by a
Firm
 Carries out the Promotion Process
 Communicates Directly with Target Markets
1.2
Relationship Between Promotion,
the Promotional Mix, and
Integrated Marketing Communications (con’t)
INTEGRATED MARKETING COMMUNICATIONS (IMC)
 Manages the Processes and Activities of Using Promotional Tools
 Unified Way
 Produces a Synergistic Communications Effect
1.3
Relationship Between Promotion,
the Promotional Mix, and
Integrated Marketing Communications (con’t)

Promotion:
Process

Promotion Mix:
Tools

IMC:
Management of the
Promotion Mix
1.4
The Promotional Mix
ADVERTISING
 Paid Mass Media Attempt to Persuade
 Complex System of Strategic Planning and
Creative Genius
INTERNET ADVERTISING
 Electronic Mail (e-mail)
 Internet Relay Chat (IRC)
 Usenet
 World Wide Web (www)
SALES PROMOTION
 Use of Incentives to Generate a Specific Short-Term Response
 Household Consumer
 Trade Buyer
1.5
 Business Buyer
Example of Mass
Media Advertising
1.6
Example of Sales Promotion
1.7
The Promotional Mix (con’t)
DIRECT MARKETING AND e-COMMERCE
 Distinguished From Other Primary Promotional Tools
in 3 Ways
 Uses a Combination of Media
 Designed to Elicit a Direct Response
 Transactions Can Occur Anywhere

E-Commerce is Another Form of Direct Marketing
 Business is Conducted Between Buyers and Sellers
Using Electronic Exchange Media
1.8
The Promotional Mix (con’t)
SPONSORSHIP
 Funding an Event
 Creating an Event to Showcase a Firm’s Brand
POINT-OF-PURCHASE
 Materials Used in Retail Setting to Attract Shoppers’ to a
Company’s Brand
SUPPORTIVE COMMUNICATIONS
 Used to Target Audiences Outside Mainstream Media or
Electronic Communications
1.9
The Promotional Mix (con’t)
PUBLIC RELATIONS
 Communication that can Foster Goodwill Between a Firm
and its Many Constituent Groups
PERSONAL SELLING
 Presentation of Information about a Firm’s Products or
Services by One Person to Another Person or to a Small
Group of People
1.10
Personal Selling is the Most
Important Variable in the
Promotional Mix of Many
Organizations
1.11
The Promotional Mix (con’t)
ROLE OF PROMOTION IN MARKETING STRATEGY
 Must Have Marketing Strategy Decisions about Products
(Brand)
 Branding – Established Name, Term, Symbol or Design
that Identifies for Consumers that a Product is being
Offered by a Particular Seller and Clearly Distinguished
the Product of that Seller from those Offered by
Competitors
1.12
The Promotional Mix (con’t)
ROLE OF PROMOTION IN MARKETING STRATEGY (con’t)
 Role of Promotion in Marketing Strategy Affects 3 Key Aspects
of Decision Making with Respect to Brands
 Creating the Marketing Mix
 Achieving Effective Market Segmentation, Product
Differentiation, and Positioning
 Enhancing Revenues and Profits
1.13
The Promotional Mix (con’t)
ROLE OF PROMOTION IN THE MARKETING MIX

Assumes a Wide Range of Responsibilities
Related to:
 Conception
 Pricing
 Distribution Brands

Product (Brand)
1.14
The Promotional Mix (Con’t)
ROLE OF PROMOTION IN THE MARKETING MIX (con’t)
 Promotion Affects the Product Area of the
Marketing Mix
 Information and Persuasion
 Introduction of New Brand or Brand Extensions
 Building and Maintaining Brand Loyalty
Among Consumers
 Building and Maintaining Brand Loyalty
Within the Trade
1.15
One Role for Promotion is to
Help Introduce Brand Extensions
Like this Extension of Jell-O into
the Yogurt Market
1.16
The Promotional Mix (con’t)
ROLE OF PROMOTION IN THE MARKETING
MIX (con’t)
 Price
 Effects the Consumer Market
 Effects the Trade Market

Distribution
 Consumer Access to Brands
 Securing Trade Distribution
1.17
The Role of Promotion in Effective Market
Segmentation, Differentiation and Positioning

Promotion is Important in Helping to
Execute These Strategies
 Market Segmentation
 Product Differentiation
 Positioning
 External
 Internal
1.18
The Role of Promotion in Revenue and Profits



Sales Occur
 Brand has Well-Conceived Marketing Mix
 Complete Marketing Mix
 Good Promotion
Large-Scale Demand /Production Produces
 Cost to Produce Item is Reduced
 Known as Economies of Scale
Brand Loyalty at Any Cost
 Firm Raises Prices
 Known as Inelasticity of Demand
1.19
Promotional Tools Help
Increase Brand Loyalty
1.20
Integrated Marketing Communications
FACTORS CONTRIBUTING TO IMC’s RISING PROMINENCE
 Fragmentation of Media
 Better Audience Assessment Through Database Technology
 Consumer Empowerment
 Increased Advertising Clutter
 Shifting Channel Power
 Desire of Greater Accountability
1.21
Promotion and IMC
Help Cut Through the
Clutter of Advertising
1.22
Participants in IMC Management
Marketing Organization
•Marketing Plan
•Goal & Objectives
•Customer/Prospect
Databases
Advertising Agency
•Research
•Creative Strategies
•Production
•Message Placement
Specialized Promotion
Organizations
•Media Organizations
•Event Management Firms
•Web Site Designers
•Sales Promotions Agencies
•Direct Marketing Agencies
•Public Relations Firms
•P-O-P Agencies & Designers
IMC Management
Advertising
(Chapter 8)
Internet Advertising
(Chapter 9)
Direct Marketing
e-Commerce
(Chapter
1.23 10)
Personal Selling
(Chapter 14)
Public Relations
(Chapter 13)
Sales Promotions
P-O-P
Supportive
(Chapter 12)
Sales Promotions
(Chapter 11)