Integrated Marketing Communications Overview Marketing communications is one of the four major elements of the company’s marketing mix. Marketers must know how to use advertising, sales promotion, direct marketing, public relations, and personal selling to communicate the product’s existence and value to the target customers. The communication process itself consists of nine elements: sender, receiver, encoding, decoding, message, media, response, feedback, and noise. Marketers must know how to get through to the target audience in the face of the audience’s tendencies toward selective attention, distortion, and recall. Developing the promotion program involves eight steps. The communicator must first identify the target audience and its characteristics, including the image it carries of the product. Next the communicator has to define the communication objective, whether it is to create awareness, knowledge, liking, preference, conviction, or purchase. A message must be designed containing an effective content, structure, format, and source. Then communication channels both personal and nonpersonal must be selected. Next, the total promotion budget must be established. Four common methods are the affordable method, the percentage-of-sales method, the competitive-parity method, and the objective-and- task method. The promotion budget should be divided among the main promotional tools, as affected by such factors as push-versus-pull strategy, buyer readiness stage, product life-cycle stage and company market rank. The marketer should then monitor to see how much of the market becomes aware of the product, tries it, and is satisfied in the process. Finally, all of the communications effort must be managed and coordinated for consistency, good timing, and cost effectiveness. Project Outline I. Introduction—the five major modes of communication (advertising, sales promotion, public relations, personal selling, and direct marketing) II. The communication process—communications as the management of customer buying processes over time, the nine elements of the communications model, reasons why message may not get through the receiver (selective attention, selective distortion, and selective recall) III. Developing effective communications A. Identify the target audience 1. Image analysis is a major part of audience analysis that entails assessing the audience’s current image of the company, its products, and its competitors a) First step is to measure target audience’s knowledge of the subject using a familiarity scale b) Second step is to determine feelings toward the product using a favorability scale 44
Transcript
Integrated Marketing Communications
Overview
Marketing communications is one of the four major elements of the company’s marketing mix. Marketers must know how to use advertising, sales promotion, direct marketing, public relations, and personal selling to communicate the product’s existence and value to the target customers.
The communication process itself consists of nine elements: sender, receiver, encoding, decoding, message, media, response, feedback, and noise. Marketers must know how to get through to the target audience in the face of the audience’s tendencies toward selective attention, distortion, and recall.
Developing the promotion program involves eight steps. The communicator must first identify the target audience and its characteristics, including the image it carries of the product. Next the communicator has to define the communication objective, whether it is to create awareness, knowledge, liking, preference, conviction, or purchase. A message must be designed containing an effective content, structure, format, and source. Then communication channels both personal and nonpersonal must be selected. Next, the total promotion budget must be established. Four common methods are the affordable method, the percentage-of-sales method, the competitive-parity method, and the objective-and-task method.
The promotion budget should be divided among the main promotional tools, as affected by such factors as push-versus-pull strategy, buyer readiness stage, product life-cycle stage and company market rank. The marketer should then monitor to see how much of the market becomes aware of the product, tries it, and is satisfied in the process. Finally, all of the communications effort must be managed and coordinated for consistency, good timing, and cost effectiveness.
Project Outline
I. Introduction—the five major modes of communication (advertising, sales promotion, public relations, personal selling, and direct marketing)
II. The communication process—communications as the management of customer buying processes over time, the nine elements of the communications model, reasons why message may not get through the receiver (selective attention, selective distortion, and selective recall)
III. Developing effective communicationsA. Identify the target audience
1. Image analysis is a major part of audience analysis that entails assessing the audience’s current image of the company, its products, and its competitorsa) First step is to measure target audience’s knowledge of the
subject using a familiarity scaleb) Second step is to determine feelings toward the product using a
favorability scale
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2. Specific content of a product’s image is best determined with use of semantic differential (relevant dimensions, reducing set of relevant dimensions, administering to a sample, averaging the results, checking on the image variance)
B. Determine the communication objectives 1. Based on seeking of a cognitive, affective, or behavioral response2. Assuming the buyer has high involvement with the product category and
perceives high differentiation within the category, base objectives on the hierarchy-of-effects model (hierarchy: awareness, knowledge, liking, preference, conviction, purchase)
C. Design the message (AIDA model)1. Message content—choosing an appeal (rational appeal to audience’s self
interest, emotional appeal attempt to stir up either positive or negative emotions, moral appeals are directed to the audience’s sense of what is right and proper)
2. Message structure—one-sided presentation versus two-sided argument3. Message format—must be strong, based on headline, copy, “sound,”
nonverbal clues, color, expression, dress, etc. 4. Message source —expertise, trustworthiness and likability
D. Select the communication channels1. Personal communication channels—direct (advocate, expert and social)2. Nonpersonal communication channels—indirect (media, atmospheres,
events)E. Establish the total marketing communications budget
IV. Deciding on the marketing communications mixA. Promotional tools—benefits of each tool (advertising, sales promotion, public
relations and publicity, personal selling, direct marketing)B. Factors in setting the marketing communications mix (type of product market,
buyer-readiness stage, product-life-cycle stage)C. Measure the communications’ results
V. Managing the integrated marketing communications process A. A concept of marketing communications planning that recognizes the added
value of a comprehensive plan 1. Evaluates the strategic roles of a variety of communications disciplines 2. Combines these disciplines to provide clarity, consistency and maximum
communications impact through the seamless integration of discrete messages
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Integrated Marketing Communications
Not all product concepts are right for all individuals, thus bringing about the notion of market segmentation and targeting. The same holds true for marketing communications. One message does not fit all. Integrated marketing communications (IMC) focuses on discreet customer segments. With IMC, the firm learns to understand that although mass-market promotion appears cost-effective on the front end, brand/product messages are also offered to millions of people who are not interested.
Mass media no longer serves the mass audiences sought by marketers. Individual audiences for each media have decreased, thus indicating a need to ensure that whenever and wherever the prospect is exposed to the message, he/she receives a consistent one. Customers typically do not differentiate between message sources; they only remember the message they received. Considering how many messages consumers are exposed to on a regular basis, mixed messages from the same source are bound to cause confusion and, worse yet, they will be more quickly forgotten.
Although understanding the importance of marketing communications is somewhat simple, finding the best means through which to implement a marketing communications program has become increasingly difficult. The buying public has been virtually buried alive in ads. Consumers are bombarded with hundreds of ads and thousands of billboards, packages, and other logo sightings every day.
Old advertising venues are packed to the point of impenetrability as more and more sales messages are jammed in. Supermarkets carry 30,000 different packages (product packages), each of which acts as a mini-billboard, up from 17,500 a decade ago. (Source: Food Marketing Institute). Networks air 6,000 commercials a week, up 50 percent since 1983 (Source: Pretesting Co.). Prime-time TV carries up to 15 minutes of paid advertising every hour, roughly 2–4 minutes more than at the start of the 1990s. Add in the promos, and over 15 minutes of every prime-time hour are given over to ads. No wonder viewers zap so many commercials.
The IMC planning process is based on a longitudinal consumer purchase database. Ideally, this database would contain, by household, demographics, psychographics, purchase data, and perhaps some information about how the household feels about or is involved with the product category. In many cases, direct-marketing organizations already have this type of information at their disposal. An IMC program is implemented according to the needs and lifestyles of the selected target markets, thus allowing for customized, yet consistent, message strategies to sell increasingly individualized products.
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Sustainable Competitive Advantage Based on IMC
It has been said integrated marketing communications will be the only sustainable competitive advantage for marketers in the near future. The other elements of the marketing mix, product development, pricing, and distribution, can be achieved at a very similar level, and in a similar way, among companies competing in a particular industry. In addition, we know the customer has taken on a completely new, powerful, role in the marketing process. Because it is largely through promotion that a company speaks most directly to its customers, it seems appropriate that a marketer’s promotional strategy must change to reflect the dynamics of today’s marketplace.
Some of these changes include:
• Changing technology, which has made it possible for media organizations to identify, segment, select, and attract smaller audiences for their respective vehicles
• The trend toward de-regulation that has allowed for increased competition within many industries, such as air travel, banking, and utilities
• Globalization of the marketplace, which causes promotional efforts, including advertising, sales promotion, public relations and personal selling, to be implemented throughout a worldwide market. Customization for different cultures is key to competing successfully in this arena
• Changes in the demographic and psychographic profiles of today’s consumers, that have paved the way for new product category opportunities (such as health care for the aging “baby boomers” and health food/clubs for nutrition conscious consumers)
• Money-rich, time-poor consumers are seeking control of their purchases. Consumers have become adept at avoiding marketing communication, through the use of VCRs, remote controls, radio push buttons, etc. When they are listening, the message should be simply stated and easy to understand. Today’s generation is also more visual than verbal, thus they rely on images, symbols and graphics more than any previous generation
It is important also to note that a marketer can communicate with customers through means other than formal marketing communications. Every element of a product’s marketing mix helps to position that product in the minds of consumers. The result is that the elements of the promotional mix should all present a consistent theme. The same is true of the other “Ps” of marketing, namely product, price and place that also should support the theme:
1. Products communicate through size, shape, name, packaging, and various features/ benefits.
2. Price communicates to the consumer that the product is high quality, low quality, prestigious, common, etc.
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3. Retail locations (place) where customers purchase the product will reflect upon the product’s image as well. Stores are thought of as “high-class,” specialty, discount, etc.
Using Newsletters for Customized Communication
One of the newest and most effective ways to stimulate and maintain positive communication with customers is through newsletters (print and online). Newsletters are useful for many reasons, but one of the best reasons is that they cross the boundary between news and advertising, providing a bit of both. Further, they bring back some much-needed credibility that has been lost with many market segments. The newsletter can be delivered physically, but more likely it will be made available via the Internet or e-mail. Newsletters not only describe, in detail, a company’s philosophy, goals, and objectives but also enhance its current marketing program. In addition, newsletters can be utilized as communication tools for many other purposes.
Some of the advantages of newsletters include:• Delivering continuous background or educational material to clients in an
efficient manner
• Providing highly-targeted distribution through database utilization
• Acting as a form of personal calling, on paper, to prospects and clients
• Proving more economical than other forms of promotion
• Not obvious advertising, if done correctly
• Attention-getting
• Providing the ability to create demand
• Keeping mailing lists (or e-mail lists) accurate
Possible newsletter content may also include such as items as:• Announcements of new products and services
• Stories of products/services in application (from either the company or its customers)
• Answers to commonly asked questions/concerns
• Information on industry trends
• Updates on new or pending legislation
• Personnel changes (but otherwise very little employee communiqué)
• Guest articles by prominent figures in the industry
A newsletter also provides opportunities for customer feedback:
• Brings the prospect to the marketer in the form of an inquiry
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• May solicit response through use of a formal survey
• Enables experimentation with numerous formats/contents/ promotions through small sample test mailings
In addition, orienting articles to topics that are on the customer’s minds will guarantee holding their interest.
Bad news should not be ignored. Any problems that are occurring, as well as actions being taken to solve these problems, need to be addressed. After all, relationships will have both ups and downs.
Most important, the primary goal of any newsletter should be to inform and educate readers; it must not become the voice of management and/or marketing alone. To that end, it must be filled with news and not exist solely to sell products/services.
Note: As a final note, you might ask the class to consider whether the newsletter approach has found additional life on the Internet. Many Web sites include elements of the newsletter approach in their operations. Ask the class to investigate some leading Web sites to prove and/or disprove this point.
Marketing and Advertising
1. The magazine ad in promotes UpWords, a game marketed by the manufacturer of the Scrabble word game. Although the game is portrayed in the ad, other elements are more prominent.a. Who is the target audience for this advertising message? What image of
the game would the advertiser like to create with this ad?b. How do selective attention, selective distortion, and selective retention
apply to this advertising message?c. What communication objectives might the game manufacturer set for this
advertising message?Answer
a. The target audience is adults who like word games. The advertiser wants to create an image of UpWords as being similar to—but more challenging than—the well-known Scrabble game.
b. To overcome selective attention by attracting attention, the ad shows a large, familiar “deer crossing” sign altered to read “deer flossing.” This device also addresses selective retention, by reinforcing how the UpWords game is played (by putting letters on top of other letters). Finally, the ad addresses selective distortion by clarifying what UpWords is and how it works (through an illustration of a game in progress and a brief description in the body copy).
c. The advertiser might set objectives for this communication such as: awareness, knowledge, liking, and preference, ultimately leading to conviction and to purchase. Challenge students to suggest how the advertiser could alter this ad to lead more directly to purchasing.
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2. Sharp incorporates a clever depiction of its imaging product’s key benefit—using color to reach people—to attract attention and communicate with business decision-makers in the ad shown in Figure 2.a. Analyze this ad in terms of the hierarchy-of-effects model.b. How is Sharp using message format to communicate with its target
audience?c. How does Sharp establish source credibility in this advertisement?
Answera. This Sharp ad builds awareness by coupling the brand (shown at bottom
right) with a prominent illustration of the key benefit (color copying). It builds knowledge by explaining how color copying can help a business. It enhances liking and preference by explaining the benefits of Sharp’s color copier. It supports conviction and purchase by asking “So, are you ready to connect?” and by stressing affordability, efficiency, and upgradability.
b. Sharp’s message format reinforces the underlying message—that color makes a difference in a business presentation—by using color to attract attention to this ad. Students may also cite other aspects of the message format.
c. Source credibility is established by alluding to Sharp’s expertise in color copying and by linking Sharp to a network of authorized dealers around the country, which may already have established reputations for expertise, trustworthiness, and likability.
Online Marketing Today—VF
VF, which makes Lee jeans, has used the Internet to create a word-of-mouth tidal wave around its jeans. It started by creating Web sites for Buddy Lee, a kewpie-doll character, and Curry, a fictional race-car driver, and encouraging consumers to discover the sites on their own or e-mail their friends about the sites. Weeks later, VF ran media ads revealing that the characters were part of an elaborate online computer game. To advance to higher levels in the game, players needed to input code numbers found only on Lee jeans—which meant visiting a store and looking at Lee’s products. This integrated marketing communications campaign helped push Lee’s sales 20 percent higher than in the previous year.
VF continues to operate some of the sites. The Curry site is located at http://www.rubberburner.com and one of the Buddy Lee sites is at http://www.buddylee.com. Explore both sites. Also follow the “Lee Sites” link at the Buddy Lee home page and review one or two of the featured sites. How does Lee encourage consumer participation on these sites? What is the appeal of these sites? What objectives might Lee set for campaigns that rely on word-of-mouth?Answer
Lee offers different games, contests, and other interactive activities to encourage consumer participation in its sites. These sites are witty, informal, interesting, and don’t take themselves too seriously, so they’re fun for consumers to visit. Ask students to be specific in commenting on at least one of the sites they visit. Lee might set a variety of word-of-mouth campaign objectives, such as striving to have the message
seen/understood by a certain number of consumers and having those consumers pass the message along to a certain number of other consumers. Students may suggest other objectives, as well.
You’re the Marketer—Sonic PDA Marketing Plan
Every marketing plan must include a section showing how the company will use marketing communications to connect with customers, prospects, and other stakeholders. Web-based communications must be integrated into the overall communications strategy to ensure consistency of messages.
You are responsible for planning integrated marketing communications for Sonic’s introduction of its personal digital assistant (PDA). Review the data, decisions, and strategies you have previously documented in your marketing plan. Now use your knowledge of communications to answer these questions:• What audience(s) should Sonic be targeting? What image should it seek to create
for its initial PDA product?• What objectives are appropriate for Sonic’s initial communications campaign? • What message design and communication channel(s) are likely to be most
effective for the target audience? • How should Sonic establish its marketing communications budget?• Which promotional tools would be most effective in Sonic’s promotional mix?
Why?
Be sure that your marketing communications plans will support Sonic’s overall marketing efforts. Now, as your instructor directs, summarize your thoughts in a written marketing plan or type them into the Marketing Mix section of the Marketing Plan Pro software.Answer
Sonic should target the consumer and business segments it previously identified for the new PDA product. Students may have described these segments in detail earlier in the marketing planning process. In addition, Sonic should target channel members and other members of the trade to build enthusiasm and support. The image for the first PDA product depends on other decisions made in the marketing plan. For example, Sonic could build an image around innovation (for its voice-recognition capabilities) and value (because the PDA is priced lower than comparable models from rivals).
For the initial communications campaign, Sonic should set objectives for awareness among the targeted segments. It may also want to set objectives for knowledge, liking, preference, conviction, and purchase as time goes on. Initially, however, it must make the market aware of the brand and product. Students should use their imaginations in discussing the message design and communication channels for each target audience. They need to plan for a mix of personal and nonpersonal channels, and to build credibility. Sonic should establish its marketing communications budget using the objective-and-task method, because this ties expenditures to specific objectives that will be met. Ask students to be creative in suggesting promotional tools for Sonic’s
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promotional mix; also ask them to discuss how their choices fit with other choices and strategies made earlier in the marketing planning process. For example, students may suggest a mix of consumer and trade advertising, sales promotion, public relations, personal selling, and online or direct marketing.
Marketing Spotlight—Mountain Dew Code Red
When Pepsi-Cola’s total volume increased a mere tenth of a percent in 2000, the company quickly sought to boost sales by launching the first line extension of its popular Mountain Dew drink because Diet Mountain Dew debuted in 1988. A cross-functional team comprised of 35 people from seven Pepsi departments worked on developing the new product. The team considered several possibilities: Dew H20 bottled water; Dew Unplugged decaf Mountain Dew; a Mountain Dew sports drink; and a new Dew flavor. The company settled on creating a new flavor, and within 10 months, instead of the usual two years it takes Pepsi to develop a new product, launched a bright red cherry-flavored beverage called Mountain Dew Code Red.
For the launch, Pepsi used radio and outdoor advertising, as well as sampling and in-store merchandising. To build buzz for Code Red, the company sent free samples to 4,000 select consumers, such as hip-hop producer Jermaine Dupri and radio DJ Funkmaster Flex. The drink was heavily sampled at marquee sporting events such as the NCAA Final Four and ESPN’s 2001 winter X games. Pepsi also developed a special Website for the brand that featured an interactive game called “Mission: Code Red 2.” Additionally, Pepsi marketed Code Red to urban consumers. When research revealed that urban and ethnic focus groups preferred the name Code Red to Wild Cherry Mountain Dew, Pepsi stuck with the former. The company also developed an ad campaign titled “Crack the Code” that used graffiti-art design elements and an urban setting.
Code Red attracted a rabid fanbase. According to A.C. Nielsen, Code Red tested in the top five percent of all new product concepts ever tested among teens. The drink was also popular in the high-tech community. Two programmers who discovered a computer virus named it “Code Red” after the beverage they used to maintain late hours in front of their monitors. The virus eventually infected more than 700,000 computers. Pepsi sent the pair five cases of Code Red in appreciation for the free publicity.
Within two months of its May 2000 launch, Code Red was the fifth-best-selling soft drink sold at convenience stores and gas stations (Mountain Dew is number one). This signaled tremendous success, considering that the drink came in only two single-serve sizes and the muted marketing campaign did not yet include television spots. Though the drink was launched midway through the second quarter of 2000, Pepsi credited the Code Red launch with helping to boost net sales 20 percent to $962 million that quarter. One bottler exclaimed “It’s flown off the shelves for us.”
Sources: www.mountaindew.com; Hillary Chura. “Pepsi-Cola’s Code Red Is White Hot.” Advertising Age, August 27, 2001, p. 1; Maureen Tkacik and Betsy McKay. “Code Red: PepsiCo’s Guerilla Conquest.” Wall Street Journal, August 17, 2001, p. B5; Abigail Klingbeil. “The Making of a Brand.” Gannett News Service, June 29, 2001
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REPUBLIC OF TURKEY, MINISTRY OF CULTURE AND TOURISM ARTICLES AND CONDITIONS ON 2009 ADVERTISING CAMPAIGN COMMUNICATION/ MARKETING STRATEGIES
Campaign proposals should be in compliance with the below given objectives of the Ministry:
1. OBJECTIVETurkey’s touristic promotion with a focus on specific destinations, at the times when world touristic markets accelerate and travel dates are set is the objective of the advertising campaign. It is also important to reach the following marketing and communications goals throughout the tender proposals:
Marketing goals:- Expanding Turkey's market share in main markets, preserving share in the
mature markets, and increasing the share in the developing markets. - Increasing the total number of visitors by 10% and the revenue by 12%.- Increasing the percentage of the number of tourists with high income
levels.- Increasing tourists’ individual spending and the duration of their stay.- Expanding the demand for tourism to 12 months by decreasing the impact
of seasonality.- Increasing the share of culture, golf, congress, yacht, city, health and eco
tourism.- Ensuring a balanced distribution of touristic activities to Turkey's different
regions.
Communication goals: - To position “Turkey” as a positive and well known touristic destination - To increase awareness for natural richness and historical places of Turkey through
destination marketing- To emphasize the variety and harmony of Turkey’s tourism products- To position Turkey and destinations such as Istanbul as an important
alternative for short breaks (Easter, Christmas, New Year’s Eve, school holidays etc.)
- To promote the international sports activities, cultural and artistic events taking place in Turkey
- To cherish friendly and welcoming human factor with slices of life
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2. PRODUCTTurkey's tourism product is composed of harmonious, compatible components which stimulate different types of people.
a) Natural opportunities,- Sea, beach and the sun- Clean and virgin coasts- Clean and unspoiled natural beauties (plateau, mountain, river, lake,
forest, fauna and flora)In these places;
- Yachting- Surfing- Underwater sports- Winter sports- Golf- Health tours (thermal water resources)- Plateau/highland tours- Rafting- Mountaineering- Trekking- Cave tours/Spelunking - Bird watching- Ecological tours are possible.
b) Historic places: Turkey inherited historic and cultural values from 13 great civilizations and three monotheistic religions.
- Religious centers- Archeological ruins- Trade routes- Cities- Museums- Historical routes (Silk Road, Hittite, Saint Paul, Lycian Way etc.)
c) Cultural and humanitarian values:- Turkish cuisine (food and drink) - Turkish hospitality, warm human approach- Folklore- Entertainment
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d) Supportive elements:- Shopping opportunities- Quality of accommodations (modern, boutique, new)- Geography - travel opportunities and conveniences- Climate conditions
3. SALES METHODS IN TOURISM- Mass marketing (with historical, cultural, natural themes) - via tour
operators- Congress and incentive tourism- Individual tourism- Youth tourism
4. TURKEY'S IMPORTANT DESTINATIONS- Istanbul - Cappadocia- Antalya - Pamukkale - Ephesus - Mount Nemrut - Black Sea Region- Aegean Seaside- Eastern and Southeastern Anatolia
5. OTHER- Istanbul, being selected as the “2010 European Capital of Culture” is also
an additional and important product.- Istanbul Culture and Art Festival and similar activities are the products
which can increase the demand for city and youth tourism.
Sub campaigns can be planned for these activities.
6. PROVISION ON TARGET MARKETSCampaign proposals must be designed in accordance with the target markets (see attachment 1), the tourism demand for Turkey (holiday tourism largely based on sea-sun-beach, history and culture tourism, golf, yachting, health, congress and shopping tourism etc.) in these individual markets and the corresponding budgets.
The proposals should emphasize:
- Uniqueness of Turkey, in perception of target groups- Primarily destinations and locations, also including the human factor and
the values, - Easy access for the nearby countries, regions
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- Quality of the vacation for distant countries - quality/price/presentation ratio
7. TARGET CONSUMER PROFILE- Middle and high education and income levels- Sensitive about the price but at the same time giving importance to the product
quality- Young and middle-age groups and also 3. age group- Frequent travelers
The groups having abovementioned characteristics should be targeted.
8. NOTEWORTHY COMPONENTS IN ADVERTISEMENTS- The current country logo is planned to be used during the new tender
process as well. Nevertheless, some special applications may be developed for destinations.
- A globally valid slogan is needed that would not lose its meaning when translated into different languages and that can be used through all disciplines. The need is not limited to a mere slogan; it should be perceived as a search for an integral idea that can be used in multi disciplined manner.
- As the tender will be finalized during the winter term and the marketing shall need to start in the same period. Hence it should be noted that a very tight schedule may occur concerning production. This should be taken into consideration as planning the TV commercials.
- Alongside a comprehensive Turkey TV commercial and Istanbul TV commercials, the Ministry has already five different destination films (Eastern, and Southeastern Anatolia, Cappadocia, Turquoise Coast "Bodrum, Marmaris, Fethiye", Antalya, Thermal-Health) the aforementioned TV Commercials can be viewed at www.kulturturizm.gov.tr . New campaigns can be prepared in conjunction with the existing films.
- Diversity and new approaches should be reflected in outdoor campaigns (subway, movie theater, airport road, railway stations, luggage collection areas, shopping centers, busses, bus stops, sightseeing busses, sport centers, theaters, opera and ballet houses, art gallery entrances, museum entrances, façades and the surroundings of international buildings).
9. REGARDING COMMUNICATION STRATEGIES AND TACTICS- A peaceful, contemporary country with self-respect should be the overall
tone of communications- Different and genuine national humanitarian values should be emphasized.- In the world tourism Internet is becoming a determining factor for
decision making. Proposals for the 2009 tender should include Internet both for direct sales as well as creating value.
- The special advertisement campaigns for the important international, sports, arts and cultural events and fairs should be prepared ahead of time and they should be enlisted in the media plans.
10. CRISIS MANAGEMENTThe events which may affect Turkey's advertising and publicity campaigns in a negative way, such as:
- Counterpropaganda, war, biological threat- Regional economic or political problems- Developments which can affect price and profit margins- Natural disasters etc.
should be eliminated as soon as possible, in an effective way. Additionally, a proactive approach strategy must be determined in order to
- Protect the current image and prevent a negative image of the country- Prevent a possible reduction in the demand - Determine the priority markets in order to preserve the general level of demand.
MARKETING COMMUNICATIONS ACTIVITIES
The chart below highlights many of the marketing activities that entrepreneurs employ during their start up and emerging stages of evolution. Their objectives, strategies and communication media typically revolve around:
Marketing Objectives: Adoption of new product amongst early adopter/innovator customers/segments. Securing initial early majority customers. Start to build trust in company through brand.
Communication Strategies: Create awareness and interest among innovators and early adopters.
Communication Media: Publicity, personal selling, advertising and promotion.
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Which of these marketing activities have you employed in your Marketing Plan?Are there activities that you are not using – and should be!
Activity Role Key Values/Initiatives Audience
Brand – Corporate Name Logo Identity
Company we keep actions
Brand – Product Adoption
Literature Sales Guides Sales Brochures Sales
Information Corporate
AdvertisingTVPressRadioOutdoorCinema
Associate company name/logo with Product categoryNeed
Build trust and credibility
Build trust and credibility
Reinforce brand and product positioning
Promote brand positioningAffect sales by inspiring audience to seek information
Promotion is communication about an organization and their product, which is intended to inform, persuade, or remind target-market members. The particular combination of promotion methods a firm uses to reach a target market is called its promotion mix or marketing communications mix. Advertising, personal selling, sales promotion, and public relations may be combined in varying degrees to achieve marketing and organizational goals. Integrated marketing communications is coordination of promotion efforts to ensure maximum informational and persuasive impact on customers. Until recently, suppliers of marketing communications were specialists—advertising agencies did advertising campaigns, sales promotion firms provided sales promotion activities, and public relations firms engaged in PR efforts.
2. Understand the role of promotion
Promotion's basic role is to facilitate exchanges directly or indirectly by informing individuals, groups, or organizations and influencing them to accept a firm’s products or to have more positive feelings about the firm. How does promotion accomplish this? By combining the elements of a promotion mix to best get the message to the target market. The promotion mix contains four elements: (1) advertising is a paid, non-personal message communicated to a select audience through a mass medium; (2) personal selling is personal communication aimed at informing customers and persuading them to buy a firm’s products; (3) sales promotion is the use of activities or materials as direct inducements to customers or salespersons; and (4) public relations are communication activities used to create and maintain favorable relations between an organization and various public groups, both internal and external.
3. Explain the purpose of the three types of advertising
Of all the elements in the promotion mix, advertising is the most visible. Advertising may be classified in one of three ways: primary demand, selective demand, or institutional. The purpose of primary-demand advertising is to increase the demand for all products within a given industry, such as milk, orange juice, or pork. Selective demand (or brand) advertising is used to sell a particular brand of product and is by far the most common type. Within this category is advertising aimed at persuading people to make purchases
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within a short time, called immediate-response advertising, and advertising aimed at keeping a firm’s name or product before the public, called reminder advertising. Comparative advertising looks at the specific features of two or more identified brands. The last type, institutional advertising, is used to enhance a firm’s image or reputation.
4. Describe the advantages and disadvantages of the major advertising media
Firms use advertising media, various forms of mass communication to reach their audience. Newspaper advertising accounts for about 13.7% of all advertising expenditures, the vast majority of which is bought by local retailers. Newspaper advertising is relatively inexpensive and targeted locally; on the downside, though, it has a short life span, color reproduction is not high quality, and it can’t target specific demographic groups effectively.
Magazine advertising accounts for about 4.9% of advertising expenditures. Advertisers can reach very specific market segments using magazines. Other advantages include high-quality color reproduction and a longer life span; but the cost is much higher and they lack timeliness.Direct-mail advertising is promotional material mailed directly to individuals. Some organizations use direct e-mail. It is the most selective medium, although its success depends on up-to-date mailing lists. It is relatively costly, and accounts for almost 21.7% of all expenditures.
Yellow pages advertising, consisting of simple listings or display advertisements presented under specific product categories appears in both print and online telephone directories. An advantage of Yellow Pages advertising is that customers use it to save time in finding products, to find information quickly, and to learn about products and marketers. Unlike other types of advertising media, Yellow Pages advertisements are purchased for one year and cannot be changed. In 2008, advertisers spent $14.2 billion on yellow-pages advertising, which accounts for about 5.0% of total advertising expenditures. Approximately 85 percent of yellow pages advertising space is used by local advertisers instead of national advertisers.
Out-of-home advertising consists of short promotional messages on billboards, posters, signs, and transportation vehicles. It accounts for about 2.2% of advertising expenditures. It allows a marketer to focus geographically and it is inexpensive, but the message must be limited to a few words.Television ranks first in advertising revenue, with almost 25% of advertising expenditures. TV provides advertisers with considerable access to consumers. Firms may buy network time, which means their messages will be broadcast by hundreds of stations, or local time on a single station that covers a particular geographic area. Advertisers may sponsor an entire show, participate with other sponsors, or buy spot time for a single commercial between programs. Marketers also may pay a fee to have a product appear in a TV program or movie, an activity called product placement. Another option is an
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infomercial, a program-length televised commercial message resembling an entertainment or consumer affairs program. Television advertising is expensive, both to buy time as well as to prepare the ad. It also has a very short life span.Radio accounts for about 6.6% of advertising expenditures. Radio can be used selectively and can be less expensive than other media. The disadvantages are the lack of visual images and small audience size.
Internet, which accounts for 4.1% of total advertising expenditures and is growing. The most common type is the banner ad, a rectangular graphic that may contain interactivity and animation at the top of most consumer websites. Other types include the sponsorship or co-branded ad, which contains the firm’s name and editorial content; and the interstitial ad, which pops up when a viewer clicks on a website. Disadvantages include the relatively simplistic nature of the ads that can be produced and the lack of evidence that net browsers actually pay attention to the ads. (LO 4 ends)
5. Identify the major steps in developing an advertising campaign
An advertising campaign includes 8 steps. Step 1 is identifying and analyzing the target audience. The target audience is the group of people toward which a firm’s advertisements are directed. Step 2 is defining the advertising objectives. The objectives should include the firm’s current position, indicate how far and in what direction the company wishes to go, and specify a time period to achieve the goals. Step 3 is creating the advertising platform. An advertising platform includes the important selling points or features that an advertiser wants to emphasize. Step 4 is determining the advertising appropriation. This is the total amount of money designated for advertising in a given period. Step 5 is developing the media plan. A media plan specifies exactly which media will be used and when the advertisements will appear. Step 6 is creating the advertising message. The content and form of a message are influenced by the product’s features, the characteristics of the target market, the objectives of the campaign, and the choice of media. Step 7 is executing the campaign. This requires extensive planning, scheduling, and coordination because many tasks must be completed on time. And finally, Step 8 is evaluating advertising effectiveness. Success should be measured in terms of the original objectives, before, during, and /or after the campaign.
In order to help coordinate all these activities, a firm may hire an advertising agency, an independent firm that plans, produces, and places advertising for its clients.
Although some critics claim that advertising is wasteful and deceptive, evidence points to the contrary. Among advertising benefits are that it is the most effective and least expensive means of communicating product information, it encourages competition, it pays for much of our news coverage and entertainment programming, and it provides many and varied job opportunities. (LO 5 ends)
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6. Recognize the various kinds of sales persons, the steps in the personal selling process, and the major sales management tasks
The second element in the promotional mix is personal selling. This is the most adaptable method of marketing communication because the person who is presenting the message can modify it to suit the individual buyer. There are several kinds of salespersons. An order getter is responsible for selling the firm’s products to new customers and increasing sales to present customers. This is sometimes called creative selling. In contrast, an order taker handles repeat sales in ways that maintain positive relationships with customers. Depending on the firm, inside order takers may receive incoming mail and telephone orders, or they may be salespersons in retail stores. Outside, or field order takers travel to customers. Order takers often produce most of their firms’ sales. Sales support personnel aid in selling but are more involved in locating prospects, educating customers, building goodwill for the firm, and providing follow-up service. These support personnel include the missionary salesperson, who is generally employed by the manufacturer, and who visits retailers to persuade them to buy the manufacturer’s products; the trade salesperson, who is generally employed by a food producer or processor, and who assists customers in promoting products, especially in retail stores; and the technical salesperson, who assists the company’s current customers in technical matters.
Though no two selling situations are exactly alike and no two salespeople perform in exactly the same way, most follow a six step procedure. (1) prospecting, (2) approaching the prospect, (3) making the presentation, (4) answering objections, (5) closing the sale, and (6) following up.
Sales managers are responsible for facilitating the efforts of the sales force by hiring and training effective salespeople, setting objectives for them, developing a training program, formulating a fair compensation plan, and motivating them. They are also responsible for creating sales territories and evaluating sales performance. (LO 6 ends)
7. Describe sales promotion objectives and methods
The third component of the promotion mix is sales promotion, the activities or materials that are direct inducements to customers or salespersons. Generally, the objectives of sales promotion are to draw new customers, to encourage trial purchases of a new product, to invigorate sales of a mature brand, to boost sales to current customers, to reinforce advertising, to increase traffic in retail stores, to steady irregular sales patterns, to build up reseller inventories, to neutralize competitive promotional efforts, and to improve shelf space and displays. They accomplish this by using one or more of the several promotional methods available to them. Most of these methods or techniques are either consumer sales promotion methods that they are designed to attract consumers to particular retail stores and motivate them to purchase certain new or established
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products; or trade sales promotion methods, which are designed to encourage wholesalers and retailers to stock and actively promote a manufacturer’s product.
Marketers may use one or more of several promotional methods. A rebate is a return of part of the purchase price of a product. A coupon reduces the retail price of a particular item by a stated amount at the time of purchase. A sample is a free product given to customers to encourage trial and purchase. A premium is a gift that a producer offers the customer in return for buying its product. A frequent-user incentive is a program developed to reward customers who engage in repeat or frequent purchases. A point-of-purchase display is promotional material placed within a retail store. It may hold merchandise or inform customers about the features of the product and encourage them to buy it. A trade show is an industry-wide exhibit at which many sellers display their products. A buying allowance is a temporary price reduction to resellers for purchasing specified quantities of a product. Finally, cooperative advertising is an arrangement whereby a manufacturer agrees to pay a certain amount of the retailer’s media cost for advertising the manufacturer’s product. (LO 7 ends)
8. Understand the types and uses of public relations
The fourth and final component of the promotion mix is public relations, the broad set of activities used to create and maintain favorable relationships between the organization and various public groups , both internal and external. PR professionals prepare brochures, newsletters, company magazines, annual reports, and news releases. Other tools include speeches and event sponsorship.Some PR tools are associated with publicity, which is communication in news-story form about an organization, its products, or both. Publicity is transmitted through the mass media at no charge. The most common type of publicity is the news release, a typed page of about 300 words provided by an organization to the media as a form of publicity. Other publicity tools are the feature article, a piece (of up to 3,000 words), prepared by an organization for inclusion in a particular publication; a captioned photograph, a picture accompanied by a brief explanation; and a press conference, a meeting at which invited media personnel hear important news announcements and receive supplementary textual materials and photographs. Public relations can be used to enhance the reputation of an organization and also to reduce the unfavorable effects of negative events. (LO 8 ends)
9. Identify the factors that influence the selection of promotion-mix ingredients. How do marketers select promotion mix ingredients? They develop a promotional campaign. A promotional campaign is a plan for combining and using the four promotional methods: advertising, personal selling, sales promotion, and public relations, in a particular promotion mix to achieve one or more marketing goals. Marketing objectives that can be satisfied by promotional activities include (1) providing information, (2) increasing market share, (3) positioning a product, which is developing a product image in buyers’ minds relative to the images they have of competing products, and (4) stabilizing sales.
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Factors that can influence the selection of promotion mix elements include the budget, organizational objectives, the characteristics of the target market or markets, and the availability of certain promotional methods.
Suggested Responses
1. Most analysts would admit that there is little need for another soft drink. Pepsi did an excellent job with an IMC-based marketing strategy that was very creative, along with a rather off-beat guerrilla-oriented application of IMC. This, along with the willingness to apply superior support to the effort, did the job. This creativity worked and drew a much broader demographic than expected and thus made the campaign highly successful. Of course, they had considerable good luck related to the computer virus matter.
Code Red demonstrates many of the IMC concepts discussed in the text. Because it already had a lot of loyal drinkers (Mountain Dew), and even though the focus of the marketing demographic was young, there were some random variables (Code Red virus) that added substantially and allowed the eventual demographic to cut across every demographic and age group. It may have started with the younger and techie segments, but the additional “news” value provided by the virus issue provided the basis for a much broader PR-oriented application. When combined with Pepsi’s already superior integrated campaign experiences, including the Internet, Code Red and Pepsi come across somewhat like Anheuser Busch and the friendly frogs. Pepsi also successfully utilized big name celebrities online before airing on TV, and this likely created some overlap. Pepsi also provided numerous incentives for customers to register on the Website, with votes for favorite celebrity commercial. 2. During the past several years, Pepsi has crafted an effective strategy for running
integrated marketing campaigns, and other marketers probably would be smart to steal a page from its playbook. Step one is to create a commercial starring a big-name celebrity who can command enough buzz to entice people to view it online before it airs on television. Step two is to give customers an added incentive to register on your Website. For instance, Pepsi frequently will host a sweepstakes or let visitors vote for their favorite soda commercials.
Pepsi has done well with the formula. Most recently the beverage giant used this integrated marketing approach for a Britney Spears–driven promotion launched during the 2002 Super Bowl. Pepsi created three different Britney spots and invited Yahoo! visitors to view them and vote on their favorite. The commercials were viewed more than 3 million times between January 20 and February 3. More than 415,000 people voted. Add that to the 30 million that saw the Pepsi ads during the Super Bowl telecast, and you have some serious bang for the buck. To some extent, integrated marketing is all about the data. Pepsi added over 500,000 e-mail addresses to its database during the 2002 Academy Awards effort. Having a
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database full of qualified leads for future promotions is as good as cold cash to a marketer; it represents a list with which to promote new products and gather active customers you can easily communicate with. According to Pepsi’s head of online marketing, more than 40 percent of the e-mails Pepsi sends out actually get opened—an impressive figure.
