Chapter 11 Advertising, Integrated Marketing Communications …

Chapter 11 Advertising, Integrated Marketing Communications, and the Changing Media Landscape

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Integrated Marketing Communications (IMC) and New Media Learning Objectives 1. Understand what integrated marketing communications are. 2. Understand why organizations may change their promotional strategies to reach different audiences.

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IMC Communications designed to deliver one consistent message to buyers!

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The Promotion (Communication) Mix Learning Objectives1. Outline the different components of the promotion mix. 2. Understand the different types of media and vehicles.

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Promotional Mix Elements

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Advertising • A paid, non-personal message to a mass audience.• Media used: 1. Print—newspapers, magazines2. TV and radio3. Internet4. Social media—Facebook, Twitter, blogs5. Mobile marketing

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The Advertising Conundrum

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Ads to think about… • Lotto Ads• Ameriquest #1• Other Ad themes

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Creating Advertising • Creative strategy—a statement or concept of what a particular message or campaign wil say • The “big idea” • What is the big idea and why is it so important?

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Advertising Appeal • Rational approach – Depend on logic and speak to the consumer’s intel ect; based on the consumer’s need for information • Emotional approach – Tugs at the heartstrings or uses humor

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Types of Appeal • Rational appeals can be divided into two groups: – Argument– Lecture • Emotional appeals can be divided into two groups: – Dramatic– Psychological (self-interest)

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Advertising Appeal • Sel ing proposition – The promise or claim that captures the reason for buying the product or the benefit that ownership confers • Creative execution – The way an appeal or proposition is presented

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Emotional vs. Rational Advertising Rational- http://www.youtube.com/watch?v=XZoBfpm1zHg Emotional- http://www.youtube.com/watch?v=Tq4nrmnqY9o

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Art Directors and Art Direction • Art directors – Advertising professional who has the general responsibility for the overall look of an ad – Will choose graphics, pictures, type styles, and other visual elements that appear in an ad • Art direction – The visional presentation of an advertisement

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Copy and Copywriters • Copy is written or spoken communication elements • Copywriters are language specialists who develop headlines, subheads, and body copy

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Advertising Decisions • Which media gives the biggest bang for the buck? • The impact of advertising in most cases is difficult to measure except for coupons and rebates. • Different targeted markets require specific choices of vehicles to reach those markets.

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Public Relations

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Publicity Pro and Con • Publicity is a way of getting a message out in a manner that consumers feel is more believable since it comes through a third party. • The risk a company runs with publicity is that they lose control of the message, unlike advertising where control of the message is complete.

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Personal Sel ing • The most flexible and adaptive way to communicate is through personal sel ing. • The cost of personal sales limits its use to large transactions as in B2B markets. • Consumer personal sel ing may be found in such areas as Tupperware and Amway where the cost is borne by the sel er.

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Sales Promotions • Several promotional types are used to increase sales and gain market share. • Coupons and rebates are most frequently used as customers respond to actions where they can reduce their costs. • Grocery retailers would like to eliminate the burden of dealing with coupons, but tests have shown that customers want the immediate cost savings, and producers like the increase in sales that coupons offer.

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Direct Marketing • Delivering personalized promotional materials directly to consumers. • Delivery may come via mail, Internet, e-mail, telephone, or direct response advertising. • Al ows targeting specific consumers through demographics and zip codes. • Because this approach is intrusive, prospects ignore attempts to reach them.

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Telemarketing • Direct marketing by phone.• An effective technique for charitable organizations.• Consumers general y have a negative perception for telemarketing. • The Do Not Cal Registry prevents cal ing to phone numbers registered with the FTC. • Most companies avoid this technique because of costs, perceptions, and the DNC registry.

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Key Takeaways • The promotional mix consists of advertising, personal sel ing, public relations, sales promotions, and direct marketing. • Decisions are necessary regarding which media to use and then selecting the right vehicle.

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The Promotion Budget Learning Objectives1. Understand the different ways in which promotional budgets are set. 2. Understand how the budget can be al ocated among different media.

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Setting the Promotion Budget • Simplest method—use last year’s % of sales.• Affordable method—al ocate funds based on what can be made available. • Competitive parity method—budget funds comparative to competitor’s expenditures. • Objective and task method—establish a budget that is consistent with achieving the objectives and tasks cited in the marketing plan.

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Al ocating the Budget to Selected Media The promotion budget needs to be spread among the various media for effective communication of product programs. Typical choices are:1. Print—newspapers and magazines2. TV and radio3. Internet4. Outdoor—billboards, etc. 5. Mobile devices

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