Integrated Marketing Communications and Promotion

1
Integrated Marketing Communications and Promotion

• Elements of promotion
• Advertising strategies
• Other methods of promotion

2
Elements of the Promotion Mix

• Advertising
• Sales Promotion
• Sales
• Coupons
• Rebates
• Premiums

• Personal selling
• Public relations
• Direct marketing

3
The Product Life Cycle and Promotional Objectives

• Introduction
• Awareness
• Trial
• Growth stage
• Persuasion to buy product
• Brand preference
• Solid distribution

• Maturity
• Maintenance of
• Sales
• Distribution channels
• Shelf space

4
Promotion by Decision Stage

• Prepurchase
• Influence decision, preference
• Samples to induce trial
• Purchase
• Sales promotion
• Point-of-purchase (POP) displays
• Post-purchase
• Increase repurchase propensity

5
Channel strategies

• 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
• Snapplemade from the best stuff on earth

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 advertisement(s)
• Informational/persuasive
• Fear appeals
• Sex appeals
• Humor appeal

9
Some Media Alternatives

• Television
• Conventional advertisements
• Infomercials
• Sponsorship programming
• Placements
• In programming
• Superimposed
• Radio

• Magazines
• Newspapers
• Outdoor
• Internet
• Point-of-purchase
• Other
• Movie theaters
• On other products

10
Executing The Advertising Program

• 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

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
Contrasting Advertising Perspectives (Aithison
2002)

• Western
• Atomisticbroken 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

Jim Aitchison, How Asia Advertises, New York
Wiley, 2002.
23
Promotion Options

• Coupons
• In ads
• In store
• Electronic
• Deals
• Premiums
• Contests
• Sweepstakes

• Samples
• Continuity programs
• Point-of-purchase displays
• Rebates
• Product placements

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 journalists schedule
• brevity--if you cant 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