Chapter 15

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• Chapter 15
• Integrated Marketing Communications

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Objectives

• Discuss how integrated marketing communications
  relates to the development of the promotional
  mix.
• Describe the communication process and how it
  relates to the AIDA concept.
• Discuss how the promotional mix relates to the
  objectives of promotion.
• Identify the different elements of the
  promotional mix and explain how marketers develop
  the promotional mix.

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Objectives

• Discuss the role of sponsorships and direct
  marketing in integrated marketing communications.
• Contrast the two major alternative promotional
  strategies.
• Explain how marketers budget for and measure the
  effectiveness of promotion.
• Discuss the value of marketing communications.

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Marketing Dictionary

• Promotion. Function of informing, persuading, and
  influencing a consumers purchase decision.
• Marketing Communications. Messages that deal with
  buyer-seller relationships.
• Integrated Marketing Communications (IMC).
  Coordination of all promotional activities to
  produce a unified, customer-focused promotional
  message.

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Effective Message Tasks

• Gain the receivers attention.
• Achieve understanding by both receiver and
  sender.
• Stimulate the receivers needs and suggests an
  appropriate method of satisfying them.

AIDA
AttentionInterestDesire--Action
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Objectives for Promotion

• Provide information to consumers and others.
• Increase demand.
• Differentiate a product.
• Accentuate a products value.
• Stabilize sales.
• How do you think this advertisement met these
  objectives?

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Increase Demand

• Primary demand, the desire for a general product
  category is more typical for marketers who decide
  to expand overseas.
• Selective demand, the desire for a specific brand.

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Promotional Mix

• Price
• Product
• Promotion-Mix
• Personal Selling
• Advertising
• Sales Promotions
• Direct Marketing
• Public Relations
• Guerilla Marketing
• Distribution

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Growth of In-store Sales Promotions Ads

• 19 billion in 2005
• Client pitches now include retail strategy
• Gillettes Venus razor in 2005 1st ad on
  Wal-Marts in-store TV network (at deli
  checkout) launched 122 new products in 2004
• Wal-Marts audience 130 M shoppers/month
• Super Bowl audience - 86 million
• Absolut vodka display lit bottles with
  colored-matched spotlights coordinated with print
  campaign
• P Gs Director of First Moment of Truth
• 15-person department 50 FMOT leaders
• FMOT first 3-7 seconds when notice item on
  shelf

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McDonalds Monopoly Game 07

• 200 million in cash prizes
• Partners Toys R Us and Footlocker.

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Mobile Marketing 08

• 250M U.S. consumers have a phone
• Mobile channel is uncluttered comparatively
  inexpensive
• Cellphone to become even more personal
• Widgets lifestyle applications
• Mobile brand leaders
• Busch ringtones, dedicated mobile selections
  wireless sites

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Promotional Mix - Reaching the Teen Market

• According to a study by Teenage Research
  Unlimited (TRU), the nation's premier
  market-research firm focusing on the teen market,
  teens spent 172 billion in 2001. TRU goes on to
  state that teen consumers spent an average of 104
  per week in 2001.
• Source Teen Research Unlimited Web Site.

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College Students 07

• Targeted to reach mass society
• Everyone wants to be young
• 1 brand Apple
• Most anticipated products IPhone, IPod
• 75 surf social-networking sites (more females)
  read news online
• 1 favorite brands
• Book Harry Potter Website facebook
  Clothing Old Navy Magazine Cosmo TV
  Greys Anatomy Candy Snickers Soda Coke
  Celeb Depp Team Yankees Cellphone
  Verizon MP3 IPod Musician Linkin Park Fast
  food Taco Bell
• Most hated loved ads
• Axe Bodyspray, iPhone, Burger King, Apple

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YOUTUBE BRAND AWARENESSFOR LOGITECH

• 2007 - Targeted 18- to 24-year-olds
• Moderately priced QuickCam digital video camera
• Used online social networking environment
• One of the first paying advertisers to run a
  branded contest on YouTubes contest platform in
  a 2007 campaign.

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Unilever Guerilla Marketing 07

• "Talk to your daughter before the beauty industry
  does."
• Supports Doves self-esteem fund
• Red-haired preteen girl, "Here it comes" from
  Simian's "La Breeze
• Beauty-industry images of booty-shaking lingerie
  models, plastic surgery, yo-yo dieting bulimia
• Follow up to Doves "Evolution"
• 12 million views on YouTube
• Helped "Onslaught" generate blog mentions

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YouTube Video

• Madison Avenue Stampedes Onto Facebook 2007
• http//adage.com/video/Player?spotId1252instance
  IdstartIdPageDatePageTitleAd_ Age_Today
• Best Buy enlists YouTube for back-to-school
  college contest
• Tech U Out Video Challenge asks students to post
  videos on YouTube and will award a grand-prize
  winner 15,000 in electronics for dorm room
  (Promo Magazine - 8/3)
• First round at Youtube.com/User/Bestbuy to
  8-18-07

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Growth of Commercial Sponsorships

• Government restrictions.
• Escalating costs of traditional advertising
  media.
• Additional opportunities resulting from diverse
  leisure activities.
• Greater media coverage of sponsored events.
• An effective way to reach an international
  audience.
• Sponsorships represent alternatives to the
  increased clutter associated with advertising and
  direct mail.

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Branded Entertainment

• 06 MTV The Gamekillers Axe antipersperant by
  Unilever
• TV series young mans quests to win over women
• Carefully crafted compromise
• Coordinate ad campaign with shows debut
• Axe brand during a few scenesPosters at certain
  colleges
• An AXE Attractions production

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Celebrity Endorsements

• Nike delayed 07 shoe launch suspended Vick
• Macys 07 Trump blow-dries his distinctive hair
  and ditzy pop singer Jessica Simpson acts
  confused about whether to push or pull a Macy's
  door
• Hinge on appeal of Trump, Simpson, Diddy, Usher
  and Martha Stewart.

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Direct Marketing

• Opens new international markets of unprecedented
  size.
• Pursue goals beyond creating product awareness.
• Very important tool that helps organizations to
  win new customers and enhance relationships with
  existing ones.
• Parallels the move toward integrated marketing
  communications.

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Halo 3 Sept. 07

• Co-marketed "Halo 3" Mountain Dew Game Fuel
• Bloggers typed millions of words on it

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KFC 2.99 Deal 07 Scent Marketing

• "scent-focused" pilot program offering free meals
  to officer workers at 3 companies.
• Mail clerks carried meals for sale with
  interoffice mail, bills and packages on carts
  passing office workers during pre-lunch runs.

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Direct Marketing Sales by Media Category
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Factors That Influence the Effectiveness of a
Promotional Mix

• Nature of the Market
• Nature of the Product
• Product Life Cycle Stage
• Price
• Funds Available for Promotion

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Two Promotional Alternatives

• Pulling strategy is a promotional effort by the
  seller to stimulate final-user demand.
• Pushing strategy relies more heavily on personal
  selling.
• The objective is promoting the product to the
  members of the marketing channel rather than to
  final users.

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Allocation of Promotional Budgets for Consumer
Packaged Goods
Trade Promotion Spending as a Percentage of Total
Promotional Budget 2005 Estimate
Consumer Promotion 21
Trade Promotion 58
Advertising Media 21

• SOURCE Data from Donnelley Marketing and
  Accenture Analysis, Capturing and Sustaining
  Value Opportunities in Trade Promotion, accessed
  at the Accenture Web site, September 6, 2002,
  http//www.accenture.com

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Promotional Budget Methods
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Measuring Effectiveness of Promotion

• Direct Sales results test to measure the
  effectiveness of promotion.
• Reveal the specific impact on sales revenues for
  each dollar of promotional sending.
• This technique has always eluded marketers.
• Indirect evaluation
• Concentrate on quantifiable indicators.
• The basic problem with indirect measurement is
  the difficulty of relating these variables to
  sales.

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Value of Marketing Communications

• Provide socially important messages.
• Are important to businesses.
• Contain economic importance.