Integrated Marketing Communications:, PR, Publicity, and Sales Promotions

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Integrated Marketing Communications, PR,
Publicity, and Sales Promotions

• Jeremy Kees, Ph.D.

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Sales Promotions

• A collection of incentive tools, mostly short
  term, designed to stimulate quicker or greater
  purchase of particular products or services by
  consumers or the trade
• Customer Oriented
• Trade Oriented

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Why Sales Promotions?

• Increased Promotional Sensitivity
• Declining Brand Loyalty
• Response to Competition (viscous cycle)
• Brand Proliferation
• Fragmentation of Markets
• Pressures for Short-Term Performance
• Increased Accountability
• Advertising Inefficiency

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Consumer-Oriented Promotions

• Coupons

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Consumer-Oriented Promotions

• Refunds
• Similar to Rebates
• Samples
• Bonus Packs
• Premiums

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Consumer-Oriented Promotions

• Contests
• Sweepstakes

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Consumer-Oriented Promotions

• Specialty Advertising
• Peanut Chews Opening Night T-Shirt

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Consumer-Oriented Promotions

• Event Marketing
• Becoming part of a personally relevant moment in
  consumers lives
• Sponsorships are perhaps the most
  prevalent/popular form of event marketing
• Example Bryant Park and the Simpsons
• Free ice skating (skate rentals)
• Ned Flanders' hot chocolate
• Simpsons Sprinkalicious donuts
• "Duff D'oh!Nuts" ice cream
• Empire State Building of shining Simpsons yellow

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Trade-Oriented Promotions

• Trade Allowances
• Point-of-Purchase Displays
• Trade Shows
• Dealer Incentives

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And finally

• Marketers response to the DVR / TiVo
  revaluation
• Product placement
• Some examples
• Apprentice / Survivor
• The Office (1)
• We now see it in
• Movies
• TV programming
• Video games

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Group Exercise

• Is product placement a useful tool for marketers?
• If so, under what circumstances
• Are there any ethical considerations?
• For instance, some countries not permit product
  placements in domestic made films.

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Marketing Public Relations (MPR)

• The firms communications and relationships with
  its various publics
• Includes a variety of programs to promote or
  protect a companys image or individual products
• Corporate Ads Boeing
• VSB

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MPR Functions

• Building Marketplace Excitement
• PS3
• Creating Advertising News
• Super Bowl Ads
• Substitute for Advertising
• Providing Value-Added Customer Service
• Butterball

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Advantages of MPR

• Credibility
• Cost
• Avoidance of Clutter
• Image Building

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Publicity

• . nonpersonal stimulation of demand for a good,
  service, place, idea, person, or organization by
  unpaid placement of significant news regarding
  the product in a print or broadcast medium
• Sprint Fires Customers
• Really, a subset of the MPR effort.

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Advantages of Publicity

• Credibility (even more than public relations)
• News Value
• Disadvantages??

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Personal Selling

• . interpersonal influence process involving a
  sellers promotional presentation conducted on a
  person-to-person basis with the buyer
• Oldest and most traditional form of marketing
• Traditionally a negative stereotype
  (unfortunately)
• Today, we see an emphasis on relationship
  selling
• Emphasis on LTV of customers
• Constant building/fostering of relationships

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Todays Salesperson

• A highly-trained professional
• Takes a customer-oriented approach in order to
  satisfy the long-term needs of both the customer
  and the selling firm
• Problem solvers
• Account managers
• Know customers inside and out so that the company
  can adapt to customer needs

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Huge Potential (if youre good)
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The Sales Process
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Sales Force Decisions

• Objectives
• Strategy
• Structure
• Size
• Compensation