Lecture One MKT 6810

1
Lecture OneMKT 6810

• Introduction to Promotions Management and
  Integrated Marketing Communications (IMC)

2
Key Terms

• Marketing
• Set of activities whereby businesses and other
  organizations create transfers of value
  (exchanges) between themselves and their customers

• Communications
• Process whereby thoughts are conveyed and meaning
  is shared between individuals or between
  organizations and individuals

3
Marketing Communications

• What types of communications exist to promote
  their offerings and achieve their financial and
  non-financial objectives?
• B2B
• B2C
• B2NP

4
Integrated Marketing Communications

• a concept of marketing communications planning
  that recognizes the added value of a
  comprehensive plan that evaluates the strategic
  roles of a variety of communication disciplines -
  for example, general advertising, direct
  response, sales promotion, and public relations-
  and combines these disciplines to provide
  clarity, consistency, and maximum communications
  impact.

Slide 1-1
Irwin/McGraw-Hill

• The McGraw-Hill Companies, Inc., 1998

5
Marketing Communications

• Collection of all elements in a brands marketing
  mix that facilitate exchanges by establishing
  shared meaning with the brands customer of
  clients

6
Strategies for IMC

• Affect Behavior
• Use all forms of contacts
• Start with customer
• Achieve synergy
• Build Relationships

7
Brand Equity

• One of the primary objectives of brand and
  category managers if to utilize promotions to
  enhance brand equity
• Brand equity
• New products would be perceived as on a level
  playing field with existing brands in the
  marketplace as well as other products of the firm
• Most IMC focuses on brand level

8
Importance of Brand Loyalty vs. Equity

• While marketers have long viewed brands as
  assets, the real asset is brand loyalty. A brand
  is not an asset. Brand loyalty is the asset.
  Without the loyalty of its customers a brand is
  merely a trademark, an ownable, identifiable
  symbol with little value. With the loyalty of
  its customers, a brand is more than a trademark.

9
Importance of Brand Loyalty

• A trademark identifies a product, a service, a
  corporation. A brand identifies a promise. A
  strong brand is a trustworthy, relevant,
  distinctive promise. It is more than a
  trademark. It is a trustmark of enormous value.
  Creating and increasing brand loyalty results in
  a corresponding increase in the value of the
  trustmark.

10
Valuable Brands in the Market

• Coca-Cola
• Marlboro
• IBM
• Motorola
• HP
• GE
• Levis

11
Brand Concept Management (BCM)

• Brand concept
• The specific meaning that managers create and
  communicate to the TM
• Introduce
• Utilize advertising and promotions to yield
  awareness and familiarity
• Fortify
• Reinforce the image and connections in consumers
  minds
• Elaborate
• Build and expand to other products

12
BCM

• Focuses on three basic consumer needs
• Functional needs
• Provide solutions to consumers problems through
  product attributes
• Symbolic needs
• Psychological desires addressed
• Group membership
• Affiliation, belongingness (think Maslow)
• Experiential Needs
• Sensory pleasures addressed as well as cognitive
  and hedonic consumption

13
Elements of the Promotions Mix

• Advertising
• Sales Promotion
• Publicity/PR Management
• Personal Selling
• Direct Marketing

14
Advertising

• Paid
• Identifiable Sponsor
• Mass Media
• Inform or Persuade

15
Sales Promotion

• Incentive or extra value to encourage the
  consumer to act in a certain fashion.
• Trade-oriented and consumer oriented
• Examples coupons, sweepstakes, trade shows,
  rebates, free samples

16
Publicity

• nonpersonal communication regarding the
  organization, product, service or idea that is
  not directly paid for nor run under identified
  sponsorship, usually coming from a news story,
  editorial, or announcement about an organization
  or its products and services

17
Public Relations

• the management function which evaluates public
  attitudes, identifies the policies and procedures
  of an individual or organization with the public
  interest, and executes a program of action to
  earn public understanding and acceptance.

18
Personal Selling

• involves the direct contact between the buyer and
  seller in which the seller attempts to persuade
  and assist the prospective customers to purchase
  the companys products or service or to act on an
  idea.

19
Direct Marketing

• Communication delivered directly to the consumer
  to generate a response or a transaction
• Direct mail
• catalogs, specialty promos
• Telemarketing
• Direct selling
• Direct response advertising

20
Trends in IMC

• Reduced Dependence in Mass Media Advertising
• Increased Reliance on Highly Targeted
  Communications Methods
• Greater Demands Imposed on Marketing
  Communications Suppliers
• Increased Efforts to Assess Communications ROI