ADVERTISING MANAGEMENT

…through the lens of Branding

Dr. Close

1.23

Key Participants in IMC Management

Marketing Organization•Marketing Plan•Goal & Objectives•Customer/Prospect Databases

Marketing Organization•Marketing Plan•Goal & Objectives•Customer/Prospect Databases

Specialized Promotion Organizations•Media Organizations•Event Management Firms•Web Site Designers•Sales Promotions Agencies•Direct Marketing Agencies•Public Relations Firms•P-O-P Agencies & Designers

Specialized Promotion Organizations•Media Organizations•Event Management Firms•Web Site Designers•Sales Promotions Agencies•Direct Marketing Agencies•Public Relations Firms•P-O-P Agencies & Designers

Advertising Agency•Research•Creative Strategies•Production•Message Placement

Advertising Agency•Research•Creative Strategies•Production•Message Placement

Internet AdvertisingInternet Advertising

Advertising Advertising

Sales PromotionsSales Promotions

IMC ManagementIMC Management Personal SellingPersonal Selling

Direct Marketing e-Commerce

Direct Marketing e-Commerce

Sales PromotionsP-O-P

Supportive

Sales PromotionsP-O-P

Supportive

Public RelationsPublic Relations

1.21

Integrated Marketing Communications

FACTORS CONTRIBUTING TO IMC’s RISING PROMINENCE• Fragmentation of Media• Better Audience Assessment Through Database Technology• Consumer Empowerment• Increased Advertising Clutter• Shifting Channel Power• Desire of Greater Accountability

1.2

Relationship Between Promotion, the Promotional Mix, &

Integrated Marketing Communications

PROMOTION• Communication Process in Marketing• Used to Create a Favorable Predisposition Toward:– Brand of Product– Service– Idea– Person

PROMOTIONAL MIX• Blend of Communications Tools & Activities Used by a Firm• Carries out the Promotion Process• Communicates Directly with Target Markets

1.3

Relationship Between Promotion, the Promotional Mix, &

Integrated Marketing Communications (con’t)

INTEGRATED MARKETING COMMUNICATIONS (IMC)• Manages the Processes & Activities of Using Promotional Tools• Unified Way• Produces a Synergistic Communications Effect

1.4

Relationship Between Promotion, the Promotional Mix, &

Integrated Marketing Communications (con’t)

• Promotion: Process

• Promotion Mix: Tools

• IMC: Management of the Promotion Mix

1.5

The Promotional Mix

ADVERTISING• Paid Mass Media Attempt to Persuade• Complex System of Strategic Planning &

Creative Genius

INTERNET ADVERTISING• Electronic Mail (e-mail)• Internet Relay Chat (IRC)• Usenet• World Wide Web (www)

SALES PROMOTION• Use of Incentives to Generate a Specific Short-Term Response

– Household Consumer– Trade Buyer– Business Buyer

1.8

DIRECT MARKETING & e-COMMERCE• Distinguished From Other Primary Promotional Tools

in 3 Ways– Uses a Combination of Media– Designed to Elicit a Direct Response– Transactions Can Occur Anywhere

• E-Commerce is Another Form of Direct Marketing– Business is Conducted Between Buyers & Sellers

Using Electronic Exchange Media

The Promotional Mix The Promotional Mix

1.9

The Promotional Mix

SPONSORSHIP• Funding an Event• Creating an Event to Showcase a Firm’s Brand

POINT-OF-PURCHASE• Materials Used in Retail Setting to Attract Shoppers’ to a

Company’s Brand

SUPPORTIVE COMMUNICATIONS• Used to Target Audiences Outside Mainstream Media or

Electronic Communications

1.10

The Promotional Mix

PUBLIC RELATIONS• Communication that can Foster Goodwill Between a Firm

& its Many Constituent Groups

PERSONAL SELLING• Presentation of Information about a Firm’s Products or

Services by One Person to Another Person or to a Small Group of People

1.12

The Promotional Mix

ROLE OF PROMOTION IN MARKETING STRATEGY• Must Have Marketing Strategy Decisions about Products

(Brand)– Branding – Established Name, Term, Symbol or Design

that Identifies for Consumers that a Product is being Offered by a Particular Seller & Clearly Distinguished the Product of that Seller from those Offered by Competitors

1.13

The Promotional Mix

ROLE OF PROMOTION IN MARKETING STRATEGY Affects 3 Key Aspects of Decision Making with Respect to Brands– Creating the Marketing Mix– Achieving Effective Market Segmentation, Product

Differentiation, & Positioning– Enhancing Revenues & Profits

1.14

The Promotional Mix

– Assumes a Wide Range of Responsibilities Related to:• Conception• Pricing

1.15

The Promotional Mix

ROLE OF PROMOTION IN THE MARKETING MIX (con’t)– Promotion Affects the Product Area of the

Marketing Mix• Information & Persuasion• Introduction of New Brand or Brand Extensions• Building & Maintaining Brand Loyalty

Among Consumers• Building & Maintaining Brand Loyalty

Within the Trade

1.16

One Role for Promotion

is to Introduce Brand/LineExtensions

Example: Extension ofJell-O intothe Yogurt Market

Go-gurt?(I say no-gurt!)

1.17

The Promotional Mix

ROLE OF PROMOTION IN MARKETING _Price

• Effects the Consumer Market• Effects the Trade Market

– Distribution• Consumer Access to Brands• Securing Trade Distribution

1.18

Role of Promotion in Effective Market Segmentation, Differentiation & Positioning

• Promotion is Important in Helping to Execute These Strategies–Market Segmentation–Product Differentiation–Positioning• External• Internal

1.19

The Role of Promotion in Revenue & Profits

• Sales Occur– Brand has Well-Conceived Marketing Mix– Complete Marketing Mix– Good Promotion

• Large-Scale Demand /Production Produces– Cost to Produce Item is Reduced– Known as Economies of Scale

• Brand Loyalty at Any Cost– Firm Raises Prices– Known as Inelasticity of Demand

1.20

Promotional Tools HelpIncrease Brand Loyalty(or even brand love)

1.22

Cut Through the Cr*@!