copyright ©2005 by south-western, a division of thomson learning. all rights reserved. introduction...

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Introduction to Marketing


Chapter 13 Objectives

1.1. Appreciate the variety of marketing Appreciate the variety of marketing communications tools, and how they communications tools, and how they work together to accomplish work together to accomplish communication objectives. communication objectives.

2.2. Understand the nature, importance, Understand the nature, importance, and features of integrated marketing and features of integrated marketing communications.communications.



3.3. Describe the concept of brand-equity Describe the concept of brand-equity enhancement and the role of enhancement and the role of marketing communications in marketing communications in facilitating this objective.facilitating this objective.

4.4. Comprehend the factors that Comprehend the factors that determine how different marketing determine how different marketing communications elements are communications elements are effectively combined. effectively combined.



5.5. Discuss the primary decision Discuss the primary decision spheres involved in managing the spheres involved in managing the marketing communications process.marketing communications process.

6.6. Evaluate the nature and function of Evaluate the nature and function of the major MarCom tools: (a) the major MarCom tools: (a) advertising, (b) sales promotion, (c) advertising, (b) sales promotion, (c) public relations, and (d) sponsorship public relations, and (d) sponsorship and event marketing.and event marketing.


Integrated Marketing Communications

• The dramatic changes in the field of marketing communications over the last decade have challenged marketing communicators to use communications methods that will:

– Break through the communications clutter in the marketplace

– Reach audiences with interesting and persuasive messages

– Assure that MarCom investments yield an adequate return on investment


The Tools of Marketing Communications

The MarCom Mix:

1. Personal Selling

2. Advertising

3. Public Relations

4. Sales Promotion

5. Sponsorship Marketing

Objective 1


The MarCom Mix

Objective 1

1. Personal Selling• Interaction between salesperson and

prospect to sell products such as insurance, automobiles, and real estate.


The MarCom Mix

2. Advertising• Informs the end customer or B2B

customer about products and brand benefits and ultimately influences brand choice.

Objective 1


The MarCom Mix

3. Public Relations• Garners positive publicity for the

company and its brands through news items or editorial comments.

Objective 1


The MarCom Mix

Objective 1

4. Sales Promotion• Creates an immediate response from

the market.– Trade-oriented sales promotions– Consumer-oriented sales

promotions


The MarCom Mix

5. Sponsorship Marketing• Represents an opportunity for a

company and its brands to directly target communications toward narrow, but highly desirable, audiences.

• Associates a brand with a charitable cause, a high profile event, or a cultural affair.

Objective 1


The Philosophy and Practice of Integrated Marketing Communications

Integrated Marketing Communications:• A move towards fully integrating all

business practices that communicate something about a company’s brands to present or prospective customers.

Objective 2


Integrated Marketing Communications

Objective 2

Five Key Aspects of IMC:1. Start with the customer or prospect2. Use any form of relevant contact3. Achieve Synergy4. Build Relationships5. Affect Behavior


The Philosophy and Practice of Integrated Marketing Communications

Key Changes in MarCom from the IMC Thrust:

• Reduced dependence on mass-media advertising.

• Increased reliance on highly targeted communication methods.

• Expanded efforts to assess communications’ return on investment.

Objective 2


Enhancing Brand Equity

• Brand Equity:

A brand possesses equity to the extent that customers are familiar with the brand and have stored in memory favorable, strong, unique brand associations.

• Brand Equity consists of two forms of knowledge:– Brand Awareness– Brand Image

Objective 3


Enhancing Brand Equity

• Brand Awareness:– Brand Recognition– *Brand Recall* (It is this deeper level of awareness, recall,

to which marketers aspire)

• Brand Image:– Can be thought of in terms of the types

of associations that come to the consumer’s mind when contemplating a particular brand.

Objective 3


Determining an Appropriate Mix of IMC Tools

Five Factors to Consider:

1. What is the intended market?

2. What objectives must the MarCom initiative achieve?

3. What is the product life-cycle stage?

4. What are competitors doing?

5. What is the available budget for marketing communications?

Objective 4


Managing the MarCom Process

Six Primary Areas of Decision Influence:

1. Selecting target markets

2. Establishing objectives

3. Setting budgets

4. Formulating positioning strategies

5. Establishing and implementing message and media strategies

6. Evaluating program effectiveness

Objective 5


Advertising

3 Ways to Add Value to Offerings:

1. Innovating

2. Improving quality

3. Altering consumer perspectives

• Advertising adds value to brands by influencing consumers’ perceptions.

Objective 6A


Advertising

Six Major Activities of Advertising Strategy:

1. Objective setting

2. Budgeting

3. Positioning

4. Planning message strategy

5. Developing media strategy

6. Assessing advertising effectiveness

Objective 6A


Advertising

Good or Effective Advertising:

• Extends from sound marketing strategy• Takes the consumer’s view• Is persuasive• Finds a unique way to break through

competitive clutter• Never promises more than it can deliver• Prevents the creative idea from

overwhelming the strategy

Objective 6A


Sales Promotion

• Sales Promotions are the use of any incentive by a manufacturer to induce the trade (wholesalers and retailers) and/or consumers to buy a brand and to encourage the sales force to aggressively sell it.

Objective 6B


Sales Promotion

• Over the last two decades, there has been a shift from Advertising to Sales Promotion.

6 Factors accounting for Shift:1. Balance of power transfer2. Increased brand parity and price sensitivity3. Reduced brand loyalty4. Splintering of the mass market and reduced media

effectiveness5. Short term orientation and corporate reward

structures6. Trade and consumer responsiveness

Objective 6B


Sales Promotion

Sales Promotion: Roles and Objectives

1. Facilitating the introduction of new products to the trade.

2. Obtaining trial purchases from consumers.3. Stimulating sales force enthusiasm for

new, improved, or mature brands.4. Invigorating sales of a mature brand.5. Increasing on- and off-shelf merchandising

space.

Objective 6B


Sales Promotion

Sales Promotion: Roles and Objectives

6. Neutralizing competitive advertising and sales promotion.

7. Holding current users by encouraging repeat purchases.

8. Increasing brand usage by loading consumers.

9. Preempting competition by loading consumers.

10. Reinforcing advertising.Objective 6B


Sales Promotion

Trade Promotions:

• Trade Promotions are directed at wholesalers, retailers, and other marketing intermediaries, and represent the first step in any promotional effort.

Consumer Promotions:

• Consumer Promotions encourage consumers to purchase one brand over another, to purchase a particular brand more often, and to purchase in larger quantities through activities such as sampling, couponing, sweepstakes, and contests.

Objective 6B


Public Relations

• PR is the MarCom tool that is uniquely suited to fostering goodwill between a company and its various publics.

• It can also increase brand awareness, build favorable attitudes toward a company and its products, and encourage purchase behavior.

Objective 6C


Public Relations

• Proactive MPR is another MarCom tool in addition to advertising and sales promotion that can give a brand additional exposure, newsworthiness, and credibility.

• Reactive MPR is undertaken as a result of external pressures and challenges brought by competitive actions, changes in consumer attitudes, changes in government policy, or other external influences.

Objective 6C


Sponsorship Marketing

• Sponsorships range from supporting athletic events to throwing corporate weight behind a worthy cause.

• Event Marketing• Cause Related Marketing

Objective 6D


Sponsorship Marketing

• Four Factors account for the growth in sponsorships:

1. Enables companies to avoid the clutter inherent in advertising media

2. Helps companies respond to consumers’ changing media habits

3. Helps companies gain the approval of various constituencies

4. Enables marketers to target their communication and promotional efforts to specific regions or groups

Objective 6D

copyright ©2005 by south-western, a division of thomson learning. all rights reserved. introduction...

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