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

Jeremy Kees, Ph.D.

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

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

Consumer-Oriented Promotions

• Coupons

Consumer-Oriented Promotions

• Refunds– Similar to Rebates

• Samples• Bonus Packs• Premiums

Consumer-Oriented Promotions

• Contests• Sweepstakes

Consumer-Oriented Promotions

• Specialty Advertising– Peanut Chews Opening Night T-Shirt

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

Trade-Oriented Promotions

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

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

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.

Marketing Public Relations (MPR)

• The firm’s communications and relationships with its various publics

• Includes a variety of programs to promote or protect a company’s image or individual products

Corporate Ads – Boeing

VSB

MPR Functions

• Building Marketplace Excitement– PS3

• Creating Advertising News– Super Bowl Ads

• Substitute for Advertising• Providing Value-Added Customer

Service– Butterball

Advantages of MPR

• Credibility• Cost• Avoidance of Clutter• Image Building

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.

Advantages of Publicity

• Credibility (even more than public relations)

• News Value

Disadvantages??

Personal Selling

…. interpersonal influence process involving a seller’s 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

Today’s 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

Huge $$ Potential (if you’re good)

The Sales Process

Sales Force Decisions

• Objectives• Strategy• Structure• Size• Compensation