Managing the “IMC” Process

Activity

• Think about the people you tried to persuade over the last day or two.– Who were the people?– What were you trying to accomplish?– Were you successful? If so, why? If

not, why not?

Major Types of Advertising

Enhance corporation’s identify

Enhance corporation’s identify

PioneeringPioneering

CompetitiveCompetitive

ComparativeComparative

ProductProductAdvertisingAdvertising

ProductProductAdvertisingAdvertising

InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising

Advocacy advertisingAdvocacy advertising

Money and Trust…

Advertising Campaign

A series of related advertisements focusing

on a common theme, slogan, and set of

advertising appeals.                 

Creating the Ad Campaign

Determine the advertising objectives.

Make creative decisions. Make media decisions.

Evaluate the campaign.

Objectives

• Inform, Persuade, Remind

• Where in PLC?

• Where in AIDA?

• What other important factors?

• Be specific, quantifiable and time oriented

Common Advertising Appeals

Profit Profit

HealthHealth

Love or romanceLove or romance

FearFear

AdmirationAdmiration

ConvenienceConvenience

Fun and pleasureFun and pleasure

Vanity and egotism Vanity and egotism

Environmental ConsciousnessEnvironmental Consciousness

Product saves, makes, or protects money Product saves, makes, or protects money

Appeals to body-conscious or health seekersAppeals to body-conscious or health seekers

Used in selling cosmetics and perfumesUsed in selling cosmetics and perfumes

Social embarrassment, old age, losing health Social embarrassment, old age, losing health

Reason for use of celebrity spokespeopleReason for use of celebrity spokespeople

Used for fast foods and microwave foodsUsed for fast foods and microwave foods

Key to advertising vacations, beer, parksKey to advertising vacations, beer, parks

Used for expensive or conspicuous items Used for expensive or conspicuous items

Centers around environmental protectionCenters around environmental protection

Mood or Image

Mood or Image

MusicalMusical

Demon-stration

Demon-stration

ScientificScientific

Real/AnimatedProductSymbols

Real/AnimatedProductSymbols

FantasyFantasy

LifestyleLifestyleSlice-of-LifeSlice-of-Life

HumorousHumorous

CommonCommonExecutionalExecutional

StylesStyles

CommonCommonExecutionalExecutional

StylesStyles

Spokes-person/

Testimonial

What people say they like…

Demonstration

Slice of Life

Testimonial

Lifestyle

Media Decisions (know the +/- of each)

NewspapersNewspapers

MagazinesMagazines

RadioRadio

TelevisionTelevision

OutdoorOutdoor

InternetInternet

Alternative MediaAlternative Media

Major Types Major Types ofof

AdvertisingAdvertisingMediaMedia

Major Types Major Types ofof

AdvertisingAdvertisingMediaMedia

The New Tactics• Video games (Media & Marketing News July 28, 2004)

• 14.2% people play videogames for leisure; 64 hours spent playing games in 2002; 42 million own gaming console

• Nascar 2005 Chase for the Cup – Advertisers include AutoZone, Dodge, Levi’s Signature, Mr. Clean AutoDry, Old Spice

• Jeep’s Trail of Life – 250,000 downloads & 40% intentions• US Army – America’s Army PC online and CD-Rom

• Online tactics (USA Today June 22, 2004)• Burger King is the King – subservient chicken & Ugoff• BMW Films• Online expected to exceed print advertising by 2007

The New Tactics

• Longer Ads (Wall Street Journal July 22, 2004)• Moving from :30 to 2 minute ads• Stella Artois beer, P&G, Honda, Under Armour

• Advertainment (USA Today June 22, 2004)• Mattel’s Hot Wheels will star in a feature length movie• Yahoo’s Times Square billboard where 800 number got

consumers racing cars for all to see• Cinema Advertising• Creativity in outdoor (adidas)

Media Terms to Know

• Media planning – series of decisions involved in delivering the message to the target audience.

• Media objectives – objectives sought by the plan

• Medium – general category of media channels [broadcast, print]

• Media vehicle – specific carrier in the media category [television, magazine & specifics]

Media Concepts to Know• Designated Market Areas (DMA) – NYC is

largest• Cost Per Thousand (CPM) – used for print

cost comparison• Cost Per Rating Point (CPRP) – used for

broadcast cost comparison• Sweeps – Neilson Grading (4 times a year) –

currently testing a new method – The people meters.

Comparing Media Costs - Magazines

Time Magazine Newsweek Magazine

Per page cost $156,000 $144,000

Circulation 4 million 3.1 million

Calculation of CPM 156,000 x 1000/4 million

144,000 x 1000/3.1 million

CPM $39.00 $46.45

Media Selection Criteria

Cost perCost perContactContact

Cost perCost perContactContact

ReachReachReachReach

FrequencyFrequencyFrequencyFrequency

AudienceAudienceSelectivitySelectivityAudienceAudienceSelectivitySelectivity

The cost of reaching one member of the target market.

The cost of reaching one member of the target market.

The number of target consumers exposed to a commercial at least

once during a time period.

The number of target consumers exposed to a commercial at least

once during a time period.

The number of times an individual is exposed to a message during a

time period.

The number of times an individual is exposed to a message during a

time period.

The ability of an advertising medium to reach a precisely

defined market.

The ability of an advertising medium to reach a precisely

defined market.

Media Schedules

ContinuousContinuousMedia ScheduleMedia Schedule

ContinuousContinuousMedia ScheduleMedia Schedule

Flighted Flighted Media ScheduleMedia Schedule

Flighted Flighted Media ScheduleMedia Schedule

PulsingPulsingMedia ScheduleMedia Schedule

PulsingPulsingMedia ScheduleMedia Schedule

SeasonalSeasonalMedia ScheduleMedia Schedule

SeasonalSeasonalMedia ScheduleMedia Schedule

Advertising is run steadily throughout the period.

Advertising is run steadily throughout the period.

Advertising is run heavily every other month or every two weeks.Advertising is run heavily every other month or every two weeks.

Advertising combines continuous scheduling with flighting.

Advertising combines continuous scheduling with flighting.

Advertising is run only when the product is likely to be used.

Advertising is run only when the product is likely to be used.

Evaluation

• Brand recognition

• Brand recall

• Attitudes & intentions to purchase

• Use research tools again!!

• Share of expenditure, share of voice, share of mind and heart and share of market

The Confusion of ROI• Incremental sales revenue created by marketing• Changes in brand awareness• Total sales revenue generated by marketing activity• Changes in purchase intentions• Changes in attitudes toward brand• Changes in market share• Number of leads generated• Ratio of ad costs to sales revenues• Cost per lead generated• Reach/frequency• Gross rating points• Cost per sale generated• Post buy analysis of media• Increase in lifetime value

Public Relations

Evaluates public attitudes

Evaluates public attitudes

Identifies issues of public concernIdentifies issues of public concern

Executes programs to gain

public acceptance

Executes programs to gain

public acceptance

The Role of The Role of Public RelationsPublic Relations

The Role of The Role of Public RelationsPublic Relations

Public Relations Functions

• Press/media relations• Product publicity• Corporate communication• Lobbying• Counseling/crisis management• Viral marketing • Creating WOM

BW, 5.17/99

Major Tools for Marketing PR

Internal Internal & External& ExternalAudiencesAudiences

Internal Internal & External& ExternalAudiencesAudiences

EventsEvents

SponsorshipsSponsorships

NewsNews

SpeechesSpeeches

Public Service ActivitiesPublic Service Activities

PublicationsPublications

Sales Promotion

Marketing communication activities, other than

advertising, personal selling, and public

relations, in which a short-term incentive

motivates a purchase.

Consumer Promotions

Trade promotions

Objectives of Sales Promotions

Type of Buyer Type of Buyer Type of Buyer Type of Buyer

Loyal CustomersLoyal Customers

Competitor’sCustomersCompetitor’sCustomers

Brand SwitchersBrand Switchers

Price BuyersPrice Buyers

Desired Results Desired Results Desired Results Desired Results

•Reinforce behavior• Increase consumption•Change timing

•Reinforce behavior• Increase consumption•Change timing

•Break loyalty•Persuade to switch•Break loyalty•Persuade to switch

•Persuade to buy your brand more often

•Persuade to buy your brand more often

•Appeal with low prices

•Supply added value

•Appeal with low prices

•Supply added value

Sales PromotionSales PromotionExamplesExamples

Sales PromotionSales PromotionExamplesExamples

•Loyalty marketing•Bonus packs•Loyalty marketing•Bonus packs

•Sampling•Sweepstakes, contests, premiums

•Sampling•Sweepstakes, contests, premiums

•Price-lowering promotion

•Trade deals

•Price-lowering promotion

•Trade deals

•Coupons, price-offpackages, refunds

•Trade deals

•Coupons, price-offpackages, refunds

•Trade deals

Why Use Sales Promotions?

Immediate PurchasesImmediate Purchases

Increase TrialIncrease Trial

Boost consumer inventoryBoost consumer inventory

Encourage repurchaseEncourage repurchase

Increase ad effectivenessIncrease ad effectiveness

Encourage brand switchingEncourage brand switching

UsesUsesofof

Sales Sales PromotionPromotion

UsesUsesofof

Sales Sales PromotionPromotion

Encourage brand loyaltyEncourage brand loyalty

Major Consumer Promotion Tools

• Samples• Coupons• Case refund offers

(rebates)• Price packs• Premiums• Frequency

programs

• Prizes (contests, sweepstakes)

• Patronage awards• Free trials• Warranties• Tie in promotions• Cross promotions• POPs

Major Trade Promotion Tools

• Price Off (off invoice, off list)

• Allowance

• Free Goods

• Trade shows

• Sales contests

• Specialty Advertising

Direct Marketing

• The use of consumer direct channels to reach and deliver goods and services to customers w/out intermediaries

• Talk more in retailing about direct marketing