Integrated Marketing CommunicationsAdvertising, Promotion, Public Relations and Selling

Marketing 6201

Chip Besio

6 Ms of Advertising

• Market - target consumer• Mission - objectives.• Money - to pay for the campaign.• Message - to be delivered.• Media - choice of advertising media.• Measure - measuring the impact.

Mission - Advertising / Promotional objectives

• To increase sales• To attract new customers• To retain existing ones• To encourage customer loyalty• To encourage trial• To create awareness• To inform• To remind• To reassure• To encourage customer contact

• To modify attitudes• To create an image• To position a product• To encourage brand switching• To improve position in the

market• To enlarge the market• To pull the product through the

channels• To push the product through the

channels

Personal selling vs advertising % ofPromotionalEffort

Complex / Expensive GoodsSimple / Inexpensive Goods

Relative importance of the two main elements in the promotional mix

PersonalSelling

Advertising

Mission - Advertising and Promotion

Measure - Advertising and Promotion

Money - Determining the budget

The advertising budget will be set in terms of one of:• What can be afforded• A given % of sales• Comparison with rivals• Objective and task- whatever is needed to achieve

objectives

Media - Factors in the choice of media

• Marketing mix• Relative Cost • Target audience• Impact of the media• Reach and selectivity of the

media• Competition• Legal constraints

• Permanence of the media• The nature of the product• Size and spread of the market • Advertising budget• The message to be conveyed

Advertising/Promotion Segmentation/Positioning

What is the purpose of this ad and who is the target?

Advertising ROI

What competitive benefit will be promised?

Advertising ROI

Benefits must be Promised and Supported

Relevance

our beer is brewed in Belgium …..

Must tell the beer drinker

why that matters

Originality

Impact

What personalitywill distinguish thebrand?

Consistency of traits

Predictability different from and better than ….

Television • Advantages

• Large audience

• Low cost per exposure

• High impact- colour, sound and movement

• Can target specific groups

• Disadvantages

• Very high overall cost

• Limited prime time space

• Short-lived

• May not be watched- visual wallpaper

• Proliferation of channels reduces audience

• Conveys only a limited message

Magazines

Advantages• Useful for targeting specific

groups• Good reproduction- high quality

gloss images• Long life-read at leisure• Can be linked to features• All consumer interests catered

for

Disadvantages• Can be expensive• Long lead time• Some magazines are only

published monthly • Moderate impact• Slow impact due to long life• Magazines with limited

readership are not suitable for mass marketing

Advertising on the Internet

• Paid-for search inclusion (e.g. Google Adwords)• Company website.• Banner ads - on line adverts on relevant website.• Link exchange- mutual exchange of links between

web sites or similar or complementary interest.• Search engine/directory listing.• Ezine/email sponsorship- on line magazines

delivered to subscribers via email.

Advertising and Promotion

Advertising and Promotion

Internet advertising is rapidlyreplacing some traditional ad forms

Radio • Advantages• Relatively inexpensive• Can target specific segment• Relatively mobile• Local

• Disadvantages• Limited impact• No vision• Short life• Listener’s attention limited• Audio wallpaper• Mainly local rather than national

Newspapers

Advantages• Widely read• Can target specific segments• Frequent publication• Short lead time• Inexpensive compared to

television• Local, regional and national

papers available• Colour printing adds to impact

Disadvantages• Short life• Low impact• May get lost in the rest of the

paper• Not every group reads a paper• High costs especially for

national newspaper

Cinema

Advantages• High impact• Captive audience• Can be specifically targeted• Local audience• Visual, sound, movement

Disadvantages• Limited audience• Mainly young audience• Short lived message• May only be seen once

Outdoor (Billboards)

Advantages• Repeatedly seen • 24/7 coverage • Target particular area• May encourage impulse buying

if close to shops• Local media

Disadvantages• Message must be short and

simple• Cannot target socio economic

groups• Rarely attract full attention• Short lived• May be seen as traffic hazard

• Difficult to measure effectiveness

Advertising and Promotion

Advertising and Promotion

Frequency is better than reach

Personal Selling

Selling and the promotional mix

• Personal selling is one element of the promotional mix.

• In business to consumer markets (B2C) personal selling and advertising are the main elements of the mix.

• Personal selling becomes more important when– The product is more complex– The product is more expensive– The product is bought infrequently– The customers is another business i.e. B2B markets

The role of the sales representative

• To gather information about customer wants

• To communicate information especially on the advantages of the product to the customer

• To prospect-look for new opportunities. Prospecting is concerned with locating potential

customers

• To display and demonstrate the product

• To advise customers

• To advise on stock levels

• To progress orders

• To build goodwill

• To deal with complaints

• To close the sale - i.e. to secure a sale

• To provide after -sales service

• To collect orders from customers

• In some cases, to make deliveries

The essence of personal selling

• The presentation of products and associated

persuasive communication to potential clients

• Involves two way, persuasive communication

• The aim is to match customer needs with the

goods/services on offer

• Ultimate objective: to make a sale

B2C transactions where personal selling is….

• Very important• Motor vehicles• Designer kitchens• Double glazed windows• Security systems• Conservatories • Shopping and speciality goods

• Unimportant• Food• Grocery • Clothing • CDs/DVDs• Books • i.e. Convenience goods

The promotional mix

Advertising• Ambient advertising• Press advertising• Radio advertising• TV advertising• Outdoor advertising• Transport advertising• Press releases• Corporate identity• Branding

• Public relations• Sponsorship• Sales promotions• Personal selling• Database marketing• Telemarketing• Internet marketing• Off the screen sales• Exhibitions and trade fairs

Consumer promotions (Pull Strategies)

• Promotions aimed at the consumers

• Examples:– Price reduction

– Coupons

– Vouchers

– Competition

– Free gifts

• Premium offers• Trade-in offers• Stamps• Events • Displays• BOGOF

Advertising and Promotion - Consumer

Trade promotions (Push Strategies)

• Promotions aimed at intermediaries

• The purpose is to encourage intermediaries to stock the product

• Examples– Loyalty bonuses– Sale or return– Range bonuses– SPIFFS for Salespeople

• Credit• Delayed invoicing• New product offers• Competitions• Trade in offers• Free services• Training• Reciprocal buying

Advertising and Promotion - Trade

The scope of PR

• Promoting products and services through media

publicity.

• Enhancing public awareness of the company.

• Projecting the company’s mission and philosophy.

• Portrayal of the company as a good corporate citizen.

• Protecting the company’s reputation.

• Projecting the organization as a source of opportunities.

• Obtaining favourable comment in the media.