INTEGRATED MARKETING COMMUNICATIONS

IMC
Coordination of all promotional activities to produce a unified, customer- focused > promotional message.

>

OBJECTIVES OF PROMOTION
3

PROVIDE INFORMATION
Goal is informing the market about the availability of a product. >
Inform about time, place and other pertinent info Print, advertising AND high-tech low cost freebies to inform

Increase demand

>
May increase primary demand, or desire for a particular product category.

>

Increase demand contd

May increase selective demand, or desire for a specific brand. >

Differentiate the product

Differentiation allows firms more control over marketing variables such as price. >

Accentuate the product value

Greater value helps justify a higher price in the marketplace.
Promotional messages must build brand image and equity while delivering a call to action Marketers advise staying away from these wordsquality, value, service, caring, and integritybecause they are overused and vague

>

10

STABILIZE SALES
Can help make demand more consistent throughout the year. >

ELEMENTS OF PROMOTION MIX

11

12

Promotion mix
Subset of the marketing mix in which marketers attempt to achieve the optimal blending of the elements of personal and nonpersonal selling to achieve promotional objectives.

>

13

PERSONAL selling
refers to a sellers promotional presentation conducted on a person-toperson basis with a buyer Its the oldest form of promotion

>

14

NON PERSONAL SELLING

advertising

Any paid, nonpersonal communication through various media about a business firm, not-for-profit organization, product, or idea by a sponsor identified in a message that is intended to inform, persuade, or remind members of a particular audience.
Primarily involves mass media but also includes electronic and computerized forms of promotion.

>

15

Types of advertising
Product advertising Nonpersonal selling of a particular good or service. >
Institutional advertising Promotion of a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographic location, or government agency.

Objectives of advertising
Informative advertising Promotion that seeks to
develop initial demand for a good, service, organization, person, place, idea, or cause.

Persuasive advertising Promotion that attempts

to increase demand for an existing good, service, organization, person, place, idea, or cause.

>

Reminder advertising Advertising that reinforces

previous promotional activity by keeping the name of a good, service, organization, person, place, idea, or cause before the public

Advertising strategies

>

Comparative Advertising Advertising strategy that emphasizes

messages with direct or indirect promotional comparisons between competing brands.

>

Market leaders seldom acknowledge

competing brands.

Celebrity Testimonials
Use of celebrity spokespeople for products. Recognition since it standout in clutter

>

Appeal across cultures

Confusion if celebrity endorses too many

Can build brand equity but can also hurt brand if hurt by scandal.

Retail Advertising
Includes all advertising by retail stores that sell goods or services directly to the consuming public. Customers respond with suspicion to retail price advertising. The word sale is often the centerpiece of retail advertising.

>

Cooperative advertising Strategy in which a retailer shares advertising costs with a manufacturer or wholesaler.

Interactive Advertising
Involves two-way promotional messages transmitted through communication channels that induce message recipients to participate actively in the promotional effort. Changes balance between marketers and consumers Resembles personal selling.

>

Advertising Messages
Advertising Campaign - Series of different but related ads that use a single theme and appear in different media within a specified time period.

>

Messages Advertising Appeals

FEAR
Imply or state that incorrect buying decisions could lead to bad consequences. Example: Pharmaceutical companies use of disease-state awareness advertising. Can backfire if consumers find fear ads too strong or not credible.

>

>
24

Messages Advertising Appeals

HUMOR
Seeks to create positive mood related to good or service. Can improve audience awareness and recall.

>

Some advertisers believe humor distracts from brand and product features.

>
26

Messages Advertising Appeals

SEX
Attention-getting, but boosts recall only if appeal is appropriate to the type of product.

>

Developing and Preparing ADs

All ads should:
Gain attention and interestmust be done in a productive way such as instilling recall Inform and/or persuadethough an ad cannot actually close the sale Eventually lead to a purchase or other desired actionoften neglected in ads that fail to suggest how interested consumers can purchase the product

>

Developing and Preparing ADs

Four major elements of a print ad:
Headlineshould grab interest and attention, along with illustrations Illustrationsphotographs, drawing, artwork Body copyinforms, persuades, and stimulates buying action Signaturenames the sponsoring organization, may include company name and logo as well as address, phone, web address, slogan, trademark, or product photo

>

Illustration

Headline

Body Copy

SIgnature

>

Media Selection
Several steps are seen in selecting media:
Research identifies the ads target market to determine its size and characteristics Target characteristics are matched with the media best able to reach that particular audience The goal is to achieve adequate media coverage without advertising beyond the limits of the potential market Finally, cost comparisons are made between alternative media types

>

Television
can reach local and national markets Virtual ads, a newer trend, are banner-type logos and brief messages superimposed onto coverage of sports or other events Streaming headlines are text banners run by news stations, paid for by corporate sponsors whose names and logos also appear The abbreviated spot, another new trend, is a very brief ad (15 to 30 seconds) that costs less to make, uses less paid air time, and is too quick for most viewers to click off

>

>

Television
Single-advertiser spots, or ad takeovers, are longer commercials that act to block competitors from buying time on the same show Cable TV Cable TV offers access to more narrowly defined target audiences than other broadcasting media can provide, referred to as narrowcasting

>

TV Advertising
Advantages Powerful impact Mass coverage Repetition of
messages Flexibility Prestige

Disadvantages of

Loss of control of the

promotional message to the telecaster, which can lead to loss of impact High costs

>

Lack of selectivity

Some public distrust

because specific shows may not reach consumers in a target market Certain types of products are not allowed

Radio
Consumers with little time use radio for immediate information and instant entertainment

>

RADIO
Advantages of radio:
Can reach a local
audience, and increasingly a national as well as global audience People in cars represent a captive audience The variety of stations allow advertisers to easily target audiences and tailor messages Low costs Flexibility Widespread availability of radios Mobility

Disadvantages of
radio:

Fragmentation, highly
segmented audiences The temporary nature of messages

>

Newspapers
Newspapers carry classified ads to add to their revenues

>

Newspaper
Advantages

Flexibility Community prestige Intensive coverage for

ads Ads can be clipped and saved Consumer reliance for primary source of advertising information

Disadvantages

Short life span Hasty reading Relatively poor

reproduction quality

>

Magazines
Advantages
>

Selectivity in reaching
precise target markets Quality reproduction Long life Prestige Extra services offered by many publications

Disadvantages

They lack the flexibility

of newspapers, radio, and TV For consumers, one issue is considerably more expensive than a newspaper

Outdoor advertising
oldest and simplest media business around It consists of billboards, painted bulletins, electronic displays, and transit advertising

>

Outdoor Advertising
Advantages of outdoor
advertising:

Disadvantages of
outdoor advertising:

Quickly and immediately

communicates a message Uses simple ideas Offers strong selling points, often through humor Repeats exposure to a message Offers strong promotion for locally available products Effective in high-traffic areas

Subject to clutter,

environmental concerns Brevity of exposure, limited time to view Distraction to drivers, safety concerns Consumer resistance, aesthetic concerns Government regulations

>

COST OF ADVERTISING PRINT (NEWSPAPER)

43

>

 Top 3 National Newspapers Basic Information

Rate/ColCm Title Phil Daily Inquirer Manila Bulletin Philippine Star Circulation Page Size M-Sat 330.00 315.00 330.00 Sun 380.00 370.00 380.00 270,375 9cols x 53cms 262,809 9cols x 53cms 245,520 9cols x 52cms
Title Phil Daily Inquirer Manila Bulletin Philippine Star

Color Surcharges +1C 30% 30% 30% +2C 60% 60% 50% +3C 80% 80% 80%

Position Surcharges 20% pages 3,5,7, back & front pages 30% pages 2,3,4,5,6,7,9, front & back, centerspread 15% pages 3,5,7, back & front pages
Rate/ 4color Position FPBW 157,410.00 181,260.00 150,255.00 176,490.00 154,440.00 177,840.00 FPFC 283,338.00 326,268.00 270,459.00 317,682.00 277,992.00 320,112.00 FPFC Back Page 314,820.00 362,520.00 315,535.50 370,629.00 301,158.00 346,788.00 44

>
Title Phil Daily Inquirer Manila Bulletin Philippine Star

Page Size 9cols x 53cms

Issue M-Sat Sun

Col Cm 330.00 380.00 315.00 370.00 330.00 380.00

Surcharge Surcharge 80% 80% 80% 80% 80% 80% 20% 20% 30% 30% 15% 15%

9cols x 53cms

M-Sat Sun

9cols x 52cms

M-Sat Sun

COST OF ADVERTISING PRINT (MAGAZINE)

45

>

COST OF ADVERTISING TV
46

>

>
47

>
48

COST OF ADVERTISING RADIO

49

>

>
50

COST OF ADVERTISING OUTDOOR

NLEX - 135,000.00 SLEX - 165,000.00 CAVITE 50,000.00

>

52

NON PERSONAL SELLING

product placement

Form of nonpersonal selling in which the marketer pays a motion picture or television program owner a fee to display his or her product prominently in the film or show.
Also includes placement in video games.

>

53

>

COST PHP 50,000 (SOLAR NEWS)

54

NON PERSONAL SELLING

sales promotion

Marketing activities other than personal selling, advertising, guerrilla marketing, and public relations that stimulate consumer purchasing and dealer effectiveness.
Includes displays, trade shows, coupons, contests, samples, premiums, product demonstrations, and various nonrecurring, irregular selling efforts. Trade promotionoffering free merchandise and other incentives to encourage marketing intermediaries to sell more of certain items or product lines.

>

Sales Promotion
Marketing activities other than personal selling, advertising, and publicity that enhance consumer purchasing and dealer effectiveness. Integrated into overall marketing plan.

>

Promotions are likely to stress price advantages, giveaways, or special offers. Goal is speeding the sales process and increasing sales volume.

Produce best results when combined with other marketing activities, such as advertising.
Cannot overcome poor brand images, product deficiencies, or poor training for salespeople.

CONSUMER-ORIENTED SALES PROMOTIONS

Goals:
Encourage repurchases by rewarding current users.

>

Boost sales of complementary products.

Increase impulse purchases.

CONSUMER-ORIENTED SALES PROMOTIONS

Coupons and Refunds

Couponsmost widely used form of sales promotion. Refunds or rebateshelp packagedgoods companies increase purchase rates, promote multiple purchases, and reward product users.

>

CONSUMER-ORIENTED SALES PROMOTIONS

Samples, Bonus Packs, and Premiums
A try it, youll like it approach.
Samplingfree distribution of product to obtain future sales.
Higher response rate than other forms of promotion. Good for promoting new or unusual products. Relatively expensive form of promotion.

>

Bonus packspecially packaged item that gives the purchaser a larger quantity at the regular price. Premiumsitems given free or at reduced cost with purchases of other products.
Effective at getting consumers to try new products.

CONSUMER-ORIENTED SALES PROMOTIONS

Contests and Sweepstakes
Contestsrequire entrants to complete a task such as solving a puzzle or answering questions in a trivia quiz.
Sweepstakeschoose winners by chance; no product purchase is necessary.

>

TRADE ORIENTED PROMOTIONS

Sales promotion that appeals to marketing intermediaries rather than to final consumers.

>

Trade Allowances
Special financial incentives offered to wholesalers and retailers that purchase or promote specific products. May give a discount on goods or include offinvoice allowances.

TRADE ORIENTED PROMOTIONS

Point-of-Purchase Advertising
Display or other promotion located near the site of the actual buying decision.
Electronic kiosks and transforming traditional POP displays.

>

TRADE ORIENTED PROMOTIONS

Trade Shows
Often organized by industry trade associations.
Vendors who serve the industries display and demonstrate their products for members.

>

Dealer Incentives, Contests, and Training Programs

Dealer incentives and contests reward retailers who increase sales. Specialized training helps salespeople explain features, competitive advantages, and other information to consumers.

63

NON PERSONAL SELLING

direct marketing

Direct communications, other than personal sales contacts, or between buyer and seller, designed to generate a response in the form of an order (direct purchase), a request for further information (lead generation), or a visit to a place of business to purchase specific products (traffic generation.
Includes direct mail, telemarketing, directresponse advertising, infomercials, and other strategies

>

64

NON PERSONAL SELLING

PR and PUBLICITY

Firms communications and relationships with its various publics.

Publics include publics include customers, suppliers, stockholders, employees, the government, and the general public.

>

Publicitynonpersonal stimulation of demand unpaid placement of news about it or through a favorable presentation of it on the radio or television

65

NON PERSONAL SELLING

PR and BPUBLICITY contd

Bad publicity can damage a companys reputation and diminish brand equity. >
Organizations try to capitalize on good publicity and counteract negative publicity

66

NON PERSONAL SELLING

guerilla marketing

Unconventional, innovative, and low-cost marketing techniques designed to get consumers attention in unusual ways. Buzz marketing through campus ambassadors who create a buzz about products with their classmates.
Viral marketing

>

67

>

68

LET US SEE HOW IMC WORKS

>

SPONSORSHIPS

69

70

SPONSORSHIPS
Relationship in which an organization provides funds or in-kind resources to an event or activity in exchange for a direct association with that event or activity.
Same image and audience Ancient Greece

>

SPORTS + cultural festivals or exhibits, charitable events, or cause-related efforts

71

Sponsorship vs. advertising

Nature of the message and audience reaction differs. >
Audiences often view sponsorship positively than advertising. Ambush marketingfirm that is not an official sponsor tries to link itself to an event, which can be illegal.

72

>

DIREC T MARKETING

73

74

Effectivefor every $1 spent, firms typically receive $11.49 in revenue. Helps increase store traffic. Opens large new international markets and promotes goals beyond creating product awareness. Beyond awareness
Persuade people to place an order, request more information, visit a store, call a toll-free number, or respond to an e-mail message. When successful, prompts consumers to take action Win new customers and build relationship with existing

>

75

Direct marketing com. channels

Direct mailings such as brochures and catalogs.
Telecommunications initiated by companies or customers. Television and radio through special offers, infomercials, or shopping channels. Internet via e-mail and electronic messaging. Print media such as newspapers and magazines.

>

Specialized channels such as electronic

76

Direct mail
Many forms, including sales letters, postcards, brochures, booklets, catalogs, house organs, DVDs, videotapes, and audiocassettes. Allows narrow targeting, intensive coverage, and other benefits.
Stand alone and does not compete on attention Per reader cost is high and many consumer view it as junk. Deception also happens

>

77

catalogs
Popular form of direct mail since late 1800s in U.S. >
Catalog sales reached $160 billion in a recent year. Companies adding online catalogs to complement print catalogs.

78

telemarketing
Most used form of direct marketing
Provides a high return on expenditures, an immediate response, and the opportunity for personalized two-way conversations. Outboundsales force uses only the telephone to contact customers. Inboundinitiated by customer, often one calling a toll-free number for more information or to make a purchase.

>

79

DIRECT MARKETING VIA BROADCAST CHANNELS Broadcast direct marketing can take three forms: TV ads, home shopping, and infomercials Brief direct-response TV ads run 30 to 90 seconds and include product descriptions and tollfree numbers; similar radio ads can be expensive and dont often reach listeners who can take down the information

>

80

DIRECT MARKETING VIA BROADCAST CHANNELS

Home shopping channels broadcast product information around the clock, encouraging shoppers to call their toll-free numbers or check their web sites Infomercials run 30 minutes or longer, with detailed information and demonstrations of specific products cable channels during late-night slots Low viewership

>

81

Electronic direct marketing channels

Includes Web advertising and e-mail notices. >
Online customer acquisition programs often cost less than traditional ones.

82

Other direct marketing channels

Print media and other traditional channels are critically important. >
Example: Magazine ads with toll free numbers that enhance inbound telemarketing campaigns.

Kiosks also provide an outlet for electronic sales.

DEVELOPING AN OPTIMAL PROMITIONAL MIX

83

84

Nature of the market

Markets target audience.
Personal selling can be highly effective if market has limited number of buyers.

>

Markets type of customer.

Example: Pharmaceutical companies use large sales forces to sell prescription drugs to physicians and use consumer advertising to promote their products to consumers.

85

Nature of the product

Highly standardized products usually depend less on personal selling. >
Consumer product sellers rely more on advertising than business product sellers.

86

Stage in the product lifecycle

Heavier emphasis on personal selling in introductory stages to acquaint marketing intermediaries and final consumers with product. Advertising becomes more important as product moves into growth and maturity greater competition Differentiation becomes more important as competitors enter the market.

>

87

price
Advertising dominates the promotional mixes for low-unit-value products due to the high per-contact cost of personal selling Sales calls are too expensive for marketing these low-priced items Buyers of high-priced items expect lots of well-presented information, so personal selling is more common for these goods

>

88

budget
TV ads and celebrity endorsements can be very expensive, with costs well beyond a budget Guerilla marketing

>

Budgeting for promotional strategy

89

90

B2B markets often allocate more to personal selling than advertising.

Reverse is usually true for consumer goods >

Marginal analysis (marginal cost=marginal revenue) the most effective spending strategy would increase promotional expenditures until each peso is matched by a peso of profit

Measuring the effectiveness of promotion

91

92

Direct sales results test.

Attempt to reveal impact on sales revenues of promotional spending.

>

Difficult to control outside variables.

Indirect evaluation.
Focus on quantifiable indicators of effectiveness. Difficulty relating these variables to sales.

93

Measuring online promotions

Firms often incorporate a direct response mechanism to measure effectiveness. Hits,
Two major ways of setting Internet advertising rates:
Cost per impressioncost relates to the number of people who view the ad. Cost per response (click-throughs)cost relates to the number of people who click the ad. Conversion ratenumber of Web site visitors who actually make a purchase.

>

Measuring effectiveness of promotion

Firms usually pay a cost per thousand (CPM) fee, based on cost to deliver the message to viewers, listeners, or readers Media researchassesses how well particular medium delivers message, where and when to place the message, and the size of the audience. Message researchtests consumer reactions to an advertisements creative message through pretesting and posttesting.

>

Pretesting
Assessing an advertisements likely effectiveness before it is completed. Use focus groups, consumer testing, and mechanical devices to evaluate possible advertising. Posttesting Assessing advertisements effectiveness after it has appeared.

>

Useful for adjusting current advertising programs and planning future ones.
Specific tests can be used to analyze consumer recognition, recall, and inquiries to measure and effectiveness.

Split runs allow advertisers to test the relative effectiveness of two ads.

Measuring effectiveness of promotion - PR

Most expensive and effective method: measuring whether target audience heard message and whether it had intended influence. Counting media placements, conducting public opinion polls.

>

Conduct focus groups, interview opinion leaders, before-and-after polls.

98

How About TV ad?

Cost Efficiency Measurements Cost Per Rating Point (CPRP or CRP): Measurement in money of a mediums cost to deliver one (1) rating point or one percent (1%) of audience. Formula: CPRP =
Cost of Medium/Program Rating

 Cost Per Thousand (CPM): Measurement in money of the price required to deliver a thousand audience units such as listeners, viewers or readers. Formula: CPM = Price of Medium x 1,000 Delivered Audience
Program Title Channel AMR % Cost/30" CPRP 6,767.86 6,911.85 7,040.25 7,095.71 6,962.71 7,363.01 7,181.82 6,993.01 7,607.41 8,548.87 7,575.76 8,000.00 8,000.00 9,071.73 9,008.77 9,008.77 5,045.45 9,132.42 9,174.31 4,652.38 Rank 3 4 7 8 5 10 9 6 12 15 11 13-14 13-14 18 16-17 16-17 2 19 20 1

IMPOSTORA GMA 33.6 227,400 MARIMAR (LOCAL) GMA 32.9 227,400 MGA MATA NI ANGHELITA GMA 32.3 227,400 24 ORAS GMA 30.3 215,000 KAPUSO MO JESSICA SOHO GMA 29.5 205,400 BITOY'S FUNNIEST VIDEOS YARI KA! GMA 29.2 215,000 TOK! TOK! TOK! ISANG MILYON PASOK GMA 28.6 205,400 KOKEY (TV-SERIES) ABS-CBN 28.6 200,000 MEL & JOEY GMA 27 205,400 JUMONG GMA 26.6 227,400 PANGARAP NA BITUIN ABS-CBN 26.4 200,000 TV PATROL WORLD ABS-CBN 25 200,000 YSABELLA ABS-CBN 25 200,000 IMBESTIGADOR GMA 23.7 215,000 CELEBRITY DUETS GMA 22.8 205,400 KAP'S AMAZING STORIES FEAT. NATIONAL GMA GEOGRAPHIC MOST 22.8 AMAZING.. 205,400 EAT BULAGA GMA 22 111,000 KAPAMILYA DEAL OR NO DEAL ABS-CBN 21.9 200,000 1 VS 100 ABS-CBN 21.8 200,000 SINE NOVELA - PATI BA PINTIG NG PUSO? GMA 21 97,700