1

Chapter 9Integrating Marketing

Communications 1: Mass Communications

Techniques

2

Key Promotional Mix Tools

AdvertisingAdvertising

DirectMarketing

DirectMarketing

PublicityPublicity Personal Selling

Personal Selling

Digital Marketing

Digital Marketing

SalesPromotion

SalesPromotion

SponsorshipSponsorship

3

Integrated Marketing Communications (IMC)

Choice of promotional blend depends on:

Resource availability and the cost of promotional toolsMarket size and concentration Customer information needsProduct characteristicsPush versus pull strategies

4

Apple Mac v PC

The famous campaign contrasting

the PC owner on the left with the

Apple Mac owner on the right

illustrates the power of marketing

communications to transfer

meanings

5

The Communication Process

Encodedmessage

Decodedmessage

Transmission

Noise

Noise

Strong and weak theories of how advertising works

Desire(or conviction)

Interest

Awareness

Action

Reinforcement

Trial

Awareness

Strong (AIDA) Weak (ATR)

7

Diesel

The Diesel clothing

‘Be Stupid’ campaign

generated a significant

amount of buzz due to

its clever graphics and

strong headlines

8

Developing Advertising Strategy

Identify and understand target audienceIdentify and understand target audience

Marketing strategy

Define advertising objectives

Set the advertising budget

Message decisions Media decisions

Execute campaign

Evaluate advertising effectiveness

Setting the Advertising Budget

Percentageof Sales

Affordability MatchingCompetition

Objective & Task

Stimulate

Sales

10

Advertising Media Spend

Advertising expenditure by media – Western Europe,

2011 Source GroupM

Message decisionsCustomer convergence

consumers across different countries share common experiences, needs and motivations

Advertising platform foundation of the advertising message, the basic selling

proposition it should be: important to the target audience communicate competitive advantage

Advertising message translates the platform into words, symbols and

illustrations which are attractive and meaningful to the target audience

12

Ethical Issues in AdvertisingAdvertising in the UK should be legal, decent, honest, and truthful. The advertising Standards Authority administers the British advertising codes of practice. Sometimes these codes are broken using some of the following practices:

Misleading advertising can take the form of exaggerated claims and conceal facts.

Advertising may deceive by omitting important facts from the message.

Media Class OptionsPress

•National•Regional

Magazines•Fashion•Technical•Trade

Television

Radio

Cinema Posters

Defining Opportunities to See (OTS)?Television

Presence in the room with the set switched on at turn of clock minute to relevant channel, providing presence in the room with the set on is for at least 15 consecutive seconds

Press and MagazinesRead or looked at any issue (for at least two minutes) within the

publication period (e.g. for weeklies within the last 7 days)

PostersTraffic past site including pedestrians

CinemaActual cinema admissions

The structure of a large advertising agency

Managing director

Accountmanagement

Productionand trafficCreative Media Planning

Accountexecutives

Accountdirectors

Manageaccount

Develop concepts and create copy and artwork

Decide upon media

and negotiate

price

Make the ads and get the right ad to the right

media at the right time

Commission, conduct and

interpret marketing

research for use in

campaign planning

Artdirector

Copywriters

Buyers

Planners

Trafficmanager

Productionmanager

Researchers

Strategists

Layout

16

Sales PromotionThe growth of sales promotion is attributed to:

Increased impulse purchasing (at the point of purchace)

The rising cost of advertising and advertising clutter

Shortening time horizons (shortening life cycles)

Competitor activities (general practice in certain businesses)

Measurability (effect is more direct and usually, short term)

17

Sales Promotion StrategyObjectives for the promotionshort term sales increase, reducing inventories,

meet budgets prior to the end of the financial year

Encourage trial: Home sampling and home couponing of a brandEncourage repeat purchasing of a brand over a period of time

Gain distribution and shelf space

Objectives for the promotionshort term sales increase, reducing inventories,

meet budgets prior to the end of the financial year

Encourage trial: Home sampling and home couponing of a brandEncourage repeat purchasing of a brand over a period of time

Gain distribution and shelf space

Decisions on which techniques are most suitableConsumer & Trade promotion (see Fig 9.4)

Decisions on which techniques are most suitableConsumer & Trade promotion (see Fig 9.4)

Evaluation of the effectiveness of the promotionpre-testing and post-testing approaches

Group discussions, Hall tests, Experimentation

Evaluation of the effectiveness of the promotionpre-testing and post-testing approaches

Group discussions, Hall tests, Experimentation

18

Consumer and Trade Promotions

Money offappealing to existing customers

Free samples13 for the price of 12

encourage trialNew brand or brand extentions

Prize promotionsspecial offers

Loyalty cardsBensin kort

Free goodsAllowancesin store demos

sum of money in return

Bonus packs

Premiumsfree or at low cost

encouraging bulk purchasingmaintaining share

Couponsat homes or in magazines

Price discounts

Competitionsextra shelf space

providing prices for a distributor’s sales forcesCommission offers to sales forces

Consumerpromotions

Tradepromotions

19

Cosmopolitan

Free in-pack gifts have been used by

many magazine publishers in a bid

to counter declining sales

20

Public Relations & PublicityPublic Relations (PR) is concerned with managing the interactions between a company and its publics, e.g., consumers, suppliers, the local community, employees, shareholders, pressure groups.

1. The message has high credibility2. No direct media cost3. No control over publication

There has been a significant growth in PR. Key reasons are recognition by marketing teams of the power and value of PR, increased advertising costs, and improved understanding of the role of PR.

21

An Organization and its Publics

•Television•Press•Radio

Media

•Customers•Distribution•Suppliers

Commercial

•Local communities•Pressure groups•Opinion leaders•General public

Public

•Parliament•Civil service•Local authorities

Government

•Shareholders•Stockbrokers•Fund managers•Banks

Finance

•Staff•Trade union

representatives

Employees

Organisation

22Potentially Newsworthy Items

•New products•Research breakthrough • potentially new products•Large orders/contracts•Sponsorship•Price changes•Service changes•New logos•Export success

•Training awards•Winners of company contests•Promotions/new appointments•Success stories•Visits by famous people•Reports of interviews

•Conferences/seminars/exhibitions•Anniversaries of significant events

•Productivity achievements•Employment changes•Capital investments

•Financial statements•Acquisitions•Sales/profit achievements

Marketing issues:

Production issues:

Personnel issues:

General issues:

Financial issues:

23

SponsorshipA business relationship between a provider of funds, resources or services and an individual, event or organization which offers in return some rights and association that may be used for commercial advantage.

The five key principles of sponsorship are:

Gaining publicity

Creating entertainment opportunities

Fostering favourable brand and company associations

Improving community relations

Creating promotional opportunities

24

Specsavers

Specsavers has cleverly sponsored referees and has also been quick to build advertising

around major sporting controversies

Other Promotional Techniques

• Exhibitions

• Product Placement

• Ambient Advertising – På bussar och flygplan, väskor mm

• Guerrilla Marketing – T ex One Direction

26Chapter SummaryThe promotional mix consists of 7 elements, including advertising, sales promotions, direct and Internet marketing.Adopting an integrated approach toward the use of marketing communication enables firms to deliver a clear, consistent, credible and competitive message to the market place. It is important to adopt a systematic approach towards communication planning.Advertising is a highly visible component of the promotional mix. Sales promotions are a powerful technique for giving a short-term boost to sales. Publicity plays a very important role and has more credibility than other communication techniques say advertising.Sponsorship can generate publicity and foster favourable brand and company associations.Other important mass communications techniques include exhibitions, product placement, ambient marketing and guerrilla marketing.