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Chapter 1 Integrated Marketing Communications

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Page 1: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Chapter 1

Integrated Marketing Communications

Page 2: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

United States Army

“An Army of One”

To "Be all you can be" in the Army

now means being "An Army

of one.“

10-Jan-2001

www.goarmy.com

Page 3: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Last Class

Introduction!!!

Page 4: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“
Page 5: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Objectives To review the various elements of the promotional mix

To introduce the concept of integrated marketing

communications

To summarize the IMC planning process and examine the

steps in a marketing communications program

To examine how various elements must be coordinated to

communicate effectively with the IMC perspective

Page 6: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Marketing Defined

The process of planning and executing

the ___________, _________, ________,

and __________ of _____, _____, and

_______ to create ________ that satisfy

individual and organizational objectives.

American Marketing Association

Page 7: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Marketing Defined

The process of planning and executing

the conception, pricing, promotion,

and distribution of _____, _____, and

_______ to create ________ that satisfy

individual and organizational objectives.

American Marketing Association

Page 8: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Marketing Defined

The process of planning and executing

the conception, pricing, promotion,

and distribution of ideas, goods and

services to create ________ that satisfy

individual and organizational objectives.

American Marketing Association

Page 9: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Marketing Defined

The process of planning and executing

the conception, pricing, promotion,

and distribution of ideas, goods and

services to create exchanges that satisfy

individual and organizational objectives.

American Marketing Association

Page 10: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

The Marketing & Promotional Mixes

Product or service Pricing policy Distribution method (Place) Marketing communications mix (Promotion)

Advertising Direct marketing Sales promotion Publicity/public relations Personal selling

Page 11: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Marketing plan : is a written document that describes the overall marketing strategy and programs developed for an organization, product line, or brand.

Page 12: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

AdvertisingAny paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.

Page 13: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Advertising

Marketers use advertising to: create brand image strike a responsive chord with consumers

when differentiation using other elements of the marketing mix is difficult

create symbolic appeals for a company or brand

take advantage of the fact that advertising is a very cost-effective method of reaching a large audience

Page 14: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Advantages of Advertising: cost-effective way for communicating, with large

audiences

ability to create images and symbolic appeals and for differentiating similar products and services

ability to strike audience through creative advertising

ability to control the message (what, when and how something is said and where it is delivered.

Page 15: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Disadvantages of Advertising:

the cost of producing and placing ads can be very high, particularly television commercials,

it can be difficult to determine the effectiveness of advertising

there are credibility and image problems associated with advertising

Page 16: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Spending in $Billions [United States]

0

50

100

150

200

250

1980 2000

Advertising

SalesPromotion

Page 17: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Show Net Price*** Change

1 Friends NBC $473,500 3.9%

2 Will & Grace NBC $414,500 10.1%

3 ER NBC $404,814 -7.7%

4 Survivor CBS $390,367 -6.8%

5 Scrubs NBC $360,950 22.5%

6 Coupling NBC $316,400 *

7 CSI CBS $310,324 10.8%

8 The Simpsons Fox $296,440 19.4%

9 24 Fox $292,200 58.3%

10 Mon. Football ABC $272,867 -8.4%

The "Change" field represents the difference from last season.* 'Coupling' is a new show. There is no previous season comparison number.***Price is the cost of placing a 30 second ad in the particular show

Page 18: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Rakamlarla reklam...

Türkiye'de reklam sektörünün GSYH'ye oranı binde 5. Bu oran bazı gelişmiş ülkelerde yüzde 2

Türkiye'de 24'ü ulusal, 76'sı kablo, diğerleri bölgesel ve yerel olmak üzere 340 televizyon kanalı var

34 ulusal gazate yayımlanırken, düzenli reklam alan 250 dergi bulunuyor

2006'da 14 bin firma 17 bin marka için reklam verdi Tam hizmet veren reklam ajansı sayısı 100'ü

buluyor

Page 19: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

In 2005 in Turkey

One of the indicators of improvement in advertising sector is number of new ads of firms and brands other one is the number of ads in total.Last year 717 brands advertised for the first time.In total 13,810,636 second of ads were runTV shows were taking the lead.

National TV shows in total had 10,335,659 seconds of ads.

Foreign TV shows in total had 5,726,725 seconds of ads.

Number 1 was (with syndications) "Çocuklar Duymasın“ It was aired 382 times and had 515,073 seconds of ads.

Number 2 was "En Son Babalar Duyar". It was aired 366 times and had 469,754 seconds of ads.

Page 20: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

By 2007 February

The most watched TV shows Binbir Gece (Kanal D) Avrupa Yakası (atv) Acı Hayat (Show TV) Sıla (atv) Arka Sokaklar (Kanal D) Yaprak Dökümü (Kanal D) Sağır Oda (Kanal D) Cennet Mahallesi (Show TV) Candan Öte (Star) Karagümrük Yanıyor (Star) Ihlamurlar Altında (Kanal D)

What are the most watched TV shows?

Page 21: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Show TV reklam fiyatlari

Page 22: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

What are the TV shows that get the most # of ad placements?

TV Chn Show #of Ads TV Chn Show #of Ads StvSirlar Dünyas? 908 Kanal 7 Kalp Gözü 827StvBe?inci Boyut 807 Show TV Aci Hayat 741StvBüyük Bulu?ma 718 Kanal 7 Eksi 688AtvAvrupa Yakas? 653 Star. Köprü 640StvYagmurdan Sonra. 637 Atv Sila 626StvYeseren Düsler. 586 Show TV Ezo Gelin 563AtvSöhret. 547 Show TV Emret Komutan 532AtvSelena 513 Show TV Yanik Koza 509Star Iki Aile 507 Show TV Cennet Mahalle 504

Page 23: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

27 AUGUST-02 SEPTEMBER 2007Most Advertised 10 Brands

No Brand # of ads Brand Duration(sn) 1 Ülker İçim 884 Kosla 39.342 2 Turkcell Süper Ligi 851 Turkcell 30.092 3 Clear 837 Ülker İçim 29.042 4 Beko 825 Turkcell Süper Ligi 25.310 5 Denizbank 785 THY 25.200 6 Bellona 769 İş Bankası 24.080 7 Domestos 754 Clear 23.454 8 İstikbal 736 Ülker Colaturka 19.727 9 Elidor 729 Dove 19.556 10 Turkcell 674 Beko 18.353

Page 24: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Most Advertised Industries

No Industry # of Ads Industry Duration(sn) 1 Gıda 10.818 Gıda 243.562 2 Finans 4.643 Finans 122.216 3 Kozmetik 4.505 Ev Temizlik 115.929 4 Ev Temizlik 4.270 Kozmetik 106.237 5 Kişisel Bakım 3.104 Kişisel Bakım 77.438 6 Tekstil / Deri 2.965 İletişim Tekno 75.898 7 İnşaat/Emlak 2.873 Yayıncılık 69.893 8 Yayıncılık 2.245 İnşaat/Emlak 67.511 9 İletişim Tekno 2.128 Otomotiv 51.637 10 Dayanıklı TM 2.122 Tekstil / Deri 44.049

Page 25: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

What about Newspapers

What are the newspapers with the most ad placements?

Hürriyet Zaman Sabah

Page 26: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Circulation??? 03-09 September 2007

Weekly Circulation Numbers Posta 648.997 Hürriyet 593.355 Zaman 523.202 Sabah 501.461 P.Fotomaç 262.655 Takvim 248.546 Fanatik 248.494 Vatan 212.654 Milliyet 210.323 Akşam 196.664 Güneş 160.486 Türkiye 149.423 Yeni Şafak 111.910 Bugün 101.124 Star 91.817 Sözcü 83.255 Cumhuriyet 77.424 E. Fotospor 67.859 A.Vakit 65.518 A.Şok 55.266 Yeni Çağ 53.574 Milli Gazete 51.283 Radikal 36.477 H.O.Tercüman 33.599

Page 27: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Classifications of Advertising

National advertising Retail/local advertising Advertising to increase demand

Primary demand for the product category Selective demand for a specific brand

Business & professional advertising Business-to-business advertising Professional advertising Trade advertising

Page 28: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Sales Promotion

Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales.

Page 29: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Advantages of Sales Promotion

provides extra incentive to consumer or middlemen

way of appealing to price sensitive consumer

effects can often be more directly measured than those of advertising

can be used as a way of building or reinforcing brand equity

Page 30: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

IMC and Branding

Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.

Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.

2003 Brand Value(Billions of Dollars)

1. Coca-Cola$70.5

2. Microsoft$65.1

3. IBM$51.8

4. GE $42.35. Intel

$31.16. Nokia

$29.47. Disney

$28.08. McDonald’s

$24.79. Marlboro

$22.210. Mercedes

$21.4

IMC plays a major role in the process of developing and sustaining brand identity and equity.

IMC plays a major role in the process of developing and sustaining brand identity and equity.

Page 31: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Intel’s Advertising Helps Build Brand Equity

Page 32: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Disadvantages of Sales Promotion

many companies are becoming too reliant on sales promotion and focusing too much attention on short-run marketing planning and performance

short-term sales gains are often

achieved at the expense of long-term brand equity     

Page 33: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Types of Sales Promotion

Customer-oriented

Trade-oriented

Page 34: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Public RelationsThe management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance. Tools used by public relations

Publicity Special publications Community activity participation Fund-raising Special event sponsorship Public affairs activities

Page 35: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

PublicityNon-personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. Publicity is NOT advertising. Advertising.

Paid, sponsor-identified, non personal (media) communications.

Publicity. Non-paid, unsponsored, non personal (media)

communications.

Page 36: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Publicity VehiclesNews releases: Single-page news stories sent

to mediaFeature articles: Larger manuscripts

Captioned photosPress conferencesSpecial events: Sponsorship of events, teams,

or programs of public value.

Page 37: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Advantages of Publicity

credibility of publicity is usually higher than other

low cost way of communicating often has news value and generates word‑of‑mouth discussion among

consumers

Page 38: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Disadvantages of Publicity

lack of control over what is said,

when, where and

how it is said

can be negative as well as

positive

Page 39: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Advertising Versus Publicity Advertising

_____, ___________, nonpersonal (media) communications.

Publicity ___________, __________,

nonpersonal (media) communications.

Page 40: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Advertising Versus Publicity Advertising

Paid , sponsor-identified, nonpersonal (media) communications.

Publicity Unpaid, unsponsored,

nonpersonal (media) communications.

Page 41: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Advertising Versus Publicity

FACTOR ADVERTISING PUBLICITYControl Great LittleCredibility Lower HigherReach Achievable UndeterminedFrequency Schedulable LowCost Specific UnspecifiedFlexibility High LowTiming Specifiable Tentative

Page 42: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Direct Marketing

Organizations communicate directly with target customers to generate a response and/or transaction.

Direct marketing methods. Direct mail. Cataloging. Telemarketing. Direct response ads. Internet sales.

Page 43: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Personal SellingA form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase to company’s product or service or act on an idea.

flexibility exists to tailor the message to the customers specific need or situation.

Page 44: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Advantages of Direct Marketing

changes in society- convenience Ability to be selective and target its

marketing communications to specific customer segments

messages can be customized effectiveness of direct-marketing efforts

are easier to assess than other forms of promotion

Page 45: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Disadvantages of Direct Marketing

consumers and businesses bombarded

with unsolicited mail and phone calls

which makes them less receptive to

direct-marketing

direct marketing has image problems

problems with clutter

Page 46: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Relationship Marketing

Marketing Focuses on EXCHANGE

nature of exchange what is needed for this process to occur including: two or more parties with

something of value to one another;

and a way for the parties to communicate with one another.

Page 47: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

________________

is the process of creating, maintaining and enhancing long-term relationships with individual customers as well as other stakeholders for mutual benefit.

Page 48: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Relationship Marketing

is the process of creating, maintaining and enhancing long-term relationships with individual customers as well as other stakeholders for mutual benefit.

Page 49: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Ford Motor Company

Ford’s Vision: To become the world's Ford’s Vision: To become the world's leading consumer company for leading consumer company for automotive products and servicesautomotive products and services

Page 50: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Integrated Marketing Communications

A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines -- for example, general advertising, direct response, sales promotion, and public relations -- and combines these disciplines TO PROVIDE

CLARITY, CONSISTENCY, and maximum COMMUNICATIONS IMPACT.

Page 51: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Integrated Marketing Communications

Coordinating the various promotional elements and other marketing activities that communicate with the firm’s customers.

Page 52: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Reasons for Growth of IMC Planning efficiency and effectiveness. Consumer adoption of technology and media. Innovative marketing practices. Customer’s point of view Relationship Marketing

Page 53: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Planning for IMC:Promotional Management

Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.

Considerations for developing the promotional mix include:

Type of product. Buyer’s decision process Stage of product life cycle Channels of distribution

Page 54: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Situation Analysis Internal analysis.

Assesses relevant areas involving the product/service offering and the firm itself.

Internal factors. Assessment of the firm’s promotional organization and

capabilities. Review of the firm’s previous promotional programs. Assessment of firm or brand image and implications for

promotion. Assessment of relative strengths and weaknesses of

product/service.

Page 55: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Situation Analysis External analysis.

Focuses on factors such as characteristics of a firms customers, market segments, environment and competitors.

External factors. Customer analysis. Competitive analysis. Environmental analysis.

Page 56: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Situation AnalysisInternal Factors

Assessment of the firm’s promotional organization and capabilities

Review of the firm’s previous promotional programs

Assessment of firm or brand image and implications for promotion

Assessment of relative strengths and weaknesses of product/service

External FactorsCustomer analysisCompetitive analysisEnvironmental analysis

Page 57: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

SUM UP

Various elements of the promotional mix

IMC planning process

Steps in a marketing communications

program

Coordination to communicate effectively

with the IMC perspective

Page 58: Chapter 1 Integrated Marketing Communications. United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“

Next Class

Understanding how firms organize advertising and IMC

Examining methods for selecting, compensating and evaluating Ad Agencies

Explaining the role of specialized marketing communications organizations

To do!!! Read Chapter 2