imc pr sp dm
TRANSCRIPT
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Advertising Personal Selling
Sales Promotion Public Relations Direct Marketing
Reaches large,geographically dispersedaudiences, often withhigh frequency
Low cost per exposure,though overall costs arehigh
Consumers perceiveadvertised goods as morelegitimate
Dramatizescompany/brand
Builds brand image; may
stimulate short-termsales
Impersonal; one-waycommunication
15 -1
PromotionPromotion
ToolsTools
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Advertising
PersonalSelling
Sales Promotion
Public Relations
Direct Marketing
Most effective tool forbuilding buyerspreferences, convictions,and actions
Personal interactionallows for feedback andadjustments
Relationship-oriented
Buyers are moreattentive
Sales force represents along-term commitment
Most expensive of thepromotional tools
15 -2
PromotionPromotionToolsTools
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Advertising
Personal Selling
SalesPromotion
Public Relations
Direct Marketing
May be targeted at thetrade or ultimateconsumer
Makes use of a variety offormats: premiums,coupons, contests, etc.
Attracts attention, offers
strong purchaseincentives, dramatizesoffers, boosts saggingsales
Stimulates quickresponse
Short-lived
Not effective at buildinglong-term brandpreferences
15 -3
PromotionPromotionToolsTools
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Advertising Personal Selling Sales
Promotion PublicRelations
DirectMarketing
Highly credible
Many forms: newsstories, news features,events andsponsorships, etc.
Reaches manyprospects missed via
other forms ofpromotion
Dramatizes companyor benefits
Often the most
underused element inthe promotional mix
15 -4
PromotionPromotion
ToolsTools
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Advertising
Personal Selling
SalesPromotion
Public Relations
DirectMarketing
( If IMC is referred)
Many forms:Telephone marketing,direct mail, onlinemarketing, etc.
Four distinctivecharacteristics:
Nonpublic
Immediate
Customized
Interactive
Well-suited to highlytargeted marketingefforts
15 -5
PromotionPromotionToolsTools
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Promotion Mix Strategies Push strategy: trade promotions and
personal selling efforts push theproduct through the distribution
channels.
Pull strategy:producers useadvertising and consumer sales
promotions to generate strongconsumer demand for products.
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Checklist: Integrating the PromotionMix Analyze trends (internal and external)
Audit communications spending
Identify all points of contact
Team up in communications planning Make all communication elements
compatible
Create performance measures Appoint an IMC manager
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Advertising and Sales Promotion Avoid false and deceptive advertising
Trade promotions can not favor certaincustomers over others
Use advertising to promote socially
responsible programs and actions
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Personal Selling
Salespeople must follow the rules offair competition
Three day cooling-off rule protectsultimate consumers from high
pressure tactics Business-to-business selling Bribery, industrial espionage, and
making false and disparaging statements
about a competitor are forbidden
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Building good relations with the companysvarious publics by obtaining favorablepublicity, building up a good corporateimage and handling or heading offunfavorable rumors, stories and events.
Major functions are: Press Relations
Product Publicity
Public Affairs
Lobbying Investor Relations
Development
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DefinitionPublic Relations in the management
function which evaluates public attitudes,identifies the policies and procedures of an
individual or an organization to with thepublic Definition cont.
interest, and executes a program of action
to earn public understanding andacceptance.
American Association of AdvertisingAgencies
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15 -13
panys Various Publicsncial Publics: Banks, Investment hernment Publics: Govt. Laws.ia Publics: Newspapers, Magazinesen-action Publics: Envt. Groups etl Publics: Neighborhood,unity organizations.eral Publics: Public Image of co.rnal Publics: employees and others.
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Chap. 15 Marketing 7e
Lamb Hair McDaniel2004 South-
Western/Thomson
14
Evaluates publicattitudes
Evaluates publicattitudes
Identifies issues ofpublic concern
Identifies issues ofpublic concern
Executes programsto gain publicacceptance
Executes programsto gain publicacceptance
The Role ofThe Role of
Public RelationsPublic Relations
The Role ofThe Role of
Public RelationsPublic Relations
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Chap. 15 Marketing 7e
Lamb Hair McDaniel2004 South-
Western/Thomson
15
Press RelationsPress RelationsPress RelationsPress Relations
Product PublicityProduct PublicityProduct PublicityProduct Publicity
Corporate CommunicationCorporate CommunicationCorporate CommunicationCorporate Communication
Public AffairsPublic AffairsPublic AffairsPublic Affairs
LobbyingLobbyingLobbyingLobbying
Employee and Investor RelationsEmployee and Investor RelationsEmployee and Investor RelationsEmployee and Investor Relations
Crisis ManagementCrisis ManagementCrisis ManagementCrisis Management
55
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SpecialEvents
SpecialEvents
WrittenMaterialsWritten
Materials
CorporateIdentityMaterials
CorporateIdentityMaterials SpeechesSpeeches
NewsNews
AudiovisualMaterials
AudiovisualMaterials
Major Public Relations ToolsMajor Public Relations Tools
PublicService
Activities
PublicService
Activities
Web SiteWeb Site
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Click to add titleClick to add title
Setting Public Relations ObjectivesSetting Public Relations Objectives
Choosing the Public Relations Messagesand Vehicles
Choosing the Public Relations Messagesand Vehicles
Implementing the Public Relations PlanImplementing the Public Relations Plan
Evaluating Public Relations ResultsEvaluating Public Relations Results
Major Public Relations DecisionsMajor Public Relations Decisions
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17-18
What is the biggest obstacle to
arketing communications program?
ake a position:
. The biggest obstacle to effective promotion
ix is a lack of agency coordination
cross communication units.
. 2. The biggest obstacle to effective promotioix is a lack of understanding as to how to
ptimally design and evaluate such
rograms.
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17-19
Pick a Brand and go to the Web sitLocate as many forms ofcommunication as you can find.
audit. What do you notice? Howconsistent are the differentcommunications?
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School
Public
Relations
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The surest way tokill a bad
product is to
advertise it.Mike Flynn, Darcy AdvertisingMike Flynn, Darcy Advertising
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Public Relations
School public relationsis a solid, long-range
and democratic course of action. It is a processthat attempts to foster understanding and friendly
working relationships between schools and their
communities in order that they may not only serve
educational needs but also select more intelligently
the media and activities which will keep peopleinformed about the schools, their purposes
programs, progress, and problems.
School public relationsis a solid, long-range
and democratic course of action. It is a processthat attempts to foster understanding and friendly
working relationships between schools and their
communities in order that they may not only serve
educational needs but also select more intelligently
the media and activities which will keep peopleinformed about the schools, their purposes
programs, progress, and problems.
Not simply
publicity!!
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Public Relations
Effective public relations is
a planned two-way program
in which educators and the
public work together to meet
the educational needs ofchildren.
Effective public relations is
a planned two-way programin which educators and the
public work together to meet
the educational needs of
children.
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Public Relations
There is a need for
Public Relations..
There is a need for
Public Relations..
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Public Relations
Public Relations
is an ongoing program..
Public Relations
is an ongoing program..
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Public Relations
public relations goes on actively at
all times whether the school likes it
or notevery contact is a PR contact
visitors perceptions are impacted
with every contact
public relations goes on actively at
all times whether the school likes it
or notevery contact is a PR contact
visitors perceptions are impacted
with every contact
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Public Relations
What is the role of the
Principal in developing
good school
public relations?
What is the role of the
Principal in developing
good school
public relations?
P bli R l ti
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Public RelationsPublic Relations
takes a leadership role
refines and disseminates school news
develops positive relationships with media
establishes open lines of communication
with community
formulates plans and policies
takes a leadership role
refines and disseminates school news
develops positive relationships with media
establishes open lines of communication
with community
formulates plans and policies
The
Principal
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Public Relations
The principal understands publicsThe principal understands publics
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Public Relations
Each public has its own
personality, size, interest,and organization
Each public has its own
personality, size, interest,and organization
Public Relations
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Public RelationsPublic Relations
External public that group that is
not in the building
or district
External publicthat group that is
not in the building
or district
The Principal
understands the
dynamics of
ParentsClubs & community service organizations
Parent-teacher association
Businessmen
Adults who do not have children in school
Civic groups and leaders
ParentsClubs & community service organizations
Parent-teacher association
Businessmen
Adults who do not have children in school
Civic groups and leaders
Public Relations
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Public RelationsPublic Relations
Internal public those groups within
the building or
district
Internal publicthose groups within
the building or
district
The Principal
understands the
dynamics of
Students
Teachers
Support Staff
Other School Sites
Central Office
Students
Teachers
Support Staff
Other School Sites
Central Office
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Public Relations
Principals must understand
interrelationships of various
publics, their unique structures,
collective personalities, interests,
and political importance
Principals must understand
interrelationships of various
publics, their unique structures,
collective personalities, interests,
and political importance
Public Relations
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Public RelationsPublic Relations
warmth
acceptance
tolerance
understanding
cooperative
objective rather than emotional
warmth
acceptance
tolerance
understanding
cooperative
objective rather than emotional
Factor
s
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Public Relations
The principal must develop a
climate conducive to goodworking relationships with
publics and media
The principal must develop a
climate conducive to goodworking relationships with
publics and media
Creating a Public Relations Plan
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Creating a Public Relations Plan
Creatinga
PR Plan
Creatinga
PR Plan
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Most public relations efforts
have as much impact onschool/district performance
as a rain dance has
on the weather
Creating a Public Relations Plan
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Creating a Public Relations Plan
Do these sound familiar?Do these sound familiar?
1. We notified everybody. Wesent a letter/memo out.
2. We tried some PR. We mailed
a press release Press kit.
3. Communication? Our newsletter
goes to over 50,000 people.4. Publicity? Lets do a public
service announcement.
5. Marketing: Weve distributed
over one Kazillion brochures!
Do these sound familiar?Do these sound familiar?
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Effective marketing
is really appliedcommon sense
Nora K. Carr, St. Louis UniversityNora K. Carr, St. Louis University
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g
RACE
ResearchAnalysis & Planning
Communication
Evaluation
= RESULTS
Remember to
Creating a Public Relations Plan
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g
ResearchResearch
Q ti t k
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Questions to ask
What makes your school unique?
How do people find out about your school? Do people perceive your school differently than you
perceive your school? Why? Why do parents/students choose your school,
programs? Why do they choose your competitor?
What are the values, lifestyles, interests of yourcustomers? What to they do for a living? Educationallevel? Are they happy? Disappointed?
Who are you communicating with the most? Whoshould you be communicating and relating with more?
Who is critical to your success? Why? How close areyou to them?
Creating a Public Relations Plan
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g
Analysis
&
Planning
Analysis
&
Planning
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Focus is the secretingredient in
virtually everysuccessful
marketing planTrout & Ries, Bottom-Up MarketinTrout & Ries, Bottom-Up Marketing
Analyze data generated from
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Analyze data generated fromquestions or other collectioninstruments and develop a
planGOAL: To impact attitude, opinion,
behavior or action
FOCUS ON WHAT THE CUSTOMER(Parents, Community etc.) VALUES
IMPLEMENT STRATEGY: Best way to reach,move, influence target audience
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Determine your Strengths,
Weaknesses, Opportunities,Threats
Determine your Strengths,
Weaknesses, Opportunities,Threats
Keep it personal; focus on opinion leaders
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Keep it personal; focus on opinion leaders
Segment! Segment! Segment!
Expand involvement in your school throughadvisory groups, sub-committees
Use community and district resourcesTry something new! Explore ways to make new
technology more intimate
Use several channels to reach each
audience
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Public Relations Ideas
Newsletters often mailed to parents at PTAexpense
News Tips Sheets brief (who, what, whenwhere)
Visit local newspaper offices meet reporters Publicize teacher inservice ex. Accelerated
Reader Program
Courteous personal contacts
Breakfast with parents Pre-registration counseling with students &parents
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Public Relations Ideas
Student recognition award, bulletinboards, newspapers, etc.
Senior ID cards free admission to events
Adopt a student
Open House have students and parentspresent
Evening Meals business and professionalleaders
Parent conferences
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Public Relations IdeasOpen shop possible one night per
week
Performing student groups
Computerized assignment system
Shadow a studentOutside marquee
Letters to parents honor rolls
Publish Honor Rolls in newspapersGood conduct awards
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Public Relations Ideas
Good news cards hand out to parents atevening meeting
Booster club meetings after ball games
Grandparents DayFlowers to mothers on mothers day
Awards assemblies
Citizenship and Good Deeds day
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Public Relations Ideas
Announce student birthdays overmorning intercom
School picnic invite parents in forspecial activities
Students seen doing something goodMini-school for parents entire day
follow the schedule of their children
Senior citizen Thanksgiving dinner
Senior citizen Pen-Pal club
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Public Relations Ideas
Positive phone calls from teachersCareer day
School page in local newspaper
School web page
Give out school email addresses to parentsWeb-based grading and homework sites
Parent-Advisory Committee
Joining community organizations (Rotary clubetc.)
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Public Relations Ideas
Speaking at community meetings(Homeowners Association meetings)
School renewal day
School-based enterprisesAfter-school day care
Opening the building after hours forcommunity use (scout meetings,computer lab use, library use)
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Strategies that break the moldgrow initially like weeds.
They are not cultivated liketomatoes in a hothouse
Henry Mintzberg, The Rise and Fall of Strategic PlanHenry Mintzberg, The Rise and Fall of Strategic Plan
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CommunicationCommunication
Hierarchy of Effective Communication
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Hierarchy of Effective Communication
1. One-to-one, face to face
2. Small group discussion/meeting
3. Speaking before a medium-sized groups4. Phone conversation
5. Hand-written, personal note
6. Typewritten, personal letter not generated by computer
7. Computer generated personal letter
8. Mass-produced, non-personalized letter
9. Brochure or pamphlet sent out as a direct mail piece
10. Article in organizational newsletter, magazine, posters, etc.
11. New carried in popular press
12. Advertising in newspapers, radio, TV, magazines, posters, etc.
13. Other less effective forms of communication (billboards,skywriters, pens, give-aways, etc.)
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Ask
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Ask.Who are we reaching now?
Using what tools/channels of communication?What should we be emphasizing more?What is the best way to reach our target
audience?What has been most effective in the past?
Why?What new avenues should we explore?What resources do we have?What free help can we get?
Who can we collaborate with?
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Avoid
Not using data in making decisionsNot reporting information; or not
developing reports that encourage
other to use informationMisinformation
Forgetting to tell people how to use
the information you collect ordiscover
Public Relations
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SummarySummary
Public Relations
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ub c e a o sEssentials
Effective PR & Marketing means building
relationshipsIt is better to have many people involved in
your PR plan, understanding that efficiencymay suffer some, than to have one person do
everything perfectlyIf your PR & Marketing program isnt tied toyour organizations critical issues, you aregoing about it the wrong way
The best way to kill a bad product is toadvertise it
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Public relations and sponsorship
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Public relations defined
The deliberate, planned and sustained
effort to institute and maintain mutual
understanding between an
organisation and its publics.
Institute of Public Relations (IPR)
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Publics defined
Figure 19.1
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PR - marketing and corporate
Marketing PR:
Long-term strategic image building,developing credibility, raising theorganisations profile, and enhancing
other marketing activities.
Corporate PR:
Long-term relationship buildingstrategy with various publics.
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PR techniques
Figure 19.2
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Publicity versus advertisingAdvantages of publicity over advertising:
Credibility - advertising is paid forwhilst publicity is seen as free.
Reach - PR can achieve an incrediblelevel of reach.
Excitement - Publicity is about newsand can generate its own excitement.
Disadvantage of publicity over
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External communication used for PR
Advertising. Publications. Lobbying.
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Internal communication used for PR
House journals and newsletters.
Briefings.
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Evaluating public relations
Figure 19.3
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Corporate reputation
Concerned with how people feel about a
company based in whatever
information (or misinformation) theyhave on company activities,
workplace, past performances and
future prospects.
Fombrun, 2000
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Perceived corporate reputation:stakeholders
Figure 19.4Source: based on the value to be found in Corporate Reputation Financial Times4th Dec., Fombrun
(2000).
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Five principles to corporatereputation management( Fombrun , 2000 )
Distinctiveness. Focus. Consistency. Identity. Transparency.
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Corporate identity
The way an organisation chooses topresent itself.
Reflects the character and philosophyof the organisation.
Emphasises those characteristics thatare positive.
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Changing corporate identity
Figure 19.5
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The change process
Figure 19.6
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Reasons for failure
Figure 19.7
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Sponsorship
A business relationship between a
provider of funds, resources or
services and an individual, event or
organisation which offers in return
some rights and association that maybe used for commercial advantage.
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Types of sponsorship
Sport. Broadcast. Arts. Cause related.
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Role of sponsorship
To support the broader PR strategy. Provide a venue for meeting key
customers/suppliers.
Improve awareness and attitudestowards company or individual brands.
Support employee, government andcompany relations.
Support wider marketing objectives.
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Factors influencing sponsorshipchoice
Figure 19.8
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Sponsorship evaluation methods
Media exposure measurement. Assessing communication results. Measuring sale results. Feedback from particular groups.
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Ambush Marketing
15 - 90
What is Ambush
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What is AmbushMarketing?
Generally defined as: marketing and promotional activities
that:
seek an association with a sponsoredevent
without the authorization or consent of the
organizer of the event or sponsor, and without paying the requisite fee
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ambush marketing?
Goal: to misappropriate or capitalize on the goodwill and
popularity of the sponsored event
intentionally confuse the public into thinking that the
ambush marketer is the official sponsor of the eventto deflect some attention away from the competing
sponsors
to reduce the effectiveness of their communication
while also undermining the value and the quality of the
sponsorship opportunity that was sold
Ambush Marketing?
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Ambush Marketing?
The result:
consumers may be confused as to who is the
official sponsor of the event
ambush marketing may impact negatively onsponsorship rights
Therefore:
sponsors seek some guarantee from theorganizer of the event that offenders will be
pursued (in the sponsorship agreement)
Forms ambush
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marketing Simultaneous promotions (for example:
sample/free product distribution at
sponsored event, billboard advertising or
flying blimp with advertisers mark over
venue) Purchase of sub-category rights (for
example: broadcast rights purchased
from a TV network from marketers who
are not official sponsors of the event forthe duration of the sponsored event)
Laws: How did it work?
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Laws: How did it work?
No Olympic Pizza or Cake on salein Turin
No fly zone over sports venues Bar Olympic (pub in central
location) had to cover the logo
Same obligation for a sportsapparel and equipment shop
Special Teams
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Special Teams
How did it work?
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How did it work?
Despite huge efforts some teams run afoul
Logo on the helmet, duly covered
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Sales Promotion
15 - 98
Wh t i S l P ti ?
What is Sales Promotion?
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What is Sales Promotion?What is Sales Promotion?
Mass communication technique that offers
short-term incentives to encourage purchaseor sales of a goods or service.
1) Consumer Promotion, 2)Trade Promotionand 3)Sales force Promotion ( Three Targetgroups)
Rapid growth in the industry has beenachieved because: Product managers are facing more pressure
to increase their current sales,
Companies face more competition, Advertising efficiency has declined, Consumers have become more deal
oriented.
Consumer - Promotion Tools
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Point-of-Purchase
Displays
Point-of-Purchase
Displays
PremiumsPremiums
Price PacksPrice Packs
Cash RefundsCash Refunds
CouponsCoupons
SamplesSamples
Short-Term Incentives to Encourage Purchaseor Sales of a Product or Service.
Consumer-PromotionObjectives
Consumer-Promotion Tools
PatronageRewards
PatronageRewards
GamesGames
SweepstakesSweepstakes
ContestsContests
Advertising
Specialties
Advertising
Specialties
PatronageRewards
Entice Consumers toTry a New Product
Entice Consumers toTry a New Product
Lure Customers AwayFrom Competitors Products
Lure Customers AwayFrom Competitors Products
Get Consumers to Load Upon a Mature Product
Get Consumers to Load Upon a Mature Product
Hold & Reward LoyalCustomers
Hold & Reward LoyalCustomers
Consumer RelationshipBuilding
Consumer RelationshipBuilding
Trade - Promotion Tools
Trade - Promotion Tools
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Specialty
Advertising
Items
SpecialtyAdvertising
ItemsContestsContests
Free GoodsFree Goods
Buy-Back
Guarantees
Buy-Back
Guarantees
AllowancesAllowances
Price-OffsPrice-Offs
Short-Term Incentives That are Directed toRetailers and Wholesalers.
Trade-PromotionObjectives
Trade-PromotionTools
PatronageRewards
PatronageRewards
Push MoneyPush Money
DiscountsDiscounts
PremiumsPremiums
Displays
Persuade Retailers orWholesalers to Carry a Brand
Persuade Retailers orWholesalers to Carry a Brand
Give a Brand Shelf SpaceGive a Brand Shelf Space
Promote a Brand inAdvertising
Promote a Brand inAdvertising
Push a Brand to ConsumersPush a Brand to Consumers
Business - Promotion Tools
Business - Promotion Tools
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Short-Term Incentives That are Directed toIndustrial Customers.
Business-PromotionObjectives
Business-Promotion Tools
Generate Business LeadsGenerate Business Leads
Stimulate PurchasesStimulate Purchases
Reward CustomersReward Customers
Motivate SalespeopleMotivate Salespeople
ConventionsConventions
Trade ShowsTrade Shows
Sales ContestsSales Contests
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Sales-force Promotion:Bonuses, Contest andRallies . Best salesman of the YearAward Trip to Europe or USfor best performers.
Developing the Sales Promotion
Program
Developing the Sales PromotionProgram
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Decide on the Size of the IncentiveDecide on the Size of the Incentive
Set Conditions for ParticipationSet Conditions for Participation
Evaluate the ProgramEvaluate the Program
Determine How to Promote andDistribute the Promotion Program
Determine How to Promote andDistribute the Promotion Program
Determine the Length of the ProgramDetermine the Length of the Program
ProgramProgram
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Sales Promotions
Sales promotion spurs actionand must complement
advertising
Sales Promotion
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An extra incentive to buy
An acceleration tool
Targeted to different parties
An inducement to intermediaries
A direct inducement that offers an extra
value or incentive for the product to the
sales force, distributors, or the ultimate
consumer with the primary objective of
creating an immediate sale.
A direct inducement that offers an extra
value or incentive for the product to thesales force, distributors, or the ultimate
consumer with the primary objective of
creating an immediate sale.
Reasons for Increase in SalesP ti
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Promotion
Growing Power of RetailersDeclining Brand Loyalty
Increased Promotional Sensitivity
Brand ProliferationFragmentation of Consumer Markets
Short-Term Focus
Increased Accountability
Competition
Clutter
Sales Promotion Uses
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Sales Promotion Uses
Introduce new products by encouraging trial andrepurchase
Get existing customers to buy more
Attract new customers
Defend current customers
Maintain sales in off season
Target a specific market segment
Enhance IMC efforts and build brand equity (brandcan cheapen if SP is not designed to reinforce
the brand positioning)If advertising spends are reduced to increase Sales
Promotions it can erode brand franchise andimage (commodity / parity product image)
Sales Promotion Vehicles
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Frequency programs
Sales Promotion VehiclesConsumer-Oriented
Samples
Coupons
Premiums
Contests/sweepstakes
Refunds/rebates
Bonus packs
Price-off deals
Event marketing
Trade-Oriented
Contests, dealer incentives
Trade allowances
Point-of-purchase displays
Training programs
Trade shows
Cooperative advertising
Objectives of Consumer-O i t d S l P ti
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Oriented Sales Promotion
To Obtain Trial and Repurchase
To Increase Consumption of anEstablished Brand
To Defend (Maintain) CurrentCustomers
To Target a Specific Segment
Enhance IMC programs and buildbrand equity
Advantages and Limitations ofCoupons
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CouponsAdvantages:
Appeal to pricesensitive consumer
Can offer price break
without retailers coop
Can be effective wayto induce trial of new ofexisting products
Can be a way to defend
market share and
encourage repurchase
Disadvantages Difficult to determine
how many consumerswill use coupons andwhen
Coupons are often used
by loyal consumers whomay purchase anyway
Declining redemptionrates and high costs ofcouponing
Misredemption andfraud
Distribution of Coupons
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s bu o o Coupo s
Through ads, DM / press / on-pack and also by the scanner to
competitive brand usersCoupon ads should -
Reinforce the positioning - highlight brand strength and key benefitsemphasised in the ad
Be convenient to clip, show package prominently and have themandatory legal copy
Placed in /on packto build repeat purchase & loyalty Placed on other products Cross-ruff to attract new
customers
DM coupons are more targeted, have higher redemption
Scanner dispensed coupons attract other brand users
Cash rebates (on durables) on proof of purchase
Coupon Fraud
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p
Consumers redeem withoutpurchase
Clerks and staff exchange for
cashManagers/owners redeem
without sale
Criminals collect or counterfeitand sell
Coupon Trends
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Coupon Trends
Major companies cutting back onuse of coupons
Searching for more effective
coupon techniques
More use of internet fordistribution
Sampling
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Sampling works best when:
The products are of relatively low unit value, sosamples dont cost much
The purchase cycle is relatively short so theconsumer can purchase in a relatively short timeperiod
The products are divisible and can be broken
into small sizes that can reflect the productsfeatures and benefits
There is enough quantity for the consumer totry a product, (but keep packaging & mailingexpenses down)
Providing consumer with some
quantity of a product for no chargeto induce trial
Sampling Methods
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p g
Door-to-doorDirect mail
In-store sampling
Cross-product sampling
With newspaper or magazine
Through the internet
Sampling is more effective after an introductory
set of ads giving a toll free number to call forsamples
Premiums
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Two types of premiums: (in pack / mailed onproof of purchase at no cost)
Free premiums -only require purchase of the product
Self-liquidating premiums -
require consumer to pay some or all of the cost of thepremium
Reinforces brand image Builds repeat purchase / brand loyalty
Premium an offer of an item of
merchandise
or service either free or at a low
cost that
is an extra incentive for customers
Contests and Sweepstakes
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Contests and Sweepstakes
Contest a promotion whereconsumers compete for prizes or
money on the basis of skills or
ability. Winners are determined byjudging entries or ascertaining which
entry comes closes to some
predetermined criteria
Sweepstakes/games a promotionwhere winners are determined purely by
chance and cannot require a proof ofpurchase as a condition for entry.
Winners are determined
by random selection from the pool of
entries or generation
orce brands advertising platformif appropriat
Other Popular Consumer SalesPromotion Tools
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Promotion Tools Price packs offer lower price than usual or
greater quantity than usualBonus Packs For value enhancing items more
quantity packs are better than price-offspromotions
Price-off deals - Induces switching and reinforces
loyaltyRefunds and Rebates
Event marketing
Frequency/loyalty programs
Subsidised financing / Reduced EMI incentive for durables
Consumer Franchise-Building(CFB) Promotions
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CFB Promotional Objectives
Communicate distinctive brand attributesDevelop and reinforce brand identity that is
consistent with the image of the brand
Build long-term brand preference
Encourage repeat purchase and long-termpatronage
Engage active consumer involvement
(CFB) Promotions
Consumer Franchise BuildingPromotions Communicate distinctive
brand attributes and contribute to the
development and reinforcement of
brand identity and image
Nonfranchise-Building (non-FB)Promotions
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Promotions
Non-FB Promotions May Include Price-off deals Bonus packs Rebates or refunds
Non-FB Promotions shortcomings
Trade promotions benefits may not reach customers Customers may buy on the basis of price rather than
brand equity Do not encourage the development of brand loyalty
Nonfranchise-building promotions -Accelerate the purchase decisionprocess and generate an immediatesales increase but do not contribute to
the building of brand identify and image
Trade-Oriented Sales PromotionObjectives
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Objectives
Obtain Distribution of New Products
Maintain Trade Support for Existing Products
Encourage Retailers to Display and Promote ExistingBrand
Build Retail Inventories Stock and buy more stocks Move goods from warehouse to shelf
Can erode brand franchise & image if advertising spendsare reduced (commodity / parity product image) or isnot brand enhancing
Types of Trade-OrientedPromotions
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PromotionsContests and Incentives
Trade Allowances
Buying Allowances
Promotional Allowances
Slotting AllowancesPoint-of-Purchase Displays
Sales Training Programs
Trade ShowsCooperative Advertising
Trade Allowances
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Trade Allowances
Off-invoice / buying allowance Count-recount allowances
Billback allowances
Display allowances in-ad grocer coupon Slotting and facing allowances
Trade inventory financing and delayed
billing Sweepstakes, contests, etc for retail sales
people
Trade Allowances
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Off-invoice or buying allowance - % price-cutapplied to volumes purchased during promotionalperiod. (Free goods may be offered instead)Applies Push pressure to sell stocks picked-up
Count-recount allowances for shifting the
stocks from the warehouse to the shelf Pressure to pass the price cut to the consumer
Billback allowances allowance paid if certainperformance criteria is met For Displays Ads in retailer publications etc
Display allowances - to display productsprominently Time pressed customers pick up brands made salient
this way
Trade Allowances
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In-ad grocer coupon - in the retailerscircular. Co pays for coupon face-value &handling costs
Slotting & facing allowances one time feepaid to place new brand on shelf to cover costof space, admn. & risk
Trade inventory financing & delayedbilling - used for durables reduced ratefinancing / delayed billing
Sweepstakes, contests for retail salespeople. Timed to run along with sales promos
Problems with TradeAll
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AllowancesMarketers expect that the savings will be passed on
to the consumer in the form of lower prices.However, the trade members often pocketdiscounts
Two practices that are particularly bothersome
forward buying
and diverting
To deal with these trade problems, companieshave adopted a policy of
Everyday Low Pricing (EDLP) the list price is loweredand trade promotional allowances are reduced /eliminated
Promotion Targeted to ResellerSalespeople
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Salespeople
Product or program sales Selling a specific number of cases Selling a specific number of units Selling a specific number of promotional programs
New account placements Number of new accounts opened Number of new accounts ordering a minimum amount Promotional programs placed in new accounts
Merchandising efforts
Establishing promotional programs Placing display racks, counter and other p-o-p displays
Types of CooperativeAdvertising
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Advertising
Horizontal cooperate advertising
Ingredient-sponsored cooperative
advertising
Vertical cooperative advertising
Retailerspromotions
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Consumer Promotions used byretailers to
clear inventory out of style, slow
moving, shelf-unstable products
Consumer Franchise-Building(CFB) Promotions
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CFB Promotional ObjectivesCommunicate distinctive brand attributes
Develop and reinforce brand identity that isconsistent with the image of the brand
Build long-term brand preference
Encourage repeat purchase and long-term
patronageEngage active consumer involvement
(CFB) PromotionsConsumer Franchise Building
Promotions Communicate distinctivebrand attributes and contribute to the
development and reinforcement of
brand identity and image
Nonfranchise-Building(non-FB)Promotions
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o o o s
Non-FB Promotions May Include Price-off deals
Bonus packs Rebates or refunds
Non-FB Promotions shortcomings Trade promotions benefits may not reach
customers Customers may buy on the basis of price ratherthan brand equity
Do not encourage the development of brandloyalty
Nonfranchise-building promotions -
Accelerate the purchase decisionprocess and generate an immediatesales increase but do not contribute tothe building of brand identify and image
The Sales PromotionDilemma
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AllOth
ers
MaintainPromotions
MaintainPromotions
Cut BackPromotions
Cut BackPromotions
Our Firm
We losemarket share
Same marketshare, profits
stay low
Higher profitsfor everyone We gain inmarket share
Dilemma
Evaluation and Risks
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Consumer Promotions Advtg and SP play a complementary role
and when run in tandem they yieldpowerful synergies
Delivers additional brand value and Induces trial & repeat purchase
Breaks through clutter
SP can hurt the image of the brand equity
if run in isolation of advertising
if poorly designed
if protracted - particularly true for highlyinvolvement, image & feeling products
Evaluation-Risks
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Trade Promotions Advtg. Campaign, Consumer SP and TP
if run in tandem yield powerfulsynergies
TP erode brand franchise and imageleading to less leverage with the trade
Because of less ad spend
If promos are not brand enhancing
Coordinating Sales PromotionWith Other IMC Elements
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With Other IMC Elements
Budget allocation - It depends on the promotional objectives of the campaign
the market and competitive situation
the brands stage in its life cycle
Media support and timing
Coordination of ad and promotion themesMeasuring effectiveness
Various IMC elements such asadvertising, direct marketing, Internet
and personal selling efforts need to be
coordinated with sales promotion to
create a synergistic effect. Mustconsider:
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Direct Marketing
Direct Marketing
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Direct marketing consists of directconnections with carefully targetedindividual consumers to both obtain an
immediate response and cultivatelasting customer relationships.
The New Direct-Marketing Model
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Some firms use direct marketing as asupplemental medium.
For many companies, direct
marketing constitutes a new andcomplete model for doing business.
Some firms employ the direct modelas their onlyapproach.
Some see this as the new marketingmodel of the next millennium.
Benefits of Direct Marketing
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Benefits to Buyers:Convenient
Easy to use
Private
Ready access to products
and informationImmediate and interactive
Benefits of Direct Marketing Benefits to Sellers:
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Powerful tool for building customer
relationships Can target small groups or
individuals
Can tailor offers to individual needs
Can be timed to reach prospects atjust the right moment
Gives access to buyers they could
not reach through other channels Offers a low-cost, efficient way to
reach markets
Customer Databases
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An organized collection of comprehensive dataabout individual customers or prospects, includinggeographic, demographic, psychographic, andbehavioral data.
Databases can be used to identify prospects, tailor
products, and maintain customer relationships
Database marketing requires substantialinvestment in hardware, software, personnel
Forms of Direct Marketing
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Direct-Mail Marketing
Involves sending an offer,
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Involves sending an offer,announcement, reminder, or otheritem to a person at a particularaddress.
Accounts for a high proportion ofdirect-marketing sales.
Permits high target-market selectivity.
Personal and flexible.
Easy to measure results.
Catalog Marketing
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With the Internet, more and morecatalogs going electronic.
Print catalogs still the primary
medium. Harder to attract new customers with
Internet catalogs.
Direct-Response TV Marketing
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Direct-Response Advertising
Infomercials
Home Shopping Channels
Integrated Direct-Marketing
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The use of carefullycoordinated multiple-media,multiple-stage campaigns.
Public Policy and Ethical Issues inDirect Marketing
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Irritation to Consumers
Taking unfair advantage of impulsive
or less sophisticated buyers
Targeting TV-addicted shoppers
Deception, Fraud
Invasion of Privacy
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