Entrepreneurship and Small Business Management

1. Entrepreneurship and Small Business Management Chapter 9 Integrated Marketing Communications

2. Ch. 9 Performance Objectives • Define integrated marketing communications and its components. • Conduct promotional planning and budgeting. • Understand advertising and advertising management. • Identify and evaluate media.

3. Ch. 9 Performance Objectives(continued) • Discuss sales promotion. • Explore alternative marketing options. • Analyze database and direct-response marketing opportunities. • Incorporate e-active marketing. • Describe publicity and public relations.

4. What Is Integrated Marketing? • Promotional communication strategies combined for maximum effectiveness • Components may include: • Advertising • Promotions • Personal selling • Sponsorships • Public relations • Types of specialized marketing such as database, direct, alternative, and e-active

5. Promotional Planning • Determine the best ways to effectively communicate your brand and unique selling proposition to your customers. • Involve all parts of your organization. • Promotions opportunity analysis—process that includes researching target markets and the promotional strategies to reach them

6. Five Steps of Promotions Opportunity Analysis • Conduct a communications market analysis. • Establish communications objectives. • Create a communications budget. • Prepare promotional strategies. • Match tactics with strategies.

7. Common Examples of Communications Objectives • Develop brand awareness and image. • Provide information. • Change customer beliefs or attitudes. • Encourage repeat purchases. • Build customer traffic. • Increase market share. • Reinforce purchasing decisions.

8. Ways to Determine Your Promotional Budget • Percentage of sales—a percentage of the prior year’s sales or anticipated sales • Competitive spending—budget similar to competition’s level of spending • Excess funds—amount “left over” after other expenses are calculated • Objective and task—based on what is needed to reach promotional objectives

9. Types of Advertising • Institutional advertising—provides information about an organization; intended to create awareness about the firm and enhance its image • Product advertising—designed to create awareness, interest, purchasing behavior, and post-purchase satisfaction for specific products and services

10. Media Planning • Determine your media strategy: identify which media types will be used • Create a media schedule: spell out specific media vehicles, volume of use, and timing • Consider critical measurement factors. • Compare media costs.

11. Media Measurement Factors • Reach—number of target audience members exposed to the advertisement during a given time period • Frequency—how often your target audience will be exposed to the advertisement during a given period Target audience: people, businesses, or households

12. Media Measurement Factors(continued) • Opportunities to see (OTS)— cumulative number of exposures in a given time period (usually four weeks) • Gross rating points (GRP)— • Measures the intensity of a media plan • GRP = Media vehicle’s rating (reach) x OTS (number of insertions)

13. Media Categories • Broadcast media (television and radio) • Print media • Newspapers • Magazines • Directories • Outdoor advertising media (billboards) • Internet

14. Calculating Media Costs • Cost Per Thousand—cost of reaching 1,000 members of the media vehicle’s audience (not the purchaser’s) CPM = (Cost of media buy ($) / Total audience) x 1,000 • Cost Per Rating Point—measure of the efficiency of a media vehicle to a company’s target market CPRP = Cost of media buy ($) / Vehicle’s rating

15. Marketing Materials • Examples: stationery, business cards, posters, flyers, brochures, newsletters • Should reinforce competitive advantage • Serve three main functions: • Organize your thinking • Teach others in your company about the business • Sell your product/service in marketplace

16. Sales Promotional Tools Consumer Business-to-Business Incentives Contests Refunds and rebates Sampling Allowances Trade show exhibits • Coupons • Contests and sweepstakes • Refunds and rebates • Sampling • Premiums • Tie-ins • Bonus packs • Mall carts or kiosks

17. Alternative Marketing Options • Guerilla marketing—original, unconventional, and inexpensive small-business strategies • Buzz marketing—another name for word-of-mouth marketing • Organic (occurs naturally) • Amplified (jump-started by the business)

18. Alternative Marketing Options(continued) • Product placement/branded entertainment • Lifestyle marketing • In-store marketing • Samples or demonstrations (edutainment) • Point-of-purchase and shelf placement • Ads in/on other media venues (theaters, bus stops, clothing, shopping bags, etc.)

19. Database Marketing • Focus on building customer loyalty. • Design and follow a data-collection plan. • Code and analyze the collected data. • Calculate lifetime value. • Perform a RFM analysis. • Use data mining to extract information. • Create highly-targeted, customized communications based on the database.

20. Marketing Communications Driven by Databases • E-mail marketing • Direct mail • Catalogs • Coupons • Infomercials/direct-response commercials • Telemarketing

21. What Is E-active Marketing? • Combination of e-commerce and interactive marketing • E-commerce example: electronic store • Interactive marketing—uses Internet to collect information from consumers and communicate with them

22. E-active Marketing Methods • Online advertising, such as banner ads • Brand spiraling • Blogs • Online social networks (FaceBook, MySpace, BlackPlanet, etc.) • Consumer-generated advertising/media • Viral marketing campaigns

23. Ways to Generate Publicity • Press release • An announcement sent to the media • States the “who, what, when, where, and why” of the story • Pitch letter • Correspondence designed to explain the story behind the press release • Tells why the story would be interesting to the media outlet’s audience

24. Build Public Relations Through: • Special events (contests, parties, unusual events, etc.) • Sponsorships • Networking (exchanging information and contacts) • Public speaking