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Chapter # 8

ENTREPRENEURSHIP DEVELOPMENT. Integrated Marketing Communications and Pricing Strategies. Chapter # 8. Integrated Marketing Communications and Pricing Strategies. It Pays to Advertise!.

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Chapter # 8

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  1. ENTREPRENEURSHIP DEVELOPMENT Integrated Marketing Communications and Pricing Strategies Chapter # 8 www.AssignmentPoint.com

  2. Integrated Marketing Communications and Pricing Strategies It Pays to Advertise! www.AssignmentPoint.com

  3. Every business needs to construct, maintain and continually evolve an integrated marketing communications system. Such a system is comprised of advertising, publicity or public relations and personal selling with all parts focusing on the firm’s targeted customers and delivering a consistent and reinforcing message that extols the benefits of the firm’s products or services. Entrepreneurs who fail to communicate with their customers run a serious risk of declining sales. www.AssignmentPoint.com

  4. Entrepreneurs • Entrepreneur need to communicate with customers. • They need to plan to assure that money spent on marketing is not wasted. A well developed plan does not guarantee success, but it does increase the likelihood of achieving positive results. www.AssignmentPoint.com

  5. Entrepreneurs • Some think they can not afford advertising cost and they spend money on if anything remains after paying other bills – they treat it as leftover expense • But advertisement is not an expense, it is an INVESTMENT. • A mega budget is not a prerequisite for a great campaign, creativity is also needed. • Chapter example: • Writing on magazine • Radio Ads • Attending in seminars and fairs www.AssignmentPoint.com

  6. Developing a Marketing Communications Plan • Step 1: Create specific, measurable objectives. • Step 2: Identify and analyze the target audience. • Step 3: Design an advertising message and choose the media for transmitting it. www.AssignmentPoint.com

  7. Message Media Sender Encoding Decoding Noise Response Feedback Receiver A View of the Communication Process Sender’s Field of Experience Receiver’s Field of Experience www.AssignmentPoint.com

  8. Communication Process Sender is the party sending the message to another party. E.g. Grameenphone. Encoding is the process of putting thought into symbolic form. Add agency assembles words and illustrations into an advertisement that will convey the intended message. E.g. Bitopi and Grey Advertising Ltd., creating commercials for their clients. Message is the set of language or symbols the sender transmits. E.g. Stay Close by GP. Media is the communications channels through which the message moves from sender to receiver. E.g. Television, Radio or Press. www.AssignmentPoint.com

  9. Communication Process Decoding is the process by which the receiver assigns meaning to the symbols. E.g. Individual customer’s perceptions and understanding. Receiver is the party receiving the message sent by another party. E.g. Individual or business customers. Response is the reaction of the receiver after being exposed to the message. Feedback is the part of the receiver’s response communicated back to the sender. Noise is the unplanned static or distortion during the communication process, which results in the receiver’s getting a different message than the one the sender sent. www.AssignmentPoint.com

  10. USP • You have to define your USP in your ads • Many companies does not define USP and tell customers to buy their product without offering any compelling reasons or USP. • You need a list of USP for IMC • What is USP? www.AssignmentPoint.com

  11. Build Advertisements around a Unique Selling Proposition (USP) • USP - A key customer benefit of a product or service that answers the critical question that every customer asks: “What's in it for me?” • Primary benefits • Identify your product or service's USP by describing the primary benefit it offers customers and then list other secondary benefits it provides. • Build ads around USP www.AssignmentPoint.com

  12. Build Advertisements around a Unique Selling Proposition (USP) • Most powerful USP are intangible or psychological benefits like safety, security, status. • Don’t overlook the intangible or psychological benefits your product or service offers. • Briefly list a few facts that support this USP. • Then, focus your ads to stress these top benefits and the facts supporting them! www.AssignmentPoint.com

  13. The Operational Elements of a Marketing Communication Plan • Advertising is any sales presentation that is non-personal in nature and is paid for by an identified sponsor. • Major Advertisement tools: • Print Media • Broadcast media • Outdoor Media • Internet & Websites www.AssignmentPoint.com

  14. Five Fundamentals of a Successful Advertisement. It should emphasize a key benefit of the product or service to the customer. It should attract attention. It should communicate the company’s Unique Selling Proposition (USP). It should motivate customers to take action immediately. It should prove the USP and benefits to the customer with facts, statistics, or testimonials. www.AssignmentPoint.com

  15. Advertising Does your advertising deliver the message you want to the audience your are targeting? If not, try stating your strategy in six sentence. Primary Purpose: What is the purpose of this ad? Primary Benefit: What USP can you offer customers? Secondary Benefits: What other key benefits support your USP? Target Audience: At whom are you aiming the ad? Audience Reaction: What response do you want from your target audience? Company Personality: What image do you want to convey in your ads? www.AssignmentPoint.com

  16. Advertising www.AssignmentPoint.com

  17. Advertising www.AssignmentPoint.com

  18. Publicity Publicity or Public Reaction is an intentional process of gaining positive recognition about a business or its products or services by writing interesting and newsworthy articles about what the business is doing or plans to do. Publicity is any commercial news covered by the media that is positive in nature, with the distinct possibility that it will increase recognition of the firm or its products. Publicity has great power to influence an interested reader because it is viewed as more objective than advertising. www.AssignmentPoint.com

  19. Publicity www.AssignmentPoint.com

  20. Tips for Stimulating Publicity • Write an article of interest to customers. • Sponsor an off-beat event. • Involve celebrities “on the cheap.” • Offer to be interviewed on TV and radio stations. • Publish a newsletter. • Speak to local organizations. • Sponsor a seminar. • Write news releases and fax or e-mail them to the media. • Serve on community and industry boards and committees. • Sponsor a community project or support a nonprofit organization. • Promote a cause. www.AssignmentPoint.com

  21. Sponsorship and Special Events • Sponsoring special events generates publicity, attracts interest, and provides a lasting impression of a company in customers’ minds. • Small companies can create their own special events. www.AssignmentPoint.com

  22. Tips for Sponsoring an Event • Don’t count on sponsorships for your entire advertising campaign. • Look for or create an event that is appropriate for your business. • Research the event and the organization hosting it before agreeing to become a sponsor. • Try to become the dominant (or ideally, the only) sponsor of the event. • Clarify the costs and the level of participation required for sponsorship up front. • Get involved; take an active role in the event. www.AssignmentPoint.com

  23. Personal Selling Personal Selling is the personal contact between salespeople and potential customers resulting from the sales efforts. Effective personal selling can give the small company a definite advantage over its larger competitors by creating a feeling of personal attention. Personal selling deals with the salesperson’s ability to match customer needs to the firm’s goods and services. www.AssignmentPoint.com

  24. Personal Selling Top Salespeople… • Are enthusiastic and alert to new opportunities. • Are experts in the products and services they sell. • Concentrate on select accounts. • Plan thoroughly. • Use a direct approach. www.AssignmentPoint.com

  25. Personal Selling Top Salespeople… • Work from the customer’s perspective. • Use past success stories. • Leave sales material with clients. • See themselves as problem solvers, not just vendors. • Measure their success not just by sales volume but by customer satisfaction. www.AssignmentPoint.com

  26. Personal Selling Successful Personal Selling Requires a Selling System • Create a feeling of mutual trust and respect- Establish rapport (relationship) with prospect. • Interview the prospect - Let the prospect talk to determine the key criteria that influence the buying decision. • Demonstrate, explain, and show – Make clear the benefits of your product or service. www.AssignmentPoint.com

  27. Personal Selling Successful Personal Selling Requires a Selling System • Validate - Prove the claims about your product or service. • Overcome objections- Listen for objections and try to overcome them. • Close - Stop talking and ask for the order. www.AssignmentPoint.com

  28. Selecting Advertising Media:Key Questions • How large is my firm's trading area? • Who are my customers and what are their characteristics? • Which media are my target customers most likely to watch, listen to, or read? • What budget limitations do I face? www.AssignmentPoint.com

  29. Selecting Advertising Media:Key Questions • Which media do my competitors use? • How important are repetition and continuity of my advertising message? • How does each medium compare with others in its audience, its reach, and its frequency? • What does the advertising medium cost? www.AssignmentPoint.com

  30. Traditional Media Options • Outdoor ads • Transit advertising • Directories • Trade Shows • Specialty Advertising • Point-of-purchase ads • Word-of-Mouth • Newspapers • Radio • Television Ads • Magazines • Direct mail • World Wide Web www.AssignmentPoint.com

  31. Newspapers • Advantages • Selected geographic coverage • Flexibility • Timeliness • Communication potential • Low cost • Prompt responses • Disadvantages • Wasted readership • Reproduction limitations • Lack of prominence • Declining readership • Short ad life www.AssignmentPoint.com

  32. Radio • Advantages • Universal infiltration • Market segmentation • Flexibility and timeliness • Friendliness • Disadvantages • Poor listening • Need for repetition • Limited message www.AssignmentPoint.com

  33. Television • Advantages • Broad coverage • Visual advantage • Flexibility • Design and production assistance • Disadvantages • Brief exposure • Clutter – Many ads can create confusion • Zapping – Customers switch channels • Fragmented audience • Costs www.AssignmentPoint.com

  34. Creative Television Ads • Use emotion. • Consider production values. • Prove your product’s or service’s benefit. • Identify your company well and often. • Keep it simple. • Have one basic idea. • Make your point clear. • Make it unique. • Get viewers’ attention. • Involve the viewer. www.AssignmentPoint.com

  35. Magazines • Advantages • Long life spans • Multiple readership • Target marketing • Ad quality • Disadvantages • Cost • Long closing times • Lack of prominence (importance) www.AssignmentPoint.com

  36. Direct Mail • Advantages • Selectivity • Flexibility • Reader attention • Rapid feedback • Measurable results and testable strategies • Effectiveness • Disadvantages • Inaccurate mailing lists • Clutter • High relative costs • High throwaway rate www.AssignmentPoint.com

  37. Creating Direct Mail Ads That Really Work • Promise benefits in the headline. • Use short “action” words. • Use lots of white space. • Use eye-catching words. • Forget grammatical rules. • Repeat the offer at least three times. • Offer proof of claims and endorsements. • Ask for the order. www.AssignmentPoint.com

  38. Creating Direct Mail Ads That Really Work • Ask the reader questions in the copy. • Use high-quality paper and envelopes. • People usually open envelopes that resemble bills. • Address envelopes to a particular person. • Use stamps if possible. • Use a “P.S.” because recipients almost always read them. • Make the order form easy to fill out. www.AssignmentPoint.com

  39. Advertising on the Web • Banner ads • Pop-up ads • Cookies • Full-page ads • Push technology ads • E-mail ads • Permission e-mail • Spam www.AssignmentPoint.com

  40. Outdoor Advertising • Advantages • High exposure • Broad reach • Flexibility • Cost efficiency • Disadvantages • Brief exposure • Limited ad recall • Legal restrictions • Lack of prominence www.AssignmentPoint.com

  41. Transit Advertising • Advantages • Wide coverage • Repeat exposure • Low cost • Flexibility • Disadvantages • Generality • Limited appeal • Brief message www.AssignmentPoint.com

  42. Directories • Advantages • Prime prospects • Long life • Disadvantages • Lack of flexibility • Ad clutter • Obsolescence www.AssignmentPoint.com

  43. Preparing An Advertising Budget www.AssignmentPoint.com

  44. What determines Price? Price Ceiling ("What will the market bear?") ? ? ? Final Price (What is the company's desired "image?") ? Acceptable Price Range ? ? ? ? ? ? ? ? Price Floor ("What are the company's costs?") www.AssignmentPoint.com

  45. Introducing A New Product 3 Goals: • Getting the product accepted • Maintaining market share as competition grows • Earning a profit • 3 Basic Strategies: • Penetration • Skimming • Sliding-down-the-demand-curve www.AssignmentPoint.com

  46. Pricing Techniques • Odd Pricing • Price Lining • Leader Pricing • Geographical Pricing • Opportunistic Pricing • Discounts • Multiple Unit Pricing • Suggested Retail Prices www.AssignmentPoint.com

  47. END OF CHAPTER # 8 www.AssignmentPoint.com

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