INTRODUCTION to PROMOTION and INTEGRATED MARKETING COMMUNICATIONS

1. INTRODUCTIONto PROMOTIONand INTEGRATED MARKETING COMMUNICATIONS Chapter 1: 1.1

2. Relationship Between Promotion, the Promotional Mix, and Integrated Marketing Communications PROMOTION • Communication Process in Marketing • Used to Create a Favorable Predisposition Toward: • Brand of Product • Service • Idea • Person PROMOTIONAL MIX • Blend of Communications Tools and Activities Used by a Firm • Carries out the Promotion Process • Communicates Directly with Target Markets 1.2

3. Relationship Between Promotion, the Promotional Mix, and Integrated Marketing Communications (con’t) INTEGRATED MARKETING COMMUNICATIONS (IMC) • Manages the Processes and Activities of Using Promotional Tools • Unified Way • Produces a Synergistic Communications Effect 1.3

4. Relationship Between Promotion, the Promotional Mix, and Integrated Marketing Communications (con’t) • Promotion: Process • Promotion Mix: Tools • IMC: Management of the Promotion Mix 1.4

5. The Promotional Mix ADVERTISING • Paid Mass Media Attempt to Persuade • Complex System of Strategic Planning and Creative Genius INTERNET ADVERTISING • Electronic Mail (e-mail) • Internet Relay Chat (IRC) • Usenet • World Wide Web (www) SALES PROMOTION • Use of Incentives to Generate a Specific Short-Term Response • Household Consumer • Trade Buyer • Business Buyer 1.5

6. Example of Mass Media Advertising 1.6

7. Example of Sales Promotion 1.7

8. The Promotional Mix (con’t) DIRECT MARKETING AND e-COMMERCE • Distinguished From Other Primary Promotional Tools in 3 Ways • Uses a Combination of Media • Designed to Elicit a Direct Response • Transactions Can Occur Anywhere • E-Commerce is Another Form of Direct Marketing • Business is Conducted Between Buyers and Sellers Using Electronic Exchange Media 1.8

9. The Promotional Mix (con’t) SPONSORSHIP • Funding an Event • Creating an Event to Showcase a Firm’s Brand POINT-OF-PURCHASE • Materials Used in Retail Setting to Attract Shoppers’ to a Company’s Brand SUPPORTIVE COMMUNICATIONS • Used to Target Audiences Outside Mainstream Media or Electronic Communications 1.9

10. The Promotional Mix (con’t) PUBLIC RELATIONS • Communication that can Foster Goodwill Between a Firm and its Many Constituent Groups PERSONAL SELLING • Presentation of Information about a Firm’s Products or Services by One Person to Another Person or to a Small Group of People 1.10

11. Personal Selling is the Most Important Variable in the Promotional Mix of Many Organizations 1.11

12. The Promotional Mix (con’t) ROLE OF PROMOTION IN MARKETING STRATEGY • Must Have Marketing Strategy Decisions about Products (Brand) • Branding – Established Name, Term, Symbol or Design that Identifies for Consumers that a Product is being Offered by a Particular Seller and Clearly Distinguished the Product of that Seller from those Offered by Competitors 1.12

13. The Promotional Mix (con’t) ROLE OF PROMOTION IN MARKETING STRATEGY (con’t) • Role of Promotion in Marketing Strategy Affects 3 Key Aspects of Decision Making with Respect to Brands • Creating the Marketing Mix • Achieving Effective Market Segmentation, Product Differentiation, and Positioning • Enhancing Revenues and Profits 1.13

14. The Promotional Mix (con’t) ROLE OF PROMOTION IN THE MARKETING MIX • Assumes a Wide Range of Responsibilities Related to: • Conception • Pricing • Distribution Brands • Product (Brand) 1.14

15. The Promotional Mix (Con’t) ROLE OF PROMOTION IN THE MARKETING MIX (con’t) • Promotion Affects the Product Area of the Marketing Mix • Information and Persuasion • Introduction of New Brand or Brand Extensions • Building and Maintaining Brand Loyalty Among Consumers • Building and Maintaining Brand Loyalty Within the Trade 1.15

16. One Role for Promotion is to Help Introduce Brand Extensions Like this Extension of Jell-O into the Yogurt Market 1.16

17. The Promotional Mix (con’t) ROLE OF PROMOTION IN THE MARKETING MIX (con’t) • Price • Effects the Consumer Market • Effects the Trade Market • Distribution • Consumer Access to Brands • Securing Trade Distribution 1.17

18. The Role of Promotion in Effective Market Segmentation, Differentiation and Positioning • Promotion is Important in Helping to Execute These Strategies • Market Segmentation • Product Differentiation • Positioning • External • Internal 1.18

19. The Role of Promotion in Revenue and Profits • Sales Occur • Brand has Well-Conceived Marketing Mix • Complete Marketing Mix • Good Promotion • Large-Scale Demand /Production Produces • Cost to Produce Item is Reduced • Known as Economies of Scale • Brand Loyalty at Any Cost • Firm Raises Prices • Known as Inelasticity of Demand 1.19

20. Promotional Tools Help Increase Brand Loyalty 1.20

21. Integrated Marketing Communications FACTORS CONTRIBUTING TO IMC’s RISING PROMINENCE • Fragmentation of Media • Better Audience Assessment Through Database Technology • Consumer Empowerment • Increased Advertising Clutter • Shifting Channel Power • Desire of Greater Accountability 1.21

22. Promotion and IMC Help Cut Through the Clutter of Advertising 1.22

23. Participants in IMC Management • Marketing Organization • Marketing Plan • Goal & Objectives • Customer/Prospect Databases IMC Management Personal Selling (Chapter 14) • Advertising Agency • Research • Creative Strategies • Production • Message Placement Public Relations (Chapter 13) Advertising (Chapter 8) Sales Promotions P-O-P Supportive (Chapter 12) • Specialized Promotion Organizations • Media Organizations • Event Management Firms • Web Site Designers • Sales Promotions Agencies • Direct Marketing Agencies • Public Relations Firms • P-O-P Agencies & Designers Internet Advertising (Chapter 9) Sales Promotions (Chapter 11) Direct Marketing e-Commerce (Chapter 10) 1.23