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Chapter 2

Chapter 2. The Role of IMC in the Marketing Process. Marketing Positioning. Strategies Production Attributes/ Characteristics/ Benefits Price/ Quality Use/ Application Product Class Product User Competitors Cultural Symbols II. Repositioning. Marketing Segmentation.

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Chapter 2

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  1. Chapter 2 The Role of IMC in the Marketing Process

  2. Marketing Positioning • Strategies • Production Attributes/ Characteristics/ Benefits • Price/ Quality • Use/ Application • Product Class • Product User • Competitors • Cultural Symbols II. Repositioning

  3. Marketing Segmentation Defined: Dividing a market into distinct groups that have common needs and that respond similarly to marketing strategies. Taking a large heterogeneous market and dividing it into smaller more homogeneous markets. Bases for Segmentation • Demographic • Geographic • Psychographics • Product use • Benefits • Awareness/ Intentions • Buying condition

  4. Sample Positioning Statement American Red Cross • “The American Red Cross is the organization that translates your caring and concern into immediate action” • Theme: “Help Can’t Wait”

  5. Chapter 3 Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations

  6. Organizing for Advertising I. Options • Advertising Department • In-House Agencies • Advertising Agencies • Combination

  7. Organizing for Advertising (Continued) II. Functions of a Full Service Industry * Account Executive * Public Relations * Research * Production * Media * Traffic * Creative * Administration * Promotions III. Integrated Marketing Communications (IMC)

  8. Methods of Agency Compensation • Media Commission • Straight Media Commission • Media Commission Plus Percentage Charge for Extra Services • Negotiated Commissions • Fee Systems • Fee Arrangements • Fixed Fee • Fee-Commission

  9. Methods of Agency Compensation (Continued) B. Cost Plus Agreement 1. Cost plus system 2. Incentive Based Compensation III. Hourly Rated IV. Combination

  10. Chapter 4 Perspectives on Consumer Behavior

  11. Consumer Behavior • Psychological Perspective A. Psychoanalytic Theory 1. Freud 2. Motivation Research • In-depth interview • Projective techniques • Association test • Focus Groups

  12. Consumer Behavior (Continued) B. Behavior Learning Theories 1. Classical Conditioning 2. Instrumental/ Operant Conditioning C. Cognitive Theory 1. Motivation 2. Perception 3. Attitudes II. Consumer Decision Process A. Problem Recognition B. Information Search

  13. Consumer Behavior (Continued) C. Alternative Evaluation D. Purchase Decision E. Post-purchase Evaluation III. Environmental/ Social Influences • Culture • Subcultures • Social Class • Reference Groups • Opinion Leaders

  14. Chapter 6 Source, Message, and Channel Factors

  15. Source, Message, and Channel Factors • Source Factors A. Source Credibility 1. Expertise 2. Trustworthiness 3. Corporate leaders as spokespersons B. Source Attractiveness 1. Similarity 2. Decorative models 3. Celebrities C. Source Powers

  16. Source, Message, and Channel Factors (Continued) • Message Factors • Message Structure • Order of presentation • Drawing a conclusion • Message Sidedness B. Message Appeals • Rational vs. Emotional • Comparative • Fear • Humor • Combinations

  17. Source, Message, and Channel Factors (Continued) • Channel Factors • Personal vs. Non-personal • Multi-step flow • Qualitative media factors • Clutter

  18. Chapter 7 Establishing Objectives and Budgeting for the Promotional Program

  19. Determining Objectives • Sales Versus Communication Objectives • DAGMAR (Defining Advertising Goals Measuring Advertising Results) • Characteristics of Objectives • Concrete and Measurable • Target Audience • Benchmark and Degree of Change • Specified Time Period

  20. The Budgeting Process • Theoretical Approaches • Marginal Analysis • Sales Response Models • Top-Down Approaches • Affordable Method • Arbitrary Allocation • Return-on-Investment • Competitive Parity • Percentage of Sales

  21. The Budgeting Process (Continued) • Build-Up Approaches • Objective and Task • Quantitative Models • Payout Planning

  22. Chapter 10 Media Planning and Strategy

  23. Goal of Media Planning • Reach the largest number of potential customers • The most number of times • For the least amount of money • And the least amount of waste

  24. Steps in Developing The Media Plan • Market Analysis • Who? • What? • Where? • Establish Media Objectives • Implement Media Strategy

  25. Developing Media Strategy • Media Mix • Target Market Coverage • Geographic Coverage • Scheduling • Reach and Frequency • Gross Rating Points • Mood • Flexibility • Budget

  26. Chapter 11 Evaluation of Broadcast Media

  27. Radio Advantages • Low Cost • Selectivity • Very Flexible • The Image Media • High reach potential • Merchandising tie-ins • Disadvantages • Lack of visuals • Fragmentation of listeners • Message is fleeting

  28. Television • Disadvantages • Initial Cost • Mass coverage “waste” • Fleeting message • Clutter Advantages • Audio and visual • Mass Coverage • Cost Effective CPM’s • Attention-getting • Some selectivity

  29. Types of Sponsorship • Full • Participating • Spot Announcement

  30. Audience Measurement • Coverage • Sets-in-use or H.U.T. • Program rating • Share of Audience

  31. “Single Source” Data • SAMSCAN (Sami/Burke/Arbitron) • INFOSCAN (Information Resources, Inc.) • SCANTRAK (A.C. Nielson)

  32. Chapter 12 Evaluation of Print Media

  33. Newspapers Advantages • Extensive market coverage • Flexible lead times • Geographic selectivity • Reader involvement Disadvantages • Poor color reproduction • Short life • Lack of demographic selectivity • Clutter • Competition from TV and computers

  34. Magazines Advantages • Selectivity • Reproduction quality • Creative flexibility • Performance • Prestige • Consumer involvement • Services (e.g. research studies) • Disadvantages • Cost • Limited reach and frequency • Long lead time

  35. Magazine Circulation • Primary circulation • Rate base circulation • Pass along readers • Total audience

  36. Chapter 13 Support Media

  37. Out-of-Home Media • Outdoor advertising • Types • 30 and 8 sheet poster • Painted bulletins • Spectaculars • Others • Advantages • Wide coverage of local markets • High potential reach • Geographic flexibility • Creativity (e.g. 3-D boards)

  38. Out-of-Home Media (Continued) B. Disadvantages • Waste • Limited message • Wear-out (weather and route) • Cost for national • Transit advertising A. Types • Inside cards • Outside cards • Station posters

  39. Out-of-Home Media (Continued) • Advantages • Long exposure time (inside cards) • High frequency • Timeless • Geographic selectivity • Low cost • Disadvantages • Poor image • Reach or target audience • Waste • Copy limitations

  40. Out-of-Home Media (Continued) • Other Out-of-Home • Types • Aerial Advertising • Rolling boards (e.g. entire vehicle) • Point of purchase - Video display - Shopping carts • Restrooms, ski-lifts, trash cans • Movie/ video tape advertising • In-flight Advertising • Other

  41. Chapter 14 Direct Marketing

  42. Direct Marketing Reasons for growth of direct marketing • Growth of catalogs • Use of credit cards • Direct marketing companies • Changing American society - “Money rich, time poor” • Technological advances

  43. Direct Marketing Media • Direct mail • Broadcast media • Print media • Telemarketing • The new electronic media • Teleshopping • Infomercials • Videotext

  44. Chapter 16 Sales Promotion

  45. Sales Promotion Defined: A direct inducement that offers an “extra” value or incentive for the product to the sales force, dealers, or the ultimate consumer, with the primary purpose of creating an immediate sale. Reasons for growth of Sales Promotion: • Brand proliferation • Declining brand loyalty • Prompt short-term sales growth • Break through “clutter”

  46. Consumer Sales Promotion • Coupons • Bounce-back • Cross-ruff • Instant • In-store coupon dispenser • Samples • Premiums • Direct • Self Liquidating

  47. Consumer Sales Promotion (Continued) • Bonus Packs • Price-offs • Contests/ Sweepstakes • Event sponsorship

  48. Re-seller (Trade) Sales Promotion • Push money • Promotional allowances • Sales training programs • Dealer incentives (e.g. free goods) • P.O.P. • Trade shows • Contest/ Sweepstakes • Store-traffic demonstrations • Off-invoice • Slotting allowances

  49. Chapter 17 Public Relations, Publicity, and Corporate Advertising

  50. Public Relations • Defined: The management function that evaluates public attitudes, identifies the policies and procedures of the organization, with the public’s interest in mind, and executes a program of action to earn public understanding and acceptance.

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