Mark 3000 1st Edition Lecture 13Outline of Last Lecture I. Price II. 5 C’s of Pricing III. Legal Aspects and Ethics of Pricing Outline of Current Lecture I. Integrated Marketing Communications II. AIDA Model III. Methods of Promotion IV. Advertising Current lecture Integrated Marketing Communications: Represents the promotion dimension of the Four P’s. - Encompasses a variety of communication disciplines in combination to provide clarity, consistency and maximum communicative impact- 3 Elements: consumer, channels, evaluation of results of communication The AIDA model: common model of series of mental stages through which consumers move as a result of marketing communications: awareness leads to interests, which lead to desire, whichleads to action Different levels of communications in promotion A: Awareness of the product, Leads the customer to think - Aided recall: consumers know the brand when name is presented to them - Top of mind answers: when consumers mention a specific brand name first I: Interest in the product, Leads the customer to think D: Desire for the product, Leads the customer to feel the need for the product A: Actions of buying the product, Leads the customer to purchase the product - Lagged effect: delayed response to marketing communication campaign The Goal of promotion is to move the product through the AIDA Model Methods of Promotion: These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Advertising: Paid from of communication from identifiable source delivered through a communication channel and designed to persuade receiver to take some action - Paid and from identified source, uses mass media Public relations: Actions to maintain positive relationship with community and media. Not directly paid Personal selling: Two way flow of communication between buyer and seller Sales promotion: Special incentives that encourage purchase of a product or service - Coupons, rebates, free samples etc. Direct Marketing: Marketing that communicates directly with target customers to generate a response or transaction Online/Social Media: delivering electronically Advertising Most visible Element of Integrated marketing communication Extremely effective at creating awareness and generating interest Steps in planning and executing an Advertising Campaign 1. Identify Target Audience a. Firms need to do research to identify target audience and set the tone for the advertising program b. Must keep in mind that target audience can be different than the current users ofthe product 2. Set Advertising Objectives a. Push strategy: Increase demand by motivating sellers to highlight the product rather than the product of competitors and thereby push the product into consumers i. Aimed at channel members (wholesalers, retailers) ii. Mostly use personal selling or trade sales promotion b. Pull Strategy: Get consumers to pull the product into the supply chain by demanding it i. Aimed at final consumer ii. Advertising, consumer sales promotions, online promotions c. Overall Goals or objectives of Advertising i. Inform: Informative advertising. Builds brand awareness 1. Used in introductory stages of life cycle 2. Focus on education or creating buzzii. Persuade: Used in the growth and early maturity stages of PLC1. Main goal of comparing brands and focuses on features and advantages iii. Remind: Used in the Maturity stage of PLC 1. Main goal is to remind or prompt repurchases2. Not a lot of information d. Focus of Advertisements i. Product Focused Advertisements: persuade, inform or remind consumers about a specific product or service ii. Institutional Advertisements: Inform, persuade, or remind consumers about issues related to places, politics, or an industry. Ex. Got Milk campaign1. Corporate Image: The image of the company as a whole 2. Corporate Advocacy: Company takes a position on a social issue a. Ex. Stop texting and driving, cancer research 3. Public Service Announcements (PSA): Focus on public welfare and are generally sponsored b nonprofit groups 3. Determine advertising budget: a. Methods: i. % Of sales: Use % of sales of previous year, It is simple and easy but may give wrong direction 1. Ex. If you had bad sales in the previous year then by this method you would invest little in advertising which could be harmful ii. Competitive Parity: Keeping up with the advertising budget of competitors b. Nature of the market and the product also influence the size of the budget i. Ex. Would spend less money advertising luxury products in a recession 4. Convey the message a. USP: Unique Selling Proposition: Strategy of differentiating a product by communicating its unique attributes; often becomes common theme or slogan inentire advertising campaign i. What am I Selling? ii. The message people take away about my product from the advertisement1. Ex. Red bull gives you wings b. Messages must be Truthful and meet standards for images and language c. Puffery: Legal exaggeration, Legal lying i. Exaggerating something to a point where it is assumed that it is false d. Must select how to convey the Message:i. Informational Appeal: Help consumers make purchase decisions by offering factual information that encourages consumers to evaluate brandfavorability on basis of key benefits that it providesii. Emotional Appeal: Aims to satisfy consumers emotional desires rather than their utilitarian needs 1. Focus on feelings about self 2. Create a bond between consumer and brand 3. Fear, Safety, humor, happiness, love, comfort