Slide 1The Changing Communication EnvironmentAs a Response to this Changing Environment …This has led to Integrated Marketing CommunicationsThe Need for IMCIntegrated Marketing CommunicationMarketing Communications MixMarketing Communications MixMarketing Communication MixPush vs. Pull Promotion StrategyLets look at an example-two companies, same industryAdvertisingMajor Decisions in AdvertisingSetting Advertising ObjectivesMajor Decisions in AdvertisingSetting the Advertising BudgetMajor Decisions in AdvertisingDeveloping Advertising StrategyThe Message StrategyMessage ExecutionMajor Decisions in AdvertisingAnalysis of MediaChoosing Media TypeSelecting Advertising MediaChoosing Media TypeSelecting Communications MediaDeciding on Media TimingMajor Decisions in AdvertisingEvaluating AdvertisingAssessing Advertising EffectivenessBreaking NewsSlide 32Why advertise online?The PlayersA Big Selling Point for Online: AnalyticsOther Advertising ConsiderationsPublic RelationsThe Good and Bad of PRPublic Relations ToolsCommunicating Customer Value: Advertising and Public RelationsChapter 12Several factors are changing the face of marketing communications:Consumers are better informed and more communications empowered. Mass markets have fragmented, leading to a shift away from mass marketing Changes in communications technology have created new media for interacting with targeted consumers.The Changing Communication EnvironmentFirms are doing less broadcasting and more narrowcasting.Specialty magazinesCable TVVideo on demandInternet catalogsPodcastsProduct placements in TV and video gamesEx: Zip Lock containers on Biggest Loser TV programAs a Response to this Changing Environment …This has led to Integrated Marketing CommunicationsA strong need for integrated marketing communications (IMC) exists because conflicting messages from different sources can create confusion or blur brand perceptions.The Need for IMCUsing IMC, the company carefullyintegrates and coordinates its manycommunication channels to delivera clear, consistent, and compelling message about the organizationand its brands.Integrated Marketing CommunicationMarketing Communications MixAdvertisingAny paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.Sales PromotionShort-term incentives to encourage the purchase or sale of a product or service.Marketing Communications MixPublic RelationsBuilding good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.Personal Selling personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.Marketing Communication MixDirect MarketingDirect connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—the use of telephone, mail, fax, e-mail, the Internet, and other tools to communicate directly with specific consumers.Push vs. Pull Promotion StrategyLets look at an example-two companies, same industry Michelin Ad’s toward consumers PULL strategy Continental TIREDon’t advertise to consumers, ad to retailers PUSH strategy 11AdvertisingNorth American advertisers spent $192 billion in 2013; worldwide spending was $500 billion.Advertising is used by:Business firms Nonprofit organizations ProfessionalsSocial and political GovernmentMajor Decisions in AdvertisingSetting Advertising ObjectivesAn advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time.Classified by purpose:Inform PersuadeCompare RemindMajor Decisions in AdvertisingSetting the Advertising BudgetAfordable Based on What the Company Thinks it Can Afford** Objective-and-Task(BEST APPROACH) Set Objectives, Determine Tasks to Achieve Objectives,Sum of Task Costs Equals Budget ** Objective-and-Task(BEST APPROACH) Set Objectives, Determine Tasks to Achieve Objectives,Sum of Task Costs Equals Budget Percentage-of-SalesBased on a percentage of current forecasted sales Percentage-of-SalesBased on a percentage of current forecasted sales Competitive-ParitySet budget to match competitorsCompetitive-ParitySet budget to match competitorsMajor Decisions in AdvertisingDeveloping Advertising StrategyConsists of two major elements:Creating advertising messages What are we going to say?Selecting advertising mediaWhere are we going to say it?The Message Strategy Identify Customer BenefitsDevelop Compelling Creative ConceptThe “Big Idea”Advertising Appeals Should BeMeaningful, Believable, & DistinctiveMessage ExecutionSlice of LifeSlice of LifeLifestyleLifestyleFantasyFantasyMood or ImageMood or ImageMusicalMusicalPersonality SymbolPersonality SymbolTechnical ExpertiseTechnical ExpertiseScientific EvidenceScientific EvidenceTestimonial Evidenceor EndorsementTestimonial Evidenceor EndorsementTypicalApproachesMajor Decisions in AdvertisingAnalysis of MediaMedia Type Media VehicleNetwork Television Big Bang TheoryCable Television Breaking BadMagazine Sports IllustratedOnline Yahoo!Etc. Etc.22Choosing Media TypeFactors to consider:Media habits of target consumersSelecting Advertising MediaReachPercentage of those in the target market exposed to an ad at least once during a specified time periodFrequencyAverage number of times a person from the target market is exposed to ad during a specified time periodMedia ImpactReach x Frequency, sometimes expressed as GRP’s or Gross Rating PointsChoosing Media TypeFactors to consider:Media habits of target consumersNature of the productType of messageCostSelecting Communications MediaCost considerations:CPM, or cost per thousand = cost of running the ad  Number of total contacts (expressed in thousands)Example: advertisement shown on Big Bang TheoryNielsen ratings reveal that average “key demographic” viewership (18-49 year olds) for Big Bang Theory is 20 millionCost of advertisement is $326,260CPM = $326,260  20,000 = $16.31Caveats in using CPM numbers:Measures of efficiency, not effectivenessCan’t be compared across mediaCan be misleading even within a mediumDeciding