Chapter 12 Promotion Integrated Marketing Communication and Advertising Marketing Process Integrated Marketing Communications the concept under which a company carefully integrates the coordinates its many communications channels to deliver a clear consistent and compelling message about the organization and its products Why Conflicting messages from different sources or promotional approaches can confuse company or brand images Major Promotion Decisions sales P Q sales f MM budget objective and task ceiling promotion to sales ratio or percent of sales promotional gross sales stage of life cycle gross revenue sales 100 CGS 20 Net Sales 80 promotion to sales 20 increase gross revenue sales to 150 next period cgs 30 net sales 120 promotion 30 150 20 30 Shaping the Overall Promotion Mix Nature of Each Promotion Tool ADVERTISING positives reaches geographically dispersed buyers low cost per exposure enables repeat messages very expressive tool negatives impersonal not directly persuasive one way communication costly Promotion Mix a company s total marketing communications mix consists of a special blend of advertising sales promotion public relations personal selling and direct marketing tools that the company uses to communicate customer value and build customer relationships also referred to as marketing communications mix IMC Warner Lambert maker of Benadryl advertising and PR to create brand awareness toll free number which provided pollen count in area free samples coupons in depth material ongoing newsletter including advice on how to cope with allergy problems 1 As a Brand Manager for a for Holden Evan a global consumer products company it is your task to develop the brand of Bee a newly acquired energy drink You main task is to create an advertising campaign for the product that successfully competes against established major players in the market A key difference between Bee and other energy drinks is Bee s appeal to women Which of the following is the most important thing to communicate for your first Bee ad a b c d e that Bee tastes great that Bee comes in three flavors that is healthy Bee that Bee is for women my marketing lab s answer that Bee gives you energy 2 Before being sold to Holden Evan Bee had experienced a great deal of success in Denver and had a large market share in the local market One of your assistants advises you to re run the local ads that were being used in Denver just before Bee was sold to Holden Evan Should you take your assistant s advice and re run the Denver adds a Yes Bee was successful in Denver so the Denver ads must be well done and effective b Yes you can save money by using ads that already exist c No there is no reason to save money at this point in the campaign and the Denver ads were for an Bee d No you want to introduce already established product e No if the Denver ads had been successful the regional company would not have been sold Developing an Effective Communication Plan identifying target audience determining communication objectives designing the message selecting the media selecting the message source measuring feedback Step 1 Identifying the Target Audience Target Selection affects what how when where the message will be communicated and who will say it Target Audience may be buyers deciders opinion leaders etc communicate word of mouth employees channel members users influencers Step 2 Determining Communication Objectives Buyer Readiness Stages awareness interest evaluation trial decision confirmation Step 3 Designing the Message An effective message has to Get ATTENTION Hold INTEREST Arouse DESIRE Obtain ACTION Basic Advertising Objectives R reminding I informing P persuading AIDA Model message content contains appeals or themes designed to produce desired results rational appeals emotional appeals love pride joy humor fear guilt shame and moral appeals which appeal Step 3 Designing a Message continued message structure whether or not to draw a conclusion one sided vs two sided argument order of argument presentation message format why is it important design layout copy color shape movement words sounds voice body language dress etc Step 4 Choosing Media personal communication channels includes face to face phone mail and internet chat communications word of mouth buzz marketing non personal communication channels includes media atmosphere and events step 5 selecting the message source step 6 collecting feedback recognition recall and behavioral measures are assessed 3 You are considering using a persuasive approach in your initial ad campaign for Bee Which of the following should you try to persuade your customers to do a drink energy drinks rather than water b give up their old energy drink c give Bee a try recognize that their old energy drink was for men not for women d tell others how delicious Bee is e 4 A member of your team thinks that you need to focus on getting people to switch to Bee Which strategy would be most effective in getting people to switch to Bee a point out the strengths of b point out the weaknesses of Bee s competitors c point out the benefits of an energy drink d e demonstrate how Bee can turn its users into world class athletes show how drinking an energy drink for men can be harmful to women Bee 5 In determining an advertising budget someone in the finance department suggests that you use the affordable method of advertising budgeting that is based on the product s current profits Should you take this suggestion and use the affordable method of advertising budgeting a Yes it is more responsible to base an advertising budget on current rather than future profits b Yes you can adjust the budget up as the product becomes more successful c No you should base a budget for a new product on the amount that competitors spend on advertising d No a new product cannot be expected to have enough profits at this point that support a high advertising budget e No a product this promising should have an advertising budget with absolutely no limits 6 You are considering this message for the product Bee the woman s healthy choice to renew your energy Which of the following most concerns you about adopting this message for the product a The message focuses exclusively on women possibly causing men to feel b The message focuses exclusively on health an aspect of Bee that is not a excluded key feature c The message fails to focus on sports performance d The message fails to identify any of the key ingredients in