MAR3023 Module 4 Advertising Promotions and Pricing Integrated Marketing Communications IMC Marketing Communications Today is a macro view of marketing communication strategy Promotions Mix IMC Push Pull strategies Communication Process Response Model What is Promotion Promotion encouragement of the progress growth or acceptance of something furtherance advancement development In Marketing Promotion One of the four elements of the marketing mix The communication link between sellers and buyers for the purpose of influencing informing or persuading a potential buyer s purchasing decision Marketing Communications You might remember your favorite ad Dr Brady s favorite Terry Tate Reebok Commercial 03 Super Bowl Advertising Promotion Companies have bought into the idea of understanding that advertising really drives a lot of their business Advertising becomes more and more important as competitiveness increases in each market and as differentiation decreases Top Advertisers Proctor Gamble P G HQ in Cincinnati Own a lot of different products variety diversify their portfolio steady growth rate Promotion Mix know elements APPS and be able to identify examples of each graph below Advertising a paid non personal communication about an organization and its products transmitted to a target audience through mass media Personal Selling a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation Public Relations a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders MAR3023 Module 4 Advertising Promotions and Pricing Sales Promotion an activity or material that acts as a direct inducement offering added value or incentive for the product to resellers salespeople or customers free samples games rebates sweepstakes contests premiums and coupons Determine how to allocate promotion mix How to get message to consumers Integrated Marketing Communications Coordination of promotion and marketing efforts for maximum impact Focused on delivering one message to consumers Traditional Promotion Mix Media advertising publicity sales promotion packaging direct response interactive marketing direct marketing public relations special events point of purchase Separate in ways that were counterproductive for the messages they were delivering to consumers Integrated Marketing Communications IMC puts them in a way that is coordinated so that they fit neatly together So the message is consistent Goals of IMC Consistent message to customers Coordinate manage promotional efforts Synchronization of promotional elements Use more precisely targeted promotional tools Example of Integrated Communications How would you target guys with diet drinks Make the can manly Black can colors design that fit what men are looking for Don t use the word diet Sponsor NASCAR MAR3023 Module 4 Advertising Promotions and Pricing 2 General Promotion Strategies Push Policy promoting a product only to the next institution down the marketing channel pushing it down the distribution channel The producer promotes the product to wholesalers the wholesalers promote it to retailers and the retailers promote it to consumers Trade shows and personal selling Push money also known as spiffs an extra commission paid to retail employees to push products Pull Policy promoting a product directly to consumers to develop strong demand that pulls products through the marketing channel Ex children s toys get kids excited about the toys they are selling Parent seeks out product demand comes from consumer Ford Australia only produces a car when a customer orders one Dell did the same thing Communication Process The process that describes the exchange of information between two or more people Be familiar w how process works Messages are sent through channels letters emails in person etc Elements in the Communication Process Starts at the top with Sender Source and goes clockwise The Source The Source the person organization that has information to share Company Salesperson Celebrity have Q scores Which celebrities will command the most to endorse a product Q Scores change over time show how popular celebrity is Q Scores Q quality score considers two factors Consumers level of familiarity with a name who have heard of them The number of responses who indicate that a person program or character is a favorite The score is calculated by dividing the two numbers Some argue that Q is better than Nielsen So if 50 are familiar and 10 list as a favorite then the score is 20 The average is 18 Companies want to make sure a celebrity has a high Q score Encoding Encoding the process of putting words thoughts messages into symbolic form in such a way that they will be understood by the receiver consumers Symbols are particularly good at this MAR3023 Module 4 Advertising Promotions and Pricing ex Starbucks McDonalds Nike swoosh The Channel The Channel how the communication travels from the source to the receiver Two types 1 Nonpersonal channels no personal contact with consumer Print broadcast 2 Personal channels involves direct contact Direct selling salespeople word of mouth buzz marketing Survey respondents who day they daily 56 1 watch television 53 3 use the Internet 34 3 listen to the radio 33 5 read print newspapers 5 8 read print magazines Buzz Marketing Buzz Marketing a subset of viral marketing wherein companies hire socially active consumers to promote products to their friends relatives and acquaintances Consumers are typically unaware that the person is on the payroll Sony Ericsson used undercover marketers to act like tourists for the purpose of promoting its digital camera phone P G s Tremor company employs 250 000 teens between the ages of 13 19 to promote its products Pantene shampoo Pringles Covergirl cosmetics Tremor also has other customers like 500 000 Moms and charges 1 million per campaign Decoding Decoding the process of transforming the message back into thought The key is for the decoded message to resemble the encoded message Make sure customers understand the intended message Problems can occur if there is too much noise Noise anything that interferes with or distorts the message Decoding Gone Wrong Panasonic created a new web browser and had received license to use the cartoon character Woody Woodpecker as an interactive internet guide The day before the huge marketing campaign Panasonic realized its
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