Managing the IMC Process

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Managing the “IMC” Process

Activity

• Think about the people you tried to persuade over the last day or two.

– Who were the people?

– What were you trying to accomplish?

– Were you successful? If so, why? If not, why not?

Major Types of Advertising

Institutional

Advertising

Product

Advertising

Enhance corporation’s identify

Advocacy advertising

Pioneering

Competitive

Comparative

Money and Trust…

Advertising Campaign

A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.

Creating the Ad Campaign

Determine the advertising objectives.

Make creative decisions.

Make media decisions.

Evaluate the campaign.

Objectives

• Inform, Persuade, Remind

• Where in PLC?

• Where in AIDA?

• What other important factors?

• Be specific, quantifiable and time oriented

Common Advertising Appeals

Profit

Health

Love or romance

Fear

Product saves, makes, or protects money

Appeals to body-conscious or health seekers

Used in selling cosmetics and perfumes

Social embarrassment, old age, losing health

Admiration

Convenience

Reason for use of celebrity spokespeople

Used for fast foods and microwave foods

Fun and pleasure Key to advertising vacations, beer, parks

Vanity and egotism

Environmental

Consciousness

Used for expensive or conspicuous items

Centers around environmental protection

Musical

Scientific Slice-of-Life

Lifestyle

Demonstration

Mood or

Image

Real/

Animated

Product

Symbols

Common

Executional

Styles

Humorous

Spokesperson/

Testimonial

Fantasy

What people say they like…

Demonstration

Slice of Life

Testimonial

Lifestyle

Media Decisions

(know the +/- of each)

Newspapers

Magazines

Major Types of

Advertising

Media

Radio

Television

Outdoor

Internet

Alternative Media

The New Tactics

• Video games ( Media & Marketing News July 28, 2004 )

• 14.2% people play videogames for leisure; 64 hours spent playing games in 2002; 42 million own gaming console

• Nascar 2005 Chase for the Cup – Advertisers include

AutoZone, Dodge, Levi’s Signature, Mr. Clean AutoDry,

Old Spice

• Jeep’s Trail of Life – 250,000 downloads & 40% intentions

• US Army – America’s Army PC online and CD-Rom

• Online tactics ( USA Today June 22, 2004 )

• Burger King is the King – subservient chicken & Ugoff

• BMW Films

• Online expected to exceed print advertising by 2007

The New Tactics

• Longer Ads ( Wall Street Journal July 22, 2004 )

• Moving from :30 to 2 minute ads

• Stella Artois beer, P&G, Honda, Under Armour

• Advertainment ( USA Today June 22, 2004 )

• Mattel’s Hot Wheels will star in a feature length movie

• Yahoo’s Times Square billboard where 800 number got consumers racing cars for all to see

• Cinema Advertising

• Creativity in outdoor (adidas)

Media Terms to Know

• Media planning – series of decisions involved in delivering the message to the target audience.

• Media objectives – objectives sought by the plan

• Medium – general category of media channels [broadcast, print]

• Media vehicle – specific carrier in the media category [television, magazine & specifics]

Media Concepts to Know

• Designated Market Areas (DMA) – NYC is largest

• Cost Per Thousand (CPM) – used for print cost comparison

• Cost Per Rating Point (CPRP) – used for broadcast cost comparison

• Sweeps – Neilson Grading (4 times a year) – currently testing a new method – The people meters.

Comparing Media Costs - Magazines

Per page cost

Circulation

Time Magazine

$156,000

4 million

Calculation of CPM

CPM

156,000 x 1000/4 million

$39.00

Newsweek Magazine

$144,000

3.1 million

144,000 x 1000/3.1 million

$46.45

Media Selection Criteria

Cost per

Contact

Reach

Frequency

Audience

Selectivity

The cost of reaching one member of the target market.

The number of target consumers exposed to a commercial at least once during a time period.

The number of times an individual is exposed to a message during a time period.

The ability of an advertising medium to reach a precisely defined market.

Media Schedules

Continuous

Media Schedule

Flighted

Media Schedule

Pulsing

Media Schedule

Seasonal

Media Schedule

Advertising is run steadily throughout the period.

Advertising is run heavily every other month or every two weeks.

Advertising combines continuous scheduling with flighting.

Advertising is run only when the product is likely to be used.

Evaluation

• Brand recognition

• Brand recall

• Attitudes & intentions to purchase

• Use research tools again!!

• Share of expenditure, share of voice, share of mind and heart and share of market

The Confusion of ROI

• Incremental sales revenue created by marketing

• Changes in brand awareness

• Total sales revenue generated by marketing activity

• Changes in purchase intentions

• Changes in attitudes toward brand

• Changes in market share

• Number of leads generated

• Ratio of ad costs to sales revenues

• Cost per lead generated

• Reach/frequency

• Gross rating points

• Cost per sale generated

• Post buy analysis of media

• Increase in lifetime value

Public Relations

The Role of

Public Relations

Evaluates public attitudes

Identifies issues of public concern

Executes programs to gain public acceptance

Public Relations Functions

• Press/media relations

• Product publicity

• Corporate communication

• Lobbying

• Counseling/crisis management

• Viral marketing

• Creating WOM

BW , 5.17/99

Major Tools for Marketing PR

Publications

Events

Internal

& External

Audiences

Sponsorships

News

Speeches

Public Service Activities

Sales Promotion

Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase.

Consumer Promotions

Trade promotions

Competitor’s

Customers

Price Buyers

Objectives of Sales

Promotions

Type of Buyer

Loyal Customers

Brand Switchers

Desired Results

Sales Promotion

Examples

• Reinforce behavior

• Increase consumption

• Change timing

• Loyalty marketing

• Bonus packs

Break loyalty

Persuade to switch

• Sampling

• Sweepstakes, contests, premiums

• Persuade to buy your brand more often

• Price-lowering promotion

• Trade deals

• Appeal with low prices

• Supply added value

• Coupons, price-off packages, refunds

• Trade deals

Why Use Sales Promotions?

Immediate Purchases

Increase Trial

Uses of

Sales

Promotion

Boost consumer inventory

Encourage repurchase

Increase ad effectiveness

Encourage brand switching

Encourage brand loyalty

Major Consumer

Promotion Tools

• Samples

• Coupons

• Case refund offers

(rebates)

• Price packs

• Premiums

• Frequency programs

• Prizes (contests, sweepstakes)

• Patronage awards

• Free trials

• Warranties

• Tie in promotions

• Cross promotions

• POPs

Major Trade Promotion Tools

• Price Off (off invoice, off list)

• Allowance

• Free Goods

• Trade shows

• Sales contests

• Specialty Advertising

Direct Marketing

• The use of consumer direct channels to reach and deliver goods and services to customers w/out intermediaries

• Talk more in retailing about direct marketing

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