ADVERTISING
MANAGEMENT
…through the lens of Branding
Dr. Close
Key Participants in IMC Management
Marketing Organization
•Marketing Plan
•Goal & Objectives
•Customer/Prospect
Databases
Advertising Agency
•Research
•Creative Strategies
•Production
•Message Placement
Specialized Promotion
Organizations
•Media Organizations
•Event Management Firms
•Web Site Designers
•Sales Promotions Agencies
•Direct Marketing Agencies
•Public Relations Firms
•P-O-P Agencies & Designers
IMC Management
Personal Selling
Public Relations
Advertising
Sales Promotions
P-O-P
Internet Advertising
Supportive
Direct Marketing
e-Commerce
Sales Promotions
1.23
Integrated Marketing Communications
FACTORS CONTRIBUTING TO IMC’s RISING PROMINENCE
• Fragmentation of Media
• Better Audience Assessment Through Database Technology
• Consumer Empowerment
• Increased Advertising Clutter
• Shifting Channel Power
• Desire of Greater Accountability
1.21
Relationship Between Promotion,
the Promotional Mix, &
Integrated Marketing Communications
PROMOTION
• Communication Process in Marketing
• Used to Create a Favorable Predisposition Toward:
– Brand of Product
– Service
– Idea
– Person
PROMOTIONAL MIX
• Blend of Communications Tools & Activities Used by a Firm
• Carries out the Promotion Process
• Communicates Directly with Target Markets
1.2
Relationship Between Promotion,
the Promotional Mix, &
Integrated Marketing Communications (con’t)
INTEGRATED MARKETING COMMUNICATIONS (IMC)
• Manages the Processes & Activities of Using Promotional Tools
• Unified Way
• Produces a Synergistic Communications Effect
1.3
Relationship Between Promotion,
the Promotional Mix, &
Integrated Marketing Communications (con’t)
• Promotion:
Process
• Promotion Mix:
Tools
• IMC:
Management of the
Promotion Mix
1.4
The Promotional Mix
ADVERTISING
• Paid Mass Media Attempt to Persuade
• Complex System of Strategic Planning &
Creative Genius
INTERNET ADVERTISING
• Electronic Mail (e-mail)
• Internet Relay Chat (IRC)
• Usenet
• World Wide Web (www)
SALES PROMOTION
• Use of Incentives to Generate a Specific Short-Term Response
– Household Consumer
– Trade Buyer
– Business Buyer
1.5
The Promotional Mix
DIRECT MARKETING & e-COMMERCE
• Distinguished From Other Primary Promotional Tools
in 3 Ways
– Uses a Combination of Media
– Designed to Elicit a Direct Response
– Transactions Can Occur Anywhere
• E-Commerce is Another Form of Direct Marketing
– Business is Conducted Between Buyers & Sellers
Using Electronic Exchange Media
1.8
The Promotional Mix
SPONSORSHIP
• Funding an Event
• Creating an Event to Showcase a Firm’s Brand
POINT-OF-PURCHASE
• Materials Used in Retail Setting to Attract Shoppers’ to a
Company’s Brand
SUPPORTIVE COMMUNICATIONS
• Used to Target Audiences Outside Mainstream Media or
Electronic Communications
1.9
The Promotional Mix
PUBLIC RELATIONS
• Communication that can Foster Goodwill Between a Firm
& its Many Constituent Groups
PERSONAL SELLING
• Presentation of Information about a Firm’s Products or
Services by One Person to Another Person or to a Small
Group of People
1.10
The Promotional Mix
ROLE OF PROMOTION IN MARKETING STRATEGY
• Must Have Marketing Strategy Decisions about Products
(Brand)
– Branding – Established Name, Term, Symbol or Design
that Identifies for Consumers that a Product is being
Offered by a Particular Seller & Clearly Distinguished the
Product of that Seller from those Offered by Competitors
1.12
The Promotional Mix
ROLE OF PROMOTION IN MARKETING STRATEGY Affects 3 Key
Aspects of Decision Making with Respect to Brands
– Creating the Marketing Mix
– Achieving Effective Market Segmentation, Product
Differentiation, & Positioning
– Enhancing Revenues & Profits
1.13
The Promotional Mix
– Assumes a Wide Range of Responsibilities
Related to:
• Conception
• Pricing
1.14
The Promotional Mix
ROLE OF PROMOTION IN THE MARKETING MIX (con’t)
– Promotion Affects the Product Area of the
Marketing Mix
• Information & Persuasion
• Introduction of New Brand or Brand Extensions
• Building & Maintaining Brand Loyalty
Among Consumers
• Building & Maintaining Brand Loyalty
Within the Trade
1.15
One Role for Promotion
is to Introduce Brand/Line
Extensions
Example: Extension of
Jell-O into
the Yogurt Market
Go-gurt?
(I say no-gurt!)
1.16
The Promotional Mix
ROLE OF PROMOTION IN MARKETING
_Price
• Effects the Consumer Market
• Effects the Trade Market
– Distribution
• Consumer Access to Brands
• Securing Trade Distribution
1.17
Role of Promotion in Effective Market Segmentation,
Differentiation & Positioning
• Promotion is Important in Helping to
Execute These Strategies
– Market Segmentation
– Product Differentiation
– Positioning
• External
• Internal
1.18
The Role of Promotion in Revenue & Profits
• Sales Occur
– Brand has Well-Conceived Marketing Mix
– Complete Marketing Mix
– Good Promotion
• Large-Scale Demand /Production Produces
– Cost to Produce Item is Reduced
– Known as Economies of Scale
• Brand Loyalty at Any Cost
– Firm Raises Prices
– Known as Inelasticity of Demand
1.19
Promotional Tools Help
Increase Brand Loyalty
(or even brand love)
1.20
Cut Through the
Cr*@!
1.22