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Overview of Integrated Marketing Communications




The process of planning, creation, integration, and
implementation of diverse forms of marketing communications
that are delivered over time to a brand’s targeting customers
and prospects.




                                                                2
Overview of Integrated Marketing Communications




                                    3
The Marketing Communications Process and Brand-Equity Enhancement
The Marketing Communications Process and Brand-Equity Enhancement




A brand possesses equity to the extent that consumers are
familiar with the brand and have stored in their memory
warehouses favorable, strong and unique brand associations
The Marketing Communications Process and Brand-Equity Enhancement




                        Brand Awareness

An issue of whether a brand name comes to mind when
consumers think about a particular product category and the
ease with which the name is evoked



                          Brand Image

The types of associations that come to the consumer’s mind
when contemplating a particular brand
The Marketing Communications Process and Brand-Equity Enhancement




                                                                   Non-Product-Related
                                 Brand
                                                                  (e.g., Price, Packaging,
                               Recognition                       User and Usage Imagery)
              Brand
            Awareness
                                  Brand            Attributes
                                  Recall                             Product-Related
                                                                     (e.g., color, size,
                                                                     design features)
  Brand
Knowledge
                                Types of
                           Brand Associations       Benefits             Functional
             Brand
             Image                                                        Symbolic
                              Favorability,
                                                    Overall
                              Strength, and
                                                   Evaluation           Experiential
                              Uniqueness of
                                                   (Attitude)
                            Brand Association
The Marketing Communications Process and Brand-Equity Enhancement
Positioning and Targeting for MarCom Efforts




                                                                   Non-Product-Related
                                                                  (e.g., Price, Packaging,
                                                                 User and Usage Imagery)
              Brand
            Awareness
                                                  Attributes
                                                                     Product-Related
                                                                     (e.g., color, size,
                                                                     design features)
  Brand
Knowledge
                             Types of
                        Brand Associations         Benefits              Functional
             Brand
             Image                                                        Symbolic
                          Favorability,
                                                   Overall
                          Strength, and
                                                  Evaluation            Experiential
                          Uniqueness of
                                                  (Attitude)
                        Brand Association
Positioning and Targeting for MarCom Efforts
Positioning and Targeting for MarCom Efforts




Products that attempt
to fulfill the consumer’s
consumption-related
problems
Positioning and Targeting for MarCom Efforts




An appeal to
symbolic needs
Positioning and Targeting for MarCom Efforts




An appeal to experiential needs
Positioning and Targeting for MarCom Efforts




Children and
teenagers
Positioning and Targeting for MarCom Efforts
Positioning and Targeting for MarCom Efforts




Fulfillers
Positioning and Targeting for MarCom Efforts




Experiencers
Positioning and Targeting for MarCom Efforts




Makers
The Communication Process, Meaning Creation, and the Fundamentals of
                              Consumer’s Use of MarCom Information
The Communication Process, Meaning Creation, and the Fundamentals of
                                             Consumer’s Use of MarCom Information




Drawing meaning
from the culturally
constituted world
The Communication Process, Meaning Creation, and the Fundamentals of
                                   Consumer’s Use of MarCom Information




Use of Metaphor
The Communication Process, Meaning Creation, and the Fundamentals of
                                           Consumer’s Use of MarCom Information




How consumers process and respond to marketing
communications stimuli and make choices among brands
Two models of consumer behavior
    › CPM and HEM
Consumer behavior is too complex and diverse to be explained
by two extreme models
The Communication Process, Meaning Creation, and the Fundamentals of
                                            Consumer’s Use of MarCom Information




Consumer Processing Model (CPM)

Behavior is seen as rational, highly cognitive, systematic, and
reasoned

Hedonic, Experiential Model (HEM)

Consumer behavior is driven by emotions in pursuit of “fun,
fantasies, and feelings”
The Communication Process, Meaning Creation, and the Fundamentals of
                                          Consumer’s Use of MarCom Information




An advertisement
exemplifying
the CPM approach
The Communication Process, Meaning Creation, and the Fundamentals of
                                          Consumer’s Use of MarCom Information




An advertisement
exemplifying
the HEM approach
Persuasion in Marketing Communications




Cognitive        Affective               Conative

 A person’s      Feelings and              A person’s
 beliefs about    evaluations               behavioral
 an object or                                tendency
     issue                                  toward an
                                               object




                                                      26
Persuasion in Marketing Communications




                     Persuasion

Important element of marketing
Attempt to guide people toward the acceptance of some
belief, attitude, or behavior by using reasoning and
emotional appeals
Sometimes viewed as unethical
Many forms




                                                            27
Persuasion in Marketing Communications




Using persuasion
for reformulated
brand of
orange juice




                                             28
Persuasion in Marketing Communications




        Opportunity




Motivation             Ability


                                          29
Persuasion in Marketing Communications




    Attend to the
      message
•Appeal to hedonic
needs
•Using novel stimuli   Process brand info
•Use intense cues      •Increased relevance
•Use motion            of brand
                       •Increased curiosity
                       about brand
                                                   30
Persuasion in Marketing Communications




Using novelty to attract
attention




                                                     31
Persuasion in Marketing Communications




The use of
surprise
to enhance
processing
motivation




                                       32
Persuasion in Marketing Communications




 Encode information
•Repeat brand
information
•Repeat key scenes
•Repeat the ad

                  Reduce processing time
                 •Using picture and imagery

                                                     33
Persuasion in Marketing Communications




The use of
pictorials
to create
gestalt processing or reduce
processing time




                                                         34
Persuasion in Marketing Communications




Access knowledge structure
•Provide a context


              Create Knowledge structure
             •Facilitate example- based
             learning

                                                     35
Persuasion in Marketing Communications




Creating knowledge
structures by facilitating
exemplar-based
learning




                                                       36
Persuasion in Marketing Communications




                          37
Persuasion in Marketing Communications




Using authorities in
a field to promote
the product




                                                 38
MarCom’s Role in Facilitating Product Adoption




           Coupons                                  Product
                        Distribution
                                                  Satisfaction



  Free     Awareness          Trier                   Repeater
Samples       Class           Class                     Class




          Advertising        Price


                                                          39
MarCom’s Role in Facilitating Product Adoption




                                      Free
Awareness Class                     Samples
                                                    Coupons         Advertising


                                                                    Distribution


 Variables: free samples, coupons, advertising, and distribution
 Successful introduction of new products requires an effective
 advertising campaign, widespread product distribution, and
 extensive couponing and sampling




                                                                     40
MarCom’s Role in Facilitating Product Adoption




                                Coupons       Distribution            Price
  Trier Class




Variables: coupons, distribution, and price
Once the consumers becomes aware of a new product, there is
an increased probability that they will actually try the new
offering




                                                                 41
MarCom’s Role in Facilitating Product Adoption




                                 Advertising         Price         Distribution
Repeater Class
                                                                     Product
                                                                   Satisfaction


Variables: advertising, price, distribution and product satisfaction
Consumers repeat the purchase if advertising reminds them
about the brand, if the price is reasonable, if the brand is
accessible in retail outlets, and if product quality is satisfactory




                                                                    42
MarCom’s Role in Facilitating Product Adoption




 Relative        Innovation                 Observability
Advantage          Related
                Characteristics



Compatibility                                Trialability

                 Complexity

                                                          43
MarCom’s Role in Facilitating Product Adoption




Another
illustration of
relative advantage




                                                       44
MarCom’s Role in Facilitating Product Adoption




Compatibility




                                                  45
MarCom’s Role in Facilitating Product Adoption




Offsetting perceived
product complexity




                                                         46
MarCom’s Role in Facilitating Product Adoption




Trialability




                                                 47
MarCom’s Role in Facilitating Product Adoption




High Visibility




                                                    48
MarCom’s Role in Facilitating Product Adoption




                                                   Mean Time
                                                       of
                                                   Adoption

Innovators
  (2.5%)
                 Early         Late
       Early   Majority      Majority
    Adopters    (34%)         (34%)               Laggards
     (13.5%)                                        (16%)




                                                            49
MarCom’s Role in Facilitating Product Adoption




                     100

                      90

                      80
Potential Adopters




                      70      “Desired” Pattern
                      60

                      50
                           Introduction      “Typical” Pattern
                      40

                      30

                      20

                      10

                       0

                              Time of Adoption
                                                                        50
Brand Names, Logos, Packages, and Point-of-Purchase Materials




Affects the speed with which consumers become aware of the
brand
Influences the brand’s image
Plays major role in brand-equity information




                                                                   51
Brand Names, Logos, Packages, and Point-of-Purchase Materials




Distinguish the brand from competitive offerings
Describe the brand and its attributes
Achieve compatibility with a brand’s desired image and with
its product design or packaging
Be memorable and easy to pronounce and spell




                                                                     52
Brand Names, Logos, Packages, and Point-of-Purchase Materials




A new brand name




                                                                    53
Brand Names, Logos, Packages, and Point-of-Purchase Materials




Graphic design element that is related to the brand name
Companies use logos with or without brand names
Not all brand names possess a distinct logo but many do
e.g., the Nike swoosh, Ralph Lauren’s Polo




                                                                     54
Brand Names, Logos, Packages, and Point-of-Purchase Materials




Recognized readily
Convey essentially the same meaning to all target members
Evoke positive feelings
Best strategy is to choose a design that is moderately elaborated
rather than too simple or too complex




                                                                      55
Brand Names, Logos, Packages, and Point-of-Purchase Materials




Sailor Jac, The famous Cracker Jack




                                                       56
Brand Names, Logos, Packages, and Point-of-Purchase Materials




Contain and protect the product
Draw attention to a brand
Break through competitive clutter at the point of purchase
Justify price/value to the consumer
Signify brand features and benefits
Motivate consumers’ brand choices




                                                                    57
Brand Names, Logos, Packages, and Point-of-Purchase Materials




                                   Color


Design and Shape
                                                       Physical
                                                       Materials


                                                   Product Information
                                                       on Package


* VIEW Model (Visibility, Information, Emotional appeal, Workability)


                                                                         58
Brand Names, Logos, Packages, and Point-of-Purchase Materials




          Color

   Design, Shape

           Size
Physical Materials

Information labeling

                                                 59
Brand Names, Logos, Packages, and Point-of-Purchase Materials




Visibility

       Information

                Emotional Appeal

                               Workability
                                                              60
Brand Names, Logos, Packages, and Point-of-Purchase Materials




Visibility




                                                              61
Brand Names, Logos, Packages, and Point-of-Purchase Materials




Illustration of packaging information for Gardenburger
Veggie Patties
                                                                  62
Brand Names, Logos, Packages, and Point-of-Purchase Materials




Emotional
appeals in the
packaging of
WOW!




                                                                  63
Brand Names, Logos, Packages, and Point-of-Purchase Materials




Point-of-purchase; store environment
A final opportunity to affect consumer behavior
Many product-and-brand choice decisions are made at this
time
It is the time and place at which all elements of the sale
(consumer, money and product) come together




                                                                    64
Brand Names, Logos, Packages, and Point-of-Purchase Materials




                             displays intended for six
Permanent P-O-P
                             months or more

Temporary and
 Semipermanent
    P-O-P


In-Store Media



                                                                  65
Brand Names, Logos, Packages, and Point-of-Purchase Materials




Permanent display
for Sesame Street
toys




                                                                     66
Brand Names, Logos, Packages, and Point-of-Purchase Materials




                               displays intended for six
 Permanent P-O-P
                               months or more


  Temporary and                displays intended for
Semipermanent P-O-P            fewer than six months



  In-Store Media



                                                                    67
Brand Names, Logos, Packages, and Point-of-Purchase Materials




          Semipermanent display




                                                 68
Brand Names, Logos, Packages, and Point-of-Purchase Materials




                               Temporary
                                display




                                                 69
Brand Names, Logos, Packages, and Point-of-Purchase Materials




                               displays intended for six
 Permanent P-O-P
                               months or more


  Temporary and                displays intended for
Semipermanent P-O-P            fewer than six months


                               executed by a third party
  In-Store Media               (P-O-P radio, shopping
                               cart ads, shelf talkers,
                               coupon dispensers, etc..)
                                                                    70
Brand Names, Logos, Packages, and Point-of-Purchase Materials




ActMedia
in-store
advertising cart




                                                                71
Brand Names, Logos, Packages, and Point-of-Purchase Materials




                             Computerized units that
  Interactive                allow consumers
   Displays                  to obtain information
                             about the product


    Video                    Audio and video
Merchandising                presentations that
   Centers                   perform informational
                             and transactional
                             functions
                                                                 72
Overview of Advertising Management




          Informing

          Persuading

          Reminding

         Adding Value

Assisting Other Company Efforts

                                          73
Overview of Advertising Management




   Advertising Strategy
       • Setting Objectives
      •Formulating Budgets
     •Creating Ad messages
•Selecting Ad Media and Vehicles


  Strategy Implementation


 Assessing Ad Effectiveness
                                            74
Overview of Advertising Management




The   hierarchy of effects metaphor implies that for advertising to
be successful it must move consumers from one goal to the next
goal


                                                                  75
Overview of Advertising Management




The best(optimal) level of any investment is the level that
maximizes profits(MR=MC)
Advertisers should continue to increase their advertising
investment as long as it is profitable to do so



           MC                               MR
= (Change in total cost) = (Change in total Revenue)
  (Change in quantity)       (Change in quantity)

        = TC/Q                           = TR/Q


                                                             76
Overview of Advertising Management




Percent-of-Sales Budgeting
Objective-and-Task Method
Competitive Parity Method
       (match competitors method)
Affordability Method




                                                           77
Creative Advertising Strategy




           Consumer’s
 Sound
              View          Persuasive
Strategy


             Effective
            Advertising




 Break     Deliver on       Doesn’t
 Clutter   Promises        Overwhelm
                                             78
Creative Advertising Strategy




The Role of Creativity




                                         79
Creative Advertising Strategy




Background            Their current
                  thoughts/feelings

Strategy           What do we want
                  them to think/feel

Task              What do we want
                       them to do

Positioning                Proposition

Client’s        Belief in proposition
Objectives
Target        How we speak to them
                                   80
Creative Advertising Strategy




Definition     Superiority claims based on
               unique physical feature or
               benefit

Conditions     Most useful when point of
               difference cannot be readily
               matched by competitors


Competitive    May force competitors to imitate
               or choose more aggressive
Implications
               strategy

                                                     81
Creative Advertising Strategy




Definition     Claims based on psychological
               differentiation, usually symbolic
               association

Conditions     Best for homogeneous good
               where differences are difficult to
               develop; easily duplicated


Competitive    Most often involve prestige
Implications   claims; rarely challenge
               competition directly

                                                      82
Creative Advertising Strategy




Definition     Attempts to evoke stored
               experiences of prospects to
               endow product with relevant
               meaning or significance

Conditions     Best for socially visible goods;
               requires considerable consumer
               understanding to design
               messages

Competitive    Few direct limitations on
Implications   competitor’s options; most likely
               competitive response is imitation

                                                      83
Creative Advertising Strategy




Definition     Attempts to provoke involvement
               or emotion through ambiguity,
               humor without strong selling
               emphasis


Conditions     Best suited to discretionary
               items; effective use depends on
               competitor response

Competitive    Competitors may imitate to
Implications   undermine strategy of difference
               or pursue other alternatives

                                                     84
Creative Advertising Strategy




Definition     Straight product or benefit claim
               with no assertion of superiority


Conditions     Monopoly or extreme dominance
               of product category


Competitive    Brand attempts to become
Implications   synonymous with product
               category


                                                     85
Creative Advertising Strategy




Definition     Generic claim with assertion of
               superiority


Conditions     Growing or awakening market
               where competitive advertising is
               generic or nonexistent


Competitive    May be successful in convincing
Implications   customer of superiority


                                                     86
Creative Advertising Strategy




1. Leverage Point
   The manner in which the advertising will tap into, reach, or
activate the key value, or end-level that serves as the
advertisement’s driving force
2. Brand Attributes
   The brand’s specific attributes or features that are communicated
as a means of supporting the consequences of using the brand
3. Brand Consequence
   The major positive consequences, or benefits of using the brand
4. Value - Orientation
   The end-level (terminal or instrumental value) to be focused on in
the advertising


                                                                87
Creative Advertising Strategy




                     10 Universal Values
•   Self-direction
•   Stimulation
•   Hedonism
•   Achievement
•   Power
•   Security
•   Conformity
•   Tradition
•   Benevolence
•   Universalism




                                                           88
Creative Advertising Strategy




          Attributes Consequences            Values
                                          Self-respect
            Low fat    Healthy
                                          Wisdom
Healthy     Many      Variety
                                           Freedom
Choice      flavors   of choices           (of choice)

                        Great            Happiness,
            High                         Pleasure
            quality    Tasting            Lack of
                                         self-control

                                                   89
Creative Advertising Strategy




                    Two Forms

Image advertising
Issue or advocacy advertising




                                                90
Creative Advertising Strategy




Jaguar




                         91
Endorsers and Message Appeals in Advertising




Advertisers are willing to pay huge salaries to celebrities who
are liked and respected by target audiences and who will
favorably influence consumers’ attitudes and behavior
toward the endorsed products




                                                                 92
Endorsers and Message Appeals in Advertising




Michael Jordan
is a popular
endorsement figure




                                                     93
Endorsers and Message Appeals in Advertising




Show regular people using or endorsing products
Avoid the backlash from using “beautiful people” who may be
resented
Real personal experience of the benefits of the particular brand
possess a degree of credibility
Effective using multiple people rather than a single individual




                                                                 94
Endorsers and Message Appeals in Advertising




Illustration of a
typical-person
endorsement




                                                    95
Endorsers and Message Appeals in Advertising




Trustworthiness
  Refers to the honesty, integrity, and believability of a source
  Often an endorser is perceived as highly trustworthy but not an
expert

Expertise
  Refers to the knowledge, experience, or skills possessed by an
endorser as they relate to the endorsed brand

Attractiveness
  The trait of being regarded as pleasant to look at in terms of a
particular group’s concept of attractiveness.



                                                                   96
Endorsers and Message Appeals in Advertising




Respect
   Represents the quality of being admired or even esteemed due
to one’s personal qualities and accomplishments


Similarity
   Represents the degree to which an endorser matches an
audience in terms of characteristics pertinent to the endorsement
relationship
  Age, gender, ethnicity, etc.
  “Birds of a feather flock together

                                                                  97
Endorsers and Message Appeals in Advertising




Attracts attention
Enhances liking of ad and brand
Does not hurt comprehension
Does not harm persuasion
Does not enhance source credibility
Nature of product affects the appropriateness of using humor
Effective only when consumers’ evaluations of the advertised
brand are already positive
Effect of humor can differ due to differences in audience
characteristics
Humorous message may be so distracting that receivers ignore
the message content



                                                                98
Endorsers and Message Appeals in Advertising




Eastpak
backpacks




                                            99
Endorsers and Message Appeals in Advertising




Appeal to fear is effective as a means of enhancing motivation
Appeal by identifying the negative consequences of:
       Not using the product
        Engaging in unsafe behavior (example drinking and
driving)
Stimulates audience involvement with a message
Promotes acceptance of message arguments
Takes the forms of either
       Social disapproval or
       Physical danger
                                                                100
Endorsers and Message Appeals in Advertising




An insurance
company’s
appeal to fear




                                                101
Endorsers and Message Appeals in Advertising




 Degree of
  Persuasive
Effectiveness




                Low     Moderate                           High

                            Level of Fear Intensity
                                                     102
Endorsers and Message Appeals in Advertising




Guilt appeals motivate emotionally mature individuals to
undertake responsible action leading to a reduction in the
level of guilt
Generally, they focus on one’s past or future transgressions
or failure to care for others




                                                               103
Endorsers and Message Appeals in Advertising




An illustrative
guilt appeal




                                                 104
Endorsers and Message Appeals in Advertising




Initial attentional lure
Enhance recall of message point
Evoke emotional responses




                                                             105
Endorsers and Message Appeals in Advertising




Attention lure




                                                106
Endorsers and Message Appeals in Advertising




                           Subliminal

Refers to the presentation of stimuli at a rate or level that is
below the conscious threshold of awareness




                                                                  107
Endorsers and Message Appeals in Advertising




Example of using
embedding in
advertising




                                                  108
Endorsers and Message Appeals in Advertising




Attracts attention

Promotes positive mood

Increase receptivity of message

Communicates meanings




                                                                 109
Endorsers and Message Appeals in Advertising




Better in enhancing brand
awareness
Promotes better recall
However, perceived as somewhat
less believable
Effective especially when the
brand is a new
Generates more purchases




                                                                110
Endorsers and Message Appeals in Advertising




Indirect Comparison




                                                      111
Endorsers and Message Appeals in Advertising




Direct Comparison




                                                    112
Assessing Ad Message Effectiveness




Message
Research
Methods
           Recognition & Recall

           Physiological Arousal

           Persuasion

           Sales Response

                                         113
Assessing Ad Message Effectiveness




                              Recognition & Recall

Starch readership service     Physiological Arousal
(magazines)
Bruzzone tests (TV)           Persuasion
Burke day-after recall (TV)

                              Sales Response


                                                      114
Assessing Ad Message Effectiveness




Starch-rated
advertisement for
the Toyota Sienna




                                         115
Assessing Ad Message Effectiveness




                       Recognition & Recall
• Psychogalvanometer
                       Physiological Arousal
• Pupilometer

                       Persuasion

                       Sales Response


                                               116
Assessing Ad Message Effectiveness




Illustration of
potential role for
physiological
measurement




                                          117
Assessing Ad Message Effectiveness




                                Recognition & Recall

• Ipsos-ASI Next*TV method      Physiological Arousal
• Rsc’s ARS Persuasion method
                                Persuasion

                                Sales Response


                                                        118
Assessing Ad Message Effectiveness




                        Recognition & Recall
• IRI’s BehaviorScan
• Nielsen’s SCANTRACK   Physiological Arousal

                        Persuasion

                        Sales Response


                                                119
Traditional Advertising Media




            Media                          Vehicles

The general                    Specific broadcast
communication                  programs or print
methods that carry             choices in which
advertising messages           advertisements are
e.g., television, magazines,   placed
newspapers, etc.               e.g., Friends, NBC Evening News,
                               Time, Cosmopolitan




                                                           120
Traditional Advertising Media




Out-of-home advertising                    Newspaper

         Magazines                         Radio

                         Television



  Advertisers attempts to select the media and vehicles whose
  characteristics are most compatible with the advertised
  brand in reaching its target audience and conveying its
  intended message


                                                             121
Traditional Advertising Media




$5 Billion in 2000
Regarded as supplementary
e.g., billboard(major), bus shelters, giant inflatables,
shopping-mall displays, etc.

400,000 billboards in the US
Designed with name recognition as the primary
objective
Two major forms:
       (1) Poster Panels and
       (2) Painted Bulletins


                                                              122
Traditional Advertising Media




Example of a poster panel


                                            123
Traditional Advertising Media




60 million households during week and nearly 62 million on
Sundays
Historically leading advertising medium but declining in recent
years




                                                               124
Traditional Advertising Media




Hundreds of special - interest magazines




                                                           125
Traditional Advertising Media




Nearly 100% of home and cars have radios




                                                           126
Traditional Advertising Media




Nearly 98% of all households have televisions
Uniquely personal and demonstrative yet expensive




                                                           127
Traditional Advertising Media




                     8p.m.-11p.m.
                    (7p.m.-10p.m.)
Prime Time

               Early morning news
                         - 4:30p.m.
 Daytime

           Preceding and following
                        prime time
Fringe Time
                                        128
Alternative Offline Advertising Media and Mass Online Advertising




Two Broad Groupings of Media Alternatives:

      Alternative Offline Mass Media

      Mass Online Ad Media




                                                                      129
Alternative Offline Advertising Media and Mass Online Advertising




Product Placements in Movies

Videos for VCRs

Virtual Signage at Sports Stadiums and Other Venues

CD-Rom Advertising

Yellow Page Advertising




                                                                      130
Alternative Offline Advertising Media and Mass Online Advertising




                                                    131
Alternative Offline Advertising Media and Mass Online Advertising




                                                    132
Alternative Offline Advertising Media and Mass Online Advertising




Internet not replacement but key element of IMC programs

60% of U.S. households have internet access

By 2005, online spending will represent 8% of overall
advertising and amount to $16.5 billion




                                                                         133
Alternative Offline Advertising Media and Mass Online Advertising




Individualization:

     Refers to the fact that the Internet user has control over
     the flow of information

Interactivity:

     Allows for users to select the information they perceive
     relevant & for brand managers to build relationships with
     customers via two-way communication.




                                                                          134
Alternative Offline Advertising Media and Mass Online Advertising




Websites

    Users seek out web sites in a goal-oriented fashion

    Movie web sites play prominent role in predicting box-
    office performance

    “Form follows function”




                                                                       135
Alternative Offline Advertising Media and Mass Online Advertising




Banner Ads

   Equivalent of 30-second T.V. ads

   Who pays attention?

   Nielsen/NetRatings: Average click rate of 2001 was
   0.49%

   Exposure not equivalent to attention




                                                                       136
Alternative Offline Advertising Media and Mass Online Advertising




Pop-ups

   Ads that appear in a separate window out of nowhere




                                                                      137
Alternative Offline Advertising Media and Mass Online Advertising




Interstitials/Superstitials

        Interstitials:
        Ads that appear between two
        content pages

        Superstitials:
        Short animated ads that play over web page




                                                                          138
Alternative Offline Advertising Media and Mass Online Advertising




Site Sponsorships

    Advertiser is a partial or exclusive sponsor of a Web site
    and benefits from the visitations to the site

    Ex. IBM paid $1 Million to be sole sponsor of National
    Football League’s http://www.superbowl.com




                                                                        139
Offline and Online Direct Advertising




Use of any of several media to transmit messages that encourage
purchases of advertiser’s brands
Postal mail and e-mail are the most important.
Facilitated by practice of Database Marketing




                                                                 140
Offline and Online Direct Advertising




Involves collecting and electronically storing info about past,
present, and prospective customer


Info is used to profile customers




                                                                   141
Offline and Online Direct Advertising




B2b marketers have expanded usage of direct advertising




                                                               142
Offline and Online Direct Advertising




P-mail advertising:

Advertising matter sent via the postal service to the person whom
the marketer wishes to influence


Ex. Letters, postcards, programs, calendars, catalogs,
videocassettes, blotters, order blanks, price lists, menus, etc.




                                                                     143
Offline and Online Direct Advertising




Test-drive kit
mailing




                                         144
Offline and Online Direct Advertising




Marketer’s perspective:


Catalog selling provides efficient and effective way to reach prime
prospects




                                                                  145
Offline and Online Direct Advertising




Consumer’s perspective:

1.   Saves time

2.   Appeals to consumers fearful of shopping

3.   Convenience of making purchase decisions at leisure

4.   Modern conveniences make it easy to order from
     catalogs
5.   Merchandise quality and prices are often comparable if
     not better than those of stores

6.   Guarantees are attractive




                                                               146
Offline and Online Direct Advertising




The use of the Internet for sending commercial e-mail
messages


Alternative to banner ads, pop-ups, or other forms of rich-
media presentations




                                                                147
Offline and Online Direct Advertising




Opt-in E-mailing:


The practice of marketers’ asking for and receiving
consumers’ permission to send them messages on a
particular topic (s)




                                                              148
Offline and Online Direct Advertising




SPAM

Unsolicited and unwanted commercial e-mail messages

Brand-awareness is offset by negative reaction




                                                               149
Offline and Online Direct Advertising




                        150
Media Planning and Analysis




Advertisers are placing more emphasis than ever on media
planning

Choosing media & vehicles is the most complicated of all
marketing communications decisions

Aside from specific vehicles in media, the planner has to choose
geographical locations and budget distribution over time




                                                              151
Media Planning and Analysis




                      Media planning

Involves the process of designing a scheduling plan that
shows how advertising time and space will contribute to the
achievement of marketing objectives




                                                           152
Media Planning and Analysis




                                Advertising Strategy

Marketing   Advertising       Advertising   Message          Media
Strategy    Objectives
                               Budget       Strategy        Strategy




                          Media Strategy
                          •   Audience Selection
                          •   Objective Specification
                          •   Media and Vehicle
                          •   Media Buying
                                                              153
Media Planning and Analysis




Percentage of target audience that is exposed to an
advertisement, at least once, during a certain time frame
(usually four weeks)




                                                             154
Media Planning and Analysis




Average number of times an advertisement reaches
the target audience in a four-week period




                                                     155
Media Planning and Analysis




How much advertising volume is required to accomplish
advertising objectives


Three weight metrics:

Gross ratings

Target ratings

Effective ratings




                                                         156
Media Planning and Analysis




How advertising is allocated during
the course of an advertising
campaign : how should the media
budget be distributed?




                                                     157
Sales Promotion Management, Marketing-Oriented Public Relations, and
                                                                     Sponsorships




               What Exactly is Sales Promotion?


Any incentive used by manufacturers to induce the trade
and/or consumers to buy a brand and encourage sales force
to aggressively sell it

The incentive is additional to the basic benefits provided by
the brand and temporarily changes its perceived price or value




                                                                      158
Sales Promotion Management, Marketing-Oriented Public Relations, and
                                                                     Sponsorships




                         Promotion Targets


All three groups – the sales force, retailers and consumers –
are targets of sales promotional efforts




                                                                      159
Sales Promotion Management, Marketing-Oriented Public Relations, and
                                                                      Sponsorships




               Brand-Level Advertising
               and Sales Promotion Mix
   Encourage




                                                                   Pull
                                    Push

Sales Force                 Retailers                    Consumers


                                                                       160
Sales Promotion Management, Marketing-Oriented Public Relations, and
                                                                   Sponsorships




Push Strategy

 Using promotional
   efforts to push
  product through                          Pull Strategy
  the selling chain

                                              Using Consumer
                                             advertising to pull
                                            product through the
                                           channel of distribution



                                                                    161
Sales Promotion Management, Marketing-Oriented Public Relations, and
                                                                        Sponsorships



                     Advertising to
                      Consumers           Advertising to
Sales Promotion to
     Retailers                              Retailers




Sales Promotion to        Personal Selling to
    Consumers                  Retailers

                         Personal Selling to        Sales Promotion to
 Sales Promotion to           Retailers                 Consumers
      Retailers
                                                                  Advertising to
                                                                    Retailers

                                 Advertising to
                                  Consumers
                                                                         162
Sales Promotion Management, Marketing-Oriented Public Relations, and
                                                                             Sponsorships




                                                   All Consumers



                                On- and Off-Deal                On-Deal Only
                                  Consumers                    Consumers (S8)


                  Loyalists                             Switchers



Non-Deal-Prone                Deal-Prone       Non-Deal-Prone           Deal-Prone
 Loyalists (S1)                Loyalists        Switchers (S5)           Switchers


  Stockpiling             Exceptionist         Stockpiling-Exceptionist
 Loyalists (S2)           Loyalists (S3)            Loyalists (S4)


S1- S8 = Segment1 - Segment 8                  Nonstockpiling           Stockpiling
                                               Switchers (S6)          Switchers (S7)
                                                                              163
Sales Promotion Management, Marketing-Oriented Public Relations, and
                                                       Sponsorships




                                                        164
Sales Promotion Management, Marketing-Oriented Public Relations, and
                                                                    Sponsorships




Unprofitable            Promotion-insensitive
                        Stockpiling loyalists
Profitable              On-Deal-Only consumers


‘May’ or                Nonstockpiling or
‘May not’               Stockpiling promotion-
                        sensitive consumers

                                                                     165
Trade-Oriented Sales Promotion




Introduce new or revised products
Increase distribution of new packages or sizes
Build retail inventories
Maintain/Increase manufacturer’s shelf space
Obtain displays outside shelf locations
Reduce excess inventory
Achieve product features in retailer’s ads
Counter competitive activity
Sell as much as possible to final consumers




                                                              166
Trade-Oriented Sales Promotion




Trade allowances
Cooperative advertising and vendor support programs
Trade contests and incentives
Trade shows




                                                       167
Trade-Oriented Sales Promotion




                       Trade Allowances

Used by manufacturers to reward wholesalers and retailers for
performing activities in support of the manufacturer’s brand




                                                            168
Trade-Oriented Sales Promotion




                 Slotting allowances

                 Bill-back allowances

               Off-invoice allowances
The fees manufacturers pay retailers for access to the slot,
or location,
Typically when a manufacturer to get its new brand
accepted by retailers
A form of bribery? or Legitimate cost of doing business?



                                                             169
Trade-Oriented Sales Promotion




                Slotting allowances

                Bill-back allowances

              Off-invoice allowances

Retailers receive allowances for featuring the manufacturer’s
brand in advertisements or for providing special displays




                                                           170
Trade-Oriented Sales Promotion




                 Slotting allowances

                Bill-back allowances

               Off-invoice allowances
Most frequently used form
Deals offered periodically to trade that permit wholesalers
and retailers to deduct a fixed amount from the invoice
Retailers do not necessarily pass along to consumers the
discounts



                                                            171
Trade-Oriented Sales Promotion




                Cooperative (co-op) advertising

An arrangement between a manufacturer and reseller whereby
the manufacturer pays for all or some of the advertising costs
undertaken by the reseller




                                                             172
Trade-Oriented Sales Promotion




                Vendor support programs (VSPs)


A retailers develops an advertising program in consultation with
local advertising media and then invites its vendors to pay for a
specific percentage of the media cost for the proposed
campaign




                                                             173
Trade-Oriented Sales Promotion




Trade contest generally based on
               managers meeting a sales
               goal
Trade          given to retail managers and
incentives     salespeople for performing
               certain tasks
Push money     provide financial incentives
               to retail salespeople to
               aggressively sell to
               consumers a selected item

                                              174
Trade-Oriented Sales Promotion




                        Trade show

A temporary forum for sellers of a product category to
exhibit and demonstrate their wares to present and
prospective buyers




                                                           175
Consumer-Oriented Promotions




   Three general categories of objectives

(1) Generating trial purchases
(2) Encouraging repeat purchases
(3) Reinforcing brand images




                                                   176
Consumer-Oriented Promotions




                Consumer Rewards
All promotion techniques provide consumers with rewards
Typically in the form of cash savings or free gifts
Consumers are more responsive to immediate than delayed
rewards




                                                         177
Consumer-Oriented Promotions




Consumer    Generating Trial      Encouraging      Reinforcing
Reward      Purchases             Repeat Purchases Brand Image
Immediate    Sampling            Price-offs
             Instant coupons     Bonus packs
             Shelf-delivered     In-, on-, and near-
               coupons               pack premiums
                                   Games
Delayed      Scanner-            In-and on-pack         Self-
               delivered             coupons                  liquidating
               coupons             Rebates /Refunds         premiums
             Media- and mail-    Phone cards            Contests and
               delivered           Continuity               sweepstakes
               coupons               programs
             Online coupons
             Mail-in premiums
             Free-with-
               purchase
               premiums



                                                                  178
Consumer-Oriented Promotions




                             Sampling

The premier sales-promotion device for
generating trial usage by delivering an
actual- or trial-sized product to consumers




                                                              179
Consumer-Oriented Promotions




      Direct mail

   Newspapers and
     magazines
Door to door by special   • Mailed directly to households
  distribution crews      • Targeted by demographic
                            characteristics or
On- or in-pack sampling
                            geodemographics
 High-traffic locations

   In-store sampling

   Internet sampling

                                                    180
Consumer-Oriented Promotions




Direct Mail
Sampling




                              181
Consumer-Oriented Promotions




      Direct mail

   Newspapers and
     magazines
Door to door by special   • The Sunday newspaper is an
  distribution crews        increasingly attractive
                            medium for broad-scale
On- or in-pack sampling     sampling
 High-traffic locations

   In-store sampling

   Internet sampling

                                                  182
Consumer-Oriented Promotions




Newspaper
Sampling




                            183
Consumer-Oriented Promotions




      Direct mail

   Newspapers and
     magazines
Door to door by special   • Allows considerable
                            targeting
  distribution crews
                          • Lower cost than in-store or
On- or in-pack sampling     direct-mail sampling
                          • Short lead times
 High-traffic locations

   In-store sampling

   Internet sampling

                                                   184
Consumer-Oriented Promotions




      Door-to-Door
        sampling




                185
Consumer-Oriented Promotions




      Direct mail

   Newspapers and
     magazines
Door to door by special
  distribution crews      • Uses the package of another
                            product to serve as the
On- or in-pack sampling     sample carrier

 High-traffic locations

   In-store sampling

   Internet sampling

                                                  186
Consumer-Oriented Promotions




On- or In-pack
Sampling




                                 187
Consumer-Oriented Promotions




      Direct mail

   Newspapers and
     magazines
Door to door by special
  distribution crews      • Shopping centers, movie
                            theaters, airports, or special
On- or in-pack sampling     events

 High-traffic locations

   In-store sampling

   Internet sampling

                                                   188
Consumer-Oriented Promotions




      Direct mail

   Newspapers and
     magazines
Door to door by special   • Provide product samples in
  distribution crews        grocery stores and other
                            retail outlets for trial while
On- or in-pack sampling     consumers are shopping
                          • The most frequent form
 High-traffic locations

   In-store sampling

   Internet sampling

                                                   189
Consumer-Oriented Promotions




In-store
sampling




                           190
Consumer-Oriented Promotions




      Direct mail

   Newspapers and
     magazines
                          • Brand managers are
Door to door by special     increasingly distributing
  distribution crews        samples online
                          • Specialized online sample
On- or in-pack sampling
                            delivery firms aid this
                            process
 High-traffic locations

   In-store sampling

   Internet sampling

                                                  191
Consumer-Oriented Promotions




                          Coupon

A promotional device that provides cents-off to consumers
upon its redemption




                                                         192
Consumer-Oriented Promotions




Coupons for
automotive
maintenance
service




                              193
Consumer-Oriented Promotions




           Instantly Redeemable Coupons

               Shelf- Delivered Coupons

             Scanner- Delivered Coupons

Peelable from the package at the point of purchase
Represent an immediate reward
An alternative to price-off deals
Redemption rate about 30%




                                                            194
Consumer-Oriented Promotions




         Instantly Redeemable Coupons

             Shelf- Delivered Coupons

           Scanner- Delivered Coupons

Instant Coupon Machines, Smart SourceTM
Machines are attached to the shelf alongside coupon-sponsoring
brands
Redemption rate about 11%




                                                          195
Consumer-Oriented Promotions




Instant coupon machine
(so called SmartSource)




                                          196
Consumer-Oriented Promotions




          Instantly Redeemable Coupons

              Shelf- Delivered Coupons

            Scanner- Delivered Coupons

Catalina Marketing Corp. offers two programs
Reward is delayed
Potentially very effective because they provide a way to carefully
target coupon distribution



                                                              197
Consumer-Oriented Promotions




           Scanner- Delivered Coupons


 Checkout Coupon                    Checkout Direct

Delivers coupons based on the particular brands a shopper has
purchased
Directed at competitive-brand users
Redemption rate about 9%




                                                          198
Consumer-Oriented Promotions




Checkout coupon for
Lean Cuisine Hearty Portions




                                               199
Consumer-Oriented Promotions




            Scanner- Delivered Coupons


   Checkout Coupon                   Checkout Direct

A coupon for the sponsoring manufacturer’s brand is
automatically dispensed for use on the shopper’s next purchase
occasion
Directed at users who satisfy a manufacturer’s prescribed
demographic or product-usage requirements




                                                           200
Consumer-Oriented Promotions




               Mail-Delivered Coupons

Highest household penetration    • Relatively expensive
Highest redemption rate of all   • Inefficient and expensive for
mass-delivered coupons             brands enjoying a high
Increase the amount of product     market share
purchases




                                                           201
Consumer-Oriented Promotions




               Media-Delivered Coupons
80% of all coupons distributed via   • Redemption rate is very
Sunday newspaper freestanding          low
inserts                              • Don’t generate much
Broad exposure                         trade interest
Relatively cheaper                   • Susceptible to
Reminder function                      misredemption
Advertising function




                                                           202
Consumer-Oriented Promotions




FSI
advertisement




                                203
Consumer-Oriented Promotions




Included in- or on- product’s package
Cannot be removed at the point of purchase;It’s for next
purchase
A coupon for one brand is promoted by another brand
(crossruffing)
Has bounce-back value
No distribution costs
Redemption rates are higher
Delayed value to consumers
Don’t reach nonusers of the carrying brand




                                                          204
Consumer-Oriented Promotions




                           (F)
    Manufacturer                         Redemption Center

(A)                               (E)                               (D
               (B)                      (C)                         )
Consumers                 Retailers              Clearinghouse

                     (M)
*   Organized criminals
*   Terrorists
                                  M: misredemption
*   Media employees
*   Crooked retailers
                                                              205
Consumer-Oriented Promotions




                          Premiums

Articles of merchandise or service offered by manufacturers to
induce action on the part of the sales force, trade
representatives, or consumers




                                                           206
Consumer-Oriented Promotions




 Mail-in Offers

                   • Receive a premium item for
 In-, On-, and       submitting a required number of
                     proofs of purchase
  Near- Pack       • Not only stimulate consumer trial,
                     also reward brand loyalties and
                     encourage repeat purchase
Self-Liquidating     behavior
                   • 2 to 4% of consumers take
                     advantage

 Phone Cards

                                                    207
Consumer-Oriented Promotions




Mail-in offers




                                 208
Consumer-Oriented Promotions




Free-in-the-Mail
                   • Offer a premium item inside
                     or attached
 In-, On-, and     • Immediate value
  Near- Pack       • Near-pack premium provide
                     the retail trade with premium
                     item that retailers then give
Self-Liquidating     to consumers
                   • Near-pack is less expensive
                     due to no additional
 Phone Cards         packaging


                                                 209
Consumer-Oriented Promotions




Free-in-the-Mail

 In-, On-, and
                   • Consumer mails in a proof of
  Near- Pack         purchase along with sufficient
                     money to receive the premium
                     item
Self-Liquidating   • The premium should be appealing
                     and represent a value



 Phone Cards

                                                  210
Consumer-Oriented Promotions




Self-liquidating
premium




                                   211
Consumer-Oriented Promotions




                   Phone debit card
Free-in-the-Mail   Performing customer-holding objective
                   Delayed reward
                   In its infancy
 In-, On-, and     Commonly, a preset amount of long-
  Near- Pack       distance calling time



Self-Liquidating


 Phone Cards

                                                   212
Consumer-Oriented Promotions




              Effective for certain objectives

Reward present users
Get consumers to purchase larger quantities than normal
Establish repeat purchase
Ensure promotion dollars reach consumers
Obtain off-shelf display space
Provide the sales force with incentive




                                                           213
Consumer-Oriented Promotions




Extra quantities of a product that are offered for the same
price
Alternative to price-off deals
Many bonus-packs will be purchased by regular customers
who would have purchased the brand anyway




                                                           214
Consumer-Oriented Promotions




Bonus Packs




                              215
Consumer-Oriented Promotions




                       Rebates/Refunds

Manufacturers give cash discounts or reimbursements to
consumers who Submit (mail) proofs of purchase




                                                          216
Consumer-Oriented Promotions




     A refund offer




                217
Consumer-Oriented Promotions




Primarily to enhance a brand’s image
Sweepstakes are preferred because it’s relatively inexpensive
and simple to execute




     Sweepstakes                          Contest

purely on the basis of               Solve the specific
 chance, no need for               contest problem and
  proofs of purchase                may need proofs of
                                         purchase


                                                         218
Consumer-Oriented Promotions




Sweepstakes offer




                                    219
Consumer-Oriented Promotions




Contests




                           220
Consumer-Oriented Promotions




Provide an instant reward


Create excitement, stimulate brand interest, and reinforce brand
loyalty




                                                            221
Consumer-Oriented Promotions




Games




                        222
Consumer-Oriented Promotions




Reward consumers’ repeat purchasing
“Loyalty programs”, “point programs”
Serve to cement a relation with the consumer




                                                          223
Consumer-Oriented Promotions




The Spam stuff
points program




                                 224
Consumer-Oriented Promotions




The Internet is becoming a major medium for consumer-oriented
promotions
Online couponing is a cheaper and more targeted, but
susceptible to fraud




                                                          225
Consumer-Oriented Promotions




         Overlay                        Tie-in
         Program                      Promotion



Or combination program
Combines two or more promotion techniques
Increases the likelihood that consumers will attend a promotional
message



                                                             226
Consumer-Oriented Promotions




        Overlay                       Tie-in
        Program                     Promotion


Or joint promotion
Simultaneous promotion of multiple brands
Cost-effective, but lead time is lengthened
The partners’ images should reinforce each other other




                                                          227
Consumer-Oriented Promotions




An intercompany
tie-in




                                  228
Consumer-Oriented Promotions




To increase store traffic
    › Couponing
    › Frequent-shopper card program
    › Sampling




                                                      229
Consumer-Oriented Promotions




A store coupon




                                 230
Marketing Public Relations and Sponsorship Marketing




              Marketing Public Relations (MPR)

Marketing-oriented aspect of public relations that is an
organizational activity involved with fostering goodwill
between a company and its various publics




                                                                  231
Marketing Public Relations and Sponsorship Marketing




   Proactive MPR                         Reactive MPR
Dictated by a company’s
marketing objectives
Offensively oriented and
opportunity seeking
                                 • The conduct of public
                                   relations in response to
                                   outside influences
                                 • Attempt to repair company’s
                                   reputation, prevent market
                                   erosion, and regain lost sales




                                                                  232
Marketing Public Relations and Sponsorship Marketing




      Proactive MPR                         Widely used forms
                                            of publicity in MPR
Product introductions or product
revisions
                                              Product releases
Credibility accounts for the
effectiveness
Publicity is the major tool

                                          Executive-statement


                                               Feature articles
                                                                     233
Marketing Public Relations and Sponsorship Marketing




                    Announce new products
                    Provide relevant information,
Product releases    features and benefit
                    Audiovisual product releases (video
                    news releases, or VNRs) gained
                    wide usage
   Executive-
   statement


Feature articles

                                                          234
Marketing Public Relations and Sponsorship Marketing




                    News releases quoting CEOs and
                    other corporate executives
Product releases    May address a wide variety of
                    issues
                    Published in the news section
                    Carry a significant degree of
   Executive-       credibility
   statement


Feature articles

                                                          235
Marketing Public Relations and Sponsorship Marketing




                    Detailed descriptions of products
                    or other newsworthy programs
Product releases    Written by a PR firm for immediate
                    publications or airing
                    Inexpensive to prepare
   Executive-
   statement


Feature articles


                                                          236
Marketing Public Relations and Sponsorship Marketing




Often product defects and failures          Negative publicity
are the factors                                  cases
Quick and positive responses are
imperative

                                          • Product tampering
                                            cases -Tylenol and
                                            Sudafed
                                          • The Perrier case
                                          • The Pepsi Hoax
                                          • Coke in Europe
                                                                     237
Marketing Public Relations and Sponsorship Marketing




Old     and                         New

       Proctor
         and
      Gamble’s
        Logos




                                              238
Marketing Public Relations and Sponsorship Marketing




Involve investments in events or causes for the purpose
of achieving various corporate objective




   Event                             Cause-oriented
sponsorships                          sponsorships




                                                               239
Marketing Public Relations and Sponsorship Marketing




                        Event Sponsorship


A form of brand promotion that ties a brand to a meaningful
athletic, entertainment, cultural , social, or other type of high-
interest public activity




                                                                     240
Marketing Public Relations and Sponsorship Marketing




The Oscar Mayer Wienermobile

                                                  241
Marketing Public Relations and Sponsorship Marketing




                  Cause-Related Marketing

Based on the idea that a company will contribute to a cause
every time the customer undertakes some action




                                                                 242
Marketing Public Relations and Sponsorship Marketing




Cause-related
marketing
illustration




                                                       243
Personal Selling




A form of person-to-person communication in which
a salesperson works with prospective buyers and
attempts to influence their purchase
needs in the direction of his or her company’s
products or service
Personal Selling




Enhancing brand equity
Educating customers
Providing product usage and marketing assistance
Providing after-sale service and support to buyers
Personal Selling




  1. High level of      4. Communicate
customer attention     more technical and
                      complex information



 2. Customize the        5. Demonstrate a
     message          product’s functioning
                        and characteristics



3. Yields immediate   6. Develop long-term
      feedback             relationship
Personal Selling




      Job freedom


  Variety and challenge



    Opportunities for
     advancement




 Attractive compensation
and non-financial rewards
Personal Selling




Based on trust and mutual agreement
Customer-driven atmosphere
Act as if on customer’s payroll
After-sales service is key
No one solution is appropriate for all customers
Professionalism and integrity are essential
Personal Selling
Personal Selling




   Trade Selling
                       Typically employees of
                       manufacturers
 Missionary Selling
                       Sell through their direct
                       customers
  Technical Selling    Requires limited
                       prospecting and places
                       greater emphasis on
New-business Selling   servicing accounts


   Retail Selling


   Telemarketing
Personal Selling




   Trade Selling
                       Employees of
                       manufacturers
 Missionary Selling
                       Typically pharmaceutical
                       industry
  Technical Selling    Sells for its direct
                       customers (wholesalers)

New-business Selling


   Retail Selling


   Telemarketing
Personal Selling




   Trade Selling
                       Typically trained in technical
                       fields such as chemistry,
 Missionary Selling    engineering, computer science,
                       and accounting
  Technical Selling    Must be able to communicate
                       complicated features to
                       prospective customers
New-business Selling


   Retail Selling


   Telemarketing
Personal Selling




   Trade Selling
                       Must continuously call on
                       new accounts
 Missionary Selling
                       Bird-dogging, cold calling
                       Continually work to open
  Technical Selling    new accounts
                       e.g., Office copiers, personal
                       computers, business forms,
New-business Selling   and personal insurance


   Retail Selling


   Telemarketing
Personal Selling




   Trade Selling
                       Customer comes to the
                       salesperson
 Missionary Selling
                       Have considerable
                       product knowledge,
  Technical Selling    strong interpersonal skills,
                       and ability to work with a
                       diversity of customers
New-business Selling


   Retail Selling


   Telemarketing
Personal Selling




   Trade Selling
                       Is used to support or even
                       replace the sales forces
 Missionary Selling
                       Versatility applies to both
                       consumer-oriented
  Technical Selling    products and business-to-
                       business marketing
                       Not appropriate for all
New-business Selling   sales organizations


   Retail Selling


   Telemarketing
Personal Selling




How essential is face-to-face contact?
Customers geographically concentrated or dispersed?
How large are typical order sizes?
What decision criteria are important?
How many decision makers?
What is the nature of purchase?
What is the status of the decision maker?
What specific selling tasks have to be performed?
Personal Selling




To best represent the customer’s interests by capitalizing on
the strengths and expertise of various personnel
Also prevalent in business-to-business selling situation
Include experts drawn from throughout the organization
Personal Selling




       Aptitude
                           Includes interests, intelligence,
                           and personality characteristics
       Skill level         Some people better suit to
                           one type of sales job than
                           another
  Motivational level
                           All must be customer oriented
                           and empathetic
   Role perceptions


Personal characteristics


     Adaptability
Personal Selling




       Aptitude
                           Includes selling, interpersonal,
                           and technical skills
       Skill level         Companies instill the skills
                           needed for success
  Motivational level       One of the most important
                           skills—”Close a sale”
                           Getting along with immediate
   Role perceptions        superior


Personal characteristics


     Adaptability
Personal Selling




       Aptitude
                           The amount of time and
                           energy a person is willing to
       Skill level         expend performing tasks
                           Reciprocally related to
                           performance
  Motivational level
                           People are driven in different
                           ways
   Role perceptions


Personal characteristics


     Adaptability
Personal Selling




   Competitors              Ego-driven

Desire to win and to   Desire to be the best,
     beat rivals        to win awards, and
                          to be organized



     Achievers           Service-oriented
Routinely set higher
  goals and like         Good at building
 accomplishment         relationships with
                            customers
Personal Selling




       Aptitude
                           Accurate role perception is
                           crucial
       Skill level         Often they face role conflicts
                           that diminish their sales
                           performance
  Motivational level
                           Organizational citizenship
                           behaviors (OCBs)
   Role perceptions


Personal characteristics


     Adaptability
Personal Selling




       Aptitude
                           Age, physical size,
                           appearance, race, gender, etc.
       Skill level         It doesn’t ensure sales
                           success or failure
  Motivational level       Successful salespeople are
                           androgyny (possess both male
                           and female traits)
   Role perceptions


Personal characteristics


     Adaptability
Personal Selling




       Aptitude
                           Ability to adapt to situational
                           circumstances
       Skill level         Due in part to personal
                           aptitude but also includes
                           learned skills
  Motivational level
                           Absolutely essential for
                           success
   Role perceptions


Personal characteristics


     Adaptability
Personal Selling




First Impression       Self-esteem

Depth of knowledge     Extended focus

Breadth of knowledge   Sense of humor

Adaptability           Creativity

Sensitivity            Taking risks

Enthusiasm             Honesty & ethics
Regulatory, Ethical, and “Green” Issues in Marketing Communications




 Federal                                  State Regulation
Regulation




               Marketing
             Communications



                                                               266
Regulatory, Ethical, and “Green” Issues in Marketing Communications




Regulation of deceptive advertising
Regulation of unfair practices
Information regulation
Regulation of product labeling
Regulation of prescription drug advertising




                                                                        267
Regulatory, Ethical, and “Green” Issues in Marketing Communications




Ethics in our context involves matters of right and wrong, or
moral, conduct pertaining to any aspect of marketing
communications




                                                                        268
Regulatory, Ethical, and “Green” Issues in Marketing Communications




Example of
Controversial
Advertising
- Camel’s “Joe camel”




                                                                     269
Regulatory, Ethical, and “Green” Issues in Marketing Communications




The Golden               Act in a way that you would want
   Rule


    The                 Take only actions that would be
Professional            viewed as proper by an objective
   Ethics               panel of your professional
                        colleagues

                        “Would l feel comfortable
The TV test
                        explaining this action on
                        television to the general public?”
                                                                     270
Regulatory, Ethical, and “Green” Issues in Marketing Communications




         Green advertising


       Packaging response


  Seal-of-Approval programs


   Cause-Oriented Programs


         Point-of-Purchase


                                                      271
Regulatory, Ethical, and “Green” Issues in Marketing Communications




Green Advertising
Promoting an
Image of
Environmental
Responsibility




                                                                     272
Regulatory, Ethical, and “Green” Issues in Marketing Communications




         Green advertising


       Packaging response


  Seal-of-Approval programs


   Cause-Oriented Programs


         Point-of-Purchase


                                                      273
Regulatory, Ethical, and “Green” Issues in Marketing Communications




Recyclable bottles
Polystyrene to paperboard
Plastic to cardboard
Smaller packages




                                                                       274
Regulatory, Ethical, and “Green” Issues in Marketing Communications




         Green advertising


       Packaging response


  Seal-of-Approval programs


   Cause-Oriented Programs


         Point-of-Purchase


                                                      275
Regulatory, Ethical, and “Green” Issues in Marketing Communications




Designed to assist consumers in identifying environmentally
friendly products and brands
Green Seal of Approval
“Chasing arrows logo”




                                                                       276
Regulatory, Ethical, and “Green” Issues in Marketing Communications




         Green advertising


       Packaging response


  Seal-of-Approval programs


   Cause-Oriented Programs


         Point-of-Purchase


                                                      277
Regulatory, Ethical, and “Green” Issues in Marketing Communications




Cause-Oriented
programs




                                                                       278
整合营销传播简介 英文版
整合营销传播简介 英文版

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整合营销传播简介 英文版

  • 1.
  • 2. Overview of Integrated Marketing Communications The process of planning, creation, integration, and implementation of diverse forms of marketing communications that are delivered over time to a brand’s targeting customers and prospects. 2
  • 3. Overview of Integrated Marketing Communications 3
  • 4. The Marketing Communications Process and Brand-Equity Enhancement
  • 5. The Marketing Communications Process and Brand-Equity Enhancement A brand possesses equity to the extent that consumers are familiar with the brand and have stored in their memory warehouses favorable, strong and unique brand associations
  • 6. The Marketing Communications Process and Brand-Equity Enhancement Brand Awareness An issue of whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked Brand Image The types of associations that come to the consumer’s mind when contemplating a particular brand
  • 7. The Marketing Communications Process and Brand-Equity Enhancement Non-Product-Related Brand (e.g., Price, Packaging, Recognition User and Usage Imagery) Brand Awareness Brand Attributes Recall Product-Related (e.g., color, size, design features) Brand Knowledge Types of Brand Associations Benefits Functional Brand Image Symbolic Favorability, Overall Strength, and Evaluation Experiential Uniqueness of (Attitude) Brand Association
  • 8. The Marketing Communications Process and Brand-Equity Enhancement
  • 9. Positioning and Targeting for MarCom Efforts Non-Product-Related (e.g., Price, Packaging, User and Usage Imagery) Brand Awareness Attributes Product-Related (e.g., color, size, design features) Brand Knowledge Types of Brand Associations Benefits Functional Brand Image Symbolic Favorability, Overall Strength, and Evaluation Experiential Uniqueness of (Attitude) Brand Association
  • 10. Positioning and Targeting for MarCom Efforts
  • 11. Positioning and Targeting for MarCom Efforts Products that attempt to fulfill the consumer’s consumption-related problems
  • 12. Positioning and Targeting for MarCom Efforts An appeal to symbolic needs
  • 13. Positioning and Targeting for MarCom Efforts An appeal to experiential needs
  • 14. Positioning and Targeting for MarCom Efforts Children and teenagers
  • 15. Positioning and Targeting for MarCom Efforts
  • 16. Positioning and Targeting for MarCom Efforts Fulfillers
  • 17. Positioning and Targeting for MarCom Efforts Experiencers
  • 18. Positioning and Targeting for MarCom Efforts Makers
  • 19. The Communication Process, Meaning Creation, and the Fundamentals of Consumer’s Use of MarCom Information
  • 20. The Communication Process, Meaning Creation, and the Fundamentals of Consumer’s Use of MarCom Information Drawing meaning from the culturally constituted world
  • 21. The Communication Process, Meaning Creation, and the Fundamentals of Consumer’s Use of MarCom Information Use of Metaphor
  • 22. The Communication Process, Meaning Creation, and the Fundamentals of Consumer’s Use of MarCom Information How consumers process and respond to marketing communications stimuli and make choices among brands Two models of consumer behavior › CPM and HEM Consumer behavior is too complex and diverse to be explained by two extreme models
  • 23. The Communication Process, Meaning Creation, and the Fundamentals of Consumer’s Use of MarCom Information Consumer Processing Model (CPM) Behavior is seen as rational, highly cognitive, systematic, and reasoned Hedonic, Experiential Model (HEM) Consumer behavior is driven by emotions in pursuit of “fun, fantasies, and feelings”
  • 24. The Communication Process, Meaning Creation, and the Fundamentals of Consumer’s Use of MarCom Information An advertisement exemplifying the CPM approach
  • 25. The Communication Process, Meaning Creation, and the Fundamentals of Consumer’s Use of MarCom Information An advertisement exemplifying the HEM approach
  • 26. Persuasion in Marketing Communications Cognitive Affective Conative A person’s Feelings and A person’s beliefs about evaluations behavioral an object or tendency issue toward an object 26
  • 27. Persuasion in Marketing Communications Persuasion Important element of marketing Attempt to guide people toward the acceptance of some belief, attitude, or behavior by using reasoning and emotional appeals Sometimes viewed as unethical Many forms 27
  • 28. Persuasion in Marketing Communications Using persuasion for reformulated brand of orange juice 28
  • 29. Persuasion in Marketing Communications Opportunity Motivation Ability 29
  • 30. Persuasion in Marketing Communications Attend to the message •Appeal to hedonic needs •Using novel stimuli Process brand info •Use intense cues •Increased relevance •Use motion of brand •Increased curiosity about brand 30
  • 31. Persuasion in Marketing Communications Using novelty to attract attention 31
  • 32. Persuasion in Marketing Communications The use of surprise to enhance processing motivation 32
  • 33. Persuasion in Marketing Communications Encode information •Repeat brand information •Repeat key scenes •Repeat the ad Reduce processing time •Using picture and imagery 33
  • 34. Persuasion in Marketing Communications The use of pictorials to create gestalt processing or reduce processing time 34
  • 35. Persuasion in Marketing Communications Access knowledge structure •Provide a context Create Knowledge structure •Facilitate example- based learning 35
  • 36. Persuasion in Marketing Communications Creating knowledge structures by facilitating exemplar-based learning 36
  • 37. Persuasion in Marketing Communications 37
  • 38. Persuasion in Marketing Communications Using authorities in a field to promote the product 38
  • 39. MarCom’s Role in Facilitating Product Adoption Coupons Product Distribution Satisfaction Free Awareness Trier Repeater Samples Class Class Class Advertising Price 39
  • 40. MarCom’s Role in Facilitating Product Adoption Free Awareness Class Samples Coupons Advertising Distribution Variables: free samples, coupons, advertising, and distribution Successful introduction of new products requires an effective advertising campaign, widespread product distribution, and extensive couponing and sampling 40
  • 41. MarCom’s Role in Facilitating Product Adoption Coupons Distribution Price Trier Class Variables: coupons, distribution, and price Once the consumers becomes aware of a new product, there is an increased probability that they will actually try the new offering 41
  • 42. MarCom’s Role in Facilitating Product Adoption Advertising Price Distribution Repeater Class Product Satisfaction Variables: advertising, price, distribution and product satisfaction Consumers repeat the purchase if advertising reminds them about the brand, if the price is reasonable, if the brand is accessible in retail outlets, and if product quality is satisfactory 42
  • 43. MarCom’s Role in Facilitating Product Adoption Relative Innovation Observability Advantage Related Characteristics Compatibility Trialability Complexity 43
  • 44. MarCom’s Role in Facilitating Product Adoption Another illustration of relative advantage 44
  • 45. MarCom’s Role in Facilitating Product Adoption Compatibility 45
  • 46. MarCom’s Role in Facilitating Product Adoption Offsetting perceived product complexity 46
  • 47. MarCom’s Role in Facilitating Product Adoption Trialability 47
  • 48. MarCom’s Role in Facilitating Product Adoption High Visibility 48
  • 49. MarCom’s Role in Facilitating Product Adoption Mean Time of Adoption Innovators (2.5%) Early Late Early Majority Majority Adopters (34%) (34%) Laggards (13.5%) (16%) 49
  • 50. MarCom’s Role in Facilitating Product Adoption 100 90 80 Potential Adopters 70 “Desired” Pattern 60 50 Introduction “Typical” Pattern 40 30 20 10 0 Time of Adoption 50
  • 51. Brand Names, Logos, Packages, and Point-of-Purchase Materials Affects the speed with which consumers become aware of the brand Influences the brand’s image Plays major role in brand-equity information 51
  • 52. Brand Names, Logos, Packages, and Point-of-Purchase Materials Distinguish the brand from competitive offerings Describe the brand and its attributes Achieve compatibility with a brand’s desired image and with its product design or packaging Be memorable and easy to pronounce and spell 52
  • 53. Brand Names, Logos, Packages, and Point-of-Purchase Materials A new brand name 53
  • 54. Brand Names, Logos, Packages, and Point-of-Purchase Materials Graphic design element that is related to the brand name Companies use logos with or without brand names Not all brand names possess a distinct logo but many do e.g., the Nike swoosh, Ralph Lauren’s Polo 54
  • 55. Brand Names, Logos, Packages, and Point-of-Purchase Materials Recognized readily Convey essentially the same meaning to all target members Evoke positive feelings Best strategy is to choose a design that is moderately elaborated rather than too simple or too complex 55
  • 56. Brand Names, Logos, Packages, and Point-of-Purchase Materials Sailor Jac, The famous Cracker Jack 56
  • 57. Brand Names, Logos, Packages, and Point-of-Purchase Materials Contain and protect the product Draw attention to a brand Break through competitive clutter at the point of purchase Justify price/value to the consumer Signify brand features and benefits Motivate consumers’ brand choices 57
  • 58. Brand Names, Logos, Packages, and Point-of-Purchase Materials Color Design and Shape Physical Materials Product Information on Package * VIEW Model (Visibility, Information, Emotional appeal, Workability) 58
  • 59. Brand Names, Logos, Packages, and Point-of-Purchase Materials Color Design, Shape Size Physical Materials Information labeling 59
  • 60. Brand Names, Logos, Packages, and Point-of-Purchase Materials Visibility Information Emotional Appeal Workability 60
  • 61. Brand Names, Logos, Packages, and Point-of-Purchase Materials Visibility 61
  • 62. Brand Names, Logos, Packages, and Point-of-Purchase Materials Illustration of packaging information for Gardenburger Veggie Patties 62
  • 63. Brand Names, Logos, Packages, and Point-of-Purchase Materials Emotional appeals in the packaging of WOW! 63
  • 64. Brand Names, Logos, Packages, and Point-of-Purchase Materials Point-of-purchase; store environment A final opportunity to affect consumer behavior Many product-and-brand choice decisions are made at this time It is the time and place at which all elements of the sale (consumer, money and product) come together 64
  • 65. Brand Names, Logos, Packages, and Point-of-Purchase Materials displays intended for six Permanent P-O-P months or more Temporary and Semipermanent P-O-P In-Store Media 65
  • 66. Brand Names, Logos, Packages, and Point-of-Purchase Materials Permanent display for Sesame Street toys 66
  • 67. Brand Names, Logos, Packages, and Point-of-Purchase Materials displays intended for six Permanent P-O-P months or more Temporary and displays intended for Semipermanent P-O-P fewer than six months In-Store Media 67
  • 68. Brand Names, Logos, Packages, and Point-of-Purchase Materials Semipermanent display 68
  • 69. Brand Names, Logos, Packages, and Point-of-Purchase Materials Temporary display 69
  • 70. Brand Names, Logos, Packages, and Point-of-Purchase Materials displays intended for six Permanent P-O-P months or more Temporary and displays intended for Semipermanent P-O-P fewer than six months executed by a third party In-Store Media (P-O-P radio, shopping cart ads, shelf talkers, coupon dispensers, etc..) 70
  • 71. Brand Names, Logos, Packages, and Point-of-Purchase Materials ActMedia in-store advertising cart 71
  • 72. Brand Names, Logos, Packages, and Point-of-Purchase Materials Computerized units that Interactive allow consumers Displays to obtain information about the product Video Audio and video Merchandising presentations that Centers perform informational and transactional functions 72
  • 73. Overview of Advertising Management Informing Persuading Reminding Adding Value Assisting Other Company Efforts 73
  • 74. Overview of Advertising Management Advertising Strategy • Setting Objectives •Formulating Budgets •Creating Ad messages •Selecting Ad Media and Vehicles Strategy Implementation Assessing Ad Effectiveness 74
  • 75. Overview of Advertising Management The hierarchy of effects metaphor implies that for advertising to be successful it must move consumers from one goal to the next goal 75
  • 76. Overview of Advertising Management The best(optimal) level of any investment is the level that maximizes profits(MR=MC) Advertisers should continue to increase their advertising investment as long as it is profitable to do so MC MR = (Change in total cost) = (Change in total Revenue) (Change in quantity) (Change in quantity) = TC/Q = TR/Q 76
  • 77. Overview of Advertising Management Percent-of-Sales Budgeting Objective-and-Task Method Competitive Parity Method (match competitors method) Affordability Method 77
  • 78. Creative Advertising Strategy Consumer’s Sound View Persuasive Strategy Effective Advertising Break Deliver on Doesn’t Clutter Promises Overwhelm 78
  • 79. Creative Advertising Strategy The Role of Creativity 79
  • 80. Creative Advertising Strategy Background Their current thoughts/feelings Strategy What do we want them to think/feel Task What do we want them to do Positioning Proposition Client’s Belief in proposition Objectives Target How we speak to them 80
  • 81. Creative Advertising Strategy Definition Superiority claims based on unique physical feature or benefit Conditions Most useful when point of difference cannot be readily matched by competitors Competitive May force competitors to imitate or choose more aggressive Implications strategy 81
  • 82. Creative Advertising Strategy Definition Claims based on psychological differentiation, usually symbolic association Conditions Best for homogeneous good where differences are difficult to develop; easily duplicated Competitive Most often involve prestige Implications claims; rarely challenge competition directly 82
  • 83. Creative Advertising Strategy Definition Attempts to evoke stored experiences of prospects to endow product with relevant meaning or significance Conditions Best for socially visible goods; requires considerable consumer understanding to design messages Competitive Few direct limitations on Implications competitor’s options; most likely competitive response is imitation 83
  • 84. Creative Advertising Strategy Definition Attempts to provoke involvement or emotion through ambiguity, humor without strong selling emphasis Conditions Best suited to discretionary items; effective use depends on competitor response Competitive Competitors may imitate to Implications undermine strategy of difference or pursue other alternatives 84
  • 85. Creative Advertising Strategy Definition Straight product or benefit claim with no assertion of superiority Conditions Monopoly or extreme dominance of product category Competitive Brand attempts to become Implications synonymous with product category 85
  • 86. Creative Advertising Strategy Definition Generic claim with assertion of superiority Conditions Growing or awakening market where competitive advertising is generic or nonexistent Competitive May be successful in convincing Implications customer of superiority 86
  • 87. Creative Advertising Strategy 1. Leverage Point The manner in which the advertising will tap into, reach, or activate the key value, or end-level that serves as the advertisement’s driving force 2. Brand Attributes The brand’s specific attributes or features that are communicated as a means of supporting the consequences of using the brand 3. Brand Consequence The major positive consequences, or benefits of using the brand 4. Value - Orientation The end-level (terminal or instrumental value) to be focused on in the advertising 87
  • 88. Creative Advertising Strategy 10 Universal Values • Self-direction • Stimulation • Hedonism • Achievement • Power • Security • Conformity • Tradition • Benevolence • Universalism 88
  • 89. Creative Advertising Strategy Attributes Consequences Values Self-respect Low fat Healthy Wisdom Healthy Many Variety Freedom Choice flavors of choices (of choice) Great Happiness, High Pleasure quality Tasting Lack of self-control 89
  • 90. Creative Advertising Strategy Two Forms Image advertising Issue or advocacy advertising 90
  • 92. Endorsers and Message Appeals in Advertising Advertisers are willing to pay huge salaries to celebrities who are liked and respected by target audiences and who will favorably influence consumers’ attitudes and behavior toward the endorsed products 92
  • 93. Endorsers and Message Appeals in Advertising Michael Jordan is a popular endorsement figure 93
  • 94. Endorsers and Message Appeals in Advertising Show regular people using or endorsing products Avoid the backlash from using “beautiful people” who may be resented Real personal experience of the benefits of the particular brand possess a degree of credibility Effective using multiple people rather than a single individual 94
  • 95. Endorsers and Message Appeals in Advertising Illustration of a typical-person endorsement 95
  • 96. Endorsers and Message Appeals in Advertising Trustworthiness Refers to the honesty, integrity, and believability of a source Often an endorser is perceived as highly trustworthy but not an expert Expertise Refers to the knowledge, experience, or skills possessed by an endorser as they relate to the endorsed brand Attractiveness The trait of being regarded as pleasant to look at in terms of a particular group’s concept of attractiveness. 96
  • 97. Endorsers and Message Appeals in Advertising Respect Represents the quality of being admired or even esteemed due to one’s personal qualities and accomplishments Similarity Represents the degree to which an endorser matches an audience in terms of characteristics pertinent to the endorsement relationship Age, gender, ethnicity, etc. “Birds of a feather flock together 97
  • 98. Endorsers and Message Appeals in Advertising Attracts attention Enhances liking of ad and brand Does not hurt comprehension Does not harm persuasion Does not enhance source credibility Nature of product affects the appropriateness of using humor Effective only when consumers’ evaluations of the advertised brand are already positive Effect of humor can differ due to differences in audience characteristics Humorous message may be so distracting that receivers ignore the message content 98
  • 99. Endorsers and Message Appeals in Advertising Eastpak backpacks 99
  • 100. Endorsers and Message Appeals in Advertising Appeal to fear is effective as a means of enhancing motivation Appeal by identifying the negative consequences of: Not using the product Engaging in unsafe behavior (example drinking and driving) Stimulates audience involvement with a message Promotes acceptance of message arguments Takes the forms of either Social disapproval or Physical danger 100
  • 101. Endorsers and Message Appeals in Advertising An insurance company’s appeal to fear 101
  • 102. Endorsers and Message Appeals in Advertising Degree of Persuasive Effectiveness Low Moderate High Level of Fear Intensity 102
  • 103. Endorsers and Message Appeals in Advertising Guilt appeals motivate emotionally mature individuals to undertake responsible action leading to a reduction in the level of guilt Generally, they focus on one’s past or future transgressions or failure to care for others 103
  • 104. Endorsers and Message Appeals in Advertising An illustrative guilt appeal 104
  • 105. Endorsers and Message Appeals in Advertising Initial attentional lure Enhance recall of message point Evoke emotional responses 105
  • 106. Endorsers and Message Appeals in Advertising Attention lure 106
  • 107. Endorsers and Message Appeals in Advertising Subliminal Refers to the presentation of stimuli at a rate or level that is below the conscious threshold of awareness 107
  • 108. Endorsers and Message Appeals in Advertising Example of using embedding in advertising 108
  • 109. Endorsers and Message Appeals in Advertising Attracts attention Promotes positive mood Increase receptivity of message Communicates meanings 109
  • 110. Endorsers and Message Appeals in Advertising Better in enhancing brand awareness Promotes better recall However, perceived as somewhat less believable Effective especially when the brand is a new Generates more purchases 110
  • 111. Endorsers and Message Appeals in Advertising Indirect Comparison 111
  • 112. Endorsers and Message Appeals in Advertising Direct Comparison 112
  • 113. Assessing Ad Message Effectiveness Message Research Methods Recognition & Recall Physiological Arousal Persuasion Sales Response 113
  • 114. Assessing Ad Message Effectiveness Recognition & Recall Starch readership service Physiological Arousal (magazines) Bruzzone tests (TV) Persuasion Burke day-after recall (TV) Sales Response 114
  • 115. Assessing Ad Message Effectiveness Starch-rated advertisement for the Toyota Sienna 115
  • 116. Assessing Ad Message Effectiveness Recognition & Recall • Psychogalvanometer Physiological Arousal • Pupilometer Persuasion Sales Response 116
  • 117. Assessing Ad Message Effectiveness Illustration of potential role for physiological measurement 117
  • 118. Assessing Ad Message Effectiveness Recognition & Recall • Ipsos-ASI Next*TV method Physiological Arousal • Rsc’s ARS Persuasion method Persuasion Sales Response 118
  • 119. Assessing Ad Message Effectiveness Recognition & Recall • IRI’s BehaviorScan • Nielsen’s SCANTRACK Physiological Arousal Persuasion Sales Response 119
  • 120. Traditional Advertising Media Media Vehicles The general Specific broadcast communication programs or print methods that carry choices in which advertising messages advertisements are e.g., television, magazines, placed newspapers, etc. e.g., Friends, NBC Evening News, Time, Cosmopolitan 120
  • 121. Traditional Advertising Media Out-of-home advertising Newspaper Magazines Radio Television Advertisers attempts to select the media and vehicles whose characteristics are most compatible with the advertised brand in reaching its target audience and conveying its intended message 121
  • 122. Traditional Advertising Media $5 Billion in 2000 Regarded as supplementary e.g., billboard(major), bus shelters, giant inflatables, shopping-mall displays, etc. 400,000 billboards in the US Designed with name recognition as the primary objective Two major forms: (1) Poster Panels and (2) Painted Bulletins 122
  • 123. Traditional Advertising Media Example of a poster panel 123
  • 124. Traditional Advertising Media 60 million households during week and nearly 62 million on Sundays Historically leading advertising medium but declining in recent years 124
  • 125. Traditional Advertising Media Hundreds of special - interest magazines 125
  • 126. Traditional Advertising Media Nearly 100% of home and cars have radios 126
  • 127. Traditional Advertising Media Nearly 98% of all households have televisions Uniquely personal and demonstrative yet expensive 127
  • 128. Traditional Advertising Media 8p.m.-11p.m. (7p.m.-10p.m.) Prime Time Early morning news - 4:30p.m. Daytime Preceding and following prime time Fringe Time 128
  • 129. Alternative Offline Advertising Media and Mass Online Advertising Two Broad Groupings of Media Alternatives: Alternative Offline Mass Media Mass Online Ad Media 129
  • 130. Alternative Offline Advertising Media and Mass Online Advertising Product Placements in Movies Videos for VCRs Virtual Signage at Sports Stadiums and Other Venues CD-Rom Advertising Yellow Page Advertising 130
  • 131. Alternative Offline Advertising Media and Mass Online Advertising 131
  • 132. Alternative Offline Advertising Media and Mass Online Advertising 132
  • 133. Alternative Offline Advertising Media and Mass Online Advertising Internet not replacement but key element of IMC programs 60% of U.S. households have internet access By 2005, online spending will represent 8% of overall advertising and amount to $16.5 billion 133
  • 134. Alternative Offline Advertising Media and Mass Online Advertising Individualization: Refers to the fact that the Internet user has control over the flow of information Interactivity: Allows for users to select the information they perceive relevant & for brand managers to build relationships with customers via two-way communication. 134
  • 135. Alternative Offline Advertising Media and Mass Online Advertising Websites Users seek out web sites in a goal-oriented fashion Movie web sites play prominent role in predicting box- office performance “Form follows function” 135
  • 136. Alternative Offline Advertising Media and Mass Online Advertising Banner Ads Equivalent of 30-second T.V. ads Who pays attention? Nielsen/NetRatings: Average click rate of 2001 was 0.49% Exposure not equivalent to attention 136
  • 137. Alternative Offline Advertising Media and Mass Online Advertising Pop-ups Ads that appear in a separate window out of nowhere 137
  • 138. Alternative Offline Advertising Media and Mass Online Advertising Interstitials/Superstitials Interstitials: Ads that appear between two content pages Superstitials: Short animated ads that play over web page 138
  • 139. Alternative Offline Advertising Media and Mass Online Advertising Site Sponsorships Advertiser is a partial or exclusive sponsor of a Web site and benefits from the visitations to the site Ex. IBM paid $1 Million to be sole sponsor of National Football League’s http://www.superbowl.com 139
  • 140. Offline and Online Direct Advertising Use of any of several media to transmit messages that encourage purchases of advertiser’s brands Postal mail and e-mail are the most important. Facilitated by practice of Database Marketing 140
  • 141. Offline and Online Direct Advertising Involves collecting and electronically storing info about past, present, and prospective customer Info is used to profile customers 141
  • 142. Offline and Online Direct Advertising B2b marketers have expanded usage of direct advertising 142
  • 143. Offline and Online Direct Advertising P-mail advertising: Advertising matter sent via the postal service to the person whom the marketer wishes to influence Ex. Letters, postcards, programs, calendars, catalogs, videocassettes, blotters, order blanks, price lists, menus, etc. 143
  • 144. Offline and Online Direct Advertising Test-drive kit mailing 144
  • 145. Offline and Online Direct Advertising Marketer’s perspective: Catalog selling provides efficient and effective way to reach prime prospects 145
  • 146. Offline and Online Direct Advertising Consumer’s perspective: 1. Saves time 2. Appeals to consumers fearful of shopping 3. Convenience of making purchase decisions at leisure 4. Modern conveniences make it easy to order from catalogs 5. Merchandise quality and prices are often comparable if not better than those of stores 6. Guarantees are attractive 146
  • 147. Offline and Online Direct Advertising The use of the Internet for sending commercial e-mail messages Alternative to banner ads, pop-ups, or other forms of rich- media presentations 147
  • 148. Offline and Online Direct Advertising Opt-in E-mailing: The practice of marketers’ asking for and receiving consumers’ permission to send them messages on a particular topic (s) 148
  • 149. Offline and Online Direct Advertising SPAM Unsolicited and unwanted commercial e-mail messages Brand-awareness is offset by negative reaction 149
  • 150. Offline and Online Direct Advertising 150
  • 151. Media Planning and Analysis Advertisers are placing more emphasis than ever on media planning Choosing media & vehicles is the most complicated of all marketing communications decisions Aside from specific vehicles in media, the planner has to choose geographical locations and budget distribution over time 151
  • 152. Media Planning and Analysis Media planning Involves the process of designing a scheduling plan that shows how advertising time and space will contribute to the achievement of marketing objectives 152
  • 153. Media Planning and Analysis Advertising Strategy Marketing Advertising Advertising Message Media Strategy Objectives Budget Strategy Strategy Media Strategy • Audience Selection • Objective Specification • Media and Vehicle • Media Buying 153
  • 154. Media Planning and Analysis Percentage of target audience that is exposed to an advertisement, at least once, during a certain time frame (usually four weeks) 154
  • 155. Media Planning and Analysis Average number of times an advertisement reaches the target audience in a four-week period 155
  • 156. Media Planning and Analysis How much advertising volume is required to accomplish advertising objectives Three weight metrics: Gross ratings Target ratings Effective ratings 156
  • 157. Media Planning and Analysis How advertising is allocated during the course of an advertising campaign : how should the media budget be distributed? 157
  • 158. Sales Promotion Management, Marketing-Oriented Public Relations, and Sponsorships What Exactly is Sales Promotion? Any incentive used by manufacturers to induce the trade and/or consumers to buy a brand and encourage sales force to aggressively sell it The incentive is additional to the basic benefits provided by the brand and temporarily changes its perceived price or value 158
  • 159. Sales Promotion Management, Marketing-Oriented Public Relations, and Sponsorships Promotion Targets All three groups – the sales force, retailers and consumers – are targets of sales promotional efforts 159
  • 160. Sales Promotion Management, Marketing-Oriented Public Relations, and Sponsorships Brand-Level Advertising and Sales Promotion Mix Encourage Pull Push Sales Force Retailers Consumers 160
  • 161. Sales Promotion Management, Marketing-Oriented Public Relations, and Sponsorships Push Strategy Using promotional efforts to push product through Pull Strategy the selling chain Using Consumer advertising to pull product through the channel of distribution 161
  • 162. Sales Promotion Management, Marketing-Oriented Public Relations, and Sponsorships Advertising to Consumers Advertising to Sales Promotion to Retailers Retailers Sales Promotion to Personal Selling to Consumers Retailers Personal Selling to Sales Promotion to Sales Promotion to Retailers Consumers Retailers Advertising to Retailers Advertising to Consumers 162
  • 163. Sales Promotion Management, Marketing-Oriented Public Relations, and Sponsorships All Consumers On- and Off-Deal On-Deal Only Consumers Consumers (S8) Loyalists Switchers Non-Deal-Prone Deal-Prone Non-Deal-Prone Deal-Prone Loyalists (S1) Loyalists Switchers (S5) Switchers Stockpiling Exceptionist Stockpiling-Exceptionist Loyalists (S2) Loyalists (S3) Loyalists (S4) S1- S8 = Segment1 - Segment 8 Nonstockpiling Stockpiling Switchers (S6) Switchers (S7) 163
  • 164. Sales Promotion Management, Marketing-Oriented Public Relations, and Sponsorships 164
  • 165. Sales Promotion Management, Marketing-Oriented Public Relations, and Sponsorships Unprofitable Promotion-insensitive Stockpiling loyalists Profitable On-Deal-Only consumers ‘May’ or Nonstockpiling or ‘May not’ Stockpiling promotion- sensitive consumers 165
  • 166. Trade-Oriented Sales Promotion Introduce new or revised products Increase distribution of new packages or sizes Build retail inventories Maintain/Increase manufacturer’s shelf space Obtain displays outside shelf locations Reduce excess inventory Achieve product features in retailer’s ads Counter competitive activity Sell as much as possible to final consumers 166
  • 167. Trade-Oriented Sales Promotion Trade allowances Cooperative advertising and vendor support programs Trade contests and incentives Trade shows 167
  • 168. Trade-Oriented Sales Promotion Trade Allowances Used by manufacturers to reward wholesalers and retailers for performing activities in support of the manufacturer’s brand 168
  • 169. Trade-Oriented Sales Promotion Slotting allowances Bill-back allowances Off-invoice allowances The fees manufacturers pay retailers for access to the slot, or location, Typically when a manufacturer to get its new brand accepted by retailers A form of bribery? or Legitimate cost of doing business? 169
  • 170. Trade-Oriented Sales Promotion Slotting allowances Bill-back allowances Off-invoice allowances Retailers receive allowances for featuring the manufacturer’s brand in advertisements or for providing special displays 170
  • 171. Trade-Oriented Sales Promotion Slotting allowances Bill-back allowances Off-invoice allowances Most frequently used form Deals offered periodically to trade that permit wholesalers and retailers to deduct a fixed amount from the invoice Retailers do not necessarily pass along to consumers the discounts 171
  • 172. Trade-Oriented Sales Promotion Cooperative (co-op) advertising An arrangement between a manufacturer and reseller whereby the manufacturer pays for all or some of the advertising costs undertaken by the reseller 172
  • 173. Trade-Oriented Sales Promotion Vendor support programs (VSPs) A retailers develops an advertising program in consultation with local advertising media and then invites its vendors to pay for a specific percentage of the media cost for the proposed campaign 173
  • 174. Trade-Oriented Sales Promotion Trade contest generally based on managers meeting a sales goal Trade given to retail managers and incentives salespeople for performing certain tasks Push money provide financial incentives to retail salespeople to aggressively sell to consumers a selected item 174
  • 175. Trade-Oriented Sales Promotion Trade show A temporary forum for sellers of a product category to exhibit and demonstrate their wares to present and prospective buyers 175
  • 176. Consumer-Oriented Promotions Three general categories of objectives (1) Generating trial purchases (2) Encouraging repeat purchases (3) Reinforcing brand images 176
  • 177. Consumer-Oriented Promotions Consumer Rewards All promotion techniques provide consumers with rewards Typically in the form of cash savings or free gifts Consumers are more responsive to immediate than delayed rewards 177
  • 178. Consumer-Oriented Promotions Consumer Generating Trial Encouraging Reinforcing Reward Purchases Repeat Purchases Brand Image Immediate  Sampling  Price-offs  Instant coupons  Bonus packs  Shelf-delivered  In-, on-, and near- coupons pack premiums  Games Delayed  Scanner-  In-and on-pack  Self- delivered coupons liquidating coupons  Rebates /Refunds premiums  Media- and mail-  Phone cards  Contests and delivered  Continuity sweepstakes coupons programs  Online coupons  Mail-in premiums  Free-with- purchase premiums 178
  • 179. Consumer-Oriented Promotions Sampling The premier sales-promotion device for generating trial usage by delivering an actual- or trial-sized product to consumers 179
  • 180. Consumer-Oriented Promotions Direct mail Newspapers and magazines Door to door by special • Mailed directly to households distribution crews • Targeted by demographic characteristics or On- or in-pack sampling geodemographics High-traffic locations In-store sampling Internet sampling 180
  • 182. Consumer-Oriented Promotions Direct mail Newspapers and magazines Door to door by special • The Sunday newspaper is an distribution crews increasingly attractive medium for broad-scale On- or in-pack sampling sampling High-traffic locations In-store sampling Internet sampling 182
  • 184. Consumer-Oriented Promotions Direct mail Newspapers and magazines Door to door by special • Allows considerable targeting distribution crews • Lower cost than in-store or On- or in-pack sampling direct-mail sampling • Short lead times High-traffic locations In-store sampling Internet sampling 184
  • 185. Consumer-Oriented Promotions Door-to-Door sampling 185
  • 186. Consumer-Oriented Promotions Direct mail Newspapers and magazines Door to door by special distribution crews • Uses the package of another product to serve as the On- or in-pack sampling sample carrier High-traffic locations In-store sampling Internet sampling 186
  • 187. Consumer-Oriented Promotions On- or In-pack Sampling 187
  • 188. Consumer-Oriented Promotions Direct mail Newspapers and magazines Door to door by special distribution crews • Shopping centers, movie theaters, airports, or special On- or in-pack sampling events High-traffic locations In-store sampling Internet sampling 188
  • 189. Consumer-Oriented Promotions Direct mail Newspapers and magazines Door to door by special • Provide product samples in distribution crews grocery stores and other retail outlets for trial while On- or in-pack sampling consumers are shopping • The most frequent form High-traffic locations In-store sampling Internet sampling 189
  • 191. Consumer-Oriented Promotions Direct mail Newspapers and magazines • Brand managers are Door to door by special increasingly distributing distribution crews samples online • Specialized online sample On- or in-pack sampling delivery firms aid this process High-traffic locations In-store sampling Internet sampling 191
  • 192. Consumer-Oriented Promotions Coupon A promotional device that provides cents-off to consumers upon its redemption 192
  • 194. Consumer-Oriented Promotions Instantly Redeemable Coupons Shelf- Delivered Coupons Scanner- Delivered Coupons Peelable from the package at the point of purchase Represent an immediate reward An alternative to price-off deals Redemption rate about 30% 194
  • 195. Consumer-Oriented Promotions Instantly Redeemable Coupons Shelf- Delivered Coupons Scanner- Delivered Coupons Instant Coupon Machines, Smart SourceTM Machines are attached to the shelf alongside coupon-sponsoring brands Redemption rate about 11% 195
  • 196. Consumer-Oriented Promotions Instant coupon machine (so called SmartSource) 196
  • 197. Consumer-Oriented Promotions Instantly Redeemable Coupons Shelf- Delivered Coupons Scanner- Delivered Coupons Catalina Marketing Corp. offers two programs Reward is delayed Potentially very effective because they provide a way to carefully target coupon distribution 197
  • 198. Consumer-Oriented Promotions Scanner- Delivered Coupons Checkout Coupon Checkout Direct Delivers coupons based on the particular brands a shopper has purchased Directed at competitive-brand users Redemption rate about 9% 198
  • 199. Consumer-Oriented Promotions Checkout coupon for Lean Cuisine Hearty Portions 199
  • 200. Consumer-Oriented Promotions Scanner- Delivered Coupons Checkout Coupon Checkout Direct A coupon for the sponsoring manufacturer’s brand is automatically dispensed for use on the shopper’s next purchase occasion Directed at users who satisfy a manufacturer’s prescribed demographic or product-usage requirements 200
  • 201. Consumer-Oriented Promotions Mail-Delivered Coupons Highest household penetration • Relatively expensive Highest redemption rate of all • Inefficient and expensive for mass-delivered coupons brands enjoying a high Increase the amount of product market share purchases 201
  • 202. Consumer-Oriented Promotions Media-Delivered Coupons 80% of all coupons distributed via • Redemption rate is very Sunday newspaper freestanding low inserts • Don’t generate much Broad exposure trade interest Relatively cheaper • Susceptible to Reminder function misredemption Advertising function 202
  • 204. Consumer-Oriented Promotions Included in- or on- product’s package Cannot be removed at the point of purchase;It’s for next purchase A coupon for one brand is promoted by another brand (crossruffing) Has bounce-back value No distribution costs Redemption rates are higher Delayed value to consumers Don’t reach nonusers of the carrying brand 204
  • 205. Consumer-Oriented Promotions (F) Manufacturer Redemption Center (A) (E) (D (B) (C) ) Consumers Retailers Clearinghouse (M) * Organized criminals * Terrorists M: misredemption * Media employees * Crooked retailers 205
  • 206. Consumer-Oriented Promotions Premiums Articles of merchandise or service offered by manufacturers to induce action on the part of the sales force, trade representatives, or consumers 206
  • 207. Consumer-Oriented Promotions Mail-in Offers • Receive a premium item for In-, On-, and submitting a required number of proofs of purchase Near- Pack • Not only stimulate consumer trial, also reward brand loyalties and encourage repeat purchase Self-Liquidating behavior • 2 to 4% of consumers take advantage Phone Cards 207
  • 209. Consumer-Oriented Promotions Free-in-the-Mail • Offer a premium item inside or attached In-, On-, and • Immediate value Near- Pack • Near-pack premium provide the retail trade with premium item that retailers then give Self-Liquidating to consumers • Near-pack is less expensive due to no additional Phone Cards packaging 209
  • 210. Consumer-Oriented Promotions Free-in-the-Mail In-, On-, and • Consumer mails in a proof of Near- Pack purchase along with sufficient money to receive the premium item Self-Liquidating • The premium should be appealing and represent a value Phone Cards 210
  • 212. Consumer-Oriented Promotions Phone debit card Free-in-the-Mail Performing customer-holding objective Delayed reward In its infancy In-, On-, and Commonly, a preset amount of long- Near- Pack distance calling time Self-Liquidating Phone Cards 212
  • 213. Consumer-Oriented Promotions Effective for certain objectives Reward present users Get consumers to purchase larger quantities than normal Establish repeat purchase Ensure promotion dollars reach consumers Obtain off-shelf display space Provide the sales force with incentive 213
  • 214. Consumer-Oriented Promotions Extra quantities of a product that are offered for the same price Alternative to price-off deals Many bonus-packs will be purchased by regular customers who would have purchased the brand anyway 214
  • 216. Consumer-Oriented Promotions Rebates/Refunds Manufacturers give cash discounts or reimbursements to consumers who Submit (mail) proofs of purchase 216
  • 217. Consumer-Oriented Promotions A refund offer 217
  • 218. Consumer-Oriented Promotions Primarily to enhance a brand’s image Sweepstakes are preferred because it’s relatively inexpensive and simple to execute Sweepstakes Contest purely on the basis of Solve the specific chance, no need for contest problem and proofs of purchase may need proofs of purchase 218
  • 221. Consumer-Oriented Promotions Provide an instant reward Create excitement, stimulate brand interest, and reinforce brand loyalty 221
  • 223. Consumer-Oriented Promotions Reward consumers’ repeat purchasing “Loyalty programs”, “point programs” Serve to cement a relation with the consumer 223
  • 224. Consumer-Oriented Promotions The Spam stuff points program 224
  • 225. Consumer-Oriented Promotions The Internet is becoming a major medium for consumer-oriented promotions Online couponing is a cheaper and more targeted, but susceptible to fraud 225
  • 226. Consumer-Oriented Promotions Overlay Tie-in Program Promotion Or combination program Combines two or more promotion techniques Increases the likelihood that consumers will attend a promotional message 226
  • 227. Consumer-Oriented Promotions Overlay Tie-in Program Promotion Or joint promotion Simultaneous promotion of multiple brands Cost-effective, but lead time is lengthened The partners’ images should reinforce each other other 227
  • 229. Consumer-Oriented Promotions To increase store traffic › Couponing › Frequent-shopper card program › Sampling 229
  • 231. Marketing Public Relations and Sponsorship Marketing Marketing Public Relations (MPR) Marketing-oriented aspect of public relations that is an organizational activity involved with fostering goodwill between a company and its various publics 231
  • 232. Marketing Public Relations and Sponsorship Marketing Proactive MPR Reactive MPR Dictated by a company’s marketing objectives Offensively oriented and opportunity seeking • The conduct of public relations in response to outside influences • Attempt to repair company’s reputation, prevent market erosion, and regain lost sales 232
  • 233. Marketing Public Relations and Sponsorship Marketing Proactive MPR Widely used forms of publicity in MPR Product introductions or product revisions Product releases Credibility accounts for the effectiveness Publicity is the major tool Executive-statement Feature articles 233
  • 234. Marketing Public Relations and Sponsorship Marketing Announce new products Provide relevant information, Product releases features and benefit Audiovisual product releases (video news releases, or VNRs) gained wide usage Executive- statement Feature articles 234
  • 235. Marketing Public Relations and Sponsorship Marketing News releases quoting CEOs and other corporate executives Product releases May address a wide variety of issues Published in the news section Carry a significant degree of Executive- credibility statement Feature articles 235
  • 236. Marketing Public Relations and Sponsorship Marketing Detailed descriptions of products or other newsworthy programs Product releases Written by a PR firm for immediate publications or airing Inexpensive to prepare Executive- statement Feature articles 236
  • 237. Marketing Public Relations and Sponsorship Marketing Often product defects and failures Negative publicity are the factors cases Quick and positive responses are imperative • Product tampering cases -Tylenol and Sudafed • The Perrier case • The Pepsi Hoax • Coke in Europe 237
  • 238. Marketing Public Relations and Sponsorship Marketing Old and New Proctor and Gamble’s Logos 238
  • 239. Marketing Public Relations and Sponsorship Marketing Involve investments in events or causes for the purpose of achieving various corporate objective Event Cause-oriented sponsorships sponsorships 239
  • 240. Marketing Public Relations and Sponsorship Marketing Event Sponsorship A form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural , social, or other type of high- interest public activity 240
  • 241. Marketing Public Relations and Sponsorship Marketing The Oscar Mayer Wienermobile 241
  • 242. Marketing Public Relations and Sponsorship Marketing Cause-Related Marketing Based on the idea that a company will contribute to a cause every time the customer undertakes some action 242
  • 243. Marketing Public Relations and Sponsorship Marketing Cause-related marketing illustration 243
  • 244. Personal Selling A form of person-to-person communication in which a salesperson works with prospective buyers and attempts to influence their purchase needs in the direction of his or her company’s products or service
  • 245. Personal Selling Enhancing brand equity Educating customers Providing product usage and marketing assistance Providing after-sale service and support to buyers
  • 246. Personal Selling 1. High level of 4. Communicate customer attention more technical and complex information 2. Customize the 5. Demonstrate a message product’s functioning and characteristics 3. Yields immediate 6. Develop long-term feedback relationship
  • 247. Personal Selling Job freedom Variety and challenge Opportunities for advancement Attractive compensation and non-financial rewards
  • 248. Personal Selling Based on trust and mutual agreement Customer-driven atmosphere Act as if on customer’s payroll After-sales service is key No one solution is appropriate for all customers Professionalism and integrity are essential
  • 250. Personal Selling Trade Selling Typically employees of manufacturers Missionary Selling Sell through their direct customers Technical Selling Requires limited prospecting and places greater emphasis on New-business Selling servicing accounts Retail Selling Telemarketing
  • 251. Personal Selling Trade Selling Employees of manufacturers Missionary Selling Typically pharmaceutical industry Technical Selling Sells for its direct customers (wholesalers) New-business Selling Retail Selling Telemarketing
  • 252. Personal Selling Trade Selling Typically trained in technical fields such as chemistry, Missionary Selling engineering, computer science, and accounting Technical Selling Must be able to communicate complicated features to prospective customers New-business Selling Retail Selling Telemarketing
  • 253. Personal Selling Trade Selling Must continuously call on new accounts Missionary Selling Bird-dogging, cold calling Continually work to open Technical Selling new accounts e.g., Office copiers, personal computers, business forms, New-business Selling and personal insurance Retail Selling Telemarketing
  • 254. Personal Selling Trade Selling Customer comes to the salesperson Missionary Selling Have considerable product knowledge, Technical Selling strong interpersonal skills, and ability to work with a diversity of customers New-business Selling Retail Selling Telemarketing
  • 255. Personal Selling Trade Selling Is used to support or even replace the sales forces Missionary Selling Versatility applies to both consumer-oriented Technical Selling products and business-to- business marketing Not appropriate for all New-business Selling sales organizations Retail Selling Telemarketing
  • 256. Personal Selling How essential is face-to-face contact? Customers geographically concentrated or dispersed? How large are typical order sizes? What decision criteria are important? How many decision makers? What is the nature of purchase? What is the status of the decision maker? What specific selling tasks have to be performed?
  • 257. Personal Selling To best represent the customer’s interests by capitalizing on the strengths and expertise of various personnel Also prevalent in business-to-business selling situation Include experts drawn from throughout the organization
  • 258. Personal Selling Aptitude Includes interests, intelligence, and personality characteristics Skill level Some people better suit to one type of sales job than another Motivational level All must be customer oriented and empathetic Role perceptions Personal characteristics Adaptability
  • 259. Personal Selling Aptitude Includes selling, interpersonal, and technical skills Skill level Companies instill the skills needed for success Motivational level One of the most important skills—”Close a sale” Getting along with immediate Role perceptions superior Personal characteristics Adaptability
  • 260. Personal Selling Aptitude The amount of time and energy a person is willing to Skill level expend performing tasks Reciprocally related to performance Motivational level People are driven in different ways Role perceptions Personal characteristics Adaptability
  • 261. Personal Selling Competitors Ego-driven Desire to win and to Desire to be the best, beat rivals to win awards, and to be organized Achievers Service-oriented Routinely set higher goals and like Good at building accomplishment relationships with customers
  • 262. Personal Selling Aptitude Accurate role perception is crucial Skill level Often they face role conflicts that diminish their sales performance Motivational level Organizational citizenship behaviors (OCBs) Role perceptions Personal characteristics Adaptability
  • 263. Personal Selling Aptitude Age, physical size, appearance, race, gender, etc. Skill level It doesn’t ensure sales success or failure Motivational level Successful salespeople are androgyny (possess both male and female traits) Role perceptions Personal characteristics Adaptability
  • 264. Personal Selling Aptitude Ability to adapt to situational circumstances Skill level Due in part to personal aptitude but also includes learned skills Motivational level Absolutely essential for success Role perceptions Personal characteristics Adaptability
  • 265. Personal Selling First Impression Self-esteem Depth of knowledge Extended focus Breadth of knowledge Sense of humor Adaptability Creativity Sensitivity Taking risks Enthusiasm Honesty & ethics
  • 266. Regulatory, Ethical, and “Green” Issues in Marketing Communications Federal State Regulation Regulation Marketing Communications 266
  • 267. Regulatory, Ethical, and “Green” Issues in Marketing Communications Regulation of deceptive advertising Regulation of unfair practices Information regulation Regulation of product labeling Regulation of prescription drug advertising 267
  • 268. Regulatory, Ethical, and “Green” Issues in Marketing Communications Ethics in our context involves matters of right and wrong, or moral, conduct pertaining to any aspect of marketing communications 268
  • 269. Regulatory, Ethical, and “Green” Issues in Marketing Communications Example of Controversial Advertising - Camel’s “Joe camel” 269
  • 270. Regulatory, Ethical, and “Green” Issues in Marketing Communications The Golden Act in a way that you would want Rule The Take only actions that would be Professional viewed as proper by an objective Ethics panel of your professional colleagues “Would l feel comfortable The TV test explaining this action on television to the general public?” 270
  • 271. Regulatory, Ethical, and “Green” Issues in Marketing Communications Green advertising Packaging response Seal-of-Approval programs Cause-Oriented Programs Point-of-Purchase 271
  • 272. Regulatory, Ethical, and “Green” Issues in Marketing Communications Green Advertising Promoting an Image of Environmental Responsibility 272
  • 273. Regulatory, Ethical, and “Green” Issues in Marketing Communications Green advertising Packaging response Seal-of-Approval programs Cause-Oriented Programs Point-of-Purchase 273
  • 274. Regulatory, Ethical, and “Green” Issues in Marketing Communications Recyclable bottles Polystyrene to paperboard Plastic to cardboard Smaller packages 274
  • 275. Regulatory, Ethical, and “Green” Issues in Marketing Communications Green advertising Packaging response Seal-of-Approval programs Cause-Oriented Programs Point-of-Purchase 275
  • 276. Regulatory, Ethical, and “Green” Issues in Marketing Communications Designed to assist consumers in identifying environmentally friendly products and brands Green Seal of Approval “Chasing arrows logo” 276
  • 277. Regulatory, Ethical, and “Green” Issues in Marketing Communications Green advertising Packaging response Seal-of-Approval programs Cause-Oriented Programs Point-of-Purchase 277
  • 278. Regulatory, Ethical, and “Green” Issues in Marketing Communications Cause-Oriented programs 278