ADVERTISING

MANAGEMENT
…through the lens of Branding

Dr. Close
 Key Participants in IMC Management

Marketing
MarketingOrganization
Organization
••Marketing Plan
Marketing Plan
••Goal & Objectives Personal
Goal & Objectives IMC PersonalSelling
Selling
••Customer/Prospect
Customer/Prospect IMCManagement
Management
Databases
Databases

Advertising
AdvertisingAgency
Agency
••Research
Research Public
••Creative Strategies
Creative Strategies PublicRelations
Relations
••Production
Production
••Message Placement
Advertising
Advertising
Message Placement

Sales
SalesPromotions
Promotions
Specialized
SpecializedPromotion
Promotion
P-O-P
P-O-P
Organizations Internet Supportive
Organizations
••Media Organizations InternetAdvertising
Advertising Supportive
Media Organizations
••Event Management Firms
Event Management Firms
••Web Site Designers
Web Site Designers
••Sales Promotions Agencies
Sales Promotions Agencies
••Direct Marketing Agencies
Direct Marketing Agencies Direct
••Public Relations Firms
Public Relations Firms DirectMarketing
Marketing Sales
SalesPromotions
Promotions
••P-O-P Agencies & Designers
P-O-P Agencies & Designers
e-Commerce
e-Commerce
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 Integrated Marketing Communications

FACTORS CONTRIBUTING TO IMC’s RISING PROMINENCE

• Fragmentation of Media
• Better Audience Assessment Through Database Technology
• Consumer Empowerment
• Increased Advertising Clutter
• Shifting Channel Power
• Desire of Greater Accountability

1.21
 Relationship Between Promotion,
the Promotional Mix, &
Integrated Marketing Communications

PROMOTION
• Communication Process in Marketing
• Used to Create a Favorable Predisposition Toward:
– Brand of Product
– Service
– Idea
– Person

PROMOTIONAL MIX
• Blend of Communications Tools & Activities Used by a Firm
• Carries out the Promotion Process
• Communicates Directly with Target Markets

1.2
 Relationship Between Promotion,
the Promotional Mix, &
Integrated Marketing Communications (con’t)

INTEGRATED MARKETING COMMUNICATIONS (IMC)

• Manages the Processes & Activities of Using Promotional Tools
• Unified Way
• Produces a Synergistic Communications Effect

1.3
 Relationship Between Promotion,
the Promotional Mix, &
Integrated Marketing Communications (con’t)

• Promotion: Process

• Promotion Mix: Tools

• IMC: Management of the

Promotion Mix

1.4
 The Promotional Mix

ADVERTISING
• Paid Mass Media Attempt to Persuade
• Complex System of Strategic Planning &
Creative Genius
INTERNET ADVERTISING
• Electronic Mail (e-mail)
• Internet Relay Chat (IRC)
• Usenet
• World Wide Web (www)
SALES PROMOTION
• Use of Incentives to Generate a Specific Short-Term Response
– Household Consumer
– Trade Buyer
– Business Buyer

1.5
The Promotional Mix

DIRECT MARKETING & e-COMMERCE

• Distinguished From Other Primary Promotional Tools
in 3 Ways
– Uses a Combination of Media
– Designed to Elicit a Direct Response
– Transactions Can Occur Anywhere

• E-Commerce is Another Form of Direct Marketing

– Business is Conducted Between Buyers & Sellers
Using Electronic Exchange Media

1.8
 The Promotional Mix

SPONSORSHIP
• Funding an Event
• Creating an Event to Showcase a Firm’s Brand

POINT-OF-PURCHASE
• Materials Used in Retail Setting to Attract Shoppers’ to a
Company’s Brand

SUPPORTIVE COMMUNICATIONS
• Used to Target Audiences Outside Mainstream Media or
Electronic Communications

1.9
 The Promotional Mix

PUBLIC RELATIONS
• Communication that can Foster Goodwill Between a Firm
& its Many Constituent Groups

PERSONAL SELLING
• Presentation of Information about a Firm’s Products or
Services by One Person to Another Person or to a Small
Group of People

1.10
 The Promotional Mix

ROLE OF PROMOTION IN MARKETING STRATEGY

• Must Have Marketing Strategy Decisions about Products
(Brand)
– Branding – Established Name, Term, Symbol or Design
that Identifies for Consumers that a Product is being
Offered by a Particular Seller & Clearly Distinguished the
Product of that Seller from those Offered by Competitors

1.12
 The Promotional Mix

ROLE OF PROMOTION IN MARKETING STRATEGY Affects 3 Key

Aspects of Decision Making with Respect to Brands
– Creating the Marketing Mix
– Achieving Effective Market Segmentation, Product
Differentiation, & Positioning
– Enhancing Revenues & Profits

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 The Promotional Mix

– Assumes a Wide Range of Responsibilities

Related to:
• Conception
• Pricing

1.14
 The Promotional Mix

ROLE OF PROMOTION IN THE MARKETING MIX (con’t)

– Promotion Affects the Product Area of the
Marketing Mix
• Information & Persuasion
• Introduction of New Brand or Brand Extensions
• Building & Maintaining Brand Loyalty
Among Consumers
• Building & Maintaining Brand Loyalty
Within the Trade

1.15
One Role for Promotion

is to Introduce Brand/Line
Extensions

Example: Extension of
Jell-O into
the Yogurt Market

Go-gurt?
(I say no-gurt!)

1.16
 The Promotional Mix

ROLE OF PROMOTION IN MARKETING

_Price
• Effects the Consumer Market
• Effects the Trade Market

– Distribution
• Consumer Access to Brands
• Securing Trade Distribution

1.17
Role of Promotion in Effective Market Segmentation,
Differentiation & Positioning

• Promotion is Important in Helping to

Execute These Strategies
– Market Segmentation
– Product Differentiation
– Positioning
• External
• Internal

1.18
 The Role of Promotion in Revenue & Profits

• Sales Occur
– Brand has Well-Conceived Marketing Mix
– Complete Marketing Mix
– Good Promotion
• Large-Scale Demand /Production Produces
– Cost to Produce Item is Reduced
– Known as Economies of Scale
• Brand Loyalty at Any Cost
– Firm Raises Prices
– Known as Inelasticity of Demand

1.19
Promotional Tools Help
Increase Brand Loyalty
(or even brand love)

1.20
Cut Through the
Cr*@!

1.22