Promoting Products Using Promoting Products Using Interactive and Integrated Interactive and Integrated Marketing CommunicationsMarketing Communications

Change &Change & Promotion MixPromotion Mix

Definition- Promotion Definition- Promotion inform peopleinform people

Promotion MixPromotion Mix Integrated Marketing Integrated Marketing

Communication (IMC)Communication (IMC) ChangeChange

TechnologyTechnology Build RelationshipsBuild Relationships InteractivityInteractivity

Factors That Affect Factors That Affect

The Promotion MixThe Promotion Mix Type of ProductType of Product Stage in the Stage in the

Product Life CycleProduct Life Cycle Target Market Target Market

CharacteristicsCharacteristics Actions of Actions of

CompetitorsCompetitors Available FundsAvailable Funds

Objectives of Objectives of Integrated Integrated MarketingMarketing

Build Brand EquityBuild Brand Equity Provide InformationProvide Information Manage Demand & Manage Demand &

Build SalesBuild Sales Differentiate ProductsDifferentiate Products Influence Perceptions, Influence Perceptions,

Attitudes, & Buyer Attitudes, & Buyer BehaviorBehavior

Figure 16.3 Advertising Expenditure by Figure 16.3 Advertising Expenditure by MediaMedia

$215 million total (1999)$215 million total (1999)

Total Direct Total Direct Advertising Advertising

ExpendituresExpenditures

In billionsIn billions

Source: Source: The Direct Marketing Association

$104.3

$142.1 $153.0$164.1

$231.4

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

1992 1996 1997 1998 2002

1999 $215 billion1999 $215 billion

Advertising Advertising ExpendituresExpenditures

1924 $1 billion1924 $1 billion

1974 $35 billion1974 $35 billion

1990 $129 billion1990 $129 billion

1993 $150 billion1993 $150 billion

2002 $248 billion2002 $248 billion

$448 billion $448 billion worldwideworldwide

5. _______________5. _______________

Advertising Advertising Media:Media:

1. _______________1. _______________

2. _______________2. _______________

3. _______________3. _______________

4. _______________4. _______________

8. _______________8. _______________

6. _______________6. _______________

7. _______________7. _______________

Ways and Ways and places to places to advertiseadvertise

NewspapersNewspapers

TelevisionTelevision

RadioRadio

MagazinesMagazines

OutdoorOutdoor

Direct MailDirect Mail

Yellow Yellow PagesPages

InternetInternet

What might be the best advertising media for: (and where have you seen them?)

-A rock concert at an outdoor theater -Sales at the Mall -Products aimed specifically at women -Product aimed specifically at men -A local news show-Long distance telephone service-Credit cards-Computer software-A storage case for CDs and tapes for the car-Classes at CVCC

Advertising Advertising TodayToday

Persuasive Persuasive CommunicationCommunication

InfomercialsInfomercials

InternetInternet

Global AdvertisingGlobal Advertising

Century’sCentury’s Top Ad JinglesTop Ad Jingles

““You deserve a You deserve a break today”break today”

““Be all you can Be all you can be”be”

““Pepsi-Cola hits Pepsi-Cola hits the spot”the spot”

““Mm Mm good!”Mm Mm good!” ““See the USA in See the USA in

your Chevrolet”your Chevrolet”

““I wish I were an I wish I were an Oscar Mayer wiener”Oscar Mayer wiener”

““Double your Double your pleasure, double pleasure, double your fun”your fun”

““Winston tastes Winston tastes good like a cigarette good like a cigarette should”should”

““It’s the real thing”It’s the real thing” ““A little dab’ll do yaA little dab’ll do ya””

Source: Source: Advertising Age

Favorite Budweiser Favorite Budweiser Advertising SlogansAdvertising Slogans

18991899

King ofKing of

Bottled BeersBottled Beers

America’sAmerica’s

Social Social

CompanionCompanion

19371937 19431943

Food’s Food’s Favorite Favorite

CompanioCompanionn

19471947

It lives with It lives with good taste good taste everywhereeverywhere

19531953

When you When you know your know your beer… it’s beer… it’s

bound to be bound to be BudBud

19711971

When you When you say say

Budweiser, Budweiser, you’ve said it you’ve said it

allall

19931993

Proud to Proud to be your be your

BudBud

Do Blatantly Sexy Do Blatantly Sexy Ads Turn You Off?Ads Turn You Off?

4

5145

4

72

24

01020304050607080

Strongly/SomewhatAgree

Strongly/SomewhatDisagree

Don't Know

Per

cen

t

Men Women

Source: Source: USA Today

Amount Spent On...Amount Spent On...

Internet Advertising Internet Advertising = =

$1.92 Billion$1.92 Billion

Outdoor Advertising Outdoor Advertising ==

$1.58 Billion$1.58 Billion

Source: Source: CIO Web Business, 1/1/1999

2002 Amount U.S. Spent 2002 Amount U.S. Spent On...On...

Internet Internet Advertising Advertising

$5.74 Billion$5.74 Billion

Outdoor Outdoor AdvertisingAdvertising

$2.40 Billion$2.40 Billion

Source: Source: AdAge.com

Top Online Top Online Advertising IndustriesAdvertising Industries

Source: Nielsen/NetRating, 2002

0% 5% 10% 15% 20% 25% 30% 35%

Retail Goods & Services

Financial Services

Web Media

Travel

Hardware & Electronics

Telecom

Consumer Goods

Entertainment

Future Internet Future Internet AdvertisingAdvertising

Will reach $22 billion in the U.S. Will reach $22 billion in the U.S. The rest of world will spend The rest of world will spend

$10.8 billion.$10.8 billion. $27 billion (10% of all U.S. ad $27 billion (10% of all U.S. ad

spending) will be siphoned from spending) will be siphoned from traditional mediatraditional media

Hardest hit: newspapers and Hardest hit: newspapers and direct maildirect mail

Source: Source: CIO Web Business, 10/1/1999

Steps in Personal Steps in Personal SellingSelling

Prospect/QualifyProspect/QualifyProspect/QualifyProspect/Qualify

PreapproachPreapproachPreapproachPreapproach

ApproachApproachApproachApproach

PresentatioPresentationn

PresentatioPresentationn

ObjectionsObjectionsObjectionsObjections

CloseCloseCloseClose

Follow-upFollow-upFollow-upFollow-up

Public Public RelationsRelations

StepsStepsListen to the Listen to the

publicpublic

Change policies Change policies and proceduresand procedures

Inform people you Inform people you are being are being responsive responsive

PublicityPublicity+Free (if interesting)+Free (if interesting)+More Effective Than +More Effective Than

AdsAds+Believable (as +Believable (as

news)news)- No Control over use- No Control over use- No Repetition likely- No Repetition likely

Sales PromotionSales Promotion Internal - salespeopleInternal - salespeople External –outside the External –outside the

companycompany Sampling – free trialsSampling – free trials Word-Of-MouthWord-Of-Mouth Viral Marketing/SwagViral Marketing/Swag TestimonialsTestimonials Technology – consumer Technology – consumer

data collectiondata collection

Stimulating consumers and dealersStimulating consumers and dealers

Tips onTips on Issuing CouponsIssuing Coupons

Coupons can be Coupons can be used as a “Thank used as a “Thank you for buying” or a you for buying” or a “Stop and try us.”“Stop and try us.”

The value must be The value must be enough to attract enough to attract customers.customers.

Use coupon Use coupon promotions promotions sparingly.sparingly.

Get professional Get professional help to get help to get maximum maximum exposure.exposure.

Color-code your Color-code your coupons for coupons for different groups different groups that use them.that use them.

Top Celebrity Top Celebrity EndorsersEndorsers

CelebrityCelebrityCandice BergenCandice BergenBill CosbyBill CosbyKathi Lee Kathi Lee

GiffordGiffordCindy CrawfordCindy CrawfordJerry SeinfieldJerry SeinfieldCybil ShepherdCybil Shepherd

ProductProduct(s)(s)SprintSprintJell-OJell-OCarnival Cruise Carnival Cruise

LinesLinesRevlon, PepsiRevlon, PepsiAmerican ExpressAmerican ExpressL’OrealL’Oreal

Top Sports Top Sports EndorsersEndorsers

AthleteAthleteMichael Michael

JordanJordan

Tiger WoodsTiger Woods

Arnold PalmerArnold Palmer

Andre AgassiAndre Agassi

EndorsementsEndorsements$ 47.0 Million$ 47.0 Million

$ 24.0 Million$ 24.0 Million

$ 16.0 Million$ 16.0 Million

$ 14.0 Million$ 14.0 Million

Source:Source: Fortune Magazine

Promotional Promotional StrategiesStrategies

Push StrategyPush Strategy

Pull StrategyPull Strategy

PromotioPromotionn

DistributionDistribution

Retail Retail StoreStore

CustomerCustomer

PromotioPromotionn

consumers see and buyconsumers see and buy consumers requestconsumers request

Building IMCBuilding IMC

IMCIMC

Gather Data & Gather Data & Maintain Maintain DatabaseDatabaseRespond Quickly To Respond Quickly To Adjust Policies & Adjust Policies & ProceduresProcedures

Provide Provide Accessible Accessible InformationInformation

Integrated Marketing CommunicationIntegrated Marketing Communication