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Introduction to Marketing
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Chapter 13 Objectives
1.1. Appreciate the variety of marketing Appreciate the variety of marketing communications tools, and how they communications tools, and how they work together to accomplish work together to accomplish communication objectives. communication objectives.
2.2. Understand the nature, importance, Understand the nature, importance, and features of integrated marketing and features of integrated marketing communications.communications.
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Chapter 13 Objectives
3.3. Describe the concept of brand-equity Describe the concept of brand-equity enhancement and the role of enhancement and the role of marketing communications in marketing communications in facilitating this objective.facilitating this objective.
4.4. Comprehend the factors that Comprehend the factors that determine how different marketing determine how different marketing communications elements are communications elements are effectively combined. effectively combined.
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Chapter 13 Objectives
5.5. Discuss the primary decision Discuss the primary decision spheres involved in managing the spheres involved in managing the marketing communications process.marketing communications process.
6.6. Evaluate the nature and function of Evaluate the nature and function of the major MarCom tools: (a) the major MarCom tools: (a) advertising, (b) sales promotion, (c) advertising, (b) sales promotion, (c) public relations, and (d) sponsorship public relations, and (d) sponsorship and event marketing.and event marketing.
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Integrated Marketing Communications
• The dramatic changes in the field of marketing communications over the last decade have challenged marketing communicators to use communications methods that will:
– Break through the communications clutter in the marketplace
– Reach audiences with interesting and persuasive messages
– Assure that MarCom investments yield an adequate return on investment
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The Tools of Marketing Communications
The MarCom Mix:
1. Personal Selling
2. Advertising
3. Public Relations
4. Sales Promotion
5. Sponsorship Marketing
Objective 1
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The MarCom Mix
Objective 1
1. Personal Selling• Interaction between salesperson and
prospect to sell products such as insurance, automobiles, and real estate.
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The MarCom Mix
2. Advertising• Informs the end customer or B2B
customer about products and brand benefits and ultimately influences brand choice.
Objective 1
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The MarCom Mix
3. Public Relations• Garners positive publicity for the
company and its brands through news items or editorial comments.
Objective 1
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The MarCom Mix
Objective 1
4. Sales Promotion• Creates an immediate response from
the market.– Trade-oriented sales promotions– Consumer-oriented sales
promotions
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The MarCom Mix
5. Sponsorship Marketing• Represents an opportunity for a
company and its brands to directly target communications toward narrow, but highly desirable, audiences.
• Associates a brand with a charitable cause, a high profile event, or a cultural affair.
Objective 1
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The Philosophy and Practice of Integrated Marketing Communications
Integrated Marketing Communications:• A move towards fully integrating all
business practices that communicate something about a company’s brands to present or prospective customers.
Objective 2
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Integrated Marketing Communications
Objective 2
Five Key Aspects of IMC:1. Start with the customer or prospect2. Use any form of relevant contact3. Achieve Synergy4. Build Relationships5. Affect Behavior
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The Philosophy and Practice of Integrated Marketing Communications
Key Changes in MarCom from the IMC Thrust:
• Reduced dependence on mass-media advertising.
• Increased reliance on highly targeted communication methods.
• Expanded efforts to assess communications’ return on investment.
Objective 2
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Enhancing Brand Equity
• Brand Equity:
A brand possesses equity to the extent that customers are familiar with the brand and have stored in memory favorable, strong, unique brand associations.
• Brand Equity consists of two forms of knowledge:– Brand Awareness– Brand Image
Objective 3
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Enhancing Brand Equity
• Brand Awareness:– Brand Recognition– *Brand Recall* (It is this deeper level of awareness, recall,
to which marketers aspire)
• Brand Image:– Can be thought of in terms of the types
of associations that come to the consumer’s mind when contemplating a particular brand.
Objective 3
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Determining an Appropriate Mix of IMC Tools
Five Factors to Consider:
1. What is the intended market?
2. What objectives must the MarCom initiative achieve?
3. What is the product life-cycle stage?
4. What are competitors doing?
5. What is the available budget for marketing communications?
Objective 4
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Managing the MarCom Process
Six Primary Areas of Decision Influence:
1. Selecting target markets
2. Establishing objectives
3. Setting budgets
4. Formulating positioning strategies
5. Establishing and implementing message and media strategies
6. Evaluating program effectiveness
Objective 5
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Advertising
3 Ways to Add Value to Offerings:
1. Innovating
2. Improving quality
3. Altering consumer perspectives
• Advertising adds value to brands by influencing consumers’ perceptions.
Objective 6A
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Advertising
Six Major Activities of Advertising Strategy:
1. Objective setting
2. Budgeting
3. Positioning
4. Planning message strategy
5. Developing media strategy
6. Assessing advertising effectiveness
Objective 6A
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Advertising
Good or Effective Advertising:
• Extends from sound marketing strategy• Takes the consumer’s view• Is persuasive• Finds a unique way to break through
competitive clutter• Never promises more than it can deliver• Prevents the creative idea from
overwhelming the strategy
Objective 6A
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Sales Promotion
• Sales Promotions are the use of any incentive by a manufacturer to induce the trade (wholesalers and retailers) and/or consumers to buy a brand and to encourage the sales force to aggressively sell it.
Objective 6B
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Sales Promotion
• Over the last two decades, there has been a shift from Advertising to Sales Promotion.
6 Factors accounting for Shift:1. Balance of power transfer2. Increased brand parity and price sensitivity3. Reduced brand loyalty4. Splintering of the mass market and reduced media
effectiveness5. Short term orientation and corporate reward
structures6. Trade and consumer responsiveness
Objective 6B
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Sales Promotion
Sales Promotion: Roles and Objectives
1. Facilitating the introduction of new products to the trade.
2. Obtaining trial purchases from consumers.3. Stimulating sales force enthusiasm for
new, improved, or mature brands.4. Invigorating sales of a mature brand.5. Increasing on- and off-shelf merchandising
space.
Objective 6B
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Sales Promotion
Sales Promotion: Roles and Objectives
6. Neutralizing competitive advertising and sales promotion.
7. Holding current users by encouraging repeat purchases.
8. Increasing brand usage by loading consumers.
9. Preempting competition by loading consumers.
10. Reinforcing advertising.Objective 6B
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Sales Promotion
Trade Promotions:
• Trade Promotions are directed at wholesalers, retailers, and other marketing intermediaries, and represent the first step in any promotional effort.
Consumer Promotions:
• Consumer Promotions encourage consumers to purchase one brand over another, to purchase a particular brand more often, and to purchase in larger quantities through activities such as sampling, couponing, sweepstakes, and contests.
Objective 6B
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Public Relations
• PR is the MarCom tool that is uniquely suited to fostering goodwill between a company and its various publics.
• It can also increase brand awareness, build favorable attitudes toward a company and its products, and encourage purchase behavior.
Objective 6C
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Public Relations
• Proactive MPR is another MarCom tool in addition to advertising and sales promotion that can give a brand additional exposure, newsworthiness, and credibility.
• Reactive MPR is undertaken as a result of external pressures and challenges brought by competitive actions, changes in consumer attitudes, changes in government policy, or other external influences.
Objective 6C
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Sponsorship Marketing
• Sponsorships range from supporting athletic events to throwing corporate weight behind a worthy cause.
• Event Marketing• Cause Related Marketing
Objective 6D
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Sponsorship Marketing
• Four Factors account for the growth in sponsorships:
1. Enables companies to avoid the clutter inherent in advertising media
2. Helps companies respond to consumers’ changing media habits
3. Helps companies gain the approval of various constituencies
4. Enables marketers to target their communication and promotional efforts to specific regions or groups
Objective 6D
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