Integrated Marketing Communications
and Promotion
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Elements of
promotion
Advertising
strategies
Other methods of
promotion
Elements of the Promotion Mix
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Advertising
Sales Promotion
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Sales
Coupons
Rebates
Premiums
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Personal selling
Public relations
Direct marketing
The Product Life Cycle and
Promotional Objectives
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Introduction
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Awareness
Trial
Growth stage
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Persuasion to buy
product
 Brand preference
 Solid distribution
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Maturity
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Maintenance of
 Sales
 Distribution
channels
 Shelf space
Promotion by Decision Stage
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Pre-Purchase
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Purchase
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Influence decision, preference
Samples to induce trial
Sales promotion
Point-of-purchase (POP) displays
Post-purchase
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Increase repurchase propensity
Channel strategies
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“Push”
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Make product readily
available to buyers
“Hard” sell to
 Distributors
 Consumers
Heavy sales
promotions
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“Pull”
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Create demand for
products
 “When you care to
send the very best”
 “Snapple—made
from the best stuff
on earth”
Promotional Objectives and the
Hierarchy of Effects
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Awareness
Interest
Evaluation
Trial
Adoption
Repurchase
Bases for Advertising Budgets
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Percentage of sales
Percentage of profits
Competitive parity
Affordability
Objective and task
Developing the Advertising Program
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Identifying the target audience
Specifying advertising objectives
Setting the advertising budget
Designing the advertisements
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Informational/persuasive
Fear appeals
Sex appeals
Humor appeal
Some Media Alternatives
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Television
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Conventional
advertisements
Infomercials
Sponsorship
programming
“Placements”
 In programming
 “Superimposed”
Radio
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Magazines
Newspapers
Outdoor
Internet
Point-of-purchase
Other
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Movie theaters
On other products
Executing The Advertising Program
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Pre-testing
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Portfolio test
Jury tests
Need to test a very large
number of tests
Possible redesign
Carrying out advertisement
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Full service agencies
Limited service agencies
In-house
Advertising Intensity and Return -A Typical Relationship
Response (e.g., sales, recall)
The “S”-Shaped Curve
1
0.8
Saturation
Point
0.6
0.4
Too little to do
much good
0.2
0
0
5
10
15
Amount of Advertising Spending
20
25
Measuring Advertising Effect
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Several possible
criteria:
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Increase in sales (but
it may be impossible to
separate effects of
different simultaneous ads)
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Lab studies:
 Recall
 Attitude toward
product
 Preference
One-sided vs. two sided appeals
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One-sided: only
saying what favors
your side
Two-sided: stating
your case but also
admitting points
favoring the other
side
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Why is this effective?
Elaboration and Likely Effectiveness of
Celebrity Endorsements
Product
important or
expensive?
low
elaboration
No
Celebrity
endorsements
more likely to be
effective
Is endorser
congruent with
product
endorsed?
Yes
high
elaboration
No
low
elaboration
Unlikely to be
effective
Yes
More likely
to be
effective
Symbolism
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Green: Health in U.S.; in Latin America,
jungle (associated with danger)
Marlboro man: freedom in U.S.; dusty,
unappealing life in Hong Kong
Perfume against raindrop: Cool,
refreshing feeling to Europeans; symbol
of fertility to some Asians
Cultural Dimensions in Advertising
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Directness vs.
indirectness
Comparative advertising
Humor appeal
Gender roles
Explicitness
Sophistication
Popular vs. traditional
culture
Information content vs.
fluff
Advertising Standardization:
Advantages
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Essentially
parallel to
product/
positioning
standardization
Economies of scale
Consistent image
Appeal to global consumer
segments
Conservation/maximum utilization
of creative talent
Cross-fertilization--moving
knowledge across markets
Disadvantages
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Cultural differences
Advertising and promotional
regulations
Market lifecycle stage
(maturity)
Local commitment to
campaign (“Not-inventedhere)
Again, parallel to product/
positioning standardization
Humor
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Humor appears to be a
universal phenomenon
However, there are great
differences in form
across the World
“A can a week is all we
ask” worked in U.S. but
was seen as silly in
Canada
Values
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Americans tend to emphasize
individuals; in other cultures,
standing out from the group may
not be desirable
Popular vs. traditional culture
Perception of comparative
advertising
Eastern Europeans want more
facts in advertising
Legal Issues in Promotion
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Media allowed for
advertising
Comparative
advertising
Price promotions
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coupons
premiums
Contrasting Advertising Perspectives
(Aithison 2002)
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Western
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“Atomistic”—broken
down to smallest
component parts
“Unique selling
propositions”
“How to”
Positioning
May be “dull and
boring”
“Copy focused”
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Asian
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Holistic
“Everything relates to
everything else”
How things “fit
together” and
“relate”
Visual and oral
Jim Aitchison, How Asia Advertises,
New York: Wiley, 2002.
Promotion Options
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Coupons
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In ads
In store
Electronic
Deals
Premiums
Contests
Sweepstakes
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Samples
Continuity
programs
Point-of-purchase
displays
Rebates
Product
placements
Trade Promotions
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Allowances and discounts
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Premiums
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Reimbursement for costs
Slotting fees
Quantity discounts
Fixtures
Cooperative advertising
Training
Public Relations and Publicity
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Advantages of media
coverage over
advertising:
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cost
credibility
attention
Issues
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“Two-way street”--must
provide something of
interest to media
Making a News Release--Issues
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Properties of a good news
release
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timing--for event and
journalist’s schedule
brevity--if you can’t say it in
two pages, how do you expect
the journalist to?
Interest to readers
content
 quotes
 facts
Personal selling
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Traditional vs.
consultative selling
Commission vs.
salary
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Integrated Marketing Communications and Promotion