Summary Advertising And Promotion - Ch 1-22 PDF

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Chapter 1: An Introduction to Integrated Marketing Communications  This that change the way companies develop their marketing programs: o Rapid growth of the internet o Global markets o Economic uncertainties o Changing lifestyles o Media consumption habits The Role of Marketing  Exchange- a central concept in marketing and the use of the basic marketing activities to create and sutain relationships with customers. o There must be two of more parities with something of value to another  Value- the customer’s perception of all the benefits of a product or service weighed against all the costs of acquiring and consuming it o Benefits can be function (the performance of the product), experimental (what it feels like to use the product) and/or psychological (feelings such as self-esteem) Integrated Marketing Communications  IMC- involves coordinating the various promotional elements and other marketing activities that communicate with a firm’s customers o Ongoing strategic business process rather than just a tactical integration of various commutation activates o Recognized that customers, prospects, suppliers, investors, interests groups and the general public are important parts o Internal audiences such as employees The Promotional Mix: The Tools for IMC  Includes four elements: advertising, sales, promotion, publicity/public relations, and personal selling  Advertising: defined as any paid form of nonpersonal communication about an organization, product, service or idea by an identified sponsor. o The paid aspect of this definition reflects the fact that space or time for an advertising message generally must be bought o PSA advertising space or time is donated by the media o Nonpersonal component means that advertising involves mass media (radio, magazines, newspapers) that can transmit a message to a large groups of individuals at the same time- no time for immediate feedback therefore the advertiser must consider how the audience will interpret and respond to it o Advertisement is best-known and most widely discuses form of promotion o Advertisement is an important part of many marketers IMC programs:  Cost-effective way to reach large numbers of consumers with an advertising message

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8pm-11pm reaches nearly 5 million households a valuable tool for building company or brand equity- informing consumers with information as ell as to influence their perceptions  can be used to create favorable and unique images o business to business marketing’s use advertising to perform important functions such as building awareness of the company and its products, generating leads for the sales force, reassuring customers about the purchase they have made, or helping create a favorable image of the company  Advertising to Consumer markets o National advertising: advertising done by large companies on a nation wide basis or in most regions of the country.  Well-known companies and brands that are seen on prime-time TV or in other major national or regional media  Goal is to inform or remind consumers of the company or brand and its features, benefits, advantages or uses and to create or reinforce its image so that consumers will be predisposed to purchase it o Retail/Local Advertising: advertising done by retailer or local merchants to encourage consumers to shop at a specific store, use a local service or patronize a particular establishment  Motives- price, hours, service, atmosphere, image or merchandise assortment  Retailers are concerned with building store traffic, so their promotions often take the form of direct-action advertising designed to produce immediate store traffic and sales o Primary vs. Selective Demand Advertising:  Primary advertising is designed to stimulate demand for the general product class or entire industry (milk)  Advertiser might use this when its brand dominates a market and will benefit the most from overall market growth.  Selective demand advertising focuses on creating demand for a specific company’s brands.  Is often used as part of a promotional strategy to help a new product gain market acceptance, since the challenge is to sell customers on the product concept  Advertising to Business and Professional Markets o Business-to-Business Advertising: advertising targeted at individuals who buy or influence the purchase of individual goods or services for their companies

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Industrial goods are products that either become physical part of another product, are used in manufacturing other goods or are used to help a company conduct its business  Insurance, travel services, health care o Professional Advertising: advertising targeted to professional such as doctors, lawyers, dentists, engineers or professors to encourage them to use a company’s product in their business operations  Might also be used to encourage professionals to recommend or specific the use of a company’s product by end-users o Trade Advertising: advertising targeted to marketing channel members such as wholesales, distributors and retailers.  Goal is encourage channel embers to stock, promote and resell the manufacturer’s branded products to their customers.  Direct Marketing- organizations communicate directly with target customers to generate a response and/or a transaction o Direct mail, database management, direct selling, telemarketing, direct response ads, o Direct-response advertisement- a product is promoted through an ad that encourages the consumer to purchase directly from a manufacturer  Digital/Internet Marketing o Interactive media- allow for a two-way flow of communication whereby users can participate in and modify the form and content of the information they receive in real time. o Social Media- refers to online means of communication and interactions among people  Sales Promotion o Consumer-oriented sales promotion- is targeted to the ultimate user of a product or service and incudes couponing, sampling, premium, rebates, contests, sweepstates, and various point- of- purchase materials...