ADV 435

Chapter 8IMC

INTEGRATED MARKETING COMMUNICATIONS

Definition: The process of• Planning• Creating• Integrating• ImplementingCommunications elements i.e. • Advertising• Sales Promotion• PR/EventsDelivered to brand’s customers/prospects

INTEGRATED MARKETING COMMUNICATIONS

Goal = Consistent message and feel

• Consistent does NOT mean “look alike”

• Consistent DOES mean“Reflecting desired experience with brand”

INTEGRATED MARKETING COMMUNICATIONS

Goal = Consistent message and feelExamples:• Geico: Gecko greets you online• Target: Bulls eye logo web, credit card• Aflac: Duck appears somewhere• Pepsi: Logos, bubbles, fun

INTEGRATED MARKETING COMMUNICATIONS

Emphasis (budget) is function of:

• Growth Potential• Sales Potential

INTEGRATED MARKETING COMMUNICATIONS

Communications Targets:

• Brand Loyals• Brand Switchers• Competitors Brand Loyals

INTEGRATED MARKETING COMMUNICATIONS

Brand Loyals:• Best Customers• Buy Largest Quantities or most often• Do NOT switch if unavailable• Goal = RETAIN

INTEGRATED MARKETING COMMUNICATIONS

Brand Switchers:• Your brand AND others• Swayed by:

• Promos• Incentives• Just a change

• Goal = Build Volume

INTEGRATED MARKETING COMMUNICATIONS

Competitors Brand Loyals:• Very Challenging• Goal = Initiate trial & some

conversion:• First to “Switchers”• Then to your “Brand Loyals”

SALES PROMOTIONDEFINITION = Incentives of reduced price or

added value• Tends to “buy” share of market• Short term impact• May increase consumer expectations for

more• Why pay full price…just wait for coupons• Should reinforce ad message• ergo: “Think like a retailer & act like a brand”

SALES PROMOTION“Think like a retailer & act like a brand”

• delicate balance• building sales vs. image• forces annual repeat same period

SALES PROMOTION

Types:• Consumer “Pull”• Trade “Push”

SALES PROMOTIONConsumer Promotions:• Samples - Sweepstakes• Coupons - Refunds• Rebates - Bonus Packs• Premiums - Event Sponsorships• Contests - Price-offs (days,

weeks, months)• Games

SALES PROMOTIONTrade Promotions:• Slotting allowances – $$ space/facings• Dealer Contests ($, gifts, trips)• Co-op Ad Support• Trade Show Specials• Spiffs (cash to sales force)• Display Allowances• POP Material• Price Reductions

SALES PROMOTIONObjectives:• Trial• Retention• Increase Sales• Reinforce Advertising• Build Trade Support• Generate Excitement

SALES PROMOTION

Trial by New Customers

• Samples• Coupons• Rebates

SALES PROMOTION

Retention of Loyals• Ideas (To Buy More)• Recipes• Calendars• Special Offers

SALES PROMOTION

Increase Overall Sales• Multi Unit Purchases• Special Sizes (larger, travel,

pocket)• Premiums

SALES PROMOTION

Reinforce Advertising– Contests– Games– Sweepstakes

SALES PROMOTION

Build Trade Support– Increase Distribution– Increase Exposure– Motivate Retailers

SALES PROMOTION

Generate Excitement– Starts with Sales Force– Incentives on:

• Models• Sizes• Flavors/Scents

SALES PROMOTION TACTICSSAMPLING• Expensive due to size/package• Mail or Door Hanger• Magazine/Newspaper Insert• Demonstration• Attached to other product• Welcome Kits

SALES PROMOTION TACTICSCOUPONING• Customer assured of discount• Target geographically• Retailer can double/triple• Low redemption rates• Retail stock level varies• DM, FSI, ROP, Back of Receipts, hand

outs, Web, Text

DESIGNING COUPONS• Must look like coupon

• Use cut marks• FSI’s will perforate

• Face Value & Expiration Date must be clear• UPC and Coupon code to track• Package & Logo on coupon• Do not hide or bury coupon

PREMIUMS• Tangible rewards for purchasing

• Happy Meals• Cracker Jack• Cereals

• In/On Pack = Immediate reward• Mail-ins – Must increase value of reward to make up for “delay”

PREMIUMS• Self Liquidators = customer buys premium at reduced cost

• Fragrance sets with bags• BBQ sets

• Continuity Plans • Frequent Flyer• Hotel Guest• Buy nine, get tenth free

REBATES• Offset portion of Sale Price

• Mail in for check• Mail in for debit card (w/co-marketer)• Provides Data Base• Time period between purchase &

receipt affects redemption• Longer lapse, less redemption

• Auto dealers apply to down payment

CONTESTS/SWEEPSTAKES/GAMES

• KISS• Avoid Purchase (lottery)• Contests involve skill or judging

• Less appealing• Exceptions = recipes

BONUS PACKS• Two for One• Two for One plus slight premium• Good way to counter competitive

sales promotions

EVENT SPONSORSHIP• Excellent exposure

• Positive Correlation to brand• Sports• Local Festivals• Civic Organizations• Entertainers• Schools

EVENT SPONSORSHIP

CAVEATS• Religious Groups

• Help one, help all• Local Causes

• ditto

TRADE PROMOTIONS

• Need product in the pipeline• New products die w/o distribution• Need retail space and support

TRADE PROMOTIONS

Types:

• Purchase Incentives• Performance Allowances

TRADE PROMOTIONSPurchase Incentives:• Slotting Allowance – payments for shelf space (retail, wholesale)

• Reduces ad budget• May reduce # facings

• Reduce/Eliminate certain• Flavors• Scents• Sizes

TRADE PROMOTIONSPurchase Incentives:• Off Invoice Purchase Allowance – reduces Price to the Trade

• Restricted by Time & # Orders• Can reduce invoice price 5%-25%• Creates Higher Inventory Level

TRADE PROMOTIONSPurchase Incentives:• Dating or Extension of Terms

• Two/10, net/30 or net 60• Buy early or buy more or both

TRADE PROMOTIONSPurchase Incentives:• Free Goods

• Buy 10 cases get one free• Listing Advertising

• Buy quantity, get listing in national print ad

TRADE PROMOTIONSPerformance Allowances:– Display/Merchandising

Allowances• Sampling/Demonstrations• Celebrities• End of Aisle Position

TRADE PROMOTIONSPerformance Allowances:– POP

TRADE PROMOTIONS

TRADE PROMOTIONSPerformance Allowances:–Advertising Allowances• Weekly Circular

– Product Position– Package– Logo

TRADE PROMOTIONSPerformance Allowances:– Co-op Advertising • Defray cost of media

–TV, Radio, Print

• Must mention/display brand

TRADE PROMOTIONSPerformance Allowances:– POP = Point of Purchase• Creative supplied by manuf.

– Bins, posters, clings– Shelf talkers/danglers

• Often go unused

TRADE PROMOTIONSPerformance Allowances:– Trade Shows/Sales Mtgs• Hospitality Suites• Show deals• Meal/Break Sponsorships• Invite Trade to Corp Mtg

PUBLIC RELATIONS

ROLES:– Promote understanding of policies– Combat negative images & publicity

• Correct misconceptions• Encourage positive discussion• Advise & train executives

– Do something good & talk about it

PUBLIC RELATIONS

TYPES:– News Stories

– New Products– Situation Updates– Interviews– Access behind the scenes

PUBLIC RELATIONS

TYPES:– Press Kits

• Newsletters• Pamphlets• Brochures• Annual reports• Info Hot Lines

PUBLIC RELATIONS

TYPES:– Staged Events• Trade Shows• Celebrities• Sponsorships

PRODUCT PUBLICITYInforming how to select, buy & use

the product• Technology• High End• New/Different• Risky• Complicated

PRODUCT PUBLICITY

Persuading to Purchase• Well placed 7 timed stories

• Print• Internet• Broadcast/Cable/Radio

• News• Talk

PRODUCT PUBLICITY

Dispelling Negatives• Opinions• Information• Immediate response & availability is key

PRODUCT PUBLICITY

Adds Value to Events and Sponsorships• Provides Heads up To Media• Can tie Celebs/Politicians to brand in positive way• Creates sound bites

DIRECT MARKETING

CAN BE:• Broad (FSI, ROP, Internet)• Narrow (Clipper, Valpak, Text)KEY IS EASE OF RESPONSE• Toll Free• Internet• Reply card or envelop

DIRECT MARKETING

PROVIDES ACCOUNTABILITY• Immediate Evaluation

• Offer• Media• Target• Timing

DIRECT MARKETING

DATABASES• Purchased …up to date?• Home grown• Co-Marketing partners

DIRECT MARKETINGDATABASES• Can create profiles

• Demographics• Purchase Patterns

• Frequency• Timing (recent?)• Amount in units & $$$• Location – Where? How? Online?• History/Patterns/Link to Occasion

DIRECT MARKETING OFFERSCreating an Offer Top Ten:10. Guarantees

- Reduces Perceived Risk- Builds Confidence

9. Quantity Limits- Creates sense of urgency- Minimizes sale to resellers

- retailers- Internet (e-Bay, Amazon)

DIRECT MARKETING OFFERSCreating an Offer Top Ten:8. Time Limits

- Also creates sense of urgency- Entertainment Books

7. Incentives- Should add value not detract- Free Low cost gifts work well

DIRECT MARKETING OFFERSCreating an Offer Top Ten:6. Credit Options

- Sales Increase with Credit Cards- Can hold merch. until charge clears

5. Future Obligation- Continuity – Books, DVD’s

- First one = low price- Then auto send at higher price

DIRECT MARKETING OFFERSCreating an Offer Top Ten:4. Optional Features

- Colors- Sizes- Personalization (monograms)

3. Units- Smaller units (1 or 2) get more response

DIRECT MARKETING OFFERSCreating an Offer Top Ten:2. Shipping & Handling

- Mail orders usually include- TV offers usually add

And the #1 factor in creating a direct marketing offer is…………

DIRECT MARKETING OFFERSCreating an Offer Top Ten:

PRICE• Be Competitive & Attractive• Can test offers to different targets

DIRECT MARKETING

Copy GuidelinesHeadlines:•Involve Reader

• Focus on Human Nature & Self Interest

•Provide Information• Never assume knowledge

DIRECT MARKETING

Copy GuidelinesHeadlines:• Make appeal & offer obvious

•No need to be subtle or coy

DIRECT MARKETING

Copy GuidelinesVisuals:• Must reinforce message• Avoid confusion – less is more• Be genuine first, clever second

DIRECT MARKETING

Copy GuidelinesConsumer Motivation:• Show & Tell how good it is• Add inventive (time and/or quantity limit) to move them

DIRECT MARKETING

Copy GuidelinesOFFER:• Customers skeptical of:

• Fine Print• Asterisks• Disclaimers• Strings attached

DIRECT MARKETING

Copy GuidelinesCUSTOMER:•MAKE THEM FEEL:

• SPECIAL• GLAD• UNIQUE