Integrated Marketing Communications Chapter 1 Integrated Marketing Communications

To "Be all you can be" in the Army now means being "An Army of one.“ United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“ 10-Jan-2001 www.goarmy.com

Last Class Introduction!!!

Objectives To review the various elements of the promotional mix To introduce the concept of integrated marketing communications To summarize the IMC planning process and examine the steps in a marketing communications program To examine how various elements must be coordinated to communicate effectively with the IMC perspective

Marketing Defined The process of planning and executing and __________ of _____, _____, and _______ to create ________ that satisfy individual and organizational objectives. American Marketing Association

Marketing Defined The process of planning and executing the conception, pricing, promotion, and distribution of _____, _____, and _______ to create ________ that satisfy individual and organizational objectives. American Marketing Association

Marketing Defined The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create ________ that satisfy individual and organizational objectives. American Marketing Association

Marketing Defined The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. American Marketing Association

The Marketing & Promotional Mixes Product or service Pricing policy Distribution method (Place) Marketing communications mix (Promotion) Advertising Direct marketing Sales promotion Publicity/public relations Personal selling

Marketing plan : is a written document that describes the overall marketing strategy and programs developed for an organization, product line, or brand.

Advertising Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.

Advertising Marketers use advertising to: create brand image strike a responsive chord with consumers when differentiation using other elements of the marketing mix is difficult create symbolic appeals for a company or brand take advantage of the fact that advertising is a very cost-effective method of reaching a large audience

Advantages of Advertising: cost-effective way for communicating, with large audiences ability to create images and symbolic appeals and for differentiating similar products and services ability to strike audience through creative advertising ability to control the message (what, when and how something is said and where it is delivered.

Disadvantages of Advertising: the cost of producing and placing ads can be very high, particularly television commercials, it can be difficult to determine the effectiveness of advertising there are credibility and image problems associated with advertising

Spending in $Billions [United States]

Show Net Price*** Change 1 Friends NBC $473,500 3.9% 2 Will & Grace $414,500 10.1% 3 ER $404,814 -7.7% 4 Survivor CBS $390,367 -6.8% 5 Scrubs $360,950 22.5% 6 Coupling $316,400 * 7 CSI $310,324 10.8% 8 The Simpsons Fox $296,440 19.4% 9 24 $292,200 58.3% 10 Mon. Football ABC $272,867 -8.4% The "Change" field represents the difference from last season. * 'Coupling' is a new show. There is no previous season comparison number. ***Price is the cost of placing a 30 second ad in the particular show

Rakamlarla reklam... Türkiye'de reklam sektörünün GSYH'ye oranı binde 5. Bu oran bazı gelişmiş ülkelerde yüzde 2 Türkiye'de 24'ü ulusal, 76'sı kablo, diğerleri bölgesel ve yerel olmak üzere 340 televizyon kanalı var 34 ulusal gazate yayımlanırken, düzenli reklam alan 250 dergi bulunuyor 2006'da 14 bin firma 17 bin marka için reklam verdi Tam hizmet veren reklam ajansı sayısı 100'ü buluyor

In 2005 in Turkey One of the indicators of improvement in advertising sector is number of new ads of firms and brands other one is the number of ads in total. Last year 717 brands advertised for the first time. In total 13,810,636 second of ads were run TV shows were taking the lead. National TV shows in total had 10,335,659 seconds of ads. Foreign TV shows in total had 5,726,725 seconds of ads. Number 1 was (with syndications) "Çocuklar Duymasın“ It was aired 382 times and had 515,073 seconds of ads. Number 2 was "En Son Babalar Duyar". It was aired 366 times and had 469,754 seconds of ads.

By 2007 February What are the most watched TV shows? Binbir Gece (Kanal D) Avrupa Yakası (atv) Acı Hayat (Show TV) Sıla (atv) Arka Sokaklar (Kanal D) Yaprak Dökümü (Kanal D) Sağır Oda (Kanal D) Cennet Mahallesi (Show TV) Candan Öte (Star) Karagümrük Yanıyor (Star) Ihlamurlar Altında (Kanal D)

15-21 Ekim haftasında en çok reklam alan yerli diziler (Spot Adedi üzerinden) Program Adı Ortalama Spot Adedi Bölüm Adedi 1 Kurtlar Vadisi Terör (Show TV) 123 2 Binbir Gece (Kanal D) 118 3 Kuzey Rüzgarı (Show TV) 101 4 Küçük Semazen (Kanal 7) 96 5 Menekşe İle Halil (Kanal D) 93 6 Oyun Bitti (Kanal D) 7 En Güzel Rüya (Kanal 7) 92 8 Bıçak Sırtı (Kanal D) 91 9 Zoraki Koca (Kanal D) 10 Arka Sokaklar (Kanal D) 90 11 Pusat (Show TV) 89 12 İki Aile (Star) 88 13 Elveda Derken (Kanal D) 87 14 Genco (Kanal D) 15 Dudaktan Kalbe (Show TV) Kaynak: MTM Medya Takip Merkezi (Dizilerin aynı hafta içinde yayımlanan tekrar ve özel bölümlerinin ortalaması alınmıştır.)

31 Mart-6 Nisan Haftasında En Çok Reklam Alan Yerli Diziler Dizi Adı Yayın Tarihi Spot Süresi (sn.) 1 Doktorlar (Show TV) 31.03.2008 2.286 2 Sıla (ATV) 04.04.2008 2.256 3 Kurtlar Vadisi Pusu (Show TV) 03.04.2008 2.242 4 Selena (ATV) 05.04.2008 2.228 5 Hatırla Sevgili (ATV) 2.144 6 Yaprak Dökümü (Kanal D) 02.04.2008 2.133 7 Menekşe İle Halil (Kanal D) 2.127 8 Avrupa Yakası (ATV) 2.117 9 Kavak Yelleri (Kanal D) 2.111 10 Annem (Kanal D) 2.108 Kaynak: MTM Medya Takip Merkezi (Dizilerin aynı hafta içinde yayımlanan yeni bölümleri ölçümlenmiştir.)

http://www.medyatakip.com/tvreklamverileri.php

Show TV reklam fiyatlari

27 AUGUST-02 SEPTEMBER 2007 Most Advertised 10 Brands No Brand # of ads Brand Duration(sn) 1 Ülker İçim 884 Kosla 39.342 2 Turkcell Süper Ligi 851 Turkcell 30.092 3 Clear 837 Ülker İçim 29.042 4 Beko 825 Turkcell Süper Ligi 25.310 5 Denizbank 785 THY 25.200 6 Bellona 769 İş Bankası 24.080 7 Domestos 754 Clear 23.454 8 İstikbal 736 Ülker Colaturka 19.727 9 Elidor 729 Dove 19.556 10 Turkcell 674 Beko 18.353

Most Advertised Industries No Industry # of Ads Industry Duration(sn) 1 Gıda 10.818 Gıda 243.562 2 Finans 4.643 Finans 122.216 3 Kozmetik 4.505 Ev Temizlik 115.929 4 Ev Temizlik 4.270 Kozmetik 106.237 5 Kişisel Bakım 3.104 Kişisel Bakım 77.438 6 Tekstil / Deri 2.965 İletişim Tekno 75.898 7 İnşaat/Emlak 2.873 Yayıncılık 69.893 8 Yayıncılık 2.245 İnşaat/Emlak 67.511 9 İletişim Tekno 2.128 Otomotiv 51.637 10 Dayanıklı TM 2.122 Tekstil / Deri 44.049

What about Newspapers What are the newspapers with the most ad placements? Hürriyet Zaman Sabah

Circulation??? 03-09 September 2007 Weekly Circulation Numbers Posta 648.997 Hürriyet 593.355 Zaman 523.202 Sabah 501.461 P.Fotomaç 262.655 Takvim 248.546 Fanatik 248.494 Vatan 212.654 Milliyet 210.323 Akşam 196.664 Güneş 160.486 Türkiye 149.423 Yeni Şafak 111.910 Bugün 101.124 Star 91.817 Sözcü 83.255 Cumhuriyet 77.424 E. Fotospor 67.859 A.Vakit 65.518 A.Şok 55.266 Yeni Çağ 53.574 Milli Gazete 51.283 Radikal 36.477 H.O.Tercüman 33.599

Classifications of Advertising National advertising Retail/local advertising Advertising to increase demand Primary demand for the product category Selective demand for a specific brand Business & professional advertising Business-to-business advertising Professional advertising Trade advertising

Sales Promotion Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales.

Advantages of Sales Promotion provides extra incentive to consumer or middlemen way of appealing to price sensitive consumer effects can often be more directly measured than those of advertising can be used as a way of building or reinforcing brand equity

IMC and Branding Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind. 2003 Brand Value (Billions of Dollars) 1. Coca-Cola $70.5 2. Microsoft $65.1 3. IBM $51.8 4. GE $42.3 5. Intel $31.1 6. Nokia $29.4 7. Disney $28.0 8. McDonald’s $24.7 9. Marlboro $22.2 10. Mercedes $21.4 Relation to text This slide relates to material found on pp14-15 and IMC Perspective 1-2 of the text. Summary Overview With more and more products and services available to consumers, developing and maintaining brand identity is becoming increasingly more important. Well known brands have a major competitive advantage in today’s marketplace. A well-defined and coordinated IMC plan contributes to overall brand identity and equity. Use of this slide This slide can be used to define brand identity and discuss the importance of building and sustaining strong brand identity. The list of the 10 most valuable brands, as measured by the brand consultancy company Interbrand, should be familiar to your students. You might discuss how these popular brands may have a competitive edge with consumers during the purchase decision process. IMC plays a major role in the process of developing and sustaining brand identity and equity.

Intel’s Advertising Helps Build Brand Equity Relation to text This slide relates to the material in IMC Perspective 1-2 on p. 15 regarding the power of brands. Summary Overview This slide contains a commercial from one of the phases of the “Intel Inside” advertising campaign. As shown in the table in IMC Perspective 1-2, Intel is one of the world’s 10 most valuable brands. Intel spends over $1 billion a year globally on advertising which makes it the world’s leading high tech advertiser. The commercial shown here features Intel’s “Bunny People” who were introduced in early 1997 as part of the advertising campaign for the Pentium II microprocessor with MMX technology. The Bunny People are a takeoff of the workers who wear so-called bunny suits to keep chip labs sterile. The spot shows the technicians adding something new to Intel’s Pentium processor – fun in the form of MMX technology. It then shows the Bunny People dancing to the’70s disco hit – Play That Funky Music. Use of this slide The Intel commercial can be used as part of a discussion of branding and the role advertising plays for companies in developing and maintaining a strong brand image. Intel has used a variety of advertising campaigns over the past 12 years to strengthen its brand image and demonstrate the power of its various generations of Pentium processors.

Disadvantages of Sales Promotion many companies are becoming too reliant on sales promotion and focusing too much attention on short-run marketing planning and performance short-term sales gains are often achieved at the expense of long-term brand equity     

Types of Sales Promotion Customer-oriented Trade-oriented

Public Relations The management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance. Tools used by public relations Publicity Special publications Community activity participation Fund-raising Special event sponsorship Public affairs activities

Publicity Non-personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. Publicity is NOT advertising. Advertising. Paid, sponsor-identified, non personal (media) communications. Publicity. Non-paid, unsponsored, non personal (media) communications.

Publicity Vehicles News releases: Single-page news stories sent to media Feature articles: Larger manuscripts Captioned photos Press conferences Special events: Sponsorship of events, teams, or programs of public value.

Advantages of Publicity credibility of publicity is usually higher than other low cost way of communicating often has news value and generates word‑of‑mouth discussion among consumers

Disadvantages of Publicity lack of control over what is said, when, where and how it is said can be negative as well as positive

Advertising Versus Publicity _____, ___________, nonpersonal (media) communications. Publicity ___________, __________, nonpersonal (media) communications.

Advertising Versus Publicity Paid , sponsor-identified, nonpersonal (media) communications. Publicity Unpaid, unsponsored, nonpersonal (media) communications.

Advertising Versus Publicity FACTOR ADVERTISING PUBLICITY Control Great Little Credibility Lower Higher Reach Achievable Undetermined Frequency Schedulable Low Cost Specific Unspecified Flexibility High Low Timing Specifiable Tentative

Direct Marketing Direct marketing methods. Direct mail. Cataloging. Organizations communicate directly with target customers to generate a response and/or transaction. Direct marketing methods. Direct mail. Cataloging. Telemarketing. Direct response ads. Internet sales.

Personal Selling A form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase to company’s product or service or act on an idea. flexibility exists to tailor the message to the customers specific need or situation.

Advantages of Direct Marketing changes in society- convenience Ability to be selective and target its marketing communications to specific customer segments messages can be customized effectiveness of direct-marketing efforts are easier to assess than other forms of promotion

Disadvantages of Direct Marketing consumers and businesses bombarded with unsolicited mail and phone calls which makes them less receptive to direct-marketing direct marketing has image problems problems with clutter

Relationship Marketing Marketing Focuses on EXCHANGE nature of exchange what is needed for this process to occur including: two or more parties with something of value to one another; and a way for the parties to communicate with one another.

________________ is the process of creating, maintaining and enhancing long-term relationships with individual customers as well as other stakeholders for mutual benefit.

Relationship Marketing is the process of creating, maintaining and enhancing long-term relationships with individual customers as well as other stakeholders for mutual benefit.

Ford Motor Company Ford’s Vision: To become the world's leading consumer company for automotive products and services

Integrated Marketing Communications A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines -- for example, general advertising, direct response, sales promotion, and public relations -- and combines these disciplines TO PROVIDE CLARITY, CONSISTENCY, and maximum COMMUNICATIONS IMPACT.

Integrated Marketing Communications Coordinating the various promotional elements and other marketing activities that communicate with the firm’s customers.

Reasons for Growth of IMC Planning efficiency and effectiveness. Consumer adoption of technology and media. Innovative marketing practices. Customer’s point of view Relationship Marketing Planning efficiency and effectiveness. By coordinating marketing communication efforts companies avoid duplication, take advantage of synergy, and develop more efficient and effective programs. Consumer adoption of technology and media. Consumers lifestyles and purchasing behavior are changing as they adopt new technologies. Traditional media are facing declining audiences and less responsive consumers. Innovative marketing practices. A shift in marketplace power from manufacturers to retailers. A shifting of marketing dollars from media advertising to other forms of promotion. Customer’s point of view. All elements of the promotional campaign have to be carefully linked in some manner so that the message is clear and does not misrepresent the brand. A movement away from relying on advertising- focused approaches to solve communication problems.

Planning for IMC: Promotional Management Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications. Considerations for developing the promotional mix include: Type of product. Buyer’s decision process Stage of product life cycle Channels of distribution

Situation Analysis Internal analysis. Internal factors. Assesses relevant areas involving the product/service offering and the firm itself. Internal factors. Assessment of the firm’s promotional organization and capabilities. Review of the firm’s previous promotional programs. Assessment of firm or brand image and implications for promotion. Assessment of relative strengths and weaknesses of product/service.

Situation Analysis External factors. External analysis. Focuses on factors such as characteristics of a firms customers, market segments, environment and competitors. External factors. Customer analysis. Competitive analysis. Environmental analysis.

Situation Analysis Internal Factors External Factors Assessment of the firm’s promotional organization and capabilities Review of the firm’s previous promotional programs Assessment of firm or brand image and implications for promotion Assessment of relative strengths and weaknesses of product/service External Factors Customer analysis Competitive analysis Environmental analysis

SUM UP Various elements of the promotional mix IMC planning process Steps in a marketing communications program Coordination to communicate effectively with the IMC perspective

Next Class Understanding how firms organize advertising and IMC Examining methods for selecting, compensating and evaluating Ad Agencies Explaining the role of specialized marketing communications organizations To do!!! Read Chapter 2