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Integrated marketing communications (IMC)

An approach designed to deliver a consistent message to a target market using different types of media.

C H A P T E R 1 1 Integrated Marketing Communications and Traditional Media Marketing Communication helps businesses grow and prosper, creates relationships, strengthens the effectiveness of

organizations, and allows people to learn about one another. Technology such as the Internet, and mobile phones,

and social media affects the way we communicate and is changing the media landscape and the type of

messaging strategy organizations use.

Do you feel lost without your cell phone? Are you more likely to respond to text messages than phone calls?

Do you use the print publications (magazines, newspapers, references) at the library or do you find all your

references online? Do your parents and grandparents prefer different communication methods than you? Think

about how you get information and then think about how organizations can communicate with you and other

target markets about their products, services, or causes. As we find new sources of information, the media and

message strategies used by businesses must also change. However, organizations still want consumers to get

consistent messages regardless of how they receive the information.

1. INTEGRATED MARKETING COMMUNICATIONS (IMC)

L E A R N I N G O B J E C T I V E S

1. Understand what integrated marketing communications (IMC) are. 2. Understand why organizations may change their promotional strategies to reach different

audiences.

Once companies have developed products and services, they must communicate the value and benefits of the offerings to current and potential customers in both business-to-business (B2B) and business-to- consumer (B2C) markets. Integrated marketing communications (IMC) is an approach designed to deliver a consistent message to a target market using different types of media such as TV, radio, magazines, the Internet, mobile phones, professional selling, and social media. In other words, the different communications should all reinforce one another.

Delivering consistent information about a brand or an organization helps establish it in the minds of consumers and potential customers across target markets. Although the messages are very similar, Campbell’s uses two variations of commercials designed to target different consumers. Watch the fol- lowing two YouTube videos. You’ll notice that the message Campbell’s gets across is consistent. But can you figure out who the two target audiences consist of?

Video Clip

Campbell’s Soup’s “Mm, mm good” slogan reinforces the idea the company’s soups are nutritious and fun to eat.

Video Clip

This commerical also includes the “Mm, mm good” slogan but is designed to appeal to people of all ages.

Changes in communication technology and instant access to information through tools such as the In- ternet and social media explain one of the reasons why integrated marketing communications have be- come so important: consumers are also changing. With access to so many sources of information, con- sumers today are collecting more product information on their own. Consequently, marketers must or- ganize and assemble available information to build a consistent brand message and make it relevant. Making a message relevant is important because consumers are constantly bombarded by advertising, so they ignore much of it. The goal of IMC is to coordinate the messages to build the brand and devel- op strong customer relationships while also helping customers satisfy their needs.

United Parcel Service (UPS) has long had a reputation as a basic package delivery service. However, the company wants to be known for more than just that. Recently UPS launched a marketing campaign highlighting its ability to provide all kinds of complicated logistical solutions designed to solve companies’ problems. For example, the campaign highlights UPS’s ability to ship medical products that must be delivered fast and kept at certain temperatures, and its ability to help online sellers help their customers easily return products. The slogan for the integrated marketing campaign is, “United Problem Solvers,” and it includes a website (https://solvers.ups.com), television and print commercials, emails and direct mail, and ads on social media sites such as Facebook, Twitter, and YouTube.[1]

View the video online at: http://www.youtube.com/embed/W5ZM1cqpdT0?rel=0

View the video online at: http://www.youtube.com/embed/IN3c4rZJNd4?rel=0

236 PRINCIPLES OF MARKETING VERSION 3.0

https://solvers.ups.com/

F I G U R E 1 1 . 1

Many people feel lost without their cell phones. They are a major source of information for consumers and a medium for advertisers.

Source: Thinkstock 471419234.

mobile marketing

Marketing media that is available in different places such as cell phones or on forms of transportation.

Video Clip

UPS created this ad along with many other types of promotional materials as part of its “United Problem Solvers” campaign.

1.1 Changing Media More consumers and business professionals are seeking information and connect with other people and businesses using their computers, phones and tablets. The work and social environments are chan- ging, with more people having virtual offices and texting on their cell phones or communicating through social media sites such as Facebook, LinkedIn, Snapchat, Instagram, and Twitter. As the media landscape changes, the money that organizations spend on different types of advertising is changing as well. In 2015, US spending on digital ads—search ads, social media ads, and video ads—was $66 billion and on the verge of overtaking spending on televisions ads.[2]

Most college students are part of the millennial generation (people like you, per- haps) driving the change toward new communication technologies. You might opt to get promotions via mobile marketing—say, from stores on your cell phone as you walk by them or via a mobile gaming device that allows you to connect to the Web.

View the video online at: http://www.youtube.com/embed/PbVy5kRYbgs?rel=0

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 237

out-of-home advertising,

Billboards and movable promotions that are displayed in a broad range of public spaces including tray tables on airplanes, the inside of subways, trains, buses, and even in bathroom stalls.

Traditional media (such as magazines, newspapers, and television) as well as out-of-home advertising, such as billboards and movable promotions, compete with media such as the Internet, texting, mobile phones, and information people post about products on blogs and YouTube. You might have noticed that the tray tables on airplanes sometimes have ads on them. This is an example of out-of-home advertising. You have probably also seen ads on the inside of subway cars, in trains and buses, and even in bathroom stalls. These, too, are examples of out-of-home advertising.

F I G U R E 1 1 . 2

The inside walls of many subways provide an opportunity for advertisers to reach commuters with their messages.

Source: Flickr.

K E Y T A K E A W A Y S

Integrated marketing communications (IMC) is an approach designed to deliver one consistent message to a target market using different types of media. As the media landscape changes, marketers are changing the type of promotions they use in order to reach their target markets. For example, less money is being budgeted for traditional media such as TV, print, and radio ads, and more money is budgeted for online, social media, and mobile ads.

R E V I E W Q U E S T I O N S

1. Explain the concept of integrated marketing communications.

2. How is the media used by organizations changing? What age group is driving the change?

3. What factors are causing the media landscape to change?

4. What are some different types of digital media? Which types are most popular with college students?

238 PRINCIPLES OF MARKETING VERSION 3.0

promotion or communication mix

Communication tools that may include advertising, sales promotions, public relations and publicity, professional selling, and direct marketing.

Advertising

A message that is paid for and sent to large groups of the population at one time with an identified organization or brand (product or service) being promoted.

consumer sales promotions

Promotional activities (coupons, contests, rebates, mail-in offers) companies do in addition to advertising, public relations, and professional selling in order to help sell a product.

trade promotions

Business-to-business marketing sales promotions such as trade shows, sponsorships, and event marketing.

Direct marketing

Delivering personalized promotional materials directly to individual consumers. Materials may be delivered via mail, catalogs, Internet, e-mail, telephone, or in person.

Digital marketing

An umbrella term for marketing products interactively using newer media and usually, but not always, the Internet.

2. THE PROMOTION (COMMUNICATION) MIX

L E A R N I N G O B J E C T I V E S

1. Understand the different components of the promotion (communication) mix and why organ- izations have to consider all those components when designing an IMC program.

2. Outline the differences between the types of communication that target many people simul- taneously versus the types of communication that target individuals.

Although the money organizations spend promoting their offerings is likely to get distributed among different media channels, a company still wants to send its customers and potential consumers a con- sistent message. The different types of marketing communications an organization uses comprise its promotion or communication mix, which consists of advertising, sales promotions, direct market- ing, public relations and publicity, and sponsorships (of events and experiences), which are discussed in this chapter. The promotion mix also consists of online, social media, and mobile marketing, which is discussed in Chapter 12. Professional selling is part of the mix as well. It is discussed briefly here and in more detail in Chapter 13.

Advertising involves paying to disseminate a message that identifies a brand (product or service) or an organization being promoted to many people at one time. The typical media that organizations utilize for advertising of course include television, magazines, newspapers, direct mail, and radio. Busi- nesses also advertise on the Internet and via mobile devices and social media, which are discussed in Chapter 12.

Consumer sales promotions consist of short-term incentives such as coupons, contests, games, rebates, and mail-in offers that supplement the advertising and sales efforts. Sales promotions include promotions that are not part of another component of the communication mix and are often de- veloped to get customers and potential customers to take action quickly, make larger purchases, and/or make repeat purchases.

In business-to-business marketing, sales promotions are typically called trade promotions be- cause they are aimed at channel members who conduct business or trade with consumers. Trade pro- motions include trade shows and special incentives given to retailers to market particular products and services, such as extra money, in-store displays, and prizes.

Direct marketing involves the delivery of personalized and often interactive promotional materi- als to individual consumers via channels such as mail, catalogs, Internet, email, telephone, and direct- response advertising. Direct-response advertising is advertising that urges consumers to “act now” by providing them with a direct way to contact the advertiser, such as by calling a toll-free ordering num- ber, mailing in a business reply card, or clicking on an online ad. By targeting consumers individually, organizations hope to get them to take action.

Digital marketing is an umbrella term for marketing products interactively using newer media and usually, but not always, the Internet. Digital marketing includes search engine, e-commerce, mo- bile, and social media marketing.

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 239

professional selling

An interactive, personal, paid promotional approach between a buyer and a seller.

F I G U R E 1 1 . 3

Pampered Chef and Tastefully Simple have built their businesses primarily on the professional selling skills of their consultants. Professional selling is used more in business- to-business markets than in business-to- consumer markets.

Source: © Jupiterimages Corporation.

public relations (PR)

The process of creating a positive image for a company, an offering, or a person via publicity.

Sponsorships

The financial or other support for events, venues, or experiences that provide the opportunity to target specific groups and enhance a company’s image.

Professional selling is an interactive, paid approach to marketing that involves a buyer and a seller. The interaction between the two parties can occur in person, by telephone, or via another tech- nology. Whatever medium is used, developing a relationship with the buyer is usually something the seller desires.

When you interview for internships or full-time positions and try to convince potential employers to hire you, you are engaging in professional selling. The interview is very similar to a buyer-seller situ- ation. Both the buyer and seller have objectives they hope to achieve. Business-to-business marketers generally utilize professional selling more often than most business-to-consumer marketers. If you have ever attended a Pampered Chef party or purchased something from an Amway or Mary Kay rep- resentative, you’ve been exposed to professional selling.

Public relations (PR) involves communication designed to help improve and promote an organization’s image and products. PR is often perceived as more neutral and objective than other forms of promotion because much of the information is tailored to sound as if it has been created by an organization independent of the seller. Public relations materials include press releases, publicity, and news conferences. While other techniques such as product placement and sponsorships, especially of events and experiences, tend to generate a lot of PR, the growth of expenditures and importance of sponsorships are so critical for so many companies that it is often considered a separate component in the communication mix. Many companies have internal PR departments or hire PR firms to find and create public relations opportunities for them. As such, PR is part of a company’s promotion budget and their integrated marketing communications.

Sponsorships typically refer to financial support for events, venues, or experi- ences and provide the opportunity to target specific groups. Sponsorships enhance a company’s image and usually generate public relations. Because millennials are so in- different to advertising, more companies, including H&M, Heineken, and Nordstrom, are finding it worthwhile to sponsor music, film, and other types festivals and conven- tions such Lollaplooza, South by Southwest, and Comic Con. These are places where millennials (as well as people from other generations) are guaranteed to wander around for an entire weekend. The sponsors set up air-conditioned tents with flashy displays and amenities such as cell-charging stations, freebie beverages, and sample products to lure in potential customers when they need a little downtime from the festivals’ events.[3]

K E Y T A K E A W A Y S

Although the money organizations spend promoting their offerings is likely to get distributed among different media channels, a company still wants to send its customers and potential consumers a consistent message. The promotion (communication) mix is composed of advertising, professional selling, public relations, spon- sorships (of events and experiences), sales promotions, direct marketing, and online, social media, and mobile marketing.

240 PRINCIPLES OF MARKETING VERSION 3.0

reach

The number of people exposed to a message.

frequency

How often people are exposed to a message.

R E V I E W Q U E S T I O N S

1. Define each component of the promotion (communication) mix.

2. Why are online marketing, social media marketing, mobile marketing, and professional selling also part of the promotion mix?

3. FACTORS INFLUENCING THE PROMOTION MIX, COMMUNICATION PROCESS, AND MESSAGE PROBLEMS

L E A R N I N G O B J E C T I V E S

1. Understand that different factors can affect the promotion mix. 2. Understand the communication process. 3. Understand different types of message problems.

3.1 Factors Influencing the Promotion Mix A marketing manager from one company might decide to focus on social media, whereas a marketing manager from another company might decide to focus her company’s efforts on television commer- cials. Why do companies select different types of media for what may be perceived as similar messages? As Figure 11.4 shows, a number of factors affect the choice of promotion mix elements.

F I G U R E 1 1 . 4 Factors That Influence Selection of Promotion Mix

Budget Available. For many companies, the budget available to market a product determines what ele- ments of the promotion mix are utilized. The budget affects a promotion’s reach (number of people exposed to the message) and frequency (how often people are exposed). For example, many smaller companies lack the money to create and run commercials on top-rated television shows or during the Super Bowl and must rely on less-expensive methods such as social media. However, both large and small companies want to get the biggest bang for their advertising buck by maximizing their reach. As a result, firms keep track of what they are spending on different types of media, attempt to measure its impact, and then adjust their spending based on that information.

Stage in the product life cycle. The stage in the product life cycle also affects the type and amount of promotion used. Consumers and businesses won’t buy a product if they do not know about it. Con- sequently, products in the introductory stages typically need a lot more promotional dollars to create

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 241

perceptual process

The way in which people select the information they are exposed to, pay attention to it, interpret it, and retain it.

awareness in the marketplace. More communication is needed in the beginning of the product life cycle to build awareness and trial.

Type of product and type of purchase decision. Different products also require different types of promotion. Very technical products and very expensive products (high involvement) often need to be sold by professional salespeople so the customer understands how the product operates and its differ- ent features. By contrast, a fifteen- or thirty-second TV or radio ad is more likely to be used to sell con- venience goods and products people purchase routinely and are familiar with. Customers don’t need to learn how to use these products or spend a lot of time buying them, so the ads are more designed to help consumers keep the products in mind.

Target market characteristics and consumers’ readiness to purchase. In order to select the best methods to reach different target markets, organizations need to know what types of media different targets use, how often they make purchases, where they make purchases, and what their readiness to purchase is as well as characteristics such as age, gender, and lifestyle. Some people are early adopters and want to try new things as soon as they are available, and other groups wait until products have been on the market for a while. Some consumers might not have the money to purchase different products, although they will need the product later. For example, are most college freshmen ready to purchase new cars?

Consumers’ preferences for various media. We’ve already explained that different types of con- sumers prefer different types of media. College-aged students are more inclined to prefer online, cell phone, mobile marketing, and social media than older consumers do. Media preferences have been re- searched extensively by academics, marketing research companies, and companies to find out how consumers want to be reached. Consider the dilemma the Canadian company Rip n Go was in. Rip n Go is a product for adults who are incontinent. The company launched the product in 2013, but did not have a large ad budget so relied on social media instead. What the firm found out was that con- sumers really didn’t want to talk about or share incontinent information on social media. The company learned its lesson and began taking more of a public relations approach, which led to the product being featured on a number of daytime talk shows, which increased the product’s sales.[4]

Regulations, competitors, and environmental factors. Regulations can affect the type of promotion used. For example, laws in the United States prohibit tobacco products from being advertised on televi- sion. In some Asian countries, controversial products such as alcohol cannot be advertised during Golden (prime) time on television when young children are more likely to see the advertisements. The strength of the economy can have an impact as well. In a weak economy, some organizations use more sales promotions such as coupons to get consumers into their stores. The risk is that consumers may begin to expect coupons and not want to buy items unless they can get a discount on them.

Availability of media. Organizations must also plan their promotions based on availability of me- dia. The top-rated television shows and Super Bowl ad slots, for example, often sell out quickly. Magazines tend to have a longer lead time, so companies must plan far in advance for some magazines. By contrast, because of the number of radio stations and the nature of the medium, organizations can often place radio commercials the same day they want them to be aired. Social media and online media may be immediate, but companies have to be careful about what they post before doing so.

Uncontrollable events can affect a company’s promotions, too. For example, when a disaster oc- curs, TV stations often cut advertisements to make way for continuous news coverage. If there is a crisis or disaster and your company is in the middle of a promotion being advertised on TV, you will likely have to scramble to reach consumers via another medium.

Competitors. On one hand, companies keep a close eye on the promotion mixes of their competit- ors to see what combinations of media they are using and how effective the mixes are with consumers; if a company achieves a great deal of success using a certain type or combination of media, you can bet other companies will follow suit. On the other hand, it’s not uncommon for firms to choose different promotional mixes than their competitors to differentiate themselves.

Push versus pull strategy. Recall that we discussed push and pull strategies in Chapter 8 when we discussed marketing channels. Which strategy a firm chooses depends on whether a firm is running promotions that target consumers or a firm’s intermediaries, such as its wholesalers and retailers. Most companies use a combination of both.

3.2 The Communication Process Do you use TiVo or a digital video recorder (DVR) to record movies or television shows so you can watch them when you want without television commercials? Do you ever use the remote to skip the commercials or zap (change channels) to look at different shows? Think about which television shows you choose to watch, magazines you read, or radio stations you select. The perceptual process is how a person decides what to pay attention to and how to interpret and remember different things, includ- ing information in advertising. By selecting a magazine, a television show, or even an elective class in

242 PRINCIPLES OF MARKETING VERSION 3.0

encodes

Senders must translate or convert benefits and value of a product or service into a message for the message channel selected.

decodes

Receivers interpret messages.

Interference

Any distractions or noise that senders and receivers face during the transmission of a message.

feedback

Means of telling sellers you saw their information and wanted to try their product.

school, you’re choosing what you’re exposed to and what gets your attention. However, your selection does not ensure you’ll pay attention, remember, or correctly interpret what you see or hear.

Think about what else you are doing when you watch television, study, or listen to the radio. It’s a hot day in July and you’re enjoying a day at the beach. Your friends brought a radio and the volume is turned up so you can hear all the music. If you’re listening to the music or talking to a friend at the beach while you’re listening to the radio, do you hear or pay attention to the commercials? Do you re- member which products were advertised? If you’re with a friend and hear someone else say your name, do you pay more attention to the person talking about you than to your friend?

With so many different types of distractions and technology as well as recording devices, imagine how difficult it is for an advertiser to get you to pay attention, much less remember its message. Do you remember the terms you memorized for a test a day later? Do you know your friends’ phone numbers and email addresses, or do you just find their names on your contact list? To increase people’s retention of their marketing messages, advertisers often repeat them multiple times in differ- ent places. However, marketers must be careful that consumers don’t get so tired of the message that their consumers react negatively to it and the product.

Figure 11.5 illustrates how messages are sent and received. The source (or sender) encodes, or translates, a message so that it’s appropriate for the message channel—say, for a print advertisement, TV commercial, or store display—and shows the benefits and value of the offering. The receiver (customer or consumer) then decodes, or interprets, the message. For effective communication to oc- cur, the receiver must interpret the message as the sender intended.

3.3 Message Problems You’re ready to go home on a Friday afternoon and you hear someone mention an upcoming event on Saturday. However, you did not listen to all the details and assume the event is the next day, not the fol- lowing Saturday. Since you already made other plans for the next day, you don’t even consider showing up the following Saturday. Has this ever happened to you? Have you missed an event because you didn’t interpret a message correctly? The same thing can happen with marketing messages. If you do not hear a message correctly or misinterpret it, you might think a product or service provides different benefits or is easier or harder to use than it really is.

Interference, or noise, can distort marketing messages. Factors such as poor reception, poor print quality, problems with a server, or a low battery can interfere with you getting messages. Interference includes any distractions receivers and senders face during the transmission of a message. This is a par- ticular problem today for marketers because increasingly consumers are multitasking. They don’t just sit and watch a TV show. Instead, they are likely to be surfing the Internet at the same time and pos- sibly texting their friends. As a result, marketing messages can be misinterpreted.

The same thing may happen if you’re studying for an exam while you’re talking on the phone. The conversation interferes with remembering what you’re reading. If a friend tells you a story, then you tell another friend, and that person tells someone else, will the message be the same after it is relayed to multiple people? If you miss class and borrow someone else’s notes, do you understand what they mean? Not only must advertisers try to present consistent messages, they must also try to ensure that you interpret the message as they intended.

Purchasing a product provides the sender with feedback, which often tells the seller that you saw information and wanted to try the product. If you use any coupons or promotions when you buy a product, the advertiser knows which vehicle you used to get the information. Market research and war- ranty registration also provide feedback.

We tend to purchase products and remember information that has some relevance to our personal situation or beliefs. If you have no need for a product or service, you might not pay attention to or re- member the messages used to market it. Advertisers also want you to remember their brands so that you’ll think of their goods and services when you need to make a purchase.

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 243

unique selling proposition (USP)

A specific product benefit consumers will remember.

F I G U R E 1 1 . 5 The Communication Process

K E Y T A K E A W A Y S

Many factors, such as a firm’s marketing budget, the type of product, regulations, target customers, and com- petitors, influence what composes the promotion mix. Depending on what medium is used, marketers use the communication process to encode or translate ideas into messages that can be correctly interpreted (decoded) by buyers. However, marketers must determine how to get consumers’ attention and avoid as much interference and noise as possible. Perceptual processes include how a person decides what to pay at- tention to and how to interpret and remember different things.

R E V I E W Q U E S T I O N S

1. Explain the communication process and factors that can interfere with interpretation of messages.

2. What is the perceptual process and how does it relate to promotion?

3. What is the difference between encoding and decoding a message?

4. MESSAGE STRATEGIES

L E A R N I N G O B J E C T I V E S

1. Understand what a unique selling proposition is and how it is used. 2. Understand different types of promotion objectives. 3. Identify different message strategies.

4.1 Utilizing a Product’s Unique Selling Proposition (USP) When organizations want to communicate value, they must determine what message strategies work best for them. Smart organizations determine a product’s unique selling proposition (USP), or spe- cific benefit consumers will remember. Domino’s “Pizza delivered in 30 minutes or it’s free” is a good example of a unique selling proposition. Likewise, Nike’s global slogan “Just Do It” helps consumers

244 PRINCIPLES OF MARKETING VERSION 3.0

think of all the things that they, like professional athletes, are capable of doing when they use Nike’s wide variety of sporting products.

Video Clip

Nike products are used for many different sports by all types of athletes.

When deciding on a message strategy, organizations must consider the audience, the objectives of the promotion, the media, and the budget, as well as the USP and the product. Knowing your audience and who you are trying to reach is critical. Nike and Coca-Cola have been extremely successful in adapting their promotions to different international markets. Both companies have very popular global brands.

The food maker Kraft’s global brands are also very successful, and Kraft’s promotions are consist- ent across media. The company uses the visuals from its commercials as pictures in its print ads in both English and Spanish versions. But although sometimes the same promotions work in different cultures (countries), others must be adapted for different international audiences—similar to the way products may be adapted for international markets. Companies must be careful of how words translate, how ac- tions are interpreted, how actors (or models) look, and what different colors in ads may mean.

The more advertisers know about the consumers (or businesses) exposed to the message, the bet- ter. Commercials for golf products shown during golf tournaments focus specifically on golfers. Other commercials, such as the one shown in the video below, are on the risqué side. They may appeal to some college students but may offend other consumers such as senior citizens. What do you think? Do you think the fast-food chain Hardee’s is trying to reach a younger demographic? Does an ad like this make you more inclined to go to Hardee’s?

Video Clip

This commercial will definitely get your attention, but it may be offensive to some consumers.

View the video online at: http://www.youtube.com/embed/Pp5dZZBKTXQ?rel=0

View the video online at: http://www.youtube.com/embed/Avq2LAcPdj0?rel=0

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 245

primary demand

Demand for a product category (e.g., orange juice) versus a product brand (e.g., Tropicana).

selective demand

Demand for a specific brand (Tropicana orange juice).

AIDA model

A model designed to get the attention, interest, desire, and action of consumers.

4.2 The Organization’s Promotion Objectives Advertisers must also examine their promotion objectives. What are they trying to accomplish with their promotions? Are they trying to build awareness for a new product, wanting to get people to take action immediately, or interested in having people remember their brand in the future? Building primary demand, or demand for a product category, such as orange juice, might be one objective, but a company also wants to build selective demand, or demand for its specific brand(s), such as Tropic- ana orange juice. Some of the other types of objectives firms try to achieve with promotions include:

< differentiating a product from competing products; < repositioning a product; < improving store traffic and sales volumes; < capturing a greater share of the market with a product; < retaining customers and building brand loyalty; < creating “buzz” for a product; and < strengthening the image of a company or brand.

To achieve their promotion objectives, many firms use the AIDA model, which stands for attention, interest, desire, and action. First, companies focus on getting the attention of consumers by making them aware of a product or service, which is especially important for new offerings. If consumers or businesses are not aware of a product or service, they won’t buy it. Once consumers or businesses are aware of products or services, organizations try to increase consumers’ interest in them and persuade consumers that their brands are best (i.e., create desire for the products). Ultimately, companies want consumers to take action or purchase their products or services.

4.3 Message Characteristics Organizations must also determine what type of appeal to use and how to structure their messages. Some of the common advertising appeals are humorous, emotional, frightening, rational (informative), and environmentally conscious. Appeals that stress how fun a product is or how it will improve a per- son’s health, financial situation, social status, or looks are also common. If you were asked to name your favorite commercial, would it be one with a humorous appeal? Many people like commercials that use humor because they are typically entertaining and memorable. Humor sells, but firms must be careful that the brand is remembered. Some commercials are very entertaining, but consumers cannot remember the brand or product.

Each year, some of the most talked-about commercials take place during the Super Bowl. Many people watch the game just to see the commercials. Watch the following YouTube videos to see one of the top ten Super Bowl commercials of all time and how newer commercials relied on a similar ap- proach. Notice how many of them use a humorous appeal. But do you think some are more effective than others? In other words, will viewers actually buy the product(s)?

Video Clip

This Coke commercial featured the pro football player “Mean” Joe Greene and has a humorous appeal.

View the video online at: http://www.youtube.com/embed/Lc0izCGKxP8?rel=0

246 PRINCIPLES OF MARKETING VERSION 3.0

open-ended message

A promotional message that allows the consumer to draw his or her own conclusions.

closed-ended message

A promotional message that draws a logical conclusion.

Video Clip

In 2009, Coke used the same approach as it did with its 1980 award-winning Mean Joe Green commercial. But this time the product being advertised was Coke Zero.

Video Clip

Pepsi used a similar approach as Coke for this commercial, although it was not a Super Bowl commercial.

Companies must also be careful when using fear appeals so consumers don’t get too alarmed or frightened. A few years ago, Reebok had to discontinue a TV ad because it upset so many people. The ad showed a bungee jumper diving off a bridge, followed by a shot of just his shoes hanging from the bridge by the bungee cord. That ad provoked people because it implied the jumper had fallen to his death.

Firms also decide whether to use strategies such as an open-ended or closed-ended message, a one- sided or two-sided message, or slogans, characters, or jingles. An open-ended message allows the consumer to draw his or her own conclusion, such as a commercial for perfume or cologne. A closed-ended message draws a logical conclusion. Most messages are one sided, stressing only the positive aspects of a product, similar to what you include on your résumé.

However, two-sided messages are often used as well. They are common in content marketing. Recall that when firms utilize content marketing they are trying to educate consumers about the pros and cons of a product and then persuade them that the pros outweigh the cons. Two-sided messages are often used when a product is complex and needs explaining. Insurance products are an example. But two-sided advertising can also be used for products that are routinely purchased. For a number of years, Heinz ran ads with the tagline “still the slowest ketchup in town.” The point of the ad was that even though Heinz ketchup is really slow coming out of the bottle, it is thick and rich and therefore worth the wait. Consumers are likely to view a two-sided message positively because it makes it appear that the seller has been honest about both the positive and negative aspects of the product.

The order of presentation also affects how well consumers remember a brand. If you forgot about a twenty-five-page term paper that you had to write before the next day of class, which sections of the pa- per would you try to make the strongest? Would it be the beginning, the end, or the middle of the

View the video online at: http://www.youtube.com/embed/v_pYddCq7Hg?rel=0

View the video online at: http://www.youtube.com/embed/Jx38M9llRtA?rel=0

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 247

paper? Many students argue that either the beginning or the end is most important, hoping that the in- structor does not read the entire paper carefully. The same strategy is true for commercials and advert- isements. The beginning and the end of the message should be strong and include the brand name. That way, if consumers hear or read only part of the message, they will hopefully remember the brand name.

Companies often use characters or mascots and/or jingles or slogans to get the attention of con- sumers and help them remember their brands. When you think of Campbell’s soup, do you think “Mm, mm good”? Campbell’s began using the slogan in the early 1900s, and later made it a registered trademark. Apparently, “Mm, mm good” still resonates with consumers.

Video Clip

This commercial first aired in the 1973. It was so cute that many consumers still can’t forget the song—or the Oscar Mayer brand.

Other classic characters (mascots) or symbols you may be familiar with include the Jolly Green Giant, the Pillsbury Doughboy, and Oscar Mayer’s Wienermobile. The Weinermobile first hit the road in 1936, and is a fully integrated part of the company’s marketing communications plan. You can follow the Weinermobile on Twitter and Instagram and buy Weinermobile-related gear and toys on Oscar Mayer’s website. You can also download a driving game app that provides updates on the exact loca- tion of the vehicle at any point in time. Oscar Mayer also has an app that lets you add the Weiner- mobile to any photo you take. (Anybody want to create a selfie with the Weinermobile?)

View the video online at: http://www.youtube.com/embed/rmPRHJd3uHI?rel=0

248 PRINCIPLES OF MARKETING VERSION 3.0

F I G U R E 1 1 . 7

For nearly a century the Jolly Green Giant helped people remember General Mills’ product lineup.

Source: Wikimedia Commons.

F I G U R E 1 1 . 6

“The best thing about Wienermobile sightings is that, unlike Sasquatch, the Weinermobile is real,” say the folks at Oscar Mayer.

Source: Wikimedia Commons.

How successful are advertisers in making sure consumers know their brands? Try the brand quiz at http://www.smartmarketingquiz.com/flash/SM_Quiz/smartmarketing.html and see how many brand icons you know.

But although many of the characters and jingles have stayed the same for decades, companies have to be prepared to change not only their mascots, jingles, and messaging strategies, but their products and other elements of the marketing and promotion mix as the consumers they target change. The Jolly Green Giant is an example. For 90 years the mascot helped General Mills sell the company’s canned and frozen products. But recently General Mills sold the giant and its Green Giant product lineup to another company. Why? Because more shoppers today have begun favoring fresh food rather than canned and frozen food.

Likewise, Campbell’s Soup has changed its products, packaging, and messaging to attract millenni- als and people who want fresher, less-processed foods. The company also rolled out an ad campaign called “Real Real Life,” which is designed to appeal to the growing number of nontraditional families in the United States—families that often have a lot of spending power.

Video Clip

This commercial targets nontraditional families and represents a new messaging strategy for Campbell’s Soup.

View the video online at: http://www.youtube.com/embed/VVnOsonF1Fw?rel=0

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 249

http://www.smartmarketingquiz.com/flash/SM_Quiz/smartmarketing.html

percent-of-sales method

A budgeting technique based on a set percentage of current or projected sales.

affordable method

A budgeting technique whereby companies spend what they think they can afford promoting a product.

competitive parity

A budgeting method whereby companies make sure their promotion budgets are comparable to their competitors’.

objective and task method

A budget based on a company’s promotion objectives and the costs of the activities and tasks necessary to accomplish those objectives.

K E Y T A K E A W A Y S

Organizations must determine promotion objectives, or what they want to accomplish with their promotions. For example, if a company has a new brand, it may want to generate awareness or attention. Later, the com- pany may focus on persuading customers to buy its brand. Each brand needs a unique selling proposition (USP), or specific benefit consumers will remember. To achieve their promotion objectives, many firms use the AIDA (attention, interest, desire, and action) model. Organizations must also determine what type of appeal to use and how to structure their messages. Some of the common advertising appeals are humorous, emotional, frightening, rational (informative), and environmentally conscious. Appeals that stress how fun a product is or how it will improve a person’s health, financial situation, social status, or looks are also common. Using characters or mascots and/or jingles or slogans is another way to get the attention of consumers and help them remember brands.

R E V I E W Q U E S T I O N S

1. Identify the different promotion objectives companies may use.

2. What are some of the message strategies organizations use?

3. What is the difference between an open-ended and a closed-ended message?

5. THE PROMOTION BUDGET

L E A R N I N G O B J E C T I V E S

1. Understand different ways in which promotion budgets can be set. 2. Understand how the budget can be allocated among different media.

An offering’s budget is a critical factor when it comes to deciding which message strategies to pursue. Several methods can be used to determine the promotion budget. The simplest method for determin- ing the promotion budget is often merely using a percentage of last year’s sales or the projected sales for the next year. This method does not take into account any changes in the market or unexpec- ted circumstances. However, many firms use this method because it is simple and straightforward.

The affordable method, or what you think you can afford, is a method used often by small busi- nesses. Unfortunately, things often cost more than anticipated, and you may not have enough money. Many small businesses think they’re going to have money for promotions, but they run out and cannot spend as much on the promotions as they had hoped. Such a situation may have happened to you when you planned a weekend trip based on what you thought you could afford, and you did not have enough money. As a result, you had to modify your plans and not do everything you planned.

Other companies may decide to use competitive parity—that is, they try to keep their promo- tional spending comparable to the competitors’ spending level. This method is designed to keep a brand in the minds of consumers. During a recession, some firms feel like they must spend as much—if not more—than their competitors to get customers to buy from them. Other companies are forced to cut back on their spending or pursue more targeted promotions. When Kmart faced bankruptcy, the firm cut back on its expenditures yet kept its advertising inserts (free-standing inserts, or FSI) in Sunday newspapers to remain competitive with other businesses using inserts.

A more ideal approach is the objective and task method, whereby marketing managers first de- termine what they want to accomplish (objectives) with their communication. Then they determine what activities—commercials, sales promotions, and so on—are necessary to accomplish the objectives. Finally, they conduct research to figure out how much the activities, or tasks, cost in order to develop a budget.

Part of the budgeting process includes deciding how much money to allocate to different media. As you have learned, spending changes are occurring as the media landscape continues to change. Fig- ure 11.8 shows what percentage US firms allocated to different types of media in 2015, according to in- formation gathered by eMarketer and other research firms. Spending on mobile marketing, which is included in the Internet category of the chart, is by far growing the fastest.

250 PRINCIPLES OF MARKETING VERSION 3.0

F I G U R E 1 1 . 9

A different type of “mobile” marketing: The Stubb’s BBQ trailer travels around the country promoting the company’s brand name and product. (This is actually an example of out-of- home advertising.)

Source: Photo courtesy of Stubb’s Legendary Kitchen.

cost per contact

The cost to reach one receiver of a marketing message.

F I G U R E 1 1 . 8 US Spending on Different Types of Media, 2015

Source: Adapted from "Mobile to Account for More than Half of Digital Ad Spending in 2015," eMarketer.com, September 1, 2015,

http://www.emarketer.com.

Another factor firms consider when choosing among media is the cost per contact. The cost per contact is what it costs a firm to reach one receiver of a marketing message. Recall that we talked about how many cents it costs an advertiser to reach each viewer of a Super Bowl commercial. In practice, marketing professionals measure contact costs in terms of 1,000 people contacted rather one person contacted.

Thanks to social media, the cost per contact of an ad can sometimes be much lower than what a firm originally calculates. The beer brand Old Milwaukee created a com- mercial shown during Super Bowl XLVI, which only aired locally in North Platte, Neb- raska. North Platte is the second smallest television market in the country with only 15,000 homes, but football is huge there. The thirty-second spot only targeted a small audience at a cost of $700–$1,500 in the local market, but the commercial created more buzz when it was posted on YouTube than many of the nationally broadcast Super Bowl commercials.

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 251

medium

The general types of communication (e.g., television or radio) available for advertisers.

K E Y T A K E A W A Y S

Companies can determine how much to spend on their promotions using several different methods. The per- cent of sales method, in which companies use a set percentage of sales for their promotion, is often the easi- est method to use. Small companies often focus on what they think they can afford whereas other organiza- tions may try to keep their promotional spending relatively equal to their competitors’. The objective and task approach takes a firm’s objectives into consideration and the costs of the tasks necessary to accomplish those objectives in order to determine a promotion budget. Part of the budgeting process includes deciding how much money to allocate to different media. Another factor firms consider when choosing among media is the cost per contact, or receiver, of a message. In practice, marketing professionals put this measure in terms of the cost per 1,000 people contacted.

R E V I E W Q U E S T I O N S

1. Explain four different ways to set a product’s promotion budget.

2. Why is mobile marketing growing so fast?

6. ADVERTISING AND DIRECT MARKETING

L E A R N I N G O B J E C T I V E S

1. Understand the difference between media and vehicles. 2. Explain the similarities and differences between advertising and direct marketing. 3. Understand the benefits of direct marketing and what types of direct marketing organizations

often utilize.

6.1 Advertising Advertising is paid promotion with an identified sponsor that reaches many people at one time and can be repeated many times. One of the biggest issues an organization must address is which medium or media provides the biggest bang for the buck, given a product’s characteristics and target market. For example, a thirty-second ad aired during the 50th Super Bowl cost $5 million.[5] Because 111.9 million people watched the game, the cost per ad was approximately 4.5 cents per viewer.[6] Do high-priced ads such as these pay off in terms of sales, when you consider the fact that they reach so many people? Many advertising professionals believe many of the ads don’t, yet the ads probably do create brand awareness or a public relations type of effect since many people tune in and then talk about Super Bowl commercials.

Whether it’s a commercial on the Super Bowl or an ad in another medium, each has different ad- vantages and disadvantages. For example, mobile phones provide access to people on the go, although the reception people get can vary in different markets. Radios, magazines, and newspapers are also portable. People tend to own more than one radio, but there are so many radio stations in each market that it may be difficult to reach all of your target customers. People are also doing other activities, such as driving or studying, while listening to the radio. And lacking visuals, radio must rely solely on audio to get people’s attention.

Of course, television does allow for visuals. But like radio, many people multitask while watching television too. Or they use their DVRs to skip commercials, change channels during commercials, or leave the room. In an effort to get people’s attention, for years advertisers increased the volume of tele- vision commercials. However, the Federal Trade Commission passed a regulation effective in 2010 that prohibits advertisers from changing the volume levels of TV commercials, although consumers still no- tice that some commercials are louder than the regular shows.

People save magazines for a long time, but advertisers must plan in advance to run their ads in cer- tain issues. Because of the Internet, both magazines and newspapers are suffering in terms of reader- ship and advertising dollars. Many major newspapers, such as papers in Seattle and Chicago, have gone out of business. Other newspapers are free online but still make printed copies available, such as with USA Today. The fact that local retailers get cheaper rates for advertising in local newspapers may encourage both local businesses and consumers to support newspapers in some markets.

252 PRINCIPLES OF MARKETING VERSION 3.0

vehicle

The specific means, such as a particular magazine or a specific television show, within a medium to reach a selected target market.

Telemarketing

A form of direct marketing that involves contacting people by phone.

F I G U R E 1 1 . 1 0

The first issue of Sports Illustrated was published August 16, 1954. Today, the companies that advertise in Sports Illustrated can do so not only in the magazine but also on the publication’s website.

Source: Wikimedia Commons.

Within each different medium, an organization might select a different vehicle. A vehicle is the spe- cific means within a medium to reach a selected target market. For example, if a company wants to de- velop television commercials to reach teenagers, it might select a TV show like “Teen Wolf” as the best vehicle. If an organization wants to use magazines to reach males interested in sports, it might use Sports Illustrated or the publication’s website, SI.com, where readers can get up-to-date information about sporting events and scores.[7]

6.2 Direct Marketing Recall that catalogs and brochures mailed to people are examples of direct marketing. Direct marketing allows organizations to target a specific set of customers, test different marketing strategies before rolling them out to all targeted consumers, and then readily measure how well the campaign worked by looking at its return on investment (ROI). For example, a firm might test one type of brochure by send- ing it to people in a target market. If the response is good, the firm will then send the brochure to its entire target market. The effect of direct marketing is also easily measurable. If you know how many brochures you sent, and and how many people responded by buying the item advertised in the bro- chure, it’s easy to figure out whether the campaign paid off or not. However, consumers often ignore attempts to reach them via direct marketing.

Telemarketing involves direct marketing by phone. You may have just sat down for dinner when the phone rings with a local charity calling to raise money. The calls always seem to come at dinner or at other inconvenient times. Although expensive, telemarketing can be extremely effective for charit- able organizations and different service firms and retailers. However, because some consumers have negative perceptions of telemarketers, many organizations do not use it. The National Do Not Call Re- gistry, which was established in 2008, prohibits for-profit organizations from calling phone numbers registered with the Federal Trade Commission, subject to certain exceptions. For example, a call from an organization that you have established a business relationship with is legal. A call from an organiza- tion that you have never heard of or have never done business with is not legal.

As you have learned, direct response advertising includes an offer and a call to action. You may be watching television when an interesting product is shown. The announcer says, “Call now and receive a bonus package.” The advertiser wants consumers to call to purchase the product or to get more in- formation. The Internet is a less-expensive direct response medium for direct marketing, and, as you will learn in Chapter 12, a highly profitable one. All of the marketing emails you get urging you to buy products now are an example of direct response advertising conducted over the Internet.

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 253

K E Y T A K E A W A Y S

Advertising is paid for communication that has an identified sponsor and reaches many people at one time. Once companies decide on different media (e.g., magazines or television), they must also select specific vehicles (e.g., Sports Illustrated or the Super Bowl), Direct marketing allows organizations to target specific indi- viduals and use personalized direct response advertising. Telemarketing, the Internet, direct mail, and catalogs are examples direct marketing methods.

R E V I E W Q U E S T I O N S

1. Why do you think so many organizations rely on advertising to communicate with customers and potential customers?

2. What is the difference between a medium and a vehicle? Give examples of each.

3. Why is direct marketing successful even though some consumers may not like it?

7. PUBLIC RELATIONS, SPONSORSHIPS, AND PRODUCT PLACEMENTS

L E A R N I N G O B J E C T I V E S

1. Understand the concept of public relations and why organizations allocate part of their promo- tional budgets to it.

2. Understand what the different types of public relations tools are. 3. Explain how sponsorships work 4. Explain what a product placement is.

7.1 Public Relations You just finished reading a great newspaper story about a local restaurant even though you know the company has experienced several lawsuits and many customer complaints. The news story makes the restaurant sound like a great corporate citizen and the best place to eat in town. Sometimes a company gets “free” publicity such as news stories or reviews about its products and services in the mass media, even though the organization has no control over the content of the stories and might not even know about their publication. How did a restaurant with so many complaints manage to get such a great story written about it? How did it get good coverage when it might not be deserved? Perhaps the res- taurant used part of its promotion budget to pay for public relations efforts to generate positive stories and positive publicity.

Public relations (PR) includes information that an organization wants its public (customers, em- ployees, stakeholders, general public) to know. PR involves creating a positive image for a company, an offering, or a person via publicity. PR has become more important in recent years because there are now so many media outlets people pay attention to, including YouTube, social networking sites, and blogs. It’s pretty easy for anyone to say anything about a company in a public forum and for the in- formation to spread fast. Indeed, publicity is a double-edged sword; it can result in negative news, such as a poor review of a movie, restaurant, or car, or positive news.

Good public relations efforts result in positive news by helping a firm create rapport with its cus- tomers, promote what it has to offer, and supplement its sales efforts. PR puts a positive spin on news stories and is often perceived as more neutral and objective than other forms of promotion because much of the information is tailored to sound as if it has been created by an organization independent of the seller. Public relations materials include press releases, publicity, and news conferences. Companies also use PR to promote products and to supplement their sales efforts.

Many organizations that engage in public relations have in-house PR departments, media relations groups, or investor relations groups. Other organizations sometimes hire external PR firms or advert- ising agencies to find and create public relations opportunities for them. PR specialists must build rela- tionships with people at different media outlets to help get their stories placed. Universities, hospitals, government organizations, and charitable organizations often hire PR people to help disseminate

254 PRINCIPLES OF MARKETING VERSION 3.0

positive information about their services and to increase interest in what they do. As such, PR is part of a company’s promotion budget and their integrated marketing communications.

PR specialists also help political campaign managers generate positive information in the press. PR specialists can handle crisis communication and put a positive view on situations when something bad happens to an organization or person. In foreign markets, PR agencies may help ensure product con- cepts are understood correctly. Getting all PR stories placed in desired media is not guaranteed. A lot of time and effort is spent getting to know people who can help publish or announce the information to the public. Organizations work hard to get favorable news stories, so while publicity sounds free, build- ing relationships with journalists does cost money.

Companies use a variety of tools for their public relations purposes, including annual reports, bro- chures and magazines for both employees and the public, websites to show good things they’re doing, speeches, blogs, videos, and podcasts. Some of the most commonly used PR tools include press releases and news conferences.

Press Releases

Part of a company’s public relations efforts includes putting a positive spin on news stories. A press re- lease is a news story written by an organization to promote a product, organization, or person. Con- sider how much better a story or a product recommendation is likely to be perceived when the receiver thinks the content is from an objective third party rather than an organization writing about itself. Public relations personnel frequently prepare press releases in hopes that the news media will pick them up and disseminate the information to the public. However, there is no guarantee that the media will use a press release. Some of the PR opportunities that companies may seek to highlight in their press releases include charity events, awards, new products, company reports, and things they are do- ing to improve the environment or local community.

Read the following two examples of press releases. The first story sounds like it was written by a news organization, but it was created by Apple and their public relations people to publicize the com- pany’s Apple TV product. The second press release and picture provide an example of how a company like Stubb’s Bar-B-Q teams up with Mobile Loaves & Fishes, a charity that helps feed the hungry, to help feed homeless and poor people and restock food banks around the country. The story enhances the positive image of both organizations.

Apple Press Release

Apple Brings Innovation Back to Television with The All-New Apple TV

The App Store, Siri Remote & tvOS are Coming to Your Living Room

SAN FRANCISCO—September 9, 2015—Apple® today announced the all-new Apple TV®, bringing a revolution- ary experience to the living room based on apps built for the television. Apps on Apple TV let you choose what to watch and when you watch it.The new Apple TV’s remote features Siri®, so you can search with your voice for TV shows and movies across multiple content providers simultaneously.

The all-new Apple TV is built from the ground up with a new generation of high-performance hardware and introduces an intuitive and fun user interface using the Siri Remote™. Apple TV runs the all-new tvOS™ operat- ing system, based on Apple’s iOS, enabling millions of iOS developers to create innovative new apps and games specifically for Apple TV and deliver them directly to users through the new Apple TV App Store™.

“There has been so much innovation in entertainment and programming through iOS apps, we want to bring that same excitement to the television,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services. “Apps make the TV experience even more compelling for viewers and we think apps represent the future of TV.”

The new Siri Remote dramatically simplifies how you select, scroll and navigate through your favorite content while bringing unique interactivity to the new Apple TV by using a glass touch surface that handles both small, accurate movements as well as big, sweeping ones. Adding touch to Apple TV creates a natural, con- nected experience, even if the TV screen is on the other side of the room. Developers can take advantage of the built-in accelerometer and gyroscope, and the touch surface on the Siri Remote to create games and oth- er app experiences that have never been seen on TV before.

With Siri, you can use your voice to search TV shows and movies by title, genre, cast, crew, rating or popularity, making it easy to say things like “Show me New Girl,” “Find the best funny movies from the ‘80s,” “Find movies with Jason Bateman,” and “Find popular TV shows for kids.” Apple TV will search iTunes® and popular apps from Netflix, Hulu, HBO, and Showtime, displaying all the ways the resulting TV shows and movies can be played. Siri also offers playback control and on-screen navigation, as well as quick access to sports, stock and weather information.*

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 255

tvOS is the new operating system for Apple TV, and the tvOS SDK provides tools and APIs for developers to create amazing experiences for the living room the same way they created a global app phenomenon for iPhone® and iPad®. The new, more powerful Apple TV features the Apple-designed A8 chip for even better per- formance so developers can build engaging games and custom content apps for the TV. tvOS supports key iOS technologies including Metal™, for detailed graphics, complex visual effects, and Game Center, to play and share games with friends.

Pricing & Availability

The new Apple TV will be available at the end of October starting at $149 (US) for a 32GB model and $199 (US) for a 64GB model from Apple.com, Apple’s retail stores and select Apple Authorized Resellers. A new Xcode®

beta is available for developers today that includes the tvOS SDK at developer.apple.com/xcode/downloads. Developers can request an Apple TV developer kit at developer.apple.com/tvos/.

Siri availability and functionality varies by country. Subscription required for some content.

Stubb’s Press Release

Stubb’s Teams Up with Mobile Loaves & Fishes to Launch “Feed the World Tour”

Tuesday, May 26, 5 p.m. @ Wooldridge Park

AUSTIN—Stubb’s Legendary Kitchen will kick off its twelve-city “Feed the World Tour” this Tuesday, May 26 at 5 p.m. in Wooldridge Square Park, 9th and Guadalupe Streets, by serving chopped beef sandwiches with fam- ous Stubb’s barbecue sauce to homeless and working poor people from one of Mobile Loaves & Fishes’ spe- cial catering trucks, which serve people in six cities every day.

F I G U R E 1 1 . 1 1

Source: Photo courtesy of Stubb’s Legendary Kitchen.

Kurt Koegler, president of Stubb’s Legendary Kitchen, will join Alan Graham, Mobile Loaves’ founder/pres- ident, and volunteers from the company and MLF volunteers to serve the sandwiches and distribute Stubb’s T- shirts. The Austin-based company chose Mobile Loaves as its partner to kick off the “Feed the World Tour,” which is named for the stated mission of Texas Bar-B-Q legend, C.B. “Stubb” Stubblefield, who said: “I was born hungry. I want to feed the world.”

After leaving Austin, the tour will swing through the Southeast, up the East Coast and into Washington, D.C. where the Stubb’s team will compete at the annual BBQ Battle on Pennsylvania Avenue. In each city, Stubb’s Legendary Kitchen and company president Koegler will barbecue for the homeless and help restock depleted food banks.

“Stubb was a cook but more than that, a lover of people. The values that guided his life still guide the com- pany that bears his name. Stubb’s life truly is in every bottle of sauce and marinade we make. All of us at Stubb’s are thrilled to be working with Mobile Loaves and bringing all of Stubb’s Love and Happiness to those who all too often need it most” said Koegler.

“The economy has placed greater demand on organizations like Mobile Loaves and local food banks, so we couldn’t think of a better time to show our support,” Koegler said. “Stubb’s greatest joy was feeding the people who came from all around for a taste of his famous barbecue, and it is an honor for us to fulfill his mission with our Feed the World Tour.”

256 PRINCIPLES OF MARKETING VERSION 3.0

https://developer.apple.com/xcode/download/

https://developer.apple.com/tvos/

Crisis communication

The process of countering the negative effects a company experiences when it receives extremely bad publicity.

Online reputation management (ORM)

The process of monitoring what’s being said about your company on the Internet in an effort to influence people’s perceptions about the firm.

“We’re honored to be selected as Stubb’s charity partner for the kick-off of this awesome tour,” Graham said. “As someone who once was poor and hungry, C.B. ‘Stubb’ Stubblefield is smiling in heaven to know that his creation is helping feed brothers and sisters on the street here in Austin and around the country. We look for- ward to connecting Stubb’s with people on the streets here and in the other cities we serve.” [8]

Press releases and other PR activities can also be used for damage control purposes. Crisis communication is the process of countering the negative effects a company experiences when it re- ceives extremely bad publicity. Domino’s Pizza was forced to engage in damage control after two of its employees created a video doing disgusting things to pizzas and then posting it to YouTube.[9] If the publicity is particularly bad, as it was for Domino’s, a company might hold a press conference or pre- pare a speech for the top executive to give. For example, the president of Domino’s spoke on video to try to control the damage to Domino’s business. The company then posted the video on YouTube.

Online Reputation Management

Online reputation management (ORM) is the process of monitoring what’s being said about your company on the Internet in an effort to influence people’s perceptions about the firm. ORM is an im- portant part of PR because as you know, negative information and images about a company can spread like wildfire online. Negative information online is also hard to combat because companies usually don’t control the social networks and websites the information appears on.

Sometimes the information posted is false. Chinese companies actually pay people to go online and disparage their competitors’ products. At one point, KFC had to refute a rumor that its Chinese restaurants were cooking up chickens that each had eight legs.[10]

Sometimes, however, the negative information is true. Some goods and services are truly bad and get rated as much on social media. UPS had to go into crisis communication mode after someone pos- ted a video online of an employee recklessly tossing packages around rather than handling them care- fully.[11] The effort included putting out press releases and calling a news conference.

PR personnel routinely dispute false information and bogus reviews and get them removed from third-party websites they don’t control, such as Yelp, Trivago, and Amazon. Of course, a firm can simply delete negative comments on its own websites that it controls. But doing so can be problematic. Why? Because people whose posts get deleted usually post their messages over and over again online as well as complain on other social networks and websites that their posts are being deleted. It’s better to immediately acknowledge a customer’s complaint and resolve it before the negative information spreads.

Dell Computer created a new department called the Social Media Command Center after custom- ers complained publicly online about being trapped in “Dell Hell” when they tried to get good custom- er service from computer maker. An army of Dell employees at the command center use sophisticated technology to determine what’s being said about Dell online and how exactly to help customers solve their problems.

Online reputation doesn’t always have to involve salvaging your company’s reputation though. It can also be used to enhance your reputation. What Daniel McCawley, the owner of the Atomic Grill eatery in Morgantown, West Virginia, did to promote his restaurant on social media is an example of online reputation management at its finest. McCawley was monitoring what customers were saying about the restaurant on Urbanspoon when he noticed an online comment to the effect that the waitstaff at the restaurant ought to “show more skin.”

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 257

F I G U R E 1 1 . 1 2

There’s more than one way to “skin” a problem that develops on social media.

Source: Thinkstock 484587566.

F I G U R E 1 1 . 1 3

The Staples Center in Los Angeles is an example of a venue sponsorship.

Source: Wikipedia.

sponsorship

Paying a fee to have your name associated with different things such a particular venue, person’s apparel, or event, or even a NASCAR vehicle.

The remark upset McCawley, who is the father of young girl and has five sisters. So, he announced on the restaurant’s Facebook page that the Atomic Grill would be running a temporary promotion in which a lot of skin would be shown: potato skins, that is. He also posted a photo of an order of them and noted that the profits from the “Show Our Skin” campaign would be donated to the West Virginia Foundation for Rape Information Services.

It didn’t take long for the “Show Our Skin” campaign to spread like wildfire on so- cial media as well as get the attention of media outlets nationwide. As a result of McCawley’s creative thinking, hundreds of people who had never been to the restaur-

ant before showed up to buy potato skins and exhibit (pardon the pun) their support for the foundation.

Lastly, although it’s a widespread practice that is hard to combat, it’s not a good idea to try to improve your reputation by paying people to provide fake “likes” online. According to the U.S. Federal Trade Commission, an advertiser buying fake “likes” is very different from an advertiser offering incentives for “likes” from actual consumers. If “likes” are from non-existent people or people who have no experience using the product or service, they are clearly deceptive, and both the purchaser and the seller of the fake “likes” could face enforcement action.

7.2 Sponsorships Many of you have heard of the Staples Center, where the Los Angeles Lakers play basketball. But ima- gine how many more people heard about the Staples Center following the announcement that Michael Jackson’s public memorial was taking place at the Staples Center in July 2009. All the news stories talk- ing about tickets and information about the memorial provided “free” publicity for the office supplies store, Staples, for which the center is named. Staples paid $100 million in 1999 for naming rights of the center for 20 years,[12] but the chain has gotten a huge return on its sponsorship of the center.

A sponsorship involves paying a fee to have your name associated with different things, such as the following:

< a particular venue (Citi Field; the Staples Center); < a superstar’s apparel (Golfer Jordan Spieth wearing Under Armour clothing); < an event (the AT&T National Golf Tournament; the Chick-fil-A Peach Bowl); < a cause (M&M’s support of the Special Olympics); < an educational workshop or information session; and < a NASCAR vehicle (such as the car sponsored by Pfizer, the maker of Viagara).

258 PRINCIPLES OF MARKETING VERSION 3.0

F I G U R E 1 1 . 1 4

Pfizer, the maker of Viagra, is one of the many companies that sponsor NASCAR racing teams.

Source: Flickr.

Cause-related marketing

When a company supports a nonprofit organization in some way in order to generate positive public relations.

product placement

Getting a company’s product included as part of a television show, movie, video game, special event, or book.

Even though sponsorships are expensive, they are growing in popularity as corporations seek ways to strengthen their corporate image, increase their brand awareness, differentiate their products, and reach their target markets. Worldwide, corporations spend tens of billion of dollars annually on spon- sorships. Over two-thirds of the sponsorships in North America are for sports, followed by entertain- ment and performing arts and causes, such as the Susan G. Komen Race for the Cure.[13]

Cause-related marketing, such as sponsoring the Susan G. Komen Race for the Cure, is one of the fastest-growing types of sponsorships. It occurs when a company supports a nonprofit organization in some way. Mars Inc.’s M&M’s brand sponsors the Special Olympics, and American Airlines raises money for breast cancer research with an annual celebrity golf and tennis tournament. Cause-related marketing can have a positive PR impact by strengthening the affinity people have for a company that does it.

Video Clip

By sponsoring the Special Olympics, the M&Ms brand generates positive PR for Mars Inc.

Source: YouTube, http://www.youtube.com/embed/P6SNLE7JPf0?rel=0.

7.3 Product Placements Getting a company’s product included as part of a television show, movie, video game, special event, or book is called a product placement. A classic example is Reese’s Pieces. Way back in 1982, Hershey’s paid $1 million to have Reese’s Pieces featured in the movie “E.T. the extra-terrestrial.” More recently, Heineken paid $45,000 for James Bond to take a quick sip of its beer rather than a martini in the movie “Skyfall.”[14] For years, Coca-Cola paid to have cups of Coke placed on the judges’ table on the show “American Idol.”

Product placements are designed to generate exposure, brand awareness, and interest in a product. Although most product placements appear in television shows and movies, they also appear in online videos, computer games, and books. The number of product placements is expected to increase as con- sumers continue to skip commercials and advertisements using digital video recorders (DVRs).

Typically, a company pays a fee a product placement. So, technically, a product placement is a type of advertising. However, like public relations and sponsorships, it’s a subtle type of advertisement rather than an overt sales pitch.

Sometimes a company pays nothing if the product is needed for a show in some way or as part of the plot. The final episode of the AMC series “Mad Men” ended with a 1971 Coke ad featuring the song “I’d Like to Buy the World a Coke.” The Coca-Cola Company didn’t pay for the ad but did give the show permission to use it.[15]

View the video online at: http://www.youtube.com/embed/P6SNLE7JPf0?rel=0

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 259

Video Clip

The Coca-Cola Company paid nothing when the AMC series “Mad Men” showed this ad at the end of the show’s final episode.

K E Y T A K E A W A Y S

Public relations (PR) are the activities organizations engage in to create a positive image for a company, product, service, or a person. A press release, which is a commonly used PR tool, is designed to generate publi- city, but there is no guarantee journalists will use it in the stories they write. Online reputation management (ORM) is an important part of PR because negative information and images about a company can spread like wildfire online. Sponsorships are designed to increase brand awareness, improve a company’s image, and reach target markets. Product placements are designed to generate exposure, brand awareness, and interest in a product.

R E V I E W Q U E S T I O N S

< Why are public relations efforts funded by firms?

< Who does the public relations for a firm?

< Why is it critical for firms to engage in online reputation management?

< Why are sponsorships becoming more popular?

View the video online at: http://www.youtube.com/embed/Exf63KPXF6w?rel=0

260 PRINCIPLES OF MARKETING VERSION 3.0

flash sale

A sale that offers a deep discount on a product (or products) for a limited number of hours.

sample

A small amount of a product given to consumers to try for free.

Coupons

Provide an immediate price reduction off an item that is reimbursed to the retailer by the manufacturer.

8. SALES PROMOTIONS

L E A R N I N G O B J E C T I V E S

1. Describe the different types of sales promotions companies use to get customers to buy their products.

2. Understand the different types of sales promotions companies use with their business customers.

3. Understand why sales promotions have become such an integral part of an organization’s pro- motion mix.

4. Differentiate between push and pull strategies.

Sales promotions are activities that supplement a company’s advertising, public relations, and profes- sional selling efforts. They create incentives for customers to buy products more quickly and make lar- ger purchases. Sales promotions are often temporary. Sometimes they are very temporary. A flash sale is a sale that offers a deep discount on a product (or products) for only a number of hours. Zulily is an online website that specializes in flash sales. “Deals of the day” and airline tickets that are discounted for only a short amount of time are also examples of flash sales. Most flash sales are aimed at con- sumers rather than B2B buyers. Next, let’s look at some of the other types of consumer sales promo- tions firms use.

8.1 Consumer Sales Promotions Samples, coupons, premiums, contests, and rebates are consumer sales promotions. Do you like free samples? Most people do. A free sample allows consumers to try a small amount of a product so that hopefully they will purchase it. The strategy encourages trial and builds awareness of a product. You have probably purchased a product that included a small free sample with it—for example, a small amount of conditioner packaged with your shampoo. Perhaps you went to a store that provided free samples of different food items. Although sampling is an expensive strategy, it is usually very effective for food products. People try the product, and the person providing the sample tells them about the product and mentions any special prices for it.

In many retail grocery stores, coupons are given to consumers with the samples. Coupons provide an immediate price reduction off an item. The amount of the coupon is later reimbursed to the retailer by the manufacturer. The retailer also gets a handling fee for accepting coupons. When the eco- nomy is weak, more consumers cut out coupons and look for special bargains such as double coupons and buy-one-get-one-free (BOGO) coupons. They may also buy more store brands.

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 261

Point-of-purchase displays

Stores in shelves where products are prominently displayed along with materials to market them.

premiums

Something consumers get for free or for a small handling charge with proof of purchase.

F I G U R E 1 1 . 1 5

Consumers cut out and use more coupons in a weak economy than a strong one.

Consumers frequently cut coupons from the inserts in Sunday newspapers. Other consumers find coupons online or on their cell phones. Over 80 percent of diapers are purchased with coupons. In In- dia and some other countries, most of the coupons used are digital. Paper coupons are more common in the United States.

Point-of-purchase displays are in-store shelves where products are prominently displayed along with materials to market them. Often point-of-purchase displays are located near checkout stands or at the ends of aisles. The goal of the displays is to get consumers to buy a brand or product immediately. Some point-of-purchase displays include coupon machines placed next to the products.

Other sales promotions include incentives such as free items, free shipping, coupons, and sweepstakes. For example, some online merchants such as Zappos offer free shipping and free return shipping to encourage consumers to shop online. Some firms have found that the response they get to their online sales promotions is better than response they get to traditional sales promotions.

Another very popular sales promotion for consumers is a premium. A premium is something you get either for free or for a small shipping and handling charge with your proof of purchase (sales re- ceipt or part of package). Remember wanting your favorite cereal because there was a toy in the box? The toy is an example of a premium. Sometimes you might have to mail in a certain number of proofs of purchase to get a premium. The purpose of a premium is to motivate you to buy a product multiple times. What many people don’t realize is that when they pay the shipping and handling charges, they may also be paying for the premium.

262 PRINCIPLES OF MARKETING VERSION 3.0

Contests

Sales promotions that people enter or participate in order to win a prize.

Product demonstrations

A demonstration designed to show customers how a product works and answer any questions they might have.

Experiential marketing

Marketing that allows customers to physically interact with a brand using as many of their senses as possible.

loyalty programs

Sales promotions designed to get repeat business.

Rebates

A promotion whereby part of the purchase price of an offering is refunded to a customer after the customer completes a form and sends in the proof of purchase (sales receipt).

trade promotions

Sales promotions aimed at businesses.

Contests are sales promotions people enter or participate in to have a chance to win a prize. The Publisher’s Clearing House Sweepstakes and the Monopoly Game at McDonald’s are both examples of contests. The organization that conducts the sweepstakes or contest hopes you will not only enter its contest but buy some magazines (or more food) when you do.

Events are another sales promotion tool. Check out the following video about the surprise event the Fanta brand held to promote its soft drinks. Product demonstrations are also used in conjunc- tion with sales promotions. Do you need a shave? Periodically stores in the Art of Shaving chain will walk customers through the perfect shave. “When [customers] can see that shaving brush in action, the rich warm lather, the aftershave balm . . . it lends to the interactive experience,” says Cari White, a re- gional director for the Art of Shaving.[16]

Events and product demonstrations are examples of experiential marketing. Experiential marketing is marketing that that allows customers to physically interact with a brand using as many of their senses as possible (touch, smell, taste, and so on). More brick-and-mortar stores are utilizing experiential marketing to better compete with online sellers. You can’t get a shave online, after all.

Video Clip

Watch this video to see an example of experiential marketing conducted by the Fanta soft-drinks brand.

Loyalty programs are sales promotions designed to get repeat business. Loyalty programs include things such as frequent flier programs, hotel programs, and shopping cards for grocery stores, drug- stores, and restaurants. Sometimes point systems are used in conjunction with loyalty programs. After you accumulate so many miles or points, an organization might provide you with a special incentive such as a free flight, free hotel room, or free sandwich. Many loyalty programs, especially hotels and airlines, have partners to give consumers more ways to accumulate and use miles and points.

Rebates are popular with both consumers and the manufacturers that provide them. When you get a rebate, you are refunded part (or all) of the purchase price of a product back after completing a form and sending it to the manufacturer with your proof of purchase. The trick is completing the pa- perwork on time. Although different types of sales promotions work best for different organizations, rebates are very profitable for companies because many consumers forget or wait too long to send in their rebate forms. Consequently, they do not get any money back. Rebates sound great to consumers until they forget to send their forms in.

8.2 Trade Promotions In business-to-business (B2B) marketing, sales promotions are typically called trade promotions be- cause they are targeted to channel members who conduct business or “trade” with consumers. Trade promotions include trade shows, conventions, event marketing, trade allowances, training, and spe- cial incentives given to retailers to market particular products and services, such as extra money, in- store displays, and prizes.

View the video online at: http://www.youtube.com/embed/xlDqewJ9wTg?rel=0

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 263

trade show

An event in which firms in a particular industry display and demonstrate their offerings to other organizations they hope will buy them.

conventions

Meetings of groups of professionals that provide a way for sellers to show potential customers different products.

Trade shows are one of the most common types of sales promotions in B2B markets. A trade show is an event in which firms in a particular industry display and demonstrate their offerings to oth- er organizations they hope will buy them. There are typically many different trade shows in which one organization can participate. Using displays, brochures, and other materials, representatives at trade shows can identify potential customers (prospects), inform customers about new and existing products, and show them products and materials. Representatives can also get feedback from prospects about their company’s products and materials and perhaps about competitors.

Companies also gather competitive information at trade shows because they can see the products other firms are exhibiting and how they are selling them. Figure 11.16 is an example of a trade show display that showcases the products produced by the Korean electronics firm LG. Trade shows can be very successful, although the companies that participate in them need to follow-up on the leads gener- ated at the shows. Companies sometimes use webinars to showcase their products when their business customers can’t attend trade shows.

F I G U R E 1 1 . 1 6

An LG electronics display at a trade show.

Source: Wikimedia Commons.

Conventions, or meetings, with groups of professionals also provide a way for sellers to show poten- tial customers different products. For example, a medical convention might be a good opportunity to display a new type of medical device. Sales representatives and managers often attend conventions to market their products.

264 PRINCIPLES OF MARKETING VERSION 3.0

F I G U R E 1 1 . 1 7

Intuitive Surgical is the maker of the da Vinci robot, a new type of technology used to make surgeries easy to perform and less invasive. Intuitive Surgical often demonstrates the robot at surgical conventions.

sales contests

Contests designed to motivate salespeople to increase their sales of particular products.

trade allowances

Allowances (including money) that firms provide their channel partners to motivate them to promote certain products.

advertising allowance

An allowance (money) a manufacturer provides to retailers to advertise its products in local newspapers.

training

Assistance an organization offers its channel partner’s salespeople to help them understand how the organization’s products work and how consumers can be enticed to buy them.

free merchandise

A product or service a seller offers retailers in order to get them to push it toward consumers.

push money

A cash incentive a manufacturer provides its channel partners to sell particular items.

Sales contests, which are often held by manufacturers or vendors, provide incentives for salespeople to increase their sales. Often, the contests focus on selling higher-profit or slow-moving products. The sales representative with the most sales of the product wins a prize such as a free vaca- tion, company recognition, or cash.

Trade allowances give channel partners—for example, a manufacturer’s wholesalers, distribut- ors, retailers, and so forth—different incentives to push a product. One type of trade allowance is an advertising allowance (money) to advertise a seller’s products in local newspapers. An advertising al- lowance benefits both the manufacturer and the retailer. Typically, the retailer can get a lower rate than manufacturers on advertising in local outlets, saving the manufacturer money. The retailer benefits by getting an allowance from the manufacturer.

Another sales promotion that manufacturers, such as those in the tool or high tech industries, offer businesses is training to help their salespeople understand how the manufacturers’ products work and how consumers can be enticed to buy them. Many manufacturers also provide product demonstra- tions to show a channel partner’s customers how products work and answer any questions they might have. Demonstrations of new video game systems and computers are extremely popular and successful in generating sales.

Free merchandise, such as a tool, television, or other product produced by the manufacturer, can also be used to get retailers to sell products to consumers. In other words, a manufacturer of televisions might offer the manager of a retail electronics store a television to push its products. If a certain num- ber of televisions are sold, the manager gets the television. Have you ever been to an electronics store or a furniture store and felt like the salesperson was pushing one particular television or one particular mattress? Perhaps the salesperson was getting push money, or a cash incentive from the manufacturer to push a particular item. The push to sell the item might be because there is a large amount of invent- ory of it, it is being replaced by a new model, or the product is not selling well. Figure 11.18 recaps the different types of sales promotions designed for both consumers and businesses.

F I G U R E 1 1 . 1 8 Examples of Sales Promotions

8.3 Push versus Pull Strategies Businesses must also decide whether to use a push strategy or a pull strategy. Recall that a push strategy involves promoting a product to businesses (middlemen), such as wholesalers and retailers, who then

CHAPTER 11 INTEGRATED MARKETING COMMUNICATIONS AND TRADITIONAL MEDIA MARKETING 265

push the product through the channel promoting it to final consumers. Manufacturers may set up dis- plays in retail outlets for new products or provide incentives such as price discounts to the retailer so the retailer can promote or push the product to consumers.

Companies use a pull strategy when they target final consumers with promotions. In other words, a company promotes it products and services to final consumers to pull consumers into the stores or get the consumers asking for the product. If a manufacturer sends coupons to consumers or places them in newspapers, it hopes the consumers will take the coupons to stores to try buy the product. Their pull, or desire, for the product causes wholesalers and retailers to buy it to try to meet the de- mand. Many manufacturers use both a push strategy and a pull strategy, promoting their products and services to both final consumers and their trade partners (e.g., retailers and wholesalers).

K E Y T A K E A W A Y S

Companies use sales promotions to get customers to take action (make purchases) quickly. Sales promotions increase the awareness of products, help introduce new products, and often create interest in the organiza- tions that run the promotions. Coupons, contests, samples, and premiums are among the types of sales pro- motions aimed at consumers. Trade promotions, or promotions aimed at businesses, include trade shows, sales contests, trade allowances, and push money.

R E V I E W Q U E S T I O N S

1. What are the objectives of sales promotions?

2. What is a trade promotion?

3. Identify and provide an example of three sales promotion tools targeted at consumers.

4. Identify and provide an example of three sales promotion tools targeted at businesses.

5. Explain the difference between a push strategy and a pull strategy.

9. DISCUSSION QUESTIONS AND ACTIVITIES

D I S C U S S I O N Q U E S T I O N S

1. Provide an example of how an organization, such as your university, uses different media to present a consistent message using integrated marketing communications (IMC). Who is their target, what is their message, and what media should they use?

2. In your opinion, what are the advantages and disadvantages of advertising on the radio, in magazines, on television, through direct marketing, and on the Internet?

3. Explain the different types of public relations tools that a company can use to generate interest in its products.

4. What types of sponsorships are becoming more popular and why?

5. Give an example of an organization’s promotional strategy and how it gets consumers to select it, pay attention to it, and retain it as intended.

6. Give an example of the unique selling proposition for one of your favorite brands. What is your unique selling proposition?

7. Think about and provide examples of two different message strategies you’ve seen in commercials in the last year. Why do you think they were or were not effective?

8. As the manufacturer of small appliances, explain how you might plan to use both a push strategy and pull strategy.

9. What type of sales promotions do you feel are most effective for college students?

266 PRINCIPLES OF MARKETING VERSION 3.0

A C T I V I T I E S

1. Identify your three favorite and least favorite commercials and explain why you like or don’t like each one. Notice whether there are similarities in your preferences. In other words, are your favorite commercials humorous? Are your least favorite commercials annoying?

2. Write a press release about special activities your college or university is doing to help the environment or community.

3. Identify your favorite television show and explain what product placements you think would be successful. Would you change your recommended product placements if you were making recommendations for shows that appealed more to parents or grandparents?

4. Create a message strategy for a cover letter to go with your résumé.

5. Outline three message strategies that you feel would get consumers’ attention in television commercials and in print ads.

6. Create a sales promotion you think will attract a lot of students to your favorite fast-food restaurant.

7. You are applying for a job in an advertising agency. Write an ad about yourself, explaining your unique selling proposition and why they should hire you.

8. Watch television at three different times (late night, mid-day, and prime time). What types of commercials were shown at each time? Did you notice a difference in quality, products/services advertised, or creativity? Why do you think there was a variance?

9. What media do you think would be most (and least) effective for college students? Why?

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ENDNOTES

Dianna Dilworth, “FedEx Launches Fully Integrated Campaign, Featuring E-mail, Dir- ect Mail,” Direct Marketing News, January 7, 2010, http://www.dmnews.com/ fedex-launches-fully-integrated-campaign-featuring-e-mail-direct-mail/article/ 160829/.

“PQ Media: New Media Spend to Hit $160B in 2012,” MarketingVOX, March 26, 2008, http://www.marketingvox.com/ pq-media-new-media-spend-to-hit-160b-in-2012-037592.

Elizabeth Homes, “A Brand’s Dream: Music Festival Fans in Need of an Outlet,” Wall Street Journal, April 15, 2015, D1-D2, http://wsj.com.

Steven Van Yoder, “Mixing Up Your Message: Integrating Online and Offline Market- ing,” Costco Connection, October 2015, 23.

http://fortune.com/2015/08/06/super-bowl-ad-cost/

http://money.cnn.com/2016/02/08/media/super-bowl-50-ratings/

“Media Kit,” Sports Illustrated, Accessed February 6, 2016, http://simediakit.com/ property-single.xhtml?property_id=36.

Mobile Loaves & Fishes Blog, “Stubb’s Teams Up With MLF to Launch ‘Feed The World’ Tour!” May 22, 2009, http://mobileloavesandfishes.typepad.com/weblog/ 2009/05/stubbs-teams-up-with-mlf-to-launch-feed-the-world-tour-homeless.html.

“Domino’s Workers Disgusting YouTube Video: Spitting, Nose-Picking and Worse (VIDEO),” Huffington Post, Accessed February 6, 2016, http://www.huffingtonpost.com/2009/04/14/dominos-workers-dis- gustin_n_186908.html.

Laurie Burkett, “KFC: Eight-Legged Chickens Is a Lie,” Wall Street Journal, June 2, 2015, B3.

Jon Humbert, “UPS driver caught on camera kicking, throwing packages,” KOMO News, Accessed February 6, 2016, http://komonews.com/news/local/ups-driver- caught-on-camera-kicking-throwing-packages.

Ballparks.com, Staples Center. Accessed February 8, 2016 at ht- tp://basketball.ballparks.com/NBA/LosAngelesLakers/newindex.htm.

Jeff Jacobs, Pallav Jain, and Kushan Surana, “Is sports sponsorship worth it?” McKinsey & Company, June 2014, http://www.mckinsey.com/insights/marketing_sales/ is_sports_sponsorship_worth_it.

“Product Placement in Movies: 5 Blatantly Obvious Examples,” New York Film Academy, April 2, 2016; http://nyfa.edu.

Suzanne Vranica and Amol Sharma, “‘Mad Men’ Dream a Dream for Coke” Wall Street Journal, May 18, 2015, http://wsj.com.

Joyce Smith, “You Can’t Try This at Home: Stores Strike Back,” Kansas City Star, Decem- ber 8, 2012, http://www.kansascity.com.

268 PRINCIPLES OF MARKETING VERSION 3.0

http://www.dmnews.com/fedex-launches-fully-integrated-campaign-featuring-e-mail-direct-mail/article/160829/

http://www.marketingvox.com/pq-media-new-media-spend-to-hit-160b-in-2012-037592

http://simediakit.com/property-single.xhtml?property_id=36

Chapter 11: Integrated Marketing Communications and Traditional Media Marketing

Integrated Marketing Communications (IMC)

Changing Media

The Promotion (Communication) Mix
Factors Influencing the Promotion Mix, Communication Process, and Message Problems

Factors Influencing the Promotion Mix
The Communication Process
Message Problems

Message Strategies

Utilizing a Product’s Unique Selling Proposition (USP)
The Organization’s Promotion Objectives
Message Characteristics

The Promotion Budget
Advertising and Direct Marketing

Advertising
Direct Marketing

Public Relations, Sponsorships, and Product Placements

Public Relations

Press Releases
Online Reputation Management

Sponsorships
Product Placements

Sales Promotions

Consumer Sales Promotions
Trade Promotions
Push versus Pull Strategies

Discussion Questions and Activities
Endnotes