MKT 337

Promotional
Management

Chapter 1
 Chapter 1
An Introduction to
Integrated
Marketing
Communications
 Topics of the
Lecture
1. Rapidly changing media environment
2. The Growth of Advertising and Promotion
3. The Role of Marketing
4. The Idea of Value and Marketing mix
5. Growing Importance of IMC
6. The Promotional Mix
7. IMC Audience Contact Tools
8. Touch Points: Control vs. Impact
Evolution of Advertising

960–1279

Bronze plate for printing

an advertisement for the
Liu family needle shop
at Jinan, Song Dynasty
China.
Evolution of Advertising

First
published
on April
24, 1704,

The first newspaper advertisement, an

announcement seeking a buyer for an
Oyster Bay, Long Island, estate, is
published in the Boston News-Letter.
Evolution of Advertising

1835

First Billboard
Appear
Evolution of Advertising

1890

Does the Logo look

Familiar? 
Evolution of Advertising

October
20, 1930

The first series

considered to be a
"soap opera" was
Painted Dreams, which
debuted on October
20, 1930 on Chicago
radio station WGN.
Evolution of Advertising

July 1,
1941

The first television commercial

premiered during a baseball
game between the Brooklyn
Dodgers and Philadelphia
Phillies. It was purchased by the
Bulova company to promote
their clocks with the phrase,
“America Runs on Bulova
Time.” Bulova paid $9 for the
world’s first TV commercial spot
Evolution of Advertising

111-
115M+
viewers
 Rapidly Changing Media
Environment

Mass media losing viewers, readers, listeners

Digital media targets narrow audience

Consumers not content to be passive

message recipients

Information now obtained from a myriad of

sources
The Growth of Advertising and
Promotion

INTEGRAL PART OF SOCIAL AND

ECONOMICSrand
/b e
- Carefully
Ad sprepared messages delivered
ur
ly po targeted audiences
to carefully
i
Da Ex increase between 1980 and 2010
- Six-fold

W MARKETING CHANNELS
- Internet ads (banner ads, videos, webisodes)
- Social media
- Mobile marketing
Rapidly Changing Media
Environment
 The Role of Marketing

Advertising & Nonprofit

Promotion Organizations
Inform customers of Solicit donations
a product or service Offer intangible
Convince them of its social and
ability to satisfy their psychological
wants or needs satisfactions
Help develop and
sustain relationships
What is Marketing?

THE ACTIVITY, SET OF INSTITUTIONS,

AND PROCESSES FOR…

CREATING, COMMUNICATING,
DELIVERING, AND EXCHANGING
OFFERINGS THAT HAVE…

VALUE FOR CUSTOMERS, CLIENTS,

PARTNERS, AND SOCIETY AT LARGE
Value & Marketing Mix

CUSTOMER’S PERCEPTION
OF ALL THE BENEFITS OF A
PRODUCT OR SERVICE
Weighed against costs of acquiring
and consuming it

BENEFITS CAN BE…

• Functional
• Experiential
• Psychological
Marketing Mix

THE FOUR PS
Product
Price
Place
Promotion
 The Promotion
Mix
Advertising Sales Promotion

Promotio Interactive
n MIX Marketing
Public
Personal
Relations
Selling
 The Promotion
Mix
Advertising
Any paid form of non-personal
presentation and promotion of ideas,
goods, or services by an identified
sponsor. Can reach masses of
geographically dispersed buyers
Newspape Broadcast
Magazine Cable TV
rs TV

Celebrity
Radio Billboards Internet Endorsem
ent
 Sales promotion

• Short-term incentives to
encourage the purchase or sale
of a product or service
 Major Sales Promotion tools

Samples Coupons Cash refunds Price packs

Advertising
Premiums specialties(e.g. Point-of-
e.g. Demonstration
purchase
McDonalds s
free gifts) displays
Happy meal

Sweepstakes
Contests Games
(e.g. lottery)
 Sales Promotion
Samples offer a trial amount of a product
Coupons are certificates that give buyers a saving when
they purchase specified products
Cash refunds are similar to coupons except that the price
reduction occurs after the purchase
Price packs offer consumers savings off the regular price
of a product
 Sales Promotion
Premiums are goods offered either for free or at a low
price
Advertising specialties are useful articles imprinted with
the advertiser’s name, logo, or message that are given
as gifts to consumers
Point-of-purchase promotions include displays and
demonstrations that take place at the point of sales
 Sales Promotion
Contests, sweepstakes, and games give consumers the chance to
win something—such as cash, trips, or goods—by luck or through
extra effort
• Contests require an entry by a consumer
• Sweepstakes require consumers to submit their names for a drawing
• Games present consumers with something that may or may not help them
win a prize
• Event marketing
 The Promotion
Mix
Prospecti Approach Presentin
Personal Selling ng ing g
Personal presentation by
the firm’s sales force for
the purpose of making Handling
Following
sales and building Closing Objection
customer relationships UP
s
Public News and
Corporate Buzz
Relations Briefing
Media
Marketing
Exposure
Building good relations with the
company’s various publics by
obtaining favorable publicity,
building up a good corporate Viral
image, and handling or heading
off unfavorable rumors, stories, Marketing
and events
 The Promotion
Mix
Direct Marketing
Direct connections with carefully targeted
individual consumers to both obtain an
immediate response and cultivate lasting
customer relationships—the use of
telephone, mail, fax, e-mail, the Internet,
and other tools to communicate directly
with specific consumers
 Advertising
Classifications
National
National

Retail
Retail // Local
Local

Primary
Primary // Selective
Selective Demand
Demand
Consumers

Business-to-Business
Business-to-Business

Professional
Professional

Trade
Trade
Organizations
 Interactive
Marketing
 Interactive media
 Internet
 Kiosks
 Cell phones
 Other mobile devices
 Digital Marketing
Digital/Internet
Interactive media Marketing
• Allow users to participate in and modify the form and content
of the information they receive in real time

Social media
• Online means of communication and interactions used to
create, share, and exchange content

Mobile marketing
• Messages delivered are specific to a consumer’s location or
consumption situation 29
 Contemporary IMC Approach
Sales Direct
Packaging promotion response

Mass
Point of media
purchase advertising
Public
relations
Publicity

Interactive
marketing Direct
Special
marketing
events
 Growing Importance of
IMC
Value of IMC
• Avoids duplication of marketing efforts
• Synergy among promotional tools
• More efficient and effective marketing

Rapidly changing environment

• Consumer behavior
• Technology
• Media consumption behavior
• Proliferation of media
IMC Audience Contact
Tools
IMC example: Apple
Touch-Points: Control Vs.
Impact
IMC
Communicat
ion Planning
Model
Any
questions /
concerns?