Entrepreneurship and small business management chapter 09

Entrepreneurship and Small Business Management Chapter 9 Integrated Marketing Communications... 9 Performance Objectives Define integrated marketing communications and its components..

Entrepreneurship and Small

Business Management

Chapter 9

Integrated Marketing Communications

Ch 9 Performance Objectives

 Define integrated marketing

communications and its components.

 Conduct promotional planning and

Ch 9 Performance Objectives

(continued)

 Discuss sales promotion.

 Explore alternative marketing options.

 Analyze database and direct-response

marketing opportunities.

 Incorporate e-active marketing.

 Describe publicity and public relations.

What Is Integrated Marketing?

 Promotional communication strategies

combined for maximum effectiveness

 Components may include:

Promotional Planning

 Determine the best ways to effectively

communicate your brand and unique

selling proposition to your customers.

 Involve all parts of your organization.

 Promotions opportunity analysis—

process that includes researching target

markets and the promotional strategies

to reach them

Five Steps of Promotions

Opportunity Analysis

1 Conduct a communications market

analysis.

2 Establish communications objectives.

3 Create a communications budget.

4 Prepare promotional strategies.

5 Match tactics with strategies.

Common Examples of

Communications Objectives

 Develop brand awareness and image.

 Provide information.

 Change customer beliefs or attitudes.

 Encourage repeat purchases.

 Build customer traffic.

 Increase market share.

 Reinforce purchasing decisions.

Ways to Determine Your

Promotional Budget

 Percentage of sales—a percentage of

the prior year’s sales or anticipated sales

 Competitive spending—budget similar

to competition’s level of spending

 Excess funds—amount “left over” after

other expenses are calculated

 Objective and task—based on what is

needed to reach promotional objectives

Types of Advertising

 Institutional advertising—provides

information about an organization;

intended to create awareness about the

firm and enhance its image

 Product advertising—designed to

create awareness, interest, purchasing

behavior, and post-purchase satisfaction

for specific products and services

Media Planning

1 Determine your media strategy:

identify which media types will be used

2 Create a media schedule: spell out

specific media vehicles, volume of use, and timing

 Consider critical measurement factors.

 Compare media costs.

Media Measurement Factors

members exposed to the advertisement during a given time period

audience will be exposed to the

advertisement during a given period

Target audience: people, businesses, or

households

Media Measurement Factors

(continued)

 Opportunities to see (OTS)—

cumulative number of exposures in a

given time period (usually four weeks)

 Gross rating points (GRP)—

 Measures the intensity of a media plan

 GRP = Media vehicle’s rating (reach) x OTS

(number of insertions)

Calculating Media Costs

1,000 members of the media vehicle’s

audience (not the purchaser’s)

CPM = (Cost of media buy ($) / Total audience) x 1,000

the efficiency of a media vehicle to a

company’s target market

CPRP = Cost of media buy ($) / Vehicle’s rating

Marketing Materials

 Examples: stationery, business cards,

posters, flyers, brochures, newsletters

 Should reinforce competitive advantage

 Serve three main functions:

 Organize your thinking

 Teach others in your company about the

business

 Sell your product/service in marketplace

Sales Promotional Tools

Alternative Marketing Options

 Organic (occurs naturally)

 Amplified (jump-started by the business)

Alternative Marketing Options

(continued)

 Product placement/branded entertainment

 Lifestyle marketing

 In-store marketing

 Samples or demonstrations (edutainment)

 Point-of-purchase and shelf placement

 Ads in/on other media venues (theaters,

bus stops, clothing, shopping bags, etc.)

Database Marketing

 Focus on building customer loyalty.

 Design and follow a data-collection plan.

 Code and analyze the collected data.

 Calculate lifetime value.

 Perform a RFM analysis.

 Use data mining to extract information.

 Create highly-targeted, customized

communications based on the database.

What Is E-active Marketing?

 Combination of e-commerce and

interactive marketing

 E-commerce example: electronic store

 Interactive marketing—uses Internet

to collect information from consumers

and communicate with them

E-active Marketing Methods

 Online advertising, such as banner ads

 Brand spiraling

 Blogs

 Online social networks (FaceBook,

MySpace, BlackPlanet, etc.)

 Consumer-generated advertising/media

 Viral marketing campaigns

Ways to Generate Publicity

 Press release

 An announcement sent to the media

 States the “who, what, when, where, and why” of the story

Build Public Relations Through:

 Special events (contests, parties,

unusual events, etc.)

 Sponsorships

 Networking (exchanging information

and contacts)

 Public speaking