Lecture1_Notes.pdf

Advertising: Principles and Practice LECTURE 1 (Semester 1, 2023-24) Chapter 1 - An Introduction to Integrated Marketing Communications Textbook: Advertising and Promotion: An Integrated Marketing Communications Perspective, 12th Edition (2021). by George E. Belch, and Michael A. Belch; Publisher...

Advertising: Principles and Practice LECTURE 1 (Semester 1, 2023-24) Chapter 1 - An Introduction to Integrated Marketing Communications Textbook: Advertising and Promotion: An Integrated Marketing Communications Perspective, 12th Edition (2021). by George E. Belch, and Michael A. Belch; Publisher: McGraw-Hill - Chapter 1: pp 8-37 What is Marketing? ◼ [For profit-making business:] Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. (according to The Chartered Institute of Marketing) 3 Marketing Mix Marketing Mix (4P) 要知道現時的趨勢 客⼈怎樣想 eg health…low fat package Product make sure the product quality can satisfy custumer requirements Price Place (Distribution) This course focuses on this element only: MARKETING COMMUNICATIONS PROMOTION (Marketing Communications) 4 Some questions for you to think about: ◼ How do brands communicate messages to you in your everyday life? List the channels, tools or activities that brands might use to communicate with you. 5 Some questions for you to think about: ◼ You should have seen and heard a lot of ads /brand messages yesterday. How many of these ads/brand messages can you recall? Relevant Memorable High frequency Intesting/Creative 6 Some questions for you to think about: ◼ Why do you notice only some ads and ignore many others? Why can you recall only few ads/brand messages, but not the others? 7 Everyone sees and hears a lot of messages from different brands everyday. Everyone has only limited memory and attention span Brands have to compete for the attention of the audience. It is important for advertisers to: ◼ choose the right tools and channels to reach the right people ◼ draw the attention of their audience ◼ make the marketing communication messages attractive and convincing ◼ reinforce the messages in the mind of the 加強 target audience Integrated Marketing Communications (IMC) approach 9 Traditional Approach to Marketing Communications Point of purchase Special events Public Relations/ Publicity Mobile Media Advertising Direct marketing Sales promotion Personal selling Social media marketing Digital/ Internet marketing • rely primarily on mass-media advertising (TV, Print, Outdoor) •plan and manage various promotional tools as separate practices – different budgets, different views of the market, different goals and objectives Integrated Marketing Communications (IMC) （整合行銷傳播）Approach •coordinate the Sales promotion Personal Selling Point of purchase Mobile Digital/ Internet marketing Media Advertising Direct marketing Social media marketing Public Relations/ Publicity Special events use of a VARIETY of promotional tools (rather than relying on media advertising) •the messages conveyed by each of the promotional tools should be HARMONIZED – target audience should perceive a CONSISTENT set of core messages / image * These promotional tools are some examples only and are not applicable in all cases. There are also many other choices of promotional tools. Integrated Marketing Communications (IMC): “Consistent Image” and “Big Picture” ⼀致的形象 ◼ ◼ ◼ IMC is a planning process designed to assure that all brand contacts received by a customer or prospect (潛在顧客) for a product, service, or A contact organization are relevant to that person and point (接觸點) consistent over time. (by American Marketing refers to each Association) and every opportunity A “big picture” approach – develop a total the customer marketing communications strategy that recognizes how all of a firm’s marketing has to see or activities communicate with its customers. hear about the brand. IMC helps company identify the most appropriate and effective methods for communicating and building relationships with customers and other stakeholders – the goal is to generate BOTH short-term financial 12 returns and build long-term brand value. Examples of IMC Audience Contact Tools Broadcast media (TV/radio) Print media (newspapers, magazines) Public relations/ publicity Outdoor media Digital/ Internet/ Social media/ Mobile Direct marketing Target Audience Personal selling Point-ofpurchase materials Sales Promotion Content Marketing Events and sponsorship Product placements Case Study: foodpanda – “More than Just Food 點只搵食咁簡單” Read and watch the Case Study: http://kamfan.admango.com/kamfanarchive/Detail.aspx?archive_id=3935 Marketers coordinate the various elements of their marketing communications programs, communicating a common theme. ➢ communicating consistent core message and image, yet using different ideas in various platforms to attract and build relationships with customers and other stakeholders. Reasons for the Growing Importance of IMC ◼ Marketers understand the value of strategically integrating the various communications functions rather than having them operate separately – ➢ avoid duplication of resources ➢ take advantage of synergy (協同作用) (the combined effect is greater than the sum of individual effects) among promotional tools – each element of the promotional mix complements (互補) and reinforces (加強) the others for greater effects 15 Reasons for the Growing Importance of IMC ◼ The rapid growth of the Internet and social media has been changing the nature of how companies do business and the ways they communicate with consumers ➢ A brand can no longer use just one channel (mass media) to reach and convince all target audiences – it should use a variety of channels (various types of traditional media and digital/social media) to reach them effectively and reinforce the consistent branding message. ➢ Advertisers can use the Internet in a more targeted way than they can use traditional media. They can run their ads on websites or social media sites that are narrowly targeted to consumer interests. Reasons for the Growing Importance of IMC ◼ Many consumers nowadays are less responsive to traditional advertising as they are tired of being bombarded with sales messages. ➢ Many people don’t believe in media ads and want to avoid advertising messages. ➢ To tackle this “ad avoidance” issue, marketers have to bring their messages to these people in various ways Brands may use interactive activities, interesting/useful content to communicate their messages, rather than simply using traditional forms of advertising. (Details will be discussed in the coming lectures.) The Role of IMC in Branding IMC plays a major role in the process of developing and sustaining brand identity •Brand Identity is about what consumers think and feel about a brand over a period of time - it is the sum of all points of contact that consumers have with the brand. •With the right combination of communication tools and techniques, IMC helps to build and maintain brand identity - to have favorable, strong, and unique associations (聯想) in the mind of the consumers •Consumers today demand more than just product/service quality or performance, as many view brands as a form of self-expression. 18 Summary: Key Concepts of IMC Multiple tools 多元傳播工具及渠道 Multiple channels Integration 整合 Cross-platform 跨平台 Consistent Core Message/ Image – with a common theme 一致/連貫的核心訊息/形象 – 有同一主題 The Promotional Mix: The Tools for IMC ◼ Promotion: one of the “4P”s; the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods or services or to promote an idea ◼ Promotional Mix: basic tools used to accomplish an organization’s communication objectives 20 The Promotional Mix includes: Advertising Advertising Direct Marketing Direct Marketing Digital/Internet Interactive/ Internet Marketing Marketing 6 Basic Elements of the Promotional Mix Sales Promotion Sales Promotion Publicity/Public Publicity/Public Relations Relations Personal Selling Brief Introduction – Advertising; Sales Promotion Advertising Paid Use of media ◼ any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor Sales Promotion ◼ marketing activities that provide extra value or incentive to the sales force, distributors, or the ultimate consumer and can stimulate immediate sales. ** Details about these elements of the promotional mix will be discussed in the coming lectures. Local IMC case: “foodpanda – More than Just Food” 22 Brief Introduction – Publicity/Public Relations ◼ Publicity: nonpersonal communications regarding an organization, product, service, or idea not directly paid for by the company (usually comes in the form of a news story, interview, editorial, announcement, etc.) ◼ Public Relations: a management function; it has a broader objective than publicity, as its purpose is to establish and maintain positive image of the company among its various publics ** Details about these elements of the promotional mix 23 will be discussed in the coming lectures. Brief Introduction – Direct Marketing; Digital/Internet Marketing ◼ Direct Marketing: an organization communicates directly with customers to generate a response and/or transaction (usually makes use of databases containing addresses and/or phone numbers of present and prospective customers) ◼ Digital/Internet Marketing: communication through the Internet and/or other digital/interactive media (including social media and mobile devices) ** Details about these elements of the promotional mix will be discussed in the coming lectures. 24 Brief Introduction – Personal Selling Personal Selling ◼ person-to-person communication in which the seller attempts to assist and/or persuade prospective buyers to purchase the company’s product or service or to act on an idea ◼ involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales * While personal selling is a part of the promotional mix, it will not be covered in this course because it is not a direct part of the IMC program in most companies. Also, personal selling is managed separately in most organizations. However, you may note that various IMC tools can be coordinated with personal-selling program. 25 The IMC Planning Process ◼ ◼ Integrated marketing communications (IMC) management involves the process of planning, executing, evaluating, and controlling the use of the various promotional-mix elements (promotional tools) to effectively communicate with target audiences The marketer must consider: ➢ ➢ ➢ WHICH promotional tools to use HOW to integrate them to achieve marketing and communication objectives HOW to distribute the total marketing communications budget across the various promotional-mix elements 26 An IMC Planning Model – FOR REFERENCE ONLY (Textbook p.32) First Step of the IMC Planning Process Promotional Program Situation Analysis Internal Analysis 公司可以⾃⼰控制 可以直接影響到 (Strengths/Weaknesses) External Analysis (Opportunities/Threats) Assessment of Firm’s Promotional Organization and Capabilities Customer Analysis Review of Firm’s Previous Promotional Programs & Results Competitive Analysis Assessment of Firm or Brand Image and Implications for Promotion Environmental Analysis -Trends or developments that might affect the promotional program (e.g. political, economic, social/cultural and technological trends) Assessment of Relative Strengths and Weaknesses of Product or Service *Please refer to the p.35 of the textbook for details. Summary: Key Concepts Learnt ✓ ✓ ✓ ✓ ✓ ✓ ✓ Marketing and Marketing Mix Integrated Marketing Communications (IMC) – concepts; characteristics; why important; reasons for its growing importance IMC vs. Traditional Approach to Marketing Communications IMC and Branding The Promotional Mix – 6 basic elements IMC Planning Process First Step of the IMC Planning Process: Promotional Program Situation Analysis (Internal and External Analysis) 29