Entrepreneurship and small business management chapter 09

Entrepreneurship and Small Business Management Chapter Integrated Marketing Communications Ch Performance Objectives  Define integrated marketing communications and its components  Conduct promotional planning and budgeting  Understand advertising and advertising management  Identify and evaluate media Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 Ch 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 Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 What Is Integrated Marketing? Promotional communication   strategies combined for maximum effectiveness Components may include:       Advertising Promotions Personal selling Sponsorships Public relations Types of specialized marketing such as database, direct, alternative, and e-active Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 Five Steps of Promotions Opportunity Analysis Conduct a communications market analysis Establish communications objectives Create a communications budget Prepare promotional strategies Match tactics with strategies Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 Media Planning Determine your media strategy: identify which media types will be used Create a media schedule: spell out specific media vehicles, volume of use, and timing   Consider critical measurement factors Compare media costs Entrepreneurship and Small Business Management, 1/e 10 © 2012 Pearson Education, Upper Saddle River, NJ 07458 Media Measurement Factors  Reach—number of target audience members exposed to the advertisement during a given time period  Frequency—how often your target audience will be exposed to the advertisement during a given period Target audience: people, businesses, or households Entrepreneurship and Small Business Management, 1/e 11 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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) Entrepreneurship and Small Business Management, 1/e 12 © 2012 Pearson Education, Upper Saddle River, NJ 07458 Media Categories  Broadcast media (television and radio)  Print media    Newspapers Magazines Directories  Outdoor advertising media (billboards)  Internet Entrepreneurship and Small Business Management, 1/e 13 © 2012 Pearson Education, Upper Saddle River, NJ 07458 Calculating Media Costs  Cost Per Thousand—cost of reaching 1,000 members of the media vehicle’s audience (not the purchaser’s) CPM = (Cost of media buy ($) / Total audience) x 1,000  Cost Per Rating Point—measure of the efficiency of a media vehicle to a company’s target market CPRP = Cost of media buy ($) / Vehicle’s rating Entrepreneurship and Small Business Management, 1/e 14 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 15 © 2012 Pearson Education, Upper Saddle River, NJ 07458 Sales Promotional Tools Consumer  Coupons  Contests and sweepstakes  Refunds and rebates  Sampling  Premiums  Tie-ins  Bonus packs  Mall carts or kiosks Entrepreneurship and Small Business Management, 1/e Business-to-Business       16 Incentives Contests Refunds and rebates Sampling Allowances Trade show exhibits © 2012 Pearson Education, Upper Saddle River, NJ 07458 Alternative Marketing Options  Guerilla marketing—original, unconventional, and inexpensive small-business strategies  Buzz marketing—another name for word-of-mouth marketing   Organic (occurs naturally) Amplified (jump-started by the business) Entrepreneurship and Small Business Management, 1/e 17 © 2012 Pearson Education, Upper Saddle River, NJ 07458 Alternative Marketing Options Product placement/branded entertainment (continued)    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.) Entrepreneurship and Small Business Management, 1/e 18 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 19 © 2012 Pearson Education, Upper Saddle River, NJ 07458 Marketing Communications Driven by Databases  E-mail marketing      Direct mail Catalogs Coupons Infomercials/direct-response commercials Telemarketing Entrepreneurship and Small Business Management, 1/e 20 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 21 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 22 © 2012 Pearson Education, Upper Saddle River, NJ 07458 Ways to Generate Publicity  Press release    An announcement sent to the media States the “who, what, when, where, and why” of the story Pitch letter   Correspondence designed to explain the story behind the press release Tells why the story would be interesting to the media outlet’s audience Entrepreneurship and Small Business Management, 1/e 23 © 2012 Pearson Education, Upper Saddle River, NJ 07458 Build Public Relations Through:  Special events (contests, parties, unusual events, etc.)  Sponsorships  Networking (exchanging information and contacts)  Public speaking Entrepreneurship and Small Business Management, 1/e 24 © 2012 Pearson Education, Upper Saddle River, NJ 07458  ... communications and its components  Conduct promotional planning and budgeting  Understand advertising and advertising management  Identify and evaluate media Entrepreneurship and Small Business Management, ...  Contests and sweepstakes  Refunds and rebates  Sampling  Premiums  Tie-ins  Bonus packs  Mall carts or kiosks Entrepreneurship and Small Business Management, 1/e Business- to -Business ...  Analyze database and direct-response marketing opportunities  Incorporate e-active marketing  Describe publicity and public relations Entrepreneurship and Small Business Management, 1/e ©