priced it, made our supply chain management decisions

let's continue on with the integrated marketing communications

aspect of market value creation. In terms of marketing communications,

one of the decisions we'll have to make is

what tools we will use to communicate

the value of our product, price, and supply chain

management activities to the customer. so remember

last lesson we defined

integrated marketing communications as selecting

and strategically using appropriate

marketing communications tools to create one

consistent message across multiple channels

to ensure maximum impact on the firm's current and potential customers

based upon our communication objectives.

So, what are those tools

we can use for marketing communications.

well we're going to refer to these as the marketing communications mix

or the promotion mix. We have basically

five tools that we can use - advertising,

sales promotion, public relations,

personal selling, and social media.

I want to emphasize that when you say

sales promotion, you have to refer to

sales promotion jointly using both words

because if you just refer to promotion,

some people equate that to all methods

of the marketing communications mix; saying that promotion

would include advertising, social media,

and personal selling. so, sales promotion

is part of promotion, and if you are

referring to sales promotion, you have to use

those two words together. so, let's look at these

in a little bit greater detail. what do I mean by

advertising? first of all, advertising

is paid for. if it's free advertising,

we would refer to that as publicity.

so for it to be advertising, it's paid for.

It's non-personal, meaning

that everyone basically gets the same advertising messages.

now, indirect mail or magazine subscriptions,

they can actually do things to put your name

in the ad to make it appear more personal, but actually

your all getting a mass, customized version; so it's not

really personal communication. so advertising

is paid, it's non-personal, and it uses a mass medium

like TV, radio,s,

magazines, newspaper or outdoor billboards or mass transit placement.

keep in mind, that advertising has

both high placement costs; and when we talk about placement costs,

we're referring to that three million dollar cost for the time you buy

in a 30-second Super Bowl commercial;

or the hundreds of thousands dollars you spend to buy one

full-page color ad in a major magazine

like Sports Illustrated, or

the cost of buying an ad in your small community

newspaper. production costs refer to the cost of

actually shooting that commercial or

making that advertisement that gets placed.

so advertising has both high production placement costs,

and also has relatively slow feedback.

people you don't get out immediately and go purchase your product.

it's very difficult to measure the effectiveness, although we know

if your product is out of sight - in other words, if people

aren't aware of it, they can't buy it.

Advertising does offer the ability to have a consistent message;

so you don't have to worry about an individual delivering the message

it's very consistent time after time. let's look at some key terms

related to advertising. the first key term

is that of reach and reach is the total

percentage of the target audience who are exposed to your commercial

at least once throughout a campaign.

and this represents unduplicated

audience exposure. so, if I saw

your commercial on two different television programs

the unduplicated reach would be one -

I would still be only one person seeing

it on two different programs. so it's

very important to have a large enough reach

to generate a large enough potential base

of customers in your target market

who are aware of and understand the features and benefit of

your product. so reach is the number of people

who see your advertising message.

frequency describes the number of times that a person you

reach has the opportunity to see it

over the campaign period. generally, people have to see your

advertising message multiple times for

them to remember it - for it to be effective.

even here as we talk about different concepts in marketing

you really have to hear about them a number of times

before they really began to make sense. and so, if your product is a product in

introduction, they may have to hear

about your product many more times

than if your product is a product in mature phase

of the product life cycle.

additionally, effective frequency

refers to the minimum number of times

people must be exposed to your message

in order for it to positively impact

buying behavior. And generally, we would say

that the minimum minimum effective frequency would have to be at

least three-times. You know if

you don't hear something least three times

or are exposed to it in least three different ways,

generally speaking it's not going to be effective.

so you can begin to see here if you have unlimited

advertising budget, and you have to reach a certain number

people and you have to reach them an effective number of

frequency times, there's some trade offs between

reaching more people and reaching them

more often. another important term in

advertising is that of share.

and share is the viewing that

one channel or one program generally

referred to share with television or radio audiences.

so it's the share of that

one program for a particular time period.

so what we would do, we would calculate this by

dividing that channel's average

audience during that time period by

the average audience of all channels - in other words,

all people using television during that

channel to calculate share. so people that have higher

viewership during a time period have a higher share

and therefore can charge more for their advertising

during that time period. that's why people are willing to pay

so much for a Super Bowl commercial

because you - the Super Bowl has such

a large share and such a large reach -

but if you can only advertise once during the Super Bowl

your total promotion budget in terms of just

placement cost is three million dollars - the

Super Bowl is probably not effective for you

because you're not going to have an effective frequency.

people aren't going to be able to hear your message often enough.

so one way - one tool in your

marketing communications toolbox

is paid non-personal

communication using a mass media

and that is what we would call advertising.

another tool in your

marketing communications toolbox is personal selling.

and personal selling generally refers to

two-way communication where two people are talking to each other.

it's usually face-to-face, although

there are many new technologies emerging

with the internet, chat rooms. where you can

visit a website and chat with a sales representative.

usually those are more inside customer service

sales representatives than they are

are more traditional face-to-face personal selling.

personal selling is very expensive

because it's one person talking to

one person but it also provides

immediate feedback - you can see immediately

what the customer's response is

to your presentation and you can tweak your presentation

based upon that. generally, personal selling

involves a process of prospecting; in other words

finding people within your target audience

that you can then approach

and you have to decide how you want to approach them

in a creative way that will generate

interest and meet their needs. And, when you approach them,

what you have to first do is to find out their needs

and show - identify their needs

for which your product can provide a solution

that you can address when you present your product

and address any resistance to your product.

You would then close your sales presentation

by asking them to buy and provide any

necessary follow-up so that you make sure

that the product you have delivered to that customer

meets their needs and they have a satisfactory response

to generate repeat business.

so it's very important to know the benefits of your product

from the customer's perspective because personal selling is

is all about helping customers

to see how your product can meet their needs

versus trying to get them to buy your product.

another tool in your integrated marketing communications

toolbox besides advertising

and two-way communication through personal selling

is what we would call sales promotion.

when we use those two terms together sales promotion

refers to special dues

or value I am

to get people to want to buy your product

now and sometimes you might notifying them

national Center oranges through persons

some or through akers

some examples sales promotions

are contest which are based upon

skill or sweepstakes which are based

punch or gains or people well

print pay with your brand to generate additional

interest there also frequent user

or hula hoop were people who buy

hit incent our reforms

further frequency their use are visiting

are purchasing your particular brain

fun read a free sample

I'm flying everything also allow keep

people to it try your problem this is the

Ashley M or in the introduction paid for the product lifecycle

premium sometimes you might give away

rei product or seen

or misleading product with the purchase of another

sell for example you I to you I'll

conditioner on Shia

purchased or you might hidden free cut when you buy a particular shake

me Tom point-of-purchase displays you might see

and should come through retail special displays

sometimes card warner said within the hi all

2 per mile particular haha

our product placement here you might

the particular brands placed in

television show whose our movie

I am being used who are very similar to

target market and again kitsch

your product additional exposure

am so sales promotion is another tool

in addition to personal selling and 120

in your marketing communication tool

another form %uh marketing communication

is public relations and we want to find

Lee as managing the reputation

up your brand were you were organization

the Public Relations Society of America defines

our public relations as eat me management function

devaluing public into

and identifies policies and procedures

an organization with public entrance

and cleaned XQ

grams action to earned public

Upton that brain or sanction

so some common PR tools might be

news releases or press conference in

to obtain hapless City coverage

about our communication about your product sir

in the media for which you do not directly

hey creating annual report

hanging specially all all sorts of things

heat good just only good publicity

or public relations for your program