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Part Five Developing the Integrated Marketing Communications Program
Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
people using their computers for digital photography,
CD-burning, instant messaging, and movie-making.
The ads play off the famous tagline by showing people
burning CDs and then cutting to the copy line “Intel
Inside your music” or by showing how a digital photo
can be used followed by the line “Intel Inside your photos.”
The commercials end with the line “Can a better
computer really change your life? Yes.”
In its early stages the Intel Inside program encountered
criticism, as many advertising and computer
marketing executives were skeptical about Intel’s abil-
16. Sales Promotion © The McGraw−Hill
Companies, 2003
ity to differentiate its chips. The head of one agency
noted: “Most people who buy computers don’t even
know that chip is there. They care about the performance
of the computer. It really doesn’t matter what
the chip is.” Well, some may still not know exactly what
a microprocessor chip does, but apparently it does
matter if there is an “Intel Inside.”
Sources:Tobi Elkin, “Intel Goes for a New Overall Branding Look,”
Advertising Age, Sept. 1, 2002, pp. 3, 43. Tobi Elkin, “Co-op
Crossroads,” Advertising Age, Nov. 15, 1999, pp. 1, 24, 26.
requirements the ad must meet to qualify for co-op reimbursement, such as size, use of
trademarks, content, and format. Verification that the ad was run is also required, in the
form of a tearsheet (print) or an affidavit from the radio or TV station (broadcast) and
an invoice.
As with other types of trade promotions, manufacturers have been increasing their
cooperative advertising expenditures in recent years. Some companies have been moving
money out of national advertising into cooperative advertising because they believe
they can have greater impact with ad campaigns in local markets. There is also a trend
toward more cooperative advertising programs initiated by retailers, which approach
manufacturers with catalogs, promotional events they are planning, or advertising programs
they have developed in conjunction with local media and ask them to pay a percentage
of the cost. Manufacturers often go along with these requests, particularly
when the retailer is large and powerful. 64
Coordinating Sales Promotion
and Advertising
Those involved in the promotional process must
recognize that sales promotion techniques usually
work best in conjunction with advertising and
that the effectiveness of an ad campaign can be
enhanced by consumer-oriented sales promotion
efforts. Rather than separate activities competing for a firm’s promotional budget,
advertising and sales promotion should be viewed as complementary tools. When properly
planned and executed to work together, advertising and sales promotion can have a
synergistic effect much greater than that of either promotional mix element alone.
Proper coordination of advertising and sales promotion is essential for the firm to
take advantage of the opportunities offered by each tool and get the most out of its promotional
budget. Successful integration of advertising and sales promotion requires
decisions concerning not only the allocation of the budget to each area but also the
coordination of the ad and sales promotion themes, the timing of the various promotional
activities, and the target audience reached.
Budget Allocation
While many companies are spending more money on sales promotion than on media
advertising, it is difficult to say just what percentage of a firm’s overall promotional
budget should be allocated to advertising versus consumer- and trade-oriented promotions.
This allocation depends on a number of factors, including the specific promotional
objectives of the campaign, the market and competitive situation, and the
brand’s stage in its life cycle.
Consider, for example, how allocation of the promotional budget may vary according
to a brand’s stage in the product life cycle. In the introductory stage, a large
amount of the budget may be allocated to sales promotion techniques such as sampling
and couponing to induce trial. In the growth stage, however, promotional dollars
may be used primarily for advertising to stress brand differences and keep the brand
name in consumers’ minds.