Integrated Marketing Communication

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Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14

1

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CHAPTER

14

Integrated Marketing Communications

Prepared byDeborah Baker

Texas Christian University

Introduction to MarketingMcDaniel, Lamb, Hair

9

2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14

Learning Outcomes

Discuss the role of promotion in the marketing mix

Discuss the elements of the promotional mix

Describe the communication process

LOI

LO2

LO3


Learning Outcomes

Explain the goal and tasks of promotion

Discuss the AIDA concept and its relationship to the promotional mix

Describe the factors that affect the promotional mix

Discuss the concept of integrated marketing communications

LO5

LO6

LO7

LO4


Discuss the role of promotion in the

marketing mix

The Role of Promotion in the Marketing MixLOI


The Role of Promotion

PromotionPromotionCommunication by

marketers that informs,

persuades, and reminds

potential buyers of a product

in order to influence an

opinion or elicit a response.

LOI


The Role of PromotionLOI

PromotionalStrategy

PromotionalStrategy

A plan for the optimal use of

the elements of promotion:

Advertising Public Relations Sales Promotion Personal SellingCompetitiveCompetitive

AdvantageAdvantage

7Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved

Chapter 14

LOI

Overall Marketing Objectives

Overall Marketing Objectives

Marketing Mix• Product• Place• Promotion• Price

Marketing Mix• Product• Place• Promotion• Price

Target MarketTarget Market

Promotional Mix

• Advertising• Public Relations• Sales Promotion• Personal Selling

Promotion Plan

Promotional Mix

• Advertising• Public Relations• Sales Promotion• Personal Selling

Promotion Plan

The Role of Promotionin the Marketing Mix


Chapter 14

Competitive AdvantageLOI

Unique featuresUnique features

Excellent serviceExcellent service

Low pricesLow prices

Rapid deliveryRapid delivery

High product qualityHigh product quality


REVIEW LEARNING OUTCOMEThe Role of Promotion in the Marketing Mix

LOI


Discuss the elements of the promotional mix

The Promotional MixLO2



PromotionalMix

PromotionalMix

Combination of promotiontools used to reach the target market and fulfill theorganization’s overall goals.

Advertising Public Relations Sales Promotion Personal Selling



AdvertisingAdvertising Impersonal, one-way

mass communication about

a product or organization

that is paid for by a

marketer.

13Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14LO2

Traditional Advertising Media

Traditional Advertising Media

NewAdvertising Media

NewAdvertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Banner ads Viral marketing E- mail Interactive video

Advertising Media

14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter14

LO2 Advertising

Advantages Disadvantages

Reach large number of people

Low cost per contact

Can be micro-targeted

Total cost is high

National reach is expensive for small companies


Public RelationsLO2

PublicRelations

PublicRelations

The marketing function thatevaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.


Jaguar is giving an $80,000 Jaguar XK to a select group of “beautiful people”--just to be seen in it

It is reality-based product placement—where real life blurs seamlessly into advertising

The success of the campaign is “how many people touch and see the car”

LO7Reality-Based Product Advertising

SOURCE: Gina Chon, “Jaguar Tries a Living Product Placement,” Wall Street Journal, June 29, 2006, B1.

17Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 LO2

The Function of Public Relations

Maintain a positive image

Educate the public about the company’s objectives

Introduce new products

Support the sales effort

Generate favorable publicity


Sales PromotionLO2

SalesPromotion

SalesPromotion

Online

http://www.nabiscoworld.com

Marketing activities--other

than personal selling,

advertising, and public

relations--that stimulate

consumer buying and

dealer effectiveness.


LO2

EndConsumers

EndConsumers

Trade Customers

Trade Customers

CompanyEmployees Company

Employees

Free samplesFree samples

ContestsContests

PremiumsPremiums

Trade ShowsTrade Shows

Vacation GiveawaysVacation Giveaways

CouponsCoupons

Sales Promotion


PersonalSelling

PersonalSelling

Personal SellingLO2

Planned presentation to one or more prospective buyers for the purpose of making a sale.


LO2 Personal Selling

Traditional Selling

Traditional Selling

Relationship Selling

Relationship Selling


REVIEW LEARNING OUTCOMEElements of the Promotional Mix

LO2


Describe the communication process

Marketing CommunicationLO3


CommunicationLO3

CommunicationCommunication

Online

http://www.mcdonalds.com

The process by which we

exchange or share meanings

through a common set of

symbols.


LO3

Categories of CommunicationCategories of

Communication

InterpersonalCommunicationInterpersonal

CommunicationMass

CommunicationMass

Communication

Marketing Communication


LO3 Marketing Communication

As Senders As Receivers

Develop messages

Adapt messages

Spot new communication opportunities

Inform

Persuade

Remind

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 27

LO3

NoiseNoise

SenderSender EncodingMessage

EncodingMessage

FeedbackChannel

FeedbackChannel

MessageChannel

MessageChannel

DecodingMessage

DecodingMessage ReceiverReceiver

The Communication Process


LO3Characteristics of the Elementsin the Promotional Mix



Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

Advertising

Indirect and impersonal

Low

Little

Delayed

One-way

Yes

Yes

Fast

Same message to all audiences



Communication Mode


Feedback Amount

Feedback Speed





Message Flexibility

Public Relations

Usually indirect, impersonal

Moderate to low

Little

Delayed

One-way

No

No

Usually fast

Usually no direct control



Communication Mode


Feedback Amount

Feedback Speed





Message Flexibility

Sales Promotion

Usually indirect and impersonal

Moderate to low

Little to moderate

Varies

Mostly one-way

Yes

Yes

Fast

Same message to varied target



Communication Mode


Feedback Amount

Feedback Speed





Message Flexibility

Personal Selling

Direct and face-to-face

High

Much

Immediate

Two-way

Yes

Yes

Slow

Tailored to prospect


The Impact of BloggingLO3

CorporateBlogs

CorporateBlogs

Sponsored by a company or

one of its brands and maintained

by one or more of the company’s

employees.

Sponsored by a company or

one of its brands and maintained

by one or more of the company’s

employees.

NoncorporateBlogs

NoncorporateBlogs

Independent and not associated with the marketing efforts of anyparticular company or brand.

Independent and not associated with the marketing efforts of anyparticular company or brand.


REVIEW LEARNING OUTCOMEThe Communication Process

LO3


Explain the goals and tasks of promotion

The Goals and Tasks of PromotionLO4


InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

Goals and Tasks of Promotion

Online

http://www.tide.com



InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity


LO4

Increase awareness

Explain how product works

Suggest new uses

Build company image

Informative Promotion



LO4

Persuasive Promotion


Encourage brand switching

Change customers’ perceptions of product attributes

Influence immediate buying decision

Persuade customers to call


LO4

Reminder Promotion


Remind customers that product may be needed

Remind customers where to buy product

Maintain customer awareness


Discuss the AIDA concept and its relationship to

the promotional mix

Promotional Goals and the AIDA ConceptLO5


LO5

AIDA ConceptAIDA ConceptModel that outlines the

process for achieving

promotional goals in terms

of stages of consumer

involvement with the

message.

The AIDA Concept


LO5 The AIDA Concept

Action

Desire

Interest

Attention Cognitive (thinking)

Affective (feeling)

Conative (doing)

Online

LO5

http://www.nascar.comhttp://www.kelloggs.com

Online

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter14

Biz Flix

About a Boy

44

LO5


REVIEW LEARNING OUTCOMEThe AIDA Concept

LO5


Describe the factors that affect the promotional mix

Factors Affecting the Promotional Mix

LO6


Nature of the productNature of the product

Stage in PLCStage in PLC

Target market factorsTarget market factors

Type of buying decisionType of buying decision

Promotion fundsPromotion funds

Push or pull strategyPush or pull strategy

Factors Affecting the Choice of Promotional Mix


LO6 Stage in the Product Life Cycle

Light Advertising; pre-introductionpublicity

Heavy use of Advertising;PR forawareness;sales promotionfor trial

AD/PRdecrease;limited sales promotion; personal selling fordistribution

Ads decrease;sales promotion;personal selling;reminder & persuasive

Advertising, PR, brandloyalty;personal selling fordistribution

IntroductionIntroduction GrowthGrowth

MaturityMaturityDeclineDecline

Sal

es (

$)S

ales

($)

TimeTime


LO6

For…

Widely scattered market

Informed buyers

Brand-loyal repeat purchasers

AdvertisingAdvertising

Sales PromotionSales Promotion

Less Personal SellingLess Personal Selling

Target Market Characteristics


LO6

Advertising

Sales PromotionRoutineRoutine

Personal Selling

Neither Routinenor Complex

Neither Routinenor Complex

Advertising

Public Relations

Print AdvertisingComplexComplex

Type of Buying Decision


Chapter 14

LO6

Trade-offs with funds available

Number of people in target market

Quality of communication needed

Relative costs of promotional elements

Available Funds


LO6 Push and Pull Strategies

Manufacturerpromotes to wholesaler

Manufacturerpromotes to wholesaler

Wholesaler promotes to

retailer

Wholesaler promotes to

retailer

Retailer promotes toconsumer

Retailer promotes toconsumer

Consumerbuys from

retailer

Consumerbuys from

retailer

PUSH STRATEGY

Orders to manufacturer

Manufacturerpromotes to

consumer

Manufacturerpromotes to

consumer

Consumer demands product

from retailer

Consumer demands product

from retailer

Retailer demands product

from wholesaler

Retailer demands product

from wholesaler

Wholesaler demands

product frommanufacturer

Wholesaler demands

product frommanufacturer

Orders to manufacturer

PULL STRATEGY


REVIEW LEARNING OUTCOMEFactors Affecting Promotional Mix

LO6


Discuss the concept of integrated marketing

communications

Integrated Marketing CommunicationsLO7


LO7

IntegratedMarketing

Communications

IntegratedMarketing

Communications

The careful coordination of all

promotional messages to assure the

consistency of messages at every

contact point where a company meets

the consumer.

Integrated Marketing Communications


LO7

Proliferation of thousands of media choices

Fragmentation of the mass market

Slash of advertising spending in favor of promotional techniques that generate immediate response

IMC Popularity Growth


REVIEW LEARNING OUTCOME Integrated Marketing Communications

LO7

Business

Integrated Marketing Communication