Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1 MKTG Designed by Amy McGuire, B-books, Ltd. Prepared

Chapter 14 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1

MKTG

Designed byAmy McGuire, B-books, Ltd.

Prepared byDeborah Baker, Texas Christian University

Lamb, Hair, McDaniel 2007-2008

14

CHAPTERIntegrated Marketing Communications


LO1

The Role of Promotion

Communication by

marketers that informs,

persuades, and reminds

potential buyers of a

product in order to

influence an opinion or

elicit a response.

PromotionPromotion


LO1

The Role of Promotion

A plan for the optimal

use of the elements of

promotion: Advertising Public Relations Sales Promotion Personal Selling

PromotionalStrategy

PromotionalStrategy

CompetitiveAdvantage


LO1

The Role of Promotion in the Marketing Mix

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


LO1

Competitive Advantage

Unique featuresUnique features

Excellent serviceExcellent service

Low pricesLow prices

Rapid deliveryRapid delivery

High product qualityHigh product quality


REVIEW LEARNING OUTCOMELO1

The Role of Promotion in the Marketing Mix


The Promotional Mix

LO2

Combination of promotiontools used to reach the target market and fulfill theorganization’s overall goals. Advertising Public Relations Sales Promotion Personal Selling

Promotional

MixPromotional

Mix


The Promotional Mix

LO2

Impersonal, one-way Impersonal, one-way mass communication about a mass communication about a product or organization that is product or organization that is paid for by a marketer.paid for by a marketer.

AdvertisingAdvertising


Advertising Media

LO2

Traditional Advertising Media

NewAdvertising

Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Banner ads Viral marketing E- mail Interactive video


Advertising

LO2

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 Relations

LO2

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.

Public

RelationsPublic

Relations


LO2B

eyond

the

Book

Reality-Based Product Advertising

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”

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


The Function of Public Relations

LO2

Maintain a positive image Educate the public about the

company’s objectives Introduce new products Support the sales effort Generate favorable publicity


Sales Promotion

LO2

Marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness.

Sales

PromotionSales

Promotion

Online

http://www.nabiscoworld.com


Sales Promotion

LO2

EndConsumers

EndConsumers

Trade Customers

Trade Customers

CompanyEmployees Company

Employees

Free samplesFree samples

ContestsContests

PremiumsPremiums

Trade ShowsTrade Shows

Vacation GiveawaysVacation Giveaways

CouponsCoupons


Personal Selling

LO2

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

Personal

SellingPersonal

Selling


Personal Selling

LO2

Traditional Selling

Traditional Selling

Relationship Selling

Relationship Selling



Elements of the Promotional Mix


LO3

The process by which we exchange or

share meanings through a common set

of symbols.

Online

http://www.mcdonalds.com

CommunicationCommunication

Communication


LO3

Categories of CommunicationCategories of

Communication

InterpersonalCommunicationInterpersonal

CommunicationMass

CommunicationMass

Communication

Marketing Communication


LO3

As Senders As Receivers

Develop messages

Adapt messages

Spot new communication opportunities

Inform

Persuade

Remind

Marketing Communication


LO3

NoiseNoise

SenderSender EncodingMessage

EncodingMessage

FeedbackChannel

FeedbackChannel

MessageChannel

MessageChannel

DecodingMessage

DecodingMessage ReceiverReceiver

The Communication Process


LO3

Characteristics of the Elementsin the Promotional Mix


LO3

Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

AdvertisingIndirect and impersonal

Low

Little

Delayed

One-way

Yes

Yes

Fast

Same message to all audiences



LO3

Communication Mode


Feedback Amount

Feedback Speed





Message Flexibility

Public RelationsUsually indirect, impersonal

Moderate to low

Little

Delayed

One-way

No

No

Usually fast

Usually no direct control



LO3

Communication Mode


Feedback Amount

Feedback Speed





Message Flexibility

Sales PromotionUsually indirect and impersonal

Moderate to low

Little to moderate

Varies

Mostly one-way

Yes

Yes

Fast

Same message to varied target



LO3

Communication Mode


Feedback Amount

Feedback Speed





Message Flexibility

Personal SellingDirect and face-to-face

High

Much

Immediate

Two-way

Yes

Yes

Slow

Tailored to prospect



The Impact of Blogging

LO3LO3

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

CorporateBlogs

CorporateBlogs

Independent and not

associated with the

marketing efforts of any

particular company or brand.

Independent and not

associated with the

marketing efforts of any

particular company or brand.



The Communication Process


Goals and Tasks of Promotion

LO4

Online

http://www.tide.com

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience



LO4

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

Encourage brand switching

Change customers’ perceptions of product attributes

Influence immediate buying decision

Persuade customers to call

Persuasive Promotion



LO4

Remind customers that product may be needed

Remind customers where to buy product

Maintain customer awareness

Reminder Promotion


The AIDA ConceptLO5

Model that outlines the process

for achieving promotional goals

in terms of stages of consumer

involvement with the message.

AttentionInterestDesireAction

AttentionInterestDesireAction

AIDA ConceptAIDA

Concept


The AIDA ConceptLO5

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

Online

Action

Desire

Interest

Attention Cognitive (thinking)

Affective (feeling)

Conative (doing)


Biz Flix

LO5About a Boy



The AIDA Concept


LO6 Factors Affecting the Choice of Promotional Mix

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


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 Target Market Characteristics

For…

Widely scattered market

Informed buyers

Brand-loyal repeat purchasers

AdvertisingAdvertising

Sales PromotionSales Promotion

Less Personal SellingLess Personal Selling


LO6 Type of Buying Decision

Advertising

Sales PromotionRoutineRoutine

Personal Selling

Neither Routinenor Complex

Neither Routinenor Complex

Advertising

Public Relations

Print AdvertisingComplexComplex


LO6 Available Funds

Trade-offs with funds available Number of people in target market Quality of communication needed Relative costs of promotional

elements


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



Factors Affecting Promotional Mix


Integrated Marketing Communications

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.


IMC Popularity Growth

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



Integrated Marketing Communications

Documents

Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1 MKTG Designed by Amy McGuire, B-books, Ltd. Prepared