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15-1Copyright © 2001 by Harcourt, Inc. All rights reserved.
CHAPTER FIFTEENCHAPTER FIFTEEN
INTEGRATED MARKETINGINTEGRATED MARKETING
COMMUNICATIONSCOMMUNICATIONS
Text by Profs. Gene Boone & D!"# K$rt%
Multimedia Presentation by
Prof. Milton Pressley
The University of New Orleans
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15-2Copyright © 2001 by Harcourt, Inc. All rights reserved.
CHAPTER OBECTI'ESCHAPTER OBECTI'ES• Relate the concept of integrated mareting
communications to the development of theoptimal promotional mi!
• "!plain the relationship of promotionalstrategy to the process of communication
• #ist the ob$ectives of promotion
• "!plain the concept of the promotional mi!and its relationship to the mareting mi!
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CHAPTER OBECTI'ESCHAPTER OBECTI'ES• %iscuss the role of sponsorships and direct
mareting in integrated maretingcommunications planning
• &dentify the primary determinants of apromotional mi!
• 'ontrast the two ma$or alternative promotionalstrategies
• 'ompare to the primary methods of developinga promotional budget
• %efend promotion against common publiccriticisms
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15-!Copyright © 2001 by Harcourt, Inc. All rights reserved.
" Promotion: #unction o# in#or$ing, persuading, and in#luencing the consu$er%s
purchase decision" Marketing Communications: trans$ission
#ro$ a sender to a receiver o# a $essagedealing &ith the buyer-seller relationship
C()ter O!er!"e*C()ter O!er!"e*
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15-5Copyright © 2001 by Harcourt, Inc. All rights reserved.
Inte+rte# Mr,et"n+Inte+rte# Mr,et"n+
Co--$n"t"onsCo--$n"t"ons" Integrated marketing communications (IMC):
Coordination o# all pro$otional activities ' $edia
advertising, direct $ail, personal selling, sales pro$otion, and public relations ' to produce auni#ied custo$er-#ocused pro$otional $essage
" (uccess o# any I)C progra$ depends critically onidenti#ying the $e$bers o# an audience andunderstanding &hat they &ant
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Tb/e 01.02Tb/e 01.02 Re/t"n+ Pro-ot"on to t(e Co--$n"t"ons ProessRe/t"n+ Pro-ot"on to t(e Co--$n"t"ons Proess
THE COMMUNICATIONS PROCESSTHE COMMUNICATIONS PROCESS
http://var/www/apps/conversion/tmp/scratch_6/..%5Cv.exe%20%5Cch15%5Cpic%5Ctab15.1large.jpg
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" An e##ective pro$otional $essage acco$plishesthree tass/
" It gains the receiver%s attention" It achieves understanding by both receiver and
sender
" It sti$ulates the receiver%s needs and suggestsan appropriate $ethod o# satis#ying the$
" he above tass are related to the AIDA conceptAttention-Interest-Desire-Action ' ane3planation o# the steps through &hich anindividual reaches a purchase decision
THE COMMUNICATIONS PROCESSTHE COMMUNICATIONS PROCESS
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15-4Copyright © 2001 by Harcourt, Inc. All rights reserved.
G/ob/ D"ff"$/t"es 3"t( t(eG/ob/ D"ff"$/t"es 3"t( t(e
Co--$n"t"on ProessCo--$n"t"on Proess" In China: 6C%s slogan/ 76inger licin% good8
ca$e out as 79at your #ingers o##8
" Also in China: Coca-Cola had thousands o# signs$ade using the translation/ 7e-ou-e-la8" +epending on the dialect this $eans . . .
" 7:ite the &a3 tadpole,8 or" 76e$ale horse stu##ed &ith &a38
" In Taiwan: *epsi%s slogan, 7Co$e alive &ith the*epsi generation8 ca$e out as 7*epsi &ill bringyour ancestors bac #ro$ the dead8
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Ob4et"!es of Ob4et"!es of
" raditional #unction o# pro$otion &as
to in#or$ the $aret about theavailability o# a particular good orservice
" )areters still direct large portions o#
current pro$otional e##orts at providingin#or$ation
Pro!"#ePro!"#eInfor-t"onInfor-t"onPro-ot"onPro-ot"on
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Ob4et"!es of Ob4et"!es of
" (o$e pro$otions are ai$ed at
increasing primary demand , the desire#or a general product category
" )ore pro$otions are ai$ed atincreasing selective demand , the desire
#or a speci#ic brand
InreseInreseDe-n#De-n#Pro-ot"onPro-ot"on
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Ob4et"!es of Ob4et"!es of
" Product differentiation is a #re;uent
ob
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Ob4et"!es of Ob4et"!es of
" *ro$otion can e3plain the greatero&nership utility o# a product to buyers, thereby accentuating its valueand
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Ob4et"!es of Ob4et"!es of
" 6or the typical #ir$, sales #luctuations$ay result #ro$ cyclical, seasonal, orirregular de$and
" (tabili=ing these variations is o#ten an
ob
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T(e Pro-ot"on/ M"xT(e Pro-ot"on/ M"x
" Promotional mix: blend o# personalselling and
nonpersonal sellingincluding advertising,sales pro$otion, direct$areting, and public
relations designed toachieve pro$otionalob
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15-15Copyright © 2001 by Harcourt, Inc. All rights reserved.
Non)erson/ Se//"n+Non)erson/ Se//"n+
(dvertising (dvertising" Advertising: paid,
nonpersonalco$$unication through
various $edia by a business #ir$, not-#or- pro#it organi=ation, orindividual identi#ied inthe $essage &ith the
hope o# in#or$ing or persuading $e$bers o#a particular audience
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Non)erson/ Se//"n+Non)erson/ Se//"n+
" ales promotion: $areting activities other than personal selling, advertising, and publicity thatsti$ulates consu$er purchasing and dealere##ectiveness includes displays, trade sho&s,coupons, pre$iu$s, contests, productde$onstrations, and various nonrecurrent sellinge##orts
" Trade promotion: sales pro$otions ai$ed at$areting inter$ediaries rather than ulti$ateconsu$ers
)ales promotion)ales promotion
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Non)erson/ Se//"n+Non)erson/ Se//"n+
" Direct marketing: directco$$unications otherthan personal sales
contact bet&een buyerand seller, designed togenerate sales,in#or$ation re;uests, or
store visits%irect mareting%irect mareting
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15-14Copyright © 2001 by Harcourt, Inc. All rights reserved.
Non)erson/ Se//"n+Non)erson/ Se//"n+
" Pu!lic relations: #ir$%sco$$unications andrelationships &ith itsvarious publics
" Pu!licit": sti$ulation o#de$and #or good, service,
place, idea, person, ororgani=ation by unpaid
place$ent o# co$$erciallysigni#icant ne&s or#avorable $edia
presentationsPublic relationsPublic relations
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Tb/e 01.62Tb/e 01.62 Re/t"n+ Pro-ot"on to t(e Co--$n"t"ons ProessRe/t"n+ Pro-ot"on to t(e Co--$n"t"ons Proess
Personal
Selling Advertising
Sales
Promotion
Direct
Marketing
Public
Relations
Permitsmeasurementofeffectiveness.
Elicits animmediateresponse.
Tailors themessage to fitthe customer.
Reaches alarge group ofpotentialconsumers fora relativelylow price perexposure.
Allows strictcontrol overthe finalmessage.
Can beadapted to
either massaudiences orspecificaudiencesegments.
Produces animmediateconsumerresponse.
Attractsattention andcreates productawareness.
Allows easymeasurementof results.
Provides short-term salesincreases.
Generatesanimmediateresponse.
Covers awideaudiencewithtargetedadvertising.
Allowscomplete,customized,
personalmessage.
Producesmeasurableresults.
Creates apositiveattitudetoward aproduct orcompany.
Enhancescredibilityof a productorcompany.
A d v a n t a g e s
Continued
on ne3t
slide . . .
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15-20Copyright © 2001 by Harcourt, Inc. All rights reserved.
Tb/e 01.62Tb/e 01.62 Re/t"n+ Pro-ot"on to t(eRe/t"n+ Pro-ot"on to t(e
Co--$n"t"ons ProessCo--$n"t"ons Proess 7Cont"n$e#87Cont"n$e#8
PersonalSelling Advertising
SalesPromotion
DirectMarketing
PublicRelations
Relies almostexclusivelyupon the
ability of thesalesperson.
Involves highcost percontact.
Does notpermittotally
accuratemeasurement of results.
Usuallycannot closesales.
Isnonpersonal in nature.
Is difficulttodifferentiate fromcompetitor’s efforts.
Suffersfrom imageproblem.
Involves ahigh costper reader.
Depends onquality andaccuracy ofmailinglists.
May annoyconsumers.
May notpermitaccurate
measurement of effecton sales.
Involvesmuch effortdirected
towardnonmarketing-orientedgoals.
D i s a d v a n t a g e s
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15-21Copyright © 2001 by Harcourt, Inc. All rights reserved.
SPONSORSHIPSSPONSORSHIPS
" ponsorship: provision o# #unds #or asporting or cultural event in e3change#or a direct association &ith the events?in e-co$$erce, a long-ter$ linage
bet&een a @eb site and a $areter " (ponsor I:) is
pro$inently#eatured on the(ydney2000 ly$pic@eb(ite
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15-22Copyright © 2001 by Harcourt, Inc. All rights reserved.
Te/e-r,et"n+Te/e-r,et"n+" Telemarketing: pro$otional
presentation involving the useo# the telephone #or outboundcontacts by salespeople orinbound contacts initiated bycusto$ers &ho &ant to obtainin#or$ation and place orders
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E/etron" D"retE/etron" D"ret
Mr,et"n+ C(nne/sMr,et"n+ C(nne/s" @eb advertising is an i$portant
co$ponent o# electronic direct
$areting" 9-$ail direct $areting is anatural and easy e3tension o#traditional direct $ail $areting
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Copyright © 2001 by Harcourt, Inc. All rights reserved.
Nature of ProductNature of Product
)tage in P#')tage in P#'
PricePrice
*unds (vailable*unds (vailable
" 6actors that in#luence thee##ectiveness o# a
pro$otional to $i3/" Bature o# the $aret" Bature o# the product" (tage in the product
li#e-cycle" *rice" 6unds available #or
pro$otion
Nature of MaretNature of Maret
DE'E9OPING AN OPTIMA9DE'E9OPING AN OPTIMA9
PROMOTIONA9 MI:PROMOTIONA9 MI:
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Tb/e 01.;2Tb/e 01.;2 Ftors Inf/$en"n+ C(o"e of Pro-ot"on/ M"xFtors Inf/$en"n+ C(o"e of Pro-ot"on/ M"x
Personal Selling Advertising
Nature of the market
Number of buyers
Geographicconcentration
Type of customer
Limited number
Concentrated
Business purchaser
Large number
Dispersed
Ultimate consumer
Nature of the product
Complexity Service
requirements Type of good or
service Use of trade-ins
Custom-made, complex
Considerable
BusinessTrade-ins common
Standardized
Minimal
ConsumerTrade-ins uncommon
Stage in the product life
cycle
Often emphasized at everystage; heavy emphasis in the
introductory and early growthstages in acquainting marketingintermediaries and potentialconsumers with the new goodor service
Often emphasized at everystage; heavy emphasis in
the latter part of the growthstage, as well as thematurity and early declinestages, to persuadeconsumers to selectspecific brands
Price High unit value Low unit value
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Tb/e 01.
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MEASURING THEMEASURING THE
EFFECTI'ENESS OF PROMOTIONEFFECTI'ENESS OF PROMOTION
" &o basic $easure$ent tools/" Direct sales results $easures the e##ectiveness
o# pro$otion by revealing the speci#ic i$pacton sales revenues #or each dollar o#
pro$otional spending" Indirect evaluation concentrates on ;uanti#iable
indicators o# e##ectiveness lie/
" Recall - ho& $uch $e$bers o# the target
$aret re$e$ber about speci#ic products oradvertise$ents
" eadership ' si=e and co$position o# a$essage%s audience
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Mes$r"n+ On/"neMes$r"n+ On/"ne
Pro-ot"onsPro-ot"ons" &o $a
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15 0
STRATEGIC IMP9ICATIONSSTRATEGIC IMP9ICATIONS
" It%s di##icult to overstate the i$pact o# the Interneton the pro$otional $i3 #or 21st Century #ir$s" :oth s$all and large #ir$s are on the @eb" 9ntrepreneurs have #ound a lucrative ne& launch
pad #or their enterprises" nline co$panies $ust buy advertising 'electronic and traditional
" nline and o##line #ir$s both spend about D50 toget each ne& custo$er
" I)C &ill continue to play an i$portant role as theInternet brings the global co$$unity closertogether
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