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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
3Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14
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
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Discuss the role of promotion in the
marketing mix
The Role of Promotion in the Marketing MixLOI
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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
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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
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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
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Chapter 14
Competitive AdvantageLOI
Unique featuresUnique features
Excellent serviceExcellent service
Low pricesLow prices
Rapid deliveryRapid delivery
High product qualityHigh product quality
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REVIEW LEARNING OUTCOMEThe Role of Promotion in the Marketing Mix
LOI
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Discuss the elements of the promotional mix
The Promotional MixLO2
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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
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The Promotional MixLO2
AdvertisingAdvertising Impersonal, one-way
mass communication about
a product or organization
that is paid for by a
marketer.
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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
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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
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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.
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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.
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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
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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.
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LO2
EndConsumers
EndConsumers
Trade Customers
Trade Customers
CompanyEmployees Company
Employees
Free samplesFree samples
ContestsContests
PremiumsPremiums
Trade ShowsTrade Shows
Vacation GiveawaysVacation Giveaways
CouponsCoupons
Sales Promotion
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PersonalSelling
PersonalSelling
Personal SellingLO2
Planned presentation to one or more prospective buyers for the purpose of making a sale.
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LO2 Personal Selling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
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REVIEW LEARNING OUTCOMEElements of the Promotional Mix
LO2
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Describe the communication process
Marketing CommunicationLO3
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CommunicationLO3
CommunicationCommunication
Online
http://www.mcdonalds.com
The process by which we
exchange or share meanings
through a common set of
symbols.
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LO3
Categories of CommunicationCategories of
Communication
InterpersonalCommunicationInterpersonal
CommunicationMass
CommunicationMass
Communication
Marketing Communication
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LO3 Marketing Communication
As Senders As Receivers
Develop messages
Adapt messages
Spot new communication opportunities
Inform
Persuade
Remind
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LO3
NoiseNoise
SenderSender EncodingMessage
EncodingMessage
FeedbackChannel
FeedbackChannel
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
The Communication Process
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LO3Characteristics of the Elementsin the Promotional Mix
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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
30Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14
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
Public Relations
Usually indirect, impersonal
Moderate to low
Little
Delayed
One-way
No
No
Usually fast
Usually no direct control
31Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14
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
Sales Promotion
Usually indirect and impersonal
Moderate to low
Little to moderate
Varies
Mostly one-way
Yes
Yes
Fast
Same message to varied target
32Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14
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
Personal Selling
Direct and face-to-face
High
Much
Immediate
Two-way
Yes
Yes
Slow
Tailored to prospect
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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.
34Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14
REVIEW LEARNING OUTCOMEThe Communication Process
LO3
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Explain the goals and tasks of promotion
The Goals and Tasks of PromotionLO4
36Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 LO4
InformingInforming RemindingReminding
PersuadingPersuading
TargetAudienceTarget
Audience
Goals and Tasks of Promotion
Online
http://www.tide.com
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Goals and Tasks of Promotion
InformingInforming RemindingReminding
PersuadingPersuading
TargetAudienceTarget
Audience
PLC StagesPLC Stages:Introduction Early Growth
PLC Stages:PLC Stages:Growth Maturity
PLC Stages:PLC Stages:Maturity
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LO4
Increase awareness
Explain how product works
Suggest new uses
Build company image
Informative Promotion
Goals and Tasks of Promotion
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LO4
Persuasive Promotion
Goals and Tasks of Promotion
Encourage brand switching
Change customers’ perceptions of product attributes
Influence immediate buying decision
Persuade customers to call
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LO4
Reminder Promotion
Goals and Tasks of Promotion
Remind customers that product may be needed
Remind customers where to buy product
Maintain customer awareness
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Discuss the AIDA concept and its relationship to
the promotional mix
Promotional Goals and the AIDA ConceptLO5
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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
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LO5 The AIDA Concept
Action
Desire
Interest
Attention Cognitive (thinking)
Affective (feeling)
Conative (doing)
Online
LO5
http://www.nascar.comhttp://www.kelloggs.com
Online
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Biz Flix
About a Boy
44
LO5
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REVIEW LEARNING OUTCOMEThe AIDA Concept
LO5
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Describe the factors that affect the promotional mix
Factors Affecting the Promotional Mix
LO6
47Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 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
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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
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LO6
For…
Widely scattered market
Informed buyers
Brand-loyal repeat purchasers
AdvertisingAdvertising
Sales PromotionSales Promotion
Less Personal SellingLess Personal Selling
Target Market Characteristics
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LO6
Advertising
Sales PromotionRoutineRoutine
Personal Selling
Neither Routinenor Complex
Neither Routinenor Complex
Advertising
Public Relations
Print AdvertisingComplexComplex
Type of Buying Decision
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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
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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
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REVIEW LEARNING OUTCOMEFactors Affecting Promotional Mix
LO6
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Discuss the concept of integrated marketing
communications
Integrated Marketing CommunicationsLO7
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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
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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
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REVIEW LEARNING OUTCOME Integrated Marketing Communications
LO7