Integrated Marketing Communications: Prepared by Deborah Baker Texas Christian University

Integrated Marketing Communications
14
chapter
Prepared by Deborah Baker Texas Christian University

2002 South-Western 1
Chapter 14 Version 6e
Learning Objectives
1. Discuss the role of promotion in the marketing mix.
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2. Discuss the elements of the promotional mix. 3. Describe the communication process.
chapter
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Learning Objectives (continued)

4. Explain the goal and tasks of promotion. 5. Discuss the AIDA concept and its relationship to the promotional mix. 6. Describe the factors that affect the promotional mix. 7. Discuss the concept of integrated marketing communications.
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1
Learning Objective
Discuss the role of promotion in the marketing mix.
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Promotion
Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.
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Promotional Strategy
A plan for the optimal use of the elements of promotion: Advertising Public Relations Personal Selling Sales Promotion
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The Role of Promotion
Overall Marketing Objectives Marketing Mix Product Distribution Promotion Price Promotional Mix Advertising Public Relations Personal Selling Sales Promotion
Target Market
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Promotion Plan
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Differential Advantage
High Product Quality
Rapid Delivery
Features that provide Differential Advantage
Low Prices
Excellent Service
Unique Features
Learning Objective
Discuss the elements of the promotional mix.
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Promotional Mix
Advertising Public Relations Personal Selling Sales Promotion
Combination of promotion tools used to reach the target market and fulfill the organizations overall goals.
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Promotional Mix
Advertising
Elements of the Promotional Mix
Public Relations
Personal Selling
Sales Promotion
Advertising
Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.
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Advertising Media
Traditional Advertising Media Electronic Advertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
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Advertising
Advantages
Ability to reach large number of people Cost per contact is low
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Disadvantages
Total cost is high
Can be micro-targeted
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Public Relations
The marketing function that evaluates 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 Relations
Functions of Public Relations
Evaluates public attitudes
Executes programs to win public
Identifies areas of public interest

Publicity
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Public information about a company, good, or service appearing in the mass media as a news item.
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Sales Promotion
Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness.
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Sales Promotion
Sales Promotion Targets
End Consumers
Trade Customers
Company Employees
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Sales Promotion
Free samples Contests Premiums Trade Shows
Popular Tools for Consumer Sales Promotion

Vacation Giveaways
Coupons
Personal Selling
2
Planned presentation to one or more prospective buyers for the purpose of making a sale.
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Personal Selling
Traditional Selling Relationship Selling
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Learning Objective
Describe the communication process.
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Communication
3
The process by which we exchange or share meanings through a common set of symbols.
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Marketing Communication
Categories of Communication
Interpersonal Communication
Mass Communication
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The Communication Process

As Senders
Inform
As Receivers
Develop messages
Persuade
Remind
Adapt messages
Spot new communication opportunities
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The Sender and Encoding
Sender
The originator of the message in the communication process. The conversion of a senders ideas and thoughts into a message, usually in the form of words or signs.
Encoding
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The Communication Process

Noise
Sender
Encoding Message
Message Channel
Decoding Message
Receiver
Message Channel
Characteristics of Advertising
Advertising
Communication Mode Communication Control Feedback Amount Indirect and non-personal Low Little
Feedback Speed
Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility
Delayed
One-way Yes Yes Fast Same message to all audiences
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Characteristics of Public Relations

Public Relations
Communication Mode Communication Control Feedback Amount Usually indirect, non-personal Moderate to low Little
Feedback Speed
Delayed
One-way No No Usually fast Usually no direct control
Characteristics of Sales Promotion

Sales Promotion
Communication Mode Communication Control Feedback Amount Usually Indirect and non-personal Moderate to low Little to moderate
Feedback Speed
Varies
Mostly one-way Yes Yes Fast Same message to varied target
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Characteristics of Personal Selling

Personal Selling
Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Direct and face-to-face High Much Immediate Two-way Yes Yes Slow
Message Flexibility
Tailored to prospect
Learning Objective
Explain the goal and tasks of promotion.
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Goals and Tasks of Promotion

Informing Reminding
Target Audience
Persuading

Informing
PLC Stages: Introduction Early Growth
Reminding
PLC Stages: Maturity
Target Audience
PLC Stages: Growth Maturity

Persuading

Informative Objective
Increase awareness Explain how product works Suggest new uses Build company image
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Persuasion Objective
Encourage brand switching Change customers perception of product attributes Influence buying decision Persuade customers to call
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Reminder Objective
Remind customers that product may be needed Remind customers where to buy product
Maintain customer awareness
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Learning Objective
Discuss the AIDA concept and its relationship to the promotional mix.
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The AIDA Concept
Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.
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The AIDA Concept
Action
Desire Interest
Attention
AIDA and the Promotional Mix

Awareness
Advertising Public Relations Sales Promotion Personal Selling
Very effective Very effective Somewhat effective Somewhat effective
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Action
Not effective Not effective Very effective Somewhat effective
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Interest
Very effective Very effective Somewhat effective Very effective
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Desire
Somewhat effective Very effective Very effective Very effective
Learning Objective
Describe the factors that affect the promotional mix.
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Factors Affecting the Promotional Mix

Nature of Product Stage in PLC Target Market Factors
Factors Affecting Choice of Promotional Mix

Type of Buying Decision Promotion Funds Push or Pull Strategy

Nature of the Product

Factors that influence promotional mix
Product characteristics Business product vs. consumer product Costs and risks
Social risk
Stage in the Product Life Cycle

Maturity
Sales ($)
Introduction
Growth
Decline
Time
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Product Life Cycle and the Promotional Mix

Sales ($)
Maturity Introduction Growth Decline
Time
Light Heavy use of Advertising, advertising, prePR for introduction awareness; Publicity sales promotion for trial
Advertising, PR, Brand loyalty Personal Selling for distribution
Ads decrease. Sales Promotion, Personal Selling Reminder & Persuasive
AD/PR decrease Limited Sales Promotion, Personal Selling for distribution

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Target Market Characteristics

FOR:
Widely scattered market
Informed buyers
Repeat buyers
Advertising Sales Promotion Less Personal Selling
Type of Buying Decision

Routine
Advertising Sales Promotion Advertising Public Relations
Type of Buying Decision affects Promotional Mix Choice
Not Routine or Complex
Complex
Personal Selling
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Available Funds
Trade-offs with funds available
Number of people in target market Quality of communication needed Relative costs of promotional elements
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Push and Pull Strategies

PUSH STRATEGY
Manufacturer promotes to wholesaler Wholesaler promotes to retailer Retailer promotes to consumer
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Consumer buys from retailer
Orders to manufacturer
PULL STRATEGY
Manufacturer promotes to consumer Consumer demands product from retailer Retailer demands product from wholesaler Wholesaler demands product from manufacturer
Orders to manufacturer
Learning Objective
Discuss the concept of integrated marketing communications.
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Integrated Marketing Communications
A method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused.
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IMC Popularity Growth

Proliferation of thousands of media choices
Fragmentation of the mass market Slash of advertising spending in favor of promotional techniques
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Integrated Marketing Communications: Prepared by Deborah Baker Texas Christian University

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Integrated Marketing Communications

Prepared by Deborah Baker Texas Christian University

Learning Objectives (continued)

Discuss the role of promotion in the marketing mix.

Features that provide Differential Advantage

Elements of the Promotional Mix

Internet Computer modems Fax machines

Evaluates public attitudes

Executes programs to win public

Identifies areas of public interest

Popular Tools for Consumer Sales Promotion

The Communication Process

The Sender and Encoding

The Communication Process

Characteristics of Public Relations

Characteristics of Sales Promotion

Characteristics of Personal Selling

Goals and Tasks of Promotion

Goals and Tasks of Promotion

PLC Stages: Growth Maturity

Goals and Tasks of Promotion

Goals and Tasks of Promotion

Goals and Tasks of Promotion

Maintain customer awareness

The AIDA Concept

The AIDA Concept

AIDA and the Promotional Mix

Describe the factors that affect the promotional mix.

Factors Affecting the Promotional Mix

Factors Affecting Choice of Promotional Mix

Type of Buying Decision Promotion Funds Push or Pull Strategy

Nature of the Product

Stage in the Product Life Cycle

Product Life Cycle and the Promotional Mix

Advertising, PR, Brand loyalty Personal Selling for distribution

Ads decrease. Sales Promotion, Personal Selling Reminder & Persuasive

AD/PR decrease Limited Sales Promotion, Personal Selling for distribution

Target Market Characteristics

Type of Buying Decision

Type of Buying Decision affects Promotional Mix Choice

Not Routine or Complex

Push and Pull Strategies

Discuss the concept of integrated marketing communications.

Integrated Marketing Communications

IMC Popularity Growth

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