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Integrated Marketing

Communications

14
chapter

Prepared by
Deborah Baker
Texas Christian University

Chapter 14 Version 6e ©2002 South-Western 1


Learning Objectives
1. Discuss the role of promotion in the
marketing mix.

14 2. Discuss the elements of the promotional


mix.
chapter

3. Describe the communication process.

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Learning Objectives (continued)
4. Explain the goal and tasks of promotion.

5. Discuss the AIDA concept and its


14 relationship to the promotional mix.

6. Describe the factors that affect the


chapter

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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1
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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1
Promotional Strategy
A plan for the optimal use of
the elements of promotion:
Advertising
Public Relations
Personal Selling
Sales Promotion

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1
The Role of Promotion
Overall
Overall
Marketing Promotional
Promotional Mix
Mix
Marketing
Objectives
Objectives ••Advertising
Advertising
••Public
Public Relations
Relations
Marketing
MarketingMix
Mix ••Personal
Personal Selling
Selling
•• Product
Product ••Sales
Sales Promotion
Promotion
•• Distribution
Distribution
•• Promotion
Promotion
•• Price
Price

Target
TargetMarket
Market Promotion
Promotion Plan
Plan
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1
Differential Advantage
High
High Product
Product Quality
Quality

Rapid
Rapid Delivery
Delivery
Features
Features
that
that provide
provide
Differential
Differential Low
Low Prices
Prices
Advantage
Advantage

Excellent
Excellent Service
Service

Unique
Unique Features
Features
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2
Learning Objective

Discuss the elements


of the promotional mix.

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2
Promotional Mix

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

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2
Promotional Mix
Advertising
Advertising

Elements
Elements Public
PublicRelations
Relations
of
of the
the
Promotional
Promotional
Mix
Mix Personal
Personal Selling
Selling

Sales
Sales Promotion
Promotion
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2
Advertising

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

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2
Advertising Media
Traditional
Traditional Electronic
Electronic
Advertising
Advertising Media
Media Advertising
Advertising Media
Media
 Television  Internet
 Radio  Computer modems
 Newspapers  Fax machines
 Magazines
 Books
 Direct mail
 Billboards
 Transit cards
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2
Advertising

Advantages Disadvantages

 Ability to reach large  Total cost is high


number of people

 Cost per contact is low

 Can be micro-targeted

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2
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.

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2
Public Relations

Functions
Functions of
of
Public
Public Relations
Relations

Executes
Executes
Evaluates
Evaluates public
public programs
programs to
to
attitudes
attitudes “win”
“win” public
public
Identifies
Identifies areas
areas
of
of public
public interest
interest

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2
Publicity

Public information about a


company, good, or service
appearing in the mass media
as a news item.

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2
Sales Promotion

Marketing activities--other than


personal selling, advertising,
and public relations--that
stimulate consumer buying and

dealer effectiveness.

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2
Sales Promotion

Sales
Sales Promotion
Promotion
Targets
Targets

End
End Company
Company
Consumers
Consumers Employees
Employees

Trade
Trade Customers
Customers

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2
Sales Promotion
Free
Free samples
samples

Contests
Contests

Premiums
Premiums

Trade
Trade Shows
Shows
Popular
Popular Tools
Tools
for
for Vacation
Vacation Giveaways
Giveaways
Consumer
Consumer Sales
Sales
Promotion
Promotion Coupons
Coupons
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2
Personal Selling

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

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2
Personal Selling

Traditional
Traditional Relationship
Relationship
Selling
Selling Selling
Selling

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3
Learning Objective

Describe the
communication process.

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3
Communication

The process by which we


exchange or share
meanings through a common
set of symbols.

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3
Marketing Communication

Categories
Categories of
of
Communication
Communication

Interpersonal
Interpersonal Mass
Mass
Communication
Communication Communication
Communication

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3
The Communication Process
As Senders As Receivers

Inform  Develop messages

Persuade  Adapt messages

Remind  Spot new


communication
opportunities

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3
The Sender and Encoding

The
The originator
originator of
of the
the message
message in
in the
the
Sender
Sender communication
communication process.
process.

Encoding The
The conversion
conversion of of aa sender’s
sender’s ideas
ideas
Encoding
and
and thoughts
thoughts into
into aa message,
message, usually
usually
in
in the
the form
form of
of words
words oror signs.
signs.

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3
The Communication Process
Noise
Noise

Encoding
Encoding Message
Message Decoding
Decoding
Sender
Sender Receiver
Receiver
Message
Message Channel
Channel Message
Message

Message
Message
Channel
Channel
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3
Characteristics of Advertising
Advertising
Advertising
Communication
CommunicationMode
Mode Indirect
Indirectand
and non-personal
non-personal
Communication
CommunicationControl
Control Low
Low
Feedback
FeedbackAmount
Amount Little
Little
Feedback
FeedbackSpeed
Speed Delayed
Delayed
Message
MessageFlow
Flow Direction
Direction One-way
One-way
Message
MessageContent
Content Control
Control Yes
Yes
Sponsor
Sponsor Identification
Identification Yes
Yes
Reaching
ReachingLarge
LargeAudience
Audience Fast
Fast
Message
MessageFlexibility
Flexibility Same
Samemessage
messageto
toall
allaudiences
audiences
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3
Characteristics of Public Relations
Public
Public Relations
Relations
Communication
CommunicationMode
Mode Usually
Usuallyindirect,
indirect,non-personal
non-personal
Communication
CommunicationControl
Control Moderate
Moderatetoto low
low
Feedback
FeedbackAmount
Amount Little
Little
Feedback
FeedbackSpeed
Speed Delayed
Delayed
Message
MessageFlow
Flow Direction
Direction One-way
One-way
Message
MessageContent
Content Control
Control No
No
Sponsor
Sponsor Identification
Identification No
No
Reaching
ReachingLarge
LargeAudience
Audience Usually
Usuallyfast
fast
Message
MessageFlexibility
Flexibility Usually
Usuallyno
no direct
directcontrol
control
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Characteristics of 3
Sales Promotion
Sales
Sales Promotion
Promotion
Communication
CommunicationMode
Mode Usually
UsuallyIndirect
Indirect and
andnon-personal
non-personal
Communication
CommunicationControl
Control Moderate
Moderateto tolow
low
Feedback
FeedbackAmount
Amount Little
Littleto
to moderate
moderate
Feedback
FeedbackSpeed
Speed Varies
Varies
Message
MessageFlow
Flow Direction
Direction Mostly
Mostlyone-way
one-way
Message
MessageContent
Content Control
Control Yes
Yes
Sponsor
Sponsor Identification
Identification Yes
Yes
Reaching
ReachingLarge
LargeAudience
Audience Fast
Fast
Message
MessageFlexibility
Flexibility Same
Same message
messageto
to varied
varied target
target
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3
Characteristics of Personal Selling
Personal
Personal Selling
Selling
Communication
CommunicationMode
Mode Direct
Direct and
andface-to-face
face-to-face
Communication
CommunicationControl
Control High
High
Feedback
Feedback Amount
Amount Much
Much
Feedback
Feedback Speed
Speed Immediate
Immediate
Message
MessageFlow
Flow Direction
Direction Two-way
Two-way
Message
MessageContent
ContentControl
Control Yes
Yes
Sponsor
Sponsor Identification
Identification Yes
Yes
Reaching
ReachingLarge
LargeAudience
Audience Slow
Slow
Message
MessageFlexibility
Flexibility Tailored
Tailored to
to prospect
prospect
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4
Learning Objective

Explain the goal and tasks of promotion.

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4
Goals and Tasks of Promotion
Informing
Informing Reminding
Reminding

Target
Target
Audience
Audience

Persuading
Persuading
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4
Goals and Tasks of Promotion
Informing
Informing Reminding
Reminding

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

PLC Stages:
Growth
Maturity Persuading
Persuading
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4
Goals and Tasks of Promotion
Informative Objective
• Increase awareness

• Explain how product works

• Suggest new uses

• Build company image

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4
Goals and Tasks of Promotion
Persuasion Objective

• Encourage brand switching

• Change customers’ perception of


product attributes

• Influence buying decision

• Persuade customers to call

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4
Goals and Tasks of Promotion
Reminder Objective

• Remind customers that product


may be needed

• Remind customers where to buy product

• Maintain customer awareness

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5
Learning Objective

Discuss the AIDA concept


and its relationship to
the promotional mix.

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5
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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5
The AIDA Concept
Action
Desire

Interest

Attention
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5
AIDA and the Promotional Mix
Awareness
Awareness Interest
Interest Desire
Desire Action
Action

Very Very Somewhat Not


Not
Advertising effective effective effective effective
effective

Public
Public Very
Very Very
Very Very
Very Not
Not
Relations
Relations effective
effective effective
effective effective
effective effective
effective

Sales Somewhat Somewhat Very Very


Very
Promotion effective effective effective effective
effective

Personal Somewhat Very Very Somewhat


Somewhat
Selling effective effective effective effective
effective

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6
Learning Objective

Describe the factors that


affect the promotional mix.

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Factors Affecting the 6
Promotional Mix
Nature
Nature of
of Product
Product

Stage
Stage in
in PLC
PLC

Target
Target Market
Market Factors
Factors

Factors
Factors Type
Type of
of Buying
Buying Decision
Decision
Affecting
Affecting
Choice
Choice of
of Promotion
Promotion Funds
Funds
Promotional
Promotional Mix
Mix
Push
Push or
or Pull
Pull Strategy
Strategy
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6
Nature of the Product

Factors that influence promotional mix

 Product characteristics
– Business product vs. consumer product

 Costs and risks

 Social risk

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6
Stage in the Product Life Cycle

Maturity
Sales ($)

Introduction Growth Decline

Time

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Product Life Cycle and the 6
Promotional Mix
Maturity
Sales ($)

Decline
Introduction Growth

Time
Light Heavy use of Advertising, Ads AD/PR
Advertising, advertising, PR, Brand decrease. decrease
pre- PR for loyalty Sales Limited
introduction awareness; Personal Promotion, Sales
Publicity sales Selling for Personal Promotion,
promotion distribution Selling Personal
for trial Reminder & Selling for
Persuasive distribution
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6
Target Market Characteristics
FOR:
 Widely scattered market
 Informed buyers
 Repeat buyers

Advertising

Sales Promotion

Less Personal Selling


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6
Type of Buying Decision
Advertising
Routine
Routine
Sales Promotion
Type
Type of
of
Buying
Buying Decision
Decision Advertising
affects
affects Not
NotRoutine
Routine
Promotional
Promotional or
orComplex
Complex Public Relations
Mix
Mix Choice
Choice

Complex
Complex Personal Selling

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6
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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6
Push and Pull Strategies
PUSH STRATEGY

Manufacturer
Manufacturer Wholesaler
Wholesaler Retailer
Retailer Consumer
Consumer
promotes
promotesto
to promotes
promotesto to promotes
promotesto to buys
buysfrom
from
wholesaler
wholesaler retailer
retailer consumer
consumer retailer
retailer

Orders to manufacturer
PULL STRATEGY
Consumer
Consumer Retailer
Retailer Wholesaler
Wholesaler
Manufacturer
Manufacturer demands
demands demands
demands demands
demands
promotes
promotesto
to product
product product
product product
productfrom
from
consumer
consumer from
fromretailer
retailer from
fromwholesaler
wholesaler manufacturer
manufacturer

Orders to manufacturer
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7
Learning Objective

Discuss the concept of


integrated marketing communications.

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Integrated Marketing 7
Communications

A method of carefully
coordinating all promotional
activities to produce a
consistent, unified message
that is customer focused.

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7
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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