FUNBUS •When coding meaning into a message, the

source must consider certain characteristics of

the receiver or audience
Integrated Marketing Communications

Communication Process
Integrated Marketing Communications- refers
•To share a coded meaning with the receiver or
to the coordination of promotion and other
audience, a source selects and uses a
marketing efforts to ensure maximum
communications channel, the medium of
informational and persuasive impact on
transmission that carries the coded message from
customers.
the source to the receiver or audience.
•Transmission media include printed words
Integrated Marketing Communications
(newspaper and magazines), broadcast media
•Marketers can now take advantage of more
(TV and radio), and digital communication.
precisely targeted promotional tools, such as TV,
direct mail, the Internet, special interest
•In the decoding process, signs or symbols are
magazines, DVDs, smart phones, mobile
converted into concepts and ideas.
applications, social media, and outdoor boards.
•Seldom does a receiver decode exactly the same
Database marketing and marketing analytics
meaning the source intended.
are also allowing marketers to more precisely
•When the result of decoding differs from what
target individual customers
was coded, noise exists.
•The concept of integrated marketing
•Noise is anything that reduces the clarity and
communications is increasingly effective for
accuracy of the communication; it has many
several reason, Mass media advertising, a very
sources and may affect any or all parts of the
popular promotional method in the past, is
communication process.
used less frequently today because of its high
cost and lower effectiveness in reaching target
•The receiver’s response to a decoded message is
markets
feedback.
•The source usually expects and normally
Communication Process
receives a feedback, although perhaps not
•Communication is the transmission of
immediately.
information.
•During feedback, the receiver or audience
•Communication is a sharing of meaning.
provides the original source with a response to
•Communication begins with a source. A
the message.
source is a person, group, or organization with a
•Feedback is coded, sent through a
meaning it attempts to share with an audience.
communications channel, and decoded by the
receiver
Ex. a source could be an electronics salesperson
wishing to communicate the attributes of 4D
The role and objectives of Promotion
television to a buyer in a store or a TV
Promotion- is communication that builds and
manufacturer using television ads to inform
maintains favorable relationships by informing
thousands of customers about its products
and persuading one or more audiences to view an
organization positively and accept its products.
Communication Process
•A receiver is the individual, group, or
Objectives of Promotion
organization that decodes a coded message, and
Create Awareness- a considerable amount of
an audience is two or more receivers.
promotion efforts focus on creating awareness.
•To transmit meaning, a source must convert the
Ex. Introducing new products, or creating
meaning into a series of signs or symbols
awareness for existing products
representing ideas or concepts. This is called the
coding process, or encoding.
Stimulate Demand
• When an organization is the first to introduce
an innovative product, it tries to stimulate
primary demand – demand for a product
category rather than a specific brand of product
through pioneer promotion.
• Pioneer promotion informs potential
customers about the product: what it is, what it
does, how it can be used, and where it can be
purchased.
• To build Selective demand, a demand for a
specific brand, a marketer employs promotional
efforts that point out the strengths and benefits of
a specific brand. Building selective demand also
requires singling out attributes important to
potential buyers.
• Selective demand can be stimulated by
differentiating the product from competing
brands in the minds of potential buyers.
Encourage Product Trial
•When attempting to move customers through
the product adoption process, a marketer may
successfully create awareness and interest, but
customers may stall during the evaluation stage.
•In this case, certain types of promotion – such
as free samples, coupons, test drives, or limited
free-use offers, contests, and games – are
employed to encourage product trial.
Identify Prospects
•Certain types of promotional efforts aim to
identify customers who are interested in the
firm’s products and are likely potential buyers.
•A marketer may run a television advertisement
encouraging the viewer to visit the company’s
website and share personal information in order
to receive something of value from the company.
•Customers who respond to such a message
usually have higher interest in the product, which
makes them likely sales prospects.
•The organization can respond with phone calls,
e-mail, or personal contact by salespeople.
Retain loyal customers
•Clearly, maintaining long-term customer
relationships is a major goal of most
marketers.
•Such relationships are quite valuable.
•Promotional efforts directed at customer
retention can help an organization control its
costs, because the costs of retaining customers
are usually considerably lower than those of
acquiring new ones
Facilitate reseller support
•Reseller support is a two-way street:
producers generally want to provide support to
resellers to assist in selling their products, and in
turn they expect resellers to support their
products.
•When a manufacturer advertises a product to
consumers, resellers should view this promotion
as a form of strong manufacturer support.
Combat competitive promotional efforts
•At times, a marketer’s objective in using
promotion is to offset or lessen the effect of a
competitor’s promotional or marketing
programs.
•This type of promotional activity does not
necessarily increase the organization’s sales and
market share, but it may prevent a sales or
market share loss.
Reduce Sales fluctuations
•Demand for many products varies from one
month to another because of such factors as
climate, holidays, and seasons.
•A business, however, cannot operate at peak
efficiency when sales fluctuate rapidly.
•Changes is sales volume translate into changes
in production, inventory levels, personnel needs,
and financial resources.
Promotion Mix
•Several promotional methods can be used to
communicate with individuals, groups, and
organizations.
•When organizations combines specific methods
to manage the integrated marketing
communications for a particular product, that
combination constitutes the promotion mix for
that product.
•The four possible elements of a promotion mix
are advertising, personal selling, public
relations, and sales promotion.
Advertising
Advertising- is a paid non-personal
communication about an organization and its
products transmitted to a target audience through
mass media, including television, radio, the
Internet, newspapers, magazines, video games,
direct mail, outdoor displays, and signs on mass
transit vehicles.
Advertising offers several benefits.
• Extremely cost-efficient when it reaches a vast
number of people at a low cost per person
• Lets the source repeat the message several
times
• Advertising can add to the product’s value, and
visibility of the organization; and enhance its
image
Advertising has its disadvantages as well.
• High cost can limit and sometimes preclude,
use of advertising in the promotion mix
• Advertising rarely provides feedback
Personal Selling
Personal Selling- is a paid personal
communication that seeks to inform customers
and persuade them to purchase in an exchange
situation.
Personal selling has advantages
• Involves more specific communication directed
at one or several individuals
• It may be more costly to reach one person, but
it has greater impact on customers
• Provides immediate feedback
Public Relations
• Promotional activities towards the firm’s other
stakeholders –suppliers, employees,
stockholders, the media, educators, potential
investors, government officials, and society in
general – are also important to an organization as
well.
• Public relations- is a broad set of
communication efforts used to create and
maintain favorable relationships between an
organization and its stakeholders.
• Maintaining a positive relationships with one or
more stakeholders can affect a firm’s current
sales and profits, as well as its long-term
survival.
Ex. Annual reports, brochures, event
sponsorship, and support of socially responsible
programs aimed at protecting the environment or
helping disadvantaged individuals.
• The goal of public relations is to create and
enhance a positive image of the organization.
Sales Promotion
Sales promotion- is an activity or material that
acts as a direct inducement, offering added value
or incentive for the product to resellers,
salespeople, or consumers.
•Ex. Free samples, games, rebates, sweepstakes,
contests, premiums, and coupons
Advertising and Public Relations
The nature and types of advertising
Advertising- paid nonpersonal communication
about an organization and its products
transmitted to a target audience through mass
media
Institutional advertising- advertising that
promotes organizational images, ideas, and
political issues
Advocacy advertising- advertising that
promotes a company’s position on a public issue
Product advertising- advertising that promotes
the uses, features, and benefits of products
Pioneer advertising- advertising that tries to
stimulate demand for a product category rather
than a specific brand by informing potential
buyers about the product
Competitive advertising- advertising that tries
to stimulate demand from a specific brand by
promoting its features, uses, and advantages
relative to competing brands
Comparative advertising- advertising that
compares the sponsored brand with one or more
identified brands on the basis of one or more
product characteristics
Reminder advertising- advertising used to
remind consumers about an established brand’s
uses, characteristics, and benefits
Reinforcement advertising- advertising that
assures users they choose the right brand and
tells them how to get the most satisfaction from
it
Native advertising- digital advertising that
matches the appearance and the purpose of the
content in which it is embedded
Developing an advertising campaign
Advertising campaign- the creation and
execution of a series of advertisements to
communicate with a particular target audience
1. Identifying and analyzing the target audience
2. Defining the advertising objectives
3. Creating the advertising platform
4. Determining the advertising appropriation
5. Developing the media plan
6. Creating the advertising message
7. Executing the campaign
8. Evaluating advertising effectiveness
1. Identifying and analyzing the target
audience
Target audience- the group of people at whom
advertisements are aimed
2. Defining the advertising objectives
• The advertiser’s next step is to determine what
the firm hopes to accomplish with the campaign
• Advertising objectives guide the campaign
development, advertisers should define
objectives carefully
• Advertising objectives should be stated clearly,
precisely, and in measurable terms
3. Creating the advertising platform
Advertising platform- basic issues or selling
points to be included in an advertising campaign
4. Determining the advertising appropriation
Advertising appropriation- the advertising
budget from a specific time period
Objective-and-task approach- budgeting for an
advertising campaign by first determining its
objective and then tasks needed to attain them
Percent-of-sales approach- budgeting for an
advertising campaign by multiplying the firm’s
past and expected sales by a standard percentage
Competition-matching approach- determining
an advertising budget by trying to match
competitor’s advertising outlays
Arbitrary approach- budgeting for an
advertising campaign as specified by a high-level
executive in the firm
5. Developing the media plan
Media plan- a plan that specifies the media
vehicles to be used and the schedule for running
advertisements
Cost comparison indicator- a means of
comparing the costs of advertising vehicles in a
specific medium in relation to the number of
people reached
6. Creating the advertising message
Regional issue- versions of a magazine that
differs across geographic regions
Copy- the verbal portion of advertisements
Storyboard- a blueprint that combines copy and
visual material to show the sequence of major
scenes in a commercial
Artwork- an advertisement’s illustrations and
layout
Illustrations- photos, drawings, graphs, charts,
and tables used to spark audience interest in an
advertisement
Layout- the physical arrangement of an
advertisement’s illustration and copy
7. Executing the campaign
• Execution of an advertising campaign requires
extensive planning and coordination, because
many tasks must be completed on time and
several people and firms are involved

8. Evaluating advertising effectiveness
Pretest- evaluation of advertisements performed
before a campaign begins
Consumer jury- a panel of a product’s existing
or potential buyers who pretest ads
Posttest - evaluation of advertising effectiveness
after the campaign
Recognition test - a posttest in which
respondents are shown the actual ad and are
asked if they recognize it
Aided recall test - a posttest that asks
respondents to identify recent ads and provides
clues to jog their memories
Who develops the advertising campaign?
Public relations- communication efforts used to
create and maintain favorable relations between
an organization and its stakeholders
Public relation tools
Publicity- a news story type of communication
about an organization and/or its products
transmitted through a mass medium at no charge
News release- a short piece of copy publicizing
an event or a product
Feature article- a manuscript of up to 3,000
words prepared for a specific publication
Captioned photograph- a photograph with a
brief description of its contents
Press conference- a meeting used to announce
major news events
Evaluating public relations effectiveness
Environmental monitoring - identifies changes
in public opinion affecting an organization
Public relations audit - used to assess an
organization’s image among the public or to
evaluate the effect of a specific public relations
program
Communications audit - may include a content
analysis of messages, a readability study or a
readership survey
Dealing with unfavorable public relations
• Companies may have to deal with unexpected
and unfavorable publicity resulting from an
unsafe product, an accident resulting from
product use,
controversial actions of employees, or some
other negative event or situation
• To protect its image, an organization needs to
prevent unfavorable public relations or at least
lessen its effect if it occurs
• First and foremost, the organization should try
to prevent negative incidents and events through
safety programs, inspections, training, and
effective quality control processes
Information Technology and E - commerce
Information Technology and The Managers
Job
•Information technology changes the work
methods of workers in a wide variety of jobs.
• Management must build an organization that
constantly transform itself as information
technology increases competition.
• To remain competitive requires innovation.
Increase Demand Placed on Managers
•From the perspective of work methods, the
landscape of a manager’s job looks
substantially different. Instead of handing work
to an office assistant, the manager now types,
sends, and receives his or her own messages and
makes appointments on a personal digital
assistant or smart phone.
Increased Demands Placed on Managers
•Another general issue with technology,
including information technology, is how the
development and spread of the new technology
increases the importance of innovating to
remain competitive.
The Wireless Environment, Including Wi-Fi
•A specific, direct consequence of information
technology comes from managers’ use of
wireless communication devices to facilitate
their work from different locations.
• For almost a century, managers used wired
telephones to stay in touch with the office.
•In the modern environment, rapidly evolving
devices give managers more constant access to
the office and to customers
Positive Consequence of IT for the Managers
• Improved Productivity and Teamwork
• Increased Competitive Advantage (or Avoiding
Competitive Disadvantage)
• Enhanced Business Models
• Improved Customer Service and Supplier
Relationships
• Enhanced Communication and Coordination,
Including the VirtualOffice (microblogging, e-
leadership)
• Quick Access to Vast Information (Intranet)
• Enhanced Analysis of Data and Decision
Making (wiki)
• Greater Empowerment and Flatter
Organizations
• Time Saving Through Employee Self-service
• Monitoring Work and Employee Surveillance
Negative Consequence of IT for Managers
• Wasting time at the computer ( computer goof-
oofs)
• Repetitive-motion disorders
• Deterioration of customer service
• Dealing with baffled consumers
• Wired managerial workers
• The encouragement of nonproductive
multitasking
• Excessive requirements to learn and adapt to
newcommunication technologies
Information Technology
• Extranet - A secure section of a Web site that
only visitors with a password can enter
• Virtual office Employees who work together as
if they were part of a single office despite being
physically separated
• Microblogging Sending brief updates about
work activities to employees
• E-leadership Providing leadership to people
when their work is mediated by information
technology.
Information Technology
• Intranet (or company intranet)- A Web site
for company use only.
•Wiki - A password-protected Web page that
allows for collaboration of multiple users.
• Computer goof-offs - Employees who spend
so much time attempting new computer routines
and accessing information of questionable value
that they neglect key aspects of their job
The Social Media and Customer
Relationships
•A substantial change in managing customer
relationships in recent years has been contacting
them through social networking Web sites, now
usually referred to as the social media.
•Major purpose of social networking for
business is to establish a means for people to
connect to the company’s brand.
The Purchasing Side of e-Commerce
•An important consequence of e-commerce is
that it sometimes enables companies to purchase
more efficiently than they could by speaking to
sales representatives or purchasing through
catalogs over the telephone
• Many companies assume that both customers
and suppliers prefer to conduct business with
them over the Internet.
Changing of Intermediaries
•The Internet has made it easier for buyers and
sellers to deal directly with each other. As a
result, many business firms that acted as
intermediaries between buyers and sellers have
been forced out of business or have had to
redefine themselves.
The Enhancement of Globalization
•The Internet is a driving force in globalization
for several reasons. E-mail and Web sites
allow for rapid communication with business
partners throughout the world
Integrating the New Economy with the Old
Economy
•Managers at all levels face the challenge of how
to integrate the traditional way of doing business
(the old economy) with e-business (the new
economy), sometimes referred to as the
difference between bricks and clicks

The Effects of Internet on Internal Operation

• Work streamlining- eliminating as much low-
value work as possible and concentrating on
activities that add value for customers or clients.
• Data mining- The extraction of useful
analyses from the raw mass of business
transactions and other information.
• Cloud computing
(a) moving data and software from computer
hard drives to the virtual storage space on the
Internet and
(b) the vast array of interconnected machines
managing the data and software that were
formerly run on desktop computer

Successful Factors of E - Commerce

• Develop an excellent call center to allow for
the human touch.
•Keep customers informed about order progress
• Constantly monitor and update the e-business
system
•Mix bricks and clicks
•Develop a global presence
•Protect customers against fraud