An Introduction to

Integrated Marketing
Communication
What is Promotion?
 Communication process in marketing
 It is used to create a favorable predisposition
toward brand concept, services, idea, or
person.
 Implementing the three other marketing mix
factors
 Achieving market segmentation, product
differentiation, and positioning
 Enhancing revenues and profits
Promotional Mix
 A blend of communication tools and activities
used by a firm
 Advertising
 Sales Promotion
 Publicity/Public Relations
 Direct Marketing
 Interactive/Internet marketing
 Personal Selling
Advertising
 Any paid form of non-personal
communication about an organization,
product, service or idea by an identified
sponsor.
10 Leading Advertisers in the
United States, 2006
Rank Advertiser Ad Spending (Millions)
1 Procter & Gamble 4,898
2 AT&T 3,345
3 General Motors Corp. 3,296
4 Time Warner 3,089
5 Verizon Communications 2,822
6 Ford Motor Co. 2,577
7 GlaxoSmithKline 2,444
8 Walt Disney Co. 2,320
9 Johnson & Johnson 2,291
10 Uniliver 2,098
20 Leading Advertisers in the
Taiwan, 2009
Major Decisions in Advertising
Advertising
Pros:
 Cost-effective for large audiences

 Differentiates between similar products, e.g.

Marlboro.
 Brand equity

 Empathizes with target audience

 Control of the message

Advertising
Cons:
 Media and production costs
 On average, U.S. advertisers pay $332,000 to
produce a single 30-second television
commercial; Nike’s “The Wall” – $2,000,000.
 25,000 ～ 40,000/10sec.
 Effectiveness difficult to judge
 Credibility and image problems
Sales Promotion
 Activities that provide extra value or incentive to the
sales force, distributors or the ultimate consumer
and can stimulate immediate sales.

Expenditure in Billions of Dollars

Advertising
Outside U.S.

U.S. Sales 2004

Promotion 1980

U.S. Advertising

$0 $50 $100 $150 $200 $250 $300 $350

Sales Promotion Tools

Coupons
Coupons
Samples
Samples Trade
Allowances
Premiums
Premiums
POP
POP Displays
Displays
Contests/Sweepstakes
Contests/Sweepstakes
Training
Training
Refunds/Rebates
Refunds/Rebates Programs
Programs
Bonus Packs
Bonus Packs Trade
Trade
Shows
Shows
Loyalty
Loyalty Programs
Programs
Coop
Cooperative
Events
Events Advertising
Advertising

• Consumer-oriented  Trade-oriented
• [For end-users]  [For resellers]
Various Uses of Sales
Promotion

Introduce Get
Get existing
existing
Introduce new
new customers
customers toto
products
products buy
buy more
more

Combat
Combat Attract
Attract new
new
Competition
Competition customers
customers
Sales
Sales
Promotion
Promotion
Enhance
Enhance Maintain
Maintain sales
sales in
in
personal
personal selling
selling off
off season
season

Tie
Tie in
in Increase
Increase retail
retail
advertising
advertising & &
personal inventories
inventories
personal selling
selling
Sales Promotion
 Pros:
 Extra incentive to consumer or retailer
 Appeals to price sensitive consumer
 Generates interest in product or ad
 Easier to measure, e.g. 7-11 Hello Kitty: revenue↑11.82%,
profits↑29.33%.
 Cons:
 Short-run strategy
 Affects brand image, brand equity
 Stock problem
Public Relations
 Building good relations with the company’s
various publics by obtaining favorable
publicity, building up a good corporate image,
and handling or heading off unfavorable
rumors, stories, and events.
 News stories, features, sponsorships, and
events seem more real and believable to
readers than ads do.
Megamarketing ( 巨行銷 )
 Megamarketing is the strategic coordination
of economic, psychological, political, and
public relations skills, to gain the cooperation
of a number of parties in order to enter or
operate in a given market.
 4Ps + 2Ps (politics & public opinions)
 Examples: PepsiCo in India, Harley-
Davidson.
Public Relations Tools

Publicity Special
Vehicles Publications

Community Corporate Cause-related

Activities Advertising
Advertising Marketing

Public Affairs Special Event

Activities Sponsorship
Cause-related Marketing ( 公益
行銷 , 善因行銷 )
 Link the firm’s contributions to a designated cause
to customers’ engaging directly or indirectly in
revenue-producing transactions with the firm
 The creation of the term "cause-related marketing"
is attributed to American Express.
 Some experts believe that the positive impact on a
brand from cause-related marketing may be
lessened by sporadic involvement with numerous
causes.
 Branding: self-branded, co-branded, and jointly-
branded.
Public Relations
 Pros:
 Credibility
 Low cost
 News value generating word-of-mouth
 Cons:
 Lack of control
 Negative as well as positive
Publicity ( 公關宣傳 )
 Nonpersonal communications regarding an
organization, product, service, or idea not
directly paid or run under identified
sponsorship.
 It usually comes in the form of a news story,
editorial, or announcement about an
organization and/or its products and services.
Publicity Vehicles

Feature
Feature
Articles
Articles

News
News Interviews
Interviews
Interviews
Releases
Releases Publicity
Publicity
Vehicles
Vehicles

Press
Press Special
Special
Conferences
Conferences Events
Events
Advertising vs. Publicity
Factor
Factor Advertising
Advertising Publicity
Publicity
Control
Control Great
Great Little
Little
Credibility
Credibility Lower
Lower Higher
Higher
Reach
Reach Measurable
Measurable Undetermined
Undetermined
Frequency
Frequency Schedulable
Schedulable Uncontrollable
Uncontrollable
Cost
Cost High/Specific
High/Specific Low/Unspecified
Low/Unspecified

Flexibility
Flexibility High
High Low
Low
Timing
Timing Specifiable
Specifiable Tentative
Tentative
Direct Marketing
 Direct connections with carefully targeted
individual consumers to both obtain an
immediate response and cultivate lasting
customer relationships.
 Four characteristics: nonpublic, immediate,
customized, and interactive.
Direct Marketing
Direct
Direct
Mail
Mail
Direct
Direct
Internet
Internet Response
Response
Sales
Sales Advertising
Advertising
Direct
Direct
Marketing
Marketing
Shopping
Shopping Telemarketing
Telemarketing
Channels
Channels

Catalogs
Catalogs
Direct Marketing
 Pros:
 Convenience for consumers
 Selectivity of audience
 Tailored/ customized communications
 Easier to measure effects
 Cons:
 Direct mail and telemarketing – too much
 “Junk mail” image
Personal Selling
 Personal presentation by the firm’s sales force for
the purpose of making sales and building customer
relationships.
 Pros:
 Communication flexibility
 Customized to consumer
 Feedback
 Specific targeting
 Cons:
 High cost per contact
 Not cost-effective for large audience
 Low consistency of message
Creative of Outdoor Advertising