Lamb, Hair, McDaniel 2010-2011

CHAPTER 16
Integrated Marketing
Communications

1
 Learning Outcomes

LO 1 Discuss the role of promotion in the

marketing mix

LO 2 Discuss the elements of the promotional mix

LO 3 Describe the communication process

LO 4 Explain the goal and tasks of promotion

2
 Learning Outcomes

LO 5 Discuss the AIDA concept and its

relationship to the promotional mix

LO 6 Describe the factors that affect the

promotional mix

LO 7 Discuss the concept of integrated marketing

communications
3
 The Role of Promotion in
the Marketing Mix

Discuss the role of

promotion in the
marketing mix

LO1 4
 The Role of Promotion

Promotional
Strategy

A plan for the optimal use of

the elements of promotion:
 Advertising
 Public Relations
 Sales Promotion
 Personal Selling

LO1 5
 The Role of Promotion
in the Marketing Mix
Overall
Promotional Mix
Marketing
Objectives • Advertising
• Public Relations
Marketing Mix • Sales Promotion
• Personal Selling
• Product
• Place
• Promotion
• Price

Target Market
Promotion Plan

LO1 6
 Competitive Advantage
High product quality

Rapid delivery

Low prices

Excellent service

Unique features

LO1 7
 The Role of Promotion
in the Marketing Mix

LO1 8
 The Promotional Mix

Discuss the
elements of the
promotional mix

LO2 9
 The Promotional Mix

ti o nal
r omo
P
Mix
Combination of promotion
tools used to reach the target
market and fulfill the
organization’s overall goals.

 Advertising
 Public Relations
 Sales Promotion
 Personal Selling

LO2 10
 The Promotional Mix

ng Most commonly distributed

rt i s i
Adve by traditional media, though
increasingly through non-
traditional media, such as
Web sites, e-mail, and blogs.

LO2 11
 Advertising Media

Traditional
Advertising Media

 Television New
Advertising
 Radio Media
 Newspapers
 Magazines
 Books
 Internet
 Direct mail
 Banner ads
 Billboards
 Viral marketing
 Transit cards
 E- mail
 Interactive video
LO2 12
 Advertising
Advantages Disadvantages

 Reach large number  Total cost is high

of people
 National reach is
 Low cost per expensive for small
contact companies

 Can be micro-
targeted

LO2 13
 Public Relations

ub l i c
P s Helps an organization communicate
ti o n
Rela with customers, suppliers,
stockholders, government officials,
employees, and the community.

LO2 14
 The Function
of Public Relations

 Ma
intain
a posi
 Ed tive im
ucate age
compa t h e publ
ny’s ob ic abo
 Intr jective ut the
oduce s
 Su new p
pport t roduct
s
he sal
 Ge es effo
nerate rt
favora
ble pu
blicity

LO2 15
 Sales Promotion

Sales n Marketing activities—other than

m otio
Pro personal selling, advertising, and
public relations—that stimulate
consumer buying and dealer
effectiveness.

LO2 16
 Sales Promotion
Free samples End
Consumers
Contests

Premiums
Company
Employees
Trade Shows

Vacation Giveaways
Trade
Customers
Coupons

LO2 17
 Personal Selling

s o n al
Per Planned presentation to one or
e l l i ng
S more prospective buyers for
the purpose of making a sale.

LO2 18
 Personal Selling
Attempts to persuade the
Traditional buyer into a specific point of
Selling view. Win-lose outcome.

Long-term relationships,
Relationship create a win-win outcome
Selling

LO2 19
 Elements of the Promotional Mix

LO2 20
 Marketing Communication

Describe the
communication
process

LO3 21
 Communication

Communication

The process by which meanings are

exchanged or shared through a
common set of symbols.

LO3 22
Marketing Communication

Categories of
Communication

Interpersonal Mass
Communication Communication

LO3 23
Marketing Communication

As Senders As Receivers

 Inform  Develop messages

 Persuade  Adapt messages

 Remind  Spot new

communication
opportunities

LO3 24
The Communication Process
Noise

Encoding Message Decoding

Sender Receiver
Message Channel Message

Feedback
Channel
LO3 25
Characteristics of the Elements
in the Promotional Mix

LO3 26
 Characteristics of the Elements
in the Promotional Mix

Advertising
Communication Mode Indirect and impersonal
Communication Control Low
Feedback Amount Little
Feedback Speed Delayed
Message Flow Direction One-way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Fast
Message Flexibility Same message to all audiences

LO3 27
 Characteristics of the Elements
in the Promotional Mix

Public Relations
Communication Mode Usually indirect, impersonal
Communication Control Moderate to low
Feedback Amount Little
Feedback Speed Delayed
Message Flow Direction One-way
Message Content Control No
Sponsor Identification No
Reaching Large Audience Usually fast
Message Flexibility Usually no direct control

LO3 28
 Characteristics of the Elements
in the Promotional Mix

Sales Promotion
Communication Mode Usually indirect and impersonal
Communication Control Moderate to low
Feedback Amount Little to moderate
Feedback Speed Varies
Message Flow Direction Mostly one-way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Fast
Message Flexibility Same message to varied target

LO3 29
 Characteristics of the Elements
in the Promotional Mix

Personal Selling
Communication Mode Direct and face-to-face
Communication Control High
Feedback Amount Much
Feedback Speed Immediate
Message Flow Direction Two-way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Slow
Message Flexibility Tailored to prospect

LO3 30
 Web 2.0
• Blogs (online journals)
• Podcasting (online radio)
• Vodcasts (online videos)
• Social Networks (Facebook, MySpace,
Twitter)

LO3 31
 Blogging

Sponsored by a company or
Corporate one of its brands and
Blogs maintained by one or more of
the company’s employees.

Independent and not

Noncorporate associated with the
Blogs marketing efforts of any
particular company or brand.

LO3 32
 The Communication Process

Sender Feedback channel Receiver

Message to Message that

be conveyed was understood

Encode Decode
message message

Transmit Receive
message message
LO3 Message channel
33
 The Goals and Tasks
of Promotion

Explain the goals and

tasks of promotion

LO4 34
 Goals and Tasks of
Promotion
Informing Reminding

Target
Audience

Persuading

LO4 35
 Goals and Tasks of
Promotion
Informing Reminding

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

LO4 36
 Goals and Tasks of
Promotion
Informative Promotion

 Increase awareness

 Explain how product works

 Suggest new uses

 Build company image

LO4 37
 Goals and Tasks of
Promotion
Persuasive Promotion

 Encourage brand switching

 Change customers’ perceptions of

product attributes

 Influence immediate buying decision

 Persuade customers to call

LO4 38
 Goals and Tasks of
Promotion
Reminder Promotion

 Remind customers that product

may be needed

 Remind customers where

to buy product

 Maintain customer awareness

LO4 39
 Barbie in China

With Barbie’s U.S. sales diminishing, Mattel moved

into China in a grand way. They opened a six-
story Barbie life-style store in Shanghai, which
includes a spa, café, bar, and racks of Barbie
Clothing.
Mattel is aiming Barbie toward a new audience:
club-age young women. By introducing Barbie
into a culture unfamiliar with her, Mattel has the
opportunity to expand Barbie’s appeal.
Source: Rein, Shaun. “Barbie Goes to China,” Forbes.com, March 9, 2009.

LO4 40
 Promotional Goals
and the AIDA Concept

Discuss the AIDA

concept and its
relationship to the
promotional mix

LO5 41
 The AIDA Concept

AIDA Model that outlines the process for

Concept achieving promotional goals in
terms of stages of consumer
involvement with the message.
Attention
Interest
Desire
Action

LO5 42
 The AIDA Concept

Action

Desire Conative (doing)

Interest Affective (feeling)

Attention Cognitive (thinking)

LO5 43
 The AIDA Concept

LO5 44
 Factors Affecting the
Promotional Mix

Describe the factors

that affect the
promotional mix

LO6 45
 Factors Affecting the
Choice of Promotional Mix
Nature of the product

Stage in PLC

Target market factors

Type of buying decision

Promotion funds

Push or pull strategy

LO6 46
Stage in the Product Life Cycle

Maturity
Sales ($)

Decline
Introduction Growth

Time
Light Heavy use of Advertising, Ads decrease; AD/PR
Advertising; Advertising; PR, brand sales decrease;
pre- PR for loyalty; promotion; limited
introduction awareness; personal personal sales
publicity sales selling for selling; promotion;
promotion distribution reminder & personal
for trial persuasive selling for
distribution
LO6 47
 Target Market
Characteristics
For…
Advertising  Widely scattered
market
Sales Promotion  Informed buyers
 Brand-loyal repeat
Less Personal Selling purchasers

LO6 48
Type of Buying Decision
Advertising
Routine
Sales Promotion

Advertising
Neither Routine
nor Complex
Public Relations

Personal Selling
Complex
Print Advertising

LO6 49
 Available Funds

 Trade-offs with funds available

 Number of people in target market
 Quality of communication needed
 Relative costs of promotional
elements

LO6 50
 Push and Pull Strategies
PUSH STRATEGY

Manufacturer Wholesaler Retailer Consumer

promotes to promotes to promotes to buys from
wholesaler retailer consumer retailer

Orders to manufacturer

PULL STRATEGY
Consumer Retailer Wholesaler
Manufacturer
demands demands demands
promotes to
product product product from
consumer
from retailer from wholesaler manufacturer

Orders to manufacturer

LO6 51
 Factors Affecting Promotional Mix

Nature of
the product

Push Product
or pull Promotional life
strategy Mix cycle
% Advertising
% Public Relations
% Sales Promotion Target
Funds % Personal Selling market
available character-
istics
Type of
buying decision
LO6 52
 Integrated Marketing
Communications

Discuss the concept

of integrated
marketing
communications

LO7 53
 Integrated Marketing
Communications
Integrated
Marketing
Communications

The careful coordination of all promotional

messages to assure the consistency of
messages at every contact point where a
company meets the consumer.

LO7 54
 IMC Popularity Growth
Proliferation of thousands of media
choices

Fragmentation of the mass market

Slash of advertising spending in favor of

promotional techniques that generate
immediate response

LO7 55
Integrated Marketing Communications

LO7 56