2002 South-Western Chapter 14 Version 6e 1

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Integrated Marketing
Communications
14
Prepared by
Deborah Baker
Texas Christian University
2002 South-Western Chapter 14 Version 6e 2
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Learning Objectives
14

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

2. Discuss the elements of the promotional
mix.

3. Describe the communication process.
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Learning Objectives (continued)
14

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

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Promotion
1
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
1
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
1
Promotional Mix

Advertising
Public Relations
Personal Selling
Sales Promotion






Promotion Plan
Overall
Marketing
Objectives
Marketing Mix
Product
Distribution
Promotion
Price
Target Market
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Differential Advantage
Unique Features
Excellent Service
Low Prices
Rapid Delivery
High Product Quality
Features
that provide
Differential
Advantage

1
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Learning Objective
2
Discuss the elements
of the promotional mix.

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Promotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizations
overall goals.
Advertising
Public Relations
Personal Selling
Sales Promotion
2
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Promotional Mix
Advertising
Elements
of the
Promotional
Mix
Public Relations
Personal Selling
Sales Promotion
2
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Advertising
Impersonal, one-way
mass communication
about a product or
organization that is
paid for by a marketer.
2
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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

2
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Advertising
Advantages

Ability to reach large
number of people

Cost per contact is low

Can be micro-targeted
Disadvantages

Total cost is high
2
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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.
2
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Public Relations
Evaluates public
attitudes
Identifies areas
of public interest
Executes
programs to
win public
Functions of
Public Relations
2
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Publicity
2
Public information about a
company, good, or service
appearing in the mass media
as a news item.
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Sales Promotion
2
Marketing activities--other
than personal selling,
advertising, and public
relations--that stimulate
consumer buying and
dealer effectiveness.
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Sales Promotion
End
Consumers
Trade Customers
Company
Employees
Sales Promotion
Targets
2
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Sales Promotion
Free samples
Contests
Premiums
Trade Shows
Vacation Giveaways
Coupons


Popular Tools
for
Consumer Sales
Promotion

2
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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
2
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Learning Objective
Describe the
communication process.
3
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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
3
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The Communication Process
As Senders As Receivers
Inform

Persuade

Remind
Develop messages

Adapt messages

Spot new
communication
opportunities
3
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The Sender and Encoding
3
Sender
The originator of the message in the
communication process.
Encoding

The conversion of a senders ideas
and thoughts into a message, usually
in the form of words or signs.

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The Communication Process
Noise
Sender
Encoding
Message
Message
Channel
Message
Channel
Decoding
Message
Receiver
3
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Characteristics of Advertising
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Advertising
Indirect and non-personal
Low
Little
Delayed
One-way
Yes
Yes
Fast
Same message to all audiences
3
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Characteristics of Public Relations
3
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Public Relations
Usually indirect, non-personal
Moderate to low
Little
Delayed
One-way
No
No
Usually fast
Usually no direct control
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Characteristics of
Sales Promotion
3
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Sales Promotion
Usually Indirect and non-personal
Moderate to low
Little to moderate
Varies
Mostly one-way
Yes
Yes
Fast
Same message to varied target
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Characteristics of Personal Selling
3
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Personal Selling
Direct and face-to-face
High
Much
Immediate
Two-way
Yes
Yes
Slow
Tailored to prospect
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Learning Objective
Explain the goal and tasks of promotion.

4
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Goals and Tasks of Promotion
Informing






Reminding










Persuading
Target
Audience
4
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Goals and Tasks of Promotion
Informing






Reminding










Persuading
Target
Audience
PLC Stages:
Introduction
Early Growth
PLC Stages:
Growth
Maturity
PLC Stages:
Maturity
4
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Goals and Tasks of Promotion
Informative Objective

Increase awareness

Explain how product works

Suggest new uses

Build company image

4
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Goals and Tasks of Promotion
Persuasion Objective

Encourage brand switching

Change customers perception of
product attributes

Influence buying decision

Persuade customers to call
4
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Goals and Tasks of Promotion
Reminder Objective

Remind customers that product
may be needed

Remind customers where to buy product

Maintain customer awareness
4
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Learning Objective
Discuss the AIDA concept
and its relationship to
the promotional mix.

5
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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.
5
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The AIDA Concept
Attention
Interest
Desire
Action
5
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AIDA and the Promotional Mix
Awareness Interest Desire Action
Advertising
Very
effective
Very
effective
Somewhat
effective
Not
effective
Public
Relations
Very
effective
Very
effective
Very
effective
Not
effective
Sales
Promotion
Somewhat
effective
Somewhat
effective
Very
effective
Very
effective
Personal
Selling
Somewhat
effective
Very
effective
Very
effective
Somewhat
effective
5
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Learning Objective
6
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
Type of Buying Decision
Promotion Funds
Push or Pull Strategy
Factors
Affecting
Choice of
Promotional Mix

6
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Nature of the Product
6
Product characteristics
Business product vs. consumer product

Costs and risks

Social risk

Factors that influence promotional mix
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Stage in the Product Life Cycle
6
Time
Introduction
Growth
Maturity
Decline
S
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Product Life Cycle and the
Promotional Mix
Light
Advertising,
pre-
introduction
Publicity
Heavy use of
advertising,
PR for
awareness;
sales
promotion
for trial
AD/PR
decrease
Limited
Sales
Promotion,
Personal
Selling for
distribution
Ads
decrease.
Sales
Promotion,
Personal
Selling
Reminder &
Persuasive
Advertising,
PR, Brand
loyalty
Personal
Selling for
distribution

Introduction
Growth
Maturity
Decline
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Time
6
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Target Market Characteristics
6
FOR:
Widely scattered
market
Informed buyers
Repeat buyers



Advertising
Sales Promotion
Less Personal Selling
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Type of Buying Decision
Advertising
Sales Promotion
Type of
Buying Decision
affects
Promotional
Mix Choice
Complex
Routine
Personal Selling
Not Routine
or Complex
Advertising
Public Relations
6
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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
6
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Push and Pull Strategies
Manufacturer
promotes to
wholesaler
Wholesaler
promotes to
retailer
Retailer
promotes to
consumer
Consumer
buys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturer
promotes to
consumer
Consumer
demands
product
from retailer
Retailer
demands
product
from wholesaler

Wholesaler
demands
product from
manufacturer

Orders to manufacturer
PULL STRATEGY
6
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Learning Objective
Discuss the concept of
integrated marketing communications.


7
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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.
7
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IMC Popularity Growth
7
Proliferation of thousands of media
choices
Fragmentation of the mass market
Slash of advertising spending in favor
of promotional techniques