Integrated Marketing

Communications:

Advertising,
Promotions.
And Other MarCom
Tools
Marketing Dictionary
• Promotion.
Function of informing,
persuading, and influencing a
consumer’s purchase
decision.
• Marketing Communications
Messages that deal with
buyer-seller relationships.
• Integrated Marketing
Communications (IMC).
Coordination of all
promotional activities to
produce a unified, customer-
focused promotional
message.
Goals and Tasks of Promotion
Informative Objective
• Increase awareness
• Explain how product works
• Suggest new uses
• Build company image
Persuasion Objective
• Encourage brand switching
• Change customers’ perception
of product attributes
• Influence buying decision
• Persuade customers to call
Reminder Objective
• Remind customers that
product may be needed
• Remind customers where to
buy product
• Maintain customer awareness
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
 Communication Process
Message Channel Receiver

Encoding Decoding
Noise

Source Feedback
 Communication Process
Source
• The marketer
• The sender of the message
Encoding
• Designing of advertisements,
sales presentations,
P-O-P displays, etc.
• Translation of the message into
symbolic form
Message
• Actual advertisement that
contains the intended message
• Symbolic expression of the
sender’s thoughts
Channel
• Television, radio, print media,
telephone, direct mail, etc.
• Path through which the
message moves to get to the
receiver
Receiver
• Person or groups of persons for
whom the message is intended
Decoding
• Process receiver uses to interpret
the meaning of the message
Feedback
• Marketing research, market share
changes, sales reports
• Attitude changes, purchase or non-
purchase
• Gauge of effectiveness of
communication techniques
Noise
• Interference at some stage in
communications process
• Competitive promotional messages
• Misinterpretation of message or
wrong receiver
The Changing Communications Environment

Market Fragmentation Led to

Marketers Have Shifted
Away From Mass
Marketing

Media Fragmentation
Less Broadcasting

Two Factors
are Changing the Face of Today’s
Marketing Communications:

Improvements in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting
Key Factors in Good Communication

Sellers
Sellers Need
Need toto Sellers
Sellers Must
Must Develop
Develop
Know
Know What
What Audiences
Audiences Feedback
Feedback Channels
Channels to
to
They
They Wish
Wish to
to Reach
Reach Assess
Assess Audience’s
Audience’s
and
and Response
Response Response
Response to
to
Desired.
Desired. Messages.
Messages.

Sellers
Sellers Must
Must be
be Good
Good Sellers
Sellers Must
Must Send
Send
at
at Encoding
Encoding Messages
Messages Messages
Messages Through
Through
That
That Target
Target Audience
Audience Media
Media that
that Reach
Reach
Can
Can Decode.
Decode. Target
Target Audiences
Audiences
 Communication Objectives

Build Create
Products Brand
Wants Awareness

Enhance
Enhance Facilitate
Attributes
Attributes Purchase
Intentions
Intentions
Communication Objectives

• Marketers must first build

product category wants or
primary demand

Build Products Wants

Create
Create Brand
Brand Awareness
Awareness
Enhance
Enhance Attributes/Intentions
Attributes/Intentions

Facilitate
Facilitate Purchase
Purchase
Communication Objectives
• After a product category is
established, marketers
attempt to create
secondary demand for
their specific brand

Build
Build Products
Products Wants
Wants

Create Brand Awareness

Enhance
Enhance Attributes/Intentions
Attributes/Intentions

Facilitate
Facilitate Purchase
Purchase
Communication Objectives
• After creating secondary
demand, marketers want
to influence attitudes and
intentions

Build
Build Products
Products Wants
Wants

Create
Create Brand
Brand Awareness
Awareness
Enhance
Enhance Attributes/Intentions
Attributes/Intentions

Facilitate
Facilitate Purchase
Purchase
Communication Objectives
• Marketing communication
variables can facilitate
purchase and overcome
other marketing mix
variables

Build
Build Products
Products Wants
Wants

Create
Create Brand
Brand Awareness
Awareness
Enhance
Enhance Attributes/Intentions
Attributes/Intentions

Facilitate Purchase
 Steps in Developing Effective
Communication
Step 1. Identifying the Target Audience

Step 2. Determining the Communication Objectives

Buyer Readiness Stages

Awareness

Knowledge
This ad for the Toyota Celica
may be able to cover the first

Liking
three stages of the buyer-
readines s stages : aw arenes s,
knowledge, and liking.

There is no mention of
competitors, so it does not
seem to establish preference.

Preference

Conviction

Purchase
Purchase
 Steps in Developing Effective
Communication
Step 3. Designing a Message
Is this ad making an emotional,
rational, or moral appeal, or is it
Is this an effective ad?
combining them? How much
do the personified cows
contribute to this ad?
The same company puts lifelike
statues of cows, with this slogan,
Is the ad structured to let the into mall food courts. What
audience make a decision? makes that practice effective?

Message Content
Rational Appeals
Emotional Appeals
Moral Appeals Message Structure
Draw Conclusions
Argument Type
Message Format
Designing a

Argument Order
Message

Content
The pictures and the

Headline, Illustration,
slogan make this what
type of appeal?

Format
This layout, almost like

Copy, & Color

a yearbook or photo
album, reinforces the
sentime ntal aspect
of this advertisement.

Body Language
Click or press spacebar to return.
Steps in Developing Effective
Communication
Step 4. Choosing Media

Personal Communication
Channels(wom, buzz)

Nonpersonal Communication
Channels(5 types)

Step 5. Selecting the Message Source

(expertise,Trustworthiness,likability)

Step 6. Collecting Feedback

 Setting the Total Promotion
Budget
One of the Hardest Marketing Decisions Facing a Company is
How Much to Spend on Promotion.

Affordable Percentage
Percentageof
ofSales
Sales
Based on What the Based
BasedononaaCertain
CertainPercentage
Percentage
Company Can Afford of
ofCurrent
Currentor
orForecasted
ForecastedSales
Sales

Objective-and-Task
Objective-and-Task Competitive-Parity
Competitive-Parity
Based
BasedononDetermining
Determining Based
Basedon
onthe
theCompetitor’s
Competitor’s
Objectives
Objectives&&Tasks,
Tasks,Then
Then Promotion
PromotionBudget
Budget
Estimating Costs
Estimating Costs
The AIDA Model that outlines the process for
Concept achieving promotional goals in
terms of stages of consumer
involvement with the message.

Effective Message Tasks

1. Gain the receiver’s attention.
2. Achieve understanding by both
receiver and sender.
3. Stimulate the receiver’s needs and
suggests an appropriate method
of satisfying them.
 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
 Product Life Cycle and the 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
THE TOOLS OF MARKETING
COMMUNICATIONS
Advertising
Advertising

Personal
Selling Publicity
Publicity

MarCom Mix

Sales
Sales
P-O-P
P-O-P Promotion

Sponsorship
Sponsorship
 Personal Selling
• Person-to-person communication in which a seller informs and educates
prospective customers and attempts to influence their purchase choices.
• Process of a seller’s person-to-person promotional presentation to a buyer.
• Is essentially interpersonal.
• Is basic to any enterprise.
• The term salesperson covers a wide spectrum of positions from:
– Order taker (department store salesperson)
– Order getter (someone engaged in creative selling)
– Missionary salesperson (building goodwill or educating buyers)
Advantages of Personal Selling
• Provides a detailed explanation or demonstration of product
• Message can be varied to fit the needs of each prospective customer
• Can be directed to specific qualified prospects
• Costs can be controlled by adjusting sales force size
• Most effective in obtaining sales and gaining satisfied customers
Alternative Sales Channels for
Serving Customers
Over-the-Counter Selling Field Selling
Customers in retail setting Customers who need solutions
With typical, routine needs to complex problems
Customers
Telemarketing Inside Selling
New customers and Customers who need answers
customers of competitors to frequently asked questions

•Most salespeople are well-educated,

well-trained professionals who work to build and
maintain long-term relationships with customers.
 Factors Affecting the Importance of
Personal Selling in the Promotional Mix
 Advertising
• Non personal communication that is paid for by an identified sponsor and
involves either mass communication and other media or direct-to-consumer
communication via direct mail.
• Advertising adds value to brand by influencing consumers’ perception
• Effective advertising can lead to increased market share and greater
profitability
2 types:
• Institutional Advertising: Designed to enhance a company’s image rather
than promote a particular product.
– message focuses on activities, personality, or point of view of a
company
– Often closely related to the public-relations function of the enterprise.
• Product Advertising: Designed to tout the benefits of a specific good or
service.
– message focuses on a specific product
– This is the type of advertising the average person usually thinks of.
 Advertising Objectives in Relation to
Stage in the Product Life Cycle

1. Informative advertising 2. Persuasive advertising 3. Reminder advertising

seeks to develop initial
demand for a good, service,
organization, person, place,
idea, or cause.
attempts to increase
demand for an existing
good, service, organization,
person, place,
strives to reinforce
previous promotional
activity.
 Setting Advertising Objectives

Informative Advertising
Inform Consumers or Persuasive Advertising
Build Primary Demand Build Selective Demand
i.e CD Players i.e Sony CD Players

Advertising Objective
Specific Communication Task
Accomplished with a Specific
Target Audience
During a Specific Period of Time

Comparison Advertising Reminder Advertising

Compares One Brand to Keeps Consumers Thinking
Another About a Product
i.e. Avis vs. Hertz i.e. Coca-Cola
Comparison of Advertising Media Alternatives
MEDIA OUTLET PERCENTAGE ADVANTAGES DISADVANTAGES
OF TOTAL*
Broadcast
Network 17 Mass coverage; repetition; flexibility; prestige High cost; temporary
television message; public distrust;
lack of selectivity
Cable television 8 Mass coverage; repetition; flexibility; prestige Temporary message

Radio 8 Immediacy; low cost; flexibility; targeted Short life span; highly
audience; mobility fragmented audience
Print
Newspapers 19 Tailored to individual communities; ability to refer Short life span
back to ads
Direct mail 19 Selectivity; intense coverage; speed; flexibility; High cost; consumer
opportunity to convey complete information; resistance; dependence on
personalization effective mailing list
Magazines 5 Selectivity; quality image reproduction; long life; Lack of flexibility
prestige
Outdoor 2 Quick, visual communication of simple ideas; link Brief exposure;
to local goods and services; repetition environmental concerns
Electronic
Internet 3 Two-way communications; flexibility; link to self- Poor image reproduction;
directed entertainment limited scheduling options;
difficult to measure
effectiveness
*An estimated 20 percent is spent on a variety of miscellaneous media, including Yellow Pages listings, business papers, transit displays, point-of-purchase displays, cinema
advertising, and regional farm papers.
SOURCE: Data from “Advertising Boom in U.S. Ended in ’01,” Advertising Age, May 13, 2002, p. 24.
 Public Relations
• Non-personal communication to a mass audience that is not
directly paid for by the company.
• 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. (Executes programs to “win”
public)

Publicity
Public information about a company, good, or service
appearing in the mass media as a news item.
 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
 PUBLIC RELATIONS
Proactive MPR
• Dictated by a company’s
marketing objectives
• Offensively oriented
• Opportunity-seeking rather
than problem-solving
• Another tool for promotion of
company’s products and
services
Reactive MPR
• Undertaken as a result
of external pressures
• Deals with changes that
have negative
consequences
• Attempts to repair a
company’s reputation,
prevent market erosion,
and regain lost sales
 Sales Promotion
 Marketing activities other than personal selling, advertising, and publicity.
 The use of any incentive by a manufacturer to induce the trade (wholesalers and
retailers) or consumers to buy a brand and to encourage the sales force to
aggressively sell it
 Accounts for double the promotional dollar outlays of advertising.
 Originally intended as short-term incentives aimed at producing immediate
consumer buying responses. (Offers Reasons to Buy Now)
 Traditionally, these techniques were viewed as supplements to other elements of
the firm’s promotional mix.
 Today, however, marketers recognize them as an integral part of many
marketing plans.
 Shifted from short-term to long-term goals.
Principal Methods of Sales Promotion: Two major categories
1. Consumer-oriented promotions take the form of coupons and refunds, samples,
contests and sweepstakes, and specialty advertising.
2. Trade promotions include trade allowances, point-of-purchase advertising, trade
shows, and dealer incentives, contests, and training programs.
Rapid growth in the industry has been achieved because:
• Product managers are facing more pressure to increase their current sales, and
Companies face more competition,
• Advertising efficiency has declined, and Consumers have become more deal
oriented.
 Tools for Consumer Sales Promotion
Coupon: A certificate that entitles consumers to an immediate price reduction.
Rebate: A cash refund given for the purchase of a product during a specific product.
Premium: An extra item offered to the consumer, usually in exchange
for some proof of purchase.
Loyalty Marketing Program: A promotional program designed to build long-term,
mutually beneficial relationships between a company and key customers.
Frequent Buyer Program: A loyalty program in which loyal consumers are rewarded
for making multiple purchases.
Contest: Promotions that require skill or ability to compete for prizes.
Sweepstakes: Promotions that depend on chance or luck, with free participation.
Sampling: A promotional program that allow the consumer the opportunity to try a
product or service for free.
The practice of promoting the
interests of a company and its brands Sponsorship
by associating the company with a
specific event.
Growth of Commercial Sponsorships
1. Government restrictions.
2. Escalating costs of traditional
advertising media.
3. Additional opportunities resulting
from diverse leisure activities.
4. Greater media coverage of
sponsored events.
5. An effective way to reach an
international audience.
6. Sponsorships represent
alternatives to the increased
clutter associated with advertising
and direct mail.
 Point-of-Purchase (P-O-P)
• Includes all signage
(displays, posters,
signs, shelf cards,
and other visual
materials) designed
to influence buying
decisions at the
point of sale.
 POINT-OF-PURCHASE
COMMUNICATIONS
• P-O-P delivers useful information and simplifies the
shopping process by setting products apart from
similar items
• Increased sales
• Enables retailers to better organize shelf space and
improve inventory control, volume, and profitability
• Calls attention to special offers and helps stimulate
impulse purchasing
• Serves to complement the job already performed by
advertising before the consumer enters a store
 KEY PARTICIPANTS IN MARKETING
COMMUNICATIONS
• Integrated Marketing Advertising

Communication (IMC) Personal

Personal
Selling
Selling
Publicity

MarCom
– A system of managing Integrated
Marketing
and integrating Communications

marketing P-O-P
Sales
Sales
Promotion
Promotion

communication Sponsorship
Sponsorship

elements with the

result that all elements
adhere to the same
message
 Key Aspects of Integrated Marketing
Communications
Starts with the Customer
• Requires careful study of customers’ communication usage
pattern and information needs
• Communication media (contact points) is dictated by the
customer’s needs and behavior
• Involves an outside-in approach to decision making

Use Any Form of Relevant Contact

• Use all forms of communication and all sources of contact
• Communication media (contact points) is dictated by the
customer’s needs and behavior
• Involves utilization of communication outlets that are
appropriate for reaching the target audience
 Key Aspects of Integrated Marketing
Communications
Achieve Synergy
• Another key aspect of IMC is the need for synergy
• All communication elements should convey the same, unified
message, otherwise consumers will be confused
Build Relationships
• Successful marketing requires building a relationship between the
brand and the customer
• Entails repeat purchase and loyalty
• More profitable to build and maintain relationships than to
continuously search for new customers
Affect Behavior
• More than awareness or attitude changes but must include
behavioral changes
• Moving people to action
Key Changes in MarCom Practice
Resulting from the IMC Thrust

1. Reduced Dependence in Mass-Media Advertising

2. Increased reliance on highly targeted

communications methods

3. Expanded efforts to assess return on investment

Promotion Mix Strategies
Strategy Selected Depends on: Type of Product-Market & Product
Life-Cycle Stage
Push Strategy
• Utilizes aggressive trade allowances and personal selling to
obtain wholesaler and retailer distribution
• The product is pushed through the channel
• Strategy that Calls for Using the Sales force and Trade
Promotion to Push the Product Through the Channels.

Pull Strategy
• Encourages consumer demand for the product to obtain
distribution
• Use of heavy advertising and high value coupons
• Strategy that Calls for Spending A Lot on Advertising and
Consumer Promotion to Build Up (Pull) Consumer
Demand.
 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