Designing and Managing

Integrated Marketing
Communications
 The Role of Marketing
Communications
• Marketing communications
– The means by which firms attempt to inform,
persuade, and remind consumers about the
products and brands they sell
 Selecting the Marketing
Communications Mix
• Advertising
• Sales promotion
• Events and experiences
• Public relations and publicity
• Online and social media marketing
• Mobile marketing
• Direct and database marketing
• Sales force
Common Communication
Platforms
Promotional tools used over the product
life cycle

18-5
 Promotional Strategy
A. Push strategy B. Pull strategy
Manufacturer Manufacturer
Flow of
promotion;
Flow of directed to Flow of
demand intermediaries demand
stimulation stimulation Flow of
promotion;
directed to
Wholesaler Wholesaler consumers

Retailer Retailer

Consumer Consumer
Push or Pull?
Push or Pull?
 Developing Effective
Communications
• Identify the target audience
• Set the communications objectives
– Establish need for category
– Build brand awareness
– Build brand attitude
– Influence brand purchase intention
• Set the marketing communication
Budget
 Types of Advertisements

Product Advertisements: focused on

selling a good or service.
Types:
1. informative or pioneering
2. persuasive or competitive
3. Reminder
4. Reinforcement
Lego Boost
Mac vs. PC Guys
McDonald’s
 Advertising Appeals
• Positive and negative appeals
– Sex
– Fear
– Guilt
– Shame
– Humor
– Emotional
– Nostalgia
The Axe Effect
Smoking
 Developing and Managing
an Advertising Program
• Setting the advertising objectives
• Deciding on the advertising budget
• Developing the advertising campaign
• Choosing media
• Evaluating advertising
effectiveness
 Deciding on the Advertising
Budget
• Advertising elasticity
– Concave or S-shaped
STRATEGIC MARKETING’S GOAL: EFFECTIVE
RESOURCE ALLOCATION

Allocating Marketing Resources Using Sales Response

Functions
– Maximizing Incremental Revenue Minus
Incremental Cost
Sales response function showing the situation
for two different years
 Advertising Media
• What are some of the advertising media?
U.S. advertising expenditures by category
 Advantages and disadvantages
of major advertising media
MEDIUM ADVANTAGES DISADVANTAGES

television reaches extremely large high cost to prepare and run

audience; uses picture, print, ads; short exposure time and
sound, and motion for effect, perishable message; difficult to
can target specific audiences. convey complex information.

Radio low cost; can target specific no visual excitement; short

audiences; ads can be placed exposure time and perishable
quickly; can use sound, message; difficult to convey
humor, and intimacy complex information.
effectively.
 Advantages and disadvantages of major
advertising media
MEDIUM ADVANTAGES DISADVANTAGES

magazines can target specific audiences; long time needed to place ad;
high quality color; long life of limited control of ad position;
ad; ads can be clipped and relatively high cost; competes
saved; can convey complex for attention with other
information. magazine features.

Newspapers excellent coverage of local ads compete for attention with

markets; ads can be placed other newspaper features; can’t
and changed quickly; ads can control ad position on page;
saved; quick consumer short life span; can’t target
response; low cost. Specific audiences.
 Advantages and disadvantages of major
advertising media
MEDIUM ADVANTAGES DISADVANTAGES

Internet video and audio capabilities; Consumer backlash against

animation can improve pop-ups; attention deficit
attention; ads can be
interactive and link to
advertiser. Can be customized
and personalized.

Outdoor low cost; local market focus; message must be short

and and
high visibility; opportunity simple; low selectivity of
for repeat exposures. Audience; criticized as a
traffic hazard, eyesore.
 Scheduling the Advertising
Most companies follow one of three basic approaches:

• Continous Schedule Steady schedule

throughout the year. Breakfast Cereal.
• Flighting Schedule Advertising reflects
seasonal demand. Suntan lotion.
• Pulsing Schedule Steady and flighting
schedules are combined. Toys.
 Pretesting the Advertising

Pretests are conducted before the advertisements are

place in any medium.
Types of Pretest:
1. Portfolio Tests – individuals read through a
portfolio and rate ads on various dimensions.
2. Jury Tests – showing the ad to a panel and
asking for their impressions
3. Theater Tests – view a tv show or a movie (with
commercials). Afterwards register your feeling.
 Posttesting the Advertising

Five approaches common in posttesting:

1. Aided recall (recognition-readership)-

Do you remember seeing the ad? Do you remember the brand?
2. Unaided recall – What ads do you remember seeing
yesterday?
3. Attitude tests
Checking changes attitudes towards brands
4. Inquiry tests – Information, samples, or premiums are
offered. More inquiries  more success
5. Sales tests – controlled experiments (advertising in one
mkt) and checking retail sales
 Legal and Social issues in an
Advertising Campaign
• Legal and social issues
– Advertisers must not make false claims
– Must not use false demonstrations
– Must not create ads with the capacity to
deceive
– Must avoid bait-and-switch advertising ( seller
creates an appealing but ingenuine offer to
sell a product or service, which the seller does
not actually intend to sell)
 Sales Promotions

• Sales promotion is a mass communication

technique that offers short-term
incentives to encourage purchase or
sales of a product or service.
 Consumer-Oriented Sales Promotion
Coupons– discounted price –Valpak,Groupons
Deals – short term price reductions
Premiums– free gifts or merchandise sold at discount
Contests- skill
Sweepstakes – no skill
Samples
Continuity Programs– premiums for accumulation
Point-of-Purchase Displays – displays in high traffic areas – video
screens, the product itself, on shopping-carts
Rebates– return of money with proof of purchase
Product Placement – movie, tv, or another commercial
 Consumer promotions

• Deals: offer discounted prices in a short time. e.g.,

super Saturday sale at Sears.
– Brand switching
– Category expansion
– Forward buying
• Coupons: offer discounted prices to consumers who
redeem coupons. e.g., Free Standing Insert (FSI)
on Sunday newspaper
– Price discrimination
– Encourage new product trials
– Direct control by manufacturers
 Consumer Promotions
• Samples: give a sample of the product for free. e.g., free sample at
Sam’s Club.
– Encourage new product trial

• Mail-in rebates: give a cash refund by mail. e.g., OfficeMax mail-in

rebates catalog.
– Get customer information
– Price discrimination

• Point-of-purchase display: colorful sticker in high-traffic area. e.g.,

Coke $3.99 for 24 packs.
– Get consumers’ attention
 Consumer Promotions

• Product Placement: involves the use of a brand-name product in a

movie, television show, video or a commercial for another product.
– Transformers

• Contests:
– 2017 Doritos “Do Us a Flavor”
Potato Chip Contest

• Sweepstakes
– Pepsi Fire Sweepstakes
 Type Objective Advantage Disadvantage
Delay purchases
Coupons Increase Demand Retailer support
Price wars
Delay purchases;
Increase demand / Reduce perceived
Deals Induce switching
Lowers risk
value
Price Wars
Consumer may buy
Premiums Build goodwill Consumers like free
for premium
Increase demand Consumer
Contests Excitement involvement
Creativity required

Increase demand Excitement

Sales may drop after
Sweepstakes Excitement Appeal to new
sweepstakes
New segments segments

Samples Encourage trial Lowers risk High cost

Continuity Repeat purchases Loyalty

Discrimination
Programs Backlash
Point-of-
Trial; in-store Hard to get retailer to
Purchase support
Visibility
agree
Display
Easily copied;
Rebates Increase demand Lowers risk reduces perceived
value
Product Display products “Non-commercial”
Little control over
Placement outcome
 Discussion:

• Which of the sales promotional tools would

be best for stimulating sales of the following
products and services:
a) a dry cleaner wishing to emphasize low prices
on washed and pressed dress shirts
b) Caress’ new Waterfresh Breeze Silkening Body
Lotions
c) Sony’s new Flat Screen HDTV