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Integrated Marketing Communications Chapter 14
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chapter 14 Learning Objectives
1. Discuss the role of promotion in the marketing mix. 2. Discuss the elements of the promotional mix. 3. Describe the communication process. 14 chapter
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Learning Objectives (continued)
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. 14 chapter
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Integrated Marketing Communications
Makes up the “Promotion P” of marketing Objectives of IMC are to: Inform Persuade Remind
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A plan for the optimal use of the elements of promotion:
1 Promotional Strategy A plan for the optimal use of the elements of promotion: Advertising Public Relations Personal Selling Sales Promotion
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Overall Marketing Objectives
1 The Role of Promotion 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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2 Promotional Mix Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. Advertising Public Relations Personal Selling Sales Promotion
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2 Promotional Mix Elements of the Promotional Mix Advertising
Public Relations Personal Selling Sales Promotion
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2 Advertising Impersonal, one-way ___________________ ___________________ or organization that is paid for by a marketer.
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Electronic Advertising Media
2 Advertising Media Traditional Advertising Media Electronic Advertising Media Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards Internet Computer modems Fax machines
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2 Advertising Disadvantages Total cost is high Advantages
Ability to reach large number of people Cost per contact is low Can be micro-targeted Disadvantages Total cost is high
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2 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.
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Evaluates public attitudes Executes programs to “win” public
2 Public Relations Evaluates public attitudes Identifies areas of public interest Executes programs to “win” public Functions of Public Relations
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2 Publicity Public information about a company, good, or service appearing in the mass media as a news item.
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2 Sales Promotion Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness.
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2 Sales Promotion 3 Sales Promotion Targets End Consumers
Trade Customers Company Employees 3 Sales Promotion Targets
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2 Sales Promotion Popular Tools for Consumer Sales Promotion
Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons Popular Tools for Consumer Sales Promotion
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2 Personal Selling Planned presentation to one or more prospective buyers for the purpose of making a sale.
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3 Communication The process by which we exchange or share meanings through a common set of symbols.
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Marketing Communication
3 Marketing Communication Categories of Communication Interpersonal Communication Mass Communication
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The Communication Process
3 The Communication Process As Senders As Receivers Inform Persuade Remind Develop messages Adapt messages Spot new communication opportunities
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The Sender and Encoding
3 The Sender and Encoding Sender The originator of the message in the communication process. Encoding The conversion of a sender’s ideas and thoughts into a message, usually in the form of words or signs.
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The Communication Process
3 The Communication Process Noise Sender Encoding Message Message Channel Decoding Receiver
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Characteristics of Advertising
3 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 Fast Same message to all audiences
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Characteristics of Public Relations
3 Characteristics of Public Relations 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 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 Fast Same message to varied target
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Characteristics of Personal Selling
3 Characteristics of Personal Selling 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 Slow Tailored to prospect
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Goals and Tasks of Promotion
4 Goals and Tasks of Promotion Informing Reminding Persuading Target Audience
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Goals and Tasks of Promotion
4 Goals and Tasks of Promotion Informing Reminding Persuading Target Audience PLC Stages: Introduction Early Growth Growth Maturity
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Goals and Tasks of Promotion
4 Goals and Tasks of Promotion Informative Objective Increase awareness Explain how product works Suggest new uses Build company image
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Goals and Tasks of Promotion
4 Goals and Tasks of Promotion Persuasion Objective Encourage brand switching Change customers’ perception of product attributes Influence buying decision Persuade customers to call
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Goals and Tasks of Promotion
4 Goals and Tasks of Promotion Reminder Objective Remind customers that product may be needed Remind customers where to buy product Maintain customer awareness
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5 The AIDA Concept Attention Interest Desire Action
Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.
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Attention Interest Desire Action
5 The AIDA Concept Attention Interest Desire Action
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AIDA and the Promotional Mix
5 AIDA and the Promotional Mix Awareness Interest Desire Action Advertising Very effective Somewhat Not Public Relations Sales Promotion Personal Selling
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Factors Affecting the Promotional Mix
6 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
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Factors that influence promotional mix
6 Nature of the Product Factors that influence promotional mix Product characteristics Business product vs. consumer product Costs and risks Social risk
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Stage in the Product Life Cycle
6 Stage in the Product Life Cycle Time Introduction Growth Maturity Decline Sales ($)
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Product Life Cycle and the Promotional Mix
6 Introduction Growth Maturity Decline Sales ($) Time Light Advertising, pre- introduction Publicity Heavy use of advertising, PR for awareness; sales promotion for trial Advertising, PR, Brand loyalty Personal Selling for distribution Ads decrease. Sales Promotion, Personal Selling Reminder & Persuasive AD/PR decrease Limited Sales Promotion, Personal Selling for distribution
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Target Market Characteristics
6 Target Market Characteristics FOR: Widely scattered market Informed buyers Repeat buyers Advertising Sales Promotion Less Personal Selling
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Type of Buying Decision
6 Type of Buying Decision Advertising Sales Promotion Type of Buying Decision affects Promotional Mix Choice Complex Routine Personal Selling Not Routine or Complex Public Relations
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Push and Pull Strategies
6 Push and Pull Strategies Manufacturer promotes to wholesaler Wholesaler retailer Retailer consumer Consumer buys from PUSH STRATEGY Orders to manufacturer Manufacturer promotes to consumer Consumer demands product from retailer Retailer from wholesaler Wholesaler product from manufacturer Orders to manufacturer PULL STRATEGY
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Integrated Marketing Communications
7 IMC A method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused.
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7 IMC Popularity Growth Proliferation of thousands of media choices
Fragmentation of the mass market Slash of advertising spending in favor of promotional techniques
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