1. 1 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 13 Integrated Marketing Communications Canadian Adaptation prepared by Don Hill, Langara College

2. 2 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 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

3. 3 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 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

4. 4 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Learning Objective Discuss the role of promotion in the marketing mix Online www.mastercard.ca 1 1 1

5. 5 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13Promotion Promotion Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. 1

6. 6 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Promotional Strategy A plan for the optimal use of the elements of promotion: 1  Advertising  Public Relations  Sales Promotion  Personal Selling CompetitiveAdvantage

7. 7 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 The Role of Promotion Overall Marketing Objectives Marketing Mix Product Distribution Promotion Price Marketing Mix Product Distribution Promotion Price Target Market Promotional Mix Advertising Public Relations Sales Promotion Personal Selling Promotion Plan Promotional Mix Advertising Public Relations Sales Promotion Personal Selling Promotion Plan 1

8. 8 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Competitive Advantage Unique features Excellent service Low prices Rapid delivery High product quality 1

9. 9 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Learning Objective Discuss the elements of the promotional mix 2 2 2

10. 10 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Promotional Mix  Advertising  Public Relations  Sales Promotion  Personal Selling Promotional Mix Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. 2

11. 11 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Online www.junobeach.org/centre www.walmart.com Promotional Mix Advertising Public Relations Sales Promotion Personal Selling 2

12. 12 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13Advertising Advertising Impersonal, one-way mass communication about a product or organization that is paid for by a marketer. 2

13. 13 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Advertising Media Traditional Advertising Media Traditional Advertising Media Electronic Advertising Media  Television  Radio  Newspapers  Magazines  Books  Direct mail  Billboards  Transit cards  Internet  E-mail  Banner ads  Viral marketing  Interactive video 2

14. 14 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 AdvantagesDisadvantages Advertising Reach large number of people Low cost per contact Can be micro- targeted Total cost is high 2

15. 15 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 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

16. 16 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Functions of Public Relations Evaluates public attitudes Identifies areas of public interest Identifies areas of public interest Executes programs to “win” public 2

17. 17 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13Publicity Publicity Public information about a company, good, or service appearing in the mass media as a news item. 2

18. 18 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Sales Promotion Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness. 2

19. 19 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Sales Promotion End Consumers End Consumers Trade Customers Company Employees Company Employees 2 Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons

20. 20 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Personal Selling A purchase situation in which two people communicate in an attempt to influence each other. 2

21. 21 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Personal Selling Traditional Selling Traditional Selling Relationship Selling Relationship Selling 2

22. 22 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Roles of the Elements of the Promotional Mix 2

23. 23 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Learning Objective Describe the communication process 3 3 3

24. 24 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13Communication Communication The process by which we exchange or share meanings through a common set of symbols. 3

25. 25 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Marketing Communication Categories of Communication Categories of Communication Interpersonal Communication Interpersonal Communication Mass Communication Mass Communication 3

26. 26 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 As SendersAs Receivers The Communication Process  Develop messages  Adapt messages  Spot new communication opportunities 3  Inform  Persuade  Remind

27. 27 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 The Communication Process 3 Online www.marketingmag.ca

28. 28 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Characteristics of the Elements in the Promotional Mix 3

29. 29 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Characteristics of Advertising Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility AdvertisingAdvertising Indirect and non-personal Low Little Delayed One-way Yes Fast Same message to all audiences 3

30. 30 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 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 3

31. 31 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Characteristics of Sales Promotion 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 3

32. 32 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 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 3

33. 33 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Review: Communication Process 3

34. 34 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Learning Objective Explain the goal and tasks of promotion 4 4 4

35. 35 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Goals and Tasks of Promotion Informing Reminding Persuading Target Audience Target Audience 4 Online www.swiffer.ca

36. 36 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Goals and Tasks of Promotion Informing Reminding Persuading Target Audience Target Audience PLC Stages PLC Stages: Introduction Early Growth PLC Stages: Growth Maturity PLC Stages: Maturity 4

37. 37 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Goals and Tasks of Promotion  Increase awareness  Explain how product works  Suggest new uses  Build company image 4 Informative Objective

38. 38 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Goals and Tasks of Promotion  Encourage brand switching  Change customers’ perception of product attributes  Influence buying decision  Persuade customers to call 4 Persuasive Objective

39. 39 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Goals and Tasks of Promotion  Remind customers that product may be needed  Remind customers where to buy product  Maintain customer awareness 4 Reminder Objective

40. 40 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Learning Objective Discuss the AIDA concept and its relationship to the promotional mix 5 5 5

41. 41 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 The AIDA Concept AIDA Concept Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. 5

42. 42 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 A ttention I nterest D esire A ction The AIDA Concept 5

43. 43 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 5 AIDA and the Promotional Mix

44. 44 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Learning Objective Describe the factors that affect the promotional mix 6 6 6

45. 45 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 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 6

46. 46 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Stage in the Product Life Cycle Time Introduction Growth Maturity Decline Sales ($) 6 Online www.mccain.ca

47. 47 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 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 Sales ($) Time 6

48. 48 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Target Market Characteristics For… Widely scattered market Informed buyers Repeat buyers Advertising Sales Promotion Less Personal Selling Online www.canehdian.com 6

49. 49 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Type of Buying Decision Advertising Sales Promotion Type of Buying Decision AffectsPromotional Mix Choice Type of Buying Decision AffectsPromotional Mix Choice ComplexComplexRoutineRoutine Personal Selling Not Routine or Complex Not Routine or Complex Advertising Public Relations 6

50. 50 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Available Funds Trade-offs with funds available Number of people in target market Quality of communication needed Relative costs of promotional elements 6

51. 51 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Push and Pull Strategies Manufacturer promotes to wholesalerManufacturer wholesalerWholesaler retailerWholesaler retailerRetailer consumerRetailer consumerConsumer buys from retailerConsumer retailer PUSH STRATEGY Orders to manufacturer Manufacturer promotes to consumerManufacturer consumerConsumerdemandsproduct from retailer Consumerdemandsproduct Retailerdemandsproduct from wholesaler Retailerdemandsproduct Wholesalerdemands product from manufacturerWholesalerdemands manufacturer Orders to manufacturer PULL STRATEGY 6

52. 52 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Factors that Affect the Promotional Mix 6

53. 53 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Learning Objective Discuss the concept of integrated marketing communications 7 7 7

54. 54 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 Integrated Marketing Communications The careful coordination of all promotional messages for a product or service to assure the consistency of messages at every contact point where a company meets the consumer. 7

55. 55 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 13 IMC Popularity Growth Proliferation of thousands of media choices Fragmentation of the mass market Slash of advertising spending in favor of promotional techniques 7