Integrated Marketing Communications Chapter Fifteen Integrated Marketing Communications 1

Objectives Discuss the basic purposes of promotion Define the major elements of promotion Describe a basic model for communication Explain the communication hierarchy Explain how the elements of promotion support each other Identify general promotional strategies Classify budgeting approaches Discuss & provide examples of promotional campaigns

Promotion Promotion: Inform Remind Applied marketing communication Persuade Remind 2

Communication Media Mass Media Personal Media Interactive Media 6

The Promotional Mix Effectively blending & integrating & uniting elements Goal: Coordinated, systematic, & harmonious The Perfect Promotional Mix 14

The Elements of Promotion Personal selling: Person-to-person dialogue Purpose: To persuade buyer to accept a point of view

The Elements of Promotion Advertising Informative or persuasive message carried by a non-personal medium

The Elements of Promotion Publicity: Message not paid for by sponsor Public Relations: Management of publicity

The Elements of Promotion Sales Promotion: Induce buyers to purchase in specific timeframe

Communication: Exchanging information and conveying meaning to others Goal: Common understanding

Communication Process Noise Source Encoding Message Channel Decoding Receiver Feedback

Communication Process Encoding: process by which the sender translates the idea to be communicated into a message

Communication Process Channel: vehicle through which a message is sent Examples: Magazines TV Radio

Communication Process Decoding: process where receiver interprets the message

Hierarchy of Communications Effects Purchase Conviction Preference Liking Knowledge Awareness Brand ignorance 20

Relative Importance of Advertising and Personal Selling Pretransaction: Information to aid recognition and understanding Information to create positive feeling

Relative Importance of Advertising and Personal Selling Transaction: Persuasion

Relative Importance of Advertising and Personal Selling Post-transaction: Reminder and reassurance

Push Strategy Supplier promotes product to intermediaries to PUSH the product through distribution channel Wholesaler Product flow Information($) Retailer Product flow Information($) Consumer Product flow Information($) Manufacturer

Pull Strategy Supplier promotes product to ultimate consumer aiming to stimulate demand and PULL the product through the channel Consumer Information($) Manufacturer Wholesaler Retailer Product flow

Determining Promotional Budgets Objective and task Percentage-of-sales Comparative-parity Marginal approach All-you-can-afford Method Combination Cooperative promotion 23

Promotional Campaigns Image building: Symbolic value Personality Lifestyle Creating impression

Promotional Campaigns Product Differentiation: Set apart from competition Solving consumer problems USP

Promotional Campaigns Luxurious Sporty Positioning: Consumer perception Relative to competition Fast Slow

Promotional Campaigns Direct Response: Direct, measurable response Order Inquiry

Review Discuss the basic purposes of promotion Define the major elements of promotion Describe a basic model for communication Explain the communication hierarchy Explain how the elements of promotion support each other Identify general promotional strategies Classify budgeting approaches Discuss & provide examples of promotional campaigns