2. © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
Chapter Eight
Integrated Marketing Communications: Advertising, Sales Promotion, Public Relations, and Direct Marketing
Key Words / Outline
Advertising, Sales promotion, Public relations, Direct marketing, Personal selling, Marketing communications, Creating awareness Aiding comprehension, Developing conviction, Percent of sale, Over unit expenditure, Competitive parity, The task approach, Pull strategy, Push strategy, Trade promotion, Frequency marketing program
© The McGraw-Hill Companies, Inc., All Rights Reserved.
McGraw-Hill/Irwin
Marketing Management, 8e

3. Strategic Goals Of Marketing Communication
Create awareness
Build positive images
Identify prospects
Build channel relationships
Retain customers

4. Non-personal communication Personal communication
Promotional Mix
Promotional mix incorporates the combination and types of non-personal and personal communication the organization employs during a specified period
Non-personal communication
Advertising
Sales promotion
Public relations
Direct marketing
Personal communication
Personal selling

5. Promotional Mix Advertising Strengths Weaknesses
Efficient for reaching many buyers simultaneously
Effective way to create image of the brand
Flexible
Variety of media to choose from
Weaknesses
Reaches many people who are not potential buyers
Ads are subject to criticism
Exposure time is short
People tend to screen out advertisements
Total cost is high

6. Promotional Mix Personal selling Strengths Weaknesses
Salespeople can be persuasive and influential
Two-way communication allows for questions and other feedback
Message can be targeted to specific individuals weaknesses
Weaknesses
Cost per contact is high
Salespeople may be hard to recruit and motivate
Presentation skills may vary between salespeople

7. Promotional Mix Sales promotion Strengths Weaknesses
Supports short-term price reductions designed to stimulate debate
Variety of sales promotion tools available
Effective in changing short-term behavior
Easy link to other communications
Weaknesses
Risk inducing brand-loyal customers to stock up while not inducing others
Impact may be limited to short-term
Price-related sales promotion may hurt brand image
Easy for competitors to copy

8. Promotional Mix Public relations Strengths Weaknesses
Total cost may be low
Media-generated stories seen as more credible than marketer-sponsored messages
Weaknesses
Media may not cooperate
Heavy competition for media attention
Marketer has little control over the message

9. Promotional Mix Direct marketing Strengths Weaknesses
Message can be customized and prepared quickly
Can facilitate a relationship with customer
Weaknesses
Managing and maintaining accurate database can be costly
Often low customer response

10. Buyer Impact Potential buyers go through a process
Awareness of the product
Comprehension of what it can do and important features
Conviction that it has value for them
Ordering on the part of a sufficient number of potential buyers

11. Using Integrated Marketing Communication
Traditional approach – Focus on
Making Transactions
Customers
Independent brand messages
Mass media – monologue with customers
Product claims
Adjusting prior year’s plan
Functional department planning and monitoring
Communication specialists
Mass marketing and customer acquisition
Stable of agencies

12. Using Integrated Marketing Communication
Integrated approach – Focus on
Building/nourishing relationships
All stakeholders in the organizations
Strategic consistency on brand messages
Interactivity – dialogue with customers
Corporate mission marketing
Zero-based campaign planning
Cross-functional planning and monitoring
Creating core competencies
Building and managing databases to retain customers
One communication management agency

13. Buyer Impact

14. Advertising Approaches
The generalist viewpoint is primarily concerned with sales, profits, and return on investment
The middle viewpoint sees advertising as a competitive weapon
The specialist viewpoint is concerned with the effects of specific ads or campaigns

15. Developing Advertising Objectives
Does advertising aim at immediate sales?
Does advertising aim at near-term sales?
Does advertising aim at building long-range customer franchise?
Does advertising aim at helping increase sales?
Does advertising aim at some specific step that leads to sale?

16. Developing Advertising Objectives
How important are supplementary benefits of advertising?
Should advertising impart information needed to consummate sales and build customer satisfaction?
Should advertising build confidence and goodwill for the corporation?
What kind of images does the company wish to build?

17. Budgeting Approach Percent of sales Per-unit expenditure
All you can afford
Competitive parity
The research approach
The task approach

18. The Eight-M Formula Who will manage the advertising program?
Budget on advertising as opposed to other forms of communication
To whom should the advertising be directed?
What should the ads says about the product?
Types of combination of media to be used
Longevity of the ads before changing ads or themes
Timing factor for the ad to appear during the course of campaign
Measuring the effectiveness of the campaign and how the campaign be evaluated and controlled

19. Budget Allocation A successful campaign has two related tasks
Message strategy: Say the right things in ads itself
Media mix: Use the appropriate media in right amounts at the right time to reach the target market

20. Budget Allocation: Message Strategy
Who the firm’s customers and potential customers are; their demographic and psychological characteristics?
How many such customers there are?
How much of the firm’s type and brand of the product are they currently buying and can reasonably be expected in the future?
Which individuals, other than customers and potential customers, influence purchasing decisions?

21. Budget Allocation: Message Strategy
Where customers buy the firm’s brand product?
When customers buy and frequency of purchase?
Which competitive brands they buy and frequency of purchase?
How do they use the product?
Why they buy particular types and brands of products?

22. Budget Allocation: Media Mix
Measures of media effectiveness include
Reach – number of targeted audience members exposed at least once to the advertiser’s message
Frequency – number of times they are exposed
Cost per thousand – based on a number of visits (to a website, for example)

23. Media Review Newspapers Advantages Disadvantages Flexible and timely
Intense coverage of local markets
Broad acceptance and use
High believability of printed word
Disadvantages
Short life
Read hastily
Small “pass-along” audience

24. Media Review Radio Advantages Disadvantages Mass use
Audience selectivity via station format
Low cost
Geographic flexibility
Disadvantages
Audio presentation only
Less attention than TV
Chaotic buying
Short life

25. Media Review Outdoor Advantages Disadvantages Flexible
Relative absence of competing advertisements
Repeat exposure
Relatively inexpensive
Disadvantages
Creative limitations
Many distractions for viewer
Public attack (ecological)
No selectivity of audience

26. Media Review Television Advantages Disadvantages
Combination of sight, sound and motion
Appeals to senses
Mass audience coverage
Psychology of attention
Disadvantages
Insecurity of audience retention
Fleeting impressions
Short life
Expensive

27. Media Review Magazines Advantages Disadvantages
High geographic and demographic selectivity
Psychology of attention
Quality of reproduction
Pass-along readership
Disadvantages
Long closing periods
Some waste circulation
No guarantee of position

28. Media Review Direct mail Advantages Disadvantages Audience selectivity
Flexible
No competition from competing advertisements
Personalized
Disadvantages
Relatively high cost
Consumers often pay little or no attention to direct mail

29. Media Review Internet Advantages Disadvantages Interactive
Low cost per exposure
Ads can be placed in interest sections
Timely
High information content possible
New favorable medium
Disadvantages
Low attention getting
Short message life
Readers selects exposure
May be perceived as intruding
Subject to download speeds

30. Evaluation Procedures
Specific advertisements
Recognition tests
Recall tests
Opinion tests
Theatre tests
Specific advertising objectives
Awareness
Attitude
Motivational impact
Intention to buy
Market test

31. Sales Promotion Effective sales promotion moves consumers to
Obtain a trial product
Consider new or improved product
Repeat or increase current usage
Come into a retail stores
Expand the total number of users of an established product lines

32. Sales Promotion An effective sales promotion motivates salespeople by
Motivating sales force
Educating the sales force about product improvements
Stabilizing a fluctuating sales pattern
An effective sales promotion motivates resellers to
Increase inventories
Obtain displays and other support products
Improve product distribution
Obtain more and better shelf life

33. Push Versus Pull Marketing

34. Push Versus Pull Marketing

35. Trade Promotion Rationale
To convince retailer’s to carry the manufacturer’s products
To reduce the manufacturer’s and increase the distributors or retailer’s inventories
To support advertising and consumer sales promotion
To encourage retailers to give the product more favorable shelf space
To serve as a reward for past sales efforts

36. Consumer Promotion Rationale
To induce the customer to try the product
To reward customers for brand loyalty
To encourage the customer to trade up or try larger sizes of the product
To stimulate repeat purchases
To react to competitor efforts
To reinforce other selling efforts

37. Consumer Promotion Rationale

38. PR/Publicity News release or press release News conference Sponsorship
Public service announcements (PSA)

39. Direct Marketing Online Direct Mail Catalogs Direct Response
Personal Selling