1. Developing Integrated Marketing Communications
Chapter Sixteen
Developing Integrated Marketing Communications

2. Learning Objectives Describe integrated marketing communications.
Understand the role of promotion.
Explain the purposes of the three types of advertising.
Describe the advantages and disadvantages of the major advertising media.
Identify the major steps in developing an advertising campaign.
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3. Learning Objectives (cont’d)
Recognize the various kinds of salespersons, the steps in the personal-selling process, and the major sales management tasks.
Describe sales promotion objectives and methods.
Understand the types and uses of public relations.
Identify the factors that influence the selection of promotion mix ingredients.
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4. What Is Integrated Marketing Communications?
Coordination of promotion efforts for maximum informational and persuasive impact on customers
Results in a consistent message to customers, long-term customer relationships, and the efficient use of promotional resources
Mass media advertising has given way to targeted promotional tools (e.g., cable TV, direct mail, and the Internet)
The overall cost of marketing communications has risen significantly, pressuring managers to make the most efficient use of marketing resources
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5. The Role of Promotion Promotion Role of promotion
Communication about an organization and its products that is intended to inform, persuade, or remind target market members
Role of promotion
To facilitate exchanges directly or indirectly by informing individuals, groups, or organizations and influencing them to accept a firm’s products or to have more positive feelings about the firm
Convey product and service information directly to target market segments
Provide information to interest groups, regulatory agencies, investors, and the general public
To maintain positive relationships between a company and various groups in the marketing environment
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6. Information Flows Into and Out of an Organization
A promotional activity’s effectiveness depends on the information available to marketers
Source: William M. Pride and O. C. Ferrell, Marketing: Concepts and Strategies, 13th ed. Copyright © 2006 by Houghton Mifflin Company, Adapted with permission.
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7. The Promotion Mix
The particular combination of promotion methods a firm uses to reach a target market
Advertising
A paid nonpersonal message communicated to a select audience through a mass medium
Personal selling
Personal communication aimed at informing customers and persuading them to buy a firm’s products
Sales promotion
The use of activities or materials as direct inducements to customers or salespersons
Public relations
Communication activities used to create and maintain favorable relations between an organization and various public groups, both internal and external
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8. Possible Ingredients for an Organization’s Promotion Mix
Source: William M. Pride and O. C. Ferrell, Marketing: Concepts and Strategies, 13th ed. Copyright © 2006 by Houghton Mifflin Company, Adapted with permission.
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9. Types of Advertising by Purpose
Primary-demand advertising
Used to increase demand for all brands of a product in a specific industry
Selective-demand (brand) advertising
Used to sell a particular brand of product
Immediate-response advertising
To persuade customers to buy the product within a short time
Reminder advertising
To keep the firm’s name fresh in the public’s mind
Comparative advertising
Compares specific characteristics of two or more brands to show the advertiser’s brand is better
Institutional advertising
Designed to enhance a firm’s image or build its reputation
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10. Advertising Spending by Media and Total Dollars Spent
Insert Figure 16.3, p.518
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11. Advertising Media
The forms of communication through which advertising reaches its audience
Newspapers
Relatively inexpensive and timely; short life span
Magazines
Reach a specific market segment; more prestigious than newspapers; high cost; lack of timeliness
Direct mail
Most selective; effectiveness can be measured;
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12. Advertising Media (cont’d)
Yellow pages advertising
Print and online; local; purchased for 1 year
Out-of-home advertising
Short promotional messages on billboards, posters, signs, and vehicles; focuses on geographic area; fairly inexpensive
Television
The primary medium for larger firms trying to reach national or regional markets
Network time; local time; sponsoring a show; spot time; infomercials
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13. Advertising Media (cont’d)
Radio
Offers selectivity; most accessible medium; can be less expensive than other media
Internet
Increasingly popular; can be expensive; potentially large audience; can target precisely; effectiveness is questionable
Banner and button ads; sponsorship ads; keyword ads; interstitials
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14. Major Steps in Developing an Advertising Campaign
Identify and analyze the target audience
Define the advertising objectives
Create the advertising platform
Determine the advertising budget
Develop the media plan
Create the advertising message
Execute the campaign
Evaluate advertising effectiveness
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15. Advertising Agencies
Independent firms that plan, produce, and place advertising for their clients
Large agencies also help with sales promotion and public relations
Media usually pay a commission to agencies
Firms may use both in-house advertising departments and an independent agency
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16. Top 10 National Advertisers
General Motors Corp.
Procter & Gamble Co.
Time Warner
Pfizer
SBC Communications
DaimlerChrysler
Ford Motor
Walt Disney Co.
Verizon Communications
Johnson & Johnson
Source: Advertising Age, June 27, 2005.
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17. Social and Legal Considerations in Advertising
Criticisms
Advertising is wasteful
Advertising is deceptive
Benefits
Advertising is the most effective and least expensive means of communicating to a large number of individuals and organizations
Advertising encourages and is a means of competition; it thus leads to new/better products, more choice, lower prices
Advertising revenues support our mass communication media
Advertising provides job opportunities
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18. Personal Selling The most adaptable promotion method
The most expensive promotion method
Kinds of salespersons
Order getter
Responsible for creative selling: selling a firm’s products to new customers and increasing sales to present customers
Order taker
Handles repeat sales in ways that maintain positive relationships with customers
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19. Personal Selling (cont’d)
Kinds of salespersons (cont’d)
Sales support personnel
Employees who aid in selling but are more involved in locating prospects, educating customers, building goodwill for the firm, and providing follow-up service
Missionary salespersons
Visit retailers to encourage an initial purchase of the manufacturer’s products from wholesalers
Trade salespersons
Work with customers to promote and increase retail sales of the manufacturer’s products
Technical salespersons
Assist current customers with technical matters related to the manufacturer’s products
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20. The Personal-Selling Process
Source: William M. Pride and O.C. Ferrell, Marketing: Concepts and Strategies, 13th ed. Copyright © 2006 by Houghton Mifflin Company. Adapted with permission.
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21. Managing Personal Selling
Setting sales objectives
Concrete, quantifiable terms
Specified time period
Specified geographic area
Adjusting the size of the sales force to meet changes in the firm’s marketing plan and the marketing environment
Attracting and hiring effective salespersons
Training salespersons
Compensating salespersons
Motivating salespersons
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22. Sales Promotion
Activities or materials that are direct inducements to customers or salespersons
Objectives
To draw new customers
To encourage trial of a new product
To invigorate the sales of a mature brand
To boost sales to current customers
To reinforce advertising
To increase traffic in retail stores
To steady irregular sales patterns
To build up reseller inventories
To neutralize competitive promotional efforts
To improve shelf space and displays
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23. Sales Promotion Methods
Consumer sales promotion method
Designed to attract consumers to particular retail stores and to motivate them to purchase certain new or established products
Trade sales promotion method
Designed to encourage wholesalers and retailers to stock and actively promote a manufacturer’s product
Factors influencing the choice of sales promotion method
Objectives of the sales promotional effort
Product characteristics
Target market profile
Distribution channels
Availability of resellers
Competitive and regulatory forces in the environment
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24. Sales Promotion Methods (cont’d)
Rebate
A return of part of the purchase price of a product
Coupon
Reducing the purchase price of a particular item by a stated amount at the time of purchase
Sample
A free product given to customers to encourage trial
Premium
A gift a producer offers to a customer in return for buying its product
Frequent-user incentives
A program that rewards customers who engage in repeat (frequent) purchases
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25. Sales Promotion Methods (cont’d)
Point-of-purchase displays
Promotional material in the retail store designed to inform customers and encourage purchases
Trade shows
Industry-wide exhibits at which many sellers display their products
Buying allowance
A temporary price reduction to resellers for purchasing specified quantities of a product
Cooperative advertising
A manufacturer agrees to pay a certain amount of the retailer’s media cost for advertising the manufacturer’s product
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26. Public Relations
A broad set of communication activities used to create and maintain favorable relationships between an organization and various public groups, both internal and external
Customers, employees, stockholders, suppliers, educators, the media, government officials, society in general
Types of public relations tools
Written and spoken communications
Brochures, newsletters, company magazines, annual reports, news releases, corporate-identity materials, speeches
Event sponsorship
Special events such as concerts and charity functions that the firm underwrites wholly or partially
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27. Public Relations (cont’d)
Publicity
Communication in news-story form about an organization, its products, or both
News release
Feature article
Captioned photograph
Press conference
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28. The Uses of Public Relations
To promote people, places, activities, ideas
To enhance the reputation of the organization by increasing awareness of company products and activities
To create specific positive company images
To maintain the public visibility of the company
To reduce the effects of negative events on the company’s reputation
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29. Promotion Planning Promotional campaign
A plan for combining and using the four promotional methods—advertising, personal selling, sales promotion, and public relations—in a particular promotion mix to achieve one or more marketing goals
What will be the role of promotion in the overall marketing mix?
To what extent will each promotional method be used in the promotion mix?
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30. Promotion and Marketing Objectives
Providing product information to target markets
Increasing market share by convincing new customers to purchase
Positioning the product relative to the images customers have of competing products
Stabilizing sales by increasing sales during slack periods or for products that are declining
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31. Developing the Promotion Mix
Marketers may use several promotion mixes at the same time for different products
The promotion mix ingredients depend on
Organizational resources and objectives
Target market characteristics
Product characteristics
The cost and availability of promotional methods
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