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

2. Question Think about your most recent purchase. What was it?
What was your choice influenced by?
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3. The Role of Promotion Promotion
Communication about an organization and its products that is intended to inform, persuade, or remind target market members
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4. 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 (coupons etc)
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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5. 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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6. Classify each of the promotion efforts
McDonald’s uses television to tell customers about free French fries with purchase of a Big Mac.
A Toyota salesperson tells customers about the quality of Michelin tires.
CNN has a story about Keebler’s latest ad campaign. The story features a commercial with elves.
Quaker Oats places an ad in Good Housekeeping magazine with a coupon attached.
A pharmaceutical salesperson leaves free samples with a physician
Advertising PR
Selling
Promotion
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7. What is your favorite commercial?
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8. Advertising Media
The forms of communication through which advertising reaches its audience
Newspapers (25% of advertising dollars)
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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9. 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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10. 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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11. Try this
Design a half page yellow pages ad for the admissions department of a college or university.
Present your ad to the class.
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12. 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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13. 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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14. 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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15. 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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16. 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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17. 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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18. 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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19. 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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20. 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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21. 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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22. 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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