1. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1 Learning Outcomes: Chapter 14 Integrated Marketing Communications  1. Discuss the role of promotion in the marketing mix  2. Discuss the elements of the promotional mix  3. Describe the communication process  4. Explain the goals and tasks of promotion  5. Discuss the AIDA concept and it relationship to the promotional mix  6. Describe factors affecting the promotional mix  7. Discuss the concept of integrated marketing communications

2. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 2 LO 1 The Role of Promotion Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. Promotion Promotional Strategy Promotional Strategy A plan for the optimal use of the elements of promotion:  Advertising  Public Relations  Sales Promotion  Personal Selling

3. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 3 LO 1 The Role of Promotion in the Marketing Mix Overall Marketing Objectives Marketing Mix Product Place Promotion Price Marketing Mix Product Place 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

4. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 4 LO 1 Competitive Advantage Unique features Excellent service Low prices Rapid delivery High product quality

5. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 5 Elements of The Promotional Mix LO 2 Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals.  Advertising  Public Relations  Sales Promotion  Personal Selling Promotional Mix Promotional Mix

6. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 6 The Promotional Mix LO 2 Impersonal, one-way mass communication about a product or organization that is paid for by a marketer. Advertising

7. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 7 Advertising Media LO 2 Traditional Advertising Media New Advertising Media  Television  Radio  Newspapers  Magazines  Books  Direct mail  Billboards  Transit cards  Internet  Banner ads  Viral marketing  E- mail  Interactive video

8. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 8 Advertising LO 2 Advantages Disadvantages  Reach large number of people  Low cost per contact  Can be micro- targeted  Total cost is high  National reach is expensive for small companies

9. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 9 Public Relations LO 2 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. Public Relations Public Relations

10. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 10

11. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 11 Sales Promotion LO 2 End Consumers End Consumers Trade Customers Company Employees Company Employees Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons

12. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 12 Examples of Sales Promotion

13. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 13 Personal Selling LO 2 Traditional Selling Traditional Selling Relationship Selling Relationship Selling

14. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 14 LO 3 The process by which we exchange or share meanings through a common set of symbols. Online http://www.mcdonalds.com Communication Communication & the Communication Process Categories of Communication Categories of Communication Interpersonal Communication Interpersonal Communication Mass Communication Mass Communication

15. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 15 LO 3 Noise Sender Encoding Message Feedback Channel Feedback Channel Message Channel Message Channel Decoding Message Decoding Message Receiver The Communication Process

16. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 16 LO 3 Characteristics of the Elements in the Promotional Mix

17. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 17 The Impact of Blogging LO 3 Sponsored by a company or one of its brands and maintained by one or more of the company’s employees. Noncorporate Blogs Corporate Blogs Corporate Blogs Independent and not associated with the marketing efforts of any particular company or brand.

18. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 18 Goals and Tasks of Promotion LO 4 Informing Reminding Persuading Target Audience Target Audience PLC Stages PLC Stages: Introduction Early Growth PLC Stages: Growth Maturity PLC Stages: Maturity

19. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 19 Harley Davidson Image reminding you it is still the American Outlaw

20. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 20 The AIDA Concept LO 5 Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. A ttention I nterest D esire A ction A ttention I nterest D esire A ction AIDA Concept AIDA Concept

21. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 21 LO 5 The AIDA Concept

22. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 22 LO 6 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

23. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 23 LO 6 Stage in the Product Life Cycle 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

24. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 24 LO 6 Target Market Characteristics For…  Widely scattered market  Informed buyers  Brand-loyal repeat purchasers Advertising Sales Promotion Less Personal Selling

25. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 25 LO 6 Type of Buying Decision Advertising Sales Promotion Routine Personal Selling Neither Routine nor Complex Neither Routine nor Complex Advertising Public Relations Print Advertising Complex

26. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 26 LO 6 Available Promotional Funds  Trade-offs with funds available  Number of people in target market  Quality of communication needed  Relative costs of promotional elements

27. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 27 LO 6 Push and Pull Strategies Manufacturer promotes to wholesaler Manufacturer promotes to wholesaler Wholesaler promotes to retailer Wholesaler promotes to retailer Retailer promotes to consumer Retailer promotes to consumer Consumer buys from retailer Consumer buys from retailer PUSH STRATEGY Orders to manufacturer Manufacturer promotes to consumer Manufacturer promotes to consumer Consumer demands product from retailer Consumer demands product from retailer Retailer demands product from wholesaler Retailer demands product from wholesaler Wholesaler demands product from manufacturer Wholesaler demands product from manufacturer Orders to manufacturer PULL STRATEGY

28. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 28 Integrated Marketing Communications LO 7 Integrated Marketing Communications Integrated Marketing Communications The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.

29. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 29 IMC Popularity Growth Is Due To: LO 7  Proliferation of thousands of media choices  Fragmentation of the mass market  Slash of advertising spending in favor of promotional techniques that generate immediate response

30. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 30 Learning Outcomes: Chapter 14 Integrated Marketing Communications – We know  1. The role of promotion in the marketing mix  2. The elements of the promotional mix  3. The communication process  4. The goals and tasks of promotion  5. The AIDA concept and it relationship to the promotional mix  6. The factors affecting the promotional mix  7. The concept of integrated marketing communications

31. Chapter 14Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 31 Now  Go to www.mktg4.comwww.mktg4.com  Review flash card for chapter 14  Explore other aspects of this site for chapter 14 as time permits  Take chapter 14 practice quiz on this site  Go to WebCt and take chapter 14 quiz in the allocated time  Good Luck