1. Chapter 13
Integrated Marketing Communications: Advertising, Sales Promotion, and Public Relations

2. Road Map: Previewing the Concepts
Discuss the process and advantages of integrated marketing communication.
Define the five promotion tools and discuss the factors that must be considered in shaping the overall promotion mix.
Describe and discuss the major decisions involved in developing an advertising program.
Explain how sales promotion campaigns are developed and implemented.
Explain how companies use public relations to communicate with their publics.

3. American Standard
Your mission – prepare a promotion campaign for American Standard’s line of toilets.
Campaign materials – media ads, direct mailing, and personal contacts – to build sales and market share.

4. Marketing Communication Mix or Promotion Mix
Advertising
Sales Promotion
Product’s Design
Direct Marketing
Product’s Price
Stores that Sell the Product
Personal Selling
Public Relations
Product’s Package

5. The Changing Communications Environment
Market Fragmentation Led to
Media Fragmentation
Marketers Have Shifted
Away From Mass
Marketing
Less Broadcasting
2 Factors
are Changing the Face of Today’s
Marketing Communications:
Improvement in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting

6. The Need for Integrated Marketing Communications
With Integrated Marketing Communications (IMC), the Company Carefully Integrates and Coordinates Its Many Communications Channels to Deliver a Clear, Consistent, and Compelling Message About the Organization and Its Products.

7. Integrated Marketing Communications (Fig. 13-1)

8. Setting the Overall Communication Mix
Advertising
Reaches Many Buyers, Repeats Message Many Times, Impersonal, Expensive
Personal
Selling
Personal Interaction, Relationship Building, Most Expensive Promo Tool
Sales
Promotion
Wide Assortment of Tools, Rewards Quick Response, Efforts Short-Lived
Public
Relations
Very Believable, Dramatize a Company or Product, Underutilized
Direct
Marketing
Nonpublic, Immediate, Customized, Interactive

9. Push versus Pull Promotion Strategy (Fig. 13-2)

10. Advertising Advertising is centuries old.
U.S. advertisers spend in excess of $244 billion each year; worldwide spending exceeds $465 billion.
Advertising is used by:
Business firms,
Nonprofit organizations,
Professionals, and
Social agencies.

11. Major Decisions in Advertising (Fig. 13-3)

12. Setting Advertising Objectives
Informative Advertising
Inform Consumers or
Build Primary Demand
i.e DVD Players
Persuasive Advertising
Build Selective Demand
i.e Sony DVD Players
Advertising Objective
Specific Communication Task
Accomplished with a Specific
Target Audience
During a Specific Period of Time
Comparative Advertising
Compares One Brand
to Another
i.e. Avis vs. Hertz
Reminder Advertising
Keeps Consumers
Thinking About a Product
i.e. Coca-Cola

13. Discussion Questions
Advertising objectives can be classified by primary purpose: to inform, persuade, or remind.
Think of examples of ads that address each of these objectives.
Using Table 13-1, discuss why your examples fit the chosen objective.
This question asks the students to become involved in and make judgments of advertising objectives. Ask students to consider a variety of media formats (magazines, TV, radio, etc) to accomplish this objective or they can be instructed to “surf” the Web and investigate sites and then apply advertising objectives criteria to what they find.
Table 13-1 provides several versions (within the major categories--to inform, to persuade, and to remind) that may be applied to the student’s advertisements. The students should be instructed to identify which of the sub-categories might apply.

14. Setting the Advertising Budget
Methods of Setting the Advertising Budget for Each Product and Market.
Affordable
Based on What the
Company Can Afford
Objective-and-Task
Based on Determining
Objectives & Tasks,
Then Estimating Costs
Percentage-of-Sales
Based on a Certain
Percentage of Current
or Forecasted Sales
Competitive-Parity
Based on the Competitors’
Promotion Budget

15. Developing Advertising Strategy
Advertising Strategy Consists of Two Major Elements and Companies are Realizing the Benefits of Planning These Two Elements Jointly.
Creating the Advertising
Messages
Selecting the Advertising Media

16. Creating the Advertising Message: Message Strategy
Develop a Message
Focus on
Customer Benefits
Creative Concept
“Big Idea”
Visualization or Phrase
Advertising Appeals
Meaningful, Believable
& Distinctive

17. Developing Advertising Strategy: Message Execution
Testimonial Evidence
Slice of Life
Scientific Evidence
Typical
Message
Execution
Styles
Lifestyle
Technical Expertise
Fantasy
Personality Symbol
Mood or Image
Musical

18. Advertising Strategy: Selecting Advertising Media
Deciding on reach, frequency, and impact.
Choosing among the major media types.
Media habits of target customers,
Nature of the product,
Types and costs of messages.
Selecting specific media vehicles.
Specific media within each general media type.
Deciding on media timing.
Scheduling advertising over the course of a year.

19. Evaluating Advertising
Advertising Program Evaluation
Evaluating Advertising
Communication Effects
(Copy Testing)
Is the Ad Communicating
Well?
Sales Effects
Is the Ad Increasing
Sales?

20. Other Advertising Considerations
Sales Departments in
Small Companies
Advertising Departments
in Larger Companies
Advertising Agency
Firm that Assists Companies
in the Planning, Creation, &
Implementation of Their
Advertising Programs
International Issues

21. What is Sales Promotion?
Sales Promotion Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service.
Offers Reasons to Buy NOW.

22. Rapid Growth of Sales Promotion
Sales promotion can take the form of consumer promotions, business promotions, trade promotions, or sales force promotions.
Rapid growth in the industry has been achieved because:
Product managers are facing more pressure to increase their current sales,
Companies face more competition,
Advertising efficiency has declined,
Consumers have become more deal oriented.

23. Sales Promotion Objectives
Consumer Promotions: increase short-term sales or help build long-term market share.
Trade Promotions: get retailers to:
carry new items and more inventory,
advertise products,
give products more shelf space, and
buy product ahead.
Sales Force: getting more sales support.
In general, sales promotion should focus on consumer relationship building.

24. Major Consumer Sales Promotion Tools
Sample
Coupons
Cash Refunds
Price Packs
Premiums
Advertising
Specialties
Trial amount of a product
Savings when purchasing specified products
Refund of part of the purchase price
Reduced prices marked on the label or package
Goods offered free or low cost as an incentive to buy a product
Articles imprinted with an advertiser’s name given as gifts

25. Major Consumer Sales Promotion Tools
Patronage Rewards
Cash or Other Award Offered for Regular Use of a Product
Point-of-Purchase
Displays or Demonstrations at the Point of Purchase
Contest
Consumers Submit an Entry to be Judged
Sweepstakes
Consumers Submit Their Names for a Drawing
Games
Consumers Receive Something Each Time They Buy Which May Help Them Win a Prize

26. Interactive Student Assignments
Which of the sales promotion tools described in the chapter would be best for stimulating sales of the following products or services?
Gummy Bears new Black Cherry flavor,
Proctor & Gamble’s efforts to bundle laundry detergent and fabric softener together in a combined marketing effort,
Outpost.com attempts to help consumers remember what it sells as well as its Web address.
A brief summary of the primary chief function or characteristic of each of the consumer-promotion tools would be: Samples--offer to consumers of a trial amount of a product. Coupons--certificates that give buyers a saving when they purchase a specified product. Cash refund offers (rebates)--offers to refund part of the purchase price of a product to consumers who send a proof of purchase to the manufacturer. Price packs (cents-off deals)--reduced prices that are marked by the producer directly on the label or package. Premiums--goods offered either free or at low cost as an incentive to buy a product. Advertising specialties--useful articles imprinted with an advertiser’s name that are given as gifts to consumers. Patronage rewards--cash or other rewards for the regular use of a certain company’s products or services. Point-of-purchase (POP) promotions--displays and demonstrations that take place at the point of purchase or sale. Contests, sweepstakes, and games--promotional events that give consumers the chance to win something (such as cash, trips, or goods) by luck or through extra effort.
Students are free to choose from among the tools found in the list above. There really is no right or wrong answer (even though some choices or combinations are obviously better than others). Some suggestions that might be used to begin a discussion are as follows:
Gummy Bears new Black Cherry flavor--samples, coupons, premiums, advertising specialties, point-of purchase, and contests, sweepstakes, and games.
Proctor and Gamble decides to bundle laundry detergent and fabric softener together--coupons, price packs, premiums, and point-of-purchase.
Outpost.com--advertising specialties, contests, sweepstakes, and games.

27. Major Trade Sales Promotion Tools
Trade-Promotion Objectives
Trade-Promotion Tools
Discounts
Allowances
Persuade Retailers or
Wholesalers to Carry a Brand
Give a Brand Shelf Space
Promote a Brand in
Advertising
Free Goods
Push a Brand to Consumers
Push Money
Specialty Ad Items

28. Major Business Sales Promotion Tools
Business-Promotion Objectives
Business-Promotion Tools
Conventions
Trade Shows
Sales Contests
Generate Business Leads
Stimulate Purchases
Reward Customers
Motivate Salespeople

29. Developing the Sales Promotion Program
Decide on the Size of the Incentive
Set Conditions for Participation
Developing the Sales Promotion Program
Determine How to Promote and
Distribute the Promotion Program
Determine the Length of the Program
Evaluate the Program

30. What is Public Relations?
Public Relations Involves Building Good Relations With the Company’s Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate Image, and Handling or Heading Off Unfavorable Rumors, Stories, and Events.

31. Major Public Relations Functions
Press Relations or Agentry
Product Publicity
Public Affairs
Lobbying
Investor Relations
Development
Public Relations Departments May Perform Any or All of the Following Functions:

32. Major Public Relations Tools
News
Web Site
Speeches
Public Service Activities
Special Events
Corporate Identity Materials
Written Materials
Audiovisual Materials

33. Rest Stop: Reviewing the Concepts
Discuss the process and advantages of integrated marketing communication.
Define the five promotion tools and discuss the factors that must be considered in shaping the overall promotion mix.
Describe and discuss the major decisions involved in developing an advertising program.
Explain how sales promotion campaigns are developed and implemented.
Explain how companies use public relations to communicate with their publics.