1. Chapter 14 Integrated Marketing Communications

2. Promotion
COMMUNICATION that informs, persuades and reminds potential customers of a product in order to influence their opinion or elicit a response

3. The Role of Promotion in the Marketing Mix
Chapter 14 Integrated Marketing Communications
Overall Marketing Objectives
Marketing Mix
Product
Place
Promotion
Price
Target Market
Promotional Mix
Advertising
Public Relations
Sales Promotion
Personal Selling
Promotion Plan
Notes:
As Exhibit 14.1 shows, the marketing manager determines the goals of the promotional strategy in light of the firm’s overall goals for the marketing mix.
Using the overall goals, marketers combine the elements of the promotional strategy into a coordinated plan.
This plan becomes an integral part of the marketing strategy for reaching the target market. The main function of promotional strategy is to convince target customers that the goods and services offered provide a competitive advantage over the competition.

4. The Elements of Promotion
Advertising
Informative or persuasive message carried by a non-personal medium.

5. The Elements of Promotion
Personal selling:
Person-to-person interaction with buyer or seller.
Purpose: to persuade buyer to accept a point of view

6. The Elements of Promotion
Publicity:
Message about a product not paid for by a sponsor.
Public Relations:
Activities involved in actively seeking publicity.

7. The Elements of Promotion
Sales Promotion:
Promotional activities intended to stimulate buyer purchases or dealer effectiveness.

8. Chapter 14 Integrated Marketing Communications
The process by which we exchange or share meanings through a common set of symbols.
Online: McDonald’s
How is McDonald's encoding messages at its Web site in order to communicate its marketing message? To whom is its message designed to appeal? Do you think the approach will be effective at improving sales of food products and/or increasing brand loyalty? Why or why not?
Notes:
Promotional strategy is closely related to the process of communications. As humans we assign meaning to feelings, ideas, facts, attitudes, and emotions.
When a company develops a new product, changes an existing one, or tries to increase sales, it must communicate its selling message to potential customers.

9. Marketing Communication
Chapter 14 Integrated Marketing Communications
Marketing Communication
Categories of
Communication
Interpersonal
Mass
Notes:
Communication can be divided into two major categories:
Interpersonal communication is direct, face-to-face communication between two or more people.
Mass communication refers to communicating a concept or message to larger audiences, usually through a mass medium such as television or newspapers.
When a company advertises, it does not know the consumers personally, nor is it able to respond immediately to reactions to the advertising message. Instead the marketing manager must wait and see how people are reacting to the mass-communicated promotion. Any clutter from competitors’ messages or other distractions can reduce the effectiveness of the mass communication effort.

10. The Communication Process
Chapter 14 Integrated Marketing Communications
The Communication Process
Noise
Sender
Encoding Message
Feedback
Channel
Message
Decoding
Receiver
Notes:
Marketing communication is a two-way process, as shown in Exhibit 14.2.
The sender originates the message.
Encoding is the conversion of the sender’s ideas and thoughts into a message, usually words or signs.
Transmission of a message requires a channel—some communication medium. Reception occurs when the message is detected by the receiver. Transmission may be hindered because of noise—anything that interferes with, distorts, or slows down the transmission of information.
Decoding is the interpretation of the language and symbols sent. Proper match between the message to be conveyed and the target market’s attitude is the job of the marketing manager. Differences in culture, age, social class, education, and ethnicity can lead to miscommunication. Marketers targeting consumers in foreign countries must also worry about translation and miscommunication issues.
The receiver’s response to a message is direct feedback to the source. Since mass communicators are cut off from direct feedback, they rely on market research or analysis of viewer perceptions for indirect feedback.

11. Chapter 14 Integrated Marketing Communications
The Impact of Blogging
Corporate
Blogs
Sponsored by a company or one of its brands and maintained by one or more of the company’s employees.
Noncorporate Blogs
Independent and not associated with the marketing efforts of any
particular company or brand.
Notes:
The Internet and related technologies are having an impact on marketing communication including the promotion mix. The rise of blogging has created a new way for marketers to manage their image, connect with consumers, and generate product interest and desire.

12. Goals and Tasks of Promotion
Chapter 14 Integrated Marketing Communications
Goals and Tasks of Promotion
Informing
Reminding
Persuading
Target
Audience
Notes:
Promotion seeks to modify behavior and thoughts in some way. It also strives to reinforce existing behavior.
Promotion has three basic tasks: it can inform the target audience, persuade the target audience, or remind the target audience. Often a marketer will try to accomplish two or more of these tasks at the same time.

13. Goals and Tasks of Promotion
Chapter 14 Integrated Marketing Communications
Goals and Tasks of Promotion
Informing
Reminding
Persuading
Target
Audience
PLC Stages:
Introduction
Early Growth
Growth
Maturity
Notes:
The informing phase of promotion seeks to convert an existing need into a want or to stimulate interest in a new product. It is more prevalent during the early stages of the product life cycle.
Persuasive promotion is designed to stimulate a purchase or an action. It becomes the main promotion goal when the product enters the growth stage of its life cycle.
Reminder promotion is used to keep the product/brand name in the public’s mind. It is effective during the maturity cycle.
A discussion of each category follows.
Discussion/Team Activity:
Name products/brands and discuss the stage of their product life cycle. Categorize the type of promotion—informative, reminder, or persuasive-- that is used in the product/brand promotional mix.

14. The AIDA Concept Attention Desire Action Interest
Chapter 14 Integrated Marketing Communications
The AIDA Concept
AIDA Concept
Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.
Attention
Interest
Desire
Action
Notes:
The goal of any promotion is to get someone to buy a good or service, or take some action. A classic model for reaching promotional goals is called the AIDA concept—attention, interest, desire, and action—the stages of consumer involvement.
This model proposes that consumers respond to marketing messages in a cognitive--thinking, affective--feeling, and conative--doing sequence.

15. The AIDA Concept Conative (doing) Affective (feeling)
Chapter 14 Integrated Marketing Communications
The AIDA Concept
Action
Desire
Interest
Attention
Cognitive (thinking)
Affective (feeling)
Conative (doing)
Online:
NASCAR
Kellogg’s
What kind of promotions are coming out of the relationship between Kellogg’s cereals and NASCAR racing? How successful do you think NASCAR promotions will be in selling cereal? How effective will Kellogg’s promotions be in increasing the number of NASCAR fans?
Online

16. Factors Affecting the Choice of Promotional Mix
Chapter 14 Integrated Marketing Communications
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
Notes:
Promotional mixes vary a great deal from one product and one industry to the next.
Advertising and personal selling are used to promote goods and services, supplemented by sales promotion. Public relations helps develop a positive image for the product and the organization. A firm may choose not to use all four promotional elements, or it may choose to use them in varying degrees.
This slide shows the factors affecting the promotion mix chosen by a firm. Subsequent slides describe the key points of each factor.

17. Stage in the Product Life Cycle
Chapter 14 Integrated Marketing Communications
Stage in the Product Life Cycle
Light
Advertising;
pre-
introduction
publicity
Heavy use of
PR for
awareness;
sales
promotion
for trial
AD/PR
decrease;
limited
promotion;
personal
selling for
distribution
Ads decrease;
sales promotion;
personal selling; reminder &
persuasive
Advertising,
PR, brand
loyalty;
Introduction
Growth
Maturity
Decline
Sales ($)
Time
Notes:
The Product Life Cycle is a factor in designing a promotion mix, as shown in Exhibit 14.5.
In the introduction stage, the basic goal of promotion is to inform the target audience of product availability. Advertising and public relations inform the target audience, while sales promotion encourages early trial. Personal selling gets retailers to carry the product.
During the growth stage, advertising and public relations continue to be important, although sales promotion can be reduced because customers need fewer incentives to purchase. The promotional strategy is to emphasize the product’s differential competitive advantage. Persuasive promotion is used to build and maintain brand loyalty. Personal selling has succeeded in obtaining adequate distribution for the product.
In the maturity stage, competition becomes fiercer, and persuasive and reminder advertising are more strongly emphasized. Sales promotion comes back into focus to try to increase market share.
As the product enters the decline stage, all promotion, especially advertising, is reduced. Nevertheless, personal selling and sales promotion efforts may be maintained, particularly at the retail level.

18. Type of Buying Decision
Chapter 14 Integrated Marketing Communications
Advertising
Sales Promotion
Routine
Personal Selling
Neither Routine
nor Complex
Public Relations
Print Advertising
Complex
Notes:
For a routine buying decision such as the purchase of toothpaste, the most effective promotional tools are advertising and especially sales promotion.
For buying decisions that are not routine or complex, advertising and public relationships help establish awareness.
In contrast, consumers making complex decisions need large amounts of information, and personal selling is the most effective tool. Print ads are also effective for conveying large amounts of information.
Discussion/Team Activity:
Consider recent purchases of routine and complex products. What promotion tool(s) were effective to reach the buyer and influence the purchase decision?

19. Available Funds Trade-offs with funds available
Chapter 14 Integrated Marketing Communications
Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
Notes:
When funds are available to permit a mix of promotional elements, a firm will try to optimize its return on promotion dollars while minimizing the cost per contact.
The cost per contact is high for personal selling, public relations, and sales promotions. On the other hand, the cost per contact is low for national advertising since it reaches a large number of people.
There is a trade-off among the funds available, the number of people in the target market, the quality of communication needed, and the relative costs of the promotional elements.

20. Push and Pull Strategies
Chapter 14 Integrated Marketing Communications
Push and Pull Strategies
Manufacturer
promotes to
wholesaler
Wholesaler
retailer
Retailer
consumer
Consumer
buys from
PUSH STRATEGY
Orders to manufacturer
demands
product
from retailer
from wholesaler
product from
manufacturer
PULL STRATEGY
Notes:
Manufacturers may use aggressive personal selling and trade advertising to convince a wholesaler/retailer to carry and sell their merchandise. This is known as a push strategy. The wholesaler, in turn, pushes the merchandise forward by persuading the retailer to handle the goods. The retailer uses advertising and other forms of promotion to convince customers to buy the “pushed” products.
At the other end is a pull strategy, which stimulates consumer demand to obtain product distribution. The manufacturer uses a pull strategy by focusing promotional efforts on end consumers and opinion leaders. The wholesaler then places an order for the “pulled” merchandise from the manufacturer. Consumer demand pulls the product through the channel of distribution.
A company typically uses a mix of push and pull strategies.
The Push and Pull strategies are diagrammed in Exhibit 14.6.
Discussion/Team Activity:
Discuss products and/or industries that utilize push and/or pull strategies in their promotion mix.

21. Integrated Marketing Communications
Chapter 14 Integrated Marketing Communications
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.