Integrated Marketing Communications

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Integrated Marketing Integrated Marketing CommunicationsCommunications

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Prepared byPrepared byDeborah BakerDeborah Baker

Texas Christian UniversityTexas Christian University

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Learning ObjectivesLearning Objectives

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1.1. Discuss the role of promotion in the Discuss the role of promotion in the marketing mix.marketing mix.

2. Discuss the elements of the promotional 2. Discuss the elements of the promotional mix.mix.

3. Describe the communication process.3. Describe the communication process.

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Learning Objectives (continued)Learning Objectives (continued)

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4. Explain the goal and tasks of promotion.4. Explain the goal and tasks of promotion.

5. Discuss the AIDA concept and its 5. Discuss the AIDA concept and its relationship to the promotional mix.relationship to the promotional mix.

6. Describe the factors that affect the 6. Describe the factors that affect the promotional mix.promotional mix.

7.7. Discuss the concept of integrated Discuss the concept of integrated marketing communications.marketing communications.

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Learning Objective Learning Objective 1

Discuss the role of promotionDiscuss the role of promotionin the marketing mix.in the marketing mix.

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PromotionPromotion1

Communication by marketers that informs, persuades, and reminds

potential buyers of a product in order to

influence an opinion or elicit a response.

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Promotional StrategyPromotional Strategy1

A plan for the optimal use of the elements of promotion:

AdvertisingAdvertisingPublic RelationsPublic RelationsPersonal SellingPersonal SellingSales PromotionSales Promotion

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The Role of PromotionThe Role of Promotion1

Promotional MixPromotional Mix

•Advertising•Public Relations•Personal Selling•Sales Promotion

Promotion PlanPromotion Plan

Overall Overall Marketing Marketing ObjectivesObjectives

Marketing MixMarketing Mix• ProductProduct• DistributionDistribution• PromotionPromotion• PricePrice

Target MarketTarget Market

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Differential AdvantageDifferential Advantage

Unique Features

Excellent Service

Low Prices

Rapid Delivery

High Product Quality

FeaturesFeaturesthat providethat provideDifferentialDifferentialAdvantageAdvantage

1

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Learning Objective Learning Objective 2

Discuss the elements Discuss the elements of the promotional mix.of the promotional mix.

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Promotional MixPromotional Mix

Combination of promotion tools used to reach the target market and fulfill

the organization’s overall goals.

AdvertisingAdvertisingPublic RelationsPublic RelationsPersonal SellingPersonal SellingSales PromotionSales Promotion

2

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Promotional MixPromotional MixAdvertising

Elementsof the

PromotionalMix

Public Relations

Personal Selling

Sales Promotion

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AdvertisingAdvertising

Impersonal, one-way mass communication

about a product or organization that is

paid for by a marketer.

2

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Advertising MediaAdvertising Media

Traditional Advertising Media

ElectronicAdvertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Computer modems Fax machines

2

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AdvertisingAdvertising

AdvantagesAdvantages

Ability to reach large number of people

Cost per contact is low

Can be micro-targeted

DisadvantagesDisadvantages

Total cost is high

2

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Public RelationsPublic RelationsThe marketing function thatevaluates 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.

2

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Public RelationsPublic Relations

Evaluates public attitudes

Identifies areas of public interest

Executes programs to “win” public

Functions ofFunctions ofPublic RelationsPublic Relations

2

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PublicityPublicity2

Public information about a company, good, or service

appearing in the mass media as a news item.

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Sales PromotionSales Promotion2

Marketing activities--other than personal selling,

advertising, and public relations--that stimulate consumer buying and dealer effectiveness.

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Sales PromotionSales Promotion

EndConsumers

Trade Customers

CompanyEmployees

Sales PromotionSales PromotionTargetsTargets

2

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Sales Promotion Sales Promotion Free samples

Contests

Premiums

Trade Shows

Vacation Giveaways

Coupons

Popular ToolsPopular Toolsforfor

Consumer SalesConsumer SalesPromotionPromotion

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Personal SellingPersonal Selling2

Planned presentation to one or more prospective buyers for the purpose

of making a sale.

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Personal SellingPersonal Selling

Traditional Selling

Relationship Selling

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Learning Objective Learning Objective

Describe the Describe the communication process.communication process.

3

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CommunicationCommunication3

The process by which we exchange or share meanings through a

common set of symbols.

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Marketing CommunicationMarketing Communication

Categories of Communication

InterpersonalInterpersonalCommunicationCommunication

MassMassCommunicationCommunication

3

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The Communication ProcessThe Communication Process

As SendersAs Senders As ReceiversAs Receivers

Inform

Persuade

Remind

Develop messages

Adapt messages

Spot new communication opportunities

3

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The Sender and EncodingThe Sender and Encoding3

Sender The originator of the message in the communication process.

EncodingThe conversion of a sender’s ideas

and thoughts into a message, usually in the form of words or signs.

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The Communication ProcessThe Communication ProcessNoise

Sender EncodingMessage

MessageChannel

MessageChannel

DecodingMessage Receiver

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Characteristics of AdvertisingCharacteristics of Advertising

Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility

AdvertisingAdvertising

Indirect and non-personal LowLittle

DelayedOne-way

YesYes

Fast Same message to all audiences

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Characteristics of Public RelationsCharacteristics of Public Relations3

Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility

Public RelationsPublic Relations

Usually indirect, non-personal Moderate to low

LittleDelayedOne-way

NoNo

Usually fast Usually no direct control

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Characteristics of Characteristics of Sales PromotionSales Promotion

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Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility

Sales PromotionSales Promotion

Usually Indirect and non-personal Moderate to low

Little to moderateVaries

Mostly one-wayYesYesFast

Same message to varied target

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Characteristics of Personal SellingCharacteristics of Personal Selling3

Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility

Personal SellingPersonal Selling

Direct and face-to-face HighMuch

ImmediateTwo-way

YesYes

Slow Tailored to prospect

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Learning Objective Learning Objective

Explain the goal and tasks of promotion.Explain the goal and tasks of promotion.

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Goals and Tasks of PromotionGoals and Tasks of PromotionInforming Reminding

Persuading

TargetAudience

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Goals and Tasks of PromotionGoals and Tasks of PromotionInforming Reminding

Persuading

TargetAudience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity

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Goals and Tasks of PromotionGoals and Tasks of PromotionInformative Objective

• Increase awareness

• Explain how product works

• Suggest new uses

• Build company image

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Goals and Tasks of PromotionGoals and Tasks of PromotionPersuasion Objective

• Encourage brand switching

• Change customers’ perception of product attributes

• Influence buying decision

• Persuade customers to call

4

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Goals and Tasks of PromotionGoals and Tasks of PromotionReminder Objective

• Remind customers that product may be needed

• Remind customers where to buy product

• Maintain customer awareness

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Learning Objective Learning Objective

Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mix.the promotional mix.

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The AIDA ConceptThe AIDA Concept

Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.

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The AIDA ConceptThe AIDA Concept

AAttentionttention

IInterestnterest

DDesireesire

AActionction

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AIDA and the Promotional MixAIDA and the Promotional MixAwarenessAwareness InterestInterest DesireDesire ActionAction

AdvertisingAdvertising Veryeffective

Veryeffective

Somewhateffective

Noteffective

PublicPublicRelationsRelations

Veryeffective

Veryeffective

Veryeffective

Noteffective

SalesSalesPromotionPromotion

Somewhateffective

Somewhateffective

Veryeffective

Veryeffective

PersonalPersonalSellingSelling

Somewhateffective

Veryeffective

Veryeffective

Somewhateffective

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Learning Objective Learning Objective 6

Describe the factors that Describe the factors that affect the promotional mix.affect the promotional mix.

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Factors Affecting the Factors Affecting the Promotional MixPromotional Mix

Nature of Product

Stage in PLC

Target Market Factors

Type of Buying Decision

Promotion Funds

Push or Pull Strategy

Factors Factors AffectingAffectingChoice of Choice of

Promotional MixPromotional Mix

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Nature of the ProductNature of the Product6

Product characteristics – Business product vs. consumer product

Costs and risks Social risk

Factors that influence promotional mixFactors that influence promotional mix

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Stage in the Product Life CycleStage in the Product Life Cycle6

TimeTime

IntroductionIntroduction GrowthGrowth

MaturityMaturity

DeclineDecline

Sale

s ($

)Sa

les

($)

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Product Life Cycle and theProduct Life Cycle and thePromotional MixPromotional Mix

Light Advertising,

pre-introduction

Publicity

Heavy use of advertising,

PR forawareness;

sales promotion

for trial

AD/PRdecreaseLimited Sales

Promotion, Personal Selling for

distribution

Ads decrease.

Sales Promotion,Personal Selling

Reminder & Persuasive

Advertising, PR, Brand

loyaltyPersonal Selling for

distribution

IntroductionIntroduction GrowthGrowth

MaturityMaturityDeclineDecline

Sale

s ($

)Sa

les

($)

TimeTime

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Target Market CharacteristicsTarget Market Characteristics6

FOR: Widely scattered

market Informed buyers Repeat buyers

Advertising

Sales Promotion

Less Personal Selling

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Type of Buying DecisionType of Buying DecisionAdvertising

Sales PromotionType ofType of

Buying DecisionBuying Decisionaffectsaffects

Promotional Promotional Mix ChoiceMix Choice

ComplexComplex

RoutineRoutine

Personal Selling

Not RoutineNot Routineor Complexor Complex

Advertising

Public Relations

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Available FundsAvailable Funds

Trade-offs with funds available

Number of people in target market

Quality of communication needed

Relative costs of promotional elements

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Push and Pull StrategiesPush and Pull Strategies

ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler

Wholesaler Wholesaler promotes to promotes to

retailerretailer

Retailer Retailer promotes topromotes toconsumerconsumer

ConsumerConsumerbuys frombuys from

retailerretailer

PUSH STRATEGYPUSH STRATEGY

Orders to manufacturer

ManufacturerManufacturerpromotes to promotes to

consumerconsumer

Consumer Consumer demands demands productproduct

from retailerfrom retailer

Retailer Retailer demands demands productproduct

from wholesalerfrom wholesaler

Wholesaler Wholesaler demandsdemands

product fromproduct frommanufacturermanufacturer

Orders to manufacturer

PULL STRATEGYPULL STRATEGY

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Learning Objective Learning Objective

Discuss the concept of Discuss the concept of integrated marketing communications.integrated marketing communications.

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Integrated Marketing Integrated Marketing CommunicationsCommunications

A method of carefully coordinating all

promotional activities to produce a consistent,

unified message that is customer focused.

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IMC Popularity GrowthIMC Popularity Growth7

Proliferation of thousands of media choices

Fragmentation of the mass market

Slash of advertising spending in favor of promotional techniques