Chapter 14 Version 6e 1 ©2002 South-Western chapter Integrated Marketing Integrated Marketing Communications Communications 14 Prepared by Prepared by Deborah Baker Deborah Baker Texas Christian University Texas Christian University
Feb 24, 2016
Chapter 14 Version 6e 1©2002 South-Western
chapter
Integrated Marketing Integrated Marketing CommunicationsCommunications
14
Prepared byPrepared byDeborah BakerDeborah Baker
Texas Christian UniversityTexas Christian University
Chapter 14 Version 6e 2©2002 South-Western
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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
2
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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
2
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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
2
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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
3
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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
3
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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
3
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.
4
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Goals and Tasks of PromotionGoals and Tasks of PromotionInforming Reminding
Persuading
TargetAudience
4
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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
4
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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
4
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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
4
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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.
5
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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.
5
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The AIDA ConceptThe AIDA Concept
AAttentionttention
IInterestnterest
DDesireesire
AActionction
5
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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
5
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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
6
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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
6
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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
6
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Learning Objective Learning Objective
Discuss the concept of Discuss the concept of integrated marketing communications.integrated marketing communications.
7
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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.
7
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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