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Integrated Integrated Marketing Marketing Communications Communications Chapter Chapter 14 14
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Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Jan 11, 2016

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Page 1: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Integrated Integrated Marketing Communications Marketing Communications Chapter 14 Chapter 14

Page 2: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

chapter

Learning ObjectivesLearning Objectives

1414

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.

Page 3: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

chapter

Learning Objectives (continued)Learning Objectives (continued)

1414

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.

Page 4: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Integrated Marketing CommunicationsIntegrated Marketing Communications

Makes up the “Promotion P” of marketing

Objectives of IMC are to:– Inform – Persuade– Remind

Page 5: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Promotional StrategyPromotional Strategy11

A plan for the optimal use

of the elements of

promotion:

AdvertisingAdvertising

Public RelationsPublic Relations

Personal SellingPersonal Selling

Sales PromotionSales Promotion

Page 6: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

The Role of PromotionThe Role of Promotion11

Promotional MixPromotional Mix

•Advertising•Public Relations•Personal Selling•Sales Promotion

Promotion PlanPromotion Plan

Promotional MixPromotional Mix

•Advertising•Public Relations•Personal Selling•Sales Promotion

Promotion PlanPromotion Plan

Overall Overall Marketing Marketing ObjectivesObjectives

Overall Overall Marketing Marketing ObjectivesObjectives

Marketing MixMarketing Mix• ProductProduct• DistributionDistribution• PromotionPromotion• PricePrice

Marketing MixMarketing Mix• ProductProduct• DistributionDistribution• PromotionPromotion• PricePrice

Target MarketTarget MarketTarget MarketTarget Market

Page 7: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Promotional MixPromotional Mix

Combination of promotion

tools used to reach the

target market and fulfill

the organization’s

overall goals.

AdvertisingAdvertising

Public RelationsPublic Relations

Personal SellingPersonal Selling

Sales PromotionSales Promotion

22

Page 8: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Promotional MixPromotional Mix

AdvertisingAdvertising

Elementsof the

PromotionalMix

Elementsof the

PromotionalMix

Public RelationsPublic Relations

Personal SellingPersonal Selling

Sales PromotionSales Promotion

22

Page 9: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

AdvertisingAdvertising

Impersonal, one-way

___________________

___________________

or organization that is

paid for by a marketer.

22

Page 10: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Advertising MediaAdvertising Media

Traditional Advertising Media

Traditional Advertising Media

ElectronicAdvertising Media

ElectronicAdvertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Computer modems Fax machines

22

Page 11: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

AdvertisingAdvertising

AdvantagesAdvantages Ability to reach large

number of people

Cost per contact is low

Can be micro-targeted

DisadvantagesDisadvantages Total cost is high

22

Page 12: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Public RelationsPublic Relations

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.

22

Page 13: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Public RelationsPublic Relations

Evaluates public attitudes

Evaluates public attitudes

Identifies areas of public interestIdentifies areas of public interest

Executes programs to “win” public

Executes programs to “win” public

Functions ofFunctions ofPublic RelationsPublic Relations

Functions ofFunctions ofPublic RelationsPublic Relations

22

Page 14: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

PublicityPublicity22

Public information about a

company, good, or service

appearing in the mass

media as a news item.

Page 15: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Sales PromotionSales Promotion22

Marketing activities--other

than personal selling,

advertising, and public

relations--that stimulate

consumer buying and

dealer effectiveness.

Page 16: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Sales PromotionSales Promotion

EndConsumers

EndConsumers

Trade CustomersTrade Customers

CompanyEmployees Company

Employees

3 Sales Promotion3 Sales PromotionTargetsTargets

3 Sales Promotion3 Sales PromotionTargetsTargets

22

Page 17: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Sales Promotion Sales Promotion

Free samplesFree samples

ContestsContests

PremiumsPremiums

Trade ShowsTrade Shows

Vacation GiveawaysVacation Giveaways

CouponsCoupons

Popular ToolsPopular Toolsforfor

Consumer SalesConsumer SalesPromotionPromotion

Popular ToolsPopular Toolsforfor

Consumer SalesConsumer SalesPromotionPromotion

22

Page 18: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Personal SellingPersonal Selling22

Planned presentation to

one or more prospective

buyers for the purpose

of making a sale.

Page 19: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

CommunicationCommunication33

The process by which we

exchange or share

meanings through a

common set of symbols.

Page 20: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Marketing CommunicationMarketing Communication

Categories of CommunicationCategories of

Communication

InterpersonalInterpersonalCommunicationCommunicationInterpersonalInterpersonal

CommunicationCommunicationMassMass

CommunicationCommunicationMassMass

CommunicationCommunication

33

Page 21: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

The Communication ProcessThe Communication Process

As SendersAs Senders As ReceiversAs Receivers

Inform

Persuade

Remind

Develop messages

Adapt messages

Spot new communication opportunities

33

Page 22: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

The Sender and EncodingThe Sender and Encoding33

SenderSender The originator of the message in the communication process.

The originator of the message in the communication process.

EncodingEncodingThe conversion of a sender’s ideas

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

The conversion of a sender’s ideas and thoughts into a message, usually

in the form of words or signs.

Page 23: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

The Communication ProcessThe Communication Process

NoiseNoise

SenderSender EncodingMessage

EncodingMessage

MessageChannel

MessageChannel

MessageChannel

MessageChannel

DecodingMessage

DecodingMessage ReceiverReceiver

33

Page 24: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Characteristics of AdvertisingCharacteristics of Advertising

Communication Mode Communication Mode

Communication ControlCommunication Control

Feedback AmountFeedback Amount

Feedback SpeedFeedback Speed

Message Flow DirectionMessage Flow Direction

Message Content ControlMessage Content Control

Sponsor IdentificationSponsor Identification

Reaching Large Audience Reaching Large Audience

Message FlexibilityMessage Flexibility

AdvertisingAdvertisingAdvertisingAdvertising

Indirect and non-personal Indirect and non-personal

LowLow

LittleLittle

DelayedDelayed

One-wayOne-way

YesYes

YesYes

Fast Fast

Same message to all audiencesSame message to all audiences

33

Page 25: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Characteristics of Public RelationsCharacteristics of Public Relations33

Communication Mode Communication Mode

Communication ControlCommunication Control

Feedback AmountFeedback Amount

Feedback SpeedFeedback Speed

Message Flow DirectionMessage Flow Direction

Message Content ControlMessage Content Control

Sponsor IdentificationSponsor Identification

Reaching Large Audience Reaching Large Audience

Message FlexibilityMessage Flexibility

Public RelationsPublic RelationsPublic RelationsPublic Relations

Usually indirect, non-personal Usually indirect, non-personal

Moderate to lowModerate to low

LittleLittle

DelayedDelayed

One-wayOne-way

NoNo

NoNo

Usually fast Usually fast

Usually no direct controlUsually no direct control

Page 26: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Characteristics of Characteristics of Sales PromotionSales Promotion

33

Communication Mode Communication Mode

Communication ControlCommunication Control

Feedback AmountFeedback Amount

Feedback SpeedFeedback Speed

Message Flow DirectionMessage Flow Direction

Message Content ControlMessage Content Control

Sponsor IdentificationSponsor Identification

Reaching Large Audience Reaching Large Audience

Message FlexibilityMessage Flexibility

Sales PromotionSales PromotionSales PromotionSales Promotion

Usually Indirect and non-personal Usually Indirect and non-personal

Moderate to lowModerate to low

Little to moderateLittle to moderate

VariesVaries

Mostly one-wayMostly one-way

YesYes

YesYes

Fast Fast

Same message to varied targetSame message to varied target

Page 27: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Characteristics of Personal SellingCharacteristics of Personal Selling33

Communication Mode Communication Mode

Communication ControlCommunication Control

Feedback AmountFeedback Amount

Feedback SpeedFeedback Speed

Message Flow DirectionMessage Flow Direction

Message Content ControlMessage Content Control

Sponsor IdentificationSponsor Identification

Reaching Large Audience Reaching Large Audience

Message FlexibilityMessage Flexibility

Personal SellingPersonal SellingPersonal SellingPersonal Selling

Direct and face-to-face Direct and face-to-face

HighHigh

MuchMuch

ImmediateImmediate

Two-wayTwo-way

YesYes

YesYes

Slow Slow

Tailored to prospectTailored to prospect

Page 28: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Goals and Tasks of PromotionGoals and Tasks of Promotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

44

Page 29: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Goals and Tasks of PromotionGoals and Tasks of Promotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity

44

Page 30: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Goals and Tasks of PromotionGoals and Tasks of Promotion

Informative Objective

• Increase awareness

• Explain how product works

• Suggest new uses

• Build company image

44

Page 31: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Goals and Tasks of PromotionGoals and Tasks of Promotion

Persuasion Objective

• Encourage brand switching

• Change customers’ perception of product attributes

• Influence buying decision

• Persuade customers to call

44

Page 32: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Goals and Tasks of PromotionGoals and Tasks of Promotion

Reminder Objective

• Remind customers that product may be needed

• Remind customers where to buy product

• Maintain customer awareness

44

Page 33: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

The AIDA ConceptThe AIDA Concept

Model that outlines the process

for achieving promotional goals

in terms of stages of consumer

involvement with the message.

55

Page 34: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

The AIDA ConceptThe AIDA Concept

AAttentionttention

IInterestnterest

DDesireesire

AActionction

55

Page 35: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

AIDA and the Promotional MixAIDA and the Promotional Mix

AwarenessAwarenessAwarenessAwareness InterestInterestInterestInterest DesireDesireDesireDesire ActionActionActionAction

AdvertisingAdvertising Veryeffective

Veryeffective

Somewhateffective

Noteffective

Noteffective

PublicPublicRelationsRelations

PublicPublicRelationsRelations

Veryeffective

Veryeffective

Veryeffective

Veryeffective

Veryeffective

Veryeffective

Noteffective

Noteffective

SalesSalesPromotionPromotion

Somewhateffective

Somewhateffective

Veryeffective

Veryeffective

Veryeffective

PersonalPersonalSellingSelling

Somewhateffective

Veryeffective

Veryeffective

Somewhateffective

Somewhateffective

55

Page 36: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Factors Affecting the Factors Affecting the Promotional MixPromotional Mix

Nature of ProductNature of Product

Stage in PLCStage in PLC

Target Market FactorsTarget Market Factors

Type of Buying DecisionType of Buying Decision

Promotion FundsPromotion Funds

Push or Pull StrategyPush or Pull Strategy

Factors Factors AffectingAffectingChoice of Choice of

Promotional MixPromotional Mix

Factors Factors AffectingAffectingChoice of Choice of

Promotional MixPromotional Mix

66

Page 37: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Nature of the ProductNature of the Product66

Product characteristics – Business product vs. consumer product

Costs and risks

Social risk

Factors that influence promotional mixFactors that influence promotional mix

Page 38: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Stage in the Product Life CycleStage in the Product Life Cycle66

TimeTime

IntroductionIntroduction GrowthGrowth

MaturityMaturity

DeclineDecline

Sal

es (

$)S

ales

($)

Page 39: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

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

Sal

es (

$)S

ales

($)

TimeTime

66

Page 40: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Target Market CharacteristicsTarget Market Characteristics66

FOR:

Widely scattered market

Informed buyers

Repeat buyersAdvertising

Sales Promotion

Less Personal Selling

Page 41: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Type of Buying DecisionType of Buying Decision

Advertising

Sales PromotionType ofType of

Buying DecisionBuying Decisionaffectsaffects

Promotional Promotional Mix ChoiceMix Choice

Type ofType ofBuying DecisionBuying Decision

affectsaffectsPromotional Promotional Mix ChoiceMix Choice

ComplexComplexComplexComplex

RoutineRoutineRoutineRoutine

Personal Selling

Not RoutineNot Routineor Complexor Complex

Not RoutineNot Routineor Complexor Complex

Advertising

Public Relations

66

Page 42: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Push and Pull StrategiesPush and Pull Strategies

ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler

ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler

Wholesaler Wholesaler promotes to promotes to

retailerretailer

Wholesaler Wholesaler promotes to promotes to

retailerretailer

Retailer Retailer promotes topromotes toconsumerconsumer

Retailer Retailer promotes topromotes toconsumerconsumer

ConsumerConsumerbuys frombuys from

retailerretailer

ConsumerConsumerbuys frombuys from

retailerretailer

PUSH STRATEGYPUSH STRATEGY

Orders to manufacturer

ManufacturerManufacturerpromotes to promotes to

consumerconsumer

ManufacturerManufacturerpromotes to promotes to

consumerconsumer

Consumer Consumer demands demands productproduct

from retailerfrom retailer

Consumer Consumer demands demands productproduct

from retailerfrom retailer

Retailer Retailer demands demands productproduct

from wholesalerfrom wholesaler

Retailer Retailer demands demands productproduct

from wholesalerfrom wholesaler

Wholesaler Wholesaler demandsdemands

product fromproduct frommanufacturermanufacturer

Wholesaler Wholesaler demandsdemands

product fromproduct frommanufacturermanufacturer

Orders to manufacturer

PULL STRATEGYPULL STRATEGY

66

Page 43: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

Integrated Marketing Integrated Marketing CommunicationsCommunications

A method of carefully

coordinating all

promotional activities to

produce a consistent,

unified message that is

customer focused.

77

Page 44: Integrated Marketing Communications Chapter 14 Integrated Marketing Communications Chapter 14.

IMC Popularity GrowthIMC Popularity Growth77

Proliferation of thousands of media choices

Fragmentation of the mass market

Slash of advertising spending in favor of promotional techniques