Chapter 15:
Integrated
Marketing
Communications
Pride/Ferrell
Foundations of Marketing
Fourth Edition
Prepared by Milton Pressley
University of New Orleans
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Objectives
1. Discuss the nature of integrated marketing
communications.
2. Describe the process of communication.
3. Understand the role of promotion in the
marketing mix.
4. Explain the objectives of promotion.
5. Understand the major elements of the
promotion mix.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Objectives
6. Describe the factors that affect the choice of
promotion-mix elements.
7. Explore word-of-mouth communication and
how it affects promotion.
8. Understand the criticisms and defenses of
promotion.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Integrated Marketing
Communications (IMC)
• Coordination of promotional
efforts for maximum informational
and persuasive impact on
customers.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Communication Process
• Communication
- A sharing of meaning
• Source
- A person, group or organization that decodes a
coded message
• Receiver
- The individual, group or organization that decodes a
coded message
• Coding process (Coding process )
- Converting meaning into a series of signs or
symbols
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Decoding the Message
• Communication channel
- The medium of transmission that carries the coded message
from the source to the receiver or audience
• Decoding process
- Converting signs or symbols into concepts and ideas
• Noise
- Anything that reduces a communication’s clarity and accuracy
• Feedback
- The receiver’s response to a message
• Channel capacity
- The limit on the volume of information a communication
channel can handle effectively
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Communication Process
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Promotion
• Communication to build and maintain
relationships by informing and persuading one or
more audiences
Objectives for
Promotion
Marketers use
advertising and
other methods to
achieve a variety of
objectives.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Eight Promotional Objectives
Create
Awareness
Reduce
Sales
Fluctuations
Combat
Competitive
Promotional
Efforts
Facilitate
Reseller
Support
Stimulate
Demand
Encourage
Product
Trial
Promotion
Identify
Prospects
Retain
Loyal
Customers
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Information Flows are Important in
Integrated Marketing Communications
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Create Awareness
• Making customers
aware of the product
is crucial to initiating
the product adoption
process
Selective Demand
Gap, Inc. uses ads like this one
to build selective demand for
its Piperlime products, only
available online.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stimulate Demand
• Primary demand
- Demand for a product category rather than for a
specific brand
• Pioneer promotion
- Promotion that informs consumers about a new
product
• Selective demand
- Demand for a specific brand
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Encourage Product Trial
• Designed to move
customers through the
product adoption process
Techniques used:
- Free samples
- Coupons
- Test drives/limited free-use
- Contests
- Games
Encouraging Product Trial
Papa John’s uses this special
promotional offer to stimulate
product trial.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Promotion
• Identify prospects
- Identifying customers who are interested in the firm’s product and
most likely to buy it
• Retain loyal customers
- Maintaining long-term relationships is a major goal of most marketers
• Facilitate reseller support
- Providing support to maintain sound working relationships
• Combat competitive promotional efforts
- Using promotion to offset or lessen the effect of a competitor’s goals
• Reduce sales fluctuations
- Generating sales during slow periods
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Four Possible Elements of a
Promotion Mix
When an organization combines specific methods to manage the
integrated marketing communications for a particular product, that
combination constitutes the promotion mix for that product.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Advertising
• A paid nonpersonal
communication about an
organization and its
products transmitted to
a target audience
through mass media
Advertising Aimed at
Prevention
This ad focuses on one of the
many health risks associated
with secondhand smoke.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Personal Selling
• A paid personal communication that seeks to
inform customers and persuade them to purchase
products in an exchange situation
- Kinesic communication: Communicating through the
movement of head, eyes, arms, hands, legs or torso
- Proxemic communications: Communicating by varying
the physical distance in personal selling situations
- Tactile communications: Communicating through
touching
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Public Relations
• A broad set of communication efforts used
to create and maintain favorable
relationships between an organization and
its stakeholders
- Public relations tools include:
Annual reports
Brochures
Event sponsorship
Sponsorship of socially responsible programs
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Sales Promotion
• Activity or material that
acts as a direct
inducement, offering
added value or incentive
for the product to
reseller, salespeople or
consumers
Sales Promotion
The coupon in this
advertisement is a sales
promotion technique.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Selecting Promotion-Mix Elements
An effective promotion mix requires the right combination of components:
Resources,
Objectives,
Policies
Push and Pull
Channel Policies
Promotional
Mix
Cost and
Availability of
Promotional
Methods
Characteristics
of the Target
Market
Characteristics
of the Product
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Promotion Mix Elements
• Resources, Objectives, and Policies – Basing mix
on budget, goals, etc.
• Characteristics of the Target Market – Includes
size, geographic distribution, and demographic
characteristics
• Characteristics of the Product – Includes price and
personal nature of the product
• Cost and Availability of Methods – Some
promotion types are more expensive than others
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Push and Pull Channel Policies
• Push policy
- Promoting a product only to the next
institution down the marketing channel
• Pull policy
- Promoting a product directly to consumers
to develop strong consumer demand that
pulls products through the marketing
channel
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Word-of-Mouth Communications
and Social Media
• Word-of-mouth communication
- Personal informal exchanges of information that
customers share with one another about products,
brands and companies
• Social media
- Technology that links people to networks and allows
exchanges of personal information, professional
information and common interests
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Top 10 Shows with Product Placement
Source: The Nielsen Company, March 5, 2009, http://adage.com/madisonandvine/article?article_jd=135045,accessed April 10, 2009
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
After Reviewing This Chapter
You Should:
• Understand the nature of integrated
marketing communications.
• Know the process of communication.
• Understand the role of promotion in the
marketing mix.
• Know the objectives of promotion.
• Understand the major elements of the
promotion mix.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
After Reviewing This Chapter
You Should:
• Be able to describe the factors that affect
the choice of promotion-mix elements.
• Know about word-of-mouth
communication and how it affects
promotion.
• Understand the criticisms and defenses of
promotion.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Key Concepts
•
Integrated marketing
communications
•
Pioneer promotion
•
Selective demand
•
Branded entertainment
•
Promotion mix
•
Communication
•
Kinesic communication
•
Source
•
Proxemic communication
•
Receiver
•
Tactile communication
•
Coding process
•
Push policy
•
Communications channel
•
Pull policy
•
Decoding process
•
Word-of-mouth communication
•
Noise
•
Social media
•
Feedback
•
Buzz marketing
•
Channel capacity
•
Viral marketing
•
Promotion
•
Product placement
•
Primary demand
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.