16
Integrated Marketing
Communications
Professor Close
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
1
Learning Outcomes
LO 1 Discuss the role of promotion in the
marketing mix
LO 2 Discuss the elements of the promotional mix
LO 3 Describe the communication process
LO 4 Explain the goal and tasks of promotion
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
2
Learning Outcomes
LO 5 Discuss the AIDA concept and its
relationship to the promotional mix
LO 6 Describe the factors that affect the
promotional mix
LO 7 Discuss the concept of integrated marketing
communications
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
3
The Role of Promotion in
the Marketing Mix
Discuss the role of
promotion in the
marketing mix
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
4
The Role of Promotion
Promotional
Strategy
A plan for the optimal use of
the elements of promotion:
 Advertising
 Public Relations
 Personal Selling
 Sales Promotion
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
5
Exhibit 16.1
Role of Promotion in
the Marketing Mix
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
6
Competitive Advantage
High product quality
Rapid delivery
Low prices
Excellent service
Unique features
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
7
The Promotional Mix
Discuss the
elements of the
promotional mix
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
8
The Promotional Mix
Combination of promotion tools
used to reach the target market
and fulfill the organization’s
overall goals. Includes:




Chapter 16
Advertising
Public Relations
Personal Selling
Sales Promotion
Copyright ©2012 by Cengage Learning Inc. All rights reserved
9
The Promotional Mix
Most commonly distributed
by traditional media, though
increasingly through nontraditional media, such as
Web sites, e-mail, blogs,
and interactive video kiosks
in malls and supermarkets.
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
10
Advertising Media
Traditional
Advertising Media








Chapter 16
Television
Radio
Newspapers
Magazines
Books
Direct mail
Billboards
Transit cards
New
Advertising
Media





Internet
Banner ads
Viral marketing
E- mail
Interactive video
Copyright ©2012 by Cengage Learning Inc. All rights reserved
11
Advertising
Advantages
 Reach large number
of people
 Low cost per
contact
Disadvantages
 Total cost is high
 National reach is
expensive for small
companies
 Can be microtargeted
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
12
Public Relations
Helps an organization
communicate with
customers, suppliers,
stockholders, government
officials, employees, and
the community.
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
13
The Function of Public
Relations
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
14
Sales Promotion
Marketing activities—
other than personal
selling, advertising, and
public relations—that
stimulate consumer
buying and dealer
effectiveness.
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
15
Sales Promotion
Free samples
Contests
End
Consumers
Premiums
Trade Shows
Vacation Giveaways
Trade
Customers
Company
Employees
Coupons
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
16
Personal Selling
Planned presentation to
one or more prospective
buyers for the purpose of
making a sale.
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
17
Personal Selling
Traditional
Selling
Relationship
Selling
Chapter 16
Attempts to persuade the
buyer into a specific point
of view. Win-lose outcome.
Long-term relationships,
create a win-win outcome
Copyright ©2012 by Cengage Learning Inc. All rights reserved
18
Marketing Communication
Describe the
communication
process
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
19
Communication
Communication is…
the process by which meanings are
exchanged or shared through a
common set of symbols.
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
20
Marketing Communication
Categories of
Communication
Interpersonal
Communication
Chapter 16
Mass
Communication
Copyright ©2012 by Cengage Learning Inc. All rights reserved
21
Marketing Communication
As Senders
As Receivers
 Inform
 Develop messages
 Persuade
 Adapt messages
 Remind
 Spot new
communication
opportunities
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
22
Exhibit 16.2
Communication Process
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
23
Exhibit 16.3
Characteristics of the Elements
in the Promotional Mix
LO3
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
24
Characteristics of the Elements
in the Promotional Mix
Advertising
Communication Mode
Communication Control
Feedback Amount
Indirect and impersonal
Low
Little
Feedback Speed
Delayed
Message Flow Direction
One-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
Fast
Same message to all audiences
LO3
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
25
Characteristics of the Elements
in the Promotional Mix
Public Relations
Communication Mode
Communication Control
Feedback Amount
Little
Feedback Speed
Delayed
Message Flow Direction
One-way
Message Content Control
No
Sponsor Identification
No
Reaching Large Audience
Message Flexibility
Chapter 16
Usually indirect, impersonal
Moderate to low
Usually fast
Usually no direct control
Copyright ©2012 by Cengage Learning Inc. All rights reserved
26
Characteristics of the Elements
in the Promotional Mix
Sales Promotion
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Little to moderate
Varies
Mostly one-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
Chapter 16
Usually indirect and impersonal
Moderate to low
Fast
Same message to varied target
Copyright ©2012 by Cengage Learning Inc. All rights reserved
27
Characteristics of the Elements
in the Promotional Mix
Personal Selling
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Much
Immediate
Two-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
Chapter 16
Direct and face-to-face
High
Slow
Tailored to prospect
Copyright ©2012 by Cengage Learning Inc. All rights reserved
28
Web 2.0
Web 2.0 tools include:
• Blogs (online journals)
• Podcasting (online radio)
• Vodcasts (online videos)
• Social Networks (Facebook, MySpace)
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
29
Blogging
Chapter 16
Corporate
Blogs
Sponsored by a company or
one of its brands and
maintained by one or more of
the company’s employees.
ConsumerGenerated
Blogs
Independent and not
associated with the
marketing efforts of any
particular company or brand.
Copyright ©2012 by Cengage Learning Inc. All rights reserved
30
The Goals and Tasks
of Promotion
Explain the goals and
tasks of promotion
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
31
Goals and Tasks of
Promotion
Informing
Reminding
Target
Audience
Persuading
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
32
Goals and Tasks of
Promotion
Informing
Reminding
PLC Stages:
PLC Stages:
Introduction
Early Growth
Maturity
Target
Audience
PLC Stages:
Growth
Maturity
Persuading
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
33
Beyond the Book
Goals and Tasks of
Promotion
Chapter 16
Informative Promotion

Increase awareness

Explain how product works

Suggest new uses

Build company image
Copyright ©2012 by Cengage Learning Inc. All rights reserved
34
Beyond the Book
Goals and Tasks of
Promotion
Chapter 16
Persuasive Promotion

Encourage brand switching

Change customers’ perceptions of
product attributes

Influence immediate buying decision

Persuade customers to call
Copyright ©2012 by Cengage Learning Inc. All rights reserved
35
Beyond the Book
Goals and Tasks of
Promotion
Chapter 16
Reminder Promotion
 Remind customers that product
may be needed
 Remind customers where
to buy product
 Maintain customer awareness
Copyright ©2012 by Cengage Learning Inc. All rights reserved
36
Promotional Goals
and the AIDA Concept
Discuss the AIDA
concept and its
relationship to the
promotional mix
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
37
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
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
38
Exhibit 16.4
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
39
The AIDA Concept
Action
Desire
Interest
Attention
Chapter 16
Conative (doing)
Affective (feeling)
Cognitive (thinking)
Copyright ©2012 by Cengage Learning Inc. All rights reserved
40
Factors Affecting the
Promotional Mix
Describe the factors
that affect the
promotional mix
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
41
Factors Affecting the
Choice of Promotional Mix
Nature of the product
Stage in PLC
Target market characteristics
Type of buying decision
Promotion funds
Push or pull strategy
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
42
Exhibit 16.5
Product Life Cycle and
the Promotional Mix
Heavy use of
Advertising;
PR for
Light
Advertising; awareness;
sales
preintroduction promotion
for trial
publicity
Chapter 16
Advertising,
PR, brand
loyalty;
personal
selling for
distribution
Ads decrease;
sales promotion;
personal selling;
reminder &
persuasive
Copyright ©2012 by Cengage Learning Inc. All rights reserved
AD/PR decrease;
limited sales
promotion;
personal selling
for distribution
43
Target Market
Characteristics
For…
Advertising
 Widely scattered
market
Sales Promotion
 Informed buyers
Less Personal Selling
Chapter 16
 Brand-loyal repeat
purchasers
Copyright ©2012 by Cengage Learning Inc. All rights reserved
44
Type of Buying Decision
Advertising
Routine
Sales Promotion
Neither Routine
nor Complex
Advertising
Public Relations
Personal Selling
Complex
Print Advertising
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
45
Available Funds
 Trade-offs with funds available
 Number of people in target market
 Quality of communication needed
 Relative costs of promotional
elements
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
46
Exhibit 16.6
Push Strategy versus
Pull Strategy
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
47
Integrated Marketing
Communications
Discuss the concept
of integrated
marketing
communications
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
48
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.
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
49
IMC Popularity Growth
Proliferation of thousands of media
choices
Fragmentation of the mass market
Slash of advertising spending in favor of
promotional techniques that generate
immediate response
Chapter 16
Copyright ©2012 by Cengage Learning Inc. All rights reserved
50
Beyond the Book
Chapter 16 Videos
Chapter 16
Vans – Integrated Marketing
Communication
This video examines the carefully planned strategy
that Vans developed to create loyalty in a fickle
niche market. Describe Vans’ pyramid strategy.
How does it protect the brand?
http://www.cengage.com/marketing/boo
k_content/1439039429_lamb/company_c
lips/ch16.html
Copyright ©2012 by Cengage Learning Inc. All rights reserved
51