Chapter 17
Integrated
Marketing
Communications
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Chapter Overview
 Promotion
 Marketing
Communications
17-2
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Integrated Marketing Communications
 Coordination of all promotional activities to
produce a unified customer-focused
promotional message
Success of any IMC program depends on
identifying the members of an audience
and understanding what they want
17-3
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Where’s The Tracker?
 Tracker’s IMC
Program Included a
Game for Chevrolet
Tracker That Drew
1.3 Million Entries
Online and Another
100,000 Offline
17-4
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Example of an Ad Enhancing
GM’s Integrated Marketing
Communications Program
17-5
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Importance of Teamwork
IMC requires a total strategy including all
marketing activities, not just promotion
Successful implementation of IMC requires
that everyone involved in every aspect of
promotion function as a team
17-6
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Role of Databases in Effective
IMC Programs
With the growth of the Internet,
marketers have been given the
power to gather information
faster and to organize it easier
than ever before
By sharing this knowledge
appropriately among all relative
parties, a firm can lay the
foundation for a successful IMC
program
17-7
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
The Communications Process
 An effective promotional message accomplishes
three tasks:
It gains the receiver’s attention
It achieves understanding
It stimulates the receiver’s needs and
suggests an appropriate method of satisfying
them
 AIDA concept
17-8
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
See if this ad gets your
attention. Keep in mind not all
advertisements are designed
to sell a product or service. So
what is this ad’s objective(s)?
17-9
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Example of an Ad
Accomplishing the Three
Tasks of the
Communications Process for
Its Target Market
17-10
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Global Difficulties with the Communication
Process
In China: KFC’s slogan: “Finger lickin’ good”
came out as “Eat your fingers off”
Also in China: Coca-Cola had thousands of
signs made using the translation: “Ke-kou-ke-la”
Depending on the dialect this means . . .
“Bite the wax tadpole,” or
“Female horse stuffed with wax”
In Taiwan: Pepsi’s slogan, “Come alive with the
Pepsi generation” came out as “Pepsi will bring
your ancestors back from the dead”
17-11
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Objectives of Promotion
 Provide Information
 Disney World
Ad promoting a free
video to provide
Information for
vacation planning
17-12
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Increase Demand
Some promotions
are aimed at
increasing primary
demand, the desire
for a general
product category
More promotions
are aimed at
increasing selective
demand, the desire
for a specific brand
17-13
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Differentiate the
Product
Homogenous
demand for many
products results
when consumers
regard the firm’s
output as virtually
identical to its
competitors’
17-14
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Daewoo Lanos Television Ad
Differentiating Its Product
from Those of the
Competition
17-15
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Identify how two competitors,
Visa and MasterCard, go
about differentiating their
products in these two ads.
17-16
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Accentuate the
Product’s Value
Promotion can
explain the greater
ownership utility of
a product to
buyers
 Johnson & Johnson
First Aid To Go!
Accentuating a
Product’s Value
17-17
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Stabilize Sales
For the typical firm, sales fluctuations may result
from cyclical, seasonal, or irregular demand
Stabilizing these variations is often an objective
of promotional strategy
Class Discussion
Is the purpose of this ad primarily
to provide information, increase
demand, differentiate the
product, accentuate the product’s
value or stabilize sales?
17-18
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Elements of the Promotional Mix
 Promotional mix: blend of personal selling
and nonpersonal selling designed to achieve
promotional objectives
Personal selling
Nonpersonal selling
17-19
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Advertising
Paid, nonpersonal
communication
through various
media with the hope
of informing or
persuading
members of a
particular audience
17-20
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Product Placement
Marketer pays a motion picture or
television program owner a fee to display
his or her product prominently in the film or
show
Big budget movies, such
as The Matrix, feature
prominent placement of
various products
throughout the movie.
17-21
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Sales Promotion
Marketing activities that
stimulates consumer
purchasing
Trade promotion
17-22
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
TV AD using a popular sales
promotion technique: A free
premium with the purchase
of an item.
17-23
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Direct Marketing
Direct communications other than personal
sales contact between buyer and seller,
designed to generate sales, information
requests, or store visits
17-24
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Public relations: firm’s communications and
relationships with its various publics
 Publicity: stimulation of demand for good,
service, place, idea, person, or organization
by unpaid placement of commercially
significant news or favorable media
presentations
17-25
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Sponsorships
 Provision of funds for a sporting or cultural
event in exchange for a direct association
with the events; in e-commerce, a long-term
linkage between a Web site and a marketer
17-26
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Sponsorship
Spending has
more than tripled
during the past 10
years to almost
$10 Billion.
AT&T: A
Sponsor of the
PGA Tour
17-27
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Growth of Sponsorships
Sponsorship has grown rapidly during the past
30 years
 How Sponsorship Differs from Advertising
Degree of control
Nature of the message
Audience reaction
Measurements of effectiveness
17-28
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Direct Marketing
 Rapidly growing promotional mix element
Related overall spending total $1.7 trillion
 Direct Marketing Communication Channels
17-29
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Direct Mail
Marketers combine information from internal
and external databases, surveys, coupons, and
rebates that require responses to provide
information about consumer lifestyles, buying
habits, and wants
Catalogs
17-30
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Telemarketing:
Includes outbound
contacts by
salespeople or
inbound contacts
initiated by
customers who
want to obtain
information and
place orders
17-31
Offering Toll-Free Telephone
Numbers to Catalog Shoppers
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Direct Marketing via Broadcast Channels
Brief (30 to 90 second) direct response ads
on television or radio
Home shopping channels like:
QVC
HSN
 Infomercial: promotional presentation for a
single product running 30 minutes or longer in
a format that resembles a regular television
program
17-32
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Electronic Direct Marketing Channels
E-mail direct marketing is a natural and
easy extension of traditional direct mail
marketing
 Other Direct Marketing Channels
Print media is generally not as effective as
Web marketing or telemarketing for direct
marketers
17-33
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Peoplepc
 This Print Ad
Supplements a
Promotional
Campaign That Is
Primarily Based on
Broadcast
Advertising
17-34
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Starbucks Encore
 Starbucks’
Direct-Response
Print Ad
17-35
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Developing an Optimal Promotional Mix
 Factors that influence the effectiveness of a
promotional to mix:
Nature of the market
Nature of the product
Stage in the product life-cycle
Price
Funds available for promotion
17-36
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Promotional Strategies
 Pulling strategy
 Pushing strategy
17-37
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Colgate Total
Using a Pulling
Strategy With
Ads Like This
Combined With a
Pushing Strategy
Created Strong
Demand for This
Improved
Product
17-38
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Budgeting for Promotional Strategy
 Percentage-of-sales method
 Fixed-sum-per-unit method
 Meeting competition method
 Task-objective method
17-39
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Measuring the Effectiveness of Promotion
 Two basic measurement tools:
Direct sales results
Indirect evaluation concentrates on
quantifiable indicators of effectiveness like:
Recall
Readership
17-40
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
The Value of Marketing Communications
 Social Importance
Society provides no commonly accepted set of
standards regarding taste
The one generally accepted standard in a
market society is freedom of choice
Promotion helps achieve socially oriented
objectives like the elimination of drug abuse
17-41
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Promotional Message
Addressing a
Universal Social
Concern
17-42
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Merck Vaccine
Division
 The Social
Importance of
Marketing
Communications
17-43
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Business Importance
Promotion has become increasingly
important to both large and small firms
Promotion is an effective tool to change
attitudes, boost brand loyalty and increase
sales
Both business and nonbusiness enterprises
recognize the importance of promotion
17-44
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
The effectiveness of
advertisements like this
classic to encourage brand
loyalty and increase sales is
well-documented.
17-45
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Economic Importance
Effective promotion has allowed society to
derive benefits not otherwise available
Promotion increases the number of units
sold, which lowers production costs and
sales prices
17-46
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.