1-1
Chapter
16
An Overview of Marketing Communications
1-2
McGraw-Hill/Irwin
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
After studying this chapter
you should be able to:
1-3

Discuss the objectives of marketing
communications.

Understand the marketing communications
mix and its role.

Explain the key elements of the marketing
communications process.
After studying this chapter
you should be able to:
1-4

Discuss the seven steps in the marketing
communications planning process.

Demonstrate awareness of some of the key
ethical and legal issues related to marketing
communications.
The Role of Marketing
Communications
Reminding
Informing
Persuading
1-5
The Marketing Communications Mix
1-6
Integrated Marketing Communications

Integrated Marketing
Communications (IMC):

1-7
The strategic integration of
multiple means of
communicating with target
markets to form a
comprehensive, consistent
message.
The Marketing Communications Process
1-8
Marketing Communications Planning
Marketing
Plan
Review
Monitoring,
Evaluating,
Controlling
Situation
Analysis
Integration
&
Implementation
Communications
Process
Analysis
1-9
Budget
Development
Program
Development
Marketing Communications Environments
The
Competitive
Environment
The
Social
Environment
1-10
The
Economic
Environment
Marketing
Mix
Considerations
Communications Process Analysis

Set Marketing Communications
Objectives

1-11
Apply the Basic Communication Model.
Budget Development

Influences on Budgeting:






1-12
Size of the company
Its financial resources
The type of business
The market dispersion
The industry growth rate
The firm’s position in the
marketplace
Budgeting Methods




1-13
Percentage of Sales
Competitive Parity
All-You-Can-Afford
Objective-Task
Marketing Communications
Program Development

Explicit Communications:


Implicit Communications:

1-14
Convey a distinct, clearly stated message
through personal selling, advertising, public
relations, sales promotion, direct marketing,
or some combination of these methods.
What the message connotes about the
product itself, its price, or the places it is sold.
Push, Pull, and Combination
Strategies

Push Strategy:


Pull Strategy:

1-15
Involves convincing intermediary channel
members to “push” the product through the
cannel to the ultimate consumer.
Attempts to get consumers to “pull” the
product from the manufacturing company
through the marketing channel.
Push, Pull, and Combination
Strategies

Combination Strategy:

1-16
Aiming marketing communications
at both resellers and ultimate
consumers.
Integration and Implementation

Implementation:

Setting the marketing communications
plan into action.
The key aspect of implementation
is coordination !!!
1-17
Monitoring, Evaluating, and
Controlling

1-18
Examples:
 Monitor sales promotion by the number of
coupons redeemed.

Measure the effectiveness of a new personal
selling strategy by looking at the number of new
accounts opened.

A firm might run tests to see it consumers
noticed the ad.

Review sales results and attribute fluctuations in
sales volume to MC.
Ethical and Legal Considerations
1-19
M C Element
Legal / Ethical Concerns
Advertising
Deceptive advertising
Unfavorable stereotypes
Public Relations
Lack of sincerity
Using economic power unfairly
Sales Promotion
Misleading consumer promotions
Paying slotting allowances for shelf space
Personal Selling
High-pressure selling
Misrepresenting product benefits
Direct Marketing
Telemarketing privacy invasion
Misuse of consumer database information
Legal -- but Ethical?

1-20
Some marketing communications may be
technically legal but raise significant ethical
questions:
 Liquor industry now advertises on cable and local
television stations.

Extensive promotion of higher-cost drugs when
health care costs are spiraling out of control.

Heavy promotional allowances to pharmacies for
agreement to push proprietary instead of generic
drugs.

Promotion of legalized gambling.
Deception in Marketing
Communications

Deceptive
Advertising:

1-21
Communicatio
ns intended to
mislead
consumers by
making false
claims or
failing to
disclose
important
information.

Examples:

False pricing
offers

Misleading or
overstating
product benefits

Nonsubstantiation of
claims made in
marketing
Additional Regulatory Concerns
Comparative advertising requires that
comparative claims be supported.
Product endorsers must be qualified to
make judgments and must actually
use the product being endorsed.
Packaging and labeling practices of food
and drug marketers are heavily scrutinized
by consumers and regulatory agencies.
1-22
Effects of Globalization
1-23

Adjust the communications mix
from country to country to avoid
legal and ethical problems.

Sales promotion techniques that
involve contests and giveaways
are regulated quite differently in
various countries.
Effects of Globalization
1-24

Acceptable personal
selling behavior varies
significantly across
countries and cultures.

Special precautions must
be taken to not perpetuate
unfavorable stereotypes of
ethic and racial groups.