Integrated Marketing Communications

1
Integrated Marketing Communications
12
Prepared by Deborah Baker Texas Christian
UniversityRevisedDr. R. BaurAgricultural
Technical Institute
chapter
2
Chapter 11 Review

• 1. Importance of retailing in the U.S. economy.
• 2. Classification of retailers can be
  classified.
• Major types of retail operations.
• 4. Non-store retailing techniques.
• 5. Franchising and its basic forms.
• 6. Major tasks in a retail marketing strategy.
• 7. Challenges of expanding retailing operations
  into global markets.
• 8. Future trends in retailing.

11
chapter
3
Chapter 12 Learning Objectives

• 1. Discuss the role of promotion in the marketing
  mix.
• 2. Discuss elements of the promotional mix.
• Describe the communication process.
• Explain the goal and tasks of promotion.
• Discuss the AIDA concept and its relationship to
  the promotional mix.
• Describe the factors that affect the promotional
  mix.
• Discuss the concept of integrated marketing
  communications.

12
chapter
4
Promotion
404
Learning Objective
Discuss the role of promotion in the marketing
mix.
1
Inform
Communication by marketers that informs,
persuades, and reminds potential buyers of a
product in order to influence an opinion or
elicit a response and then reassures.
Persuade
Remind
Reassure
5
Promotional Strategy
404
Learning Objective
Discuss the role of promotion in the marketing
mix.
1
A plan for the optimal use of the elements of
promotion 1. Advertising 2. Public
Relations 3. Personal Selling 4.
Sales Promotion
6
The Role of Promotion
405
Learning Objective
Discuss the role of promotion in the marketing
mix.
1

• Promotional Mix
• Advertising
• Public Relations
• Personal Selling
• Sales Promotion
• To convince target customers that the
  goods/services offer a differential advantage
  over competitors

Overall Marketing Objectives

• Marketing Mix
• Product
• Place
• Promotion Plan
• Price

Target Market
7
404
Learning Objective
Discuss the role of promotion in the marketing
mix.
1
High Product Quality
Rapid Delivery
Features That Provide Differential Advantage
Low Prices
Excellent Service
Unique Features
8
Promotional Mix
405
Learning Objective
Discuss the elements of the promotional mix.
2
1. Advertising 2. Public Relations 3. Sales
Promotion 4. Personal Selling
Combination of promotion tools used to reach the
target market and fulfill the organizations
overall goals.
9
1. Advertising
405
Learning Objective
Discuss the elements of the promotional mix.
2
Impersonal, one-way mass communication about a
product, service or organization that is paid
for by a marketer.
10
Advertising Media
406
Learning Objective
Discuss the elements of the promotional mix.
2
Traditional Advertising Media
ElectronicAdvertising Media

• Television
• Radio
• Newspapers
• Magazines
• Books
• Direct mail
• Billboards
• Transit cards

• Internet
• Computer modems
• Fax machines

11
Advertising
406
Learning Objective
Discuss the elements of the promotional mix.
2

• Advantages
• Ability to reach large number of people
• Cost per contact is low
• Can be micro-targeted

• Disadvantages
• Total cost is high

12
2. Public Relations
406
Learning Objective
Discuss the elements of the promotional mix.
2
The marketing function thatevaluates 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.
13
407
Learning Objective
Discuss the elements of the promotional mix.
2
Functions of Public Relations
Evaluates public attitudes
Executes programs to win public
Identifies areas of public interest
Curbside Programs
Ecology
Recycling
Publicity Public information about a company,
good, or service appearing in the mass media as a
news item.
14
3. Sales Promotion
407
Learning Objective
Discuss the elements of the promotional mix.
2
Marketing activities--other than personal
selling, advertising, and public relations--that
stimulate consumer buying and dealer
effectiveness.
Sales Promotion Targets
End Consumers
Company Employees
Trade Customers
15
408
Learning Objective
Discuss the elements of the promotional mix.
2
Popular Tools for Consumer Sales Promotion
A. Free samples
SOAP IN MAIL
CHIPS IN STORE
B. Contests
WHY YOU LIKE...
C. Premiums
BEANIE BABIES
D. Trade Shows
HORT CENT
E. Vacation Giveaways
F. Coupons
OUT OF STORE
IN STORE
16
4. Personal Selling
405
Learning Objective
Discuss the elements of the promotional mix.
2
Planned presentation to one or more prospective
buyers for the purpose of making a sale.
Traditional Selling
Relationship Selling
CONSUMER PRD
BUSINESS PRD
CARS QUICK SALE
COMPUTERS LONG REL
WIN - LOSE
WIN - WIN
17
Integrated Marketing Communications
428
Learning Objective
Discuss concept of integrated marketing
communications.
3
IMC
A method of carefully coordinating all
promotional activities to produce a consistent,
unified message that is customer focused.
NEW MOVIE NEW TOY AT McDONALDS
18
IMC Popularity Growth
428
Learning Objective
Discuss concept of integrated marketing
communications.
3

• Proliferation of thousands of media choices
• Fragmentation of the mass market
• Slash of advertising spending in favor of
  promotional techniques

19
Communication
414
Learning Objective
Describe the communication process.
4
The process by which we exchange or share
meanings through a common set of symbols.
Interpersonal Communication
Mass Communication
Categories of Communication
ONE TO FEW
ONE TO MANY
20
The Communication Process
414
Learning Objective
Describe the communication process.
4
Originator of the message in the communication
process.
Sender
Encoding
Conversion of a senders ideas thoughts into a
message, usually words or signs.
Message Transmission
Passage of the message through a communication
media
ReceiverDecoding
Interpretation of language and symbols sent
through the communication media
Feedback
Receiver response to the sender
21
The Communication Process
414
Learning Objective
Describe the communication process.
4
Noise
Sender Idea
EncodingMessage
Decoding Message
Receiver
Message Channel
22
Characteristics of Advertising
419
Learning Objective
Describe the communication process.
4
A. Advertising
Communication Mode
Indirect and non-personal
Communication Control
Low
Feedback Amount
Little
Feedback Speed
Delayed
Message Flow Direction
One-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Fast
Message Flexibility
Same message to all audiences
23
Characteristics of Public Relations
419
Learning Objective
Describe the communication process.
4
B. Public Relations
Communication Mode
Usually indirect, non-personal
Communication Control
Moderate to low
Feedback Amount
Little
Feedback Speed
Delayed
Message Flow Direction
One-way
Message Content Control
No
Sponsor Identification
No
Reaching Large Audience
Usually fast
Message Flexibility
Usually no direct control
24
Characteristics of Sales Promotion
419
Learning Objective
Describe the communication process.
4
C. Sales Promotion
Communication Mode
Usually Indirect and non-personal
Communication Control
Moderate to low
Feedback Amount
Little to moderate
Feedback Speed
Varies
Message Flow Direction
Mostly one-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Fast
Message Flexibility
None Same message
25
Characteristics of Personal Selling
419
Learning Objective
Describe the communication process.
4
D. Personal Selling
Communication Mode
Direct and face-to-face
Communication Control
High
Feedback Amount
Much
Feedback Speed
Immediate
Message Flow Direction
Two-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Slow
Message Flexibility
Tailored to prospect
26
Learning Objective
419
Explain the goal tasks of promotion.
5
1. Informing
3. Reminding
PLC Stages
PLC Stages
Introduction Early Growth
Target Audience
Maturity
2. Persuading
4. Reassuring
PLC Stages
PLC Stages
Growth Maturity
ALL
27
Goals and Tasks of Promotion
420
Learning Objective
Explain the goal tasks of promotion.
5

• INFORMATIVE OBJECTIVE
• Increase awareness
• Explain how product works
• Suggest new uses
• Build company image

CELL PHONES
BACK OF PACKAGE
RICE KRISPIE BARS
WORLDS LEADER IN ...
28
Goals and Tasks of Promotion
420
Learning Objective
Explain the goal tasks of promotion.
5

• PERSUASION OBJECTIVE
• Encourage brand switching
• Change customers perception of product
  attributes
• Influence buying decision
• Persuade customers to call

SWITCH PHONE CO
HUYNDI CARS
???
ON SALE UNTIL..
29
Goals and Tasks of Promotion
420
Learning Objective
Explain the goal tasks of promotion.
5

• REMINDER OBJECTIVE
• Remind customers that product/service may be
  needed
• Remind customers where to buy product
• Maintain customer awareness

MONROE MUFFLERS
DENTIST
30
Goals and Tasks of Promotion
420
Learning Objective
Explain the goal tasks of promotion.
5

• REASSURE OBJECTIVE
• Reduce Cognitive Dissonance

HOUSES
CARS
BIG BOATS
31
The AIDA Concept
Discuss the AIDA concept and its relationship to
the promotional mix.
422
Learning Objective
6
Model that outlines the process for achieving
promotional goals in terms of stages of consumer
involvement with the message.
32
THE AIDA CONCEPT
Discuss the AIDA concept and its relationship to
the promotional mix.
422
Learning Objective
6
Action
Desire
THE AIDA CONCEPT
Interest
Attention
33
AIDA and the Promotional Mix
Discuss the AIDA concept and its relationship to
the promotional mix.
423
Learning Objective
6
Advertising
Very effective
Very effective
Somewhat effective
Not effective
Public Relations
Very effective
Very effective
Very effective
Not effective
Sales Promotion
Somewhat effective
Somewhat effective
Very effective
Very effective
Personal Selling
Somewhat effective
Very effective
Very effective
Somewhat effective
34
A. Nature of the Product
424
Learning Objective
Describe the factors that affect the promotional
mix.
7

• Product characteristics
• Business product vs. consumer product
• Costs and risks
• Social risk

HIGH COST OF PERSONAL SELLING
CLOTHING, JEWELRY
35
B. Product Life Cycle Promotional Mix
425
Learning Objective
Describe the factors that affect the promotional
mix.
7
Light Advertising, pre- introduction Publicity
Heavy use of advertising, PR for awareness sales
promotion for trial
AD/PR decrease Limited Sales Promotion,
Personal Selling for distribution
Ads decrease. Sales Promotion, Personal
SellingReminder Persuasive
Advertising, PR, Brand loyalty Personal Selling
for distribution
36
C. Target Market Characteristics
426
Learning Objective
Describe the factors that affect the promotional
mix.
7

• FOR
• Widely scattered market
• Informed buyers
• Repeat buyers

Advertising
Sales Promotion
Less Personal Selling
37
D. Type of Buying Decision
426
Learning Objective
Describe the factors that affect the promotional
mix.
7
Routine
Advertising
Type of Buying Decision affects Promotional Mix
Choice
Sales Promotion
Advertising
Not Routine or Complex
Public Relations
Complex
Personal Selling
38
E. Available Funds
426
Learning Objective
Describe the factors that affect the promotional
mix.
7

• Trade-offs with funds available
• Number of people in target market
• Quality of communication needed
• Relative costs of promotional elements

39
F. Push and Pull Strategies
427
Learning Objective
Describe the factors that affect the promotional
mix.
7
PUSH STRATEGY
Manufacturer promotes to wholesaler
Wholesaler promotes to retailer
Retailer promotes to consumer
Consumer buys from retailer
Orders to manufacturer
PULL STRATEGY
Manufacturer promotes to consumer
Consumer demands product from retailer
Retailer demands product from wholesaler
Wholesaler demands product from manufacturer
Orders to manufacturer
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Chapter 12 Summary

• 1. The role of promotion in the marketing mix.
• 2. Elements of the promotional mix.
• The communication process.
• Explain the goal and tasks of promotion.
• AIDA concept and its relationship to the
  promotional mix.
• Factors that affect the promotional mix.
• Concept of integrated marketing communications.

12
chapter
41
NEXT TOPIC

• CHAPTER 13
• ADVERTISING PUBLIC RELATIONS