Marketing: Real People, Real Decisions

Integrated Marketing Communications and

Relationship Management
Chapter 16
Lecture Slides
Solomon, Stuart,
Carson, & Smith

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Marketing: Real People, Real Decisions

Chapter Learning Objectives

When you have completed your study of this chapter,
you should be able to:

Explain integrated marketing

communications and its implementation,
and why some markers resist it.
List, describe and contrast elements of
the communications mix.
Explain the steps involved in developing
a communications plan.
Explain the philosophy and practices of
relationship marketing.
Explain the role of databases in
facilitating marketing communications
and relationship management.

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Marketing: Real People, Real Decisions

Introduction to the Topic

The next three chapters deal with the topic of promotion, with this
chapter covering overall strategy, and the others covering specific
topics within it in more detail.

Promotion: the coordination of a

marketers communications efforts to
influence attitudes or behaviour toward
a product or service.

Marketing communication:
informing consumers and customers
about the relative value of products,
and developing trust and other
relational bonds that facilitate ongoing
exchange relationships.

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Marketing: Real People, Real Decisions

Integrated Communication Strategy

Integrated marketing communications (IMC): a strategic
business process that marketers use to plan, develop, execute, and
evaluate coordinated, measurable, persuasive brand communication
programs over time with targeted audiences.

The important thing to

understand about this concept
is the need for, and benefit of
consistency between
components of the program.

Communication Idea

The question: how much

should an organization spend
on its integrated marketing
communications program,
and how do you know when
it is working?

Personal Selling

Advertising

Direct
Marketing

Public
Relations

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Sales
Promotion

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Marketing: Real People, Real Decisions

The Communications Mix

Communications mix: the major elements of marketercontrolled communications, including advertising, sales promotions,
marketing public relations, direct marketing, and personal selling.

Some might argue that the Internet

belongs in that group as well.

Advertising: non-personal, paid

communication from an identified
sponsor, primarily using mass media.

Interactive marketing: two-way

communications, in which customized
marketing communications elicit a
measurable response from individual
customers. Also known as direct
marketing.

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Marketing: Real People, Real Decisions

The Communications Mix (continued)

Personal selling: personal presentation by a firms sales force for
the purpose of making sales and building customer relationships.

Characterized by:
Direct contact with the buyer
Two way communication
Flexible message content
Immediate feedback as to success

Public relations: communication

strategies to build good relationships
with an organizations publics.

Publicity: unpaid communication

about an organization appearing in the
mass media.

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Marketing: Real People, Real Decisions

The Communications Mix (continued)

Sales promotion: short-term incentives or programs to encourage

the trial, purchase or sale of a product or service.

Contests, coupons, and rebates
Information seminars, product
demonstrations, special events
Specialty advertising
Loyalty programs
There are no shortage of ways to
spend money on sales promotionvirtually unlimited
The questions are: what is the value,
and the impact on brand loyalty?

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Marketing: Real People, Real Decisions

Developing a Communications Plan

Communications plan: A
framework that outlines the
strategies for developing,
implementing, and controlling the
firms communication activities.

Establish communication
objectives
Identify influence on the
communications mix

Target audience: a highly

segmented group of people who

receive and respond similarly to
marketing messages.

Objectives:

create awareness
inform the market
create desire
encourage trial
build loyalty

Determine the total

communication budget
Allocate to the
communication mix budget

Figure 16.2

Evaluate the effectiveness

of the communication mix

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Marketing: Real People, Real Decisions

Direction of Promotional Effort

Companies have a number of ways to promote their products, but

their strategies will generally fall under one of the two methods
below:
Pull Strategy: moving products
through the channel by building desire
for the products among consumers, who
Manufacturers
convince retailers to stock the items.
Use primarily advertising.
Wholesalers
Retailers

Push strategy: moving products

Consumers

through the channel by convincing

channel members to offer them. Use
primarily personal selling.
Industrial products tend to follow the
push strategy, while consumer goods
tend to rely more on pull, although most
now use a combination of both.

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Marketing: Real People, Real Decisions

Determining the Communications Budget

Top-down budgeting techniques: allocation of the
promotion budget that is based on the total amount to be devoted to
marketing communications.

Percentage-of-sales method: a method for promotion

budgeting, in which the promotion budget is based on lasts sales
or on estimates for this years sales.

Bottom-up budgeting techniques: allocation of the

promotion budget that is based on identifying promotional goals
and allocating enough money to accomplish them.

Objective-task method: a promotion budgeting method in

which an organization first defines the specific communication
goals it hopes to achieve and then tries to calculate what kind of
promotional efforts it must take to meet these goals.

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Marketing: Real People, Real Decisions

Allocating the Communications Budget

The amount of budget to be allocated to each of the different types of

communication will depend on:

Organization factors: the companys past history of spending,

how well it understands the effectiveness of different forms, the
agencies used, and the personal preferences of decision makers.

Market potential: the size

of the target market(s) to be
communicated with.

Market size: the size of

markets to be communicated in
will determine the costs of using
different media. Larger markets
will be more expensive and
favour mass media.

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Marketing: Real People, Real Decisions

Communication Theory
Communications model: the elements necessary for meaning to
be transferred from a sender to a receiver.

Encoding: the
process of
translating an idea
into a form of
communication that
will convey
meaning.

Source: an
organization or
individual that sends
a message.

Message
Encoding

Decoding
Media

Source

Receiver
Noise

Feedback

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Response

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Marketing: Real People, Real Decisions

Communication Theory (continued)

Message: the communication in physical form that goes from a
sender to a receiver.

AIDA model: the

communication
goals of attention,
interest, desire, and
action.

Message
Encoding

Decoding
Media

Medium: a
communications
vehicle through
which a message is
transmitted to a
target audience.

Source

Receiver
Noise

Feedback

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Response

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Marketing: Real People, Real Decisions

Communication Theory (continued)

Receiver: the organization or individual that intercepts and
interprets the message.

Noise: anything
that interferes with
effective
communication.

Message
Encoding

Decoding
Media

Decoding: the
process by which a
receiver assigns
meaning to the
message.

Feedback:
receivers reactions
to the message.

Source

Receiver
Noise

Feedback

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Response

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Marketing: Real People, Real Decisions

Relationship Marketing
Relationship marketing: the philosophy and practice of
developing long-term relationships with key stakeholders.

Customer relationship
marketing (CRM): relationship
marketing focused on delivering
customer satisfaction and improved
customer retention.

Database marketing: the use of

direct marketing tools and techniques to
establish and develop ongoing customer
relationships.
Database marketing can be used to locate
new customers, stimulate cross-selling,
and provide measurable results.

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Marketing: Real People, Real Decisions

Famous Last Words

Promotion is how
organizations communicate
with their target markets
and all other interested
stakeholders.
There are many ways to
communicate, the difficulty
is in determining the
effectiveness of monies
spent.

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