Chapter 8

Integrated Marketing Communications:

Advertising, Sales Promotion, Public
Relations, and Direct Marketing
Key Terms
Advertising, Sales Promotion, Public Relations, Direct Marketing,
Personal Selling, Integrated Marketing Communications,
Awareness, Comprehension, Conviction, Ordering, Percent of
Sales, Per-Unit expenditure, All You Can Afford, Competitive
Parity, The Research and Task Approaches, Encoding, Decoding,
Reach, Average Frequency, Push and Pull Strategies, Trade
Promotions, Consumer Promotions, Frequency Marketing
Programs
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 Strategic Goals Of Marketing
Communication
 Create awareness
 Build positive images
 Identify prospects
 Build channel relationships
 Retain customers

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 Promotional Mix

 Concept refers to the combination and types of

nonpersonal and personal communication the
organization puts forth during a specified period
 Nonpersonal forms
 Advertising
 Sales promotion
 Public relations
 Direct marketing
 Personal forms
 Personal selling
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 Promotional Mix

 Advertising – Paid form of nonpersonal

communications transmitted through a mass medium
to target audience
 Sales promotion – Activity or material offering a direct
inducement for purchasing a product
 Public relations – Nonpersonal form of communication
seeking to influence attitudes, feelings, and opinions
 Publicity
 Direct marketing – Direct forms of communication with
customers

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 Promotional Mix

 Personal selling – Face-to-face communication

with potential buyers to inform and persuade
 Firms should take into account three basic factors
when devising its promotion mix:
 The role of promotion in the overall marketing mix
 The nature of the product
 The nature of the market

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 Integrated Marketing Approach

 Goal is to develop marketing communications

programs that coordinate and integrate all elements of
the promotion mix to present a consistent message
 Seeks to manage all sources of brand or company
contacts with existing and potential customers
 Potential buyers go through a process of
 Awareness of the product
 Comprehension of what it can do and important features
 Conviction that it has value for them
 Ordering on the part of a sufficient number of potential
buyers
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 Integrated Marketing Approach

How Various Promotion Tools Might Contribute to the Purchase of

a Hypothetical Product

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 Some Differences between Traditional Marketing
Communication Efforts and Integrated Marketing
Communications

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 Advertising: Planning and Strategy

 Objectives
 Generalist viewpoint – Concerned with sales, profits, and
return on investment
 Middle viewpoint – Sees advertising as a competitive
weapon
 Specialist viewpoint – Concerned with the effects of
specific ads or campaigns
 In the long run and often in the short run, advertising is
justified on the basis of the revenue it produces
 Approach that aids intelligent decision making is needed

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 Developing Advertising Objectives:
Nine Questions
 Does the advertising aim at immediate sales?
 Does the advertising aim at near-term sales?
 Does the advertising aim at building a long-range
consumer franchise?
 Does the advertising aim at helping increase sales?
 Does the advertising aim at some specific step that
leads to a sale?

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 Developing Advertising Objectives:
Nine Questions
 How important are supplementary benefits of
advertising?
 Should the advertising impart information needed to
consummate sales and build customer satisfaction?
 Should advertising build confidence and goodwill for the
corporation?
 What kind of images does the company wish to build?

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 Advertising Decisions

 Key decisions to be made include

 Determining the size of the advertising budget
 Allocation of the advertising budget
 Important to remember that brand equity and consumer
preference for brands drive market share

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 The Expenditure Question

 Percent of sales – A percentage figure is taken and

applied to either past or future sales
 Per-unit expenditure – A fixed monetary amount is
spent on advertising for each unit of the product
expected to be sold
 All you can afford – Advertising budget is established
as a predetermined share of profits or financial
resources

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 The Expenditure Question

 Competitive parity – Advertising budgets are based on

those of competitors or other members of the industry
 Research approach – Advertising budget is argued for
and presented on the basis of research findings
 Task approach – Initially formulates the advertising
goals and defines the tasks to accomplish these goals
 Management determines how much it will cost to
accomplish each task and adds up the total

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 Preparing the Advertising Campaign:
The Eight-M Formula

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 The Allocation Question: Message
Strategy
 To be effective, the advertising message should meet
two general criteria
 It should take into account the basic principles of
communication
 It should be predicated upon a good theory of consumer
motivation and behavior
 The basic communication process involves three
elements
 Sender or source of the communication
 Communication or message
 Receiver or audience
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 The Allocation Question: Message
Strategy
 Encoding – Translating the product idea or marketing
message into an effective ad
 Decoding – Perceiving content of the message to be
the same as the intended content
 A relationship between advertising and consumer
behavior exists
 End goal of an advertisement and its associated
campaign is to move the buyer to a decision to
purchase the advertised brand

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 The Allocation Question: Media Mix

 Cost per thousand – Generally refers to the dollar cost

of reaching 1,000 prospects
 “Positive effects” theory – States that the more the
viewers are involved in a television program, the
stronger they will respond to commercials
 Reach – Number of different targeted audience
members exposed at least once to the advertiser’s
message within predetermined time frame
 Average frequency – Number of times, on average,
people are exposed to an ad within a given time
period
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 The Allocation Question: Media Mix

 The marketer’s dilemma is to develop a media

schedule that both
 Exposes a sufficient number of targeted customers
(reach) to the firm’s product
 Exposes them enough times (average frequency) to the
product to produce the desired effect

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Procedures for Evaluating Advertising Programs and
Some Services Using the Procedures

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 Sales Promotions

 Push marketing strategies – Involve aiming

promotional efforts at distributors, retailers, and sales
personnel to gain their cooperation in ordering,
stocking, and accelerating the sales of a product
 Pull marketing strategies – Involve aiming promotional
efforts directly at customers to encourage them to ask
the retailer for the product
 Trade sales promotions – Aimed at distributors and
retailers of products
 Consumer promotions – Fulfill several distinct
objectives for the manufacturer
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 Sales Promotions

Example of Sales Promotion Activities

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 Sales Promotions

Push versus Pull Strategies in Marketing Communications

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 Sales Promotions

Some Commonly Used Forms of Consumer Promotions

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 Sales Promotions

 Sales promotions can often

 Involve competitive retaliation
 Devalue image of promoted brand in consumer’s eyes
 Not used as sole promotional tool due to its inability to
 Always generate long-term buyer commitment to a brand
 Change, except temporarily, declining sales of a product
 Convince buyers to purchase an unacceptable product
 Make up for a lack of advertising or sales support
 Frequency marketing programs – Consumers are
rewarded or purchases of products or services over a
sustained period of time
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 Some Objectives of Sales Promotion

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 Public Relations

 News release or press release – Announcement

regarding changes in organization or the product line
 News conference – Meeting held for representatives
of the media to announce major news events
 Sponsorship – Providing support for and associating
organization’s name with events, programs, people
 Public service announcements – Many nonprofit
organizations rely on the media to donate time for
advertising for contributions and donors

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 Direct Marketing

 Online
 Direct Mail
 Catalogs
 Direct Response Advertising
 Personal Selling

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