Integrated Marketing

Communications

14
chapter

Prepared by
Deborah Baker
Texas Christian University

Chapter 14 Version 6e ©2002 South-Western 1

 Learning Objectives
1. Discuss the role of promotion in the
marketing mix.

14 2. Discuss the elements of the promotional

mix.
chapter

3. Describe the communication process.

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 Learning Objectives (continued)
4. Explain the goal and tasks of promotion.

5. Discuss the AIDA concept and its

14 relationship to the promotional mix.

6. Describe the factors that affect the

chapter

promotional mix.

7. Discuss the concept of integrated

marketing communications.
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 1
Learning Objective

Discuss the role of promotion

in the marketing mix.

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 1
Promotion
Communication by
marketers that informs,
persuades, and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response.

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 1
Promotional Strategy
A plan for the optimal use
of the elements of
promotion:
Advertising
Public Relations
Personal Selling
Sales Promotion

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 1
The Role of Promotion
Overall
Marketing Promotional Mix
Objectives
•Advertising
•Public Relations
Marketing Mix •Personal Selling
• Product •Sales Promotion
• Distribution
• Promotion
• Price

Target Market Promotion Plan

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 1
Differential Advantage
High Product Quality

Rapid Delivery
Features
that provide
Differential Low Prices
Advantage

Excellent Service

Unique Features
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 2
Learning Objective

Discuss the elements

of the promotional mix.

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 2
Promotional Mix

Combination of promotion
Advertising
tools used to reach the
Public Relations
target market and fulfill
Personal Selling
the organization’s
Sales Promotion
overall goals.

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 2
Promotional Mix
Advertising

Elements Public Relations

of the
Promotional
Mix Personal Selling

Sales Promotion

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 2
Advertising

Impersonal, one-way
mass communication
about a product or
organization that is
paid for by a marketer.

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 2
Advertising Media
Traditional Electronic
Advertising Media Advertising Media

 Television  Internet
 Radio  Computer modems
 Newspapers  Fax machines
 Magazines
 Books
 Direct mail
 Billboards
 Transit cards
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 2
Advertising

Advantages Disadvantages

 Ability to reach large  Total cost is high

number of people

 Cost per contact is low

 Can be micro-targeted

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 2
Public Relations
The marketing function that
evaluates 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.

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 2
Public Relations

Functions of
Public Relations

Executes
Evaluates public
programs to
attitudes
“win” public
Identifies areas
of public interest

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 2
Publicity

Public information about a

company, good, or service
appearing in the mass media
as a news item.

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 2
Sales Promotion

Marketing activities--other
than personal selling,
advertising, and public
relations--that stimulate
consumer buying and
dealer effectiveness.

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 2
Sales Promotion

Sales Promotion
Targets

End Company
Consumers Employees

Trade Customers

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 2
Sales Promotion
Free samples

Contests

Premiums

Trade Shows
Popular Tools
for Vacation Giveaways
Consumer Sales
Promotion Coupons
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 2
Personal Selling

Planned presentation to
one or more prospective
buyers for the purpose
of making a sale.

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 2
Personal Selling

Traditional Relationship
Selling Selling

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 3
Learning Objective

Describe the
communication process.

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 3
Communication

The process by which we

exchange or share
meanings through a
common set of symbols.

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 3
Marketing Communication

Categories of
Communication

Interpersonal Mass
Communication Communication

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 3
The Communication Process
As Senders As Receivers

Inform Develop messages

Persuade Adapt messages

Remind Spot new

communication
opportunities

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 3
The Sender and Encoding

The originator of the message in the

Sender
communication process.

The conversion of a sender’s ideas

Encoding and thoughts into a message, usually
in the form of words or signs.

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 3
The Communication Process
Noise

Encoding Message Decoding

Sender Receiver
Message Channel Message

Message
Channel
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 3
Characteristics of Advertising
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
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 3
Characteristics of Public Relations
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
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Characteristics of 3
Sales Promotion
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 Same message to varied target
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 3
Characteristics of Personal Selling
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
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 4
Learning Objective

Explain the goal and tasks of promotion.

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 4
Goals and Tasks of Promotion
Informing Reminding

Target
Audience

Persuading
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 4
Goals and Tasks of Promotion
Informing Reminding

PLC Stages: PLC Stages:

Introduction Maturity
Early Growth Target
Audience

PLC Stages:
Growth
Maturity Persuading
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 4
Goals and Tasks of Promotion
Informative Objective
• Increase awareness

• Explain how product works

• Suggest new uses

• Build company image

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 4
Goals and Tasks of Promotion
Persuasion Objective
• Encourage brand switching

• Change customers’ perception of

product attributes

• Influence buying decision

• Persuade customers to call

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 4
Goals and Tasks of Promotion
Reminder Objective
• Remind customers that product
may be needed

• Remind customers where to buy product

• Maintain customer awareness

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 5
Learning Objective

Discuss the AIDA concept

and its relationship to
the promotional mix.

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 5
The AIDA Concept

Model that outlines the

process for achieving
promotional goals in terms
of stages of consumer
involvement with the
message.

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 5
The AIDA Concept
Action
Desire

Interest

Attention
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 5
AIDA and the Promotional Mix
Awareness Interest Desire Action

Very Very Somewhat Not

Advertising effective effective effective effective

Public Very Very Very Not

Relations effective effective effective effective

Sales Somewhat Somewhat Very Very

Promotion effective effective effective effective

Personal Somewhat Very Very Somewhat

Selling effective effective effective effective

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 6
Learning Objective

Describe the factors that

affect the promotional mix.

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 Factors Affecting the 6
Promotional Mix
Nature of Product

Stage in PLC

Target Market Factors

Factors Type of Buying Decision

Affecting
Choice of Promotion Funds
Promotional Mix
Push or Pull Strategy
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 6
Nature of the Product

Factors that influence promotional mix

 Product characteristics
– Business product vs. consumer product

 Costs and risks

 Social risk

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 6
Stage in the Product Life Cycle

Maturity
Sales ($)

Introduction Growth Decline

Time

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 Product Life Cycle and the 6
Promotional Mix
Maturity
Sales ($)

Decline
Introduction Growth

Time
Light Heavy use of Advertising, Ads AD/PR
Advertising, advertising, PR, Brand decrease. decrease
pre- PR for loyalty Sales Limited
introduction awareness; Personal Promotion, Sales
Publicity sales Selling for Personal Promotion,
promotion distribution Selling Personal
for trial Reminder & Selling for
Persuasive distribution
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 6
Target Market Characteristics

FOR:
 Widely scattered
market
 Informed buyers
 Repeat buyers
Advertising

Sales Promotion

Less Personal Selling

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 6
Type of Buying Decision
Advertising
Routine
Sales Promotion
Type of
Buying Decision Advertising
affects Not Routine
Promotional or Complex Public Relations
Mix Choice

Complex Personal Selling

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 6
Available Funds

 Trade-offs with funds available

 Number of people in target market

 Quality of communication needed

 Relative costs of promotional elements

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 6
Push and Pull Strategies
PUSH STRATEGY

Manufacturer Wholesaler Retailer Consumer

promotes to promotes to promotes to buys from
wholesaler retailer consumer retailer

Orders to manufacturer
PULL STRATEGY
Consumer Retailer Wholesaler
Manufacturer
demands demands demands
promotes to
product product product from
consumer
from retailer from wholesaler manufacturer

Orders to manufacturer
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 7
Learning Objective

Discuss the concept of

integrated marketing communications.

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Integrated Marketing 7
Communications

A method of carefully
coordinating all
promotional activities to
produce a consistent,
unified message that is
customer focused.

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 7
IMC Popularity Growth

 Proliferation of thousands of media

choices

 Fragmentation of the mass market

 Slash of advertising spending in favor

of promotional techniques

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