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Integrated Marketing Communications

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Learning Objectives
1. Discuss the role of promotion in the marketing mix. 2. Discuss the elements of the promotional mix. 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 relationship to the promotional mix. 6. Describe the factors that affect the promotional mix. 7. Discuss the concept of integrated marketing communications.
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The Growth of Advertising and Promotion


Expenditure in Billions of Dollars
U.S. Advertising U.S. Sales Promotion Advertising Outside U.S. $0 $50 $100 $150 $200 $250 $300 2002 1980

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Learning Objective

Discuss the role of promotion in the marketing mix.

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Promotion

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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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Promotional Strategy

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

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The Role of Promotion


Overall Marketing Overall Marketing Objectives Objectives Marketing Mix Marketing Mix Product Product Place Place Promotion Promotion Price Price Target Market Target Market
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Promotional Mix Promotional Mix Advertising Advertising Public Relations Public Relations Personal Selling Personal Selling Sales Promotion Sales Promotion

Promotion Plan Promotion Plan


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Differential Advantage
High Product Quality High Product Quality Rapid Delivery Rapid Delivery Low Prices Low Prices Excellent Service Excellent Service Unique Features Unique Features
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Features Features that provide that provide Differential Differential Advantage Advantage

Learning Objective
Discuss the elements of the promotional mix.

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Promotional Mix
Advertising Public Relations Personal Selling Sales Promotion

Combination of promotion tools used to reach the target market and fulfill the organizations overall goals.

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Promotional Mix
Advertising Advertising

Elements Elements of the of the Promotional Promotional Mix Mix

Public Relations Public Relations

Personal Selling Personal Selling

Sales Promotion Sales Promotion


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

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Classifications of Advertising
National Advertising National Advertising Retail/Local Advertising Retail/Local Advertising Primary vs. Selective Primary vs. Selective Demand Advertising Demand Advertising

Consumers

Business-to-Business Advertising Business-to-Business Advertising Professional Advertising Professional Advertising Trade Advertising Trade Advertising
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Organizations 14

Advertising Media
Traditional Traditional Advertising Media Advertising Media Electronic Electronic Advertising Media Advertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Computer modems Fax machines

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Advertising
Advantages
Ability to reach large number of people Cost per contact is low Can be micro-targeted
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Disadvantages
Total cost is high

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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Public Relations
Functions of Functions of Public Relations Public Relations
Evaluates public Evaluates public attitudes attitudes Identifies areas Identifies areas of public interest of public interest
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Executes programs Executes programs to win public to win public

Public Relations Tools

Publicity Vehicles

Special Publications

Community Activities

Corporate Advertising Advertising

Cause-related Marketing

Public Affairs Activities

Special Event Sponsorship


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Publicity

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

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Advertising Versus Publicity


Factor Factor Control Control Credibility Credibility Reach Reach Frequency Frequency Cost Cost Flexibility Flexibility Timing Timing Advertising Advertising Great Great Lower Lower Measurable Measurable Schedulable Schedulable High/Specific High/Specific High High Specifiable Specifiable
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Publicity Publicity Little Little Higher Higher Undetermined Undetermined Uncontrollable Uncontrollable
Low/Unspecified Low/Unspecified

Low Low Tentative Tentative


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Sales Promotion

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

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Publicity Vehicles
Feature Feature Articles Articles

News News Releases Releases

Publicity Publicity Vehicles Vehicles

Interviews Interviews Interviews

Press Press Conferences Conferences

Special Special Events Events


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Sales Promotion
Sales Promotion Sales Promotion Targets Targets
End End Consumers Consumers Trade Customers Trade Customers
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Company Company Employees Employees

Sales Promotion Tools


Coupons Samples Premiums
Contests/Sweepstakes

Trade Allowances POP Displays Training Programs Trade Shows Coop Advertising

Refunds/Rebates Bonus Packs Loyalty Programs Events

Consumer-oriented
[For end-users]
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Trade-oriented
[For resellers]
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Various Uses of Sales Promotion


Get Existing Get Existing Customers to Buy Customers to Buy More More

Introduce New Introduce New Products Products

Combat Combat Competition Competition

Attract New Attract New Customers Customers

Enhance Personal Enhance Personal Selling Selling

Sales Sales Promotion Promotion

Maintain Sales In Maintain Sales In Off Season Off Season

Tie In Advertising & Tie In Advertising & Personal Selling Personal Selling

Increase Retail Increase Retail Inventories Inventories


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Personal Selling

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

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Personal Selling
Traditional Traditional Selling Selling Relationship Relationship Selling Selling

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Direct Marketing is Part of IMC


Direct Direct Mail Mail Internet Internet Sales Sales Direct Direct Response Response Advertising Advertising

Direct Direct Marketing Marketing


Shopping Shopping Channels Channels Cataloging Catalogs Cataloging Catalogs
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Telemarketing Telemarketing

Using the Internet as an IMC Tool

The The Internet Internet

Educates or Educates or Informs Informs Customers Customers

A Persuasive A Persuasive Advertising Advertising Medium Medium

A Sales Tool A Sales Tool or an Actual or an Actual Sales Vehicle Sales Vehicle

Obtains Provides Obtains Provides Communicates Communicates Customer Customer Customer Customer and Interacts and Interacts Database Service and Database Service and With Buyers With Buyers Information Support Information 6e Support Chapter 14 Version 2002 South-Western

Builds and Builds and Maintains Maintains Customer Customer Relationships Relationships 30

Characteristics of Advertising
Advertising Advertising
Communication Mode Communication Mode Communication Control Communication Control Feedback Amount Feedback Amount Feedback Speed Feedback Speed Message Flow Direction Message Flow Direction Message Content Control Message Content Control Sponsor Identification Sponsor Identification Reaching Large Audience Reaching Large Audience Message Flexibility Message Flexibility
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Indirect and non-personal Indirect and non-personal Low Low Little Little Delayed Delayed One-way One-way Yes Yes Yes Yes Fast Fast Same message to all audiences Same message to all audiences
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Characteristics of Public Relations


Public Relations Public Relations
Communication Mode Communication Mode Communication Control Communication Control Feedback Amount Feedback Amount Feedback Speed Feedback Speed Message Flow Direction Message Flow Direction Message Content Control Message Content Control Sponsor Identification Sponsor Identification Reaching Large Audience Reaching Large Audience Message Flexibility Message Flexibility Usually indirect, non-personal Usually indirect, non-personal Moderate to low Moderate to low Little Little Delayed Delayed One-way One-way No No No No Usually fast Usually fast
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Usually no direct control Usually no direct control

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Characteristics of Sales Promotion


Sales Promotion Sales Promotion
Communication Mode Communication Mode Communication Control Communication Control Feedback Amount Feedback Amount Feedback Speed Feedback Speed Message Flow Direction Message Flow Direction Message Content Control Message Content Control Sponsor Identification Sponsor Identification Reaching Large Audience Reaching Large Audience Message Flexibility Message Flexibility
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Usually Indirect and non-personal Usually Indirect and non-personal Moderate to low Moderate to low Little to moderate Little to moderate Varies Varies Mostly one-way Mostly one-way Yes Yes Yes Yes Fast Fast Same message to varied target Same message to varied target
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Characteristics of Personal Selling


Personal Selling Personal Selling
Communication Mode Communication Mode Communication Control Communication Control Feedback Amount Feedback Amount Feedback Speed Feedback Speed Message Flow Direction Message Flow Direction Message Content Control Message Content Control Sponsor Identification Sponsor Identification Reaching Large Audience Reaching Large Audience Message Flexibility Message Flexibility
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Direct and face-to-face Direct and face-to-face High High Much Much Immediate Immediate Two-way Two-way Yes Yes Yes Yes Slow Slow Tailored to prospect Tailored to prospect
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Learning Objective
Explain the goal and tasks of promotion.

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Goals and Tasks of Promotion


Informing Informing Reminding Reminding

Target Target Audience Audience

Persuading Persuading
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Goals and Tasks of Promotion


Informing Informing
PLC Stages: Stages Introduction Early Growth

Reminding Reminding
PLC Stages: Maturity

Target Target Audience Audience

PLC Stages: Growth Maturity

Persuading Persuading
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Goals and Tasks of Promotion


Informative Objective
Increase awareness Explain how product works Suggest new uses Build company image

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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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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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Learning Objective
Describe the communication process.

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The Communication Process


Noise Noise

Sender Sender

Encoding Encoding Message Message

Message Message Channel Channel

Decoding Decoding Message Message

Receiver Receiver

Message Message Channel Channel


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Communication

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The process by which we exchange or share meanings through a common set of symbols.

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Marketing Communication
Categories of Categories of Communication Communication

Interpersonal Interpersonal Communication Communication

Mass Mass Communication Communication

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The Communication Process


As Senders
Inform Persuade Remind

As Receivers
Develop messages Adapt messages Spot new communication opportunities

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The Sender and Encoding


The originator of the message in the The originator of the message in the communication process. communication process.

Sender Sender

Encoding Encoding

The conversion of a senders ideas and The conversion of a senders ideas and thoughts into a message, usually in the thoughts into a message, usually in the form of words or signs. form of words or signs.

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Learning Objective
Discuss the AIDA concept and its relationship to the promotional mix.

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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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The AIDA Concept

Action Desire Interest Attention


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AIDA and the Promotional Mix


Awareness Awareness
Advertising Public Public Relations Relations Sales Promotion Personal Selling
Very effective Very Very effective effective Somewhat effective Somewhat effective

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Action Action
Not Not effective effective Not Not effective effective Very Very effective effective Somewhat Somewhat effective effective
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Interest Interest
Very effective Very Very effective effective Somewhat effective Very effective
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Desire Desire
Somewhat effective Very Very effective effective Very effective Very effective

Learning Objective

Describe the factors that affect the promotional mix.

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Factors Affecting the Promotional Mix


Nature of Product Nature of Product Stage in PLC Stage in PLC Target Market Factors Target Market Factors

Factors Factors Affecting Affecting Choice of Choice of Promotional Mix Promotional Mix

Type of Buying Decision Type of Buying Decision Promotion Funds Promotion Funds Push or Pull Strategy Push or Pull Strategy
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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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Stage in the Product Life Cycle


Maturity
Sales ($)

Introduction

Growth

Decline

Time

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Product Life Cycle and the Promotional Mix


Sales ($)
Maturity Introduction Growth Decline

Time
Light Advertising, preintroduction Publicity Heavy use of advertising, PR for awareness; sales promotion for trial Advertising, PR, Brand loyalty Personal Selling for distribution
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Ads decrease. Sales Promotion, Personal Selling Reminder & Persuasive

AD/PR decrease Limited Sales Promotion, Personal Selling for distribution


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Target Market Characteristics


FOR: Widely scattered market Informed buyers
Advertising Sales Promotion Less Personal Selling
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Repeat buyers

Type of Buying Decision


Routine Routine
Advertising Sales Promotion Advertising Public Relations

Type of Type of Buying Decision Buying Decision affects affects Promotional Promotional Mix Choice Mix Choice

Not Routine Not Routine or Complex or Complex

Complex Complex

Personal Selling

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Learning Objective

Discuss the concept of integrated marketing communications.

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Marketing Communication
Coordinated promotional messages delivered through one or more channels such as print, radio, television, direct mail, and personal selling.

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Marketing Communication
Marketing communication is the process of informing, reminding, and persuading the consumers about a particular product or service. The different tools of marketing communication include advertising, sales promotion, and public relations. Integrated.
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MARKETING COMMUNICATIONS OBJECTIVES


Increase Market Penetration Develop Repeat Purchase Behavior Establish Customer Relationships Increase Rate of Consumption Encourage Product Trial Stimulate Impulse Buying Stimulate Demand 2002 South-Western Differentiate the Product

MARKETING COMMUNICATIONS OBJECTIVES


Establish a Product Image Influence Sales Volume Establish, Modify, or Reinforce Attitudes Develop Sales Leads Stimulate Interest Establish Understanding Build Support & Acceptance
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Integrated Marketing Communications

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

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Integrated Marketing Communication


Marketing Communication (IMC) involves optimum coordination of the aforesaid tools to disseminate a universal, clear, and effective promotional message amongst the target audience

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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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IMC Popularity & Growth


Understanding the strategic value of integrating various communication functions rather than having them operate autonomously. This helps in avoiding duplication Creates synergistic advantage
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IMC Popularity & Growth


Shift of marketing from media advertising to consumer and trade oriented sales promotion. A shift in market place power from wholesaler to retailer Rapid growth and development of database marketing
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IMCAudience Contact Points


Point of Point of Purchase Purchase Internet/ Internet/ Interactive Interactive Media Media Direct Mail Direct Mail Print Media Print Media Broadcast Broadcast Media Media Outdoor Outdoor Publicity Publicity Public Public Relations Relations Packaging Packaging Direct Direct Response Response Sales Sales Promotion Promotion Events Events

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IMC in Branding
IMC helps in developing and sustaining brand identity and equity Brand identity is a combination of many factors including the name, logo, symbols, design, package, performance of product or service as well as image or type of association that comes to the 2002 South-Western 60 mind of consumers

Marketing Revolution and Shifting Tides


From
Media Advertising Media Advertising Mass Media Mass Media Manufacturer Dominance Manufacturer Dominance General Focus General Focus Low Agency Accountability Low Agency Accountability Traditional Compensation Traditional Compensation Limited Internet Availability Limited Internet Availability Toward Multiple Forms of Communication Multiple Forms of Communication Specialized Media Specialized Media Retailer Dominance Retailer Dominance Data Based Marketing Data Based Marketing Greater Agency Accountability Greater Agency Accountability
Performance Based Compensation Performance Based Compensation

Widespread Internet Availability Widespread Internet Availability


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The IMC Planning Process


The first step in IMC planning process is to review the marketing plan and objectives.

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Integrated Marketing Communications Planning Model


Review of Marketing Plan Promotional Program Situation Analysis Analysis of the Communications Process Budget Determination Develop Integrated Marketing Communications Programs Advertising Advertising Objectives Message Strategy Sales Promotion Sales Promotion Objectives Sales Promotion Strategy PR/ Publicity PR/ Publicity Objectives PR/ Publicity Strategy Personal Selling Personal Selling Objectives Personal Selling Strategy Direct Marketing Direct Marketing Objectives Direct Marketing Strategy Internet/ Interactive Internet/ Interactive Objectives Internet/ Interactive Strategy

Integration & Implementation of Marketing Communications Strategies


Chapter 14 Version 6e Monitor,

Evaluate & 2002 South-Western Control Promotional Program

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The Marketing Plan

1. A detailed situation analysis 1. A detailed situation analysis 2. Specific marketing objectives 2. Specific marketing objectives 3. A marketing strategy and program 3. A marketing strategy and program 4. A program for implementing the strategy 4. A program for implementing the strategy 5. A process for monitoring and evaluating performance 5. A process for monitoring and evaluating performance
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