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Chapter 8 Integrated Marketing Communication
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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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Promotion Mix
Combination and types of nonpersonal and personal communication an organization puts forth during a specified period
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Promotion Mix
Combination and types of nonpersonal and personal communication an organization puts forth during a specified period
Factors to be considered when devising a promotion mix
Role of promotion in the overall marketing mix
Nature of the product
Nature of the market
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Elements of Promotion Mix
Paid form of nonpersonal communications about an organization, its product, or its activities
Transmitted through a mass medium to a target audience
Advertising
Activity or material that offers customers, sales personnel, or resellers a direct inducement for purchasing a product
Sales promotion
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Elements of Promotion Mix
Efforts are directed at influencing the attitudes, feelings, and opinions of customers, noncustomers, stockholders, suppliers, employees, and political bodies about the organization
Public relations
Direct communication with customers through direct mail
Direct marketing
Face-to-face communication with potential buyers to inform them about and persuade them to purchase an organization’s product
Personal selling
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Integrated Marketing Communications
Coordinates and integrates all elements of the promotion mix so that the organization presents a consistent message
Seeks to manage all sources of brand or company contacts with existing and potential customers
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Figure 8.1 - How Various Promotion Tools Might Contribute to the Purchase of a Hypothetical Product
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Objectives of Advertising
Viewpoints on the contribution of advertising
Generalist viewpoint - Concerned with sales, profits, return on investment, and so forth
Specialist viewpoint - Concerned with measuring the effects of specific ads or campaigns
Middle viewpoint - Understands and appreciates the generalist and specialist viewpoint
Sees advertising as a competitive weapon
Sales and profits - Ultimate objective
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Advertising Decisions
Determining the size of the advertising budget
Methods used
Percent of sales
Per-unit expenditure
All you can afford
Competitive parity
Research approach
Task approach
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Advertising Decisions
Allocating advertising budget
Deciding on the most effective way of spending advertising dollars
Successful ad campaign has two related tasks
Saying the right things in the ads themselves
Using the appropriate media in the right amounts at the right time to reach the target market
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Message Strategy
Effective advertising message should:
Take into account the basic principles of communication
Be predicated upon a good theory of consumer motivation and behavior
Basic communication process involves:
Sender or source of communication
Communication or message
Receiver or audience
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Message Strategy
Encoding - Translating the product idea or marketing message into an effective ad
Goal is to generate ads that the audience can decode
Advertising media - Communication channels that transmit and carry advertising messages
Vary in efficiency, selectivity, and cost
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Media Mix
Cost per thousand (CPM): Dollar cost of reaching 1,000 prospects
Common measure of efficiency or productivity in advertising
Reach: Number of targeted audience members exposed at least once to an advertiser’s message within a predetermined time frame
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Media Mix
Average frequency: Number of times customers, on average, are exposed to an ad within a given time period
Marketer’s dilemma is to develop a media schedule that exposes:
Sufficient number of targeted customers to the firm’s product
Targeted customers enough times to the product to produce the desired effect
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Sales Promotion
Push strategies: Promotional efforts directed at distributors, retailers, and sales personnel to gain their cooperation in ordering, stocking, and supporting the sales of a product
Pull strategies: Promotional efforts directed at customers to encourage them to ask the retailer for the product
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Figure 8.3 - Push Versus Pull Strategies
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Trade Sales Promotion
Promotions aimed at distributors and retailers of products who make up the distribution channel
Objectives
Convince retailers to carry the manufacturer’s products
Reduce manufacturer’s inventories and increase the distributor’s or retailer’s inventories
Support advertising and consumer sales promotions
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Trade Sales Promotion
Encourage retailers either to give the product more favorable shelf space or to place more emphasis on selling the product
Serve as a reward for past sales efforts
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Consumer Promotions
Induce the customer to try the product
Reward brand loyalty
Encourage the consumer to trade-up or purchase larger sizes
Stimulate repeat purchases
Reaction to competitor efforts
Reinforce other advertising or personal selling efforts
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Figure 8.4 - Forms of Consumer Promotions
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Sales Promotion
Should not be used as the sole promotional tool due to its inability to:
Generate long-term buyer commitment to a brand
Change, except on a temporary basis, declining sales of a product
Convince buyers to purchase an unacceptable product
Make up for a lack of advertising or sales support for a product
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Sales Promotion
Measures to reduce sales promotions without losing market share
Everyday low-price strategies
Frequency marketing programs: Programs designed to reward customers for purchases of a product or service over a sustained period of time
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Public Relations: Common Forms
Announcement regarding changes in organization or the product line
Also called press release
News release
Meeting held for representatives of the media
Announces major news events so that the organization can announce major news events
News conference
Providing support for and associating organization’s name with events, programs, or people
Sponsorship
Many nonprofit organizations rely on the media to donate time for advertising for contributions and donors
Public service announcements
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Direct Marketing
Catalysts for growth
Technology
Mobile marketing: Marketing by way of handheld devices
Consumer’s increased use of Internet for purchasing many types of products
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Direct Marketing: Benefits
Consumers
Saves time
Saves money
Gives better service
Increases privacy
Marketers
Contributes to the sales revenues
Is effective in generating sales lead
Increases store traffic
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