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PeterPreface15e_PPT_Ch08.pptxChapter 8
Integrated Marketing Communication
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15e
Chapter Outline
Strategic goals of marketing communication
The promotion mix
Integrated marketing communications
Advertising: planning and strategy
Advertising decisions
Sales promotion
Public relations
Direct marketing
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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
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 the Promotion Mix, 1
Advertising
Paid form of nonpersonal communications about an organization, its product, or its activities
Transmitted through a mass medium to a target audience
Sales promotion
Activity or material that offers customers, sales personnel, or resellers a direct inducement for purchasing a product
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Elements of the Promotion Mix, 2
Public relations
Nonpersonal form of communication that seeks to influence the attitudes, feelings, and opinions of customers, noncustomers, stockholders, suppliers, employees, and political bodies about the organization
Direct marketing
Uses direct forms of communication with customers, such as direct mail, online and mobile marketing, catalogs, telemarketing, and direct response advertising
Personal selling
Face-to-face communication with potential buyers to inform them about and persuade them to purchase an organization’s product
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Integrated Marketing Communications
Goal: To develop marketing communications programs that coordinate and integrate all elements of the promotion mix so that the organization presents a consistent message
Seek to manage all sources of brand or company contacts with existing and potential customers
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Figure 8.1: How Promotion Tools Might Contribute to the Purchase of a Hypothetical Product
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Advertising
An important strategic device for maintaining a competitive advantage in the marketplace
Advertising budgets represent a large and growing element in the cost of goods and services
Viewpoints about the contribution of advertising to the economic health of the firm
Generalist viewpoint: Concerned with sales, profits, and return on investment
Specialist viewpoint: Concerned with measuring the effects of specific ads or campaigns
Middle viewpoint: Sees advertising as a competitive weapon
Ultimate objective is to make sales and profits
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Key Advertising Decisions, 1
Determining the size of the advertising budget
Methods used to determine the size of the advertising budget
Percent of sales
Per-unit expenditure
All you can afford
Competitive parity
Research approach
Task approach
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Key Advertising Decisions, 2
How the advertising budget should be allocated
Management’s choice of strategies and objectives determines the media and appeals to be used
Successful ad campaign has the following related tasks:
Saying the right things in the ads
Using appropriate media in the right amounts at the right time to reach the target market
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Message Strategy, 1
An 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, 2
Encoding: Translating the product idea or marketing message into an effective ad
Goal is to generate ads that the audience can decode in the intended content of the message
Advertising media: Communication channels that transmit and carry advertising messages
Vary in efficiency, selectivity, and cost
Certain channels are preferred as messages are easily received and understood through these channels
Planning of an advertising campaign and the creation of persuasive messages require a mixture of marketing skill and creative know-how
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Media Mix
Cost per thousand or C P M: Dollar cost of reaching 1,000 prospects
Common measure of efficiency or productivity in advertising
Calculation uses measures such as circulation, audience size, and sets in use per commercial minute
Marketer’s dilemma is to develop a media schedule that exposes:
Sufficient number of targeted customers to the firm’s product, which is also known as reach
Targeted customers multiple times to the product to produce the desired effect, which is also known as average frequency
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Sales Promotion: Push and Pull Strategies
Push strategies: Promotional efforts directed at distributors, retailers, and sales personnel to gain their cooperation in ordering, stocking, and accelerating 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 in Marketing Communications
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Sales Promotion: Trade Sales Promotions
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
Encourage retailers 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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Sales Promotion: Consumer Promotions
Objectives
Induce the customer to try the product
Reward brand loyalty
Encourage the consumer to trade up or purchase larger sizes
Stimulate repeat purchases
Gain reaction to competitor efforts
Reinforce and serve as a compliment to advertising and personal selling efforts
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Figure 8.4: Commonly Used Forms of Consumer Promotions
| Form | Definition |
| Sampling | Customers are offered regular trial sizes of the product either free or at a nominal price |
| Price deals | Customers are offered discounts from the product’s regular price |
| Bonus packs | Additional amounts of the product are given to buyers when they purchase the product |
| Rebates and refunds | Customers are given reimbursements for purchasing the product either on the spot or through the mail |
| Sweepstakes and contests | Prizes are available either through chance selection or games of skill |
| Premiums | A reward or gift can come from purchasing a product |
| Coupons | Probably the most familiar and widely used of all consumer promotions, now often available at point of purchase |
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Sales Promotion, 1
Should not be used as the sole promotional tool because of 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, 2
Measures to reduce sales promotions without losing market share
Developing new pricing policies
Instituting frequency marketing programs
Frequency marketing programs: Programs designed to reward customers for purchases of products or services over a sustained period of time
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Public Relations: Common Forms
News release: Announcement regarding changes in organization or the product line
Also called press release
News conference: Meeting held for representatives of the media to announce major news events
Sponsorship: Providing support for and associating an organization’s name with events, programs, or 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
One can design and use direct marketing methods more efficiently and effectively because of the Internet and develop and compile comprehensive databases
Databases have positively affected traditional direct marketing methods and have enabled the development of targeted e-mail marketing and mobile marketing
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Direct Marketing: Benefits
Consumers:
Save time
Save money
Get better service
Enjoy increased privacy
Marketers:
Gain sales revenues
Gain sales leads
See increased store traffic
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APPENDICES
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Figure 8.1: How Promotion Tools Contribute to the Purchase of a Product, Appendix
The figure shows a chart that is divided into four columns. The columns are labeled to produce awareness, to produce comprehension, to produce conviction, and to produce ordering. Each column is divided into four segments representing personal selling, advertising, sales promotion, and public relations. The areas of the individual segments vary across each column.
The figure indicates that public relations is the most effective promotion tool to produce awareness, followed closely by advertising. Personal selling and sales promotion are less effective. To produce comprehension, sales promotion is the most effective promotion tool, and it is followed by personal selling and advertising. Public relations is the least effective. To produce conviction, personal selling and advertising are the most effective promotion tools and are followed by sales promotion and public relations. To produce ordering, personal selling is the most effective promotion tool, followed by sales promotion. Public relations and advertising are the least effective.
Jump back to Figure 8.1: How Promotion Tools Might Contribute to the Purchase of a Product
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Figure 8.3: Push versus Pull Strategies, Appendix
Two flowcharts are presented in this figure. The first flowchart is labeled push strategy. The flowchart contains a series of rectangular boxes with arrows that point to the right.
The first box is labeled producer, and it is followed by an arrow that is labeled marketing communications. The second box is labeled resellers, and it is followed by another arrow that is labeled marketing communications. The last box is labeled end users.
The second flowchart is labeled pull strategy. The flowchart contains a series of rectangular boxes.
Starting from the right, the first box is labeled end users and it is followed by an arrow that points to the left labeled request products. The second box is labeled resellers, and it is followed by an arrow that points to the left labeled request products. The last box is labeled producer. An arrow originates from the box labeled producer and it points to the first box labeled end users. The arrow is labeled marketing communications.
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