Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 16 Integrated Marketing...

Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1

16Integrated Marketing

Communications

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LO 1 Discuss the role of promotion in the marketing mix

LO 2 Discuss the elements of the promotional mix

LO 3 Describe the communication process

LO 4 Explain the goal and tasks of promotion

Learning OutcomesLearning Outcomes


LO 5 Discuss the AIDA concept and its relationship to the promotional mix

LO 6 Describe the factors that affect the promotional mix

LO 7 Discuss the concept of integrated marketing communications

Learning OutcomesLearning Outcomes


Discuss the role of promotion in the

marketing mix

The Role of Promotion in The Role of Promotion in the Marketing Mixthe Marketing Mix


The Role of Promotion

A plan for the optimal use of

the elements of promotion: Advertising Public Relations Personal Selling Sales Promotion

PromotionalStrategy

PromotionalStrategy


Exhibit 16.1Exhibit 16.1Role of Promotion in Role of Promotion in the Marketing Mixthe Marketing Mix


Competitive Advantage

Unique featuresUnique features

Excellent serviceExcellent service

Low pricesLow prices

Rapid deliveryRapid delivery

High product qualityHigh product quality


Discuss the elements of the

promotional mix

The Promotional MixThe Promotional Mix


The Promotional Mix

Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. Includes:

Advertising Public Relations Personal Selling Sales Promotion

Promotional

MixPromotional

Mix


The Promotional Mix

Most commonly distributed Most commonly distributed by traditional media, though by traditional media, though increasingly through non-increasingly through non-traditional media, such as traditional media, such as Web sites, e-mail, blogs, Web sites, e-mail, blogs, and interactive video kiosks and interactive video kiosks in malls and supermarkets.in malls and supermarkets.

AdvertisingAdvertising


Advertising Media

Traditional Advertising Media

NewAdvertising

Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Banner ads Viral marketing E- mail Interactive video


AdvertisingAdvantages Disadvantages

Reach large number of people

Low cost per contact

Can be micro-targeted

Total cost is high

National reach is expensive for small companies


Public Relations

Helps an organization communicate with customers, suppliers, stockholders, government officials, employees, and the community.

Public

RelationsPublic

Relations


The Function of Public Relations

Maintain a positive image Educate the public about the

company’s objectives Introduce new products Support the sales effort Generate favorable publicity


Sales Promotion

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

Sales

PromotionSales

Promotion


Sales Promotion

EndConsumers

EndConsumers

Company EmployeesCompany

Employees

Trade Customers

Trade Customers

Free samplesFree samples

ContestsContests

PremiumsPremiums

Trade ShowsTrade Shows

Vacation GiveawaysVacation Giveaways

CouponsCoupons


Personal Selling

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

Personal

SellingPersonal

Selling


Personal Selling

Traditional Selling

Traditional Selling

Relationship Selling

Relationship Selling

Attempts to persuade the buyer into a specific point of view. Win-lose outcome.

Long-term relationships, create a win-win outcome


Describe the communication

process

Marketing CommunicationMarketing Communication


Communication

the process by which meanings are exchanged or shared through a common set of symbols.

Communication is…


Categories of CommunicationCategories of

Communication

InterpersonalCommunicationInterpersonal

CommunicationMass

CommunicationMass

Communication

Marketing Communication


As Senders As Receivers

Develop messages

Adapt messages

Spot new communication opportunities

Inform

Persuade

Remind

Marketing Communication


Exhibit 16.2Exhibit 16.2Communication ProcessCommunication Process


LO3

Exhibit 16.3Exhibit 16.3Characteristics of the Elements in Characteristics of the Elements in the Promotional Mixthe Promotional Mix


Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

AdvertisingIndirect and impersonal

Low

Little

Delayed

One-way

Yes

Yes

Fast

Same message to all audiences

Characteristics of the Elementsin the Promotional Mix

LO3


Communication Mode


Feedback Amount

Feedback Speed





Message Flexibility

Public RelationsUsually indirect, impersonal

Moderate to low

Little

Delayed

One-way

No

No

Usually fast

Usually no direct control



Communication Mode


Feedback Amount

Feedback Speed





Message Flexibility

Sales PromotionUsually indirect and impersonal

Moderate to low

Little to moderate

Varies

Mostly one-way

Yes

Yes

Fast

Same message to varied target



Communication Mode


Feedback Amount

Feedback Speed





Message Flexibility

Personal SellingDirect and face-to-face

High

Much

Immediate

Two-way

Yes

Yes

Slow

Tailored to prospect



Web 2.0

Web 2.0 tools include:

• Blogs (online journals)

• Podcasting (online radio)

• Vodcasts (online videos)

• Social Networks (Facebook, MySpace)


Blogging

Sponsored by a company or

one of its brands and

maintained by one or more of

the company’s employees.

Sponsored by a company or

one of its brands and

maintained by one or more of

the company’s employees.

Consumer-Generated

Blogs

Consumer-Generated

Blogs

CorporateBlogs

CorporateBlogs

Independent and not

associated with the

marketing efforts of any

particular company or brand.

Independent and not

associated with the

marketing efforts of any

particular company or brand.


Explain the goals and

tasks of promotion

The Goals and Tasks The Goals and Tasks of Promotionof Promotion


Goals and Tasks of Promotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience



InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity



Increase awareness

Explain how product works

Suggest new uses

Build company image

Informative Promotion

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Encourage brand switching

Change customers’ perceptions of product attributes

Influence immediate buying decision

Persuade customers to call

Persuasive Promotion

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Remind customers that product may be needed

Remind customers where to buy product

Maintain customer awareness

Reminder Promotion

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Discuss the AIDA concept and its

relationship to the promotional mix

Promotional Goals Promotional Goals and the AIDA Conceptand the AIDA Concept


The AIDA Concept

Model that outlines the process for

achieving promotional goals in

terms of stages of consumer

involvement with the message.

AttentionInterestDesireAction

AttentionInterestDesireAction

AIDA ConceptAIDA

Concept


Exhibit 16.4Exhibit 16.4


The AIDA Concept

Action

Desire

Interest

Attention Cognitive (thinking)

Affective (feeling)

Conative (doing)


Describe the factors that affect the

promotional mix

Factors Affecting the Factors Affecting the Promotional MixPromotional Mix


Factors Affecting the Choice of Promotional Mix

Nature of the productNature of the product

Stage in PLCStage in PLC

Target market characteristicsTarget market characteristics

Type of buying decisionType of buying decision

Promotion fundsPromotion funds

Push or pull strategyPush or pull strategy


Exhibit 16.5Exhibit 16.5Product Life Cycle and Product Life Cycle and

the Promotional Mixthe Promotional Mix

Advertising, PR, brandloyalty;personal selling fordistribution

Ads decrease;sales promotion;personal selling;reminder & persuasive

AD/PR decrease; limited sales promotion; personal selling for distribution

Heavy use of Advertising;PR forawareness;sales promotionfor trial

Light Advertising; pre-introductionpublicity


Target Market Characteristics

For… Widely scattered

market

Informed buyers

Brand-loyal repeat purchasers

AdvertisingAdvertising

Sales PromotionSales Promotion

Less Personal SellingLess Personal Selling


Type of Buying Decision

Advertising

Sales PromotionRoutineRoutine

Personal Selling

Neither Routinenor Complex

Neither Routinenor Complex

Advertising

Public Relations

Print AdvertisingComplexComplex


Available Funds

Trade-offs with funds availableNumber of people in target marketQuality of communication neededRelative costs of promotional

elements


Exhibit 16.6Exhibit 16.6Push Strategy versus Pull Push Strategy versus Pull StrategyStrategy


Discuss the concept of integrated marketing

communications

Integrated Marketing Integrated Marketing CommunicationsCommunications


Integrated Marketing Communications

IntegratedMarketing

Communications

IntegratedMarketing

Communications

The careful coordination of all

promotional messages to assure

the consistency of messages at

every contact point where a

company meets the consumer.


IMC Popularity Growth

Proliferation of thousands of media choices

Fragmentation of the mass market

Slash of advertising spending in favor of promotional techniques that generate immediate response


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BookChapter 16 Videos

Vans – Integrated Marketing Communication

This video examines the carefully planned strategy that Vans developed to create loyalty in a fickle niche market. Describe Vans’ pyramid strategy. How does it protect the brand?

http://www.cengage.com/marketing/book_content/1439039429_lamb/company_clips/ch16.html

Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 16 Integrated Marketing...

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