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Professor Jason C. H. Chen, Ph.D.
School of Business Administration
Gonzaga UniversitySpokane, WA 99223
Chapter 16An Overview of Marketing
Communications
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Discuss the objectives of marketingcommunications.
Understand the marketing communications mix
and its role. Explain the key elements of the marketing
communications process.
Discuss the seven steps in the marketingcommunications planning process.
Demonstrate awareness of some of the keyethical and legal issues related to marketing
communications.
After studying this chapter
you should be able to:
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OPENING VIGNETTE
WWW.MINIUSA.COM
1. What were the objectives of BMWs integratedcommunications program to establish the MiniCooper as a quirky and funproduct? Why didthey use so many different communicationschannels?
2. What did BMW accomplish by putting up a Webpage nine months before the Mini Cooper wasintroduced in the American market?
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A Marketing Strategyshowing the 4 Ps of a
Marketing Mix
PlaceProduct
Price Promotion
C
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Overview of Marketing Strategy Planning Process
PlaceProduct
Price Promotion
C
External Market EnvironmentTechnologies Political and Legal Cultural and Social Economic
Narrowing down to focused strategy with quantitative and qualitative screening criteria
CustomersNeeds and other
Segmenting
Dimensions
CompanyObjectives
&
Resources
CompetitorsCurrent
&
Prospective
Segmentation &
Positioning
Segmentation &
TargetingS.
W.
O.
T.
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Promotion
Communicating information between seller
and potential buyer or others in the channel -
to influence attitudes and behavior
Three major categories:Personal Selling
Mass Selling (Advertising and Publicity)
Sales Promotion
Different methods have different limitations
and advantages
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Photo of Colgate Palmolive
s director of
promotions conducting a meeting
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Target
Market
Promotion PricePlaceProduct
Personal
selling
Mass
selling
Sales
promotion
PublicityAdvertising
Basic Promotion Methods and Strategy Planning
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AIDA Model: Impact of promotional tools on consumer response
Personal SellingAdvertising
Public relations
and publicity
Sales
promotion
Effectiveness
Awareness/Attention Interest Desire Action
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Relation of Promotion Objectives, Adoption
Process, and AIDA Model
Promotion Objectives Informing Persuading Reminding
Adoption Process Awareness Interest Evaluation
Trial Decision Confirmation
AIDAModel
Attention
Interest
Desire Action
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The Role of Marketing Communications
(Basic Promotion Objectives)
InformingPersuading
Reminding
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ActionConfirmationReminding
DesireTrail
Decision
Persuading
Attention
Interest
Awareness
Interest
Evaluation
Informing
AIDA ModelAdoption ProcessPromotion Objectives
Relation of Promotion Objectives, Adoption
process, and AIDA Model
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ObjectivesInform
Persuade
Remind
Advertising
Direct
marketing
Personal
selling
Sales
promotion
Public
relations
The Marketing Communications Mix
Exhibit 16-1
The marketing communication mix
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14/47Irwin/McGraw-Hill & Dr. Chen16-14(left) KELLOGGS NUTRI-GRAIN and KELLOGGS SNACK UMS are trademarks of Kellogg Company. All rights reserved. Used with permission.;
(right) Courtesy Beech Nutrition Companyfor use only with Basic Marketing
Kellogg and Beechnut ads
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Integrated Marketing Communications
Integrated MarketingCommunications (IMC):
The strategic integration of
multiple means ofcommunicating with target
markets to form a
comprehensive, consistent
message.
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Integrated Marketing Communications
Intentional coordination of every communication
from a firm to a target customer to convey a
consistent and complete message
Marketing manager blends inputs from
Sales managers Advertising managers
Public relations manager
Sales promotion managers
Integrated promotion effort in channel requires
cooperation and coordination
Blend depends on promotion objectives and
situation
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The Marketing Communications Process
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Traditional Communication Concepts
in Promotion
Sourcethe sender of a message Encodingthe source deciding what to say
and translating it into words or symbols that
convey meaning
Message channelthe carrier of the message
Noiseany distraction that reduces theeffectiveness of the communication process
Decodingthe receiver translating themessage
Receiverthe potential customer
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Marketing Communications Planning
Situation
Analysis(see next slide)
CommunicationsProcess
Analysis
Budget
Development
Program
Development
Integration
&
Implementation
Monitoring,
Evaluating,
Controlling
Marketing
Plan
Review
Exhibit 16-3
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Marketing Communications Environments
The
Competitive
Environment
The
Economic
Environment
MarketingMix
Considerations
TheSocial
Environment
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Communications Process Analysis
Apply the Basic Communication
Model.
Set Marketing Communications
Objectives
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Budget Development
Influences on Budgeting: Size of the company
Its financial resources
The type of business
The market dispersion
The industry growth rate
The firms position in the
marketplace
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Budgeting Methods
Percentage of Sales
Competitive Parity
All-You-Can-Afford Objective-Task
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Setting the Promotion Budget
Budget based on percent of past or expected sales most common approach
main advantage is ease
can lead to major problems, including cutbacks when
more money is needed
Task methodbudgets for what needs to be
accomplished
usually the sensible approach
requires that activities be evaluated against objectives
Same ideas apply in budgeting other types of
marketing activities
C
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Marketing Communications
Program Development
Explicit Communications:
Convey a distinct, clearly stated message
through personal selling, advertising, publicrelations, sales promotion, direct marketing, or
some combination of these methods.
Implicit Communications: What the message connotes about the product
itself, its price, or the places it is sold.
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Manufacturer
Wholesaler
Retailer
Consumer
Manufacturer
Wholesaler
Retailer
Consumer
P
R
O
MO
T
I
O
N
P
R
O
M
O
T
I
O
N
Push Pull
PUSH and PULL STRATEGIES
M k ti C i ti
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Marketing Communications
Program Development (cont.)
Push Strategy: Involves convincing intermediary channel members to
pushthe product through the channel to the ultimate
consumer. Pull Strategy:
Attempts to get consumers to pullthe product fromthe manufacturing company through the marketingchannel.
Combination Strategy:
Aiming marketing communications at bothresellers and ultimate consumers.
P ti M E P hi i th Ch l
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Producers promotion blend
Personal selling, sales promotion, advertising,
and publicity
Wholesalerspromotion
push
Retailers
promotion
push
Wholesalerspromotion
push
Final
consumers
request (pull)
product
Business
customers
request (pull)
product
Promotion
to final
consumers
Promotion
to business
customers
Promotion to channel members
Promotion May Encourage Pushing in the Channel,
Pulling by Customers, or Both
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Promotion Blend May Involve Pushing and
Pulling
PUSHINGusing normal promotion efforts to sell
the marketing mix to channel members
PULLINGgetting customers to ask middlemen for
the product, usually because of
promotion directed to final consumers
or users
Some combination of the two methods is
usually required
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Integration and Implementation
Implementation: Setting the marketing communications
plan into action.
The key aspect o f imp lementat ion
is coord ination !! !
Monitoring Evaluating and
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Monitoring, Evaluating, and
Controlling
Examples: Monitor sales promotion by the number of coupons
redeemed.
Measure the effectiveness of a new personal selling
strategy by looking at the number of new accountsopened.
A firm might run tests to see if consumers noticedthe ad.
Review sales results and attribute fluctuations insales volume to MC.
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Promotion Seeks to Shift the Demand Curve
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A. Demand moreinelastic ( consumers
less price-sensitive)
B. Demand shift tothe right (consumers
buy more)
C. Both to the rightand more inelastic
Quantity
Price
0
D1D2
Quantity
Price
0
D1
D2
Quantity
Price
0
D1D2
Promotion Seeks to Shift the Demand Curve
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Advertising
Personal selling
Consumer goods Industrial goods
A. Normal communication mix in consumer VS. industrial market
Percentofpromotionb
udget
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Advertising
Personal selling
Awareness Preference
B. Communication mix cost-effectiveness at different buyer
readiness stage
Perc
entofpromotion
budget
Knowledge Purchase
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Integrated Direct-Response Promotion
Direct communication between a seller and individual
customer using a promotion method other than face-to-face
personal selling
Started with mail advertising, but has evolved to include
other media, including
Internet
Teletext and Cable TV
Interactive Video Kiosks
Fax on Demand
Distinctive feature is that it attempts to evoke a directresponse from the customer
Closely tied to use of a database to target customers
Privacy and other ethical issues may arise
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Customer May Initiate Communication
New electronic media encourage consumersto search for information
Consumer decides how much information to
get
Marketing information not just in 30-second
sound bytes
Action (response)including purchase
may be immediate
Communication with customers is becoming
more customized (personalized)
A Model of Customer Initiated Interactive
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A Model of Customer-Initiated Interactive
Communication
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Multistep Flow Model of Communication
R l ti f P ti Obj ti Ad ti
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Relation of Promotion Objectives, Adoption
Process, and AIDA Model
Promotion Objectives Informing Persuading Reminding
Adoption Process Awareness Interest Evaluation Trial Decision Confirmation
AIDAModel
Attention
Interest
Desire Action
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The Adoption Curve
Innovators3-5% EarlyAdopters10-15%
EarlyMajority34%
LateMajority34%
Laggards orNonadopters5-16%
90
50
20
5
0Time
PercentAdoption
Ethi l d L l C id ti
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Ethical and Legal Considerations
M C Element Legal / Ethical Concerns
Advertising Deceptive advertising
Unfavorable stereotypes
Public Relations Lack of sincerity
Using economic power unfairly
Sales Promotion Misleading consumer promotions
Paying slotting allowances for shelf space
Personal Selling High-pressure selling
Misrepresenting product benefits
Direct Marketing Telemarketing privacy invasion
Misuse of consumer database information
L l b t Ethi l?
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Legal -- but Ethical?
Some marketing communications may betechnically legal but raise significant ethicalquestions: Liquor industry now advertises on cable and local
television stations.
Extensive promotion of higher-cost drugs when healthcare costs are spiraling out of control.
Heavy promotional allowances to pharmacies for
agreement to push proprietary instead of genericdrugs.
Promotion of legalized gambling.
Deception in Marketing
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Deception in MarketingCommunications
Deceptive
Advertising:
Communicationsintended to mislead
consumers by
making false claims
or failing to disclose
importantinformation.
Examples:
False pricing offers
Misleading or overstating
product benefits
Non-substantiation ofclaims made in marketing
communications
Addi i l R l C
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Additional Regulatory Concerns
Comparative advertising requires that
comparative claims be supported.
Product endorsers must be qualified tomake judgments and must actually
use the product being endorsed.
Packaging and labeling practices of food
and drug marketers are heavily scrutinized
by consumers and regulatory agencies.
Eff t f Gl b li ti
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Effects of Globalization
Adjust the communications mixfrom country to country to avoid
legal and ethical problems.
Sales promotion techniquesthat involve contests and
giveaways are regulated quite
differently in various countries.
Eff t f Gl b li ti
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Effects of Globalization
Acceptable personalselling behavior varies
significantly across
countries and cultures.
Special precautions must
be taken to not
perpetuate unfavorablestereotypes of ethic and
racial groups.
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