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Designed by

Eric Brengle

B-books, Ltd.

CHAPTER �14

Integrated Marketing Communications

Prepared by

Deborah Baker

Texas Christian University

Marketing�Lamb, Hair, McDaniel

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Chapter 14

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Learning Outcomes

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Discuss the role of promotion in the marketing mix�

Discuss the elements of the promotional mix ��Describe the communication process

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Learning Outcomes

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Explain the goal and tasks of promotion

Discuss the AIDA concept and its relationship to the promotional mix��Describe the factors that affect the promotional mix

Discuss the concept of integrated marketing communications

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The Role of Promotion in the Marketing Mix

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Discuss the role of �promotion in the �marketing mix

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The Role of Promotion

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Promotion

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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The Role of Promotion

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Promotional

Strategy

A plan for the optimal use of the elements of promotion:

Advertising
Public Relations
Sales Promotion
Personal Selling

Competitive

Advantage

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The Role of Promotion�in the Marketing Mix

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Overall Marketing Objectives

Marketing Mix

Product
Place
Promotion
Price

Target Market

Promotional Mix

Advertising
Public Relations
Sales Promotion
Personal Selling

Promotion Plan

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Competitive Advantage

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Unique features

Excellent service

Low prices

Rapid delivery

High product quality

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REVIEW LEARNING OUTCOME�The Role of Promotion in the Marketing Mix

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The Promotional Mix

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Discuss the elements �of the promotional mix �

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The Promotional Mix

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Promotional

Mix

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

Advertising
Public Relations
Sales Promotion
Personal Selling

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The Promotional Mix

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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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Advertising Media

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Traditional

Advertising Media

New�Advertising Media

Television
Radio
Newspapers
Magazines
Books
Direct mail
Billboards
Transit cards�

Internet
Banner ads
Viral marketing
E- mail
Interactive video

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Advertising

Reach large number �of people �
Low cost per �contact �
Can be micro-�targeted

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Advantages

Disadvantages

Total cost is high�
National reach is expensive for small companies

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Public Relations

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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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Reality-Based Product Advertising

Jaguar is giving an $80,000 Jaguar XK to a select group of “beautiful people”--just to be seen in it�
It is reality-based product placement—where real life blurs seamlessly into advertising

The success of the campaign is “how many people touch and see the car”

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SOURCE: Gina Chon, “Jaguar Tries a Living Product Placement,” Wall Street Journal, June 29, 2006, B1.

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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

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Sales Promotion

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Sales�Promotion

Online

http://www.nabiscoworld.com

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

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Sales Promotion

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End

Consumers

Trade Customers

Company

Employees

Free samples

Contests

Premiums

Trade Shows

Vacation Giveaways

Coupons

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Personal Selling

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Personal

Selling

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

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Personal Selling

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Traditional

Selling

Relationship

Selling

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REVIEW LEARNING OUTCOME�Elements of the Promotional Mix

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Marketing Communication

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Describe the �communication process

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Communication

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Communication

Online

http://www.mcdonalds.com

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

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Marketing Communication

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Categories of

Communication

Interpersonal

Communication

Mass

Communication

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Marketing Communication

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As Senders

As Receivers

Develop messages�
Adapt messages�
Spot new �communication �opportunities

Inform�
Persuade�
Remind

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The Communication Process

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Noise

Sender

Encoding�Message

Feedback

Channel

Message

Channel

Decoding

Message

Receiver

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Notes:

Marketing communication is a two-way process, as shown in Exhibit 14.2.

The sender originates the message.
Encoding is the conversion of the sender’s ideas and thoughts into a message, usually words or signs.
Transmission of a message requires a channel—some communication medium. Reception occurs when the message is detected by the receiver. Transmission may be hindered because of noise—anything that interferes with, distorts, or slows down the transmission of information.
Decoding is the interpretation of the language and symbols sent. Proper match between the message to be conveyed and the target market’s attitude is the job of the marketing manager. Differences in culture, age, social class, education, and ethnicity can lead to miscommunication. Marketers targeting consumers in foreign countries must also worry about translation and miscommunication issues.
The receiver’s response to a message is direct feedback to the source. Since mass communicators are cut off from direct feedback, they rely on market research or analysis of viewer perceptions for indirect feedback.

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Characteristics of the Elements�in the Promotional Mix

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Characteristics of the Elements�in the Promotional Mix

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Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

Advertising

Indirect and impersonal

Low

Little

Delayed

One-way

Yes

Fast

Same message to all audiences

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Characteristics of the Elements�in the Promotional Mix

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Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

Public Relations

Usually indirect, impersonal

Moderate to low

Little

Delayed

One-way

No

Usually fast

Usually no direct control

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Characteristics of the Elements�in the Promotional Mix

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Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

Sales Promotion

Usually indirect and impersonal

Moderate to low

Little to moderate

Varies

Mostly one-way

Yes

Fast

Same message to varied target

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Characteristics of the Elements�in the Promotional Mix

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Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

Personal Selling

Direct and face-to-face

High

Much

Immediate

Two-way

Yes

Slow

Tailored to prospect

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The Impact of Blogging

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Corporate

Blogs

Sponsored by a company or �one of its brands and maintained �by one or more of the company’s�employees.

Noncorporate�Blogs

Independent and not associated �with the marketing efforts of any

particular company or brand.

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REVIEW LEARNING OUTCOME�The Communication Process

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The Goals and Tasks of Promotion

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Explain the goals and �tasks of promotion

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Goals and Tasks of Promotion

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�Informing

�Reminding

Persuading

Target

Audience

Online

http://www.tide.com

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Goals and Tasks of Promotion

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�Informing

�Reminding

Persuading

Target

Audience

PLC Stages:

Introduction

Early Growth

PLC Stages:

Growth

Maturity

PLC Stages:

Maturity

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Goals and Tasks of Promotion

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�

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

Informative Promotion

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Goals and Tasks of Promotion

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�

Persuasive Promotion

�

Encourage brand switching�
Change customers’ perceptions of product attributes�
Influence immediate buying decision�
Persuade customers to call

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Goals and Tasks of Promotion

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�

Reminder Promotion

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Remind customers that product �may be needed �
Remind customers where �to buy product�
Maintain customer awareness

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Promotional Goals �and the AIDA Concept

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Discuss the AIDA concept �and its relationship to �the promotional mix�

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The AIDA Concept

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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

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Action

Desire

Interest

Attention

Cognitive (thinking)

Affective (feeling)

Conative (doing)

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http://www.nascar.com�http://www.kelloggs.com

Online

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REVIEW LEARNING OUTCOME�The AIDA Concept

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Factors Affecting the Promotional Mix

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Describe the factors that �affect the promotional mix

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Factors Affecting the �Choice of Promotional Mix

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Nature of the product

Stage in PLC

Target market factors

Type of buying decision

Promotion funds

Push or pull strategy

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Stage in the Product Life Cycle

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Light

Advertising;

pre-

introduction

publicity

Heavy use of

Advertising;

PR for

awareness;

sales

promotion

for trial

AD/PR

decrease;

limited

sales

promotion;

personal

selling for

distribution

Ads decrease;

sales promotion;

personal selling;�reminder &

persuasive

Advertising,

PR, brand

loyalty;

personal

selling for

distribution�

Introduction

Growth

Maturity

Decline

Sales ($)

Time

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Notes:

The Product Life Cycle is a factor in designing a promotion mix, as shown in Exhibit 14.5.
In the introduction stage, the basic goal of promotion is to inform the target audience of product availability. Advertising and public relations inform the target audience, while sales promotion encourages early trial. Personal selling gets retailers to carry the product.
During the growth stage, advertising and public relations continue to be important, although sales promotion can be reduced because customers need fewer incentives to purchase. The promotional strategy is to emphasize the product’s differential competitive advantage. Persuasive promotion is used to build and maintain brand loyalty. Personal selling has succeeded in obtaining adequate distribution for the product.
In the maturity stage, competition becomes fiercer, and persuasive and reminder advertising are more strongly emphasized. Sales promotion comes back into focus to try to increase market share.
As the product enters the decline stage, all promotion, especially advertising, is reduced. Nevertheless, personal selling and sales promotion efforts may be maintained, particularly at the retail level.

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Target Market Characteristics

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For…

Widely scattered market
Informed buyers
Brand-loyal repeat purchasers

Advertising

Sales Promotion

Less Personal Selling

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Type of Buying Decision

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Advertising

Sales Promotion

Routine

Personal Selling

Neither Routine

nor Complex

Advertising

Public Relations

Print Advertising

Complex

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Available Funds

Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements

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Push and Pull Strategies

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Manufacturer

promotes to

wholesaler

Wholesaler

promotes to

retailer

Retailer

promotes to

consumer

Consumer

buys from

retailer

PUSH STRATEGY

Orders to manufacturer

Manufacturer

promotes to

consumer

Consumer

demands

product

from retailer

Retailer

demands

product

from wholesaler

Wholesaler

demands

product from

manufacturer

Orders to manufacturer

PULL STRATEGY

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Notes:

Manufacturers may use aggressive personal selling and trade advertising to convince a wholesaler/retailer to carry and sell their merchandise. This is known as a push strategy. The wholesaler, in turn, pushes the merchandise forward by persuading the retailer to handle the goods. The retailer uses advertising and other forms of promotion to convince customers to buy the “pushed” products.�
At the other end is a pull strategy, which stimulates consumer demand to obtain product distribution. The manufacturer uses a pull strategy by focusing promotional efforts on end consumers and opinion leaders. The wholesaler then places an order for the “pulled” merchandise from the manufacturer. Consumer demand pulls the product through the channel of distribution.�
A company typically uses a mix of push and pull strategies.

The Push and Pull strategies are diagrammed in Exhibit 14.6.

Discussion/Team Activity:

Discuss products and/or industries that utilize push and/or pull strategies in their promotion mix.

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REVIEW LEARNING OUTCOME�Factors Affecting Promotional Mix

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Integrated Marketing Communications

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Discuss the concept of �integrated marketing �communications

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Integrated Marketing Communications

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Integrated

Marketing�Communications

The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.

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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 that generate immediate response

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REVIEW LEARNING OUTCOME �Integrated Marketing Communications

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Chapter 14