Integrated Marketing Communications

: Integrated Marketing Communications Objectives: 1. Discuss the role of promotion in the marketing mix. 2. Discuss the elements of the promotional mix. 3. Describe the communication process. 4. Explain the goal and tasks of promotion. 5. Discuss the AIDA concept and its relationship to the promotional mix. 6. Describe the factors that affect the promotional mix. 7. Discuss the concept of integrated marketing communications. 1

1 Promotion

Pontiac

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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1 Promotional Strategy A plan for the optimal use of the elements of promotion: Advertising Public Relations Personal Selling Sales Promotion

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1 The Role of Promotion Overall Overall Marketing Marketing Objectives Objectives Marketing MarketingMix Mix •• Product Product •• Distribution Distribution •• Promotion Promotion •• Price Price Target TargetMarket Market

Promotional Promotional Mix Mix ••Advertising Advertising ••Public Public Relations Relations ••Personal Personal Selling Selling ••Sales Sales Promotion Promotion

Promotion Promotion Plan Plan 4

1 Differential Advantage High High Product Product Quality Quality

Features Features that that Provide Provide Differential Differential Advantage Advantage

Rapid Rapid Delivery Delivery Low Low Prices Prices Excellent Excellent Service Service Unique Unique Features Features 5

2 Promotional Mix

Advertising Public Relations Personal Selling Sales Promotion

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

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2 Promotional Mix Advertising Advertising

Elements Elements of of the the Promotional Promotional Mix Mix

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Public PublicRelations Relations

Personal Personal Selling Selling

Sales Sales Promotion Promotion 7

2 Advertising

Pepsi 1 Pepsi 2 Pepsi 3

Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

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2 Advertising Media

       

Traditional Traditional Advertising Advertising Media Media

Electronic Electronic Advertising Advertising Media Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

 Internet  Electronic mail  Interactive video

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2 Advertising Advantages

Disadvantages

●

Reach large number of people

● Total cost is high

●

Low cost per contact

●

Can be microtargeted

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2 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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2 Public Relations Functions Functions of of Public Public Relations Relations Executes Executes programs programs to to “win” “win” public public

Evaluates Evaluates public public attitudes attitudes Identifies Identifies areas areas of of public public interest interest

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2 Publicity

Public information about a company, good, or service appearing in the mass media as a news item.

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2 Sales Promotion

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

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2 Sales Promotion

Sales Sales Promotion Promotion Targets Targets End End Consumers Consumers

Company Company Employees Employees Trade Trade Customers Customers 15

2 Sales Promotion Free Free samples samples Contests Contests Premiums Premiums Trade Trade Shows Shows

Popular Popular Tools Tools for for Consumer Consumer Sales Sales Promotion Promotion

Vacation Vacation Giveaways Giveaways Coupons Coupons 16

2 Personal Selling

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

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2 Personal Selling Traditional Traditional Selling Selling

Relationship Relationship Selling Selling

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3 Communication

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

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3 Marketing Communication

Categories Categories of of Communication Communication

Interpersonal Interpersonal Communication Communication

Mass Mass Communication Communication

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3 The Communication Process As Senders

As Receivers

 Inform

 Develop messages

 Persuade

 Adapt messages

 Remind

 Spot new communication opportunities

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3 The Sender and Encoding

Sender Sender

Encoding Encoding

The The originator originator of of the the message message in in the the communication communication process. process. The The conversion conversion of of aa sender’s sender’s ideas ideas and and thoughts thoughts into into aa message, message, usually usually in in the the form form of of words words or or signs. signs.

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3 The Communication Process Noise Noise

Sender Sender

Encoding Encoding Message Message

Message Message Channel Channel

Decoding Decoding Message Message

Receiver Receiver

Message Message Channel Channel 23

Characteristics of the Elements 3 in the Promotional Mix

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3 Characteristics of Advertising Advertising Advertising Communication CommunicationMode Mode Communication CommunicationControl Control

Indirect Indirect and andnon-personal non-personal Low Low

Feedback FeedbackAmount Amount Feedback FeedbackSpeed Speed

Little Little Delayed Delayed

Message MessageFlow Flow Direction Direction Message MessageContent Content Control Control

One-way One-way Yes Yes

Sponsor Sponsor Identification Identification Reaching ReachingLarge LargeAudience Audience

Yes Yes Fast Fast

Message MessageFlexibility Flexibility

Same Samemessage messageto to all allaudiences audiences 25

3 Characteristics of Public Relations Public Public Relations Relations Communication Communication Mode Mode Communication Communication Control Control

Usually Usuallyindirect, indirect,non-personal non-personal Moderate Moderateto to low low

Feedback FeedbackAmount Amount Feedback FeedbackSpeed Speed

Little Little Delayed Delayed

Message MessageFlow FlowDirection Direction Message MessageContent Content Control Control

One-way One-way No No

Sponsor SponsorIdentification Identification Reaching ReachingLarge LargeAudience Audience

No No Usually Usuallyfast fast

Message MessageFlexibility Flexibility

Usually Usuallyno nodirect direct control control 26

3 Characteristics of Sales Promotion Sales Sales Promotion Promotion Communication Usually Communication Mode Mode Usuallyindirect indirect and and non-personal non-personal Communication Moderate Communication Control Control Moderateto tolow low Feedback Little FeedbackAmount Amount Littleto tomoderate moderate Feedback FeedbackSpeed Speed Message MessageFlow FlowDirection Direction

Varies Varies Mostly Mostlyone-way one-way

Message MessageContent Content Control Control Sponsor SponsorIdentification Identification

Yes Yes Yes Yes

Reaching ReachingLarge LargeAudience Audience Message MessageFlexibility Flexibility

Fast Fast Same Samemessage messageto to varied varied target target 27

3 Characteristics of Personal Selling Personal Personal Selling Selling Communication CommunicationMode Mode Communication CommunicationControl Control Feedback FeedbackAmount Amount Feedback FeedbackSpeed Speed

Direct Directand and face-to-face face-to-face High High Much Much Immediate Immediate

Message MessageFlow Flow Direction Direction Message MessageContent Content Control Control

Two-way Two-way Yes Yes

Sponsor Sponsor Identification Identification Reaching ReachingLarge LargeAudience Audience

Yes Yes Slow Slow

Message MessageFlexibility Flexibility

Tailored Tailoredto toprospect prospect 28

4 Goals and Tasks of Promotion Informing Informing

Reminding Reminding

Target Target Audience Audience

Persuading Persuading 29

4 Goals and Tasks of Promotion Informing Informing PLC Stages: Stages Introduction Early Growth

PLC Stages: Growth Maturity

Reminding Reminding

Target Target Audience Audience

PLC Stages: Maturity

Persuading Persuading 30

4 Goals and Tasks of Promotion Informative Objective  Increase awareness  Explain how product works  Suggest new uses  Build company image

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4 Goals and Tasks of Promotion Persuasion Objective  Encourage brand switching  Change customers’ perception of product attributes  Influence buying decision  Persuade customers to call

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4 Goals and Tasks of Promotion Reminder Objective  Remind customers that product may be needed  Remind customers where to buy product  Maintain customer awareness

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5 The 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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5 The AIDA Concept

Taco Bell

Action Desire Interest Attention 35

5 AIDA and the Promotional Mix

Awareness Interest

Desire

Action

Advertising

Very effective

Very effective

Somewhat effective

Not effective

Public Relations

Very effective

Very effective

Very effective

Not effective

Sales Promotion

Somewhat effective

Somewhat effective

Very effective

Somewhat effective

Personal Selling

Somewhat effective

Very effective

Very effective

Very effective 36

Factors Affecting the 6 Choice of Promotional Mix Nature Nature of of the the Product Product Stage Stage in in PLC PLC Target Target Market Market Factors Factors Type Type of of Buying Buying Decision Decision Promotion Promotion Funds Funds Push Push or or Pull Pull Strategy Strategy 37

6 Nature of the Product

Factors that influence promotional mix ● Product characteristics − Business product vs. consumer product ● Costs and risks ● Social risk

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6 Stage in the Product Life Cycle

Sales ($)

Maturity Introduction

Growth

Decline

Time 39

Sales ($)

Product Life Cycle and the 6 Promotional Mix Maturity Introduction

Growth

Decline

Time Light Heavy use of Advertising; Advertising; prePR for introduction awareness; publicity sales promotion for trial

Advertising’ PR, brand loyalty; personal selling for distribution

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

AD/PR decrease; limited sales promotion; personal selling for distribution 40

6 Target Market Characteristics

FOR: ●

Widely scattered market

●

Informed buyers

●

Repeat buyers

Advertising Advertising Sales SalesPromotion Promotion Less LessPersonal PersonalSelling Selling

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6 Type of Buying Decision

Routine Routine

Type Type of of Buying Buying Decision Decision Affects Affects Promotional Promotional Mix Mix Choice Choice

Advertising Sales Promotion Advertising

Not NotRoutine Routine or orComplex Complex

Public Relations

Complex Complex

Personal Selling

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6 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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6 Push and Pull Strategies PUSH STRATEGY Manufacturer Manufacturer promotes promotesto to wholesaler wholesaler

Wholesaler Wholesaler promotes promotesto to retailer retailer

Retailer Retailer promotes promotesto to consumer consumer

Consumer Consumer buys buysfrom from retailer retailer

Orders to manufacturer

PULL STRATEGY Manufacturer Manufacturer promotes promotesto to consumer consumer

Consumer Consumer demands demands product product from fromretailer retailer

Retailer Retailer demands demands product product from fromwholesaler wholesaler

Wholesaler Wholesaler demands demands product productfrom from manufacturer manufacturer

Orders to manufacturer 44

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Integrated Marketing Communications

A method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused.

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7 IMC Popularity Growth

● Proliferation of thousands of media choices ● Fragmentation of the mass market ● Slash of advertising spending in favor of promotional techniques

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