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Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Chapter 15Chapter 15
Integrated Integrated Marketing Marketing
CommunicationsCommunications
15-2Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Chapter ObjectivesChapter Objectives1. Explain how integrated marketing communications relates
to the development of an optimal promotional mix.2. Describe the communication process and how it relates to
the AIDA concept.3. Explain how the promotional mix relates to the objectives
of promotion.4. Identify the different elements of the promotional mix and
explain how marketers develop an optimal promotional mix.
5. Describe the role of sponsorships and direct marketing in integrated marketing communications.
6. Contrast the two major alternative promotional strategies.7. Explain how marketers budget for and measure the
effectiveness of promotion.8. Discuss the value of marketing communications.
15-3Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
PromotionPromotionFunction of informing, persuading, and
influencing the consumer’s purchase decision
Marketing CommunicationsMarketing CommunicationsTransmission from a sender to a
receiver of a message dealing with the buyer-seller relationship
15-4Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Integrated Marketing CommunicationsIntegrated Marketing Communications
Coordination of all promotional activities – media advertising, direct mail, personal selling, sales promotion, and public relations – to produce a unified customer-focused promotional message
Importance of TeamworkImportance of TeamworkIMC requires a total strategy including
all marketing activities, not just promotion
15-5Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Role of Databases in Effective IMC Role of Databases in Effective IMC ProgramsProgramsWith the growth of the Internet,
marketers have been given the power to gather information faster and to organize it easier than ever before
By sharing this knowledge appropriately among all relative parties, a firm can lay the foundation for a successful IMC program
15-6Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
The Communications ProcessThe Communications Process
An effective promotional message accomplishes three tasks:It gains the receiver’s attentionIt achieves understanding by both
receiver and senderIt stimulates the receiver’s needs and
suggests an appropriate method of satisfying them
15-7Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
AIDA conceptAIDA concept (Attention-Interest-Desire-Action) – an explanation of the steps through which an individual reaches a purchase decisionSenderEncodingChannelDecodingResponseFeedbackNoise
15-8Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Global Difficulties with the Communication Process In China: KFC’s slogan: “Finger lickin’ good” came
out as “Eat your fingers off”Also in China: Coca-Cola had thousands of signs
made using the translation: “Ke-kou-ke-la”Depending on the dialect this means . . . “Bite the wax tadpole,” or “Female horse stuffed with wax”
In Taiwan: Pepsi’s slogan, “Come alive with the Pepsi generation” came out as “Pepsi will bring your ancestors back from the dead”
15-9Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Objectives of PromotionObjectives of Promotion
Provide InformationProvide Information Increase DemandIncrease Demand Differentiate the ProductDifferentiate the Product Accentuate the Product’s ValueAccentuate the Product’s Value Stabilize SalesStabilize Sales
15-10
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Elements of the Promotional MixElements of the Promotional Mix
Promotional mixPromotional mix: blend of personal selling and nonpersonal selling designed to achieve promotional objectivesPersonal sellingPersonal selling: interpersonal
promotional process involving a seller’s person-to-person presentation to a prospective buyer
Nonpersonal sellingNonpersonal selling includes: Advertising, Product placement, Sales promotion, Direct marketing, Public relations
15-11
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AdvertisingAdvertisingPaid, nonpersonal communication through
various media by a business firm, not-for-profit organization, or individual identified in the message with the hope of informing or persuading members of a particular audience
Product PlacementProduct PlacementMarketer pays a motion picture or
television program owner a fee to display his or her product prominently in the film or show
15-12
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Sales PromotionSales PromotionMarketing activities that stimulates
consumer purchasing (includes: displays, trade shows, coupons, premiums, contests, product demonstrations, and various nonrecurrent selling efforts)
Trade promotion Direct MarketingDirect Marketing
Direct communications other than personal sales contact between buyer and seller, designed to generate sales, information requests, or store visits
15-13
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Public relationsPublic relations: firm’s communications and relationships with its various publics
PublicityPublicity: stimulation of demand for good, service, place, idea, person, or organization by unpaid placement of commercially significant news or favorable media presentations
Guerilla MarketingGuerilla Marketing: Unconventional, innovative, and low-cost marketing techniques designed to get consumers’ attention in unusual ways.
15-14
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SponsorshipsSponsorships
Provision of funds for a sporting or cultural event in exchange for a direct association with the events or activity
Growth of SponsorshipsGrowth of Sponsorships How Sponsorship Differs from AdvertisingHow Sponsorship Differs from Advertising
Sponsor’s degree of control, Nature of the message, Audience reaction
Ambush marketing Assessing Sponsorship ResultsAssessing Sponsorship Results
15-15
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Direct Marketing Communication ChannelsDirect Marketing Communication Channels
Telephone
Direct Mail
Television
Newspaper
Magazine
Radio
15-16
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Direct Mail Direct Mail Marketers combine information from
internal and external databases, surveys, coupons, and rebates that require responses to provide information about consumer lifestyles, buying habits, and wants
CatalogsCatalogsOver 10,000 different consumer mail-order
catalogs and thousands more for business-to- business sales are mailed each year generating over $57 million in consumer sales and $36 million in B2B sales
15-17
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TelemarketingTelemarketing: promotional presentation involving the use of the telephone for outbound contacts by salespeople or inbound contacts initiated by customers who want to obtain information and place orders
Direct Marketing via Broadcast ChannelsDirect Marketing via Broadcast ChannelsBroadcast direct marketing includes:Brief (30 to 90 and second) direct
response ads on television or radioHome shopping channels like:
Quality Value Channel (QVC)Home Shopping Network (HSN)
Infomercial
15-18
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Electronic Direct Marketing ChannelsElectronic Direct Marketing ChannelsWeb advertising is an important
component of electronic direct marketingE-mail direct marketing is a natural and
easy extension of traditional direct mail marketing
Other Direct Marketing ChannelsOther Direct Marketing ChannelsPrint media is generally not as effective as
Web marketing or telemarketing for direct marketers
Magazine and newspaper ads with toll-free telephone numbers, kiosks, and other media are still useful in many situations
15-19
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Developing an Optimal Promotional MixDeveloping an Optimal Promotional Mix
Factors that influence the effectiveness of a promotional to mix:Nature of the marketNature of the productStage in the product life-cyclePriceFunds available for promotion
15-20
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Pulling and PushingPulling and PushingPromotional StrategiesPromotional Strategies
Pulling strategyPulling strategy: promotional effort by a seller to stimulate demand among final users, who will then exert pressure on the distribution channel to carry the good or service, pulling it though the marketing channel
Pushing strategyPushing strategy: promotional effort by a seller to members of the marketing channel intended to stimulate personal selling of the good or service, thereby pushing it through the marketing channel
15-21
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Budgeting for Promotional StrategyBudgeting for Promotional Strategy
Percentage-of-sales method
Fixed-sum-per-unit method
Meeting competition method
Task-objective method
15-22
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Measuring the Effectiveness of PromotionMeasuring the Effectiveness of Promotion
Two basic measurement tools:Direct sales results measures the
effectiveness of promotion by revealing the specific impact on sales revenues for each dollar of promotional spending
Indirect evaluation concentrates on quantifiable indicators of effectiveness like:RecallReadership
15-23
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Measuring Online PromotionsMeasuring Online PromotionsEarly attempts at measuring online
promotional efforts involved counting hits and visits
Incorporating direct response and comparing different promotions for effectiveness
Two major techniques for setting online advertising rates:Cost per impression (CPM)Cost per response (click-throughs)
15-24
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The Value of Marketing CommunicationsThe Value of Marketing Communications
Social ImportanceSocial ImportanceCriticisms of promotional messages as
tasteless and lacking any contribution to society sometimes ignore the fact that society provides no commonly accepted set of standards
The one generally accepted standard in a market society is freedom of choice for the consumer
Promotion has become an important factor in campaigns aimed at achieving socially oriented objectives like the elimination of drug abuse
15-25
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Business ImportanceBusiness ImportancePromotional strategy has become
increasingly important to both small and large firms
Both business and nonbusiness enterprises recognize the importance of promotional efforts
Economic ImportanceEconomic ImportanceEffective promotion has allowed society to
derive benefits not otherwise availableSubsidizes the information contents of
newspapers and the broadcast media
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