chapter fifteen developing integrated marketing communications

Chapter Fifteen

Developing Integrated Marketing Communications

Copyright © Cengage Learning. All rights reserved.

Learning Objectives

1. Describe integrated marketing communications.

2. Understand the role of promotion.

3. Explain the purposes of the three types of advertising.

4. Describe the advantages and disadvantages of the major advertising media.

5. Identify the major steps in developing an advertising campaign.

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Learning Objectives (cont’d)

6. Recognize the various kinds of salespersons, the steps in the personal-selling process, and the major sales management tasks.

7. Describe sales promotion objectives and methods.

8. Understand the types and uses of public relations.

9. Identify the factors that influence the selection of promotion mix ingredients.

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Chapter 15 Outline

– What Is Integrated Marketing Communications?

– The Role of Promotion

– The Promotion Mix: An Overview

– Advertising• Types of Advertising by Purpose• Advertising Media• Major Steps in Developing an Advertising

Campaign• Advertising Agencies• Social and Legal Considerations in Advertising

Copyright © Cengage Learning. All rights reserved. 15 | 4

Chapter 15 Outline (cont’d)

– Personal Selling• Kinds of Salespersons• The Personal-Selling Process• Managing Personal Selling

– Sales Promotion• Sales Promotion Objectives• Sales Promotion Methods


Chapter 15 Outline (cont’d)

– Public Relations• Types of Public Relations Tools• The Uses of Public Relations

– Promotion Planning• Promotion and Marketing Objectives• Developing the Promotion Mix



What Is Integrated Marketing Communications?

• Coordination of promotion efforts for maximum informational and persuasive impact on customers

• Results in a consistent message to customers, long-term customer relationships, and the efficient use of promotional resources− Mass media advertising has given way to targeted

promotional tools (e.g., cable TV, direct mail, and the Internet)

− The overall cost of marketing communications has risen significantly, pressuring managers to make the most efficient use of marketing resources

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The Role of Promotion

• Promotion– Commonly the object of two misconceptions

• Promotional activities make up the entire field of marketing• Promotional activities are unnecessary and cause higher

prices

• Role of promotion– To facilitate exchanges directly or indirectly by informing

individuals, groups, or organizations and influencing them to accept a firm’s products or to have more positive feelings about the firm

• Convey product and service information directly to target market segments

• Provide information to interest groups, regulatory agencies, investors, and the general public

– To maintain positive relationships between a company and various groups in the marketing environment

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Information Flows Into andOut of an Organization

• A promotional activity’s effectiveness depends on the information available to marketers

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The Promotion Mix

• The particular combination of promotion methods a firm uses to reach a target market– Advertising

– Personal selling

– Sales promotion

– Public relations

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Types of Advertising by Purpose

• Primary-demand advertising• Selective-demand (brand) advertising

– Used to sell a particular brand of product– Immediate-response advertising– Reminder advertising– Comparative advertising

• Institutional advertising– Designed to enhance a firm’s image or

build its reputation

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Advertising Media

• The forms of communication through which advertising reaches its audience

• Newspapers

• Magazines

• Direct mail

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Advertising Media (cont’d)

• Yellow pages advertising

• Out-of-home advertising

• Television

• Radio

• Internet

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Major Steps in Developing an Advertising Campaign

1. Identify and analyze the target audience2. Define the advertising objectives3. Create the advertising platform4. Determine the advertising budget5. Develop the media plan6. Create the advertising message7. Execute the campaign8. Evaluate advertising effectiveness

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Advertising Agencies

• Independent firms that plan, produce, and place advertising for their clients

• Large agencies also help with sales promotion and public relations

• Media usually pay a commission to agencies• Firms may use both in-house advertising

departments and an independent agency

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Social and Legal Considerations in Advertising

• Criticisms– Advertising is wasteful

– Advertising is deceptive

• Benefits– Advertising is the most effective and least expensive

means of communicating to a large number of individuals and organizations

– Advertising encourages and is a means of competition; it thus leads to new/better products, more choice, lower prices

– Advertising revenues support our mass communication media

– Advertising provides job opportunities

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Personal Selling

• The most adaptable promotion method• The most expensive promotion method• Kinds of salespersons

– Order getter

– Order taker

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Personal Selling (cont’d)

• Kinds of salespersons (cont’d)– Sales support personnel

• Missionary salespersons

• Trade salespersons

• Technical salespersons

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Managing Personal Selling

• Setting sales objectives– Concrete, quantifiable terms

– Specified time period

– Specified geographic area

• Adjusting the size of the sales force to meet changes in the firm’s marketing plan and the marketing environment

• Attracting and hiring effective salespersons• Training salespersons• Compensating salespersons• Motivating salespersons

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Sales Promotion

• Activities or materials that are direct inducements to customers or salespersons

• Objectives– To draw new customers– To encourage trial of a new product– To invigorate the sales of a mature brand– To boost sales to current customers– To reinforce advertising– To increase traffic in retail stores– To steady irregular sales patterns– To build up reseller inventories– To neutralize competitive promotional efforts– To improve shelf space and displays

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Sales Promotion Methods

• Consumer sales promotion method • Trade sales promotion method

• Factors influencing the choice of sales promotion method– Objectives of the sales promotional effort– Product characteristics– Target market profile– Distribution channels– Availability of resellers– Competitive and regulatory forces in the environment

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Sales Promotion Methods (cont’d)

• Rebate

• Coupon

• Sample

• Premium

• Frequent-user incentives

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Sales Promotion Methods (cont’d)

• Point-of-purchase displays

• Trade shows

• Buying allowance

• Cooperative advertising

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Public Relations

• A broad set of communication activities used to create and maintain favorable relationships between an organization and various public groups, both internal and external

• Types of public relations tools– Written and spoken communications

– Event sponsorship

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Public Relations (cont’d)

• Publicity– Communication in news-story form about an

organization, its products, or both

News release

Feature article

Captioned photograph

Press conference

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The Uses of Public Relations

• To promote people, places, activities, ideas• To enhance the reputation of the organization

by increasing awareness of company products and activities

• To create specific positive company images• To maintain the public visibility of the

company• To reduce the effects of negative events on

the company’s reputation

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Promotion Planning

• Promotional campaign– A plan for combining and using the four

promotional methods—advertising, personal selling, sales promotion, and public relations—in a particular promotion mix to achieve one or more marketing goals

• What will be the role of promotion in the overall marketing mix?

• To what extent will each promotional method be used in the promotion mix?

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Promotion and Marketing Objectives

• Providing product information to target markets• Increasing market share by convincing new

customers to purchase• Positioning the product relative to the images

customers have of competing products• Stabilizing sales by increasing sales during slack

periods or for products that are declining

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Developing the Promotion Mix

• Marketers may use several promotion mixes at the same time for different products

• The promotion mix ingredients depend on– Organizational resources and objectives

– Target market characteristics

– Product characteristics

– The cost and availability of promotional methods

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chapter fifteen developing integrated marketing communications

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