: 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.

2
1 Promotional Strategy

A plan for the optimal use of the

elements of promotion:
Advertising
Public Relations
Personal Selling
Sales Promotion

3
1 The Role of Promotion

Overall
Overall
Marketing Promotional
Promotional Mix
Mix
Marketing
Objectives
Objectives ••Advertising
Advertising
••Public
Public Relations
Relations
Marketing
MarketingMix
Mix ••Personal
Personal Selling
Selling
•• Product
Product ••Sales
Sales Promotion
Promotion
•• Distribution
Distribution
•• Promotion
Promotion
•• Price
Price

Target
TargetMarket
Market Promotion
Promotion Plan
Plan
4
1 Differential Advantage

High
High Product
Product Quality
Quality

Rapid
Rapid Delivery
Delivery
Features
Features
that
that Provide
Provide
Differential
Differential Low
Low Prices
Prices
Advantage
Advantage

Excellent
Excellent Service
Service

Unique
Unique Features
Features
5
2 Promotional Mix

Combination of promotion tools

used to reach the target market
and fulfill
the organization’s
overall goals.
Advertising
Public Relations
Personal Selling
Sales Promotion
6
 2 Promotional Mix

Advertising
Advertising

Elements
Elements Public
PublicRelations
Relations
of
of the
the
Promotional
Promotional
Mix
Mix Personal
Personal Selling
Selling

Sales
Sales Promotion
Promotion
On
OnLine
Line
http://www.nabiscoworld.com
http://www.nabiscoworld.com

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.

8
2 Advertising Media

Traditional
Traditional Electronic
Electronic
Advertising
Advertising Media
Media Advertising
Advertising Media
Media
 Television  Internet
 Radio  Electronic mail
 Newspapers  Interactive video
 Magazines
 Books
 Direct mail
 Billboards On
OnLine
Line
http://www.olympics.org
http://www.olympics.org
 Transit cards http://www.olympics.com
http://www.olympics.com
9
2 Advertising

Advantages Disadvantages

● Reach large number ● Total cost is high

of people

● Low cost per

contact

● Can be micro-
targeted

10
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.

11
 2 Public Relations

Functions
Functions of
of
Public
Public Relations
Relations

Executes
Executes
Evaluates
Evaluates public
public programs
programs to
to
attitudes
attitudes “win”
“win” public
public
Identifies
Identifies areas
areas
of
of public
public interest
interest

12
2 Publicity

Public information about a

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

13
2 Sales Promotion

Marketing activities--other than

personal selling, advertising, and
public relations--that stimulate
consumer buying and
dealer effectiveness.

14
2 Sales Promotion

Sales
Sales Promotion
Promotion
Targets
Targets

End
End Company
Company
Consumers
Consumers 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 Vacation
Vacation Giveaways
Giveaways
for
for
Consumer
Consumer Sales
Sales
Promotion Coupons
Coupons
Promotion
16
2 Personal Selling

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

17
2 Personal Selling

Traditional
Traditional Relationship
Relationship
Selling
Selling Selling
Selling

18
3 Communication

The process by which we

exchange or share
meanings through a common
set of symbols.

19
3 Marketing Communication

Categories
Categories of
of
Communication
Communication

Interpersonal
Interpersonal Mass
Mass
Communication
Communication Communication
Communication

20
3 The Communication Process

As Senders As Receivers

 Inform  Develop messages

 Persuade  Adapt messages

 Remind  Spot new

communication
opportunities

21
3 The Sender and Encoding

The
The originator
originator of
of the
the message
message in
in the
the
Sender
Sender communication
communication process.
process.

Encoding The
The conversion
conversion of of aa sender’s
sender’s ideas
ideas
Encoding
and
and thoughts
thoughts into
into aa message,
message, usually
usually
in
in the
the form
form of
of words
words oror signs.
signs.

22
 3 The Communication Process

Noise
Noise

Encoding
Encoding Message
Message Decoding
Decoding
Sender
Sender Receiver
Receiver
Message
Message Channel
Channel Message
Message

Message
Message
Channel
Channel
23
 Characteristics of the Elements
3
in the Promotional Mix

24
3 Characteristics of Advertising

Advertising
Advertising
Communication
CommunicationMode
Mode Indirect
Indirect and
andnon-personal
non-personal
Communication
CommunicationControl
Control Low
Low
Feedback
FeedbackAmount
Amount Little
Little
Feedback
FeedbackSpeed
Speed Delayed
Delayed
Message
MessageFlow
Flow Direction
Direction One-way
One-way
Message
MessageContent
Content Control
Control Yes
Yes
Sponsor
Sponsor Identification
Identification Yes
Yes
Reaching
ReachingLarge
LargeAudience
Audience 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 Usually
Usuallyindirect,
indirect,non-personal
non-personal
Communication
Communication Control
Control Moderate
Moderatetoto low
low
Feedback
FeedbackAmount
Amount Little
Little
Feedback
FeedbackSpeed
Speed Delayed
Delayed
Message
MessageFlow
FlowDirection
Direction One-way
One-way
Message
MessageContent
Content Control
Control No
No
Sponsor
SponsorIdentification
Identification No
No
Reaching
ReachingLarge
LargeAudience
Audience Usually
Usuallyfast
fast
Message
MessageFlexibility
Flexibility Usually
Usuallyno
nodirect
direct control
control
26
3 Characteristics of Sales Promotion

Sales
Sales Promotion
Promotion
Communication
Communication Mode
Mode Usually
Usuallyindirect
indirect and
and non-personal
non-personal
Communication
Communication Control
Control Moderate
Moderatetotolow
low
Feedback
FeedbackAmount
Amount Little
Littleto
tomoderate
moderate
Feedback
FeedbackSpeed
Speed Varies
Varies
Message
MessageFlow
FlowDirection
Direction Mostly
Mostlyone-way
one-way
Message
MessageContent
Content Control
Control Yes
Yes
Sponsor
SponsorIdentification
Identification Yes
Yes
Reaching
ReachingLarge
LargeAudience
Audience Fast
Fast
Message
MessageFlexibility
Flexibility Same
Samemessage
messageto
to varied
varied target
target
27
3 Characteristics of Personal Selling

Personal
Personal Selling
Selling
Communication
CommunicationMode
Mode Direct
Directand
and face-to-face
face-to-face
Communication
CommunicationControl
Control High
High
Feedback
FeedbackAmount
Amount Much
Much
Feedback
FeedbackSpeed
Speed Immediate
Immediate
Message
MessageFlow
Flow Direction
Direction Two-way
Two-way
Message
MessageContent
Content Control
Control Yes
Yes
Sponsor
Sponsor Identification
Identification Yes
Yes
Reaching
ReachingLarge
LargeAudience
Audience 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 Reminding
Reminding

PLC Stages:
Stages PLC Stages:
Introduction Maturity
Early Growth Target
Target
Audience
Audience

PLC Stages:
Growth
Maturity Persuading
Persuading
30
4 Goals and Tasks of Promotion

Informative Objective
 Increase awareness

 Explain how product works

 Suggest new uses

 Build company image

31
4 Goals and Tasks of Promotion

Persuasion Objective

 Encourage brand switching

 Change customers’ perception of

product attributes

 Influence buying decision

 Persuade customers to call

32
4 Goals and Tasks of Promotion

Reminder Objective

 Remind customers that product

may be needed

 Remind customers where to buy product

 Maintain customer awareness

On
OnLine
Line
http://www.tide.com
http://www.tide.com 33
5 The AIDA Concept

Model that outlines the process

for achieving promotional goals in
terms of stages of consumer
involvement with the message.

34
5 The AIDA Concept Taco
Bell

Action
Desire

Interest

Attention
35
 5 AIDA and the Promotional Mix

Awareness Interest Desire Action

Very Very Somewhat Not

Advertising effective effective effective effective

Public Very Very Very Not

Relations effective effective effective effective

Sales Somewhat Somewhat Very Somewhat

Promotion effective effective effective effective

Personal Somewhat Very Very Very

Selling effective effective effective 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

38
 6 Stage in the Product Life Cycle

Maturity
Sales ($)

Introduction Growth Decline

Time

39
 Product Life Cycle and the
6
Promotional Mix

Maturity
Sales ($)

Decline
Introduction Growth

Time
Light Heavy use of Advertising’ Ads AD/PR
Advertising; Advertising; PR, brand decrease; decrease;
pre- PR for loyalty; sales limited
introduction awareness; personal promotion; sales
publicity sales selling for personal promotion;
promotion distribution selling; personal
for trial reminder & selling for
persuasive distribution
40
6 Target Market Characteristics

FOR:
● Widely scattered market
● Informed buyers
● Repeat buyers

Advertising
Advertising
Sales
SalesPromotion
Promotion
Less
LessPersonal
PersonalSelling
Selling On
OnLine
Line
http://www.radioguide.com
http://www.radioguide.com
http://www.nytimes.com
http://www.nytimes.com
http://www.usatoday.com
http://www.usatoday.com 41
 6 Type of Buying Decision

Advertising
Routine
Routine
Sales Promotion
Type
Type of
of
Buying
Buying Decision
Decision Advertising
Affects
Affects Not
NotRoutine
Routine
Promotional
Promotional or
orComplex
Complex Public Relations
Mix
Mix Choice
Choice

Complex
Complex Personal Selling

42
6 Available Funds

● Trade-offs with funds available

● Number of people in
target market
● Quality of communication
needed
● Relative costs of
promotional elements

43
 6 Push and Pull Strategies

PUSH STRATEGY

Manufacturer
Manufacturer Wholesaler
Wholesaler Retailer
Retailer Consumer
Consumer
promotes
promotesto
to promotes
promotesto to promotes
promotesto to buys
buysfrom
from
wholesaler
wholesaler retailer
retailer consumer
consumer retailer
retailer

Orders to manufacturer
PULL STRATEGY
Consumer
Consumer Retailer
Retailer Wholesaler
Wholesaler
Manufacturer
Manufacturer demands
demands demands
demands demands
demands
promotes
promotesto
to product
product product
product product
productfrom
from
consumer
consumer from
fromretailer
retailer from
fromwholesaler
wholesaler manufacturer
manufacturer

Orders to manufacturer

44
 Integrated Marketing
7
Communications

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

45
7 IMC Popularity Growth

● Proliferation of thousands of
media choices

● Fragmentation of the mass market

● Slash of advertising spending in

favor of promotional techniques

46