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Integrated Marketing

Communications:

Advertising,

Promotions.

And Other MarComTools



Marketing Dictionary

• Promotion.

Function of informing,

persuading, and influencing aconsumer’s purchase

decision.

• Marketing Communications

Messages that deal with

buyer-seller relationships.

• Integrated MarketingCommunications (IMC).

Coordination of all

promotional activities toproduce a unified, customer-

focused promotional

message.

Goals and Tasks of Promotion

Informative Objective

• Increase awareness

• Explain how product works

• Suggest new uses

• Build company image

Persuasion Objective

• Encourage brand switching

• Change customers’ perceptionof product attributes

• Influence buying decision

• Persuade customers to call

Reminder Objective

• Remind customers thatproduct may be needed

• Remind customers where tobuy product

• Maintain customer awareness



Goals and Tasks of Promotion

Informing

Informing Reminding

Reminding

Persuading

Persuading

TargetAudience

TargetAudience

PLC StagesPLC Stages:Introduction

Early Growth

PLC Stages:PLC Stages:

Growth

Maturity

PLC Stages:PLC Stages:

Maturity



Communication Process

FeedbackFeedbackSourceSource

EncodingEncoding

MessageMessage ChannelChannel Receiver Receiver

DecodingDecodingNoiseNoise



Communication ProcessSourceSource• The marketer

• The sender of the messageEncodingEncoding• Designing of advertisements,

sales presentations,P-O-P displays, etc.

• Translation of the message into

symbolic formMessageMessage• Actual advertisement that

contains the intended message• Symbolic expression of the

sender’s thoughts

ChannelChannel• Television, radio, print media,

telephone, direct mail, etc.• Path through which the

message moves to get to thereceiver

Receiver Receiver • Person or groups of persons for

whom the message is intendedDecodingDecoding• Process receiver uses to interpret

the meaning of the message

FeedbackFeedback• Marketing research, market share

changes, sales reports• Attitude changes, purchase or non-

purchase• Gauge of effectiveness of

communication techniques

NoiseNoise• Interference at some stage incommunications process

• Competitive promotional messages• Misinterpretation of message or

wrong receiver



The Changing Communications Environment

Two Factorsare Changing the Face of Today’s

Marketing Communications:

Improvements inInformation TechnologyHas Led to

Segmented MarketingMore Narrowcasting

Marketers Have ShiftedAway From Mass

MarketingLess Broadcasting

M

arket

Fragmentat io

nLed

to

MediaFragm

entation



Key Factors in Good Communication

Sellers Need toKnow What AudiencesThey Wish to Reach

and ResponseDesired.

Sellers Need toKnow What AudiencesThey Wish to Reach

and ResponseDesired.

Sellers Must be Goodat Encoding MessagesThat Target Audience

Can Decode.

Sellers Must be Goodat Encoding MessagesThat Target Audience

Can Decode.

Sellers Must SendMessages ThroughMedia that ReachTarget Audiences

Sellers Must SendMessages ThroughMedia that ReachTarget Audiences

Sellers Must DevelopFeedback Channels to

Assess Audience’sResponse toMessages.

Sellers Must DevelopFeedback Channels to

Assess Audience’sResponse to

Messages.



CreateCreate

Brand Brand

AwarenessAwareness

CreateCreate

Brand Brand

AwarenessAwareness

EnhanceEnhanceAttributesAttributes

IntentionsIntentions

EnhanceEnhanceAttributesAttributes

IntentionsIntentions

FacilitateFacilitatePurchasePurchaseFacilitateFacilitatePurchasePurchase

Communication Objectives

Build Build

ProductsProducts

WantsWants

Build Build

ProductsProducts

WantsWants



Build Products WantsBuild Products WantsBuild Products WantsBuild Products Wants

Create Brand AwarenessCreate Brand AwarenessCreate Brand AwarenessCreate Brand Awareness

Enhance Attributes/IntentionsEnhance Attributes/IntentionsEnhance Attributes/IntentionsEnhance Attributes/Intentions

• Marketers must first build

product category wants or

primary demand

Facilitate PurchaseFacilitate PurchaseFacilitate PurchaseFacilitate Purchase







• After a product category is

established, marketers

attempt to create

secondary demand for

their specific brand







• After creating secondary

demand, marketers want

to influence attitudes and

intentions









• Marketing communication

variables can facilitate

purchase and overcome

other marketing mix

variables





Step 1. Identifying the Target Audience

Step 2. Determining the Communication ObjectivesBuyer Readiness Stages

PurchasePurchase

Conviction

Preference

Liking

Knowledge

Awareness

Steps in Developing Effective

Communication

This ad for the Toyota Celicamay be able to cover the first

three stages of the buyer-

readiness stages: awareness,

knowledge, and liking.

There is no mention of

competitors, so it does not

seem to establish prefe rence.



Step 3. Designing a Message

Message ContentRational Appeals

Emotional AppealsMoral Appeals Message Structure

Draw ConclusionsArgument TypeArgument Order Message Format

Headline, Illustration,Copy, & Color

Body Language


Communication

Designing a

Message

Content

The pictures and theslogan make this whattype of appeal?

Format

This layout, almost likea yearbook or photoalbum, reinforces thesentimental aspectof this advertisement.

Click or press spacebar to return.

Is this ad making an emotional,

rational, or moral appeal, or is it

combining them? How much

do the personified cows

contribute to this ad?

Is the ad structured to let the

audience make a decision?

Is this an effective ad?

The same company puts lifelike

statues of cows, with this slogan,

into mall food courts. What

makes that practice effective?



Nonpersonal CommunicationChannels(5 types)

Step 4. Choosing Media

Personal CommunicationChannels(wom, buzz)

Step 5. Selecting the Message Source(expertise,Trustworthiness,likability)

Step 6. Collecting Feedback


Communication



AffordableBased on What the

Company Can Afford

Objective-and-Task Based on Determining

Objectives & Tasks, ThenEstimating Costs

Objective-and-Task Based on Determining

Objectives & Tasks, ThenEstimating Costs

Percentage of SalesBased on a Certain Percentageof Current or Forecasted Sales

Percentage of SalesBased on a Certain Percentageof Current or Forecasted Sales

Competitive-ParityBased on the Competitor’s

Promotion Budget

Competitive-ParityBased on the Competitor’s

Promotion Budget

One of the Hardest Marketing Decisions Facing a Company isHow Much to Spend on Promotion.

Setting the Total Promotion

Budget



The AIDA

ConceptModel that outlines the process for

achieving promotional goals in

terms of stages of consumer

involvement with the message.

Effective Message Tasks

1. Gain the receiver’s attention.

2. Achieve understanding by both

receiver and sender.

3. Stimulate the receiver’s needs and

suggests an appropriate methodof satisfying them.



AIDA and the Promotional Mix

AwarenessAwarenessAwarenessAwareness InterestInterestInterestInterest DesireDesireDesireDesire ActionActionActionAction

Advertising Advertising Very

effectiveVery

effectiveSomewhateffective

Noteffective

Noteffective

Public Public RelationsRelations

Public Public RelationsRelations

Veryeffective

Veryeffective

Veryeffective

Veryeffective

Veryeffective

Veryeffective

Noteffective

Noteffective

SalesSales

PromotionPromotion

Somewhat

effective

Somewhat

effective

Very

effective

Very

effective

Very

effective

Personal Personal Selling Selling

Somewhateffective

Veryeffective

Veryeffective

Somewhateffective

Somewhateffective



Product Life Cycle and the Promotional Mix

LightAdvertising,

pre-introduction

Publicity

Heavy use of advertising,

PR for awareness;

salespromotion

for trial

AD/PRdecreaseLimitedSales

Promotion,PersonalSelling for

distribution

Adsdecrease.

SalesPromotion,PersonalSelling

Reminder &Persuasive

Advertising,PR, Brand

loyaltyPersonalSelling for

distribution

IntroductionIntroduction GrowthGrowth

MaturityMaturity

DeclineDecline

S

ales($)

S

ales($)

TimeTime



AdvertisingAdvertisingAdvertisingAdvertising

SalesSalesPromotionPromotion

SalesSalesPromotionPromotionP-O-PP-O-PP-O-PP-O-P

SponsorshipSponsorshipSponsorshipSponsorship

PublicityPublicityPublicityPublicityPersonalPersonal

SellingSelling

MarCom Mix

THE TOOLS OF MARKETING

COMMUNICATIONS



Personal Selling

• Person-to-person communication in which a seller informs and educates

prospective customers and attempts to influence their purchase choices.

• Process of a seller’s person-to-person promotional presentation to a buyer.

• Is essentially interpersonal.

• Is basic to any enterprise.

• The term salesperson covers a wide spectrum of positions from:

– Order taker (department store salesperson)

– Order getter (someone engaged in creative selling)

– Missionary salesperson (building goodwill or educating buyers)

Advantages of Personal Selling

• Provides a detailed explanation or demonstration of product

• Message can be varied to fit the needs of each prospective customer

• Can be directed to specific qualified prospects

• Costs can be controlled by adjusting sales force size

• Most effective in obtaining sales and gaining satisfied customers



Alternative Sales Channels for

Serving Customers

Over-the-Counter SellingCustomers in retail setting

With typical, routine needs

Field SellingCustomers who need solutions

to complex problems

TelemarketingNew customers and

customers of competitors

Inside SellingCustomers who need answers

to frequently asked questions

Customers

•Most salespeople are well-educated,well-trained professionals who work to build and

maintain long-term relationships with customers.

F t Aff ti th I t f



Factors Affecting the Importance of

Personal Selling in the Promotional Mix



Advertising• Non personal communication that is paid for by an identified sponsor and

involves either mass communication and other media or direct-to-consumer

communication via direct mail.

• Advertising adds value to brand by influencing consumers’ perception

• Effective advertising can lead to increased market share and greater

profitability

2 types:

• Institutional Advertising: Designed to enhance a company’s image rather than promote a particular product.

– message focuses on activities, personality, or point of view of a

company

– Often closely related to the public-relations function of the enterprise.

• Product Advertising: Designed to tout the benefits of a specific good or service.

– message focuses on a specific product

– This is the type of advertising the average person usually thinks of.

Ad ti i Obj ti i R l ti t



Advertising Objectives in Relation to

Stage in the Product Life Cycle

1. Informative advertising seeks to develop initial

demand for a good, service,

organization, person, place,

idea, or cause.

2. Persuasive advertising attempts to increase

demand for an existing

good, service, organization,

person, place,

3. Reminder advertising strives to reinforceprevious promotionalactivity.



Informative AdvertisingInform Consumers or

Build Primary Demand

i.e CD Players

Comparison AdvertisingCompares One Brand to

Another

i.e. Avis vs. Hertz

Persuasive AdvertisingBuild Selective Demand

i.e Sony CD Players

Reminder AdvertisingKeeps Consumers Thinking

About a Product

i.e. Coca-Cola

Advertising ObjectiveSpecific Communication Task Accomplished with a Specific

Target Audience

During a Specific Period of Time

Setting Advertising Objectives



Comparison of Advertising Media Alternatives MEDIA OUTLET PERCENTAGE

OF TOTAL*ADVANTAGES DISADVANTAGES

Broadcast

Networktelevision 17 Mass coverage; repetition; flexibility; prestige High cost; temporarymessage; public distrust;lack of selectivity

Cable television 8 Mass coverage; repetition; flexibility; prestige Temporary message

Radio 8 Immediacy; low cost; flexibility; targetedaudience; mobility

Short life span; highlyfragmented audience

Print

Newspapers 19 Tailored to individual communities; ability to refer back to ads

Short life span

Direct mail 19 Selectivity; intense coverage; speed; flexibility;opportunity to convey complete information;personalization

High cost; consumer resistance; dependence oneffective mailing list

Magazines 5 Selectivity; quality image reproduction; long life;prestige

Lack of flexibility

Outdoor 2 Quick, visual communication of simple ideas; linkto local goods and services; repetition

Brief exposure;environmental concerns

Electronic

Internet 3 Two-way communications; flexibility; link to self-directed entertainment

Poor image reproduction;limited scheduling options;difficult to measureeffectiveness

*An estimated 20 percent is spent on a variety of miscellaneous media, including Yellow Pages listings, business papers, transit displays, point-of-purchase displays, cinemaadvertising, and regional farm papers.SOURCE: Data from “Advertising Boom in U.S. Ended in ’01,” Advertising Age, May 13, 2002, p. 24.

P bli R l ti



Public Relations

• Non-personal communication to a mass audience that is not

directly paid for by the company.

• 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. (Executes programs to “win”

public)

Publicity

Public information about a company, good, or service

appearing in the mass media as a news item.



Characteristics of Public

Relations

Communication ModeCommunication Mode

Communication Control Communication Control

Feedback Amount Feedback Amount

Feedback Speed Feedback Speed

Message Flow DirectionMessage Flow Direction

Message Content Control Message Content Control Sponsor IdentificationSponsor Identification

Reaching Large AudienceReaching Large Audience

Message Flexibility Message Flexibility

Public RelationsPublic RelationsPublic RelationsPublic Relations

Usually indirect, non-personalUsually indirect, non-personal

Moderate to lowModerate to low

LittleLittle

DelayedDelayed

One-wayOne-way

NoNoNoNo

Usually fastUsually fast

Usually no direct controlUsually no direct control



PUBLIC RELATIONS

Proactive MPRProactive MPR

• Dictated by a company’smarketing objectives

• Offensively oriented

• Opportunity-seeking rather than problem-solving

• Another tool for promotion of company’s products andservices

Reactive MPRReactive MPR

• Undertaken as a resultof external pressures

•Deals with changes thathave negativeconsequences

• Attempts to repair acompany’s reputation,prevent market erosion,and regain lost sales

Sales Promotion



Sales Promotion Marketing activities other than personal selling, advertising, and publicity.

The use of any incentive by a manufacturer to induce the trade (wholesalers andThe use of any incentive by a manufacturer to induce the trade (wholesalers andretailers) or consumers to buy a brand and to encourage the sales force toretailers) or consumers to buy a brand and to encourage the sales force toaggressively sell itaggressively sell it

Accounts for double the promotional dollar outlays of advertising. Originally intended as short-term incentives aimed at producing immediate

consumer buying responses. (Offers Reasons to Buy Now)

Traditionally, these techniques were viewed as supplements to other elements of the firm’s promotional mix.

Today, however, marketers recognize them as an integral part of many

marketing plans. Shifted from short-term to long-term goals.

Principal Methods of Sales Promotion: Two major categories

1. Consumer-oriented promotions take the form of coupons and refunds, samples,contests and sweepstakes, and specialty advertising.

2. Trade promotions include trade allowances, point-of-purchase advertising, trade

shows, and dealer incentives, contests, and training programs.Rapid growth in the industry has been achieved because:

• Product managers are facing more pressure to increase their current sales, andCompanies face more competition,

• Advertising efficiency has declined, and Consumers have become more dealoriented.

T l f C S l P ti



Tools for Consumer Sales Promotion

Coupon: A certificate that entitles consumers to an immediate price reduction.

Rebate: A cash refund given for the purchase of a product during a specific product.Premium: An extra item offered to the consumer, usually in exchange

for some proof of purchase.

Loyalty Marketing Program: A promotional program designed to build long-term,mutually beneficial relationships between a company and key customers.

Frequent Buyer Program: A loyalty program in which loyal consumers are rewardedfor making multiple purchases.

Contest: Promotions that require skill or ability to compete for prizes.

Sweepstakes: Promotions that depend on chance or luck, with free participation.Sampling: A promotional program that allow the consumer the opportunity to try aproduct or service for free.



The practice of promoting the

interests of a company and its brands

by associating the company with a

specific event.

Growth of Commercial Sponsorships

1. Government restrictions.

2. Escalating costs of traditional

advertising media.

3. Additional opportunities resulting

from diverse leisure activities.

4. Greater media coverage of

sponsored events.

5. An effective way to reach an

international audience.

6. Sponsorships represent

alternatives to the increased

clutter associated with advertising

and direct mail.

Sponsorship



• Includes all signage(displays, posters,

signs, shelf cards,

and other visualmaterials) designed

to influence buying

decisions at the

point of sale.

Point-of-Purchase (P-O-P)

POINT OF PURCHASE



POINT-OF-PURCHASE

COMMUNICATIONS

• P-O-P delivers useful information and simplifies theshopping process by setting products apart from

similar items

• Increased sales

• Enables retailers to better organize shelf space andimprove inventory control, volume, and profitability

• Calls attention to special offers and helps stimulate

impulse purchasing• Serves to complement the job already performed by

advertising before the consumer enters a store

KEY PARTICIPANTS IN MARKETING



Advertising

Sales

Promotion

Sales

PromotionP-O-P

SponsorshipSponsorship

PublicityPersonal

Selling

Personal

Selling

MarCom

Integrated

Marketing

Communications

MarCom

Integrated

Marketing

Communications

• Integrated MarketingCommunication (IMC)

– A system of managing

and integrating

marketing

communication

elements with the

result that all elementsadhere to the same

message

KEY PARTICIPANTS IN MARKETING

COMMUNICATIONS

Key Aspects of Integrated Marketing



Key Aspects of Integrated MarketingCommunications

Starts with the Customer Starts with the Customer

• Requires careful study of customers’ communication usagepattern and information needs

• Communication media (contact points) is dictated by thecustomer’s needs and behavior

• Involves an outside-in approach to decision making

Use Any Form of Relevant ContactUse Any Form of Relevant Contact

• Use all forms of communication and all sources of contact

• Communication media (contact points) is dictated by thecustomer’s needs and behavior

• Involves utilization of communication outlets that areappropriate for reaching the target audience





Communications

Achieve SynergyAchieve Synergy• Another key aspect of IMC is the need for synergy

• All communication elements should convey the same, unifiedmessage, otherwise consumers will be confused

Build RelationshipsBuild Relationships

• Successful marketing requires building a relationship between thebrand and the customer

• Entails repeat purchase and loyalty

• More profitable to build and maintain relationships than tocontinuously search for new customers

Affect Behavior Affect Behavior • More than awareness or attitude changes but must includebehavioral changes

• Moving people to action



3. Expanded efforts to assess return on investment

2. Increased reliance on highly targeted

communications methods

1. Reduced Dependence in Mass-Media Advertising

Key Changes in MarCom Practice

Resulting from the IMC Thrust

Promotion Mix Strategies



Promotion Mix Strategies

Strategy Selected Depends on: Type of Product-Market & ProductLife-Cycle Stage

Push Strategy

• Utilizes aggressive trade allowances and personal selling toobtain wholesaler and retailer distribution

• The product is pushed through the channel

• Strategy that Calls for Using the Sales force and Trade

Promotion to Push the Product Through the Channels.

Pull Strategy

• Encourages consumer demand for the product to obtain

distribution• Use of heavy advertising and high value coupons

• Strategy that Calls for Spending A Lot on Advertising andConsumer Promotion to Build Up (Pull) Consumer Demand.



Push and Pull Strategies

Manufacturer Manufacturer promotes topromotes towholesaler wholesaler

Manufacturer Manufacturer promotes topromotes towholesaler wholesaler

Wholesaler Wholesaler promotes topromotes to

retailer retailer

Wholesaler Wholesaler promotes topromotes to

retailer retailer

Retailer Retailer promotes topromotes toconsumer consumer

Retailer Retailer promotes topromotes toconsumer consumer

Consumer Consumer buys frombuys from

retailer retailer

Consumer Consumer buys frombuys from

retailer retailer

PUSH STRATEGYPUSH STRATEGY

Orders to manufacturer

Manufacturer Manufacturer promotes topromotes to

consumer consumer

Manufacturer Manufacturer

promotes topromotes toconsumer consumer

Consumer Consumer

demandsdemandsproductproduct

from retailer from retailer

Consumer Consumer


from retailer from retailer

Retailer Retailer


from wholesaler from wholesaler

Retailer Retailer


from wholesaler from wholesaler

Wholesaler Wholesaler

demandsdemandsproduct fromproduct frommanufacturer manufacturer

Wholesaler Wholesaler

demandsdemands

product fromproduct frommanufacturer manufacturer

Orders to manufacturer

PULL STRATEGYPULL STRATEGY

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