Copyright © 2007 Pearson Education Canada12-1 Marketing: An Introduction Second Canadian Edition...

Copyright © 2007 Pearson Education Canada12-1

Marketing: An Introduction Second Canadian Edition

Armstrong, Kotler, Cunningham, Mitchell and Buchwitz

Chapter TwelveIntegrated Marketing

Communications


Looking Ahead• Explain why it is important for organizations to

integrate their marketing communications.• Describe and discuss the major decisions involved

in developing an advertising program.• List the major marketing communications goals

achieved through sales promotions.• List and describe the steps in the personal selling

process.• Discuss the major forms of direct response

marketing.• Explain how companies use public relations to

communicate with their publics.


Marketing Communications Mix• Advertising.

– Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.

• Sales Promotion.– Short-term incentives to encourage the

purchase or sale of a product or service.


Marketing Communications Mix• Public relations.

– Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavourable rumors, stories and events.

• Personal selling.– Personal presentation by the firm’s sales

force for the purpose of making sales and building customer relationships.


Marketing Communication Mix

• Direct Marketing.– Direct connections with carefully targeted

individual consumers to both obtain an immediate response and cultivate lasting customer relationships—the use of telephone, mail, fax, e-mail, the Internet and other tools to communicate directly with specific consumers.


The Changing Environment

• Two factors are changing the face of today’s marketing communications:– Vast improvements in information

technology are speeding the movement toward segmented marketing

– As mass markets have fragmented, marketers are shifting away from mass marketing.


Integrated Communications

• Response to fragmented mass markets and new technologies.

• Allows promotions to be more targeted.

• Integrated means “fits together.”– Message is consistent across all channels.– Generate leverage through repetition and

multiple sources with the same message.

• Promotional mix must be coordinated with other marketing mix elements.


The Need for IMC• Using IMC, the company carefully

integrates and coordinates its many communication channels to deliver a clear, consistent and compelling message about the organization and its brands.


Marketing Agencies• Nature of marketing agencies is

changing.• Past habit was to have different

agencies. working on different promotional elements.– Result was more ineffective than an IMC

approach.

• Today’s agencies are striving to provide IMC strategies and services.


IMC Process• Managing the customer relationship

over time.– Start with audit.– Assess the influence of each promotional

tool on the target market at each stage of the buying process.

– Blend all elements into an integrated mix.– Take into consideration product, distribution

and price.


Promotional Strategies• Push strategy:

– Promotional effort to channel members to stock, promote products to consumers.

– Personal selling and trade promotion-driven.

• Pull strategy: – Promotional effort to appeal directly to

consumers. – Advertising and sales promotion-driven.


Setting the Advertising Budget• Affordable.

– Based on what the company thinks it can afford.

• Percentage-of-sales.– Based on a percentage of current or forecasted

sales.

• Competitive-parity.– Set budget to match competitors.

• Objective-and-task. – Set objectives, determine tasks to achieve

objectives, sum of task costs equals budget.


Advertising• Reach large masses of geographically

dispersed.• Allows for repetition and targeting of

audience.• Builds awareness, image, positioning.• Provides wide artistic possibilities.• Can be expensive, impersonal, one-way. • Media fragmentation makes finding large

audience difficult.


Setting Advertising Objectives• An advertising objective is a specific

communication task to be accomplished with a specific target audience during a specific period of time.

• Classified by purpose:– Inform.– Persuade.– Compare.– Remind.


Developing Advertising Strategy

• Whether advertising should be an element in an IMC campaign.

• If yes, then strategy consists of two major elements:– Creating advertising messages.– Selecting advertising media.


The Message Strategy• Need a good message to communicate.

• Break through advertising clutter.

• Media proliferation has made attracting attention very difficult for advertisers.

• Identify customer benefits related to product’s positioning.

• Need a creative concept, or “big idea” to express that message.


Message Execution

• Typical approaches:

– Slice of life.

– Lifestyle.

– Fantasy.

– Mood or image.

– Musical.

– Personality symbol.

– Technical expertise.

– Scientific evidence.

– Testimonial evidence or endorsement.


Selecting Advertising Media

• Reach.– Percentage of people exposed to ad.

• Frequency.– Number of times a person is exposed to ad.

• Media impact.– The qualitative value of a message

exposure through a given medium.


Choosing Media Type• Newspapers, magazines, television, radio,

outdoors, direct mail, online.• Factors to consider:

– Media habits of target consumers.– Nature of the product.– Type of message.– Cost.

• Media vehicles-- specific media within each general media type.

• Media timing – schedules, seasons, patterns.


Evaluating Advertising• Ultimate test is whether sales have

increased.• Measure before and after an ad

campaign to measure results.• Online advertising the easiest to measure

based on conversion rates and the ability to prompt immediate calls to action.


International Advertising• Think globally, but act locally.• Consider language, cultural differences.• Media costs and availability can vary.


Sales Promotion• Coupons, contests, premiums,

incentives.• Used to attract attention. • Provide incentive for trial or purchase. • Generates results now versus later.• Effectiveness easier to track than

advertising.• May detract from brand equity and

loyalty.


Sales Promotion Objectives

• Consumer: increase short-term sales or help build long-term market share.

• Trade: get retailers to:– carry new items and more inventory.– advertise products.– give products more shelf space.– buy ahead.


Personal Selling• Personal, flexible, two-way

communication, provides direct feedback.• Builds preference, conviction, action.• Suited to complex, higher priced

products.• Basis for building a buyer relationship. • Most expensive on a per contact basis.• Requires long-term commitment and

ongoing management.


Sales Force Organization

• Territorial – each person is assigned a geographic territory.

• Product – salespeople specialize in selling a particular product.

• Customer – salespeople specialize in selling to particular types of customers.

• Outside – salespeople work in the field.

• Inside – salespeople sell via phone or email.


The Personal Selling Process

• Prospecting.– Identify qualified potential customers.

• Pre-approach.– Learn as much as possible about customer first.

• Approach.– Meet the customer for the first time.

• Presentation.– Tell the “product story” to the buyer, highlighting

customer benefits.


The Personal Selling Process

• Handling objections.– Seek out, clarify and overcome customer

objections to buying.

• Closing.– The salesperson asks the customer for an order.

• Follow-up.– The salesperson follows up after the sale to ensure

customer satisfaction and repeat business.


Direct Response• Direct connections with carefully

targeted individual consumers.

• Immediate and interactive.

• Cultivate lasting customer relationships.

• Can supplement to existing channels.

• Fastest growing form of marketing.

• Low-cost and efficient.


Database Marketing

• An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic and behavioural data.

• Allows marketing messages to be fine-tuned to specific groups of people.


Telemarketing

• Using the telephone to connect directly.

• Used in both consumer and B2B markets.

• Can be outbound or inbound calls.

• Used for both sales and customer service.


Direct Mail Marketing

• Involves sending an offer, announcement, reminder or other item to a person at a particular address.

• Permits high target-market selectivity.

• Personal and flexible.

• Easy to measure results.


Catalogue Marketing

• Direct marketing through print, video or electronic catalogues that are mailed directly.

• With the Internet, more and more catalogues going electronic.

• Print catalogues still the primary medium.

• Harder to attract new customers with Internet catalogues.


Direct-Response TV Marketing

• Television spots that persuasively describe a product and give customers a toll-free number for ordering.– Infomercials.– The Shopping Channel.– Kiosks.


Public Policy and Ethics

• Key issues include:– Misleading consumers including deception

and fraud.– Taking advantage of impulse buyers, those

addicted to TV and unsophisticated buyers.– Privacy and protection of personal

information.– Invasion of privacy at home and the “do not

call” registry.


Public Relations

• Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavourable rumors, stories and events.


Public Relations• News stories, features, press

conferences, annual reports, corporate website.

• Seen as more believable than advertising messages.

• More cost efficient.

• Can be difficult to control.

• Can be proactive and reactive.


Public Relations Functions

• Press relations – get attention of media.

• Product publicity – publicizing new products.

• Public affairs – manage national or local community relations.

• Lobbying – manage relations with legislators and officials.


Public Relations Functions

• Investor relations – manage relations with shareholders and financial community.

• Development – fund raising for non-profits.

• Crisis management – manage reaction to sudden, bad publicity through problems with products, employees or the company.


Public Relations Tools

• News.

• Speeches.

• Special events.

• Buzz marketing.

• Mobile marketing.

• Written materials.

• Audiovisual materials.

• Corporate identity materials.

• Public service activities.

• Company website.


Looking Back• Explain why it is important for organizations to

integrate their marketing communications.• Describe and discuss the major decisions involved

in developing an advertising program.• List the major marketing communications goals

achieved through sales promotions.• List and describe the steps in the personal selling

process.• Discuss the major forms of direct response

marketing.• Explain how companies use public relations to

communicate with their publics.

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