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nIntegrated Marketing Communications: Advertising,

Sales Promotion, and Public Relations

•Chapter Thirteen•Lecture Slides

–Express Version

•Course•Professor•Date

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nLooking Ahead

• After studying this chapter you should be able to:

• Discuss the process and advantages of integrated marketing communications

• Define the five promotional tools and discuss the factors that must be considered in shaping the overall promotion mix

• Describe and discuss the major decisions involved in developing an advertising program

• Explain how sales promotion campaigns are developed and implemented

• Explain how companies use public relations to communicate their publics

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nIntegrated Marketing Communications

• Marketing communications (promotion) mix– Advertising– Sales promotion– Public relations– Personal selling– Direct marketing

• The purpose is to communicate• 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

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nPromotional Tools

• Advertising– Reach large masses of geographically dispersed– Allows for repetition and targeting of audience– Useful for generating awareness, image building and

positioning– Medium provides for wide artistic possibilities– Can be expensive, impersonal, only one-way

communication– Media fragmentation makes finding large audience

difficult

• Personal selling– More personal, flexible, two-way communication, and

provides direct feedback– Useful for building preference, conviction, and action– The basis for building a relationship with buyers

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nPromotional Tools (continued)

• Personal selling– Most expensive on a per contact basis– Requires long-term commitment and ongoing

management

• Sales promotion– Coupons, contests, premiums, and 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

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nPromotional Tools (continued)

• Public relations– News stories, features, press conferences, annual

reports, corporate website– Seen as more believable than advertising messages– More cost efficient way to get message across– Can be difficult to control– Can be proactive and reactive

• Direct marketing– Messages directed to a specific person– Is more immediate– Customized– Can be interactive– Suffers from “junk mail” stereotype– Spam alert and blocking software

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nPromotional Strategies

• Push strategy: – Promotional effort to channel

members to stock, promote the products to the next level

– Uses personal selling and trade advertising/promotion

• Pull strategy: – Promotional effort to appeal

directly to customers, who then demand the product from channel members

– Uses advertising and sales promotion to generate brand awareness and preference

Consumers

WholesalersRetailers

Manufacturers

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Campaign evaluationCommunication

impactSales impact

Message decisionsMessage strategy

Message execution

Budget decisionsAffordable approach

Percent of salesCompetitive parityObjective and task

Objectives settingCommunication

objectivesSales

objectives

Media decisionsReach, frequency, impact

Major media typesSpecific media vehicles

Media timing

Major AdvertisingDecisions

Figure 13-3

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nMessage Execution

• Slice of life• Lifestyle• Fantasy• Mood or image• Musical• Personality symbol• Technical expertise• Scientific evidence• Testimonial or endorsement

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nSelecting Media Alternatives

• Decide on reach, frequency, and impact• Choose from media types

– Newspapers– Television– Direct mail– Radio– Magazines– Outdoor– Online

• Select specific media vehicles• Media timing

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nSales Promotional Campaigns

• Consumer promotion– Samples– Coupons, refunds/rebates– Price packs– Advertising specialties– Patronage rewards, contests, sweepstakes– Point of purchase materials

• Trade promotion– Discounts, allowances– Free goods– Push money, cooperative advertising programs

• Business promotion– Conventions, trade shows– Sales contests, incentive programs

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nPublic Relations

• Building good relations with publics– Obtaining favourable publicity– Building corporate image– Dealing with rumours, negative publicity

• Functions– Press relations– Product publicity– Public affairs– Lobbying– Investor relations and development

• Tools– Special events, press releases, written materials,

website

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nLooking Back

• Integrated marketing communications

• Promotional tools• Major advertising

decisions• Sales promotion• Public relations