Integrated Marketing Communications

16 Integrated Marketing Communications

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LO 1 Discuss the role of promotion in the marketing mix

LO 2 Discuss the elements of the promotional mix

LO 3 Describe the communication process

LO 5 Discuss the AIDA concept and its relationship to the promotional mix

LO 6 Describe the factors that affect the promotional mix

LO 7 Discuss the concept of integrated marketing communications

Discuss the role of promotion in the marketing mix

PromotionalPromotional StrategyStrategy

A plan for the optimal use of the elements of promotion:  Advertising  Public Relations  Personal Selling  Sales Promotion

HighHigh productproduct qualityquality

RapidRapid deliverydelivery

LowLow pricesprices

ExcellentExcellent serviceservice

UniqueUnique featuresfeatures

Discuss the elements of the promotional mix

naall moottiioon PPrroom MMiixx Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. Includes:

 Advertising  Public Relations  Personal Selling  Sales Promotion

Most commonly distributed ingg Most commonly distributed verrttiissin AAddve byby traditionaltraditional media,media, thoughthough increasinglyincreasingly throughthrough non-non- traditionaltraditional media,media, suchsuch asas WebWeb sites,sites, e-mail,e-mail, blogs,blogs, andand interactiveinteractive videovideo kioskskiosks inin mallsmalls andand supermarkets.supermarkets.

Traditional Advertising Media

 Television New  Radio Advertising Media  Newspapers  Magazines  Books  Internet  Direct mail  Banner ads  Billboards  Viral marketing  Transit cards  E- mail  Interactive video Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 11 Advertising

Advantages Disadvantages

 Reach large number  Total cost is high of people  National reach is  Low cost per expensive for small contact companies

 Can be micro- targeted

licc PPuubbli nss Helps an organization elaattiioon RRel communicate with customers, suppliers, stockholders, government officials, employees, and the community.

 Main tain a  positiv Educ e imag ate the e com publi pany’ c abou  s obje t the Int ctives roduce new  S produc upport ts the sa  G les ef enera fort te favo rable p ublicity

es SSaalles tionn Marketing activities— rommootio PPro other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness.

FreeFree samplessamples

ContestsContests EndEnd ConsumersConsumers PremiumsPremiums TradeTrade TradeTrade ShowsShows CustomersCustomers Company VacationVacation GiveawaysGiveaways Company EmployeesEmployees CouponsCoupons

naall Perrssoon Pe g Planned presentation to Selllliinng Se one or more prospective buyers for the purpose of making a sale.

Attempts to persuade the TraditionalTraditional buyer into a specific point SellingSelling of view. Win-lose outcome.

Long-term relationships, RelationshipRelationship create a win-win outcome SellingSelling

Describe the communication process

Communication is… the process by which meanings are exchanged or shared through a common set of symbols.

CategoriesCategories ofof CommunicationCommunication

InterpersonalInterpersonal MassMass CommunicationCommunication CommunicationCommunication

As Senders As Receivers

. Inform . Develop messages

. Persuade . Adapt messages

. Remind . Spot new communication opportunities

Advertising Communication Mode Indirect and impersonal Communication Control Low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Fast Message Flexibility Same message to all audiences

Public Relations Communication Mode Usually indirect, impersonal Communication Control Moderate to low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control No Sponsor Identification No Reaching Large Audience Usually fast Message Flexibility Usually no direct control

Sales Promotion Communication Mode Usually indirect and impersonal Communication Control Moderate to low Feedback Amount Little to moderate Feedback Speed Varies Message Flow Direction Mostly one-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Fast Message Flexibility Same message to varied target

Personal Selling Communication Mode Direct and face-to-face Communication Control High Feedback Amount Much Feedback Speed Immediate Message Flow Direction Two-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Slow Message Flexibility Tailored to prospect

Web 2.0 tools include: • Blogs (online journals) • Podcasting (online radio) • Vodcasts (online videos) • Social Networks (Facebook, MySpace)

SponsoredSponsored by by a a company company or or CorporateCorporate oneone of of its its brands brands and and BlogsBlogs maintainedmaintained by by one one or or more more of of thethe company’s company’s employees. employees.

IndependentIndependent and and not not Consumer-Consumer- associatedassociated with with the the GeneratedGenerated marketingmarketing efforts efforts of of any any BlogsBlogs particularparticular company company or or brand. brand.

Explain the goals and

tasks of promotion

InformingInforming RemindingReminding

TargetTarget AudienceAudience

PersuadingPersuading

InformingInforming RemindingReminding

PLC Stages: PLC Stages: Introduction Maturity Early Growth TargetTarget AudienceAudience

PLC Stages: Growth Maturity PersuadingPersuading

Informative Promotion e h . Increase awareness t

. Explain how product works

d . Suggest new uses n k o . Build company image o y e o B B

Persuasive Promotion e h t . Encourage brand switching

. Change customers’ perceptions of

d product attributes n . k Influence immediate buying decision o o y . e o Persuade customers to call B B

Reminder Promotion e h t . Remind customers that product may be needed

. d Remind customers where to buy product n k o . o

y Maintain customer awareness e o B B

Discuss the AIDA concept and its relationship to the promotional mix

AIDAAIDA Model that outlines the process for ConceptConcept achieving promotional goals in terms of stages of consumer involvement with the message. AAttentionttention IInterestnterest DDesireesire AActionction

Action

Desire Conative (doing)

Interest Affective (feeling)

Attention Cognitive (thinking)

Describe the factors that affect the promotional mix

NatureNature ofof thethe productproduct

StageStage inin PLCPLC

TargetTarget marketmarket characteristicscharacteristics

TypeType ofof buyingbuying decisiondecision

PromotionPromotion fundsfunds

PushPush oror pullpull strategystrategy

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

Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 43 Target Market Characteristics For… AdvertisingAdvertising  Widely scattered market Sales Promotion Sales Promotion  Informed buyers  Brand-loyal repeat LessLess PersonalPersonal SellingSelling purchasers

Advertising RoutineRoutine Sales Promotion

Advertising NeitherNeither RoutineRoutine nor Complex nor Complex Public Relations

Personal Selling ComplexComplex Print Advertising

Trade-offs with funds available Number of people in target market Quality of communication needed Relative costs of promotional elements

Discuss the concept of integrated marketing communications

IntegratedIntegrated MarketingMarketing CommunicationsCommunications

The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.

Proliferation of thousands of media choices

Fragmentation of the mass market

Slash of advertising spending in favor of promotional techniques that generate immediate response

Vans – Integrated Marketing

Communication e

h This video examines the carefully planned strategy

t that Vans developed to create loyalty in a fickle

niche market. Describe Vans’ pyramid strategy. d How does it protect the brand? n k o o

y http://www.cengage.com/marketing/boo o e k_content/1439039429_lamb/company_cl

B B ips/ch16.html