Post on 21-Dec-2015
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Lamb, Hair, McDaniel
CHAPTER 16
Integrated Marketing Communications
2010-2011
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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 4 Explain the goal and tasks of promotion
Learning OutcomesLearning Outcomes
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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
Learning OutcomesLearning Outcomes
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Discuss the role of promotion in the
marketing mix
The Role of Promotion in The Role of Promotion in the Marketing Mixthe Marketing Mix
LO1
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The Role of Promotion
A plan for the optimal use of
the elements of promotion: Advertising Public Relations Sales Promotion Personal Selling
PromotionalStrategy
PromotionalStrategy
LO1
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The Role of Promotion in the Marketing Mix
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mix• Product• Place• Promotion• Price
Marketing Mix• Product• Place• Promotion• Price
Target MarketTarget Market
Promotional Mix
• Advertising• Public Relations• Sales Promotion• Personal Selling
Promotion Plan
Promotional Mix
• Advertising• Public Relations• Sales Promotion• Personal Selling
Promotion Plan
LO1
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Competitive Advantage
Unique featuresUnique features
Excellent serviceExcellent service
Low pricesLow prices
Rapid deliveryRapid delivery
High product qualityHigh product quality
LO1
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The Role of Promotion in the Marketing Mix
LO1
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Discuss the elements of the
promotional mix
The Promotional MixThe Promotional Mix
LO2
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The Promotional Mix
Combination of promotiontools used to reach the target market and fulfill theorganization’s overall goals.
Advertising Public Relations Sales Promotion Personal Selling
Promotional
MixPromotional
Mix
LO2
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The Promotional Mix
Most commonly distributed Most commonly distributed by traditional media, though by traditional media, though increasingly through non-increasingly through non-traditional media, such as traditional media, such as Web sites, e-mail, and Web sites, e-mail, and blogs.blogs.
AdvertisingAdvertising
LO2
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Advertising Media
Traditional Advertising Media
NewAdvertising
Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Banner ads Viral marketing E- mail Interactive videoLO2
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AdvertisingAdvantages Disadvantages
Reach large number of people
Low cost per contact
Can be micro-targeted
Total cost is high
National reach is expensive for small companies
LO2
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Public Relations
Helps an organization communicate with customers, suppliers, stockholders, government officials, employees, and the community.
Public
RelationsPublic
Relations
LO2
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The Function of Public Relations
Maintain a positive image Educate the public about the
company’s objectives Introduce new products Support the sales effort Generate favorable publicity
LO2
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Sales Promotion
Marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness.
Sales
PromotionSales
Promotion
LO2
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Sales Promotion
EndConsumers
EndConsumers
Trade Customers
Trade Customers
CompanyEmployees Company
Employees
Free samplesFree samples
ContestsContests
PremiumsPremiums
Trade ShowsTrade Shows
Vacation GiveawaysVacation Giveaways
CouponsCoupons
LO2
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Personal Selling
Planned presentation to one or more prospective buyers for the purpose of making a sale.
Personal
SellingPersonal
Selling
LO2
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Personal Selling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Attempts to persuade the buyer into a specific point of view. Win-lose outcome.
Long-term relationships, create a win-win outcome
LO2
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Elements of the Promotional Mix
LO2
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Describe the communication
process
Marketing CommunicationMarketing Communication
LO3
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The process by which meanings
are exchanged or shared through
a common set of symbols.
CommunicationCommunication
Communication
LO3
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Categories of CommunicationCategories of
Communication
InterpersonalCommunicationInterpersonal
CommunicationMass
CommunicationMass
Communication
Marketing Communication
LO3
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As Senders As Receivers
Develop messages
Adapt messages
Spot new communication opportunities
Inform
Persuade
Remind
Marketing Communication
LO3
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NoiseNoise
SenderSender EncodingMessage
EncodingMessage
FeedbackChannel
FeedbackChannel
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
The Communication Process
LO3
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Characteristics of the Elementsin the Promotional Mix
LO3
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Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
AdvertisingIndirect and impersonal
Low
Little
Delayed
One-way
Yes
Yes
Fast
Same message to all audiences
Characteristics of the Elementsin the Promotional Mix
LO3
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Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Public RelationsUsually indirect, impersonal
Moderate to low
Little
Delayed
One-way
No
No
Usually fast
Usually no direct control
LO3
Characteristics of the Elementsin the Promotional Mix
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Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Sales PromotionUsually indirect and impersonal
Moderate to low
Little to moderate
Varies
Mostly one-way
Yes
Yes
Fast
Same message to varied target
LO3
Characteristics of the Elementsin the Promotional Mix
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Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Personal SellingDirect and face-to-face
High
Much
Immediate
Two-way
Yes
Yes
Slow
Tailored to prospect
LO3
Characteristics of the Elementsin the Promotional Mix
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Web 2.0
• Blogs (online journals)
• Podcasting (online radio)
• Vodcasts (online videos)
• Social Networks (Facebook, MySpace, Twitter)
LO3
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Blogging
Sponsored by a company or
one of its brands and
maintained by one or more of
the company’s employees.
Sponsored by a company or
one of its brands and
maintained by one or more of
the company’s employees.
NoncorporateBlogs
NoncorporateBlogs
CorporateBlogs
CorporateBlogs
Independent and not
associated with the
marketing efforts of any
particular company or brand.
Independent and not
associated with the
marketing efforts of any
particular company or brand.
LO3
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The Communication Process
Message tobe conveyed
Encodemessage
Receivemessage
Transmitmessage
Decodemessage
Message thatwas understood
Sender Feedback channel Receiver
Message channelLO3
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Explain the goals and
tasks of promotion
The Goals and Tasks The Goals and Tasks of Promotionof Promotion
LO4
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Goals and Tasks of Promotion
InformingInforming RemindingReminding
PersuadingPersuading
TargetAudienceTarget
Audience
LO4
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Goals and Tasks of Promotion
InformingInforming RemindingReminding
PersuadingPersuading
TargetAudienceTarget
Audience
PLC StagesPLC Stages:Introduction Early Growth
PLC Stages:PLC Stages:Growth Maturity
PLC Stages:PLC Stages:Maturity
LO4
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Goals and Tasks of Promotion
Increase awareness
Explain how product works
Suggest new uses
Build company image
Informative Promotion
LO4
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Goals and Tasks of Promotion
Encourage brand switching
Change customers’ perceptions of product attributes
Influence immediate buying decision
Persuade customers to call
Persuasive Promotion
LO4
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Goals and Tasks of Promotion
Remind customers that product may be needed
Remind customers where to buy product
Maintain customer awareness
Reminder Promotion
LO4
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Barbie in China
With Barbie’s U.S. sales diminishing, Mattel moved into China in a grand way. They opened a six-story Barbie life-style store in Shanghai, which includes a spa, café, bar, and racks of Barbie Clothing.
Mattel is aiming Barbie toward a new audience: club-age young women. By introducing Barbie into a culture unfamiliar with her, Mattel has the opportunity to expand Barbie’s appeal.
Source: Rein, Shaun. “Barbie Goes to China,” Forbes.com, March 9, 2009.
LO4
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Discuss the AIDA concept and its
relationship to the promotional mix
Promotional Goals Promotional Goals and the AIDA Conceptand the AIDA Concept
LO5
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The AIDA Concept
Model that outlines the process for
achieving promotional goals in
terms of stages of consumer
involvement with the message.
AttentionInterestDesireAction
AttentionInterestDesireAction
AIDA ConceptAIDA
Concept
LO5
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The AIDA Concept
Action
Desire
Interest
Attention Cognitive (thinking)
Affective (feeling)
Conative (doing)
LO5
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The AIDA Concept
LO5
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Describe the factors that affect the
promotional mix
Factors Affecting the Factors Affecting the Promotional MixPromotional Mix
LO6
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Factors Affecting the Choice of Promotional Mix
Nature of the productNature of the product
Stage in PLCStage in PLC
Target market factorsTarget market factors
Type of buying decisionType of buying decision
Promotion fundsPromotion funds
Push or pull strategyPush or pull strategy
LO6
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Stage in the Product Life Cycle
Light Advertising; pre-introductionpublicity
Heavy use of Advertising;PR forawareness;sales promotionfor trial
AD/PRdecrease;limited sales promotion; personal selling fordistribution
Ads decrease;sales promotion;personal selling;reminder & persuasive
Advertising, PR, brandloyalty;personal selling fordistribution
IntroductionIntroduction GrowthGrowth
MaturityMaturityDeclineDecline
Sal
es (
$)S
ales
($)
TimeTime
LO6
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Target Market Characteristics
For… Widely scattered
market
Informed buyers
Brand-loyal repeat purchasers
AdvertisingAdvertising
Sales PromotionSales Promotion
Less Personal SellingLess Personal Selling
LO6
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Type of Buying Decision
Advertising
Sales PromotionRoutineRoutine
Personal Selling
Neither Routinenor Complex
Neither Routinenor Complex
Advertising
Public Relations
Print AdvertisingComplexComplex
LO6
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Available Funds
Trade-offs with funds availableNumber of people in target marketQuality of communication neededRelative costs of promotional
elements
LO6
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Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
LO6
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Factors Affecting Promotional Mix
PromotionalMix
% Advertising% Public Relations% Sales Promotion% Personal Selling
Nature ofthe product
Productlife
cycle
Targetmarket
character-istics
Type ofbuying decision
Fundsavailable
Push or pull
strategy
LO6
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Discuss the concept of integrated marketing
communications
Integrated Marketing Integrated Marketing CommunicationsCommunications
LO7
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Integrated Marketing Communications
IntegratedMarketing
Communications
IntegratedMarketing
Communications
The careful coordination of all
promotional messages to assure
the consistency of messages at
every contact point where a
company meets the consumer.
LO7
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IMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques that generate immediate response
LO7
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Integrated Marketing Communications
LO7