1 Lamb, Hair, McDaniel CHAPTER 16 Integrated Marketing Communications 2010-2011.

1

Lamb, Hair, McDaniel

CHAPTER 16

Integrated Marketing Communications

2010-2011

2

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

3

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

4

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

5

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

6

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

7

Competitive Advantage

Unique featuresUnique features

Excellent serviceExcellent service

Low pricesLow prices

Rapid deliveryRapid delivery

High product qualityHigh product quality

LO1

8

The Role of Promotion in the Marketing Mix

LO1

9

Discuss the elements of the

promotional mix

The Promotional MixThe Promotional Mix

LO2

10

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

11

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

12

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

13

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

14

Public Relations

Helps an organization communicate with customers, suppliers, stockholders, government officials, employees, and the community.

Public

RelationsPublic

Relations

LO2

15

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

16

Sales Promotion

Marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness.

Sales

PromotionSales

Promotion

LO2

17

Sales Promotion

EndConsumers

EndConsumers

Trade Customers

Trade Customers

CompanyEmployees Company

Employees

Free samplesFree samples

ContestsContests

PremiumsPremiums

Trade ShowsTrade Shows

Vacation GiveawaysVacation Giveaways

CouponsCoupons

LO2

18

Personal Selling

Planned presentation to one or more prospective buyers for the purpose of making a sale.

Personal

SellingPersonal

Selling

LO2

19

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

20

Elements of the Promotional Mix

LO2

21

Describe the communication

process

Marketing CommunicationMarketing Communication

LO3

22

The process by which meanings

are exchanged or shared through

a common set of symbols.

CommunicationCommunication

Communication

LO3

23

Categories of CommunicationCategories of

Communication

InterpersonalCommunicationInterpersonal

CommunicationMass

CommunicationMass

Communication

Marketing Communication

LO3

24

As Senders As Receivers

Develop messages

Adapt messages

Spot new communication opportunities

Inform

Persuade

Remind

Marketing Communication

LO3

25

NoiseNoise

SenderSender EncodingMessage

EncodingMessage

FeedbackChannel

FeedbackChannel

MessageChannel

MessageChannel

DecodingMessage

DecodingMessage ReceiverReceiver

The Communication Process

LO3

26

Characteristics of the Elementsin the Promotional Mix

LO3

27

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


LO3

28

Communication Mode


Feedback Amount

Feedback Speed





Message Flexibility

Public RelationsUsually indirect, impersonal

Moderate to low

Little

Delayed

One-way

No

No

Usually fast

Usually no direct control

LO3


29

Communication Mode


Feedback Amount

Feedback Speed





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


30

Communication Mode


Feedback Amount

Feedback Speed





Message Flexibility

Personal SellingDirect and face-to-face

High

Much

Immediate

Two-way

Yes

Yes

Slow

Tailored to prospect

LO3


31

Web 2.0

• Blogs (online journals)

• Podcasting (online radio)

• Vodcasts (online videos)

• Social Networks (Facebook, MySpace, Twitter)

LO3

32

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

33

The Communication Process

Message tobe conveyed

Encodemessage

Receivemessage

Transmitmessage

Decodemessage

Message thatwas understood

Sender Feedback channel Receiver

Message channelLO3

34

Explain the goals and

tasks of promotion

The Goals and Tasks The Goals and Tasks of Promotionof Promotion

LO4

35

Goals and Tasks of Promotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

LO4

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InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity

LO4

37


Increase awareness

Explain how product works

Suggest new uses

Build company image

Informative Promotion

LO4

38


Encourage brand switching

Change customers’ perceptions of product attributes

Influence immediate buying decision

Persuade customers to call

Persuasive Promotion

LO4

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Remind customers that product may be needed

Remind customers where to buy product

Maintain customer awareness

Reminder Promotion

LO4

40

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

41

Discuss the AIDA concept and its

relationship to the promotional mix

Promotional Goals Promotional Goals and the AIDA Conceptand the AIDA Concept

LO5

42

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

43

The AIDA Concept

Action

Desire

Interest

Attention Cognitive (thinking)

Affective (feeling)

Conative (doing)

LO5

44

The AIDA Concept

LO5

45

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

47

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

48

Target Market Characteristics

For… Widely scattered

market

Informed buyers

Brand-loyal repeat purchasers

AdvertisingAdvertising

Sales PromotionSales Promotion

Less Personal SellingLess Personal Selling

LO6

49

Type of Buying Decision

Advertising

Sales PromotionRoutineRoutine

Personal Selling

Neither Routinenor Complex

Neither Routinenor Complex

Advertising

Public Relations

Print AdvertisingComplexComplex

LO6

50

Available Funds

Trade-offs with funds availableNumber of people in target marketQuality of communication neededRelative costs of promotional

elements

LO6

51

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

52

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

53

Discuss the concept of integrated marketing

communications

Integrated Marketing Integrated Marketing CommunicationsCommunications

LO7

54


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

55

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

56


LO7

1 Lamb, Hair, McDaniel CHAPTER 16 Integrated Marketing Communications 2010-2011.

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Transcript of 1 Lamb, Hair, McDaniel CHAPTER 16 Integrated Marketing Communications 2010-2011.