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Principles of Marketing

Chapter 13- Advertising, Integrated Marketing Communications, and the

Changing Media Landscape

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Integrated Marketing Communications (IMC)

• Defined: Approach designed to deliver one consistent message to buyers across an organization’s promotions– The message can be slightly different for different

audiences, but the overall takeaway is the same.

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IMC

• Out-of-home advertising- Billboards and movable promotions that are displayed in a broad range of public spaces including tray tables on airplanes, inside of subways, trains, buses, and bathroom stalls.

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Promotion Mix

• Defined: Communication tools that may include advertising, sales promotions, PR, personal selling, and direct marketing.

• Advertising defined: A message that is paid and sent to large groups of the population at one time with and identified organization or brand being promoted.

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Personal Selling

• Interactive, paid approach to marketing that involves a buyer and a seller. – Buying a car, applying for a job, selling your

product to a major retailer

• Usage depends on the medium (hard to sell refrigerators by skype), but generally a vital part of a sale

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Public Relations (PR)

• Positive image creation and management. – Press releases, publicity, product placement, and

sponsorships.

• Generally controlled in-house or through a firm that specializes in PR– Some firms specialize in certain types of specific

PR• Celebrity scandal, etc.

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Sales Promotion

• Coupons, contests, games, rebates, etc. • Generally designed to have some sort of quick

action take place (coupons have valid dates, rebates have a timeframe for redemption, etc.)

• Depending on the firm strategy, could be useful or not.

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Direct Marketing

• Delivering personalized promotional materials directly to individual consumers.–Mail, catalog, internet, email, telephone, etc.

• Many are off-put by direct marketing, but still a very big part of marketing– Generally pretty easy and cheap to do.

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Telemarketing

• Direct marketing by home. • Depending on the product and demographic, it

can be very useful. – Charities and service firms have decent success– Generally want to stick to something that has a

direct tangible benefit

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Direct Mail

• Direct marketing through the mail• Efficient since it is mass marketing, but can be

personalized to a degree (name on the mailer)• Cheap and easy to advertise in this medium

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Direct Response Advertising

• Direct marketing that includes an offer or call to action– “Call now…”– “Enter your email to…”

• More human stuff, once we are “involved” with something, it becomes a part of us

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Promotion Mix

• The makeup of the marketing campaign and how all the promotional components fit together.

• Comprised of several factors:

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Promotion Mix

• Budget- Often times is the most critical component

• How many people do we need to expose the message to (reach) and how often will they be exposed (frequency).

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Promotion Mix

• Stage in PLC– Introduction stage requires (more/less)

advertising?–Would it be a good idea for a major promotional

push at the end of a products life?

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Promotion Mix

• Type of product/purchase decision–Would you buy highly technical devices over the

phone?– Promoting an experiential good versus a routine

good is completely different

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Promotion Mix

• Target market characteristics and readiness to purchase– Early adopters versus late adopters– Each have their own motivations

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Promotion Mix

• Consumer’s preferences for various media–Mostly based on the individual products, some

media just work better than others for certain products.

–Most large firms test and retest to find the most efficient media for their goods

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Promotion Mix

• Regulation, competitors, and environmental factors– Can’t advertise cigarettes at al, alcohol has certain

limitations within distances of other things, etc. – Economy will always play a role

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Promotion Mix

• Media availability– Popular spots sell quickly and are expensive– Also, external factors can play a role if something

drastic happens (major news event)

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Promotion Mix

• Push versus pull strategy– Push is “pushed” through marketing channels to

consumers– Pull is promoting to final customers

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Communication Process

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Communication Process

• Encode- translating the message• Decode- interpretation of the message• Interference- noise that distorts the message• Feedback- Information transmitted back to

sender

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Perceptual Process

• The way in which people select to be exposed to information, pay attention to it, interpret it, and retain it.

• How many of you have read a paragraph, page, etc, then realized you didn’t really “read” any of it? Ever listened to a friend talk, then realize you didn’t “hear” a word?– Same thing in life, but with advertising.

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Message Strategies

• Need to know what the Unique Selling Position (USP) is for the product.

• This is completely unique to the firm/product/etc–Most USPs are hard to transfer meaning across• More saving, more doing. Ace Hardware

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Promotion Objectives

• What are we actually doing with the advertisement?– New product awareness– Promotional push– Demand manipulation– Etc.

• Primary demand is demand for a product category• Selective demand is for a specific brand• AIDA model- Attention, Interest, Desire, Action

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Message Characteristics

• Humor, fear, call-to-action, etc. are all possible types of characteristics than can shape a message. What is chosen is again specific to the campaign.

• Open-ended message- A promotional message that allows the consumer to draw his or her own conclusions

• Closed-ended message- Message draws a logical conclusion

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Message Characteristics

• Use of a jingle• Use of a character• What components will be used will always

vary