Integrated Mk Communication

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15-1Copyright © 2001 by Harcourt, Inc. All rights reserved.

CHAPTER FIFTEENCHAPTER FIFTEEN

INTEGRATED MARKETINGINTEGRATED MARKETING

COMMUNICATIONSCOMMUNICATIONS

Text by Profs. Gene Boone & D!"# K$rt%

Multimedia Presentation by

Prof. Milton Pressley

The University of New Orleans


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CHAPTER OBECTI'ESCHAPTER OBECTI'ES• Relate the concept of integrated mareting

communications to the development of theoptimal promotional mi!

• "!plain the relationship of promotionalstrategy to the process of communication

• #ist the ob$ectives of promotion

• "!plain the concept of the promotional mi!and its relationship to the mareting mi!


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15-Copyright © 2001 by Harcourt, Inc. All rights reserved.

CHAPTER OBECTI'ESCHAPTER OBECTI'ES• %iscuss the role of sponsorships and direct

mareting in integrated maretingcommunications planning

• &dentify the primary determinants of apromotional mi!

• 'ontrast the two ma$or alternative promotionalstrategies

• 'ompare to the primary methods of developinga promotional budget

• %efend promotion against common publiccriticisms


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15-!Copyright © 2001 by Harcourt, Inc. All rights reserved.

" Promotion: #unction o# in#or$ing, persuading, and in#luencing the consu$er%s

purchase decision" Marketing Communications: trans$ission

#ro$ a sender to a receiver o# a $essagedealing &ith the buyer-seller relationship

C()ter O!er!"e*C()ter O!er!"e*


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Inte+rte# Mr,et"n+Inte+rte# Mr,et"n+

Co--$n"t"onsCo--$n"t"ons" Integrated marketing communications (IMC):

Coordination o# all pro$otional activities ' $edia

advertising, direct $ail, personal selling, sales pro$otion, and public relations ' to produce auni#ied custo$er-#ocused pro$otional $essage

" (uccess o# any I)C progra$ depends critically onidenti#ying the $e$bers o# an audience andunderstanding &hat they &ant

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15-Copyright © 2001 by Harcourt, Inc. All rights reserved.

Tb/e 01.02Tb/e 01.02 Re/t"n+ Pro-ot"on to t(e Co--$n"t"ons ProessRe/t"n+ Pro-ot"on to t(e Co--$n"t"ons Proess

THE COMMUNICATIONS PROCESSTHE COMMUNICATIONS PROCESS

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Copyright © 2001 by Harcourt, Inc. All rights reserved.

" An e##ective pro$otional $essage acco$plishesthree tass/

" It gains the receiver%s attention" It achieves understanding by both receiver and

sender

" It sti$ulates the receiver%s needs and suggestsan appropriate $ethod o# satis#ying the$

" he above tass are related to the AIDA conceptAttention-Interest-Desire-Action ' ane3planation o# the steps through &hich anindividual reaches a purchase decision

THE COMMUNICATIONS PROCESSTHE COMMUNICATIONS PROCESS


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G/ob/ D"ff"$/t"es 3"t( t(eG/ob/ D"ff"$/t"es 3"t( t(e

Co--$n"t"on ProessCo--$n"t"on Proess" In China: 6C%s slogan/ 76inger licin% good8

ca$e out as 79at your #ingers o##8

" Also in China: Coca-Cola had thousands o# signs$ade using the translation/ 7e-ou-e-la8" +epending on the dialect this $eans . . .

" 7:ite the &a3 tadpole,8 or" 76e$ale horse stu##ed &ith &a38

" In Taiwan: *epsi%s slogan, 7Co$e alive &ith the*epsi generation8 ca$e out as 7*epsi &ill bringyour ancestors bac #ro$ the dead8



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Ob4et"!es of Ob4et"!es of

" raditional #unction o# pro$otion &as

to in#or$ the $aret about theavailability o# a particular good orservice

" )areters still direct large portions o#

current pro$otional e##orts at providingin#or$ation

Pro!"#ePro!"#eInfor-t"onInfor-t"onPro-ot"onPro-ot"on

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" (o$e pro$otions are ai$ed at

increasing primary demand , the desire#or a general product category

" )ore pro$otions are ai$ed atincreasing selective demand , the desire

#or a speci#ic brand

InreseInreseDe-n#De-n#Pro-ot"onPro-ot"on

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" Product differentiation is a #re;uent

ob


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" *ro$otion can e3plain the greatero&nership utility o# a product to buyers, thereby accentuating its valueand


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" 6or the typical #ir$, sales #luctuations$ay result #ro$ cyclical, seasonal, orirregular de$and

" (tabili=ing these variations is o#ten an

ob


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15-1!Copyright © 2001 by Harcourt, Inc. All rights reserved.

T(e Pro-ot"on/ M"xT(e Pro-ot"on/ M"x

" Promotional mix: blend o# personalselling and

nonpersonal sellingincluding advertising,sales pro$otion, direct$areting, and public

relations designed toachieve pro$otionalob


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Non)erson/ Se//"n+Non)erson/ Se//"n+

(dvertising (dvertising" Advertising: paid,

nonpersonalco$$unication through

various $edia by a business #ir$, not-#or- pro#it organi=ation, orindividual identi#ied inthe $essage &ith the

hope o# in#or$ing or persuading $e$bers o#a particular audience


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" ales promotion: $areting activities other than personal selling, advertising, and publicity thatsti$ulates consu$er purchasing and dealere##ectiveness includes displays, trade sho&s,coupons, pre$iu$s, contests, productde$onstrations, and various nonrecurrent sellinge##orts

" Trade promotion: sales pro$otions ai$ed at$areting inter$ediaries rather than ulti$ateconsu$ers

)ales promotion)ales promotion


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" Direct marketing: directco$$unications otherthan personal sales

contact bet&een buyerand seller, designed togenerate sales,in#or$ation re;uests, or

store visits%irect mareting%irect mareting


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" Pu!lic relations: #ir$%sco$$unications andrelationships &ith itsvarious publics

" Pu!licit": sti$ulation o#de$and #or good, service,

place, idea, person, ororgani=ation by unpaid

place$ent o# co$$erciallysigni#icant ne&s or#avorable $edia

presentationsPublic relationsPublic relations


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Personal

Selling Advertising

Sales

Promotion

Direct

Marketing

Public

Relations

Permitsmeasurementofeffectiveness.

Elicits animmediateresponse.

Tailors themessage to fitthe customer.

Reaches alarge group ofpotentialconsumers fora relativelylow price perexposure.

Allows strictcontrol overthe finalmessage.

Can beadapted to

either massaudiences orspecificaudiencesegments.

Produces animmediateconsumerresponse.

Attractsattention andcreates productawareness.

Allows easymeasurementof results.

Provides short-term salesincreases.

Generatesanimmediateresponse.

Covers awideaudiencewithtargetedadvertising.

Allowscomplete,customized,

personalmessage.

Producesmeasurableresults.

Creates apositiveattitudetoward aproduct orcompany.

Enhancescredibilityof a productorcompany.

A d v a n t a g e s

Continued

on ne3t

slide . . .


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Co--$n"t"ons ProessCo--$n"t"ons Proess 7Cont"n$e#87Cont"n$e#8

PersonalSelling Advertising

SalesPromotion

DirectMarketing

PublicRelations

Relies almostexclusivelyupon the

ability of thesalesperson.

Involves highcost percontact.

Does notpermittotally

accuratemeasurement of results.

Usuallycannot closesales.

Isnonpersonal in nature.

Is difficulttodifferentiate fromcompetitor’s efforts.

Suffersfrom imageproblem.

Involves ahigh costper reader.

Depends onquality andaccuracy ofmailinglists.

May annoyconsumers.

May notpermitaccurate

measurement of effecton sales.

Involvesmuch effortdirected

towardnonmarketing-orientedgoals.

D i s a d v a n t a g e s


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SPONSORSHIPSSPONSORSHIPS

" ponsorship: provision o# #unds #or asporting or cultural event in e3change#or a direct association &ith the events?in e-co$$erce, a long-ter$ linage

bet&een a @eb site and a $areter " (ponsor I:) is

pro$inently#eatured on the(ydney2000 ly$pic@eb(ite


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Te/e-r,et"n+Te/e-r,et"n+" Telemarketing: pro$otional

presentation involving the useo# the telephone #or outboundcontacts by salespeople orinbound contacts initiated bycusto$ers &ho &ant to obtainin#or$ation and place orders

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E/etron" D"retE/etron" D"ret

Mr,et"n+ C(nne/sMr,et"n+ C(nne/s" @eb advertising is an i$portant

co$ponent o# electronic direct

$areting" 9-$ail direct $areting is anatural and easy e3tension o#traditional direct $ail $areting


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Nature of ProductNature of Product

)tage in P#')tage in P#'

PricePrice

*unds (vailable*unds (vailable

" 6actors that in#luence thee##ectiveness o# a

pro$otional to $i3/" Bature o# the $aret" Bature o# the product" (tage in the product

li#e-cycle" *rice" 6unds available #or

pro$otion

Nature of MaretNature of Maret

DE'E9OPING AN OPTIMA9DE'E9OPING AN OPTIMA9

PROMOTIONA9 MI:PROMOTIONA9 MI:


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Tb/e 01.;2Tb/e 01.;2 Ftors Inf/$en"n+ C(o"e of Pro-ot"on/ M"xFtors Inf/$en"n+ C(o"e of Pro-ot"on/ M"x

Personal Selling Advertising

Nature of the market

Number of buyers

Geographicconcentration

Type of customer

Limited number

Concentrated

Business purchaser

Large number

Dispersed

Ultimate consumer

Nature of the product

Complexity Service

requirements Type of good or

service Use of trade-ins

Custom-made, complex

Considerable

BusinessTrade-ins common

Standardized

Minimal

ConsumerTrade-ins uncommon

Stage in the product life

cycle

Often emphasized at everystage; heavy emphasis in the

introductory and early growthstages in acquainting marketingintermediaries and potentialconsumers with the new goodor service

Often emphasized at everystage; heavy emphasis in

the latter part of the growthstage, as well as thematurity and early declinestages, to persuadeconsumers to selectspecific brands

Price High unit value Low unit value


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MEASURING THEMEASURING THE

EFFECTI'ENESS OF PROMOTIONEFFECTI'ENESS OF PROMOTION

" &o basic $easure$ent tools/" Direct sales results $easures the e##ectiveness

o# pro$otion by revealing the speci#ic i$pacton sales revenues #or each dollar o#

pro$otional spending" Indirect evaluation concentrates on ;uanti#iable

indicators o# e##ectiveness lie/

" Recall - ho& $uch $e$bers o# the target

$aret re$e$ber about speci#ic products oradvertise$ents

" eadership ' si=e and co$position o# a$essage%s audience

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15 0

STRATEGIC IMP9ICATIONSSTRATEGIC IMP9ICATIONS

" It%s di##icult to overstate the i$pact o# the Interneton the pro$otional $i3 #or 21st Century #ir$s" :oth s$all and large #ir$s are on the @eb" 9ntrepreneurs have #ound a lucrative ne& launch

pad #or their enterprises" nline co$panies $ust buy advertising 'electronic and traditional

" nline and o##line #ir$s both spend about D50 toget each ne& custo$er

" I)C &ill continue to play an i$portant role as theInternet brings the global co$$unity closertogether

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