Integrated Marketing Communications 12 chapter Prepared by Deborah Baker Texas Christian University Chapter 12 Version 3e

1 Promotion Inform Persuade Remind Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. Persuade Remind Chapter 12 Version 3e

Competitive Advantage Integrated Marketing Communications 1 Competitive Advantage Unique Features Excellent Service Low Prices Rapid Delivery High Product Quality Features that provide Competitive Advantage Chapter 12 Version 3e Chapter 14 Version 6e

Promotional Mix-Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. Advertising Elements of the Promotional Mix Public Relations Personal Selling Sales Promotion Chapter 12 Version 3e

2 Advertising Impersonal, one-way mass communication about a product or organization that is paid for by a marketer. Chapter 12 Version 3e

Electronic Advertising Media 2 Advertising Media Traditional Advertising Media Electronic Advertising Media Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards Internet Fax machines Chapter 12 Version 3e

2 Advertising Advantages Disadvantages Ability to reach large number of people Cost per contact is low Can be micro-targeted Disadvantages Total cost is high Chapter 12 Version 3e

2 Publicity Public information about a company, good, or service appearing in the mass media as a news item. It is NOT paid for by the marketer. Chapter 12 Version 3e

2 Sales Promotion Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness. Chapter 12 Version 3e

2 Sales Promotion Popular Tools for Consumer Sales Promotion Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons Popular Tools for Consumer Sales Promotion Chapter 12 Version 3e

2 Personal Selling Planned presentation to one or more prospective buyers for the purpose of making a sale. Chapter 12 Version 3e

3 Communication The process by which we exchange or share meanings through a common set of symbols. Chapter 12 Version 3e

The Sender and Encoding 3 The Sender and Encoding Sender The originator of the message in the communication process. Encoding The conversion of a sender’s ideas and thoughts into a message, usually in the form of words or signs. Chapter 12 Version 3e

The Communication Process 3 The Communication Process Noise Sender Encoding Message Message Channel Decoding Receiver Chapter 12 Version 3e

Characteristics of Advertising 3 Characteristics of Advertising Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Advertising Indirect and non-personal Low Little Delayed One-way Yes Fast Same message to all audiences Chapter 12 Version 3e

Characteristics of Public Relations 3 Characteristics of Public Relations Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Public Relations Usually indirect, non-personal Moderate to low Little Delayed One-way No Usually fast Usually no direct control Chapter 12 Version 3e

Characteristics of Sales Promotion 3 Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Sales Promotion Usually Indirect and non-personal Moderate to low Little to moderate Varies Mostly one-way Yes Fast Same message to varied target Chapter 12 Version 3e

Characteristics of Personal Selling 3 Characteristics of Personal Selling Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Personal Selling Direct and face-to-face High Much Immediate Two-way Yes Slow Tailored to prospect Chapter 12 Version 3e

Goals and Tasks of Promotion 4 Goals and Tasks of Promotion Informing Reminding Persuading Target Audience Chapter 12 Version 3e

Goals and Tasks of Promotion 4 Goals and Tasks of Promotion Informative Objective Increase awareness Explain how product works Suggest new uses Build company image Chapter 12 Version 3e

Goals and Tasks of Promotion 4 Goals and Tasks of Promotion Persuasion Objective Encourage brand switching Change customers’ perception of product attributes Influence buying decision Persuade customers to call Chapter 12 Version 3e

Goals and Tasks of Promotion 4 Goals and Tasks of Promotion Reminder Objective Remind customers that product may be needed Remind customers where to buy product Maintain customer awareness Chapter 12 Version 3e

5 The AIDA Concept Attention Interest Desire Action Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. Chapter 12 Version 3e

Attention Interest Desire Action 5 The AIDA Concept Attention Interest Desire Action Chapter 12 Version 3e

Factors Affecting the Promotional Mix 6 Nature of Product Stage in PLC Target Market Factors Type of Buying Decision Promotion Funds Push or Pull Strategy Factors Affecting Choice of Promotional Mix Chapter 12 Version 3e

Product Life Cycle and the Promotional Mix 6 Introduction Growth Maturity Decline Sales ($) Time Light Advertising, pre- introduction Publicity Heavy use of advertising, PR for awareness; sales promotion for trial Advertising, PR, Brand loyalty Personal Selling for distribution Ads decrease. Sales Promotion, Personal Selling Reminder & Persuasive AD/PR decrease Limited Sales Promotion, Personal Selling for distribution Chapter 12 Version 3e

Target Market Characteristics 6 Target Market Characteristics FOR: Widely scattered market Informed buyers Repeat buyers Advertising Sales Promotion Less Personal Selling Chapter 12 Version 3e

Type of Buying Decision 6 Type of Buying Decision Advertising Sales Promotion Type of Buying Decision affects Promotional Mix Choice Complex Routine Personal Selling Not Routine or Complex Public Relations Chapter 12 Version 3e

6 Available Funds Trade-offs with funds available Number of people in target market Quality of communication needed Relative costs of promotional elements Chapter 12 Version 3e

Push and Pull Strategies 6 Push and Pull Strategies Manufacturer promotes to wholesaler Wholesaler retailer Retailer consumer Consumer buys from PUSH STRATEGY Orders to manufacturer Manufacturer promotes to consumer Consumer demands product from retailer Retailer from wholesaler Wholesaler product from manufacturer Orders to manufacturer PULL STRATEGY Chapter 12 Version 3e