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1-2 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 16 An Overview of Marketing Communications

1-3 Discuss the objectives of marketing communications. Understand the marketing communications mix and its role. Explain the key elements of the marketing communications process. After studying this chapter you should be able to:

1-4 Discuss the seven steps in the marketing communications planning process. Demonstrate awareness of some of the key ethical and legal issues related to marketing communications. After studying this chapter you should be able to:

1-5 The Role of Marketing Communications Informing Persuading Reminding

1-6 The Marketing Communications Mix

1-7 Integrated Marketing Communications Integrated Marketing Communications (IMC): The strategic integration of multiple means of communicating with target markets to form a comprehensive, consistent message.

1-8 The Marketing Communications Process

1-9 Marketing Communications Planning Situation Analysis Communications Process Analysis Budget Development Program Development Integration & Implementation Monitoring, Evaluating, Controlling Marketing Plan Review

1-10 Marketing Communications Environments

1-11 Communications Process Analysis Apply the Basic Communication Model. Set Marketing Communications Objectives

1-12 Budget Development Influences on Budgeting: Size of the company Its financial resources The type of business The market dispersion The industry growth rate The firm’s position in the marketplace

1-13 Budgeting Methods Percentage of Sales Competitive Parity All-You-Can-Afford Objective-Task

1-14 Marketing Communications Program Development Explicit Communications: Convey a distinct, clearly stated message through personal selling, advertising, public relations, sales promotion, direct marketing, or some combination of these methods. Implicit Communications: What the message connotes about the product itself, its price, or the places it is sold.

1-15 Push, Pull, and Combination Strategies Push Strategy: Involves convincing intermediary channel members to “push” the product through the cannel to the ultimate consumer. Pull Strategy: Attempts to get consumers to “pull” the product from the manufacturing company through the marketing channel.

1-16 Push, Pull, and Combination Strategies Combination Strategy: Aiming marketing communications at both resellers and ultimate consumers.

1-17 Integration and Implementation Implementation: Setting the marketing communications plan into action. Implementation: Setting the marketing communications plan into action. The key aspect of implementation is coordination !!!

1-18 Monitoring, Evaluating, and Controlling Examples: Monitor sales promotion by the number of coupons redeemed. Measure the effectiveness of a new personal selling strategy by looking at the number of new accounts opened. A firm might run tests to see it consumers noticed the ad. Review sales results and attribute fluctuations in sales volume to MC.

1-19 Ethical and Legal Considerations M C ElementLegal / Ethical Concerns AdvertisingDeceptive advertising Unfavorable stereotypes Public RelationsLack of sincerity Using economic power unfairly Sales PromotionMisleading consumer promotions Paying slotting allowances for shelf space Personal SellingHigh-pressure selling Misrepresenting product benefits Direct MarketingTelemarketing privacy invasion Misuse of consumer database information AdvertisingDeceptive advertising Unfavorable stereotypes Public RelationsLack of sincerity Using economic power unfairly Sales PromotionMisleading consumer promotions Paying slotting allowances for shelf space Personal SellingHigh-pressure selling Misrepresenting product benefits Direct MarketingTelemarketing privacy invasion Misuse of consumer database information

1-20 Legal -- but Ethical? Some marketing communications may be technically legal but raise significant ethical questions: Liquor industry now advertises on cable and local television stations. Extensive promotion of higher-cost drugs when health care costs are spiraling out of control. Heavy promotional allowances to pharmacies for agreement to push proprietary instead of generic drugs. Promotion of legalized gambling. Some marketing communications may be technically legal but raise significant ethical questions: Liquor industry now advertises on cable and local television stations. Extensive promotion of higher-cost drugs when health care costs are spiraling out of control. Heavy promotional allowances to pharmacies for agreement to push proprietary instead of generic drugs. Promotion of legalized gambling.

1-21 Deception in Marketing Communications Deceptive Advertising: Communicatio ns intended to mislead consumers by making false claims or failing to disclose important information. Examples: False pricing offers Misleading or overstating product benefits Non- substantiation of claims made in marketing communications

1-22 Additional Regulatory Concerns Comparative advertising requires that comparative claims be supported. Product endorsers must be qualified to make judgments and must actually use the product being endorsed. Packaging and labeling practices of food and drug marketers are heavily scrutinized by consumers and regulatory agencies.

1-23 Effects of Globalization Adjust the communications mix from country to country to avoid legal and ethical problems. Sales promotion techniques that involve contests and giveaways are regulated quite differently in various countries. Adjust the communications mix from country to country to avoid legal and ethical problems. Sales promotion techniques that involve contests and giveaways are regulated quite differently in various countries.

1-24 Effects of Globalization Acceptable personal selling behavior varies significantly across countries and cultures. Special precautions must be taken to not perpetuate unfavorable stereotypes of ethic and racial groups. Acceptable personal selling behavior varies significantly across countries and cultures. Special precautions must be taken to not perpetuate unfavorable stereotypes of ethic and racial groups.