© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 1

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Objectives 1.Define integrated marketing communications and explain how it relates to the development of an optimal promotional mix. 2.Describe the communication process and how it relates to the AIDA concept. 3.Identify the elements of the promotional mix. 4.Name the three major advertising objectives and the two basic categories of advertising. 2

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Objectives 5.Identify the major advertising strategies and the process of creating an advertisement. 6.Describe the major types of advertising appeals, and discuss their uses. 7.List and compare the major advertising media.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Objectives 8.Explain the roles of public relations, publicity, cross-promotion, and ethics in an organization’s promotional strategy. 9.Discuss the factors that influence the effectiveness of a promotional mix, and how marketers measure effectiveness.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations The Communication Process AIDA concept (attention, interest, desire, action) – Promotional message must gain the potential consumer’s attention – Seeks to arouse interest in the good or service – Stimulates desire by convincing the would-be buyer of the product’s ability to satisfy his or her needs – Sales presentation, advertisement, or sales promotion technique attempts to produce action

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations The Communication Process Encoding - Translating a message into understandable terms Decoding - Receiver’s interpretation of a message Feedback - Receiver’s response to a message Noise - Interference at some stage in the communication process Channel - Medium through which a message is delivered

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Sponsorships Relationship in which an organization provides funds to an event or activity in exchange for a direct association with that event or activity Sponsor purchases: – Access to the event’s audience – The image associated with the activity

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Types of Advertising Product advertising - Nonpersonal selling of a particular good or service Institutional advertising - Promotion of a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographic location, or government agency

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Objectives of Advertising Informative advertising Persuasive advertising Reminder advertising

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Advertising Strategies Comparative advertising Celebrity testimonials Retail advertising Interactive advertising

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Advertising Appeals Fear appeals Humor in advertising messages Ads based on sex

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Developing and Preparing Ads Goals – Gain attention and interest – Inform or persuade – Lead to purchase or other desired action

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Media Selection and Scheduling Television Radio Newspapers Magazines Direct Mail Outdoor Advertising Interactive Media

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Media Scheduling Setting the timing and sequence for a series of advertisements Influenced by a variety of factors – Seasonal sales patterns – Repurchase cycles – Competitors’ activities

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Marketing and Nonmarketing Public Relations Nonmarketing public relations - A company’s messages about general management issues Marketing public relations (MPR) - Narrowly focused public relations activities that directly support marketing goals

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Publicity and Cross-Promotion Publicity - Nonpersonal stimulation of demand for a good by unpaid placement of significant news Cross-promotion - Marketing partners share the cost of a promotional campaign that meets their mutual needs

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Ethics and Promotional Strategies Advertising to children Insertion of product messages in media programs without full disclosure Use of cookies in online advertising

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Puffery and Deception Puffery – Exaggerated claims of a product’s superiority – Use of subjective or vague statements that may not be literally true The Uniform Commercial Code standardizes sales and business practices throughout the United States

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Promotional Mix Effectiveness Factors influencing the effectiveness of a promotional mix – Nature of the market – Nature of the product – Stage in the product lifecycle – Price

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Funds Available for Promotion Percentage-of-sales method Fixed-sum-per-unit method Meeting competition method Task-objective method

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Evaluating Promotional Effectiveness Direct sales results test - Based on the specific impact on sales revenues for each dollar of promotional spending Indirect evaluation - Concentrating on quantifiable indicators of effectiveness such as recall and readership

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Measuring Advertising Effectiveness Media research - Assesses how well a particular medium delivers a message Message research - Tests consumer reactions to an advertisement’s creative message

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Measuring Public Relations Effectiveness The simplest and least costly method – Whether the target audience received, paid attention to, understood, and retained the messages directed to them – Count the number of media placements and gauge the extent of media coverage Conduct focus groups, interview opinion leaders, and more detailed and extensive opinion polls

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations Measuring Online Promotions Cost per impression - Relates the cost of an ad to every thousand people who view it Cost per response (click-through) - Relates the cost of an ad to the number of people who click it Conversion rate - Percentage of visitors to a website who make a purchase