Marketing: An Introduction Integrated Marketing Communications: Advertising, Sales Promotion, and Public Relations Chapter Thirteen Lecture Slides –Express Version Course Professor Date

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc Looking Ahead After studying this chapter you should be able to: Discuss the process and advantages of integrated marketing communications Define the five promotional tools and discuss the factors that must be considered in shaping the overall promotion mix Describe and discuss the major decisions involved in developing an advertising program Explain how sales promotion campaigns are developed and implemented Explain how companies use public relations to communicate their publics

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc Integrated Marketing Communications Marketing communications (promotion) mix –Advertising –Sales promotion –Public relations –Personal selling –Direct marketing The purpose is to communicate Integrated means “fits together” –Message is consistent across all channels –Generate leverage through repetition and multiple sources with the same message Promotional mix must be coordinated with other marketing mix elements

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc Promotional Tools Advertising –Reach large masses of geographically dispersed –Allows for repetition and targeting of audience –Useful for generating awareness, image building and positioning –Medium provides for wide artistic possibilities –Can be expensive, impersonal, only one-way communication –Media fragmentation makes finding large audience difficult Personal selling –More personal, flexible, two-way communication, and provides direct feedback –Useful for building preference, conviction, and action –The basis for building a relationship with buyers

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc Promotional Tools (continued) Personal selling –Most expensive on a per contact basis –Requires long-term commitment and ongoing management Sales promotion –Coupons, contests, premiums, and incentives –Used to attract attention –Provide incentive for trial or purchase –Generates results now versus later –Effectiveness easier to track than advertising –May detract from brand equity and loyalty

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc Promotional Tools (continued) Public relations –News stories, features, press conferences, annual reports, corporate website –Seen as more believable than advertising messages –More cost efficient way to get message across –Can be difficult to control –Can be proactive and reactive Direct marketing –Messages directed to a specific person –Is more immediate –Customized –Can be interactive –Suffers from “junk mail” stereotype –Spam alert and blocking software

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc Promotional Strategies Push strategy: –Promotional effort to channel members to stock, promote the products to the next level –Uses personal selling and trade advertising/promotion Pull strategy: –Promotional effort to appeal directly to customers, who then demand the product from channel members –Uses advertising and sales promotion to generate brand awareness and preference Consumers Wholesalers Retailers Manufacturers

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc Campaign evaluation Communication impact Sales impact Message decisions Message strategy Message execution Budget decisions Affordable approach Percent of sales Competitive parity Objective and task Objectives setting Communication objectives Sales objectives Media decisions Reach, frequency, impact Major media types Specific media vehicles Media timing Major Advertising Decisions Figure 13-3

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc Message Execution Slice of life Lifestyle Fantasy Mood or image Musical Personality symbol Technical expertise Scientific evidence Testimonial or endorsement

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc Selecting Media Alternatives Decide on reach, frequency, and impact Choose from media types –Newspapers –Television –Direct mail –Radio –Magazines –Outdoor –Online Select specific media vehicles Media timing

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc Sales Promotional Campaigns Consumer promotion –Samples –Coupons, refunds/rebates –Price packs –Advertising specialties –Patronage rewards, contests, sweepstakes –Point of purchase materials Trade promotion –Discounts, allowances –Free goods –Push money, cooperative advertising programs Business promotion –Conventions, trade shows –Sales contests, incentive programs

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc Public Relations Building good relations with publics –Obtaining favourable publicity –Building corporate image –Dealing with rumours, negative publicity Functions –Press relations –Product publicity –Public affairs –Lobbying –Investor relations and development Tools –Special events, press releases, written materials, website

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc Looking Back Integrated marketing communications Promotional tools Major advertising decisions Sales promotion Public relations