Insert Chapter Picture Here Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 1 Designed by Eric Brengle B-books, Ltd. CHAPTER 14 Integrated Marketing Communications Prepared by Deborah Baker Texas Christian University Marketing Lamb, Hair, McDaniel 9

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 2 Learning Outcomes Discuss the role of promotion in the marketing mix Discuss the elements of the promotional mix Describe the communication process LO I LO 2 LO 3

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 3 Learning Outcomes Explain the goal and tasks of promotion Discuss the AIDA concept and its relationship to the promotional mix Describe the factors that affect the promotional mix Discuss the concept of integrated marketing communications LO 5 LO 6 LO 7 LO 4

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 4 Discuss the role of promotion in the marketing mix The Role of Promotion in the Marketing Mix LO I

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 5 The Role of Promotion Promotion Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. LO I

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 6 The Role of Promotion LO I Promotional Strategy Promotional Strategy A plan for the optimal use of the elements of promotion:  Advertising  Public Relations  Sales Promotion  Personal Selling CompetitiveAdvantage

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 7 LO I Overall Marketing Objectives Marketing Mix Product Place Promotion Price Marketing Mix Product Place Promotion Price Target Market Promotional Mix Advertising Public Relations Sales Promotion Personal Selling Promotion Plan Promotional Mix Advertising Public Relations Sales Promotion Personal Selling Promotion Plan The Role of Promotion in the Marketing Mix

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 8 Competitive Advantage LO I Unique features Excellent service Low prices Rapid delivery High product quality

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 9 REVIEW LEARNING OUTCOME The Role of Promotion in the Marketing Mix LO I

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter Discuss the elements of the promotional mix The Promotional Mix LO 2

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter The Promotional Mix LO 2 Promotional Mix Promotional Mix Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals.  Advertising  Public Relations  Sales Promotion  Personal Selling

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter The Promotional Mix LO 2 Advertising Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 2 Traditional Advertising Media Traditional Advertising Media New Advertising Media  Television  Radio  Newspapers  Magazines  Books  Direct mail  Billboards  Transit cards  Internet  Banner ads  Viral marketing  E- mail  Interactive video Advertising Media

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter14 14 LO 2 Advertising AdvantagesDisadvantages  Reach large number of people  Low cost per contact  Can be micro- targeted  Total cost is high  National reach is expensive for small companies

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter Public Relations LO 2 Public Relations Public Relations The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter  Jaguar is giving an $80,000 Jaguar XK to a select group of “beautiful people”--just to be seen in it  It is reality-based product placement—where real life blurs seamlessly into advertising  The success of the campaign is “how many people touch and see the car” LO 7 Reality-Based Product Advertising SOURCE: Gina Chon, “Jaguar Tries a Living Product Placement,” Wall Street Journal, June 29, 2006, B1.

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 2 The Function of Public Relations  Maintain a positive image  Educate the public about the company’s objectives  Introduce new products  Support the sales effort  Generate favorable publicity

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter Sales Promotion LO 2 Sales Promotion Online Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness.

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter14 19 LO 2 End Consumers End Consumers Trade Customers Company Employees Company Employees Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons Sales Promotion

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter Personal Selling Personal Selling Personal Selling LO 2 Planned presentation to one or more prospective buyers for the purpose of making a sale.

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 2 Personal Selling Traditional Selling Traditional Selling Relationship Selling Relationship Selling

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter REVIEW LEARNING OUTCOME Elements of the Promotional Mix LO 2

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter Describe the communication process Marketing Communication LO 3

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter Communication LO 3 Communication Online The process by which we exchange or share meanings through a common set of symbols.

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 3 Categories of Communication Categories of Communication Interpersonal Communication Interpersonal Communication Mass Communication Mass Communication Marketing Communication

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 3 Marketing Communication As SendersAs Receivers  Develop messages  Adapt messages  Spot new communication opportunities  Inform  Persuade  Remind

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 3 Noise Sender Encoding Message Feedback Channel Feedback Channel Message Channel Message Channel Decoding Message Decoding Message Receiver The Communication Process

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 3 Characteristics of the Elements in the Promotional Mix

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 3 Characteristics of the Elements in the Promotional Mix Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Advertising Indirect and impersonal Low Little Delayed One-way Yes Fast Same message to all audiences

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 3 Characteristics of the Elements in the Promotional Mix 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, impersonal Moderate to low Little Delayed One-way No Usually fast Usually no direct control

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 3 Characteristics of the Elements in the Promotional Mix 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 impersonal Moderate to low Little to moderate Varies Mostly one-way Yes Fast Same message to varied target

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 3 Characteristics of the Elements in the Promotional Mix 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

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter The Impact of Blogging LO 3 Corporate Blogs Corporate Blogs Sponsored by a company or one of its brands and maintained by one or more of the company’s employees. Noncorporate Blogs Independent and not associated with the marketing efforts of any particular company or brand. Independent and not associated with the marketing efforts of any particular company or brand.

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter REVIEW LEARNING OUTCOME The Communication Process LO 3

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter Explain the goals and tasks of promotion The Goals and Tasks of Promotion LO 4

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 4 Informing Reminding Persuading Target Audience Target Audience Goals and Tasks of Promotion Online

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 4 Goals and Tasks of Promotion Informing Reminding Persuading Target Audience Target Audience PLC Stages PLC Stages: Introduction Early Growth PLC Stages: Growth Maturity PLC Stages: Maturity

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 4  Increase awareness  Explain how product works  Suggest new uses  Build company image Informative Promotion Goals and Tasks of Promotion

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 4 Persuasive Promotion Goals and Tasks of Promotion  Encourage brand switching  Change customers’ perceptions of product attributes  Influence immediate buying decision  Persuade customers to call

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 4 Reminder Promotion Goals and Tasks of Promotion  Remind customers that product may be needed  Remind customers where to buy product  Maintain customer awareness

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter Discuss the AIDA concept and its relationship to the promotional mix Promotional Goals and the AIDA Concept LO 5

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 5 AIDA Concept Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. The AIDA Concept

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter14 43 LO 5 The AIDA Concept Action Desire Interest Attention Cognitive (thinking) Affective (feeling) Conative (doing) Online LO Online

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter14 Biz Flix About a Boy 44 LO 5

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter REVIEW LEARNING OUTCOME The AIDA Concept LO 5

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter Describe the factors that affect the promotional mix Factors Affecting the Promotional Mix LO 6

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 6 Nature of the product Stage in PLC Target market factors Type of buying decision Promotion funds Push or pull strategy Factors Affecting the Choice of Promotional Mix

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 6 Stage in the Product Life Cycle Light Advertising; pre- introduction publicity Heavy use of Advertising; PR for awareness; sales promotion for trial AD/PR decrease; limited sales promotion; personal selling for distribution Ads decrease; sales promotion; personal selling; reminder & persuasive Advertising, PR, brand loyalty; personal selling for distribution Introduction Growth Maturity Decline Sales ($) Time

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 6 For…  Widely scattered market  Informed buyers  Brand-loyal repeat purchasers Advertising Sales Promotion Less Personal Selling Target Market Characteristics

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 6 Advertising Sales Promotion Routine Personal Selling Neither Routine nor Complex Neither Routine nor Complex Advertising Public Relations Print Advertising Complex Type of Buying Decision

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 6  Trade-offs with funds available  Number of people in target market  Quality of communication needed  Relative costs of promotional elements Available Funds

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 6 Push and Pull Strategies Manufacturer promotes to wholesaler Manufacturer promotes to wholesaler Wholesaler promotes to retailer Wholesaler promotes to retailer Retailer promotes to consumer Retailer promotes to consumer Consumer buys from retailer Consumer buys from retailer PUSH STRATEGY Orders to manufacturer Manufacturer promotes to consumer Manufacturer promotes to consumer Consumer demands product from retailer Consumer demands product from retailer Retailer demands product from wholesaler Retailer demands product from wholesaler Wholesaler demands product from manufacturer Wholesaler demands product from manufacturer Orders to manufacturer PULL STRATEGY

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter REVIEW LEARNING OUTCOME Factors Affecting Promotional Mix LO 6

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter Discuss the concept of integrated marketing communications Integrated Marketing Communications LO 7

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 7 Integrated Marketing Communications Integrated Marketing Communications The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer. Integrated Marketing Communications

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter LO 7  Proliferation of thousands of media choices  Fragmentation of the mass market  Slash of advertising spending in favor of promotional techniques that generate immediate response IMC Popularity Growth

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter REVIEW LEARNING OUTCOME Integrated Marketing Communications LO 7