1. Integrated Marketing Communications
Chapter Thirteen
Ford Thunderbird Ad
Integrated Marketing Communications

2. Chapter Objectives
Discuss the concept and stages of Integrated Marketing Communication.
Identify various marketing communication elements and the importance of AIDA.
Discuss factors that impact the relative mix of communication elements in an Integrated Marketing Communication plan.
Explain methods for measuring the effectiveness of marketing communication.

3. Integrated Marketing Communications
The coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program designed to maximize the communication impact on consumers, businesses, and other organization constituencies.
Promotion:
All forms of external communications directed toward consumers and businesses with an ultimate goal of developing customers.
Reasons for Integrated Marketing Communication
Customers are better informed.
Customers are more price conscious.
Customers are more demanding of quality and service.
Customers want more convenience and faster delivery.
Communication to four primary groups:
Customers
Channel members
Employees
Stakeholders

4. Communication Venues Advertising Sales/Trade promotion
Personal selling
Public relations
Internet
Database
Direct marketing
Traditional Approach radio, television, newspaper, and magazines
Integrated Approach
Internet, billboards, transit signs, and company stationery
Advertising: Paid communication directed to customers and/or other stakeholders
Public relations: Addresses issues faced by an organization and represents the organization to the public, media, and various stakeholders
Publicity: An outcome of public relations that is produced by the news media and is not paid for or sponsored by the business
Sales promotions: Incentives used to encourage end-users to purchase a product, e.g., coupons, premiums
Trade promotions: Incentives directed toward channel members to encourage them to purchase, stock or push a product through the channel
Personal selling: Direct communication between the buyer and seller with the express purpose of selling a product
Database marketing: Collection, analysis, and use of large volumes of customer data to develop marketing programs and customer profiles
Direct marketing: Promotion of a product directly from the manufacturer or producer to the buyer without any middlemen involved in the transaction
Internet marketing: Promotion and sale of products through the Internet (more than 60% of Americans have Internet access)

5. The Communication Mix

6. Stages of Integrated Marketing Communications
Identifying, coordinating, and managing all forms of external communication to bring all of the company’s brands and divisions under central control.
Use same logos, themes, and colors (same message, same look).
Extending the scope of communication to include everyone touched by the organization. Internal and External communication have to be consistent.
Every person who comes in contact with the organization should see one overall theme.
Databases are developed to include every customer's activities, purchases, and interactions with the company.
Customers information is used to make product and promotion decisions.
Establish “a customer value” for each customer. Customers are very different, e.g., some buy large quantities others not, some are loyal others are not.
Use individualized marketing approaches that will maximize the return of effort.

7. The Communication Process
Noise: different accessibility of medium, selective awareness, attention, reaction, action.
Sender
Recipient
Purpose*: Persuasive Communication
It is difficult to guarantee that the intended message of the sender is the perceived message of the recipient. AIDA – model
Attention: Get awareness of your message.
Interest: Get consumer to listen to message.
Desire: Get consumer to want product + service + idea.
Action: Get Consumer to purchase.

8. Aida Concept

9. Model of Communications
“*Copy”
Encoding
Source
Message
*Informer
*Presentation
Noise
Audience
Medium
Decoding
*Receivers
*Vehicle
Low Involvement *Responses High Involvement
Cognitive Cognitive
Behavioral Affective
Affective Behavioral

10. Communication Objectives
Increase demand
Use trade promotions (channel)
Use sales promotions (consumers)
Advertising and personal selling support
Differentiate a product
Avoid commodity status, price competition
Benefits and product attributes
Psychological superiority
Personal selling
Advertising
Reduce purchase risk
New products
New customers
Trade and sales promotions
Provide information
Advertising
Personal selling
Retail
Field sales
Build brand equity
Essential for long-term survival
Two foundations
Quality
Awareness
Stimulate trial
Sales promotions

11. Communication Objectives Summary
Promotion Personal
Advertising Trade Sales Selling
Objective
Increase demand M E E G
Differentiate a product E P M E
Provide information E P P E
Build brand equity E P P M
Reduce purchase risk P G G E
Stimulate Trial M P E M
E = Excellent, G = Good, M = Moderate, P = Poor

12. Impact of Promotional Mix Elements
Personal Selling
Sales Promotion
I m p o r t a n c e
Advertising
Public
Relations
Awareness Interest Desire Action

13. Trustworthy Sources of Information
Word-of-Mouth:
Whether on-line or off-line, nationally or internationally, friends and family or strangers, word-of-mouth information is typically deemed more trustworthy than information generated by a marketer. This is one reason why marketers are currently exploring “social networks” as a means of message delivery.

14. Business versus Consumer Marketing
Business Marketing: Relies more on personal selling and trade promotions (larger volume purchases)
Consumer Marketing: Relies more on sales promotion and advertising

15. Push/Pull Marketing Strategies
Push marketing strategy: The manufacturer attempts to push the product through the channels with the belief that if the product is available in retail outlets, consumers will purchase it.
Pull marketing strategy: The manufacturer builds product demand at the consumer level with the belief that consumers will go to retailers and demand that the product be stocked.

16. Question: Does Tree Top use a push or a pull strategy?
Answer: It uses a pull strategy, advertising their juice to parents, who then demand the product from retailers.
Source: © Tree Top, Inc., Created by Cole & Weber / Red Cell, Seattle, WA.

17. Marketing Communication & the PLC
Introduction Growth Maturity Decline
Advertising
Develop awareness ***
Build industry demand ***
Trade promotions
Not effective
Sales promotions
Encourage trial usage ***
Personal selling
Good for b-to-b market ***
Poor for consumer markets ***
Advertising
Develop brand name ***
Develop brand awareness ***
Trade promotions
Customers are demanding product.
Product is being pulled through channel.
Sales promotions
Consumer demand is already high.
Personal selling
Salespeople serve as order-takers.
Differentiate brand ***
Advertising
Differentiate brand from competition ***
Trade promotions
Push product through channel ***
Sales promotions
Encourage consumers to purchase ***
Personal selling
Encourage salespeople to push brand ***
Differentiate brand ***
Advertising
Demand is declining.
New technology is replacing product.
Trade promotions
Ineffective in pushing product in channel
Sales promotions
Ineffective in stimulating demand
Personal selling
Market is shrinking and limited
***Indicates high expenditures

18. Communication Budget Methods
Objective-and-task
Percent-of-sales
Comparative parity
Executive-judgment
All-you-can-afford

19. Measuring Communication Effectiveness
- Is the sales growth or decline due to promotion, or is it attributable to other factors such as price, quality, or service?
- Sales vs. Communication objectives/effects?
Advertisement Evaluation
Concept and Copy Tests
Recall/Recognition and Attitude Tests
Trade and Sales Promotion Evaluation
Sales changes
Inquiries
Redemption/Response rates
Personal Selling Evaluation
Sales
Number of new customers
Customer retention
Customer satisfaction

20. Global Communications
Globally Integrated Marketing Communication is an international trend. The challenges to coordinate marketing efforts are the cultural difference. International companies have two strategies available:
Standardization: The process of using the same product and marketing approach across countries
Adaptation: The process of modifying the product and marketing approach for each country
“Think globally but
act locally.”