1. Chapter 15 Integrated Marketing Communications
Principles of
Contemporary Marketing
Kurtz & Boone
Chapter 15 Integrated Marketing Communications

2. Chapter Objectives
Explain how integrated marketing communications relates to the development of an optimal promotional mix.
Describe the communication process and how it relates to the AIDA concept.
Explain how the promotional mix relates to the objectives of promotion.
Identify the different elements of the promotional mix and explain how marketers develop an optimal promotional mix.
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3. Chapter Objectives
Describe the role of sponsorships and direct marketing in integrated marketing communications.
Discuss the factors that influence the effectiveness of a promotional mix.
Contrast pushing and pulling strategies.
Explain how marketers budget for and measure the effectiveness of promotion.
Discuss the value of marketing communications.
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5. 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 - Any stimulus that distracts a receiver from receiving a message
Channel - Medium through which a message is delivered
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7. Objectives of Promotion
Provide information
Increase demand
Differentiate the product
Accentuate the product’s value
Stabilize sales
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9.  Sponsorships
Organizations provide money or in-kind resources 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
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10. Direct Marketing Communications Channels
Direct mail
Catalogs
Telemarketing
Broadcast channels
Electronic channels
Print media
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11. Developing an Optimal Promotional Mix
Factors influencing the effectiveness of a promotional mix:
The nature of the market
The nature of the product
The stage in the product lifecycle
The price
The funds available for promotion
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13. Pulling and Pushing Promotional Strategies
Pulling strategy - Promotional effort by the seller to stimulate final-user demand, which then exerts pressure on the distribution channel
Pushing strategy - Promotional effort by the seller directed to members of the marketing channel rather than final users
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14. Budgeting for Promotional Strategy
Promotional budgets may differ not only in amount but also in composition
B2B markets allocate more to personal selling than advertising
Reverse is true for consumer goods
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16. Measuring the Effectiveness of Promotion
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
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17. 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 Web site who make a purchase
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18. Social Importance
What appeals to one group of consumers may seem tasteless to another
One generally accepted standard in a market society is freedom of choice for the consumer
Ad agencies donate expertise for public service announcements that promote social causes
Promotion performs an informative and educational task crucial to the functioning of modern society
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19. Business Importance
Long-term increase in funds allocated to promotion indicates faith in its ability to encourage attitude changes, brand loyalty, and additional sales
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20. Economic Importance Provides employment for millions of people
Increases units sold and allows economies of scale in production process
Lower units costs mean lower prices, which make a product available to more people
Subsidizes information content of newspapers and broadcast media
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