1. Chapter Twelve Integrated Marketing Communications
Marketing: An Introduction Second Canadian Edition Armstrong, Kotler, Cunningham, Mitchell and Buchwitz
Chapter Twelve
Integrated Marketing Communications
Copyright © 2007 Pearson Education Canada

2. Copyright © 2007 Pearson Education Canada
Looking Ahead
Explain why it is important for organizations to integrate their marketing communications.
Describe and discuss the major decisions involved in developing an advertising program.
List the major marketing communications goals achieved through sales promotions.
List and describe the steps in the personal selling process.
Discuss the major forms of direct response marketing.
Explain how companies use public relations to communicate with their publics.
Chapter 12, page 465
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3. Marketing Communications Mix
Advertising.
Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.
Sales Promotion.
Short-term incentives to encourage the purchase or sale of a product or service.
Chapter 12, page 468
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4. Marketing Communications Mix
Public relations.
Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavourable rumors, stories and events.
Personal selling.
Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.
Chapter 12, page 468
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5. Marketing Communication Mix
Direct Marketing.
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—the use of telephone, mail, fax, , the Internet and other tools to communicate directly with specific consumers.
Chapter 12, page 468
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6. The Changing Environment
Two factors are changing the face of today’s marketing communications:
Vast improvements in information technology are speeding the movement toward segmented marketing
As mass markets have fragmented, marketers are shifting away from mass marketing.
Chapter 12, page 469
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7. Integrated Communications
Response to fragmented mass markets and new technologies.
Allows promotions to be more targeted.
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.
Chapter 12, page 469
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8. Copyright © 2007 Pearson Education Canada
The Need for IMC
Using IMC, the company carefully integrates and coordinates its many communication channels to deliver a clear, consistent and compelling message about the organization and its brands.
Chapter 12, page 470
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Marketing Agencies
Nature of marketing agencies is changing.
Past habit was to have different agencies. working on different promotional elements.
Result was more ineffective than an IMC approach.
Today’s agencies are striving to provide IMC strategies and services.
Chapter 12, page
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IMC Process
Managing the customer relationship over time.
Start with audit.
Assess the influence of each promotional tool on the target market at each stage of the buying process.
Blend all elements into an integrated mix.
Take into consideration product, distribution and price.
Chapter 12, page
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11. Promotional Strategies
Push strategy:
Promotional effort to channel members to stock, promote products to consumers.
Personal selling and trade promotion-driven.
Pull strategy:
Promotional effort to appeal directly to consumers.
Advertising and sales promotion-driven.
Chapter 12, page 474
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12. Setting the Advertising Budget
Affordable.
Based on what the company thinks it can afford.
Percentage-of-sales.
Based on a percentage of current or forecasted sales.
Competitive-parity.
Set budget to match competitors.
Objective-and-task.
Set objectives, determine tasks to achieve objectives, sum of task costs equals budget.
Chapter 12, page 474
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13. Copyright © 2007 Pearson Education Canada
Advertising
Reach large masses of geographically dispersed.
Allows for repetition and targeting of audience.
Builds awareness, image, positioning.
Provides wide artistic possibilities.
Can be expensive, impersonal, one-way.
Media fragmentation makes finding large audience difficult.
Chapter 12, page 476
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14. Setting Advertising Objectives
An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time.
Classified by purpose:
Inform.
Persuade.
Compare.
Remind.
Chapter 12, page 476
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15. Developing Advertising Strategy
Whether advertising should be an element in an IMC campaign.
If yes, then strategy consists of two major elements:
Creating advertising messages.
Selecting advertising media.
Chapter 12, page
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The Message Strategy
Need a good message to communicate.
Break through advertising clutter.
Media proliferation has made attracting attention very difficult for advertisers.
Identify customer benefits related to product’s positioning.
Need a creative concept, or “big idea” to express that message.
Chapter 12, page 478
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17. Copyright © 2007 Pearson Education Canada
Message Execution
Typical approaches:
Slice of life.
Lifestyle.
Fantasy.
Mood or image.
Musical.
Personality symbol.
Technical expertise.
Scientific evidence.
Testimonial evidence or endorsement.
Chapter 12, page 478
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18. Selecting Advertising Media
Reach.
Percentage of people exposed to ad.
Frequency.
Number of times a person is exposed to ad.
Media impact.
The qualitative value of a message exposure through a given medium.
Chapter 12, page
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Choosing Media Type
Newspapers, magazines, television, radio, outdoors, direct mail, online.
Factors to consider:
Media habits of target consumers.
Nature of the product.
Type of message.
Cost.
Media vehicles-- specific media within each general media type.
Media timing – schedules, seasons, patterns.
Chapter 12, page
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20. Evaluating Advertising
Ultimate test is whether sales have increased.
Measure before and after an ad campaign to measure results.
Online advertising the easiest to measure based on conversion rates and the ability to prompt immediate calls to action.
Chapter 12, page
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21. International Advertising
Think globally, but act locally.
Consider language, cultural differences.
Media costs and availability can vary.
Chapter 12, page
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22. Copyright © 2007 Pearson Education Canada
Sales Promotion
Coupons, contests, premiums, 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.
Chapter 12, page 485
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23. Sales Promotion Objectives
Consumer: increase short-term sales or help build long-term market share.
Trade: get retailers to:
carry new items and more inventory.
advertise products.
give products more shelf space.
buy ahead.
Chapter 12, page
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24. Copyright © 2007 Pearson Education Canada
Personal Selling
Personal, flexible, two-way communication, provides direct feedback.
Builds preference, conviction, action.
Suited to complex, higher priced products.
Basis for building a buyer relationship.
Most expensive on a per contact basis.
Requires long-term commitment and ongoing management.
Chapter 12, page
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25. Sales Force Organization
Territorial – each person is assigned a geographic territory.
Product – salespeople specialize in selling a particular product.
Customer – salespeople specialize in selling to particular types of customers.
Outside – salespeople work in the field.
Inside – salespeople sell via phone or .
Chapter 12, page
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26. The Personal Selling Process
Prospecting.
Identify qualified potential customers.
Pre-approach.
Learn as much as possible about customer first.
Approach.
Meet the customer for the first time.
Presentation.
Tell the “product story” to the buyer, highlighting customer benefits.
Chapter 12, page
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27. The Personal Selling Process
Handling objections.
Seek out, clarify and overcome customer objections to buying.
Closing.
The salesperson asks the customer for an order.
Follow-up.
The salesperson follows up after the sale to ensure customer satisfaction and repeat business.
Chapter 12, page
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Direct Response
Direct connections with carefully targeted individual consumers.
Immediate and interactive.
Cultivate lasting customer relationships.
Can supplement to existing channels.
Fastest growing form of marketing.
Low-cost and efficient.
Chapter 12, page
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29. Copyright © 2007 Pearson Education Canada
Database Marketing
An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic and behavioural data.
Allows marketing messages to be fine-tuned to specific groups of people.
Chapter 12, page
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30. Copyright © 2007 Pearson Education Canada
Telemarketing
Using the telephone to connect directly.
Used in both consumer and B2B markets.
Can be outbound or inbound calls.
Used for both sales and customer service.
Chapter 12, page 497
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31. Copyright © 2007 Pearson Education Canada
Direct Mail Marketing
Involves sending an offer, announcement, reminder or other item to a person at a particular address.
Permits high target-market selectivity.
Personal and flexible.
Easy to measure results.
Chapter 12, page 497
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32. Copyright © 2007 Pearson Education Canada
Catalogue Marketing
Direct marketing through print, video or electronic catalogues that are mailed directly.
With the Internet, more and more catalogues going electronic.
Print catalogues still the primary medium.
Harder to attract new customers with Internet catalogues.
Chapter 12, page 498
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33. Direct-Response TV Marketing
Television spots that persuasively describe a product and give customers a toll-free number for ordering.
Infomercials.
The Shopping Channel.
Kiosks.
Chapter 12, page
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34. Public Policy and Ethics
Key issues include:
Misleading consumers including deception and fraud.
Taking advantage of impulse buyers, those addicted to TV and unsophisticated buyers.
Privacy and protection of personal information.
Invasion of privacy at home and the “do not call” registry.
Chapter 12, page
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35. Copyright © 2007 Pearson Education Canada
Public Relations
Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavourable rumors, stories and events.
Chapter 12, page 501
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36. Copyright © 2007 Pearson Education Canada
Public Relations
News stories, features, press conferences, annual reports, corporate website.
Seen as more believable than advertising messages.
More cost efficient.
Can be difficult to control.
Can be proactive and reactive.
Chapter 12, page 501
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37. Public Relations Functions
Press relations – get attention of media.
Product publicity – publicizing new products.
Public affairs – manage national or local community relations.
Lobbying – manage relations with legislators and officials.
Chapter 12, page
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38. Public Relations Functions
Investor relations – manage relations with shareholders and financial community.
Development – fund raising for non-profits.
Crisis management – manage reaction to sudden, bad publicity through problems with products, employees or the company.
Chapter 12, page
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39. Public Relations Tools
News.
Speeches.
Special events.
Buzz marketing.
Mobile marketing.
Written materials.
Audiovisual materials.
Corporate identity materials.
Public service activities.
Company website.
Chapter 12, page 504
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40. Copyright © 2007 Pearson Education Canada
Looking Back
Explain why it is important for organizations to integrate their marketing communications.
Describe and discuss the major decisions involved in developing an advertising program.
List the major marketing communications goals achieved through sales promotions.
List and describe the steps in the personal selling process.
Discuss the major forms of direct response marketing.
Explain how companies use public relations to communicate with their publics.
Chapter 12, page
Copyright © 2007 Pearson Education Canada