1. Integrated Marketing Communications
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.
Describe the role of sponsorships and direct marketing in integrated marketing communications.
Contrast the two major alternative promotional strategies.
Explain how marketers budget for and measure the effectiveness of promotion.
Discuss the value of marketing communications.

3. Promotion
Function of informing, persuading, and influencing the consumer’s purchase decision
Marketing Communications
Transmission from a sender to a receiver of a message dealing with the buyer-seller relationship

4. Integrated Marketing Communications
Coordination of all promotional activities – media advertising, direct mail, personal selling, sales promotion, and public relations – to produce a unified customer-focused promotional message
Importance of Teamwork
IMC requires a total strategy including all marketing activities, not just promotion

5. Role of Databases in Effective IMC Programs
With the growth of the Internet, marketers have been given the power to gather information faster and to organize it easier than ever before
By sharing this knowledge appropriately among all relative parties, a firm can lay the foundation for a successful IMC program

6. The Communications Process
An effective promotional message accomplishes three tasks:
It gains the receiver’s attention
It achieves understanding by both receiver and sender
It stimulates the receiver’s needs and suggests an appropriate method of satisfying them

7. AIDA concept (Attention-Interest-Desire-Action) – an explanation of the steps through which an individual reaches a purchase decision
Sender
Encoding
Channel
Decoding
Response
Feedback
Noise

8. Global Difficulties with the Communication Process
In China: KFC’s slogan: “Finger lickin’ good” came out as “Eat your fingers off”
Also in China: Coca-Cola had thousands of signs made using the translation: “Ke-kou-ke-la”
Depending on the dialect this means . . .
“Bite the wax tadpole,” or
“Female horse stuffed with wax”
In Taiwan: Pepsi’s slogan, “Come alive with the Pepsi generation” came out as “Pepsi will bring your ancestors back from the dead”

9. Objectives of Promotion
Provide Information
Increase Demand
Differentiate the Product
Accentuate the Product’s Value
Stabilize Sales

10. Elements of the Promotional Mix
Promotional mix: blend of personal selling and nonpersonal selling designed to achieve promotional objectives
Personal selling: interpersonal promotional process involving a seller’s person-to-person presentation to a prospective buyer
Nonpersonal selling includes: Advertising, Product placement, Sales promotion, Direct marketing, Public relations

11. Advertising
Paid, nonpersonal communication through various media by a business firm, not-for-profit organization, or individual identified in the message with the hope of informing or persuading members of a particular audience
Product Placement
Marketer pays a motion picture or television program owner a fee to display his or her product prominently in the film or show

12. Sales Promotion
Marketing activities that stimulates consumer purchasing (includes: displays, trade shows, coupons, premiums, contests, product demonstrations, and various nonrecurrent selling efforts)
Trade promotion
Direct Marketing
Direct communications other than personal sales contact between buyer and seller, designed to generate sales, information requests, or store visits

13. Public relations: firm’s communications and relationships with its various publics
Publicity: stimulation of demand for good, service, place, idea, person, or organization by unpaid placement of commercially significant news or favorable media presentations
Guerilla Marketing: Unconventional, innovative, and low-cost marketing techniques designed to get consumers’ attention in unusual ways.

14. Sponsorships
Provision of funds for a sporting or cultural event in exchange for a direct association with the events or activity
Growth of Sponsorships
How Sponsorship Differs from Advertising
Sponsor’s degree of control, Nature of the message, Audience reaction
Ambush marketing
Assessing Sponsorship Results

15. Direct Marketing Communication Channels
Telephone
Direct Mail
Television
Newspaper
Magazine
Radio

16. Direct Mail
Marketers combine information from internal and external databases, surveys, coupons, and rebates that require responses to provide information about consumer lifestyles, buying habits, and wants
Catalogs
Over 10,000 different consumer mail-order catalogs and thousands more for business-to- business sales are mailed each year generating over $57 million in consumer sales and $36 million in B2B sales

17. Telemarketing: promotional presentation involving the use of the telephone for outbound contacts by salespeople or inbound contacts initiated by customers who want to obtain information and place orders
Direct Marketing via Broadcast Channels Broadcast direct marketing includes:
Brief (30 to 90 and second) direct response ads on television or radio
Home shopping channels like:
Quality Value Channel (QVC)
Home Shopping Network (HSN)
Infomercial

18. Electronic Direct Marketing Channels
Web advertising is an important component of electronic direct marketing
direct marketing is a natural and easy extension of traditional direct mail marketing
Other Direct Marketing Channels
Print media is generally not as effective as Web marketing or telemarketing for direct marketers
Magazine and newspaper ads with toll-free telephone numbers, kiosks, and other media are still useful in many situations

19. Developing an Optimal Promotional Mix
Factors that influence the effectiveness of a promotional to mix:
Nature of the market
Nature of the product
Stage in the product life-cycle
Price
Funds available for promotion

20. Pulling and Pushing Promotional Strategies
Pulling strategy: promotional effort by a seller to stimulate demand among final users, who will then exert pressure on the distribution channel to carry the good or service, pulling it though the marketing channel
Pushing strategy: promotional effort by a seller to members of the marketing channel intended to stimulate personal selling of the good or service, thereby pushing it through the marketing channel

21. Budgeting for Promotional Strategy
Percentage-of-sales method
Fixed-sum-per-unit method
Meeting competition method
Task-objective method

22. Measuring the Effectiveness of Promotion
Two basic measurement tools:
Direct sales results measures the effectiveness of promotion by revealing the specific impact on sales revenues for each dollar of promotional spending
Indirect evaluation concentrates on quantifiable indicators of effectiveness like:
Recall
Readership

23. Measuring Online Promotions
Early attempts at measuring online promotional efforts involved counting hits and visits
Incorporating direct response and comparing different promotions for effectiveness
Two major techniques for setting online advertising rates:
Cost per impression (CPM)
Cost per response (click-throughs)

24. The Value of Marketing Communications
Social Importance
Criticisms of promotional messages as tasteless and lacking any contribution to society sometimes ignore the fact that society provides no commonly accepted set of standards
The one generally accepted standard in a market society is freedom of choice for the consumer
Promotion has become an important factor in campaigns aimed at achieving socially oriented objectives like the elimination of drug abuse

25. Business Importance
Promotional strategy has become increasingly important to both small and large firms
Both business and nonbusiness enterprises recognize the importance of promotional efforts
Economic Importance
Effective promotion has allowed society to derive benefits not otherwise available
Subsidizes the information contents of newspapers and the broadcast media