1. Chapter 9 Integrated Marketing Communications

2. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Integrated Marketing Communications... A long term view of influencing customers through a coordinated strategic use of the promotion mix –advertising –public relations –personal selling –sales promotion A strategic program of persuasive communications

3. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Integrated Marketing Communications Coordinates promotion decisions with the strategic marketing plan Must deliver a cohesive message Must maintain clear promotion objectives (long & short term)

4. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Advertising... Paid, nonpersonal forms of communication transmitted through mass media Often the most visible component of the marketing mix Transmitted through the Internet, television, newspapers, magazines, direct mail, outdoor, etc.

5. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Considerations in Advertising... Provides cost efficiency for large audiences –high aggregate cost Allows focused or broad targeting –web advertising –prime time, general interest network advertising

6. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Types of Advertising... Institutional Advocacy Pioneer Competitive/comparative Reminder Reinforcement

7. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Determining the Advertising Budget Objective & task Percentage-of-sales Competition-matching Arbitrary

8. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Evaluating Advertising Effectiveness Determine perceived image Evaluate attitudes Determine purchase behavior/intent –pretest versus posttest results

9. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Public Relations... Used to foster a positive relationship between an organization & its stakeholders Begins with an understanding of current images & opinions May create a specific image: –high quality –innovativeness –integrity –value

10. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Public Relations Methods... News releases Feature articles Press conferences

11. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Advertising versus Public Relations What are the benefits of advertising compared to public relations? What are some of the unique benefits of public relations? Which has greater credibility with consumers? How do you justify hiring a public relations and advertising agency to manage your company’s external communication?

12. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Personal Selling... Paid personal communications that attempts to inform customers about products & persuade them to purchase Personalized & costly form of communication Requires a highly skilled & well trained salesforce

13. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Personal Selling Activities... Finding prospects Informing prospects Persuading prospects to buy Keeping current customers satisfied

14. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Sales Promotion... Any activity or object that acts as an incentive or inducement providing value for a buyer All promotional & communication activities, other than personal selling, advertising, & public relations

15. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Consumer Sales Promotion Methods... Coupons Demonstrations Frequent user incentive programs Point of purchase displays Free samples Consumer contests, games & sweepstakes

16. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Business-to-Business Trade Sales Promotion Buying allowance –temporary price reduction (by quantity) Buy-back allowance –money to a reseller for each unit bought Merchandise allowance –manufacturers paying resellers for promotional efforts Cooperative advertising Sales contests