Download Integrated Marketing Communications

Chapter 10
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Integrated Marketing Communications
Marketing Management
Ch-10 Integrated Marketing Communications
Learning Objectives
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Discuss the role of promotion in marketing
mix
Discuss the elements of promotion mix
Describe the communication process
Explain the goals and tasks of promotion
AIDA concept
Promotional mix
Integrated Marketing communications
Marketing Management
Ch-10 Integrated Marketing Communications
Promotion
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Is communication by marketers that informs,
persuades, and reminds potential buyers of a
product in order to influence an opinion or
elicit a response
Promotion
communicates
information
between seller and potential buyer or others
in the channel to influence attitudes and
behavior
Marketing Management
Ch-10 Integrated Marketing Communications
Promotion Strategy
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Is a coordinated plan for the optimal use of
the elements of promotion
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Advertising
Personal selling
Sales promotion
Public relations
Marketing Management
Ch-10 Integrated Marketing Communications
The Promotional Mix
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Advertising
Public relations
Personal Selling
Sales Promotion
Marketing Management
Ch-10 Integrated Marketing Communications
Advertising
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Is
an
impersonal
one-way
mass
communication
about
a
product
or
organization that is paid for by the sponsor
Advertising is the main route to building a
quality, differentiated image for a product
Marketing Management
Ch-10 Integrated Marketing Communications
Public Relations
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Is the marketing function that evaluates
public attitudes , identifies areas within the
organization that the public may be interested
in ,and executes a program of action to earn
public understanding and acceptance
Marketing Management
Ch-10 Integrated Marketing Communications
Publicity
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Is public information about a company, good
or service, appearing in the mass media as a
news item.
Although publicity does not require paid
media space or time, public relations employs
who organized and distribute news generate
a cost
Marketing Management
Ch-10 Integrated Marketing Communications
Sales Promotion
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Consists of all marketing activities other than
personal selling, and public relations-that
stimulate consumer purchasing and dealer
effectiveness
Can be aimed at consumers, trade
customers, or a company’s employees,
Examples include free samples, contests,
bonuses, trade shows, and coupons
Marketing Management
Ch-10 Integrated Marketing Communications
Personal Selling
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Is a
situation in which two people
communicate in an attempt to influence each
other in a purchase situation. Personal selling
is the direct spoken communication between
sellers and potential customers . Flexibility is
the strength of personal selling in
communication mix
Marketing Management
Ch-10 Integrated Marketing Communications
Communication
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Is the process by which we exchange or
share meanings through a common set of
symbols
Interpersonal communication
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Is direct, face to face communication between tow
or more people
Mass Communication
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Refers to communicating to large audiences
usually through a mass medium such as
television or newspaper
Marketing Management
Ch-10 Integrated Marketing Communications
The Communication Process
Marketing Management
Ch-10 Integrated Marketing Communications
The Communication Process
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Sender
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Message Channel
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Is the originator, or source, of the message in the
communication process
Such as a voice, gesture, or newspaper
Encoding
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Is the conversion of the sender’s ideas and
thought into a message
Marketing Management
Ch-10 Integrated Marketing Communications
The Communication Process
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Receiver
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Decoding
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Is the interpretation of the language and symbols sent by
the source through a channel
Feedback
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Could be the target audience and is the person who
decodes the message
Response to message
Noise
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Is anything that interferes with ,distorts, or slows the
transmission of information
Marketing Management
Ch-10 Integrated Marketing Communications
Informative Promotion
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Explains the purpose and benefits of a good
or service
More complex products often require
informative promotion that explain benefits
IBM decided to use informative ads because
it is selling technical products
Marketing Management
Ch-10 Integrated Marketing Communications
Persuasive Promotion
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Normally becomes the primary promotion
goal when the product enters the growth
stage of the product life cycle
The aim of persuasion is to convince the
customer to buy the company’s brand rather
than the competitor’s brand
Marketing Management
Ch-10 Integrated Marketing Communications
Reminder Promotion
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This type of advertising is common during the
maturity stage of the product life cycle
The purpose of these ads is to trigger
memory
Marketing Management
Ch-10 Integrated Marketing Communications
AIDA Concept
Marketing Management
Ch-10 Integrated Marketing Communications
AIDA Concept
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Assumes that promotion propels consumers along
four steps in the purchase decision process
The advertiser must first gain the attention of the
target market
The next step is to create interest in the product
The desire to purchase the product is the third step
in the process
Action is the final step in the purchase decision
process
Marketing Management
Ch-10 Integrated Marketing Communications
AIDA and Promotional Mix
Aware Interest
ness
Desire
Action
Advertising
Very
Effective
Very
Effective
Somewhat
Effective
Not
effective
Public
Relations
Sales
Promotion
Personal
Selling
Very
Effective
Very
Effective
Very
Effective
Not
effective
Somewhat
Effective
Somewhat
Effective
Very
Effective
Very
Effective
Somewhat
Effective
Very
Effective
Very
Effective
Somewhat
Effective
Marketing Management
Ch-10 Integrated Marketing Communications
Factors affecting choice of
Promotional Mix
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Nature of product
Stage in PLC
Target market factors
Type of buying decision
Promotional funds
Push or pull strategy
Marketing Management
Ch-10 Integrated Marketing Communications
Nature Of the Product
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The characteristics of the product influence
the promotional mix
Industry product
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Expensive,
complex,
personal selling
customized
requires
Consumer Product
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Are promoted mainly through advertising to create
brand familiarity
Marketing Management
Ch-10 Integrated Marketing Communications
Stage In PLC
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Before Introduction
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Introduction
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Heavy promotion
Growth Phase
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Small amounts of advertising and publicity inform
the public
Persuasive promotion
Maturity
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Decrease in promotion
Marketing Management
Ch-10 Integrated Marketing Communications
Type of Buying Decision
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Advertising and sales promotion are most
effective for routine decisions
Personal selling is used in complex buying
decisions
Marketing Management
Ch-10 Integrated Marketing Communications
Available Funds
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A lack of money may force a firms to rely on
publicity or commission –only manufacturer’s
sales agents
When funds are available a firm will generally
try to optimize its return on promotion dollars
while minimizing the cost per contact, the
cost of reaching one member of the target
market
Marketing Management
Ch-10 Integrated Marketing Communications
Push & Pull Strategy
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Push Strategy
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Uses aggressive personal selling and trade
advertising to convince wholesalers and retailers
to carry and sell the merchandise
Pull Strategy
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Stimulates consumer demand with consumer
advertising and special promotions and thus
obtains product distribution
Marketing Management
Ch-10 Integrated Marketing Communications
Integrated Marketing
Communications
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Is the method of carefully coordinating all
promotional activities to produce a consistent,
unified messages that is customer focused
Interest
in
integrated
marketing
communications is largely reaction to the
scrutiny that marketing communications has
come under and to suggestions that the lack
of coordination leads to waste and
inefficiency
Marketing Management
Ch-10 Integrated Marketing Communications
Setting Promotion Budget
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Size of the budget affects promotion
efficiency and blend
Budgeting for promotion- 50 % , 30 %, or 10
% is better than nothing
Find the task, budget for it
Objective and task method
Task method can lead to budgeting without
agony
Marketing Management
Ch-10 Integrated Marketing Communications
Summary
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Promotion is communication by marketers
that informs, persuades, and reminds
potential buyers of a product in order to
influence an opinion or elicit a response
elements of promotion includes Advertising,
Personal selling, Sales promotion, Public
relations
Communication is the process by which we
exchange or share meanings through a
common set of symbols
Marketing Management
Ch-10 Integrated Marketing Communications
Summary
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AIDA concepts assumes that promotion
propels consumers along four steps in the
purchase decision process
Integrated Marketing Communication is the
method of carefully coordinating all
promotional activities to produce a consistent,
unified messages that is customer focused
Marketing Management
Ch-10 Integrated Marketing Communications