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Kotler, Armstrong
Principles of Marketing 4e
Chapter 12
IMC: Advertising and Public
Relations
Chapter Objectives (1)
1. Describe integrated marketing communication
(IMC) and classify IMC media, tools and
technologies.
2. Outline the steps in developing IMC, including
identifying a target audience and determining the
response sought.
3. Describe the communication process: selecting a
message, choosing the media, selecting a
message source and collecting feedback.
4. Define the ways of setting an IMC budget:
affordable, percentage-of-sales, competitive parity
and objective-and-task methods.
Chapter Objectives (2)
5. Explain the nature of each IMC tool – advertising,
public relations, direct and digital marketing, sales
promotion and personal selling- and the factors
involved when setting the IMC program: type of
product and market, push versus pull strategies,
buyer-readiness states and product life-cycle
stage.
6. Describe the nature of media advertising, including
the main decisions involved: advertising budgeting,
setting strategy, creative execution, media
selection and evaluation in terms of
communication and sales outcomes.
Chapter Objectives (3)
7. Define public relations and outline the more
common forms of this IMC tool.
8. Explain the need for socially responsible
marketing communication and describe how
this is achieved.
Integrated Marketing Communication
(IMC)
• IMC entails co-ordinating the organisation’s
promotional efforts using such major communication
elements as:
–
–
–
–
–
Advertising.
Sales promotion.
Public relations.
Direct and online marketing.
Personal selling.
• An organisation’s integrated marketing
communication program consists of a specific blend
of the above mentioned elements that will most
effectively meet objectives such as to inform,
persuade, and remind consumers as well as to
reinforce their attitudes and perceptions.
Classifying IMC Media, Tools and
Technologies
• Mass Communication:
– The use of mass media such as free to air
television, radio, newspapers and magazines,
as well as cinema and outdoor media.
• Advertising:
– Any paid form of non-personal presentation
and promotion of ideas, goods or services by
an identified sponsor.
Table 12.1 A Classification of IMC
Media
Figure 12.1 The Marketing
Communication System
Steps in Developing Integrated
Marketing Communication
• Marketers need to understand how
communication works.
• Communication involves nine elements:
– The two major parties are the sender and the
receiver of the information.
– Two major communications tools are the
message and media.
– Four major communication functions are
encoding, decoding, response and feedback.
Elements in the Communications
Process (1)
1. Sender. The party sending the message to another
party.
2. Encoding. The process of putting thought into
symbolic form.
3. Message. The set of symbols that the sender
transmits-the actual advertisement.
4. Media. The communication channels through
which the message moves from sender to
receiver.
5. Decoding. The process by which the receiver
assigns meaning to the symbols encoded by the
sender-a consumer watches the ad and interprets
the words and illustrations it contains.
Elements in the Communications
Process (2)
6. Receiver. The party receiving the message sent by
another party-the consumer who watches the ad.
7. Response. The reactions of the receiver after
being exposed to the message-any of hundreds of
possible responses.
8. Feedback. That part of the receiver's response
communicated back to the sender- research
shows that consumers like and remember the ad.
9. Noise. The unplanned static or distortion during
the communication process that results in the
receiver getting a different message from the one
which the sender sent.
Figure 12.2 Elements in the
Communication Process
Table 12.2 Steps in Developing
IMC
Figure 12.3 Buyer-readiness States
Determine Response Sought
• Awareness
– The communicator must be able to gauge the target audience’s
awareness of the product or organisation.
• Knowledge
– Communicators need to learn the target audience’s level of knowledge.
• Liking
– How much does the target audience like the product?
• Preference
– Does the target audience prefer the product to others?
• Conviction
– The communicator must build the target’s conviction about buying the
product.
• Purchase
– The communicator leads the target to purchase.
Figure 12.4 Brand and Corporate
Image Reputation Pyramid
Selecting a Message
• Ideally the message should:
– Get Attention
– Hold Interest
– Arouse Desires
– Obtain Action
(A framework known as the AIDA model)
Selecting a Message: Message
Content
• Rational Appeals
– Relate to the audience’s self interest. They show how the
product will produce the desires benefits.
• Emotional Appeals
– These stir up positive or negative emotions that can
motivate purchase.
• Moral Appeals
– These are directed to the audience’s sense of what is right
and proper.
• Message Structure
• Message Format
An advertising message should get attention, hold
interest, arouse desire, and obtain action according
to the model known as:
A.
B.
C.
D.
E.
AIDA
ACTA
promotional
communication
ADIA
Selecting a Message
• Message Structure-there are three messagestructure issues:
– Whether to draw a conclusion or leave it to the audience?
– Whether to present a one-sided or two-sided argument?
– Whether to present the strongest argument first or last?
• Message Format
– The communicator needs a strong format for the message.
– In print ads, the communicator decides on the headline,
copy, illustration and colour.
– For radio, the communicator chooses words, sounds and
voices.
– For TV, all elements plus body language have to be
planned.
Choosing Media
• Personal Communication channels
– Channels through which two or more people
communicate directly with each other, including
face-to-face, person-to-audience, over the
telephone or through the mail.
• Non-personal communication channels
– Channels that carry messages without personal
contact or feedback, including media, atmosphere
and events.
Selecting the Message Source
• The message’s impact on the audience is
also affected by how the audience views the
sender.
• Messages delivered by highly credible
sources are more persuasive e.g.
professionals, actors and athletes.
• Sources are made credible by expertise,
trustworthiness, and likeableness.
Collecting Feedback
• After sending the message, the
communicator must gauge its effect on the
target audience – do they remember the
message? What points are recalled? How
they felt about the message and their past
and present attitudes to the product and
company.
Figure 12.5 Current Consumer
States for Two Brands
Setting the IMC Budget and Mix
• Four common methods used to set
the total budget for advertising:
1.affordable method
2.percentage-of-sales method
3.competitive-parity method
4.objective-and-task method
Of the following, the one that is not one of the four
common methods used to set the advertising
budget is:
A.
B.
C.
D.
E.
affordable method
percentage-of-sales method
bottom-up approach
objective-and-task method
follow-the-market-leader method
Setting the IMC Mix
• The marketing organisation must now divide
the total marketing communication budget
among the major marketing communication
categories specific media, tools and
technologies:
–
–
–
–
–
Media advertising
Public relations
Sales promotion
Direct and digital marketing
Personal selling
Considerations in Developing Integrated
Marketing Communication
• Companies consider many factors when
developing their IMC program, including type
of product and market, ‘push versus pull’
strategy, buyer-readiness state and product
life cycle stage.
• A push strategy involves pushing the product
through marketing channels to final
consumers.
• A pull strategy directs marketing activities
towards final consumers to induce them to
buy the product.
Advertising
• Advertising can be traced back to the very
beginnings of recorded history. Early
Greeks, Romans and Phoenicians used
advertising to inform and sell.
• Modern marketing is very different with
$10 billion being spent each year on
advertising in Australia alone.
The Main Decisions in Advertising
•
•
•
•
Advertising Objective
Budget Decisions
Message Decisions
Media Decisions
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.
• Advertising objectives can be classified by
purpose: whether their aim is to inform,
persuade or remind. Resulting in:
–
–
–
–
Informative advertising.
Persuasive advertising.
Comparison advertising.
Reminder advertising.
Figure 12.7 The Main Advertising
Decisions
Figure 12.8 Possible Advertising
Objectives
Setting the Advertising Budget
• After determining its advertising objectives, the
company can next set its advertising budget for
each product. The role of advertising is to affect
demand for a product. The company wants to spend
the amount needed to achieve the sales goal.
Specific factors to consider include:
– Stage in the product life cycle: new products need larger
budgets.
– Market share: high market share brands usually need
more advertising spending as a percentage of sales.
– Competition and clutter: in a market with many
competitors, more advertising is necessary.
– Advertising frequency: many repetitions requires more
budget.
– Product differentiation: a brand that closely resembles
others requires more advertising to differentiate.
Developing an Advertising Strategy
• A large advertising budget does not
guarantee a successful advertising
campaign. Two advertisers can spend the
same amount on advertising yet have very
different results.
• The first step in creating effective advertising
messages is to decide what general message
will be communicated to consumers –the
message strategy.
Message Execution
• Slice-of-life: this style shows one or more people
using the product in a normal setting.
• Lifestyle: this style shows how a product fits in with a
lifestyle.
• Fantasy: this style creates a fantasy around the
product or its use.
• Mood or image: this style builds a mood or image
around the product, such as beauty, love or
serenity.
• Musical: this style shows one or more people or
cartoon characters singing a song about the
product.
Message Execution
• Personality symbol: this style creates a character
that represents the product.
• Technical expertise: this style shows the company’s
expertise in making the product.
• Scientific evidence: this style presents survey or
scientific evidence that the brand is better or better
liked than one or more other brands.
• Testimonial evidence: this style features a highly
believable or likeable source endorsing the product.
Selecting Advertising Media
• The advertiser next chooses advertising
media to carry the message.
• The four major steps in media selection are:
1.Deciding on reach, frequency and impact.
2.Selecting major media types.
3.Deciding on media timing.
4.Selecting specific media vehicles.
Table 12.7 Profiles of the Main
Media Types
Advertising Evaluation
• Measuring the communication effect (copy
testing).
• Three major methods of advertising pretesting:
– Direct rating
– Portfolio tests
– Laboratory tests
• Two popular methods of post-testing
advertisements:
– Recall tests
– Recognition tests
Measuring the Sales Effect
• For example: ‘What sales are caused by an ad that
increases brand awareness by 20% and brand
preference by 10%?’
• The sales effects of advertising are often harder to
measure than the communication effect as sales are
affected by many factors besides advertising.
• One way is to measure the sales effect of
advertising is to compare past sales with past
advertising expenditures, another is
experimentation.
• Measuring the results of advertising expenditure
remains inexact.
International Advertising Decisions
• The major decision is the degree to which global
advertising should be adapted to the unique
characteristics of various country markets.
• Standardisation has benefits such as lower costs
and greater coordination of global efforts but ignores
cultural differences.
• Most companies think globally and act locally.
• Costs and legislative requirements in different
countries need to be considered.
Public Relations Decisions
• Another major mass-communication tool is
public relations— it aims at building good
relations with the company’s various publics
using different tools:
–
–
–
–
–
–
Press relations
Product publicity
Public affairs
Lobbying
Investor relations
Development
Major Public Relations Tools
•
•
•
•
•
•
•
News
Speeches
Special events
Written materials
Audiovisual materials
Corporate identity materials
Community service activities
Socially Responsible Marketing
Communication
• Advertising
– Companies must avoid false or deceptive
advertising. Advertisers must not create ads that
have the capacity to deceive. Sellers must avoid
bait-and-switch advertising that attracts buyers
under false pretences.
• Personal selling
– Companies must ensure their salespeople follow
the rule of ‘fair competition’ when they sell the
products directly.
The component of the promotion mix that is the
most expensive per person reached is:
A.
B.
C.
D.
E.
personal selling
advertising
sales promotion
public relations
publicity
Socially Responsible Marketing
Communication
• Direct and Digital Marketing:
– Direct and digital marketers and their customers
usually enjoy mutually rewarding relationships.
– However, unfairness, deception and fraud are the
dark side that may emerge.
– The direct marketing industry has also faced
growing concerns about invasion of privacy
issues.