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Chapter Eight
Integrated Marketing
Communications: Advertising, Sales
Promotion, Public Relations, and
Direct Marketing
Key Words / Outline
Advertising, Sales promotion, Public relations, Direct marketing, Personal selling,
Marketing communications, Creating awareness Aiding comprehension, Developing
conviction, Percent of sale, Over unit expenditure, Competitive parity, The task
approach, Pull strategy, Push strategy, Trade promotion, Frequency marketing
program
McGraw-Hill/Irwin
Marketing Management, 8e
© 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
Strategic Goals Of Marketing
Communication
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Create awareness
Build positive images
Identify prospects
Build channel relationships
Retain customers
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Promotional Mix
• Promotional mix incorporates the combination and types of non-personal and
personal communication the organization employs during a specified period
Non-personal
communication
Personal
communication
Advertising
Personal selling
Sales promotion
Public relations
Direct marketing
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Promotional Mix
• Advertising
- Strengths
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Efficient for reaching many buyers simultaneously
Effective way to create image of the brand
Flexible
Variety of media to choose from
- Weaknesses
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Reaches many people who are not potential buyers
Ads are subject to criticism
Exposure time is short
People tend to screen out advertisements
Total cost is high
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Promotional Mix
• Personal selling
- Strengths
• Salespeople can be persuasive and influential
• Two-way communication allows for questions and other
feedback
• Message can be targeted to specific individuals weaknesses
- Weaknesses
• Cost per contact is high
• Salespeople may be hard to recruit and motivate
• Presentation skills may vary between salespeople
8-6
Promotional Mix
• Sales promotion
- Strengths
• Supports short-term price reductions designed to stimulate
debate
• Variety of sales promotion tools available
• Effective in changing short-term behavior
• Easy link to other communications
- Weaknesses
• Risk inducing brand-loyal customers to stock up while not
inducing others
• Impact may be limited to short-term
• Price-related sales promotion may hurt brand image
• Easy for competitors to copy
8-7
Promotional Mix
• Public relations
- Strengths
• Total cost may be low
• Media-generated stories seen as more credible than marketersponsored messages
- Weaknesses
• Media may not cooperate
• Heavy competition for media attention
• Marketer has little control over the message
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Promotional Mix
• Direct marketing
- Strengths
• Message can be customized and prepared quickly
• Can facilitate a relationship with customer
- Weaknesses
• Managing and maintaining accurate database can be costly
• Often low customer response
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Buyer Impact
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Potential buyers go through a process
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Awareness of the product
Comprehension of what it can do and important features
Conviction that it has value for them
Ordering on the part of a sufficient number of potential buyers
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Using Integrated Marketing Communication
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Traditional approach – Focus on
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Making Transactions
Customers
Independent brand messages
Mass media – monologue with customers
Product claims
Adjusting prior year’s plan
Functional department planning and monitoring
Communication specialists
Mass marketing and customer acquisition
Stable of agencies
8 - 11
Using Integrated Marketing
Communication
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Integrated approach – Focus on
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Building/nourishing relationships
All stakeholders in the organizations
Strategic consistency on brand messages
Interactivity – dialogue with customers
Corporate mission marketing
Zero-based campaign planning
Cross-functional planning and monitoring
Creating core competencies
Building and managing databases to retain customers
One communication management agency
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Buyer Impact
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Advertising Approaches
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The generalist viewpoint is primarily concerned with sales,
profits, and return on investment
The middle viewpoint sees advertising as a competitive
weapon
The specialist viewpoint is concerned with the effects of
specific ads or campaigns
8 - 14
Developing Advertising Objectives
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Does advertising aim at immediate sales?
Does advertising aim at near-term sales?
Does advertising aim at building long-range customer
franchise?
Does advertising aim at helping increase sales?
Does advertising aim at some specific step that leads to
sale?
8 - 15
Developing Advertising Objectives
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How important are supplementary benefits of
advertising?
Should advertising impart information needed to
consummate sales and build customer satisfaction?
Should advertising build confidence and goodwill for the
corporation?
What kind of images does the company wish to build?
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Budgeting Approach
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Percent of sales
Per-unit expenditure
All you can afford
Competitive parity
The research approach
The task approach
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The Eight-M Formula
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Who will manage the advertising program?
Budget on advertising as opposed to other forms of
communication
To whom should the advertising be directed?
What should the ads says about the product?
Types of combination of media to be used
Longevity of the ads before changing ads or themes
Timing factor for the ad to appear during the course of
campaign
Measuring the effectiveness of the campaign and how the
campaign be evaluated and controlled
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Budget Allocation
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A successful campaign has two related tasks
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Message strategy: Say the right things in ads itself
Media mix: Use the appropriate media in right amounts at the
right time to reach the target market
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Budget Allocation: Message Strategy
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Who the firm’s customers and potential customers are;
their demographic and psychological characteristics?
How many such customers there are?
How much of the firm’s type and brand of the product
are they currently buying and can reasonably be expected
in the future?
Which individuals, other than customers and potential
customers, influence purchasing decisions?
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Budget Allocation: Message Strategy
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Where customers buy the firm’s brand product?
When customers buy and frequency of purchase?
Which competitive brands they buy and frequency of
purchase?
How do they use the product?
Why they buy particular types and brands of products?
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Budget Allocation: Media Mix
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Measures of media effectiveness include
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Reach – number of targeted audience members exposed at least
once to the advertiser’s message
Frequency – number of times they are exposed
Cost per thousand – based on a number of visits (to a website,
for example)
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Media Review
• Newspapers
- Advantages
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Flexible and timely
Intense coverage of local markets
Broad acceptance and use
High believability of printed word
- Disadvantages
• Short life
• Read hastily
• Small “pass-along” audience
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Media Review
• Radio
- Advantages
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Mass use
Audience selectivity via station format
Low cost
Geographic flexibility
- Disadvantages
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Audio presentation only
Less attention than TV
Chaotic buying
Short life
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Media Review
• Outdoor
- Advantages
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Flexible
Relative absence of competing advertisements
Repeat exposure
Relatively inexpensive
- Disadvantages
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Creative limitations
Many distractions for viewer
Public attack (ecological)
No selectivity of audience
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Media Review
• Television
- Advantages
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Combination of sight, sound and motion
Appeals to senses
Mass audience coverage
Psychology of attention
- Disadvantages
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Insecurity of audience retention
Fleeting impressions
Short life
Expensive
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Media Review
• Magazines
- Advantages
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High geographic and demographic selectivity
Psychology of attention
Quality of reproduction
Pass-along readership
- Disadvantages
• Long closing periods
• Some waste circulation
• No guarantee of position
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Media Review
• Direct mail
- Advantages
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Audience selectivity
Flexible
No competition from competing advertisements
Personalized
- Disadvantages
• Relatively high cost
• Consumers often pay little or no attention to direct mail
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Media Review
• Internet
- Advantages
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Interactive
Low cost per exposure
Ads can be placed in interest sections
Timely
High information content possible
New favorable medium
- Disadvantages
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Low attention getting
Short message life
Readers selects exposure
May be perceived as intruding
Subject to download speeds
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Evaluation Procedures
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Specific advertisements
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Recognition tests
Recall tests
Opinion tests
Theatre tests
Specific advertising objectives
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Awareness
Attitude
Motivational impact
Intention to buy
Market test
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Sales Promotion
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Effective sales promotion moves consumers to
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Obtain a trial product
Consider new or improved product
Repeat or increase current usage
Come into a retail stores
Expand the total number of users of an established product lines
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Sales Promotion
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An effective sales promotion motivates salespeople by
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Motivating sales force
Educating the sales force about product improvements
Stabilizing a fluctuating sales pattern
An effective sales promotion motivates resellers to
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Increase inventories
Obtain displays and other support products
Improve product distribution
Obtain more and better shelf life
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Push Versus Pull Marketing
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Push Versus Pull Marketing
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Trade Promotion Rationale
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To convince retailer’s to carry the manufacturer’s
products
To reduce the manufacturer’s and increase the
distributors or retailer’s inventories
To support advertising and consumer sales promotion
To encourage retailers to give the product more favorable
shelf space
To serve as a reward for past sales efforts
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Consumer Promotion Rationale
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To induce the customer to try the product
To reward customers for brand loyalty
To encourage the customer to trade up or try larger sizes
of the product
To stimulate repeat purchases
To react to competitor efforts
To reinforce other selling efforts
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Consumer Promotion Rationale
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PR/Publicity
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News release or press release
News conference
Sponsorship
Public service announcements (PSA)
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Direct Marketing
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Online
Direct Mail
Catalogs
Direct Response
Personal Selling
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