Download INTEGRATED MARKETING COMMUNICATIONS, ADVERTISING, AND

Chapter 16
INTEGRATED
MARKETING
COMMUNICATIONS,
ADVERTISING, AND
PUBLIC RELATIONS
© 2014 Cengage Learning. All Rights Reserved. May
not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part.
1
Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Objectives
1. Define integrated marketing
communications and explain how it
relates to the development of an optimal
promotional mix.
2. Describe the communication process and
how it relates to the AIDA concept.
3. Identify the elements of the promotional
mix.
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Objectives
4. Name the three major advertising
objectives and the two basic categories of
advertising.
5. Identify the major advertising strategies
and the process of creating an
advertisement.
6. Describe the major types of advertising
appeals, and discuss their uses.
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Objectives
7. List and compare the major advertising
media.
8. Explain the roles of public relations,
publicity, cross-promotion, and ethics in
an organization’s promotional strategy.
9. Discuss the factors that influence the
effectiveness of a promotional mix, and
how marketers measure effectiveness.
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Introduction
▮Promotion - Function of informing,
persuading, and influencing the consumer’s
purchase decision
▮Marketing communications - Messages
that deal with buyer-seller relationships
▮Integrated marketing communications
(IMC) - Coordination of all promotional
activities to produce a unified, customerfocused promotional message
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Figure 16.1 - Integrated Marketing
Communications (IMC)
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Importance of Teamwork
▮Teamwork involves both in-house resources
and outside vendors
▮IMC challenges the traditional role of the
outside advertising agency
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Role of Databases in Effective IMC
Programs
▮The Internet allows companies to gather
information faster and organize it easily
▮Direct sampling is a frequently used method
to obtain customer opinions
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
The Communication Process
▮Sender - Source of the message
communicated to the receiver
▮Message - Communication of information,
advice, or a request by the sender to the
receiver
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
The Communication Process
▮An effective message does three things
• Gains the receiver’s attention
• Achieves understanding by both sender and
receiver
• Stimulates receiver’s needs and suggests
appropriate methods of satisfying them
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
The Communication Process
▮AIDA - Steps through which an individual
reaches a purchase decision: attention,
interest, desire, and action
▮Encoding - Translating a message into
understandable terms
▮Decoding - Receiver’s interpretation of a
message
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Table 16.1 - Relating Promotion to the
Communication Process
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
The Communication Process
▮Feedback - Receiver’s response to a
message
▮Noise - Interference at some stage in the
communication process
▮Channel - Medium through which a message
is delivered
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Elements of the Promotional Mix
▮Promotional mix - Subset of the marketing
mix in which marketers attempt to:
• Achieve the optimal blending of the elements of
personal and nonpersonal selling to achieve
promotional objectives
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Personal Selling
▮Interpersonal influence process involving a
seller’s promotional presentation conducted
on a person-to-person basis with the buyer
▮Oldest form of promotion
▮Currently, nearly 15 million people in the
U.S. have careers in personal sales and
related occupations
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Nonpersonal Selling
▮Advertising - Any paid, nonpersonal
communication about a business good
▮Product placement - Marketer pays a
motion picture owner a fee to display his or
her product prominently in the film or show
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Nonpersonal Selling
▮Sales promotion - Marketing activities that
stimulate consumer purchasing and dealer
effectiveness
• Does not include personal selling, advertising,
guerrilla marketing, and public relations
• Trade promotion - Sales promotion geared to
marketing intermediaries
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Nonpersonal Selling
▮Direct marketing - Use of direct
communication to a consumer or business
recipient designed to generate a response in
the form of:
• An order
• Lead generation
• Traffic generation
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Nonpersonal Selling
▮Public relations - Firm’s communications
and relationships with its various publics
▮Publicity - Nonpersonal stimulation of
demand for a good by unpaid placement of
significant news
▮Guerrilla marketing - Unconventional,
innovative, and low-cost techniques to get
consumers’ attention
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Table 16.2 - Promotional Mix Elements: A
Comparison
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Sponsorships
▮Relationship in which an organization
provides funds to an event in exchange for a
direct association with that event
▮Sponsor purchases:
• Access to the event’s audience
• The image associated with the activity
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
How Sponsorship Differs from Advertising
▮Cost-effectiveness
▮Sponsor’s degree of control versus that of
advertising
▮Nature of the message
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Types of Advertising
▮Product advertising - Nonpersonal selling
of a particular good or service
▮Institutional advertising - Promotion of a
concept, an idea, a philosophy, or the
goodwill of an industry, company,
organization, person, geographic location,
or government agency
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Objectives of Advertising
▮Informative advertising - Seeks to develop
initial demand for a good, service,
organization, person, place, idea, or cause
▮Persuasive advertising - Attempts to
increase demand for an existing good,
service, organization, person, place, idea, or
cause
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Objectives of Advertising
▮Reminder advertising - Reinforces
previous promotional activity by keeping
the name of a good, service, organization,
person, place, idea, or cause before the
public
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Figure 16.2 - Advertising Objectives in
Relation to Stage in the Product Lifecycle
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Advertising Strategies
▮Comparative advertising - Emphasizes
messages with direct or indirect
promotional comparisons between
competing brands
• Used by firms whose products are not market
leaders
• Advertising by market leaders seldom
acknowledge existence of competing products
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Advertising Strategies
▮Celebrity testimonials
• Can improve product recognition
• A celebrity who endorses too many products
may create marketplace confusion
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Advertising Strategies
▮Retail advertising - Advertising by stores
that sell goods or services directly to the
consuming public
• Cooperative advertising - Retailer shares
advertising costs with a manufacturer or
wholesaler
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Interactive Advertising
▮Two-way promotional messages
transmitted through communication
channels
• Induce message recipients to participate
actively in the promotional effort
▮Provides information throughout the
purchase and consumption processes
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Creating an Advertisement
▮Must create effective ads that increase sales
and enhance the organization’s image
▮An ad needs to accomplish:
• Educating consumers about product features
• Enhancing brand loyalty
• Improving consumer perception of the brand
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Figure 16.3 - Elements of the Advertising
Planning Process
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Advertising Messages
▮Advertising campaign - Series of different
but related ads that use a single theme and
appear in different media within a specified
time period
• Example: Retail chain Target’s “Hello. . . . Good
Buy” ads featuring the Beatles’ music
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Advertising Appeals
▮Fear appeals
▮Humor in advertising messages
▮Ads based on sex
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Developing and Preparing Ads
▮Goals
• Gain attention and interest
• Inform or persuade
• Lead to purchase or other desired action
▮After conceiving an idea, ads must be
refined from rough sketch to finished layout
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Figure 16.4 - Elements of a Typical Ad
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Creating Interactive Ads
▮Advergames
▮Missiles
▮Keyword ads
▮Adware
▮Social network advertising
▮Narrowcasting
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Media Selection and Scheduling
▮Television
• Mass coverage
• Powerful impact on viewers, repetition of
messages
• Flexibility, and prestige
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Media Selection and Scheduling
▮Radio
• Advantages
• Ability to reach people while they drive because they
are a captive audience
• Benefits include low cost, flexibility, and mobility
• Disadvantages
• Highly segmented audiences,
• The temporary nature of messages
• A minimum of research information compared with
television
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Media Selection and Scheduling
▮Newspapers
• Advantages
• Flexible
• Intensive coverage for ads
• Can refer back to newspaper ads
• Disadvantages
• Hasty reading
• Relatively poor reproduction quality
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Media Selection and Scheduling
▮Magazines
• Consumer magazines and business magazines
• Advantages
•
•
•
•
The ability to reach precise target markets
Quality reproduction
Long life
Prestige associated with some magazines
• Disadvantage
• Lack flexibility
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Media Selection and Scheduling
▮Direct mail
• Advantages
• Ability to segment large numbers of prospective
customers
• Flexible
• Detailed information
• Personalization
• Disadvantages
• High cost per reader
• Reliance on the quality of mailing lists
• Consumers’ resistance
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Media Selection and Scheduling
▮Outdoor advertising
• Traditional - Billboards and painted displays
• Transit advertising - Ads placed inside and
outside buses, subway trains, commuter trains,
and stations
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Media Selection and Scheduling
▮Interactive Media
• Internet and social media sites
• Augmented reality - Virtual imaging can be
incorporated into real-time video on a mobile
phone
▮Other Advertising Media
• Total Immersion’s D’Fusion system
• Ads appear on T-shirts, on store flooring, in
printed programs of live theater productions,
and as previews on movie DVDs
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Media Scheduling
▮Setting the timing and sequence for a series
of advertisements
▮Influenced by a variety of factors
• Seasonal sales patterns
• Repurchase cycles
• Competitors’ activities
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Marketing and Nonmarketing Public
Relations
▮Nonmarketing public relations - A
company’s messages about general
management issues
▮Marketing public relations (MPR) Focused public relations activities that
directly support marketing goals
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Publicity
▮Nonpersonal stimulation of demand for a
good by unpaid placement of significant
news
▮Many consumers consider news stories
more credible than advertisements
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Cross-Promotion
▮Marketing partners share the cost of a
promotional campaign that meets their
mutual needs
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Ethics and Promotional Strategies
▮Advertising to children
▮Insertion of product messages in media
programs without full disclosure
▮Use of cookies in online advertising
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Puffery and Deception
▮Puffery
• Exaggerated claims of a product’s superiority
• Use of subjective or vague statements that may
not be literally true
▮The Uniform Commercial Code
standardizes sales and business practices
throughout the United States
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Ethics in Public Relations
▮Issues include performing services for
companies that produce unsafe products
▮The Public Relations Society of America’s
Code of Professional Standards prohibits:
• Promoting products or causes widely known to
be harmful
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Promotional Mix Effectiveness
▮Marketers create a promotional mix by:
•
•
•
•
Blending advertising
Personal selling
Sales promotion
Public relations
▮Several factors can influence the
effectiveness of promotional mix
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
52
Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Nature of the Market
▮Market’s target audience
▮Personal selling can be highly effective if the
market has a limited number of buyers
▮Type of customer
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Nature of the Product
▮Consumer products rely more on
advertising than business products
▮Personal selling is important for shopping
products
▮Personal and nonpersonal selling are
important in the promotion of specialty
items
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Stage in the Product Lifecycle
▮Introduction - Nonpersonal and personal
selling
▮Growth and maturity - Advertising and
personal selling
▮Maturity and early - Reduction in
advertising and sales promotion
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Price
▮Advertising dominates for low-unit-value
products
▮Personal selling involves high per-contact
costs
▮A real barrier in implementing any
promotional strategy is the size of the
promotional budget
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Funds Available for Promotion
▮Percentage-of-sales method
▮Fixed-sum-per-unit method
▮Meeting competition method
▮Task-objective method
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Evaluating Promotional Effectiveness
▮Direct sales results test
▮Indirect evaluation
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Measuring Advertising Effectiveness
▮Cost per thousand impressions (CPM)
▮By measuring promotional effectiveness:
• Organizations can evaluate different strategies
• Prevent mistakes before spending money on
specific programs
• Improve their promotional programs
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Media and Message Research
▮Media research - Assesses how well a
particular medium delivers a message
▮Message research - Tests consumer
reactions to an advertisement’s creative
message
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Media and Message Research
▮Pretesting
▮Posttesting
•
•
•
•
Readership tests
Unaided recall tests
Inquiry tests
Split runs - Allow advertisers to test two or
more ads at the same time
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Measuring Public Relations Effectiveness
▮The simplest and least costly method
• Whether the target audience received messages
directed to them
• Count the number of media placements and
gauge the extent of media coverage
▮Conduct focus groups, interview opinion
leaders
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Evaluating Interactive Media
▮Hits - User requests for a file
▮Impressions - Number of times a viewer
sees an ad
▮Click-throughs - User clicks ad for more
information
▮View-through - Measures response over
time
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Evaluating Interactive Media
▮Cost per impression - Relates the cost of
an ad to every thousand people who view it
▮Cost per response (click-through) Relates the cost of an ad to the number of
people who click it
▮Conversion rate - Percentage of visitors to
a Web site who make a purchase
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Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations
Pepe’s Pizzeria Video
http://www.cengage.com/marketing/book_content/boone_9781133628460
/videos/ch16.html
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