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Chapter 14
Integrated Marketing
Communication Strategy
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Marketing Communication Mix
or Promotion Mix
Product’s
Design
Product’s
Price
Stores that Sell
the Product
Product’s
Package
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Marketers Have Shifted
Away From Mass
Marketing
Less Broadcasting
Two Factors
are Changing the Face of Today’s
Marketing Communications:
Improvements in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting
Market Fragmentation Led to
Media Fragmentation
The Changing
Communications Environment
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The Need for Integrated
Marketing Communications
With Integrated Marketing
Communications (IMC), the Company
Carefully Integrates and Coordinates
Its Many Communications Channels to
Deliver a Clear, Consistent, and
Compelling Message About the
Organization and Its Product or Service.
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A View of the
Communications Process
Marketers View Communications as the
Management of the Customer Relationship Over
Time Through the Following Stages:
Preselling
Selling
PostConsumption
Consuming
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Elements in the Communication
Process (Fig. 14.2)
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Key Factors in Good
Communication
Sellers Need to
Know What Audiences
They Wish to Reach
and Response
Desired.
Sellers Must be Good
at Encoding Messages
That Target Audience
Can Decode.
Sellers Must Develop
Feedback Channels to
Assess Audience’s
Response to
Messages.
Sellers Must Send
Messages Through
Media that Reach
Target Audiences
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Steps in Developing Effective
Communication
Step 1. Identifying the Target Audience
Step 2. Determining the Communication Objectives
Buyer Readiness Stages
Awareness
Knowledge
This ad for the Toyota Celica
may be able to cover the first
three stages of the buyerreadines s s tages : aw arenes s,
knowledge, and liking.
There is no mention of
competitors , so it does not
seem to establish preference.
Liking
Preference
Conviction
Purchase
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Steps in Developing Effective
Communication
Step 3. Designing a Message
Is this ad making an emotional,
rational, or moral appeal, or is it
combining them? How much
do the personified cows
contribute to this ad?
Is the ad structured to let the
audience make a decision?
Is this an effective ad?
The same company puts lifelike
statues of cows, with this slogan,
into mall food courts. What
makes that practice effective?
Message Content
Rational Appeals
Emotional Appeals
Moral Appeals
Designing a
Message
Content
The pictures and the
slogan make this what
type of appeal?
Format
This layout, almost like
a yearbook or photo
album, reinforces the
sentimental aspect
of this advertisement.
Message Structure
Draw Conclusions
Argument Type
Argument Order
Message Format
Headline, Illustration,
Copy, & Color
Body Language
Click or press spacebar to return.
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Steps in Developing Effective
Communication
Step 4. Choosing Media
Personal Communication
Channels
Nonpersonal Communication
Channels
Step 5. Selecting the Message Source
Step 6. Collecting Feedback
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Setting the Total Promotion
Budget
One of the Hardest Marketing Decisions Facing a
Company is How Much to Spend on Promotion.
Affordable
Percentage of Sales
Based on What the
Company Can Afford
Based on a Certain Percentage
of Current or Forecasted Sales
Objective-and-Task
Competitive-Parity
Based on Determining
Objectives & Tasks, Then
Estimating Costs
Based on the Competitor’s
Promotion Budget
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Setting the Promotion Mix
Advertising
Reach Many Buyers, Repeat Message
Many Times, Impersonal, Expensive
Personal
Selling
Sales
Promotion
Public
Relations
Direct
Marketing
Personal Interaction, Relationship
Building, Most Expensive Promo Tool
Wide Assortment of Tools, Rewards
Quick Response, Efforts Short-Lived
Very Believable, Dramatize a Company
or Product, Underutilized
Nonpublic, Immediate, Customized,
Interactive
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Promotion Mix Strategies
Strategy that
Calls for
Spending A Lot
on Advertising
and Consumer
Promotion to
Build Up (Pull)
Consumer
Demand.
Strategy
Selected
Depends
on:
Type of
ProductMarket &
Product
Life-Cycle
Stage
Strategy that
Calls for Using
the Salesforce
and Trade
Promotion to
Push the
Product Through
the Channels.
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Discussion Connections
Describe the promotion mix of a
company like Kellogg, Coca-Cola,
Campbell, or some other consumer
goods producer.



What pull promotion elements does the
company use?
What push elements?
Are the company’s communications well
integrated?
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Socially Responsible
Marketing Communication
Advertising and Sales Promotion

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Companies must avoid false and deceptive
advertising.
Sellers must avoid bait-and-switch advertising.
Trade promotion activities are also closely
regulated.
Personal Selling
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Salespeople must follow the rules of “fair
competition”.
Three-day cooling-off rule
Salespeople must not disparage competitors.
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Review of Concept
Connections
Name and define the tools of the marketing
communication mix.
Discuss the process and advantages of
integrated marketing communication.
Outline the steps in developing effective
marketing communications.
Explain the methods for setting the
promotion budget and factors that affect
the design of the promotion mix.
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Chapter 15
Advertising, Sales Promotion, and
Public Relations
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Advertising
Advertising is centuries old.
U.S. advertisers spend in excess of $212
billion each year; worldwide spending
exceeds $414 billion.
Advertising is used by:

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Business firms,
Nonprofit organizations,
Professionals, and
Social agencies.
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What is Advertising?
Advertising is Any Paid Form of
Nonpersonal Presentation and
Promotion of Ideas, Goods, or
Services by an Identified
Sponsor.
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Major Advertising Decisions
(Fig. 15.1)
Message Decisions
•Message Strategy
•Message Execution
Objectives Setting
•Communication
objectives
•Sales Objectives
Budget Decisions
•Affordable Approach
•Percent of sales
•Competitive parity
•Objective and task
Campaign Evaluation
•Communication Impact
•Sales Impact
Media Decisions
•Reach, Frequency, Impact
•Major Media Types
•Specific Media Types
•Media Timing
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Setting Advertising Objectives
Informative Advertising
Persuasive Advertising
Inform Consumers or
Build Primary Demand
i.e CD Players
Build Selective Demand
i.e Sony CD Players
Advertising Objective
Specific Communication Task
Accomplished with a Specific
Target Audience
During a Specific Period of Time
Comparison Advertising
Reminder Advertising
Compares One Brand to
Another
i.e. Avis vs. Hertz
Keeps Consumers Thinking
About a Product
i.e. Coca-Cola
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Developing Advertising
Strategy
Advertising Strategy Consists of Two Major Elements
and Companies are Realizing the Benefits of Planning
These Two Elements Jointly.
Creating the
Advertising
Selecting the
Advertising Media
Messages
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Developing Advertising
Strategy: Creating Ad Messages
Plan a Message Strategy
General Message to Be Communicated to Customers
Develop a Message
Focus on
Customer Benefits
Creative Concept
“Big Idea”
Visualization or Phrase Advertising Appeals
Meaningful
Combination of Both
Believable
Distinctive
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Mes s a ge
Exe cut i o n
What type of message
execution do these two
ads employ?
Developing Advertising
Strategy: Message Execution
In both cases, what
dis tinguishes the
product from the
res t of the ad?
Click or p res s spacebar to retu rn.
Turning the “Big Idea” Into an Actual Ad to Capture the
Target Market’s Attention and Interest.
Testimonial Evidence
Scientific Evidence
Technical Expertise
Slice of Life
Typical
Message
Execution
Styles
Personality Symbol
Lifestyle
Fantasy
Mood or Image
Musical
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Advertising Strategy:
Selecting Advertising Media
Step 1. Decide on Reach, Frequency,
and Impact
Step 2. Choosing Among Major Media Types
Media Habits of Target Consumers,
Nature of the Product, Types of Message, Cost
Step 3. Selecting Specific Media Vehicles
Specific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality
Step 4. Deciding on Media Timing
Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
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Evaluating Advertising
Advertising Program Evaluation
Communication Effects
Sales Effects
Is the Ad Communicating Well?
Is the Ad Increasing Sales?
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Discussion Connections
Advertising objectives can be classified by
primary purpose: to inform, persuade, or
remind.
Using your local newspaper, find
examples of ads pursuing each of the
above.
Apply Table 15.1 to explain your answers.
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What is Sales Promotion ?
Sales Promotion is a Mass
Communication Technique That
Offers Short-Term Incentives to
Encourage Purchase or Sales of a
Product or Service.
Offers Reasons to Buy Now.
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Rapid Growth of Sales
Promotion
Sales promotion can take the form of consumer
promotions, business promotions, trade
promotions or sales force promotions.
Rapid growth in the industry has been achieved
because:
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
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Product managers are facing more pressure to
increase their current sales,
Companies face more competition,
Advertising efficiency has declined,
Consumers have become more deal oriented.
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Sales Promotion Objectives
Increase short-term sales or help build
long-term market share.
Get retailers to:
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

carry new items and more inventory,
advertise products,
give products more shelf space, and
buy product ahead.
In general, sales promotion should focus
on consumer relationship building.
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Major Consumer Sales
Promotion Tools
Sample
Trial amount of a product
Coupons
Savings when purchasing specified
products
Cash Refunds
Refund of part of the purchase price
Price Packs
Reduced prices marked on the label or
package
Premiums
Goods offered free or low cost as an
incentive to buy a product
Advertising
Specialties
Articles imprinted with an advertiser’s
name given as gifts
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Major Consumer Sales
Promotion Tools
Patronage Rewards
Cash or other rewards for the use of a
certain product
Point-of-Purchase
Displays and demonstrations that take
place at the point of sale
Contests
Consumers submit an entry to be judged
Sweepstakes
Consumers submit their names for a
drawing
Game
Presents consumers with something every
time they buy
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Major Trade Sales Promotion
Tools
Trade-Promotion
Objectives
Persuade Retailers or
Wholesalers to Carry a Brand
Trade-Promotion
Tools
Discounts
Give a Brand Shelf Space
Promote a Brand in
Advertising
Allowances
Push a Brand to Consumers
Sales Promotion
This K ibble s ‘n Bit s
promotion offered
pet owners a chance
to see their dogs in
a commercial.
Which of the four
obj ectives does this
type of promoti on
fulfill?
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Developing the Sales
Promotion Program
Decide on the Size of the Incentive
Set Conditions for Participation
Determine How to Promote and
Distribute the Promotion Program
Determine the Length of the Program
Evaluate the Program
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What is Public Relations?
Public Relations Involves Building Good
Relations With the Company’s Various
Publics by Obtaining Favorable Publicity,
Building Up a Good Corporate Image,
and Handling or Heading Off
Unfavorable Rumors, Stories, and
Events.
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Major Public Relations
Functions
Press Relations or Agentry
Product Publicity
Public Affairs
Public Relations
Departments May
Perform Any of All
of the Following
Functions:
Lobbying
Investor Relations
Development
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Major Public Relations Tools
News
Web Site
Speeches
Public
Service
Activities
Special
Events
Corporate
Identity
Materials
Audiovisual
Materials
Written
Materials
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Major Public Relations
Decisions
Setting Public Relations Objectives
Choosing the Public Relations Messages
and Vehicles
Implementing the Public Relations Plan
Evaluating Public Relations Results
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Review of Concept
Connections
Define the roles of advertising, sales
promotion, and public relations in the
promotion mix.
Describe the major decisions involved in
developing an advertising program.
Explain how sales promotion campaigns are
developed and implemented.
Explain how companies use public relations
to communicate with their publics.
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