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Chapter Thirteen
Ford Thunderbird Ad
Integrated Marketing
Communications
Chapter Objectives
 Discuss the concept and stages of Integrated
Marketing Communication.
 Identify various marketing communication
elements and the importance of AIDA.
 Discuss factors that impact the relative mix of
communication elements in an Integrated
Marketing Communication plan.
 Explain methods for measuring the
effectiveness of marketing communication.
Integrated Marketing Communications
 Integrated Marketing Communications:
– The coordination and integration of all marketing communication
tools, avenues, and sources within a company into a seamless
program designed to maximize the communication impact on
consumers, businesses, and other organization constituencies.
 Promotion:
– All forms of external communications directed toward consumers
and businesses with an ultimate goal of developing customers.
 Reasons for Integrated Marketing Communication
– Customers are better informed.
– Customers are more price conscious.
– Customers are more demanding of quality and service.
– Customers want more convenience and faster delivery.
 Communication to four primary groups:
– Customers
– Channel members
– Employees
– Stakeholders
Communication Venues
•
•
•
•
Advertising
Sales/Trade promotion
Personal selling
Public relations
• Internet
• Database
• Direct marketing
Traditional Approach
radio, television, newspaper, and
magazines
Integrated Approach
Internet, billboards, transit signs,
and company stationery
Advertising: Paid communication directed to customers and/or other stakeholders
Public relations: Addresses issues faced by an organization and represents the organization to the public, media, and various
stakeholders
Publicity: An outcome of public relations that is produced by the news media and is not paid for or sponsored by the business
Sales promotions: Incentives used to encourage end-users to purchase a product, e.g., coupons, premiums
Trade promotions: Incentives directed toward channel members to encourage them to purchase, stock or push a product through
the channel
Personal selling: Direct communication between the buyer and seller with the express purpose of selling a product
Database marketing: Collection, analysis, and use of large volumes of customer data to develop marketing programs and
customer profiles
Direct marketing: Promotion of a product directly from the manufacturer or producer to the buyer without any middlemen involved
in the transaction
Internet marketing: Promotion and sale of products through the Internet (more than 60% of Americans have Internet access)
The Communication Mix
Sales
Promotions
25%
Advertising
25%
Trade
Promotions
50%
Stages of
Integrated Marketing Communications
1.
Identifying, coordinating, and managing all forms of external communication to bring all of
the company’s brands and divisions under central control.
Use same logos, themes, and colors (same message, same look).
2.
Extending the scope of communication to include everyone touched by the organization.
Internal and External communication have to be consistent.
Every person who comes in contact with the organization should see one overall theme.
3.
Databases are developed to include every customer's activities, purchases, and interactions
with the company.
Customers information is used to make product and promotion decisions.
4.
Establish “a customer value” for each customer. Customers are very different, e.g., some
buy large quantities others not, some are loyal others are not.
Use individualized marketing approaches that will maximize the return of effort.
The Communication Process
Noise: different accessibility of
medium, selective awareness,
attention, reaction, action.
Sender
Recipient
Purpose*: Persuasive Communication
 It is difficult to guarantee that the intended message of
the sender is the perceived message of the recipient.
AIDA – model
Attention: Get awareness of your message.
Interest: Get consumer to listen to message.
Desire: Get consumer to want product + service + idea.
Action: Get Consumer to purchase.
Aida Concept
AIDA Concept
Attention
Interest
Retail sales situation
A store sign offering $25 off
catches your attention.
A sign by the exercise bike
highlights the low cost and
features of the bike.
Desire
You sit on the bicycle and it
feels more comfortable than
any others you have tried.
Action
When a salesperson tells
you that it can be purchased
now and, if, for any reason,
you don’t like the bike, you
can bring it back within 30
days for a full refund, you
decide to purchase it.
Television advertisement
A well-built young man appears on the
screen wearing only shorts.
You have been wanting an exercise
bike and this is a model you have not
seen before so you want to see what it
looks like and what features it has.
After seeing the TV ad, you check the
Internet to see where the closest retail
store is located and what the website
says about the bike.
Having thought about the exercise bike,
you see another advertisement. You
decide this is the right bike and make a
decision to purchase it, using the tollfree number listed on the TV screen.
Model of Communications
“*Copy”
Encoding
Source
Message
*Informer
*Presentation
Noise
Audience
Medium
Decoding
*Receivers
Low Involvement
Cognitive
Behavioral
Affective
*Responses
*Vehicle
High Involvement
Cognitive
Affective
Behavioral
Communication Objectives
 Increase demand
– Use trade promotions (channel)
– Use sales promotions (consumers)
– Advertising and personal selling support
 Differentiate a product
– Avoid commodity status, price
competition
– Benefits and product attributes
– Psychological superiority
– Personal selling
– Advertising
 Reduce purchase risk
–
–
–
–
New products
New customers
Personal selling
Trade and sales promotions
 Provide information
– Advertising
– Personal selling
• Retail
• Field sales
 Build brand equity
– Essential for long-term survival
– Two foundations
• Quality
• Awareness
– Advertising
 Stimulate trial
– Sales promotions
– Advertising
– Personal selling
Communication Objectives Summary
Objective
Promotion Personal
Advertising Trade Sales Selling
Increase demand
M
E
E
G
Differentiate a product
E
P
M
E
Provide information
E
P
P
E
Build brand equity
E
P
P
M
Reduce purchase risk
P
G
G
E
Stimulate Trial
M
P
E
M
E = Excellent, G = Good, M = Moderate, P = Poor
Impact of Promotional Mix Elements
Personal Selling
Sales Promotion
Advertising
Public
Relations
Awareness
Interest
Desire
Action
Trustworthy Sources of Information
Word-of-Mouth:
Whether on-line or off-line, nationally or
internationally, friends and family or
strangers, word-of-mouth information is
typically deemed more trustworthy than
information generated by a marketer.
This is one reason why marketers are
currently exploring “social networks” as a
means of message delivery.
Business versus Consumer Marketing
Business Marketing: Relies more on personal selling and trade promotions (larger volume purchases)
Consumer Marketing: Relies more on sales promotion and advertising
% of Total Marketing Budget
60.0%
52.6%
50.0%
40.0%
30.1%
30.0%
20.0%
22.6%
19.6%
21.2%
11.3%
10.0%
11.9%
8.8%
4.1%
5.2% 5.3%
Radio
Magazine
7.2%
0.0%
Television
Newspaper
Telephone
Marketing
Marketing Methodology/Media
Business-to-Business
Consumer
Direct Mail
Push/Pull Marketing Strategies
Push marketing strategy: The manufacturer attempts to push
the product through the channels with the belief that if the
product is available in retail outlets, consumers will
purchase it.
Pull marketing strategy: The manufacturer builds product
demand at the consumer level with the belief that
consumers will go to retailers and demand that the product
be stocked.
Push Strategy < ------------------------------------------------------------ > Pull Strategy
Low < ---------------------Advertising ------------------------------- > High
High < ------------------------- Trade Promotions -------------------------------- > Low
Low < -----------------------Sales Promotions -------------------------------- > High
High < ------------------------- Personal Selling -------------------------------- > Low
Question: Does Tree
Top use a push or a
pull strategy?
Answer: It uses a
pull strategy,
advertising their
juice to parents,
who then demand
the product from
retailers.
Source: © Tree Top, Inc.,
2002. Created by Cole &
Weber / Red Cell, Seattle,
WA.
Marketing Communication & the PLC
Introduction

Advertising
–
–


–

Encourage trial
usage ***
–
Good for b-to-b
market ***
Poor for consumer
markets ***
Develop brand
name ***
Develop brand
awareness ***
Maturity

Advertising
–

–
Trade promotions

Customers are
demanding
product.
– Product is being
pulled through
channel.
Sales promotions
–

Consumer demand
is already high.

–
Salespeople serve
as order-takers.
Differentiate brand
***
***Indicates high expenditures
Advertising
–
Differentiate
brand from
competition ***
–
Push product
through channel
***

Encourage
consumers to
purchase ***
–

–
–
Encourage
salespeople to
push brand ***
Differentiate
brand ***
Ineffective in
pushing product
in channel
Sales promotions
–

Demand is
declining.
New technology
is replacing
product.
Trade promotions
Personal selling
Personal selling
–

Sales promotions
–

Decline
Trade promotions
–
Not effective
Personal selling
–
Advertising
–
Sales promotions
–


Develop
awareness ***
Build industry
demand ***
Trade promotions
–
Growth
Ineffective in
stimulating
demand
Personal selling
–
Market is
shrinking and
limited
Communication Budget Methods





Objective-and-task
Percent-of-sales
Comparative parity
Executive-judgment
All-you-can-afford
Measuring Communication Effectiveness
- Is the sales growth or decline due to promotion, or is it attributable to other factors
such as price, quality, or service?
- Sales vs. Communication objectives/effects?
 Advertisement Evaluation
• Concept and Copy Tests
• Recall/Recognition and Attitude Tests
 Trade and Sales Promotion Evaluation
• Sales changes
• Inquiries
• Redemption/Response rates
 Personal Selling Evaluation
•
•
•
•
Sales
Number of new customers
Customer retention
Customer satisfaction
Global Communications
 Globally Integrated Marketing Communication is
an international trend. The challenges to coordinate
marketing efforts are the cultural difference.
International companies have two strategies available:
Standardization: The process of using the same
product and marketing approach across countries
Adaptation: The process of modifying the product and
marketing approach for each country
“Think globally but
act locally.”