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12
Integrated Marketing
Communication: Advertising,
Sales Promotion, and Public
Relations
Marketing Communication
Mix or Promotion Mix
Product’s
Design
Product’s
Price
Stores that Sell
the Product
Product’s
Package
12-2
Marketing Communications Mix
• Advertising
– Any paid form of nonpersonal presentation
and promotion of ideas, goods, or services by
an identified sponsor.
• Sales Promotion
– Short-term incentives to encourage the
purchase or sale of a product or service.
12-3
Marketing Communications Mix
• Public Relations
– 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.
• Personal Selling
– Personal presentation by the firm’s sales force
for the purpose of making sales and building
customer relationships.
12-4
Marketing Communication Mix
• Direct Marketing
– Direct connections with carefully targeted
individual consumers to both obtain an
immediate response and cultivate lasting
customer relationships—the use of telephone,
mail, fax, e-mail, the Internet, and other tools
to communicate directly with specific
consumers.
12-5
Marketers Have Shifted
Away From Mass
Marketing
Less Broadcasting
2 Factors
are Changing the Face of Today’s
Marketing Communications:
Improvement in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting
Market Fragmentation Led to
Media Fragmentation
The Changing Communications
Environment
12-6
The Need for IMC
Using IMC, the company carefully
integrates and coordinates its many
communication channels to deliver
a clear, consistent, and compelling
message about the organization
and its brands.
12-7
Integrated Marketing Communication
12-8
Advertising
• Can reach masses of geographically
dispersed buyers.
• Can repeat a message many times.
• Is impersonal, one-way communication.
• Can be very costly for some media types.
12-9
Personal Selling
• Involves personal interaction between two
or more people.
• Allows relationship building.
• Most expensive promotion tool.
12-10
Sales Promotion
• Wide assortment of tools.
• Attracts consumer attention.
• Offers strong incentives to buy.
• Invites and rewards quick consumer
response.
• Effects are short-lived.
12-11
Public Relations
• Very believable.
• Reaches people who avoid salespeople
and ads.
• Can dramatize a company or product.
• Tends to be used as an afterthought.
• Planned use can be effective and
economical.
12-12
Direct Marketing
• Many forms that share four characteristics:
– Nonpublic
– Immediate
– Customized
– Interactive
• Well suited to highly targeted marketing.
12-13
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
12-14
Push vs. Pull Promotion Strategy
12-15
Advertising
• Advertising has been used for centuries.
• U.S. advertisers spend more than $237 billion
•
each year; worldwide spending approaches $470
billion.
Advertising is used by:
–
–
–
–
–
Business firms
Nonprofit organizations
Professionals
Social agencies
Government
12-16
What is Advertising?
Advertising is Any Paid Form of
Nonpersonal Presentation and
Promotion of Ideas, Goods, or
Services by an Identified
Sponsor.
12-17
Major Decisions in Advertising
12-18
Setting Advertising
Objectives
Informative Advertising
Inform Consumers or
Build Primary Demand
Persuasive Advertising
Build Selective Demand
Advertising Objective
Specific Communication Task
Accomplished with a Specific
Target Audience
During a Specific Period of Time
Reminder Advertising
Comparative Advertising
Keeps Consumers
Compares One Brand
Thinking About a Product
to Another
12-19
Setting the Advertising Budget
Based on What the Company Thinks it Can Afford
Based on a Percentage of Current or Forecasted Sales
Set Budget to Match Competitors
Objective-and-Task
Set Objectives, Determine Tasks to Achieve Objectives,
Sum of Task Costs Equals Budget
12-20
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
12-21
The Message Strategy
Identify Customer Benefits
Develop Compelling Creative Concept
The “Big Idea”
Advertising Appeals Should Be
Meaningful, Believable, & Distinctive
12-22
Message Execution
Testimonial Evidence
Scientific Evidence
Technical Expertise
Typical
Message
Execution
Styles
Lifestyle
Fantasy
Musical
12-23
Message Execution
• Choose a tone
• Use memorable, attention-getting words
• Choose correct format elements
– Illustration
– Headline
– Copy
12-24
Selecting Advertising Media
– Percentage of people exposed to ad
– Number of times a person is exposed to ad
– The qualitative value of a message exposure
through a given medium
12-25
Choosing Media Type
• Factors to consider:
– Media habits of target consumers
– Nature of the product
– Type of message
– Cost
– Media vehicles
12-26
Deciding on Media Timing
• Must decide how to schedule the
advertising over the course of a year
– Follow seasonal pattern
– Oppose seasonal pattern
– Same coverage all year
• Choose the pattern of the ads
– Continuity
– Pulsing
12-27
Evaluating Advertising
Advertising Program Evaluation
(Copy Testing)
Is the Ad Communicating
Well?
Is the Ad Increasing
Sales?
12-28
Other Advertising Considerations
Small Companies:
Sales Departments
Large Companies:
Advertising
Departments
Advertising Agency:
A marketing services firm that assists companies in
planning, preparing, implementing, and evaluating all or
portions of their advertising programs.
12-29
International Advertising
Decisions
Advertising Media Differ
Considerably in Availability and Cost
Comparison Ads Not Acceptable in
All Countries
Programs Must be Matched to
Local Cultures and Customs
12-30
Advertising to the World’s Consumers
REACHING PEOPLE
(media spending per capita for top-ranking and bottom ranking countries, 1996)
RANK
1
2
3
4
5
6
7
8
COUNTRY
Japan
United States
France
Germany
Netherlands
Denmark
Belgium
United Kingdom
PER-CAPITA MEDIA
SPENDING*
$2,137
1,861
1,845
1,593
1,517
1,504
1,357
1,286
12-31
continued
RANK
9
10
126
127
128
129
130
COUNTRY
Hong Kong
Australia
Tanzania
Vietnam
Nigeria
China
Laos
PER-CAPITA MEDIA
SPENDING*
$1,180
1,166
$4.10
2.92
2.77
2.62
0.41
*Author’s estimates based on various sources.
12-32
Commercials Shown Per Hour
Turkey 57
Philippines 40
China 38
France 36
Mexico 34
Thailand 33
Australia 30
United Kingdom 16
0
10
20
30
40
50
60
12-33
What is Sales Promotion?
Sales Promotion Offers Short-Term
Incentives to Encourage Purchase
or Sales of a Product or Service.
Offers Reasons to Buy NOW.
12-34
Rapid Growth of Sales Promotion
• Sales promotion can take the form of
consumer, business, trade, or sales force
promotions.
• Rapid growth in the industry has been
achieved because:
– Product managers are facing more pressure to
increase their current sales
– Companies face more competition
– Advertising efficiency has declined
12-35
Sales Promotion Objectives
• Consumer Promotions: increase short-
term sales or help build long-term market
share.
• Trade Promotions: get retailers to:
– carry new items and more inventory
– advertise products
– give products more shelf space
– buy ahead
• Sales Force: getting more sales support.
• In general, sales promotion should build
long-term customer relationship building.
12-36
Consumer Sales Promotion Tools
Offers a trial amount of a product
Coupons
Savings when purchasing specified
products
Refund of part of the purchase price by
mail
Price Packs
“Cents-Off Deals”
Reduced prices marked on the label or
package by producer
Premiums
Goods offered free or low cost as an
incentive to buy a product
Articles imprinted with an advertiser’s
name given as gifts
12-37
Consumer Sales Promotion Tools
Patronage Rewards
Cash or other award offered for regular
use of a product or service
Point-of-Purchase
Promotions
Displays or demonstrations at the point
of purchase or sale
Contest
Consumers submit an entry to be
judged by a panel
Sweepstakes
Consumers submit their names for a
drawing
Games
Consumers receive something each
time they buy which may help them
win a prize
12-38
Trade Promotion
Objectives
Tools
Persuade resellers to
carry a brand
Give a brand shelf
space
Promote brand in
advertising
Push brand to
customers
Push Money
Specialty Advertising
Items
12-39
Business Promotion
Objectives
Tools
Generate business
leads
Stimulate purchases
Reward customers
Motivate salespeople
12-40
Developing the Sales Promotion Program
Decide on the Size of the Incentive
Set Conditions for Participation
Decide How to Promote and
Distribute the Promotion Program
Decide on the Length of the Program
Evaluate the Program
12-41
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.
12-42
Public Relations
Public relations is used to
promote products, people,
places, ideas, activities,
organizations, and even
nations. New York City
turned its image around
when its “I Love New
York!” campaign took
root, bringing millions
more tourists to the city.
12-43
Major Public Relations
Functions
Product Publicity
Public Relations
Departments May
Perform Any or All
of the Following
Functions:
Investor Relations
Development
12-44
Major Public Relations Tools
Speeches
Public
Service
Activities
Special
Events
Corporate
Identity
Materials
Audiovisual
Materials
12-45
Major Public Relations
Decisions
Choosing the Public Relations Messages
and Vehicles
Implementing the Public Relations Plan
Evaluating Public Relations Results
12-46