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Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Chapter 17Chapter 17
Integrated Marketing
Communications
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Chapter OverviewChapter Overview
PromotionPromotion
Marketing Marketing CommunicationsCommunications
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Integrated Marketing CommunicationsIntegrated Marketing Communications
Coordination of all promotional activities to produce a unified customer-focused promotional messageSuccess of any IMC program depends on
identifying the members of an audience and understanding what they want
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Where’s The Tracker?Tracker’s IMC
Program Included a Game for Chevrolet Tracker That Drew 1.3 Million Entries Online and Another 100,000 Offline
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Example of an Ad Enhancing
GM’s Integrated Marketing Communications Program
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Importance of TeamworkIMC requires a total strategy including all
marketing activities, not just promotionSuccessful implementation of IMC requires
that everyone involved in every aspect of promotion function as a team
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Role of Databases in Effective Role of Databases in Effective IMC ProgramsIMC ProgramsWith the growth of the Internet,
marketers have been given the power to gather information faster and to organize it easier than ever before
By sharing this knowledge appropriately among all relative parties, a firm can lay the foundation for a successful IMC program
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The Communications ProcessThe Communications Process
An effective promotional message accomplishes three tasks:It gains the receiver’s attentionIt achieves understandingIt stimulates the receiver’s needs and
suggests an appropriate method of satisfying them
AIDA concept
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See if this ad gets your attention. Keep in mind not all advertisements are designed to sell a product or service. So what is this ad’s objective(s)?
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Example of an Ad Accomplishing the Three Tasks of the Communications Process for Its Target Market
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Global Difficulties with the Communication Global Difficulties with the Communication ProcessProcessIn China: KFC’s slogan: “Finger lickin’ good”
came out as “Eat your fingers off”Also in China: Coca-Cola had thousands of
signs made using the translation: “Ke-kou-ke-la”Depending on the dialect this means . . .“Bite the wax tadpole,” or “Female horse stuffed with wax”
In Taiwan: Pepsi’s slogan, “Come alive with the Pepsi generation” came out as “Pepsi will bring your ancestors back from the dead”
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Objectives of PromotionObjectives of Promotion
Provide InformationProvide InformationDisney World
Ad promoting a free video to provide Information for vacation planning
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Increase DemandIncrease DemandSome promotions
are aimed at increasing primary demand, the desire for a general product category
More promotions are aimed at increasing selective demand, the desire for a specific brand
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Differentiate the Differentiate the ProductProductHomogenous
demand for many products results when consumers regard the firm’s output as virtually identical to its competitors’
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Daewoo Lanos Television Ad Differentiating Its Product from Those of the Competition
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Identify how two competitors, Visa and MasterCard, go about differentiating their products in these two ads.
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Accentuate the Accentuate the Product’s ValueProduct’s ValuePromotion can
explain the greater ownership utility of a product to buyers
Johnson & JohnsonFirst Aid To Go!Accentuating a Product’s Value
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Stabilize SalesStabilize SalesFor the typical firm, sales fluctuations may result
from cyclical, seasonal, or irregular demandStabilizing these variations is often an objective
of promotional strategy
Class Discussion
Is the purpose of this ad primarily to provide information, increase demand, differentiate the product, accentuate the product’s value or stabilize sales?
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Elements of the Promotional MixElements of the Promotional Mix
Promotional mixPromotional mix: blend of personal selling and nonpersonal selling designed to achieve promotional objectivesPersonal sellingPersonal sellingNonpersonal sellingNonpersonal selling
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AdvertisingAdvertisingPaid, nonpersonal
communication through various media with the hope of informing or persuading members of a particular audience
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Product PlacementProduct PlacementMarketer pays a motion picture or
television program owner a fee to display his or her product prominently in the film or show
Big budget movies, such as The Matrix, feature prominent placement of various products throughout the movie.
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Sales PromotionSales PromotionMarketing activities that
stimulates consumer purchasing
Trade promotion
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TV AD using a popular sales promotion technique: A free premium with the purchase of an item.
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Direct MarketingDirect MarketingDirect communications other than personal
sales contact between buyer and seller, designed to generate sales, information requests, or store visits
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Public relationsPublic relations: firm’s communications and relationships with its various publics
PublicityPublicity: stimulation of demand for good, service, place, idea, person, or organization by unpaid placement of commercially significant news or favorable media presentations
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SponsorshipsSponsorships
Provision of funds for a sporting or cultural event in exchange for a direct association with the events; in e-commerce, a long-term linkage between a Web site and a marketer
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Sponsorship Sponsorship SpendingSpending has more than tripled during the past 10 years to almost $10 Billion.AT&T: A
Sponsor of the PGA Tour
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Growth of SponsorshipsGrowth of SponsorshipsSponsorship has grown rapidly during the past
30 years
How Sponsorship Differs from AdvertisingHow Sponsorship Differs from AdvertisingDegree of controlNature of the messageAudience reactionMeasurements of effectiveness
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Direct MarketingDirect Marketing Rapidly growing promotional mix element
Related overall spending total $1.7 trillion Direct Marketing Communication ChannelsDirect Marketing Communication Channels
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Direct MailDirect MailMarketers combine information from internal
and external databases, surveys, coupons, and rebates that require responses to provide information about consumer lifestyles, buying habits, and wants
Catalogs
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TelemarketingTelemarketing: Includes outbound contacts by salespeople or inbound contacts initiated by customers who want to obtain information and place orders
Offering Toll-Free Telephone Numbers to Catalog Shoppers
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Direct Marketing via Broadcast ChannelsDirect Marketing via Broadcast ChannelsBrief (30 to 90 second) direct response ads
on television or radioHome shopping channels like:
QVCHSN
Infomercial: promotional presentation for a single product running 30 minutes or longer in a format that resembles a regular television program
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Electronic Direct Marketing ChannelsElectronic Direct Marketing ChannelsE-mail direct marketing is a natural and
easy extension of traditional direct mail marketing
Other Direct Marketing ChannelsOther Direct Marketing ChannelsPrint media is generally not as effective as
Web marketing or telemarketing for direct marketers
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PeoplepcThis Print Ad
Supplements a Promotional Campaign That Is Primarily Based on Broadcast Advertising
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Starbucks EncoreStarbucks EncoreStarbucks’
Direct-Response Print Ad
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Developing an Optimal Promotional MixDeveloping an Optimal Promotional Mix
Factors that influence the effectiveness of a promotional to mix:Nature of the marketNature of the productStage in the product life-cyclePriceFunds available for promotion
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Promotional StrategiesPromotional Strategies
Pulling strategyPulling strategy
Pushing strategyPushing strategy
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Colgate TotalColgate TotalUsing a Pulling
Strategy With Ads Like This Combined With a Pushing Strategy Created Strong Demand for This Improved Product
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Budgeting for Promotional StrategyBudgeting for Promotional Strategy
Percentage-of-sales method Fixed-sum-per-unit method Meeting competition method Task-objective method
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Measuring the Effectiveness of PromotionMeasuring the Effectiveness of Promotion
Two basic measurement tools:Direct sales resultsIndirect evaluation concentrates on
quantifiable indicators of effectiveness like:RecallReadership
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The Value of Marketing CommunicationsThe Value of Marketing Communications
Social ImportanceSocial ImportanceSociety provides no commonly accepted set of
standards regarding tasteThe one generally accepted standard in a
market society is freedom of choicePromotion helps achieve socially oriented
objectives like the elimination of drug abuse
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Promotional Message Addressing a Universal Social Concern
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Merck Vaccine DivisionThe Social
Importance of Marketing Communications
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Business ImportanceBusiness ImportancePromotion has become increasingly
important to both large and small firmsPromotion is an effective tool to change
attitudes, boost brand loyalty and increase sales
Both business and nonbusiness enterprises recognize the importance of promotion
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The effectiveness of advertisements like this classic to encourage brand loyalty and increase sales is well-documented.
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Economic ImportanceEconomic ImportanceEffective promotion has allowed society to
derive benefits not otherwise availablePromotion increases the number of units
sold, which lowers production costs and sales prices
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