Integrated Marketing

CommunicationsIntro to Marketing

Chapter 15

Objectives of Promotion

– Informing, persuading, and

influencing the consumer’s purchase

decision

• Integrated Marketing Communications

– Coordinating all promotional

activities

• Media advertising, direct mail,

personal selling, sales promotion

& public relations

• To produce a unified, customer-

focused promotional message

The Communications Process

• An effective message should:– Attract the receiver’s attention– Achieve an understanding by both the

receiver and the sender– Suggest a method to satisfy the

receiver’s needs• AIDA Concept – steps that a person

goes through when making a purchase

• A – ttention• I – nterest• D – esire• A - ction

Objectives of Promotion

• Provide Information to consumers• Increase demand• Differentiate a product• Accentuate a products value

– Show how a product will make life better

• Stabilize sales– Sales are not uniform throughout the

year

Promotional Mix• Personal Selling• Non-Personal Selling

– Advertising• Paid, non-personal communication through

various media– Product Placement– Sales Promotion

• Displays, shows, demonstrations, non-recurrent selling efforts

– Direct Marketing• Includes direct mail, phone, infomercials

– Publicity & PR• News, not paid for, press releases

– Guerilla Marketing• Innovative low cost way to reach the market using

a unique approach

Promotional Mix

ProductPricePlaceAdvt.Sales PromoDirect Mkt.Publicity/PRPersonal Selling

Sponsorships

• Occurs when an organization provides cash or in-kind resources to an event or activity

• Purchases two things:– Exposure– Image

Direct Marketing

• Growing rapidly• Interactive electronic media,

direct mail, telemarketing, infomercials, & direct response advertising

• International direct marketing has grown – internet

• Databases are important

Direct Mail

• Sales letters, postcards, leaflets, folders, booklets, catalogs

• Advantages– Can select a narrow target

market, intensive coverage, personalized response rates are measurable

• Disadvantages– High cost, dependence on quality

of mailing list, junk mail

Catalogs

• Speigel, LL Bean, Lands End, & Eddie Bauer depended on catalog sales for years, then moved into retail stores & web pages.

• CD ROM catalogs– Display 3 dimensional views

TelemarketingPhone– Most frequently used

form of direct marketing

– Inexpensive, get immediate response, personalized

– Predictive dialers skip busy signals & answering machines, waits for human voice

Direct Marketing via Broadcast Channels

• Brief direct response ads on TV or radio encourage viewers to respond immediately

• Home Shopping Channels– QVC & HSN– Work best for $20-$50 range

• Infomercials– 30 minute or longer product

commercials– Usually air on non-prime-time slots or

less expensive cable channels

Electronic

• Web Advertising• E-mail• Auction sites• Kiosks

– Provide instant delivery

Personal Selling AdvertisingNature of the market Number of buyers Geographic concentration Type of customer

Limited numberConcentratedBusiness purchaser

Large numberDispersedUltimate consumer

Nature of the product Complexity Service requirements Type of good or service Use of trade-ins

Custom-made, complexConsiderableBusinessTrade-ins common

StandardizedMinimalConsumerTrade-ins uncommon

Stage in the product life cycle

Often emphasized at every stage; heavy emphasis in the introductory and early growth stages in acquainting marketing intermediaries and potential consumers with the new good or service

Often emphasized at every stage; heavy emphasis in the latter part of the growth stage, as well as the maturity and early decline stages, to persuade consumers to select specific brands

Price High unit value Low unit value

Pulling & Pushing Strategies

• Pulling Strategy– Effort by the seller to stimulate

final user demand• Pushing Strategy

– Effort by the seller to channel members to motivate them to carry the product.

Budgeting

• Most effective is to increase promotional expenditures until each dollar of promotion expense is matched by a dollar of profit.

• Percentage of sales is the most common

Measuring the Effectiveness• Direct sales results• Indirect

– Recall– Electronic media

• Hits on the web