Chapter Objectives Integrated Marketing Communications



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  • Integrated Marketing Communications
  • CHAPTER 15
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  • Explain how integrated marketing communications relates to the development of an optimal promotional mix.
  • Describe the com-munication process and how it relates to the AIDA concept.
  • Explain how the promotional mix relates to the objectives of promotion.
  • Identify the different elements of the promotional mix and explain how marketers develop an optimal promotional mix.
  • Describe the role of sponsorships and direct marketing in integrated marketing communications.
  • Discuss the factors that influence the effectiveness of a promotional mix.
  • Contrast pushing and pulling strategies.
  • Explain how marketers budget for and measure the effectiveness of promotion.
  • Discuss the value of marketing communications.
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  • INTEGRATED MARKETING COMMUNICATIONS
  • Promotion Communication link between buyers and sellers; the function of informing, persuading, and influencing a consumer’s purchase decision.
  • Marketing communications Messages that deal with buyer-seller relationships.
  • Integrated marketing communications (IMC) Coordination of all promotional activities to produce a unified, customer- focused promotional message.
  • • Consumers receive many marketing messages all day.
  • • Strategy begins with their wants or needs and then works backward to product.
  • • Must segment market according to customer demographics and preferences.
  • IMPORTANCE OF TEAMWORK
  • • Requires consistent, coordinated promotional effort at every stage of customer contact.
  • • Involves both in-house resources and outside vendors.
  • ROLE OF DATABASES IN EFFECTIVE IMC PROGRAMS
  • • Internet allows companies to gather information faster and organize it more easily.
  • • Ability to harness data challenges ability to sift through it effectively.
  • • Direct sampling also provides customer opinions.
  • THE COMMUNICATION PROCESS
  • • Effective message does three things:
  • • Gains the receiver’s attention.
  • • Achieves understanding by both sender and receiver.
  • • Stimulates receiver’s needs and suggests appropriate means of satisfying them.
  • • AIDA concept Steps through which an individual reaches a purchase decision: attention, interest, desire, and action.
  • • AIDA concept is vital for understanding an reaching customers.
  • • Noise can be a particular issue in international communications, including in the world’s 74 English-speaking countries.
  • OBJECTIVES OF PROMOTION
  • PROVIDE INFORMATION
  • • Goal is informing the market about the availability of a product.
  • INCREASE DEMAND
  • • May increase primary demand, or desire for a particular product category.
  • • May increase selective demand, or desire for a specific brand.
  • DIFFERENTIATE THE PRODUCT
  • • Differentiation allows firms more control over marketing variables such as price.
  • ACCENTUATE THE PRODUCT’S VALUE
  • • Greater value helps justify a higher price in the marketplace.
  • • Marketers advise staying away from these words—quality, value, service, caring, and integrity—because they are overused and vague.
  • STABILIZE SALES
  • • Can help make demand more consistent throughout the year.
  • ELEMENTS OF THE PROMOTIONAL MIX
  • • Promotional mix Subset of the marketing mix in which marketers attempt to achieve the optimal blending of the elements of personal and nonpersonal selling to achieve promotional objectives.
  • • Personal selling, advertising, and sales promotion usually account for the bulk of a firm’s promotional expenditures.
  • PERSONAL SELLING
  • • Oldest form of selling.
  • • A seller’s promotional presentation conducted on a person-to-person basis with the buyer.
  • • More than 13 million people in U.S. have careers in personal sales.
  • NONPERSONAL SELLING
  • • Advertising and product placement.
  • • Sales promotion Marketing activities other than personal selling, advertising, guerrilla marketing, and public relations that stimulate consumer purchasing and dealer effectiveness.
  • • Trade promotion—incentives to encourage marketing intermediaries to sell more of certain items or product lines.
  • • Direct marketing Direct communications, other than personal sales contacts, between buyer and seller, designed to generate sales, information requests, or store or Web site visits.
  • • Public relations Communications and relationships with various publics.
  • • Publicity—nonpersonal stimulation of demand unpaid placement of news about it or through a favorable presentation of it on the radio or television.
  • • Guerrilla marketing Unconventional, innovative, and low-cost marketing techniques designed to get consumers’ attention in unusual ways.
  • SPONSORSHIPS
  • • $28 billion business worldwide.
  • • Sponsorship Relationship in which an organization provides funds or in-kind resources to an event or activity in exchange for a direct association with that event or activity.
  • • Sponsor purchases access to event’s audience and image associated with activity.
  • • Sponsorship often more cost effective but usually offers less control over market coverage.
  • • Audiences often view sponsorship more positively than advertising.
  • • Effective—for every $1 spent, firms typically receive $11.49 in revenue.
  • • Opens large new international markets and promotes goals beyond creating product awareness.
  • • Databases are an important tool.
  • DIRECT MARKETING COMMUNICATION CHANNELS
  • • Direct mailings such as brochures and catalogs.
  • • Telecommunications and television and radio.
  • • Internet via e-mail and electronic messaging.
  • • Print media such as newspapers and magazines.
  • • Specialized channels such as electronic kiosks.
  • DIRECT MAIL
  • • Allows narrow targeting, intensive coverage, and other benefits.
  • • Per reader cost is high and many consumer view it as junk.
  • CATALOGS
  • • Catalog sales reached $160 billion in a recent year.
  • • Companies adding online catalogs to complement print catalogs.
  • TELEMARKETING
  • • Most frequently used form of direct marketing.
  • • Provides a high return on expenditures, an immediate response, and the opportunity for personalized two-way conversations.
  • • May be outbound or inbound.
  • • 1996 Telemarketing Sales Rule created Do Not Call Registry and curtailed abusive telemarketing practices.
  • DIRECT MARKETING VIA BROADCAST CHANNELS
  • • Brief direct-response advertisements on television or radio.
  • • Home shopping channels.
  • • Infomercials.
  • ELECTRONIC DIRECT MARKETING CHANNELS
  • • U.S. spending on online advertising totals about $16 billion per year.
  • • Includes Web advertising and e-mail notices.
  • • Online customer acquisition programs often cost less than traditional ones.
  • OTHER DIRECT MARKETING CHANNELS
  • • Print media and other traditional channels are critically important.
  • • Kiosks also provide an outlet for electronic sales.
  • PULLING AND PUSHING PROMOTIONAL STRATEGIES
  • • Pulling strategy Promotional effort by the seller to stimulate final-user demand, which then exerts pressure on the distribution channel.
  • • Pushing strategy Promotional effort by the seller directed to members of the marketing channel rather than final users.
  • • Advertising creates an environment for successful personal selling and remains important as an affirmation of customer’s decision.
  • BUDGETING FOR PROMOTIONAL STRATEGY
  • • Composition of budget depends on strategy.
  • • B2B markets often allocate more to personal selling than advertising.
  • • Reverse is usually true for consumer goods.
  • MEASURING THE EFFECTIVENESS OF PROMOTION
  • • Direct sales results test to reveal impact on sales revenues of promotional spending.
  • • Indirect evaluation that focuses on quantifiable indicators of effectiveness.
  • • Two major ways of setting Internet advertising rates:
  • • Cost per impression—cost relates to the number of people who view the ad.
  • • Cost per response (click-throughs)—cost relates to the number of people who click the ad.
  • THE VALUE OF MARKETING COMMUNICATIONS
  • SOCIAL IMPORTANCE
  • • One generally accepted standard in a market society is freedom of choice for the consumer.
  • BUSINESS IMPORTANCE
  • • Long-term increase in funds allocated to promotion indicates faith in its ability to encourage attitude changes, brand loyalty, and additional sales.
  • ECONOMIC IMPORTANCE
  • • Provides employment for millions of people.
  • • Increases units sold and allows economies of scale that mean lower prices, which make a product available to more people.


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