Chapter 1:

INTRODUCTION
to
PROMOTION
and
INTEGRATED MARKETING
COMMUNICATIONS

1.1
Relationship Between Promotion,
the Promotional Mix, and
Integrated Marketing Communications
PROMOTION
 Communication Process in Marketing
 Used to Create a Favorable Predisposition Toward:
 Brand of Product
 Service
 Idea
 Person

PROMOTIONAL MIX
 Blend of Communications Tools and Activities Used by a
Firm
 Carries out the Promotion Process
 Communicates Directly with Target Markets
1.2
Relationship Between Promotion,
the Promotional Mix, and
Integrated Marketing Communications (con’t)

INTEGRATED MARKETING COMMUNICATIONS (IMC)

 Manages the Processes and Activities of Using Promotional Tools
 Unified Way
 Produces a Synergistic Communications Effect

1.3
Relationship Between Promotion,
the Promotional Mix, and
Integrated Marketing Communications (con’t)

 Promotion: Process

 Promotion Mix: Tools

 IMC: Management of the

Promotion Mix

1.4
The Promotional Mix
ADVERTISING
 Paid Mass Media Attempt to Persuade
 Complex System of Strategic Planning and
Creative Genius

INTERNET ADVERTISING
 Electronic Mail (e-mail)
 Internet Relay Chat (IRC)
 Usenet
 World Wide Web (www)

SALES PROMOTION
 Use of Incentives to Generate a Specific Short-Term Response
 Household Consumer
 Trade Buyer
 Business Buyer 1.5
Example of Mass
Media Advertising

1.6
Example of Sales Promotion

1.7
The Promotional Mix (con’t)

DIRECT MARKETING AND e-COMMERCE

 Distinguished From Other Primary Promotional Tools
in 3 Ways
 Uses a Combination of Media
 Designed to Elicit a Direct Response
 Transactions Can Occur Anywhere

 E-Commerce is Another Form of Direct Marketing

 Business is Conducted Between Buyers and Sellers
Using Electronic Exchange Media
1.8
The Promotional Mix (con’t)

SPONSORSHIP
 Funding an Event
 Creating an Event to Showcase a Firm’s Brand

POINT-OF-PURCHASE
 Materials Used in Retail Setting to Attract Shoppers’ to a
Company’s Brand

SUPPORTIVE COMMUNICATIONS
 Used to Target Audiences Outside Mainstream Media or
Electronic Communications
1.9
The Promotional Mix (con’t)

PUBLIC RELATIONS
 Communication that can Foster Goodwill Between a Firm
and its Many Constituent Groups

PERSONAL SELLING
 Presentation of Information about a Firm’s Products or
Services by One Person to Another Person or to a Small
Group of People

1.10
Personal Selling is the Most
Important Variable in the
Promotional Mix of Many
Organizations

1.11
The Promotional Mix (con’t)

ROLE OF PROMOTION IN MARKETING STRATEGY

 Must Have Marketing Strategy Decisions about Products
(Brand)
 Branding – Established Name, Term, Symbol or Design
that Identifies for Consumers that a Product is being
Offered by a Particular Seller and Clearly Distinguished
the Product of that Seller from those Offered by
Competitors

1.12
The Promotional Mix (con’t)

ROLE OF PROMOTION IN MARKETING STRATEGY (con’t)

 Role of Promotion in Marketing Strategy Affects 3 Key Aspects
of Decision Making with Respect to Brands
 Creating the Marketing Mix
 Achieving Effective Market Segmentation, Product
Differentiation, and Positioning
 Enhancing Revenues and Profits

1.13
The Promotional Mix (con’t)

ROLE OF PROMOTION IN THE MARKETING MIX

 Assumes a Wide Range of Responsibilities
Related to:
 Conception
 Pricing
 Distribution Brands

 Product (Brand)

1.14
The Promotional Mix (Con’t)

ROLE OF PROMOTION IN THE MARKETING MIX (con’t)

 Promotion Affects the Product Area of the
Marketing Mix
 Information and Persuasion
 Introduction of New Brand or Brand Extensions
 Building and Maintaining Brand Loyalty

Among Consumers
 Building and Maintaining Brand Loyalty

Within the Trade

1.15
One Role for Promotion is to
Help Introduce Brand Extensions
Like this Extension of Jell-O into
the Yogurt Market

1.16
The Promotional Mix (con’t)

ROLE OF PROMOTION IN THE MARKETING

MIX (con’t)
 Price
 Effects the Consumer Market

 Effects the Trade Market

 Distribution
 Consumer Access to Brands

 Securing Trade Distribution

1.17
The Role of Promotion in Effective Market
Segmentation, Differentiation and Positioning

 Promotion is Important in Helping to

Execute These Strategies
 Market Segmentation
 Product Differentiation
 Positioning
 External

 Internal

1.18
The Role of Promotion in Revenue and Profits

 Sales Occur
 Brand has Well-Conceived Marketing Mix
 Complete Marketing Mix
 Good Promotion
 Large-Scale Demand /Production Produces
 Cost to Produce Item is Reduced
 Known as Economies of Scale
 Brand Loyalty at Any Cost
 Firm Raises Prices
 Known as Inelasticity of Demand

1.19
Promotional Tools Help
Increase Brand Loyalty

1.20
Integrated Marketing Communications

FACTORS CONTRIBUTING TO IMC’s RISING PROMINENCE

 Fragmentation of Media
 Better Audience Assessment Through Database Technology
 Consumer Empowerment
 Increased Advertising Clutter
 Shifting Channel Power
 Desire of Greater Accountability

1.21
Promotion and IMC
Help Cut Through the
Clutter of Advertising

1.22
Participants in IMC Management

Marketing Organization
•Marketing Plan
•Goal & Objectives Personal Selling
•Customer/Prospect IMC Management
(Chapter 14)
Databases

Advertising Agency
•Research
•Creative Strategies Public Relations
•Production (Chapter 13)
Advertising
•Message Placement
(Chapter 8)

Sales Promotions
Specialized Promotion P-O-P
Organizations Internet Advertising Supportive
•Media Organizations (Chapter 9) (Chapter 12)
•Event Management Firms
•Web Site Designers
•Sales Promotions Agencies
•Direct Marketing Agencies Direct Marketing Sales Promotions
•Public Relations Firms e-Commerce
•P-O-P Agencies & Designers (Chapter 11)
(Chapter
1.23
10)