Chapter 13

Integrated Marketing Communication: Advertising, Sales Promotion, and Public Relations

Learning Objective
1. 2. 3. 4. 5. Discuss the process and advantages of integrated marketing communications. Define the five promotion tools and discuss the factors that must be considered in shaping the overall promotion mix. Describe and discuss the major decisions involved in developing an advertising program. Explain how sales promotion campaigns are developed and implemented. Explain how companies use public relations to communicate with their publics.
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Marketing Communication Mix or Promotion Mix

Products Design

Stores that Sell the Product

Products Price

Products Package
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The Changing Communications Environment Marketers Have Shifted

Two Factors are Changing the Face of Todays Marketing Communications: Improvements in Information Technology Has Led to Segmented Marketing More Narrowcasting
Market Fragmentation Led to Media Fragmentation
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Away From Mass Marketing Less Broadcasting

The Need for Integrated Marketing Communications

With Integrated Marketing Communications (IMC), the Company Carefully Integrates and Coordinates Its Many Communications Channels to Deliver a Clear, Consistent, and Compelling Message About the Organization and Its Product or Service.
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Integrated Marketing Communications

Advertising Personal selling

Sales promotion Public relations

Direct marketing
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Management of the Customer Relationship Over Time Through the Following Stages:
Preselling Preselling Selling

A View of the Communications Marketers View Communications as the Process

PostConsumption

Consuming
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Elements in the Communication Process

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Key Factors in Good Communication

Sellers Need to Sellers Need to Know What Audiences Know What Audiences Wish to Reach Wish to Reach And Desired Response And Desired Response Sellers Must Develop Sellers Must Develop Feedback Channels to Feedback Channels to Assess Audiences Assess Audiences Response to Response to Messages. Messages. Sellers Must Send Sellers Must Send Messages Through Messages Through Media that Reach Media that Reach Target Audiences Target Audiences
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Sellers Must be Good Sellers Must be Good at Encoding Messages at Encoding Messages That Target Audience That Target Audience Can Decode. Can Decode.

Steps in Developing Effective Communication

Step 1. Identifying the Target Audience Step 2. Determining the Communication Objectives
Buyer Readiness Stages
Awareness Knowledge Liking Preference Conviction Purchase Purchase
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Steps in Developing Effective Communication

Step 3. Designing a Message
Message Content
Rational Appeals Emotional Appeals Moral Appeals

Message Structure
Draw Conclusions Argument Type Argument Order Headline, Illustration, Copy, & Color Body Language

Message Format

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Moral appeal:
Save Water, Save Life

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EMOTIONAL APPEAL: Humorous

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Steps in Developing Effective Communication Step 4. Choosing Media

Personal Communication Channels Nonpersonal Communication Channels

Step 5. Selecting the Message Source Step 6. Collecting Feedback

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Selecting message source:

Tiger Woods endorses Nike

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One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on Promotion.

Setting the Total Promotion Budget

Percentage of Sales Percentage of Sales

Based on What the Company Can Afford

Affordable

Based on a Certain Percentage Based on a Certain Percentage of Current or Forecasted Sales of Current or Forecasted Sales Based on the Competitors Based on the Competitors Promotion Budget Promotion Budget
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Objective-and-Task Objective-and-Task

Based on Determining Based on Determining Objectives & Tasks, Then Objectives & Tasks, Then Estimating Costs Estimating Costs

Competitive-Parity Competitive-Parity

Setting the Promotion Mix

Advertising Advertising Personal Personal Selling Selling Sales Sales Promotion Promotion Public Public Relations Relations Direct Direct Marketing Marketing
Reach Many Buyers, Repeat Message Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive Many Times, Impersonal, Expensive Personal Interaction, Relationship Personal Interaction, Relationship Building, Most Expensive Promo Tool Building, Most Expensive Promo Tool Wide Assortment of Tools, Rewards Wide Assortment of Tools, Rewards Quick Response, Efforts Short-Lived Quick Response, Efforts Short-Lived Very Believable, Dramatize a Company Very Believable, Dramatize a Company or Product, Underutilized or Product, Underutilized Nonpublic, Immediate, Customized, Nonpublic, Immediate, Customized, Interactive Interactive
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Promotion Mix Strategies

Strategy that Calls for Spending A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand. Strategy Selected Depends on: Type of ProductMarket & Product Life-Cycle Stage Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels.

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Advertising
Advertising is centuries old. U.S. advertisers spend in excess of $212 billion each year as compared Malaysia advertisers spent $432 million; worldwide spending exceeds $414 billion. Advertising is used by:
Business firms, Nonprofit organizations, Professionals, and Social agencies.
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What is Advertising?
Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.

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Major Advertising Decisions

Message Decisions
Message Strategy Message Execution

Objectives Setting
Communication objectives Sales Objectives

Budget Decisions

Affordable Approach Percent of sales Competitive parity Objective and task

Campaign Evaluation
Communication Impact Sales Impact

Reach, Frequency, Impact Major Media Types Specific Media Types Media Timing
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Media Decisions

Setting Advertising Objectives

Informative Advertising
Inform Consumers or Build Primary Demand i.e CD Players

Persuasive Advertising
Build Selective Demand i.e Sony CD Players

Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time

Advertising Objective

Comparison Advertising
Compares One Brand to Another i.e. KFC vs. Mc D

Reminder Advertising
Keeps Consumers Thinking About a Product i.e. Coca-Cola
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Comparativ e Advertising

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After Determining Its Advertising Objectives, the Marketer Must Set the Advertising Budget for Each Product and Market. (From Chapter 14)
Affordable Percentage of Sales Percentage of Sales

Setting the Promotion Budget

Based on What the Company Can Afford

Based on a Certain Percentage Based on a Certain Percentage of Current or Forecasted Sales of Current or Forecasted Sales Based on the Competitors Based on the Competitors Promotion Budget Promotion Budget
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Objective-and-Task Objective-and-Task

Based on Determining Based on Determining Objectives & Tasks, Then Objectives & Tasks, Then Estimating Costs Estimating Costs

Competitive-Parity Competitive-Parity

Setting the Advertising Budget

Factors to be considered when setting the advertising budget:
Stage in the product life cycle, Market share, Competition and clutter, Product differentiation.

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Advertising Strategy Consists of Two Major Elements and Companies are Realizing the Benefits of Planning These Two Elements Jointly. Creating the Advertising Messages
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Developing Advertising Strategy

Selecting the Advertising Media

Developing Advertising Strategy: Creating Ad

Messages
General Message to Be Communicated to Customers

Plan a Message Strategy

Develop a Message Develop a Message

Focus on Focus on Customer Benefits Customer Benefits

Visualization or Phrase Visualization or Phrase Combination of Both Combination of Both

Creative Concept Creative Concept Big Idea Big Idea

Advertising Appeals Advertising Appeals

Meaningful Meaningful Believable Believable Distinctive Distinctive

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Developing Advertising Strategy: Message

Execution Ad to Capture the Turning the Big Idea Into an Actual
Target Markets Attention and Interest.
Slice of Life Slice of Life Lifestyle Lifestyle Fantasy Fantasy Mood or Image Mood or Image Musical Musical
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Testimonial Evidence Testimonial Evidence Scientific Evidence Scientific Evidence Technical Expertise Technical Expertise Personality Symbol Personality Symbol

Typical Message Execution Styles

Advertising Strategy:
Selecting Advertising Media Step 1. Decide on Reach, Frequency,
and Impact Step 2. Choosing Among Major Media Types
Media Habits of Target Consumers, Nature of the Product, Types of Message, Cost

Specific Media Within a Given Type, i.e. Magazines. Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality

Step 3. Selecting Specific Media Vehicles

Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing
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Step 4. Deciding on Media Timing

Evaluating Advertising
Advertising Program Evaluation

Communication Effects Communication Effects

Is the Ad Communicating Well? Is the Ad Communicating Well?

Sales Effects Sales Effects

Is the Ad Increasing Sales? Is the Ad Increasing Sales?

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Other Advertising Considerations

Sales Departments in Small Companies Advertising Departments in Larger Companies

Advertising Agency
Firm that Assists Companies in the Planning, Creation, & Implementation of Their Advertising Programs
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Advertising Agencies
Large agencies divide their staffs to specialize in creative,media,research, or business (account planning). Ad agencies are moving away from the commission system because it no long accurately reflects the services performed. Most ad agency clients still want just a few of the services that can be provided by the agency, so diversification efforts have been 12 - 32

International Advertising Decisions

Adaptation of Global Advertising Advertising Media Differ Considerably in Availability and Cost Regulation in Advertising Practices Comparison Ads Not Acceptable in All Countries Programs Must be Matched to Local Cultures and Customs
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What is Sales Promotion ?

Sales Promotion is a Mass Communication Technique That Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Offers Reasons to Buy Now.
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Rapid Growth of Sales Promotion

Sales promotion can take the form of consumer promotions, business promotions, trade promotions 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, Consumers have become more deal oriented.
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 Increase short-term sales or help build long-term market share. Get retailers to:
carry new items and more inventory, advertise products, give products more shelf space, and buy product ahead.

Sales Promotion Objectives

In general, sales promotion should focus on consumer relationship 12 - 36 building.

Major Consumer Sales Promotion Tools

Sample Sample Coupons Coupons Cash Refunds Cash Refunds Price Packs Price Packs Premiums Premiums Advertising Advertising Specialties Specialties
Trial amount of a product Trial amount of a product Savings when purchasing specified Savings when purchasing specified products products Refund of part of the purchase price Refund of part of the purchase price Reduced prices marked on the label or Reduced prices marked on the label or package package Goods offered free or low cost as an Goods offered free or low cost as an incentive to buy a product incentive to buy a product Articles imprinted with an advertisers Articles imprinted with an advertisers name given as gifts name given as gifts
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Major Consumer Sales Promotion Tools

Patronage Rewards Patronage Rewards Point-of-Purchase Point-of-Purchase Contests Contests Sweepstakes Sweepstakes Game Game
Cash or other rewards for the use of a Cash or other rewards for the use of a certain product certain product Displays and demonstrations that take Displays and demonstrations that take place at the point of sale place at the point of sale Consumers submit an entry to be judged Consumers submit an entry to be judged Consumers submit their names for a Consumers submit their names for a drawing drawing Presents consumers with something every Presents consumers with something every time they buy time they buy
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Trade-Promotion Objectives

Major Trade Sales Promotion Tools

Trade-Promotion Tools Discounts Discounts Allowances Allowances

Persuade Retailers or Persuade Retailers or Wholesalers to Carry a Brand Wholesalers to Carry a Brand Give a Brand Shelf Space Give a Brand Shelf Space Promote a Brand in Promote a Brand in Advertising Advertising Push a Brand to Consumers Push a Brand to Consumers

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Major Business Sales Promotion Tools

Business-Promotion Objectives Generate Business Leads Generate Business Leads Stimulate Purchases Stimulate Purchases Reward Customers Reward Customers Motivate Salespeople Motivate Salespeople Business-Promotion Tools Conventions Conventions Trade Shows Trade Shows Sales Contests Sales Contests

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Developing the Sales Promotion Program

Decide on the Size of the Incentive Decide on the Size of the Incentive Set Conditions for Participation Set Conditions for Participation Determine How to Promote and Determine How to Promote and Distribute the Promotion Program Distribute the Promotion Program Determine the Length of the Program Determine the Length of the Program Evaluate the Program Evaluate the Program
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What is Public Relations?

Public Relations Involves Building Good Relations With the Companys Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate Image, and Handling or Heading Off Unfavorable Rumors, Stories, and Events.
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Major Public Relations Functions

Press Relations or Agentry Press Relations or Agentry Product Publicity Product Publicity Public Affairs Public Affairs Lobbying Lobbying Investor Relations Investor Relations Development Development
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Public Relations Departments May Perform Any of All of the Following Functions:

Major Public Relations Tools

News Web Site Public Service Activities Corporate Identity Materials Speeches Special Events

Audiovisual Materials

Written Materials
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Major Public Relations Decisions

Setting Public Relations Objectives Setting Public Relations Objectives Choosing the Public Relations Messages Choosing the Public Relations Messages and Vehicles and Vehicles Implementing the Public Relations Plan Implementing the Public Relations Plan Evaluating Public Relations Results Evaluating Public Relations Results
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1. Define the roles of advertising, sales promotion, and public relations in the promotion mix. Describe the major decisions involved in developing an advertising program. Explain how sales promotion campaigns are developed and implemented. Explain how companies use public 12 - 46

Review of Concept Connections

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