Integrated Marketing Communications

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CHAPTER

14

Integrated Marketing Communications

MarketingLamb, Hair, McDaniel

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How to proceed…

LO2

Every time you see the audio icon to the left, click on it to hear my comments and explanations of the concept.

Every time you see the icon to the left, click on it to view a website, video on YouTube or other material online that relates to or better illustrates the concept.

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LOI

Overall Marketing Objectives

Overall Marketing Objectives

Marketing Mix• Product• Place• Promotion• Price

Marketing Mix• Product• Place• Promotion• Price

Target MarketTarget Market

Promotional Mix

• Advertising• Public Relations• Sales Promotion• Personal Selling

Promotion Plan

Promotional Mix

• Advertising• Public Relations• Sales Promotion• Personal Selling

Promotion Plan

The Role of Promotionin the Marketing Mix

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The Promotional MixLO2

PromotionalMix

PromotionalMix

Combination of promotiontools used to reach the target market and fulfill theorganization’s overall goals.

Advertising Public Relations Sales Promotion Personal Selling Direct Marketing Interactive Marketing

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LO7

IntegratedMarketing

Communications

IntegratedMarketing

Communications

The careful coordination of all

promotional messages to

assure the consistency of

messages at every contact

point where a company meets

the consumer.

Integrated Marketing Communications

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Example of good IMC: Chick-Fil-A

Bright House Asterisk Hunters Campaign

Photo Contest

Advertisement

Promotional Mix

Definitions and characteristics follow Each will be explored in more detail next week in

class along with many examples

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The Promotional MixLO2

AdvertisingAdvertising Impersonal, one-way

mass communication about

a product or organization

that is paid for by a

marketer.

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter14

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LO2 Advertising

Advantages Disadvantages

Reach large number of people

Low cost per contact

Can be micro-targeted

Total cost is high

National reach is expensive for small companies

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LO2

Traditional Advertising Media

Traditional Advertising Media

NewAdvertising Media

NewAdvertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Banner ads Viral marketing:

Read article and watch a few videos of viral campaigns

E- mail Interactive video

Traditional Advertising Media and Interactive Marketing Media

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Where is the growth?

Social Media Revolution…

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Directory Assistance Advertising

SOURCE: Rebecca Buckman, “Your Listing, and a Word From Our Sponsor,”

Wall Street Journal, April 20,2006, B1.

Companies are offering free telephone directory assistance—but there’s an advertisement first.

The audio ads are narrowly targeted, and are 10 to 12 seconds.

The growth of such free services could represent another change in the telecom industry.

Dial 1-800-FREE411 or 1-800-411-METRO

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Placements

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Product Placements How it works…

– Straight fee and higher fee depending on how long or how much exposure they get

• Ex: Pampers paid $50K to be featured in 3 Men & a Baby

• Ex: Exxon paid $300K to be featured in Days of Thunder– Exchange for goods or promotions (one half of all

placements)– Free, if the film production company feels like it is a good fit

and wants to use it regardless of compensation. However, it’s good to get agreement from them first!

E.T. and Reese’s Pieces – Reese’s Pieces received placement and ET movie received advertising support

Product Placement Exercise

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Match the movie with the product featured in it…

Little Nicky Castaway Ace Ventura: Pet Detective Cat in the Hat Die Another Day Sweet Home Alabama You’ve Got Mail SpiderMan Men in Black Toy Story I-Robot Miami Dolphins

Aston Martin Audi RayBan sunglasses Tiffany & Co. Popeye’s Chicken Gap Mr. Potato Head AOL Fed Ex Universal Studios Reese’s Pieces Dr. Pepper

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Answers…

Little Nicky Castaway Ace Ventura: Pet Detective Cat in the Hat Die Another Day Sweet Home Alabama You’ve Got Mail SpiderMan Men in Black Toy Story I-Robot

Popeye’s Chicken Fed Ex Miami Dolphins Universal Studios Aston Martin Tiffany & Co. AOL Dr. Pepper RayBan sunglasses Mr. Potato Head Audi

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Placement in Game Shows

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Digital Ads at Sporting Events

Song lyric product placement

The Kluger agency handles accounts such as Mercedes, Nike, Dolce & Gabbana, Louis Viutton, and other high profile brands with insertions into songs by artists such as Mariah Carey, Black Eyed Peas, Pink, Ludacris and many more

http://klugeragency.com/

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Videogame Advertising

SOURCE: Robert A. Guth and Nick Wingfield, “Microsoft’s ‘Massive’ Move into Game Ads,”

Wall Street Journal, April 26,2006, B1.

Microsoft plans to acquire Massive inc., a start-up that places ads in video games.

Ads are inserted into the game environment.

Video games could become a large new medium for advertising.

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Unusual forms of advertising: Tat-vertising

Corporate Advertising by tattooing a logo or message on someone’s body

Video

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Public RelationsLO2

PublicRelations

PublicRelations

The marketing function thatevaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.

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The Function of Public Relations

Maintain a positive image

Educate the public about the company’s objectives

Introduce new products

Support the sales effort

Generate favorable publicity

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LO2 Public Relations

Advantages Disadvantages

Credibility

Low absolute cost

Controllable (except for publicity)

Publicity (dealing with the media) is uncontrollable and can be negative

Publicity that is positive is not guaranteed (message and placement of message)

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Sales PromotionLO2

SalesPromotion

SalesPromotion

Marketing activities--other

than personal selling,

advertising, and public

relations--that stimulate

consumer buying and

dealer effectiveness.

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Sales Promotion


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LO2

EndConsumers

EndConsumers

Trade Customers

Trade Customers

CompanyEmployees Company

Employees

Free samplesFree samples

ContestsContests

PremiumsPremiums

Trade ShowsTrade Shows

Vacation GiveawaysVacation Giveaways

CouponsCoupons

Sales Promotion

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PersonalSelling

PersonalSelling

Personal SellingLO2

Planned presentation to one or more prospective buyers for the purpose of making a sale.

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LO2 Personal Selling

Traditional Selling

Traditional Selling

Relationship Selling

Relationship Selling

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REVIEW LEARNING OUTCOMEElements of the Promotional Mix

LO2

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CommunicationLO3

CommunicationCommunication The process by which we

exchange or share meanings

through a common set of

symbols.

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LO3

NoiseNoise

SenderSender EncodingMessage

EncodingMessage

FeedbackChannel

FeedbackChannel

MessageChannel

MessageChannel

DecodingMessage

DecodingMessage ReceiverReceiver

The Communication Process

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Relating Promotion to the Communications ProcessRelating Promotion to the Communications Process

THE COMMUNICATIONS PROCESSTHE COMMUNICATIONS PROCESS

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Test Yourself: Who is the sender? How did they encode the

message? What is the channel? How could you decode the

message? Who is the receiver? What could be noise?

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Answers: Who is the sender?

– Heinz How did they encode the

message?– Use the bottle upside down

with the headline on the bottle; little copy, mainly just the graphic image

What is the channel?– Magazine

How could you decode the message?

– Heinz is very thick Who is the receiver?

– Magazine subscribers/readers What could be noise?

– Competing ads in magazine (clutter)

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InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

Goals and Tasks of Promotion

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Figure 16.2: Advertising Objectives in Relation

to the Stage in the Product Life Cycle

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What do you think the goal is?

Reminder, with a little persuasion

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LO5

AIDA ConceptAIDA ConceptModel that outlines the

process for achieving

promotional goals in terms

of stages of consumer

involvement with the

message.

The AIDA Concept


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LO5 The AIDA Concept

Action

Desire

Interest

Attention Cognitive (thinking)

Affective (feeling)

Conative (doing)

LO5


TUMS

A Print Message Following the AIDA

Concept

Copyright © 2001 by Harcourt, Inc. All rights reserved.

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Nature of the productNature of the product

Stage in PLCStage in PLC

Target market factorsTarget market factors

Type of buying decisionType of buying decision

Promotion fundsPromotion funds

Push or pull strategyPush or pull strategy

Factors Affecting the Choice of Promotional Mix

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LO6 Stage in the Product Life Cycle

Light Advertising; pre-introductionpublicity

Heavy use of Advertising;PR forawareness;sales promotionfor trial

AD/PRdecrease;limited sales promotion; personal selling fordistribution

Ads decrease;sales promotion;personal selling;reminder & persuasive

Advertising, PR, brandloyalty;personal selling fordistribution

IntroductionIntroduction GrowthGrowth

MaturityMaturityDeclineDecline

Sal

es (

$)S

ales

($)

TimeTime

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LO6

Advertising

Sales PromotionRoutineRoutine

Personal Selling

Neither Routinenor Complex

Neither Routinenor Complex

Advertising

Public Relations

Print AdvertisingComplexComplex

Type of Buying Decision

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LO6

Trade-offs with funds available

Number of people in target market

Quality of communication needed

Relative costs of promotional elements

Available Funds

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LO6 Push and Pull Strategies

Manufacturerpromotes to wholesaler

Manufacturerpromotes to wholesaler

Wholesaler promotes to

retailer

Wholesaler promotes to

retailer

Retailer promotes toconsumer

Retailer promotes toconsumer

Consumerbuys from

retailer

Consumerbuys from

retailer

PUSH STRATEGY

Orders to manufacturer

Manufacturerpromotes to

consumer

Manufacturerpromotes to

consumer

Consumer demands product

from retailer

Consumer demands product

from retailer

Retailer demands product

from wholesaler

Retailer demands product

from wholesaler

Wholesaler demands

product frommanufacturer

Wholesaler demands

product frommanufacturer

Orders to manufacturer

PULL STRATEGY

Examples…

Push Money: Extra compensation paid by a manufacturer or employer to a salesperson for selling a particular product. For example, an appliance manufacturer offers a bonus for selling a washer or dryer from a line that has been discontinued. Also called spiff.

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Push Strategy

Examples…

Pull Strategy

Business

Integrated Marketing Communications