PowerPoint Chapter 17

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Chapter 17Chapter 17

Integrated Marketing

Communications


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Chapter OverviewChapter Overview

PromotionPromotion

Marketing Marketing CommunicationsCommunications


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Integrated Marketing CommunicationsIntegrated Marketing Communications

Coordination of all promotional activities to produce a unified customer-focused promotional messageSuccess of any IMC program depends on

identifying the members of an audience and understanding what they want


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Where’s The Tracker?Tracker’s IMC

Program Included a Game for Chevrolet Tracker That Drew 1.3 Million Entries Online and Another 100,000 Offline


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Example of an Ad Enhancing

GM’s Integrated Marketing Communications Program


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Importance of TeamworkIMC requires a total strategy including all

marketing activities, not just promotionSuccessful implementation of IMC requires

that everyone involved in every aspect of promotion function as a team


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Role of Databases in Effective Role of Databases in Effective IMC ProgramsIMC ProgramsWith the growth of the Internet,

marketers have been given the power to gather information faster and to organize it easier than ever before

By sharing this knowledge appropriately among all relative parties, a firm can lay the foundation for a successful IMC program


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The Communications ProcessThe Communications Process

An effective promotional message accomplishes three tasks:It gains the receiver’s attentionIt achieves understandingIt stimulates the receiver’s needs and

suggests an appropriate method of satisfying them

AIDA concept


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See if this ad gets your attention. Keep in mind not all advertisements are designed to sell a product or service. So what is this ad’s objective(s)?


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Example of an Ad Accomplishing the Three Tasks of the Communications Process for Its Target Market


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Global Difficulties with the Communication Global Difficulties with the Communication ProcessProcessIn China: KFC’s slogan: “Finger lickin’ good”

came out as “Eat your fingers off”Also in China: Coca-Cola had thousands of

signs made using the translation: “Ke-kou-ke-la”Depending on the dialect this means . . .“Bite the wax tadpole,” or “Female horse stuffed with wax”

In Taiwan: Pepsi’s slogan, “Come alive with the Pepsi generation” came out as “Pepsi will bring your ancestors back from the dead”


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Objectives of PromotionObjectives of Promotion

Provide InformationProvide InformationDisney World

Ad promoting a free video to provide Information for vacation planning


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Increase DemandIncrease DemandSome promotions

are aimed at increasing primary demand, the desire for a general product category

More promotions are aimed at increasing selective demand, the desire for a specific brand


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Differentiate the Differentiate the ProductProductHomogenous

demand for many products results when consumers regard the firm’s output as virtually identical to its competitors’


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Daewoo Lanos Television Ad Differentiating Its Product from Those of the Competition


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Identify how two competitors, Visa and MasterCard, go about differentiating their products in these two ads.


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Accentuate the Accentuate the Product’s ValueProduct’s ValuePromotion can

explain the greater ownership utility of a product to buyers

Johnson & JohnsonFirst Aid To Go!Accentuating a Product’s Value


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Stabilize SalesStabilize SalesFor the typical firm, sales fluctuations may result

from cyclical, seasonal, or irregular demandStabilizing these variations is often an objective

of promotional strategy

Class Discussion

Is the purpose of this ad primarily to provide information, increase demand, differentiate the product, accentuate the product’s value or stabilize sales?


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Elements of the Promotional MixElements of the Promotional Mix

Promotional mixPromotional mix: blend of personal selling and nonpersonal selling designed to achieve promotional objectivesPersonal sellingPersonal sellingNonpersonal sellingNonpersonal selling


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AdvertisingAdvertisingPaid, nonpersonal

communication through various media with the hope of informing or persuading members of a particular audience


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Product PlacementProduct PlacementMarketer pays a motion picture or

television program owner a fee to display his or her product prominently in the film or show

Big budget movies, such as The Matrix, feature prominent placement of various products throughout the movie.


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Sales PromotionSales PromotionMarketing activities that

stimulates consumer purchasing

Trade promotion


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TV AD using a popular sales promotion technique: A free premium with the purchase of an item.


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Direct MarketingDirect MarketingDirect communications other than personal

sales contact between buyer and seller, designed to generate sales, information requests, or store visits


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Public relationsPublic relations: firm’s communications and relationships with its various publics

PublicityPublicity: stimulation of demand for good, service, place, idea, person, or organization by unpaid placement of commercially significant news or favorable media presentations


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SponsorshipsSponsorships

Provision of funds for a sporting or cultural event in exchange for a direct association with the events; in e-commerce, a long-term linkage between a Web site and a marketer


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Sponsorship Sponsorship SpendingSpending has more than tripled during the past 10 years to almost $10 Billion.AT&T: A

Sponsor of the PGA Tour


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Growth of SponsorshipsGrowth of SponsorshipsSponsorship has grown rapidly during the past

30 years

How Sponsorship Differs from AdvertisingHow Sponsorship Differs from AdvertisingDegree of controlNature of the messageAudience reactionMeasurements of effectiveness


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Direct MarketingDirect Marketing Rapidly growing promotional mix element

Related overall spending total $1.7 trillion Direct Marketing Communication ChannelsDirect Marketing Communication Channels


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Direct MailDirect MailMarketers combine information from internal

and external databases, surveys, coupons, and rebates that require responses to provide information about consumer lifestyles, buying habits, and wants

Catalogs


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TelemarketingTelemarketing: Includes outbound contacts by salespeople or inbound contacts initiated by customers who want to obtain information and place orders

Offering Toll-Free Telephone Numbers to Catalog Shoppers


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Direct Marketing via Broadcast ChannelsDirect Marketing via Broadcast ChannelsBrief (30 to 90 second) direct response ads

on television or radioHome shopping channels like:

QVCHSN

Infomercial: promotional presentation for a single product running 30 minutes or longer in a format that resembles a regular television program


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Electronic Direct Marketing ChannelsElectronic Direct Marketing ChannelsE-mail direct marketing is a natural and

easy extension of traditional direct mail marketing

Other Direct Marketing ChannelsOther Direct Marketing ChannelsPrint media is generally not as effective as

Web marketing or telemarketing for direct marketers


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PeoplepcThis Print Ad

Supplements a Promotional Campaign That Is Primarily Based on Broadcast Advertising


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Starbucks EncoreStarbucks EncoreStarbucks’

Direct-Response Print Ad


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Developing an Optimal Promotional MixDeveloping an Optimal Promotional Mix

Factors that influence the effectiveness of a promotional to mix:Nature of the marketNature of the productStage in the product life-cyclePriceFunds available for promotion


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Promotional StrategiesPromotional Strategies

Pulling strategyPulling strategy

Pushing strategyPushing strategy


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Colgate TotalColgate TotalUsing a Pulling

Strategy With Ads Like This Combined With a Pushing Strategy Created Strong Demand for This Improved Product


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Budgeting for Promotional StrategyBudgeting for Promotional Strategy

Percentage-of-sales method Fixed-sum-per-unit method Meeting competition method Task-objective method


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Measuring the Effectiveness of PromotionMeasuring the Effectiveness of Promotion

Two basic measurement tools:Direct sales resultsIndirect evaluation concentrates on

quantifiable indicators of effectiveness like:RecallReadership


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The Value of Marketing CommunicationsThe Value of Marketing Communications

Social ImportanceSocial ImportanceSociety provides no commonly accepted set of

standards regarding tasteThe one generally accepted standard in a

market society is freedom of choicePromotion helps achieve socially oriented

objectives like the elimination of drug abuse


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Promotional Message Addressing a Universal Social Concern


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Merck Vaccine DivisionThe Social

Importance of Marketing Communications


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Business ImportanceBusiness ImportancePromotion has become increasingly

important to both large and small firmsPromotion is an effective tool to change

attitudes, boost brand loyalty and increase sales

Both business and nonbusiness enterprises recognize the importance of promotion


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The effectiveness of advertisements like this classic to encourage brand loyalty and increase sales is well-documented.


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Economic ImportanceEconomic ImportanceEffective promotion has allowed society to

derive benefits not otherwise availablePromotion increases the number of units

sold, which lowers production costs and sales prices

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