Transcript Chapter 1
16 Integrated Marketing Communications Professor Close Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 Learning Outcomes LO 1 Discuss the role of promotion in the marketing mix LO 2 Discuss the elements of the promotional mix LO 3 Describe the communication process LO 4 Explain the goal and tasks of promotion Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 2 Learning Outcomes LO 5 Discuss the AIDA concept and its relationship to the promotional mix LO 6 Describe the factors that affect the promotional mix LO 7 Discuss the concept of integrated marketing communications Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 3 The Role of Promotion in the Marketing Mix Discuss the role of promotion in the marketing mix Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 4 The Role of Promotion Promotional Strategy A plan for the optimal use of the elements of promotion: Advertising Public Relations Personal Selling Sales Promotion Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 5 Exhibit 16.1 Role of Promotion in the Marketing Mix Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 6 Competitive Advantage High product quality Rapid delivery Low prices Excellent service Unique features Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 7 The Promotional Mix Discuss the elements of the promotional mix Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 8 The Promotional Mix Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. Includes: Chapter 16 Advertising Public Relations Personal Selling Sales Promotion Copyright ©2012 by Cengage Learning Inc. All rights reserved 9 The Promotional Mix Most commonly distributed by traditional media, though increasingly through nontraditional media, such as Web sites, e-mail, blogs, and interactive video kiosks in malls and supermarkets. Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 10 Advertising Media Traditional Advertising Media Chapter 16 Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards New Advertising Media Internet Banner ads Viral marketing E- mail Interactive video Copyright ©2012 by Cengage Learning Inc. All rights reserved 11 Advertising Advantages Reach large number of people Low cost per contact Disadvantages Total cost is high National reach is expensive for small companies Can be microtargeted Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 12 Public Relations Helps an organization communicate with customers, suppliers, stockholders, government officials, employees, and the community. Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 13 The Function of Public Relations Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 14 Sales Promotion Marketing activities— other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness. Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 15 Sales Promotion Free samples Contests End Consumers Premiums Trade Shows Vacation Giveaways Trade Customers Company Employees Coupons Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 16 Personal Selling Planned presentation to one or more prospective buyers for the purpose of making a sale. Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 17 Personal Selling Traditional Selling Relationship Selling Chapter 16 Attempts to persuade the buyer into a specific point of view. Win-lose outcome. Long-term relationships, create a win-win outcome Copyright ©2012 by Cengage Learning Inc. All rights reserved 18 Marketing Communication Describe the communication process Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 19 Communication Communication is… the process by which meanings are exchanged or shared through a common set of symbols. Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 20 Marketing Communication Categories of Communication Interpersonal Communication Chapter 16 Mass Communication Copyright ©2012 by Cengage Learning Inc. All rights reserved 21 Marketing Communication As Senders As Receivers Inform Develop messages Persuade Adapt messages Remind Spot new communication opportunities Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 22 Exhibit 16.2 Communication Process Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 23 Exhibit 16.3 Characteristics of the Elements in the Promotional Mix LO3 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 24 Characteristics of the Elements in the Promotional Mix Advertising Communication Mode Communication Control Feedback Amount Indirect and impersonal Low Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Message Flexibility Fast Same message to all audiences LO3 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 25 Characteristics of the Elements in the Promotional Mix Public Relations Communication Mode Communication Control Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control No Sponsor Identification No Reaching Large Audience Message Flexibility Chapter 16 Usually indirect, impersonal Moderate to low Usually fast Usually no direct control Copyright ©2012 by Cengage Learning Inc. All rights reserved 26 Characteristics of the Elements in the Promotional Mix Sales Promotion Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Little to moderate Varies Mostly one-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Message Flexibility Chapter 16 Usually indirect and impersonal Moderate to low Fast Same message to varied target Copyright ©2012 by Cengage Learning Inc. All rights reserved 27 Characteristics of the Elements in the Promotional Mix Personal Selling Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Much Immediate Two-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Message Flexibility Chapter 16 Direct and face-to-face High Slow Tailored to prospect Copyright ©2012 by Cengage Learning Inc. All rights reserved 28 Web 2.0 Web 2.0 tools include: • Blogs (online journals) • Podcasting (online radio) • Vodcasts (online videos) • Social Networks (Facebook, MySpace) Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 29 Blogging Chapter 16 Corporate Blogs Sponsored by a company or one of its brands and maintained by one or more of the company’s employees. ConsumerGenerated Blogs Independent and not associated with the marketing efforts of any particular company or brand. Copyright ©2012 by Cengage Learning Inc. All rights reserved 30 The Goals and Tasks of Promotion Explain the goals and tasks of promotion Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 31 Goals and Tasks of Promotion Informing Reminding Target Audience Persuading Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 32 Goals and Tasks of Promotion Informing Reminding PLC Stages: PLC Stages: Introduction Early Growth Maturity Target Audience PLC Stages: Growth Maturity Persuading Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 33 Beyond the Book Goals and Tasks of Promotion Chapter 16 Informative Promotion Increase awareness Explain how product works Suggest new uses Build company image Copyright ©2012 by Cengage Learning Inc. All rights reserved 34 Beyond the Book Goals and Tasks of Promotion Chapter 16 Persuasive Promotion Encourage brand switching Change customers’ perceptions of product attributes Influence immediate buying decision Persuade customers to call Copyright ©2012 by Cengage Learning Inc. All rights reserved 35 Beyond the Book Goals and Tasks of Promotion Chapter 16 Reminder Promotion Remind customers that product may be needed Remind customers where to buy product Maintain customer awareness Copyright ©2012 by Cengage Learning Inc. All rights reserved 36 Promotional Goals and the AIDA Concept Discuss the AIDA concept and its relationship to the promotional mix Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 37 The AIDA Concept AIDA Concept Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. Attention Interest Desire Action Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 38 Exhibit 16.4 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 39 The AIDA Concept Action Desire Interest Attention Chapter 16 Conative (doing) Affective (feeling) Cognitive (thinking) Copyright ©2012 by Cengage Learning Inc. All rights reserved 40 Factors Affecting the Promotional Mix Describe the factors that affect the promotional mix Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 41 Factors Affecting the Choice of Promotional Mix Nature of the product Stage in PLC Target market characteristics Type of buying decision Promotion funds Push or pull strategy Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 42 Exhibit 16.5 Product Life Cycle and the Promotional Mix Heavy use of Advertising; PR for Light Advertising; awareness; sales preintroduction promotion for trial publicity Chapter 16 Advertising, PR, brand loyalty; personal selling for distribution Ads decrease; sales promotion; personal selling; reminder & persuasive Copyright ©2012 by Cengage Learning Inc. All rights reserved AD/PR decrease; limited sales promotion; personal selling for distribution 43 Target Market Characteristics For… Advertising Widely scattered market Sales Promotion Informed buyers Less Personal Selling Chapter 16 Brand-loyal repeat purchasers Copyright ©2012 by Cengage Learning Inc. All rights reserved 44 Type of Buying Decision Advertising Routine Sales Promotion Neither Routine nor Complex Advertising Public Relations Personal Selling Complex Print Advertising Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 45 Available Funds Trade-offs with funds available Number of people in target market Quality of communication needed Relative costs of promotional elements Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 46 Exhibit 16.6 Push Strategy versus Pull Strategy Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 47 Integrated Marketing Communications Discuss the concept of integrated marketing communications Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 48 Integrated Marketing Communications Integrated Marketing Communications The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer. Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 49 IMC Popularity Growth Proliferation of thousands of media choices Fragmentation of the mass market Slash of advertising spending in favor of promotional techniques that generate immediate response Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 50 Beyond the Book Chapter 16 Videos Chapter 16 Vans – Integrated Marketing Communication This video examines the carefully planned strategy that Vans developed to create loyalty in a fickle niche market. Describe Vans’ pyramid strategy. How does it protect the brand? http://www.cengage.com/marketing/boo k_content/1439039429_lamb/company_c lips/ch16.html Copyright ©2012 by Cengage Learning Inc. All rights reserved 51