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Chapter 14 Integrated Marketing
Communications
Promotional Mix
Advertising
Elements
of the
Promotional
Mix
Public Relations
Personal Selling
Sales Promotion
Advertising Media
Traditional
Advertising Media
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Television
Radio
Newspapers
Magazines
Books
Direct mail
Billboards
Transit cards
Electronic
Advertising Media
 Internet
 Computer modems
 Fax machines
Advertising
Advantages
Disadvantages
• Ability to reach large
number of people
• Total cost is high
• Cost per contact is low
• Can be micro-targeted
Marketing Communication
Categories of
Communication
Interpersonal
Communication
Mass
Communication
The Communication Process
As Senders
As Receivers
Inform
Develop messages
Persuade
Adapt messages
Remind
Spot new
communication
opportunities
The Sender and Encoding
Sender
The originator of the message in the
communication process.
Encoding
The conversion of a sender’s ideas
and thoughts into a message, usually
in the form of words or signs.
The Communication Process
Noise
Sender
Encoding
Message
Message
Channel
Message
Channel
Decoding
Message
Receiver
Characteristics of Advertising
Advertising
Communication Mode
Indirect and non-personal
Communication Control
Low
Feedback Amount
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
Characteristics of Public Relations
Public Relations
Communication Mode
Communication Control
Feedback Amount
Usually indirect, non-personal
Moderate to low
Little
Feedback Speed
Delayed
Message Flow Direction
One-way
Message Content Control
No
Sponsor Identification
No
Reaching Large Audience
Message Flexibility
Usually fast
Usually no direct control
Characteristics of
Sales Promotion
Sales Promotion
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Usually Indirect and non-personal
Moderate to low
Little to moderate
Varies
Mostly one-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
Fast
Same message to varied target
Characteristics of Personal Selling
Personal Selling
Communication Mode
Direct and face-to-face
Communication Control
High
Feedback Amount
Much
Feedback Speed
Message Flow Direction
Immediate
Two-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
Slow
Tailored to prospect
Goals and Tasks of Promotion
Informing
PLC Stages:
Introduction
Early Growth
PLC Stages:
Growth
Maturity
Reminding
PLC Stages:
Maturity
Target
Audience
Persuading
Goals and Tasks of Promotion
Informative Objective
•
Increase awareness
•
Explain how product works
•
Suggest new uses
•
Build company image
Goals and Tasks of Promotion
Persuasion Objective
• Encourage brand switching
• Change customers’ perception of
product attributes
• Influence buying decision
• Persuade customers to call
Goals and Tasks of Promotion
Reminder Objective
•
Remind customers that product
may be needed
•
Remind customers where to buy product
•
Maintain customer awareness
The AIDA Concept
Action
Desire
Interest
Attention
AIDA and the Promotional Mix
Awareness
Interest
Desire
Action
Advertising
Very
effective
Very
effective
Somewhat
effective
Not
effective
Public
Relations
Very
effective
Very
effective
Very
effective
Not
effective
Sales
Promotion
Somewhat
effective
Somewhat
effective
Very
effective
Very
effective
Personal
Selling
Somewhat
effective
Very
effective
Very
effective
Somewhat
effective
Factors Affecting the
Promotional Mix
Nature of Product
Stage in PLC
Target Market Factors
Factors
Affecting
Choice of
Promotional Mix
Type of Buying Decision
Promotion Funds
Push or Pull Strategy
Sales ($)
Product Life Cycle and the
Promotional Mix
Maturity
Introduction
Growth
Decline
Time
Light
Heavy use of
Advertising, advertising,
prePR for
introduction awareness;
Publicity
sales
promotion
for trial
Advertising,
PR, Brand
loyalty
Personal
Selling for
distribution
Ads
decrease.
Sales
Promotion,
Personal
Selling
Reminder &
Persuasive
AD/PR
decrease
Limited
Sales
Promotion,
Personal
Selling for
distribution
Push and Pull Strategies
PUSH STRATEGY
Manufacturer
promotes to
wholesaler
Wholesaler
promotes to
retailer
Retailer
promotes to
consumer
Consumer
buys from
retailer
Orders to manufacturer
PULL STRATEGY
Manufacturer
promotes to
consumer
Consumer
demands
product
from retailer
Retailer
demands
product
from wholesaler
Orders to manufacturer
Wholesaler
demands
product from
manufacturer