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Integrated Marketing Communications

Integrated Marketing Communications. 14. chapter. Prepared by Deborah Baker Texas Christian University. Learning Objectives. 1. Discuss the role of promotion in the marketing mix. 2. Discuss the elements of the promotional mix. 3. Describe the communication process. 14. chapter.

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Integrated Marketing Communications

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  1. Integrated Marketing Communications 14 chapter Prepared by Deborah Baker Texas Christian University Chapter 14 Version 6e

  2. Learning Objectives 1. Discuss the role of promotion in the marketing mix. 2. Discuss the elements of the promotional mix. 3. Describe the communication process. 14 chapter Chapter 14 Version 6e

  3. Learning Objectives (continued) 4. Explain the goal and tasks of promotion. 5. Discuss the AIDA concept and its relationship to the promotional mix. 6. Describe the factors that affect the promotional mix. 7. Discuss the concept of integrated marketing communications. 14 chapter Chapter 14 Version 6e

  4. 1 Learning Objective Discuss the role of promotion in the marketing mix. Chapter 14 Version 6e

  5. 1 Promotion Inform Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. Persuade Remind Chapter 14 Version 6e

  6. 1 Promotional Strategy A plan for the optimal use of the elements of promotion: Advertising Public Relations Personal Selling Sales Promotion Chapter 14 Version 6e

  7. Overall Marketing Objectives • Promotional Mix • Advertising • Public Relations • Personal Selling • Sales Promotion • Promotion Plan • Marketing Mix • Product • Distribution • Promotion • Price Target Market 1 The Role of Promotion Chapter 14 Version 6e

  8. High Product Quality Rapid Delivery Features that provide Differential Advantage Low Prices Excellent Service Unique Features 1 Differential Advantage Chapter 14 Version 6e

  9. 2 Learning Objective Discuss the elements of the promotional mix. Chapter 14 Version 6e

  10. 2 Promotional Mix Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. Advertising Public Relations Personal Selling Sales Promotion Chapter 14 Version 6e

  11. Advertising Elements of the Promotional Mix Public Relations Personal Selling Sales Promotion 2 Promotional Mix Chapter 14 Version 6e

  12. 2 Advertising Impersonal, one-way mass communication about a product or organization that is paid for by a marketer. Chapter 14 Version 6e

  13. Traditional Advertising Media ElectronicAdvertising Media • Television • Radio • Newspapers • Magazines • Books • Direct mail • Billboards • Transit cards • Internet • Computer modems • Fax machines 2 Advertising Media Chapter 14 Version 6e

  14. Advantages Ability to reach large number of people Cost per contact is low Can be micro-targeted Disadvantages Total cost is high 2 Advertising Chapter 14 Version 6e

  15. 2 Public Relations 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. Chapter 14 Version 6e

  16. Functions of Public Relations Evaluates public attitudes Executes programs to “win” public Identifies areas of public interest 2 Public Relations Chapter 14 Version 6e

  17. 2 Publicity Public information about a company, good, or service appearing in the mass media as a news item. Chapter 14 Version 6e

  18. 2 Sales Promotion Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness. Chapter 14 Version 6e

  19. Sales Promotion Targets End Consumers Company Employees Trade Customers 2 Sales Promotion Chapter 14 Version 6e

  20. Popular Tools for Consumer Sales Promotion Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons 2 Sales Promotion Chapter 14 Version 6e

  21. 2 Personal Selling Planned presentation to one or more prospective buyers for the purpose of making a sale. Chapter 14 Version 6e

  22. 2 Personal Selling Traditional Selling Relationship Selling Chapter 14 Version 6e

  23. 3 Learning Objective Describe the communication process. Chapter 14 Version 6e

  24. 3 Communication The process by which we exchange or share meanings through a common set of symbols. Chapter 14 Version 6e

  25. 3 Marketing Communication Categories of Communication Interpersonal Communication Mass Communication Chapter 14 Version 6e

  26. As Senders As Receivers • Inform • Persuade • Remind • Develop messages • Adapt messages • Spot new communication opportunities 3 The Communication Process Chapter 14 Version 6e

  27. 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. 3 The Sender and Encoding Chapter 14 Version 6e

  28. Noise Sender EncodingMessage Message Channel Decoding Message Receiver Message Channel 3 The Communication Process Chapter 14 Version 6e

  29. 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 Fast Message Flexibility Same message to all audiences 3 Characteristics of Advertising Chapter 14 Version 6e

  30. Public Relations Communication Mode Usually indirect, non-personal Communication Control Moderate to low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control No Sponsor Identification No Reaching Large Audience Usually fast Message Flexibility Usually no direct control 3 Characteristics of Public Relations Chapter 14 Version 6e

  31. Sales Promotion Communication Mode Usually Indirect and non-personal Communication Control Moderate to low Feedback Amount Little to moderate Feedback Speed Varies Message Flow Direction Mostly one-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Fast Message Flexibility Same message to varied target 3 Characteristics of Sales Promotion Chapter 14 Version 6e

  32. Personal Selling Communication Mode Direct and face-to-face Communication Control High Feedback Amount Much Feedback Speed Immediate Message Flow Direction Two-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Slow Message Flexibility Tailored to prospect 3 Characteristics of Personal Selling Chapter 14 Version 6e

  33. 4 Learning Objective Explain the goal and tasks of promotion. Chapter 14 Version 6e

  34. Informing Reminding Target Audience Persuading 4 Goals and Tasks of Promotion Chapter 14 Version 6e

  35. Informing Reminding PLC Stages: Maturity Target Audience PLC Stages: Introduction Early Growth Persuading PLC Stages: Growth Maturity 4 Goals and Tasks of Promotion Chapter 14 Version 6e

  36. Informative Objective • Increase awareness • Explain how product works • Suggest new uses • Build company image 4 Goals and Tasks of Promotion Chapter 14 Version 6e

  37. Persuasion Objective • Encourage brand switching • Change customers’ perception of product attributes • Influence buying decision • Persuade customers to call 4 Goals and Tasks of Promotion Chapter 14 Version 6e

  38. Reminder Objective • Remind customers that product may be needed • Remind customers where to buy product • Maintain customer awareness 4 Goals and Tasks of Promotion Chapter 14 Version 6e

  39. 5 Learning Objective Discuss the AIDA concept and its relationship to the promotional mix. Chapter 14 Version 6e

  40. Attention Interest Desire Action 5 The AIDA Concept Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. Chapter 14 Version 6e

  41. Action Desire Interest Attention 5 The AIDA Concept Chapter 14 Version 6e

  42. 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 5 AIDA and the Promotional Mix Chapter 14 Version 6e

  43. 6 Learning Objective Describe the factors that affect the promotional mix. Chapter 14 Version 6e

  44. Factors Affecting Choice of Promotional Mix Nature of Product Stage in PLC Target Market Factors Type of Buying Decision Promotion Funds Push or Pull Strategy 6 Factors Affecting the Promotional Mix Chapter 14 Version 6e

  45. Factors that influence promotional mix 6 Nature of the Product • Product characteristics • Business product vs. consumer product • Costs and risks • Social risk Chapter 14 Version 6e

  46. Maturity Introduction Growth Decline Sales ($) Time 6 Stage in the Product Life Cycle Chapter 14 Version 6e

  47. Maturity Decline Growth Introduction Sales ($) Time 6 Product Life Cycle and thePromotional Mix Light Advertising, pre- introduction Publicity Heavy use of advertising, PR for awareness; sales promotion for trial Advertising, PR, Brand loyalty Personal Selling for distribution Ads decrease. Sales Promotion, Personal SellingReminder & Persuasive AD/PR decrease Limited Sales Promotion, Personal Selling for distribution Chapter 14 Version 6e

  48. 6 Target Market Characteristics FOR: • Widely scattered market • Informed buyers • Repeat buyers Advertising Sales Promotion Less Personal Selling Chapter 14 Version 6e

  49. Routine Advertising Type of Buying Decision affects Promotional Mix Choice Sales Promotion Advertising Not Routine or Complex Public Relations Complex Personal Selling 6 Type of Buying Decision Chapter 14 Version 6e

  50. 6 Available Funds • Trade-offs with funds available • Number of people in target market • Quality of communication needed • Relative costs of promotional elements Chapter 14 Version 6e

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