15

CHAPTER

Integrated Marketing
Communications
Chapter Objectives
4 Identifythedifferent
1 Explainhowintegrated
marketingcommunications
elementsofthe
relatestothedevelopment
promotionalmixand
ofanoptimalpromotional
explainhowmarketers
mix.
developanoptimal
promotionalmix.
2 Describethecom
municationprocessand
5 Describetheroleof
howitrelatestotheAIDA
sponsorshipsanddirect
concept.
marketinginintegrated
marketing
3 Explainhowthe
communications.
promotionalmixrelatesto
theobjectivesof
promotion.

6 Discussthefactorsthat
influencethe
effectivenessofa
promotionalmix.
7 Contrastpushingand
pullingstrategies.
8 Explainhowmarketers
budgetforandmeasure
theeffectivenessof
promotion.
Discussthevalueof
9 marketing
communications.

CHAPTER 15 Integrated Marketing Communications

INTEGRATED MARKETING COMMUNICATIONS

PromotionCommunicationlinkbetweenbuyersandsellers;
thefunctionofinforming,persuading,andinfluencinga
consumerspurchasedecision.
MarketingcommunicationsMessagesthatdealwith
buyersellerrelationships.
Integratedmarketingcommunications(IMC)Coordination
ofallpromotionalactivitiestoproduceaunified,customer
focusedpromotionalmessage.
Consumersreceivemanymarketingmessagesallday.
Strategybeginswiththeirwantsorneedsandthenworksbackwardto
product.
Mustsegmentmarketaccordingtocustomerdemographicsand
preferences.

CHAPTER 15 Integrated Marketing Communications

IMPORTANCEOFTEAMWORK
Requiresconsistent,coordinatedpromotionaleffortateverystageof
customercontact.
Involvesbothinhouseresourcesandoutsidevendors.

ROLEOFDATABASESINEFFECTIVEIMCPROGRAMS
Internetallowscompaniestogatherinformationfasterandorganizeit
moreeasily.
Abilitytoharnessdatachallengesabilitytosiftthroughiteffectively.
Directsamplingalsoprovidescustomeropinions.

CHAPTER 15 Integrated Marketing Communications

THE COMMUNICATION PROCESS

Effectivemessagedoesthreethings:
Gainsthereceiversattention.
Achievesunderstandingbybothsenderandreceiver.
Stimulatesreceiversneedsandsuggestsappropriatemeansof
satisfyingthem.
AIDAconceptStepsthroughwhichanindividualreachesapurchase
decision:attention,interest,desire,andaction.
AIDAconceptisvitalforunderstandinganreachingcustomers.
Noisecanbeaparticularissueininternationalcommunications,including
intheworlds74Englishspeakingcountries.

CHAPTER 15 Integrated Marketing Communications

OBJECTIVES OF PROMOTION
PROVIDEINFORMATION
Goalisinformingthemarketabouttheavailabilityofaproduct.

INCREASEDEMAND
Mayincreaseprimarydemand,ordesireforaparticularproductcategory.
Mayincreaseselectivedemand,ordesireforaspecificbrand.

CHAPTER 15 Integrated Marketing Communications

DIFFERENTIATETHEPRODUCT
Differentiationallowsfirmsmorecontrolovermarketingvariablessuchas
price.

ACCENTUATETHEPRODUCTSVALUE
Greatervaluehelpsjustifyahigherpriceinthemarketplace.
Marketersadvisestayingawayfromthesewordsquality,value,service,
caring,andintegritybecausetheyareoverusedandvague.

STABILIZESALES
Canhelpmakedemandmoreconsistentthroughouttheyear.

CHAPTER 15 Integrated Marketing Communications

ELEMENTS OF THE PROMOTIONAL MIX

PromotionalmixSubsetofthemarketingmixinwhichmarketersattempt
toachievetheoptimalblendingoftheelementsofpersonalandnonpersonal
sellingtoachievepromotionalobjectives.
Personalselling,advertising,andsalespromotionusuallyaccount
forthebulkofafirmspromotionalexpenditures.

PERSONALSELLING
Oldestformofselling.
Asellerspromotionalpresentationconductedonapersontopersonbasis
withthebuyer.
Morethan13millionpeopleinU.S.havecareersinpersonalsales.

CHAPTER 15 Integrated Marketing Communications

NONPERSONALSELLING
Advertisingandproductplacement.
SalespromotionMarketingactivitiesotherthanpersonalselling,
advertising,guerrillamarketing,andpublicrelationsthatstimulate
consumerpurchasinganddealereffectiveness.
Tradepromotionincentivestoencouragemarketingintermediariesto
sellmoreofcertainitemsorproductlines.
DirectmarketingDirectcommunications,otherthanpersonalsales
contacts,betweenbuyerandseller,designedtogeneratesales,information
requests,orstoreorWebsitevisits.
PublicrelationsCommunicationsandrelationshipswithvariouspublics.
Publicitynonpersonalstimulationofdemandunpaidplacementofnews
aboutitorthroughafavorablepresentationofitontheradioortelevision.
GuerrillamarketingUnconventional,innovative,andlowcostmarketing
techniquesdesignedtogetconsumersattentioninunusualways.

CHAPTER 15 Integrated Marketing Communications

SPONSORSHIPS
$28billionbusinessworldwide.
SponsorshipRelationshipinwhichanorganization
providesfundsorinkindresourcestoaneventoractivity
inexchangeforadirectassociationwiththateventor
activity.
Sponsorpurchasesaccesstoeventsaudienceandimage
associatedwithactivity.
Sponsorshipoftenmorecosteffectivebutusuallyoffers
lesscontrolovermarketcoverage.
Audiencesoftenviewsponsorshipmorepositivelythan
advertising.

CHAPTER 15 Integrated Marketing Communications

DIRECT MARKETING
Effectiveforevery$1spent,firmstypicallyreceive$11.49inrevenue.
Openslargenewinternationalmarketsandpromotesgoalsbeyond
creatingproductawareness.
Databasesareanimportanttool.

DIRECTMARKETINGCOMMUNICATIONCHANNELS
Directmailingssuchasbrochuresandcatalogs.
Telecommunicationsandtelevisionandradio.
Internetviaemailandelectronicmessaging.
Printmediasuchasnewspapersandmagazines.
Specializedchannelssuchaselectronickiosks.

CHAPTER 15 Integrated Marketing Communications

DIRECTMAIL
Allowsnarrowtargeting,intensivecoverage,andotherbenefits.
Perreadercostishighandmanyconsumerviewitasjunk.

CATALOGS
Catalogsalesreached$160billioninarecentyear.
Companiesaddingonlinecatalogstocomplementprintcatalogs.

TELEMARKETING
Mostfrequentlyusedformofdirectmarketing.
Providesahighreturnonexpenditures,animmediateresponse,andthe
opportunityforpersonalizedtwowayconversations.
Maybeoutboundorinbound.
1996TelemarketingSalesRulecreatedDoNotCallRegistryandcurtailed
abusivetelemarketingpractices.

CHAPTER 15 Integrated Marketing Communications

DIRECTMARKETINGVIABROADCASTCHANNELS
Briefdirectresponseadvertisementsontelevisionorradio.
Homeshoppingchannels.
Infomercials.

ELECTRONICDIRECTMARKETINGCHANNELS
U.S.spendingononlineadvertisingtotalsabout$16billionperyear.
IncludesWebadvertisingandemailnotices.
Onlinecustomeracquisitionprogramsoftencostlessthantraditionalones.

OTHERDIRECTMARKETINGCHANNELS
Printmediaandothertraditionalchannelsarecriticallyimportant.
Kiosksalsoprovideanoutletforelectronicsales.

CHAPTER 15 Integrated Marketing Communications

PULLING AND PUSHING PROMOTIONAL

STRATEGIES
PullingstrategyPromotionaleffortbythesellertostimulatefinaluser
demand,whichthenexertspressureonthedistributionchannel.
PushingstrategyPromotionaleffortbythesellerdirectedtomembersof
themarketingchannelratherthanfinalusers.
Advertisingcreatesanenvironmentforsuccessfulpersonalsellingand
remainsimportantasanaffirmationofcustomersdecision.

CHAPTER 15 Integrated Marketing Communications

BUDGETING FOR PROMOTIONAL STRATEGY

Compositionofbudgetdependsonstrategy.
B2Bmarketsoftenallocatemoretopersonalsellingthan
advertising.
Reverseisusuallytrueforconsumergoods.

CHAPTER 15 Integrated Marketing Communications

MEASURING THE EFFECTIVENESS

OF PROMOTION
Directsalesresultstesttorevealimpactonsalesrevenuesofpromotional
spending.
Indirectevaluationthatfocusesonquantifiableindicatorsofeffectiveness.
TwomajorwaysofsettingInternetadvertisingrates:
Costperimpressioncostrelatestothenumberofpeoplewho
viewthead.
Costperresponse(clickthroughs)costrelatestothenumberof
peoplewhoclickthead.

CHAPTER 15 Integrated Marketing Communications

THE VALUE OF MARKETING

COMMUNICATIONS
SOCIALIMPORTANCE
Onegenerallyacceptedstandardinamarketsocietyis
freedomofchoicefortheconsumer.

BUSINESSIMPORTANCE
Longtermincreaseinfundsallocatedtopromotionindicatesfaithinits
abilitytoencourageattitudechanges,brandloyalty,andadditionalsales.

ECONOMICIMPORTANCE
Providesemploymentformillionsofpeople.
Increasesunitssoldandallowseconomiesofscalethatmeanlowerprices,
whichmakeaproductavailabletomorepeople.