1. by Jeff Tanner and Mary Anne Raymondby Jeff Tanner and Mary Anne Raymond
Principles of Marketing

2. Chapter 11Chapter 11
Advertising, Integrated MarketingAdvertising, Integrated Marketing
Communications, and the ChangingCommunications, and the Changing
Media LandscapeMedia Landscape
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Learning Objectives
1. Understand what integrated marketing
communications are.
2. Understand why organizations may change their
promotional strategies to reach different
audiences.
Integrated Marketing CommunicationsIntegrated Marketing Communications
(IMC) and New Media(IMC) and New Media

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Communications
designed to deliver
one consistent
message to buyers!
IMCIMC

5. The Promotion (Communication) MixThe Promotion (Communication) Mix
Learning Objectives
1. Outline the different components of the
promotion mix.
2. Understand the different types of media and
vehicles.
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6. Promotional Mix ElementsPromotional Mix Elements
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7. AdvertisingAdvertising
• A paid, non-personal message to a mass
audience.
• Media used:
1. Print—newspapers, magazines
2. TV and radio
3. Internet
4. Social media—Facebook, Twitter, blogs
5. Mobile marketing
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8. The Advertising ConundrumThe Advertising Conundrum
It is generally recognized that as much as
50% of all advertising dollars is wasted.
The problem?
Knowing which 50% to cut!
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9. Advertising DecisionsAdvertising Decisions
• Which media gives the biggest bang for
the buck?
• The impact of advertising in most cases is
difficult to measure except for coupons
and rebates.
• Different targeted markets require specific
choices of vehicles to reach those
markets.
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10. Personal SellingPersonal Selling
• The most flexible and adaptive way to
communicate is through personal selling.
• The cost of personal sales limits its use to
large transactions as in B2B markets.
• Consumer personal selling may be found
in such areas as Tupperware and Amway
where the cost is borne by the seller.
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11. Public RelationsPublic Relations
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12. Publicity Pro and ConPublicity Pro and Con
• Publicity is a way of getting a message out
in a manner that consumers feel is more
believable since it comes through a third
party.
• The risk a company runs with publicity is
that they lose control of the message,
unlike advertising where control of the
message is complete.
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13. Sales PromotionsSales Promotions
• Several promotional types are used to increase
sales and gain market share.
• Coupons and rebates are most frequently used
as customers respond to actions where they can
reduce their costs.
• Grocery retailers would like to eliminate the
burden of dealing with coupons, but tests have
shown that customers want the immediate cost
savings, and producers like the increase in sales
that coupons offer.
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14. Direct MarketingDirect Marketing
• Delivering personalized promotional materials
directly to consumers.
• Delivery may come via mail, Internet, e-mail,
telephone, or direct response advertising.
• Allows targeting specific consumers through
demographics and zip codes.
• Because this approach is intrusive, prospects
ignore attempts to reach them.
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15. TelemarketingTelemarketing
• Direct marketing by phone.
• An effective technique for charitable organizations.
• Consumers generally have a negative perception
for telemarketing.
• The Do Not Call Registry prevents calling to phone
numbers registered with the FTC.
• Most companies avoid this technique because of
costs, perceptions, and the DNC registry.
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16. Key TakeawaysKey Takeaways
• The promotional mix consists of
advertising, personal selling, public
relations, sales promotions, and direct
marketing.
• Decisions are necessary regarding which
media to use and then selecting the right
vehicle.
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17. The Promotion BudgetThe Promotion Budget
Learning Objectives
1. Understand the different ways in which
promotional budgets are set.
2. Understand how the budget can be allocated
among different media.
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18. Setting the Promotion BudgetSetting the Promotion Budget
• Simplest method—use last year’s % of sales.
• Affordable method—allocate funds based on
what can be made available.
• Competitive parity method—budget funds
comparative to competitor’s expenditures.
• Objective and task method—establish a budget
that is consistent with achieving the objectives
and tasks cited in the marketing plan.
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19. Allocating the Budget to Selected MediaAllocating the Budget to Selected Media
The promotion budget needs to be spread among
the various media for effective communication
of product programs.
Typical choices are:
1. Print—newspapers and magazines
2. TV and radio
3. Internet
4. Outdoor—billboards, etc.
5. Mobile devices
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