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Chapter 18: Integrated Marketing Communications


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Chapter 18: Integrated Marketing Communications

  1. 1. Integrated Marketing Communications Dr. John T. Drea Professor of Marketing Western Illinois University
  2. 2. The Promotional Mix <ul><li>Promotion </li></ul><ul><ul><li>Communicating information between sellers and buyers or others in the channel to influence attitudes (feelings or beliefs) or behavior. </li></ul></ul><ul><li>The marketing mix is… ? but the promotional mix is </li></ul><ul><ul><li>Advertising (paid non-personal communication) </li></ul></ul><ul><ul><li>Publicity (non-paid, non-personal communication) </li></ul></ul><ul><ul><li>Personal selling (paid, personal communication) </li></ul></ul><ul><ul><li>Sales promotion (other activities) </li></ul></ul><ul><li>These are the tools available to the marketer. </li></ul>
  3. 3. Promotional goals <ul><li>In a broad sense, promotion is used to: </li></ul><ul><ul><li>Make demand more inelastic (demand the same quantity at a higher price/margin) and/or </li></ul></ul><ul><ul><li>Increase the quantity demanded (move the demand curve to the right) </li></ul></ul><ul><ul><li>More specifically, promotion can be used to </li></ul></ul><ul><ul><ul><li>Create awareness </li></ul></ul></ul><ul><ul><ul><li>Stimulate demand </li></ul></ul></ul><ul><ul><ul><li>Encourage product trial </li></ul></ul></ul><ul><ul><ul><li>Identify prospects </li></ul></ul></ul><ul><ul><ul><li>Retain loyal customers </li></ul></ul></ul><ul><ul><ul><li>Facilitate reseller support </li></ul></ul></ul><ul><ul><ul><li>Combat competitive promotional efforts </li></ul></ul></ul><ul><ul><ul><li>Reduce sales fluctuations </li></ul></ul></ul>Remember that the goal is to eventually generate a sale!
  4. 4. Promotion and the PLC Introduction PR before introduction Build awareness (pioneering) Induce trial Use selling to obtain distribution Growth Heavy Advertising Less sales promotion Build preference and loyalty (competitive) Maturity Ads focus on persuading and reminding More sales Promotion Use selling to maintain distribution Decline Reduce ads and PR Lower levels of sales Promotion Milk brand or divest
  5. 5. Think strategically about promotion <ul><li>You should always develop a message strategy and a media strategy. </li></ul><ul><ul><li>Message strategy: </li></ul></ul><ul><ul><ul><li>What will you say? (i.e., the content of your promotional message) </li></ul></ul></ul><ul><ul><ul><li>What is it you want someone to think, feel or do as a result of seeing your message? (measurable outcome) </li></ul></ul></ul><ul><ul><li>Media strategy </li></ul></ul><ul><ul><ul><li>What combination of tools (the promotional mix) will you use to accomplish the message strategy? </li></ul></ul></ul>
  6. 6. Are you pushing or pulling (or both?) <ul><li>Pushing strategy - persuading others in the channel to carry your product </li></ul><ul><ul><li>Ex: Manufacturer pushes the product to the wholesaler, wholesaler pushed the product to the retailer, retailer pushes the product to the consumer. </li></ul></ul><ul><li>Pulling strategy - persuading final users to demand the product, “pulling”it through the channel </li></ul><ul><ul><li>Ex: A manufacturer advertises to final consumers, knowing the retailer will demand the product to meet consumer needs, and the wholesaler will stock the product to meet a retailer’s needs. </li></ul></ul><ul><li>Many marketers push and pull at the same time! </li></ul>
  7. 7. How much should I spend? <ul><li>Percentage of sales approach </li></ul><ul><li>Matching competitors </li></ul><ul><li>Basing budgets on previous years </li></ul><ul><li>The “all you can afford” method </li></ul><ul><ul><li>What’s wrong with these four? </li></ul></ul><ul><li>Objective and task </li></ul><ul><ul><li>Base the budget on the job to be done - specify the objective and the tasks necessary to accomplish the objective, then compute what needs to be spent to accomplish it </li></ul></ul><ul><ul><li>Over budget? Refine objectives or refine tasks until agreement is reached </li></ul></ul>
  8. 8. Think AIDA! AIDA Attention Interest Desire Action AIDA is a linear and sequential process
  9. 9. AIDA - different tools for different jobs <ul><li>Attention </li></ul><ul><ul><li>What will you do to capture the attention of your target market? (Advertising, PR) </li></ul></ul><ul><li>Interest </li></ul><ul><ul><li>How will you hold their interest to facilitate message processing? (Ads, PR, personal sales, contests, etc.) </li></ul></ul><ul><li>Desire </li></ul><ul><ul><li>How will you connect the problem someone has to the product/service offered so the target market desires the product to meet the need? (Advertising, personal sales) </li></ul></ul><ul><li>Action </li></ul><ul><ul><li>How will you get the consumer to take action within a specified time frame? (Personal sales, sales promotion) </li></ul></ul>
  10. 10. Know what you want to do... <ul><li>Direct or Indirect Advertising? </li></ul><ul><li>Pioneering or Competitive? </li></ul><ul><li>Comparative - draws a comparison between the product and another. </li></ul><ul><ul><li>Direct comparative - the other product is named (ex: the Ford 500 is better than Honda Accord) </li></ul></ul><ul><ul><li>Indirect comparative -the other product is not specifically named (ex: The Honda Accord is the best car in its class) </li></ul></ul>