This document discusses integrated marketing communications and the promotional mix. It defines integrated marketing communications as coordinating all promotional activities, including advertising, direct mail, personal selling, sales promotion, and public relations to deliver a unified customer-focused message. The promotional mix includes personal selling, non-personal selling like advertising, sales promotion, direct marketing, publicity/PR, sponsorships, and electronic marketing. The document also covers objectives of promotion, the communications process, direct marketing methods, budgeting promotional activities, and measuring effectiveness.

1. Integrated Marketing CommunicationsIntro to Marketing Chapter 15

2. Objectives of PromotionInforming, persuading, and influencing the consumer’s purchase decisionIntegrated Marketing CommunicationsCoordinating all promotional activitiesMedia advertising, direct mail, personal selling, sales promotion & public relationsTo produce a unified, customer-focused promotional message

3. The Communications ProcessAn effective message should:Attract the receiver’s attentionAchieve an understanding by both the receiver and the senderSuggest a method to satisfy the receiver’s needsAIDA Concept – steps that a person goes through when making a purchaseA – ttentionI – nterestD – esireA - ction

4. Objectives of PromotionProvide Information to consumersIncrease demandDifferentiate a productAccentuate a products valueShow how a product will make life betterStabilize salesSales are not uniform throughout the year

5. Promotional MixPersonal SellingNon-Personal SellingAdvertisingPaid, non-personal communication through various mediaProduct PlacementSales PromotionDisplays, shows, demonstrations, non-recurrent selling effortsDirect MarketingIncludes direct mail, phone, infomercialsPublicity & PRNews, not paid for, press releases Guerilla MarketingInnovative low cost way to reach the market using a unique approach

7. Promotional Mix

8. SponsorshipsOccurs when an organization provides cash or in-kind resources to an event or activityPurchases two things:ExposureImage

9. Direct MarketingGrowing rapidlyInteractive electronic media, direct mail, telemarketing, infomercials, & direct response advertisingInternational direct marketing has grown – internetDatabases are important

10. Direct MailSales letters, postcards, leaflets, folders, booklets, catalogsAdvantagesCan select a narrow target market, intensive coverage, personalized response rates are measurableDisadvantagesHigh cost, dependence on quality of mailing list, junk mail

11. CatalogsSpeigel, LL Bean, Lands End, & Eddie Bauer depended on catalog sales for years, then moved into retail stores & web pages.CD ROM catalogsDisplay 3 dimensional views

12. TelemarketingPhoneMost frequently used form of direct marketingInexpensive, get immediate response, personalizedPredictive dialers skip busy signals & answering machines, waits for human voice

13. Direct Marketing via Broadcast ChannelsBrief direct response ads on TV or radio encourage viewers to respond immediatelyHome Shopping ChannelsQVC & HSNWork best for $20-$50 rangeInfomercials30 minute or longer product commercialsUsually air on non-prime-time slots or less expensive cable channels

14. ElectronicWeb AdvertisingE-mailAuction sitesKiosksProvide instant delivery

16. Pulling & Pushing StrategiesPulling StrategyEffort by the seller to stimulate final user demandPushing StrategyEffort by the seller to channel members to motivate them to carry the product.

17. BudgetingMost effective is to increase promotional expenditures until each dollar of promotion expense is matched by a dollar of profit.Percentage of sales is the most common

18. Measuring the EffectivenessDirect sales resultsIndirectRecallElectronic mediaHits on the web