This chapter discusses integrated marketing communications and the promotional mix. It explains that IMC coordinates all promotional activities to deliver a unified customer message. The promotional mix includes personal selling, advertising, sales promotion, public relations, and direct marketing. The chapter also describes pulling and pushing strategies, how to budget for and measure the effectiveness of promotion, and the value of marketing communications.

1. Chapter Objectives
Integrated Marketing
Communications
CHAPTER1
1
2
4 6
7
Explain how integrated
marketing communications
relates to the development
of an optimal promotional
mix.
Describe the com-
munication process and
how it relates to the AIDA
concept.
Explain how the
promotional mix relates to
the objectives of
promotion.
Identify the different
elements of the
promotional mix and
explain how marketers
develop an optimal
promotional mix.
Describe the role of
sponsorships and direct
marketing in integrated
marketing
communications.
Discuss the factors that
influence the
effectiveness of a
promotional mix.
Contrast pushing and
pulling strategies.
Explain how marketers
budget for and measure
the effectiveness of
promotion.
Discuss the value of
marketing
communications.
5
3
8
9

2. CHAPTER 15 Integrated Marketing
Communications
INTEGRATED MARKETING COMMUNICATIONS
• Promotion Communication link between buyers and sellers;
the function of informing, persuading, and influencing a
consumer’s purchase decision.
• Marketing communications Messages that deal with
buyer-seller relationships.
• Integrated marketing communications (IMC) Coordination
of all promotional activities to produce a unified, customer-
focused promotional message.
• Consumers receive many marketing messages all day.
• Strategy begins with their wants or needs and then works backward to
product.
• Must segment market according to customer demographics and
preferences.

3. CHAPTER 15 Integrated Marketing
Communications
IMPORTANCE OF TEAMWORK
• Requires consistent, coordinated promotional effort at every stage of
customer contact.
• Involves both in-house resources and outside vendors.
ROLE OF DATABASES IN EFFECTIVE IMC PROGRAMS
• Internet allows companies to gather information faster and organize it
more easily.
• Ability to harness data challenges ability to sift through it effectively.
• Direct sampling also provides customer opinions.

4. CHAPTER 15 Integrated Marketing
Communications
THE COMMUNICATION PROCESS
• Effective message does three things:
• Gains the receiver’s attention.
• Achieves understanding by both sender and receiver.
• Stimulates receiver’s needs and suggests appropriate means of
satisfying them.
• AIDA concept Steps through which an individual reaches a purchase
decision: attention, interest, desire, and action.
• AIDA concept is vital for understanding an reaching customers.
• Noise can be a particular issue in international communications, including
in the world’s 74 English-speaking countries.

5. CHAPTER 15 Integrated Marketing
Communications
OBJECTIVES OF PROMOTION
PROVIDE INFORMATION
• Goal is informing the market about the availability of a product.
INCREASE DEMAND
• May increase primary demand, or desire for a particular product category.
• May increase selective demand, or desire for a specific brand.

6. CHAPTER 15 Integrated Marketing
Communications
DIFFERENTIATE THE PRODUCT
• Differentiation allows firms more control over marketing variables such as
price.
ACCENTUATE THE PRODUCT’S VALUE
• Greater value helps justify a higher price in the marketplace.
• Marketers advise staying away from these words—quality, value, service,
caring, and integrity—because they are overused and vague.
STABILIZE SALES
• Can help make demand more consistent throughout the year.

7. CHAPTER 15 Integrated Marketing
Communications
ELEMENTS OF THE PROMOTIONAL MIX
• Promotional mix Subset of the marketing mix in which marketers attempt
to achieve the optimal blending of the elements of personal and nonpersonal
selling to achieve promotional objectives.
• Personal selling, advertising, and sales promotion usually account
for the bulk of a firm’s promotional expenditures.
PERSONAL SELLING
• Oldest form of selling.
• A seller’s promotional presentation conducted on a person-to-person basis
with the buyer.
• More than 13 million people in U.S. have careers in personal sales.

8. CHAPTER 15 Integrated Marketing
Communications
NONPERSONAL SELLING
• Advertising and product placement.
• Sales promotion Marketing activities other than personal selling,
advertising, guerrilla ma`rketing, and public relations that stimulate
consumer purchasing and dealer effectiveness.
• Trade promotion—incentives to encourage marketing intermediaries to sell
more of certain items or product lines.
• Direct marketing Direct communications, other than personal sales
contacts, between buyer and seller, designed to generate sales, information
requests, or store or Web site visits.
• Public relations Communications and relationships with various publics.
• Publicity—nonpersonal stimulation of demand unpaid placement of news
about it or through a favorable presentation of it on the radio or television.
• Guerrilla marketing Unconventional, innovative, and low-cost marketing
techniques designed to get consumers’ attention in unusual ways.

9. CHAPTER 15 Integrated Marketing
Communications
SPONSORSHIPS
• $28 billion business worldwide.
• Sponsorship Relationship in which an organization
provides funds or in-kind resources to an event or activity
in exchange for a direct association with that event or
activity.
• Sponsor purchases access to event’s audience and image
associated with activity.
• Sponsorship often more cost effective but usually offers
less control over market coverage.
• Audiences often view sponsorship more positively than
advertising.

10. CHAPTER 15 Integrated Marketing
Communications
DIRECT MARKETING
• Effective—for every $1 spent, firms typically receive $11.49 in revenue.
• Opens large new international markets and promotes goals beyond
creating product awareness.
• Databases are an important tool.
DIRECT MARKETING COMMUNICATION CHANNELS
• Direct mailings such as brochures and catalogs.
• Telecommunications and television and radio.
• Internet via e-mail and electronic messaging.
• Print media such as newspapers and magazines.
• Specialized channels such as electronic kiosks.

11. CHAPTER 15 Integrated Marketing
Communications
DIRECT MAIL
• Allows narrow targeting, intensive coverage, and other benefits.
• Per reader cost is high and many consumer view it as junk.
CATALOGS
• Catalog sales reached $160 billion in a recent year.
• Companies adding online catalogs to complement print catalogs.
TELEMARKETING
• Most frequently used form of direct marketing.
• Provides a high return on expenditures, an immediate response, and the
opportunity for personalized two-way conversations.
• May be outbound or inbound.
• 1996 Telemarketing Sales Rule created Do Not Call Registry and curtailed
abusive telemarketing practices.

12. CHAPTER 15 Integrated Marketing
Communications
DIRECT MARKETING VIA BROADCAST CHANNELS
• Brief direct-response advertisements on television or radio.
• Home shopping channels.
• Infomercials.
ELECTRONIC DIRECT MARKETING CHANNELS
• U.S. spending on online advertising totals about $16 billion per year.
• Includes Web advertising and e-mail notices.
• Online customer acquisition programs often cost less than traditional ones.
OTHER DIRECT MARKETING CHANNELS
• Print media and other traditional channels are critically important.
• Kiosks also provide an outlet for electronic sales.

13. CHAPTER 15 Integrated Marketing
Communications
PULLING AND PUSHING PROMOTIONAL
STRATEGIES
• Pulling strategy Promotional effort by the seller to stimulate final-user
demand, which then exerts pressure on the distribution channel.
• Pushing strategy Promotional effort by the seller directed to members of
the marketing channel rather than final users.
• Advertising creates an environment for successful personal selling and
remains important as an affirmation of customer’s decision.

14. CHAPTER 15 Integrated Marketing
Communications
BUDGETING FOR PROMOTIONAL STRATEGY
• Composition of budget depends on strategy.
• B2B markets often allocate more to personal selling than
advertising.
• Reverse is usually true for consumer goods.

15. CHAPTER 15 Integrated Marketing
Communications
MEASURING THE EFFECTIVENESS
OF PROMOTION
• Direct sales results test to reveal impact on sales revenues of promotional
spending.
• Indirect evaluation that focuses on quantifiable indicators of effectiveness.
• Two major ways of setting Internet advertising rates:
• Cost per impression—cost relates to the number of people who
view the ad.
• Cost per response (click-throughs)—cost relates to the number of
people who click the ad.

16. CHAPTER 15 Integrated Marketing
Communications
THE VALUE OF MARKETING
COMMUNICATIONS
SOCIAL IMPORTANCE
• One generally accepted standard in a market society is
freedom of choice for the consumer.
BUSINESS IMPORTANCE
• Long-term increase in funds allocated to promotion indicates faith in its
ability to encourage attitude changes, brand loyalty, and additional sales.
ECONOMIC IMPORTANCE
• Provides employment for millions of people.
• Increases units sold and allows economies of scale that mean lower prices,
which make a product available to more people.