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IntegratedMarketingCommunications
C M A R K E T I N G
Objectives
Define integrated marketing communications
Describe the steps of the communication process
Recognize the definition and objectives of
promotion
Summarize the four variables of the promotion
mix
Refers to the coordination of promotion and other
marketing efforts to ensure maximum informational
and persuasive impact on customers.
IntegratedMarketing
Communications
Integrated
Marketing
Communications
The concept of integrated
marketing communications is
increasingly effective for
several reason, Mass media
advertising, a very popular
promotional method in the
past, is used less frequently
today because of its high cost
and lower effectiveness in
reaching target markets
Marketers can now take advantage of more precisely targeted
promotional tools, such as TV, direct mail, the Internet, special-
interest magazines, DVDs, smart phones, mobile applications,
social media, and outdoor boards.
Database marketing and marketing analytics are also allowing
marketers to more precisely target individual customers.
The
Communication
Process
Communication is the transmission of
information.
Communication is a sharing of meaning.
Communication begins with a source. A source
is a person, group, or organization with a
meaning it attempts to share with an audience.
Ex. a source could be an electronics
salesperson wishing to communicate the
attributes of 4D television to a buyer in a store
or a TV manufacturer using television ads to
inform thousands of customers about its
products
Communication
Process
A receiver is the individual, group, or
organization that decodes a coded message,
and an audience is two or more receivers.
To transmit meaning, a source must convert
the meaning into a series of signs or symbols
representing ideas or concepts. This is called
the coding process, or encoding.
When coding meaning into a message, the
source must consider certain characteristics of
the receiver or audience.
Communication
Process
To share a coded meaning with the
receiver or audience, a source selects
and uses a communications channel,
the medium of transmission that
carries the coded message from the
source to the receiver or audience.
Transmission media include printed
words (newspaper and magazines),
broadcast media (TV and radio), and
digital communication.
Communication
Process
In the decoding process, signs or symbols are
converted into concepts and ideas.
Seldom does a receiver decode exactly the
same meaning the source intended.
When the result of decoding differs from what
was coded, noise exists.
Noise is anything that reduces the clarity and
accuracy of the communication; it has many
sources and may affect any or all parts of the
communication process.
Communication
Process
The receiver’s response to a decoded message
is feedback.
The source usually expects and normally
receives a feedback, although perhaps not
immediately.
During feedback, the receiver or audience
provides the original source with a response to
the message.
Feedback is coded, sent through a
communications channel, and decoded by the
receiver.
Communication
Process
Theroleandobjectives
ofPromotion
Promotion is communication that builds and maintains favorable
relationships by informing and persuading one or more audiences
to view an organization positively and accept its products.
Create Awareness
A considerable amount of promotion efforts focus on
creating awareness.
Ex. Introducing new products, or creating awareness
for existing products
Objectivesof
Promotion
Stimulate Demand
When an organization is the first to introduce an
innovative product, it tries to stimulate primary
demand – demand for a product category rather than
a specific brand of product through pioneer
promotion.
Pioneer promotion informs potential customers about
the product: what it is, what it does, how it can be
used, and where it can be purchased.
To build Selective demand, a demand for a specific
brand, a marketer employs promotional efforts that
point out the strengths and benefits of a specific
brand. Building selective demand also requires
singling out attributes important to potential buyers.
Selective demand can be stimulated by differentiating
the product from competing brands in the minds of
potential buyers.
Objectivesof
Promotion
Encourage Product Trial
When attempting to move customers through the
product adoption process, a marketer may
successfully create awareness and interest, but
customers may stall during the evaluation stage.
In this case, certain types of promotion – such as free
samples, coupons, test drives, or limited free-use
offers, contests, and games – are employed to
encourage product trial.
Objectivesof
Promotion
Identify Prospects
Certain types of promotional efforts aim to identify
customers who are interested in the firm’s products
and are likely potential buyers.
A marketer may run a television advertisement
encouraging the viewer to visit the company’s website
and share personal information in order to receive
something of value from the company.
Customers who respond to such a message usually
have higher interest in the product, which makes
them likely sales prospects.
The organization can respond with phone calls, e-mail,
or personal contact by salespeople.
Objectivesof
Promotion
Retain loyal customers
Clearly, maintaining long-term customer relationships
is a major goal of most marketers.
Such relationships are quite valuable.
Promotional efforts directed at customer retention
can help an organization control its costs, because the
costs of retaining customers are usually considerably
lower than those of acquiring new ones.
Objectivesof
Promotion
Facilitate reseller support
Reseller support is a two-way street: producers
generally want to provide support to resellers to assist
in selling their products, and in turn they expect
resellers to support their products.
When a manufacturer advertises a product to
consumers, resellers should view this promotion as a
form of strong manufacturer support.
Objectivesof
Promotion
Combat competitive promotional efforts
At times, a marketer’s objective in using promotion is
to offset or lessen the effect of a competitor’s
promotional or marketing programs.
This type of promotional activity does not necessarily
increase the organization’s sales and market share,
but it may prevent a sales or market share loss.
Objectivesof
Promotion
Reduce Sales fluctuations
Demand for many products varies from one month to
another because of such factors as climate, holidays,
and seasons.
A business, however, cannot operate at peak
efficiency when sales fluctuate rapidly.
Changes is sales volume translate into changes in
production, inventory levels, personnel needs, and
financial resources.
Objectivesof
Promotion
Promotion Mix
ThePromotionMix
Several promotional methods can be used to communicate with
individuals, groups, and organizations.
When organizations combines specific methods to manage the
integrated marketing communications for a particular product,
that combination constitutes the promotion mix for that product.
The four possible elements of a promotion mix are advertising,
personal selling, public relations, and sales promotion.
Advertising
Advertising is a paid nonpersonal communication about an
organization and its products transmitted to a target
audience through mass media, including television, radio, the
Internet, newspapers, magazines, video games, direct mail,
outdoor displays, and signs on mass transit vehicles.
• Advertising offers several benefits.
• Extremely cost-efficient when it reaches a vast
number of people at a low cost per person
• Lets the source repeat the message several times
• Advertising can add to the product’s value, and
visibility of the organization; and enhance its image
• Advertising has its disadvantages as well.
• High cost can limit and sometimes preclude, use of
advertising in the promotion mix
• Advertising rarely provides feedback
PersonalSelling
• Personal Selling is a paid personal communication that
seeks to inform customers and persuade them to
purchase in an exchange situation.
• Personal selling has advantages
• Involves more specific communication directed at
one or several individuals
• It may be more costly to reach one person, but it
has greater impact on customers
• Provides immediate feedback
PublicRelations
• Promotional activities towards the firm’s other
stakeholders – suppliers, employees, stockholders, the
media, educators, potential investors, government
officials, and society in general – are also important to
an organization as well.
• Public relations is a broad set of communication efforts
used to create and maintain favorable relationships
between an organization and its stakeholders.
• Maintaining a positive relationships with one or more
stakeholders can affect a firm’s current sales and profits,
as well as its long-term survival.
• Ex. Annual reports, brochures, event sponsorship, and
support of socially responsible programs aimed at
protecting the environment or helping disadvantaged
individuals.
• The goal of public relations is to create and enhance a
positive image of the organization.
SalesPromotion
• Sales promotion is an activity or material that
acts as a direct inducement, offering added
value or incentive for the product to resellers,
salespeople, or consumers.
• Ex. Free samples, games, rebates,
sweepstakes, contests, premiums, and
coupons.
TheEnd

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Integrated marketing communications

  • 2. Objectives Define integrated marketing communications Describe the steps of the communication process Recognize the definition and objectives of promotion Summarize the four variables of the promotion mix
  • 3. Refers to the coordination of promotion and other marketing efforts to ensure maximum informational and persuasive impact on customers. IntegratedMarketing Communications
  • 4. Integrated Marketing Communications The concept of integrated marketing communications is increasingly effective for several reason, Mass media advertising, a very popular promotional method in the past, is used less frequently today because of its high cost and lower effectiveness in reaching target markets Marketers can now take advantage of more precisely targeted promotional tools, such as TV, direct mail, the Internet, special- interest magazines, DVDs, smart phones, mobile applications, social media, and outdoor boards. Database marketing and marketing analytics are also allowing marketers to more precisely target individual customers.
  • 6. Communication is the transmission of information. Communication is a sharing of meaning. Communication begins with a source. A source is a person, group, or organization with a meaning it attempts to share with an audience. Ex. a source could be an electronics salesperson wishing to communicate the attributes of 4D television to a buyer in a store or a TV manufacturer using television ads to inform thousands of customers about its products Communication Process
  • 7. A receiver is the individual, group, or organization that decodes a coded message, and an audience is two or more receivers. To transmit meaning, a source must convert the meaning into a series of signs or symbols representing ideas or concepts. This is called the coding process, or encoding. When coding meaning into a message, the source must consider certain characteristics of the receiver or audience. Communication Process
  • 8. To share a coded meaning with the receiver or audience, a source selects and uses a communications channel, the medium of transmission that carries the coded message from the source to the receiver or audience. Transmission media include printed words (newspaper and magazines), broadcast media (TV and radio), and digital communication. Communication Process
  • 9. In the decoding process, signs or symbols are converted into concepts and ideas. Seldom does a receiver decode exactly the same meaning the source intended. When the result of decoding differs from what was coded, noise exists. Noise is anything that reduces the clarity and accuracy of the communication; it has many sources and may affect any or all parts of the communication process. Communication Process
  • 10. The receiver’s response to a decoded message is feedback. The source usually expects and normally receives a feedback, although perhaps not immediately. During feedback, the receiver or audience provides the original source with a response to the message. Feedback is coded, sent through a communications channel, and decoded by the receiver. Communication Process
  • 11. Theroleandobjectives ofPromotion Promotion is communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an organization positively and accept its products.
  • 12. Create Awareness A considerable amount of promotion efforts focus on creating awareness. Ex. Introducing new products, or creating awareness for existing products Objectivesof Promotion
  • 13. Stimulate Demand When an organization is the first to introduce an innovative product, it tries to stimulate primary demand – demand for a product category rather than a specific brand of product through pioneer promotion. Pioneer promotion informs potential customers about the product: what it is, what it does, how it can be used, and where it can be purchased. To build Selective demand, a demand for a specific brand, a marketer employs promotional efforts that point out the strengths and benefits of a specific brand. Building selective demand also requires singling out attributes important to potential buyers. Selective demand can be stimulated by differentiating the product from competing brands in the minds of potential buyers. Objectivesof Promotion
  • 14. Encourage Product Trial When attempting to move customers through the product adoption process, a marketer may successfully create awareness and interest, but customers may stall during the evaluation stage. In this case, certain types of promotion – such as free samples, coupons, test drives, or limited free-use offers, contests, and games – are employed to encourage product trial. Objectivesof Promotion
  • 15. Identify Prospects Certain types of promotional efforts aim to identify customers who are interested in the firm’s products and are likely potential buyers. A marketer may run a television advertisement encouraging the viewer to visit the company’s website and share personal information in order to receive something of value from the company. Customers who respond to such a message usually have higher interest in the product, which makes them likely sales prospects. The organization can respond with phone calls, e-mail, or personal contact by salespeople. Objectivesof Promotion
  • 16. Retain loyal customers Clearly, maintaining long-term customer relationships is a major goal of most marketers. Such relationships are quite valuable. Promotional efforts directed at customer retention can help an organization control its costs, because the costs of retaining customers are usually considerably lower than those of acquiring new ones. Objectivesof Promotion
  • 17. Facilitate reseller support Reseller support is a two-way street: producers generally want to provide support to resellers to assist in selling their products, and in turn they expect resellers to support their products. When a manufacturer advertises a product to consumers, resellers should view this promotion as a form of strong manufacturer support. Objectivesof Promotion
  • 18. Combat competitive promotional efforts At times, a marketer’s objective in using promotion is to offset or lessen the effect of a competitor’s promotional or marketing programs. This type of promotional activity does not necessarily increase the organization’s sales and market share, but it may prevent a sales or market share loss. Objectivesof Promotion
  • 19. Reduce Sales fluctuations Demand for many products varies from one month to another because of such factors as climate, holidays, and seasons. A business, however, cannot operate at peak efficiency when sales fluctuate rapidly. Changes is sales volume translate into changes in production, inventory levels, personnel needs, and financial resources. Objectivesof Promotion
  • 21. ThePromotionMix Several promotional methods can be used to communicate with individuals, groups, and organizations. When organizations combines specific methods to manage the integrated marketing communications for a particular product, that combination constitutes the promotion mix for that product. The four possible elements of a promotion mix are advertising, personal selling, public relations, and sales promotion.
  • 22. Advertising Advertising is a paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media, including television, radio, the Internet, newspapers, magazines, video games, direct mail, outdoor displays, and signs on mass transit vehicles. • Advertising offers several benefits. • Extremely cost-efficient when it reaches a vast number of people at a low cost per person • Lets the source repeat the message several times • Advertising can add to the product’s value, and visibility of the organization; and enhance its image • Advertising has its disadvantages as well. • High cost can limit and sometimes preclude, use of advertising in the promotion mix • Advertising rarely provides feedback
  • 23. PersonalSelling • Personal Selling is a paid personal communication that seeks to inform customers and persuade them to purchase in an exchange situation. • Personal selling has advantages • Involves more specific communication directed at one or several individuals • It may be more costly to reach one person, but it has greater impact on customers • Provides immediate feedback
  • 24. PublicRelations • Promotional activities towards the firm’s other stakeholders – suppliers, employees, stockholders, the media, educators, potential investors, government officials, and society in general – are also important to an organization as well. • Public relations is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. • Maintaining a positive relationships with one or more stakeholders can affect a firm’s current sales and profits, as well as its long-term survival. • Ex. Annual reports, brochures, event sponsorship, and support of socially responsible programs aimed at protecting the environment or helping disadvantaged individuals. • The goal of public relations is to create and enhance a positive image of the organization.
  • 25. SalesPromotion • Sales promotion is an activity or material that acts as a direct inducement, offering added value or incentive for the product to resellers, salespeople, or consumers. • Ex. Free samples, games, rebates, sweepstakes, contests, premiums, and coupons.