CMARKETING

1. IntegratedMarketingCommunications
C M A R K E T I N G

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.

5. The
Communication
Process

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

20. Promotion Mix

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.

26. TheEnd