Integrated Marketing Communications


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Integrated Marketing Communications

  1. 1. CHAPTER 14 Integrated Marketing Communications Marketing Lamb, Hair, McDaniel 9
  2. 2. How to proceed… LO 2 Every time you see the audio icon to the left, click on it to hear my comments and explanations of the concept. Every time you see the icon to the left, click on it to view a website, video on YouTube or other material online that relates to or better illustrates the concept.
  3. 3. The Role of Promotion in the Marketing Mix LO I Overall Marketing Objectives <ul><li>Marketing Mix </li></ul><ul><li>Product </li></ul><ul><li>Place </li></ul><ul><li>Promotion </li></ul><ul><li>Price </li></ul>Target Market <ul><li>Promotional Mix </li></ul><ul><li>Advertising </li></ul><ul><li>Public Relations </li></ul><ul><li>Sales Promotion </li></ul><ul><li>Personal Selling </li></ul><ul><li>Promotion Plan </li></ul>
  4. 4. The Promotional Mix LO 2 Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. <ul><li>Advertising </li></ul><ul><li>Public Relations </li></ul><ul><li>Sales Promotion </li></ul><ul><li>Personal Selling </li></ul><ul><li>Direct Marketing </li></ul><ul><li>Interactive Marketing </li></ul>Promotional Mix
  5. 5. Integrated Marketing Communications LO 7 Integrated Marketing Communications The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.
  6. 6. Example of good IMC: Chick-Fil-A
  7. 7. Bright House Asterisk Hunters Campaign Photo Contest Advertisement
  8. 8. Promotional Mix <ul><li>Definitions and characteristics follow </li></ul><ul><li>Each will be explored in more detail next week in class along with many examples </li></ul>
  9. 9. The Promotional Mix LO 2 Impersonal, one-way mass communication about a product or organization that is paid for by a marketer. Advertising
  10. 10. Advertising <ul><li>Reach large number of people </li></ul><ul><li>Low cost per contact </li></ul><ul><li>Can be micro- targeted </li></ul>LO 2 <ul><li>Total cost is high </li></ul><ul><li>National reach is expensive for small companies </li></ul>Advantages Disadvantages
  11. 11. Traditional Advertising Media and Interactive Marketing Media LO 2 Traditional Advertising Media New Advertising Media <ul><li>Television </li></ul><ul><li>Radio </li></ul><ul><li>Newspapers </li></ul><ul><li>Magazines </li></ul><ul><li>Books </li></ul><ul><li>Direct mail </li></ul><ul><li>Billboards </li></ul><ul><li>Transit cards </li></ul><ul><li>Internet </li></ul><ul><li>Banner ads </li></ul><ul><li>Viral marketing : Read article and watch a few videos of viral campaigns </li></ul><ul><li>E- mail </li></ul><ul><li>Interactive video </li></ul>
  12. 12. Where is the growth? Social Media Revolution …
  13. 13. Directory Assistance Advertising <ul><li>Companies are offering free telephone directory assistance—but there’s an advertisement first. </li></ul><ul><li>The audio ads are narrowly targeted, and are 10 to 12 seconds. </li></ul><ul><li>The growth of such free services could represent another change in the telecom industry. </li></ul><ul><li>Dial 1-800-FREE411 or 1-800-411-METRO </li></ul>SOURCE: Rebecca Buckman, “Your Listing, and a Word From Our Sponsor ,” Wall Street Journal, April 20,2006, B1.
  14. 14. Placements
  15. 15. Product Placements <ul><li>How it works… </li></ul><ul><ul><li>Straight fee and higher fee depending on how long or how much exposure they get </li></ul></ul><ul><ul><ul><li>Ex: Pampers paid $50K to be featured in 3 Men & a Baby </li></ul></ul></ul><ul><ul><ul><li>Ex: Exxon paid $300K to be featured in Days of Thunder </li></ul></ul></ul><ul><ul><li>Exchange for goods or promotions (one half of all placements) </li></ul></ul><ul><ul><li>Free , if the film production company feels like it is a good fit and wants to use it regardless of compensation. However, it’s good to get agreement from them first! </li></ul></ul><ul><li>E.T. and Reese’s Pieces – Reese’s Pieces received placement and ET movie received advertising support </li></ul>
  16. 16. Product Placement Exercise
  17. 17. Match the movie with the product featured in it … <ul><li>Little Nicky </li></ul><ul><li>Castaway </li></ul><ul><li>Ace Ventura: Pet Detective </li></ul><ul><li>Cat in the Hat </li></ul><ul><li>Die Another Day </li></ul><ul><li>Sweet Home Alabama </li></ul><ul><li>You’ve Got Mail </li></ul><ul><li>SpiderMan </li></ul><ul><li>Men in Black </li></ul><ul><li>Toy Story </li></ul><ul><li>I-Robot </li></ul><ul><li>Miami Dolphins </li></ul><ul><li>Aston Martin </li></ul><ul><li>Audi </li></ul><ul><li>RayBan sunglasses </li></ul><ul><li>Tiffany & Co. </li></ul><ul><li>Popeye’s Chicken </li></ul><ul><li>Gap </li></ul><ul><li>Mr. Potato Head </li></ul><ul><li>AOL </li></ul><ul><li>Fed Ex </li></ul><ul><li>Universal Studios </li></ul><ul><li>Reese’s Pieces </li></ul><ul><li>Dr. Pepper </li></ul>
  18. 18. Answers … <ul><li>Little Nicky </li></ul><ul><li>Castaway </li></ul><ul><li>Ace Ventura: Pet Detective </li></ul><ul><li>Cat in the Hat </li></ul><ul><li>Die Another Day </li></ul><ul><li>Sweet Home Alabama </li></ul><ul><li>You’ve Got Mail </li></ul><ul><li>SpiderMan </li></ul><ul><li>Men in Black </li></ul><ul><li>Toy Story </li></ul><ul><li>I-Robot </li></ul><ul><li>Popeye’s Chicken </li></ul><ul><li>Fed Ex </li></ul><ul><li>Miami Dolphins </li></ul><ul><li>Universal Studios </li></ul><ul><li>Aston Martin </li></ul><ul><li>Tiffany & Co. </li></ul><ul><li>AOL </li></ul><ul><li>Dr. Pepper </li></ul><ul><li>RayBan sunglasses </li></ul><ul><li>Mr. Potato Head </li></ul><ul><li>Audi </li></ul>
  19. 19. Placement in Game Shows
  20. 20. Digital Ads at Sporting Events
  21. 21. Song lyric product placement <ul><li>The Kluger agency handles accounts such as Mercedes, Nike, Dolce & Gabbana, Louis Viutton, and other high profile brands with insertions into songs by artists such as Mariah Carey, Black Eyed Peas, Pink, Ludacris and many more </li></ul><ul><li> </li></ul>
  22. 22. Videogame Advertising <ul><li>Microsoft plans to acquire Massive inc., a start-up that places ads in video games. </li></ul><ul><li>Ads are inserted into the game environment. </li></ul><ul><li>Video games could become a large new medium for advertising. </li></ul>SOURCE: Robert A. Guth and Nick Wingfield, “Microsoft’s ‘Massive’ Move into Game Ads ,” Wall Street Journal, April 26,2006, B1.
  23. 23.
  24. 24. Unusual forms of advertising: Tat-vertising <ul><li>Corporate Advertising by tattooing a logo or message on someone’s body </li></ul><ul><li>Video </li></ul>
  25. 25. Public Relations LO 2 The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance. Public Relations
  26. 26. The Function of Public Relations <ul><li>Maintain a positive image </li></ul><ul><li>Educate the public about the company’s objectives </li></ul><ul><li>Introduce new products </li></ul><ul><li>Support the sales effort </li></ul><ul><li>Generate favorable publicity </li></ul>Green Gym
  27. 27. Public Relations <ul><li>Credibility </li></ul><ul><li>Low absolute cost </li></ul><ul><li>Controllable (except for publicity) </li></ul>LO 2 <ul><li>Publicity (dealing with the media) is uncontrollable and can be negative </li></ul><ul><li>Publicity that is positive is not guaranteed (message and placement of message) </li></ul>Advantages Disadvantages
  28. 28. Sales Promotion LO 2 Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness. Sales Promotion
  29. 29. Sales Promotion
  30. 30. Sales Promotion LO 2 End Consumers Trade Customers Company Employees Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons
  31. 31. Personal Selling LO 2 Personal Selling Planned presentation to one or more prospective buyers for the purpose of making a sale.
  32. 32. Personal Selling LO 2 Traditional Selling Relationship Selling
  33. 33. REVIEW LEARNING OUTCOME Elements of the Promotional Mix LO 2
  34. 34. Communication LO 3 The process by which we exchange or share meanings through a common set of symbols. Communication
  35. 35. The Communication Process LO 3 Noise Sender Encoding Message Feedback Channel Message Channel Decoding Message Receiver
  36. 36. THE COMMUNICATIONS PROCESS Relating Promotion to the Communications Process
  37. 37. Test Yourself: <ul><li>Who is the sender? </li></ul><ul><li>How did they encode the message? </li></ul><ul><li>What is the channel? </li></ul><ul><li>How could you decode the message? </li></ul><ul><li>Who is the receiver? </li></ul><ul><li>What could be noise? </li></ul>
  38. 38. Answers: <ul><li>Who is the sender? </li></ul><ul><ul><li>Heinz </li></ul></ul><ul><li>How did they encode the message? </li></ul><ul><ul><li>Use the bottle upside down with the headline on the bottle; little copy, mainly just the graphic image </li></ul></ul><ul><li>What is the channel? </li></ul><ul><ul><li>Magazine </li></ul></ul><ul><li>How could you decode the message? </li></ul><ul><ul><li>Heinz is very thick </li></ul></ul><ul><li>Who is the receiver? </li></ul><ul><ul><li>Magazine subscribers/readers </li></ul></ul><ul><li>What could be noise? </li></ul><ul><ul><li>Competing ads in magazine (clutter) </li></ul></ul>
  39. 39. Goals and Tasks of Promotion Informing Reminding Persuading Target Audience
  40. 40. Figure 16.2: Advertising Objectives in Relation to the Stage in the Product Life Cycle 16-
  41. 41. What do you think the goal is? Reminder, with a little persuasion
  42. 42. The AIDA Concept LO 5 Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. AIDA Concept Attention Interest Desire Action
  43. 43. The AIDA Concept LO 5 LO 5 Action Desire Interest Attention Cognitive (thinking) Affective (feeling) Conative (doing)
  44. 44. TUMS A Print Message Following the AIDA Concept Copyright © 2001 by Harcourt, Inc. All rights reserved.
  45. 45. Factors Affecting the Choice of Promotional Mix LO 6 Nature of the product Stage in PLC Target market factors Type of buying decision Promotion funds Push or pull strategy
  46. 46. Stage in the Product Life Cycle LO 6 Light Advertising; pre- introduction publicity Heavy use of Advertising; PR for awareness; sales promotion for trial AD/PR decrease; limited sales promotion; personal selling for distribution Ads decrease; sales promotion; personal selling; reminder & persuasive Advertising, PR, brand loyalty; personal selling for distribution Introduction Growth Maturity Decline Sales ($) Time
  47. 47. Type of Buying Decision LO 6 Advertising Sales Promotion Routine Personal Selling Neither Routine nor Complex Advertising Public Relations Print Advertising Complex
  48. 48. <ul><li>Trade-offs with funds available </li></ul><ul><li>Number of people in target market </li></ul><ul><li>Quality of communication needed </li></ul><ul><li>Relative costs of promotional elements </li></ul>Available Funds LO 6
  49. 49. Push and Pull Strategies LO 6 Manufacturer promotes to wholesaler Wholesaler promotes to retailer Retailer promotes to consumer Consumer buys from retailer PUSH STRATEGY Orders to manufacturer Manufacturer promotes to consumer Consumer demands product from retailer Retailer demands product from wholesaler Wholesaler demands product from manufacturer Orders to manufacturer PULL STRATEGY
  50. 50. Examples… <ul><li>Push Money: Extra compensation paid by a manufacturer or employer to a salesperson for selling a particular product. For example, an appliance manufacturer offers a bonus for selling a washer or dryer from a line that has been discontinued. Also called spiff. </li></ul>Push Strategy
  51. 51. Examples… Pull Strategy