Marketing chapter 18a integrated marketing communications direct marketing

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights


THE COMMUNICATION PROCESS
• Integrated Marketing
Communications (IMC) – concept of

designing marketing communications
programs that coordinate all promotional
activities – advertising, personal selling,
sales promotion, public relations, and
direct marketing – to provide a consistent
message across all audiences

Slide 18-6


THE COMMUNICATION PROCESS
•

Communication – process of

conveying a message to others
1. Source – company or person who has
information to convey
2. Message – information sent a source
to a receiver in the communication
process
3. Channel of communication – means of

conveying the message (e.g.,
salesperson, advertising media, or
public relations tools)
Slide 18-6


THE COMMUNICATION PROCESS
•

Communication – process of

conveying a message to others
4. Receivers – consumers who read,
hear, or see the message sent by a
source
5. Encoding – process of having sender
transform an idea into a set of
symbols
6. Decoding – reverse of encoding

Slide 18-6


THE COMMUNICATION PROCESS
• Feedback
 Feedback Loop
 Response – impact message had on receiver’s
knowledge, attitudes, or behaviors
 Feedback – sender’s interpretation of the
Response and indicates whether the massage

was decoded and understood as intended
• Noise – extraneous factors that can work
against effective communication by distorting a
message or the feedback received
Slide 18-10


FIGURE 18-1 The communication process
consists of six key elements

18-6


PROMOTION

Promotion


An effort by marketers
to inform and remind
people in the target
market about products
and to persuade them
to participate in the
exchange

18-7


PROMOTION

• Promotional Mix – combination of
one or more of the communication
tools to:
– Inform prospective buyers about the
benefits of the product
– Persuade them to try it
– Remind them later about the benefits
they enjoyed using the product

Slide 18-6


PROMOTION

I.

Personal Selling (1)

II. Non-Personal Selling




Advertising (2)
Sales Promotion (3)
Public Relations (4)

Slide 18-6

THE PROMOTIONAL ELEMENTS
ADVERTISING

 Paid,

non-personal communication through
various media by organizations and individuals
who are in some way identified in the advertising
message

 Total

advertising volume exceeds $231 billion
yearly


THE PROMOTIONAL ELEMENTS
PERSONAL SELLING

 Face-to-Face

presentation and promotion of
products and services to help satisfy the needs of
customers and prospects
 Plus searching out prospects and providing
follow-up service
 Approximately 10% of total labor force is
employed in personal selling
 Average cost of a single sales call to B2B buyer
is about $400

THE PROMOTIONAL ELEMENTS
SALES PROMOTION

 Promotional

tool that simulates consumer
purchasing and dealer interest by means of
short-term activities
 Supplements personal selling, advertising, and
public relations
 Examples: free samples, prizes, contests, and
cents-off coupons


THE PROMOTIONAL ELEMENTS
PUBLIC RELATIONS

 Management

function that evaluates public
attitudes, identifies the policies and procedures of
an individual or an organization with the public
interest, and executes a program of action to
earn public understanding and acceptance


FIGURE 18-2 The five elements of the
promotional mix

18-14


THE PROMOTIONAL ELEMENTS
• Mass Selling
– Advertising, sales promotion, and direct
marketing

• Customized Interaction
– Personal selling

Slide 18-14


THE PROMOTIONAL ELEMENTS
• Advertising
 Paid Aspect
 Nonpersonal Component

• Personal Selling – two-way flow
 Wasted Coverage reduced

Slide 18-16


LO2



THE PROMOTIONAL ELEMENTS
PERSONAL SELLING

Personal Selling
• Wasted Coverage

• Advantages

• Disadvantages
18-17


LO2



THE PROMOTIONAL ELEMENTS
PUBLIC RELATIONS

Public Relations

• Publicity

• Advantages

• Disadvantages
18-18


THE PROMOTIONAL ELEMENTS

• Public Relations
 Public Relations – communications management
 Publicity – non-personal indirectly paid

• Sales Promotion – short-term inducement of
value offered to arouse interest in buying
– Used with advertising or personal selling

• Direct Marketing

Slide 18-18


LO2



THE PROMOTIONAL ELEMENTS
SALES PROMOTION AND DIRECT MARKETING

Sales Promotion
• Advantages
• Disadvantages



Direct Marketing
• Advantages
• Disadvantages
18-20

LO3

IMC—DEVELOPING THE
PROMOTIONAL MIX
THE PRODUCT LIFE CYCLE



Introduction Stage



Growth Stage



Maturity Stage



Decline Stage
18-21


FIGURE 18-3 Promotional tools used over
the product life cycle of Purina Dog Chow

18-22

LO3

IMC—DEVELOPING THE
PROMOTIONAL MIX
CHANNEL STRATEGIES



Push Strategy



Pull Strategy
• Directed-to-Consumer

18-23


FIGURE 18-5 A comparison of push and
pull promotional strategies

18-24


FIGURE 18-6 The promotion decision
process includes planning, implementation,
and evaluation

18-25