Chapter 15: Integrated Marketing Communications

Transcription

1 Chapter 15: Integrated Marketing Communications Pride/Ferrell Foundations of Marketing Fourth Edition Prepared by Milton Pressley University of New Orleans

2 Objectives 1. Discuss the nature of integrated marketing communications. 2. Describe the process of communication. 3. Understand the role of promotion in the marketing mix. 4. Explain the objectives of promotion. 5. Understand the major elements of the promotion mix.

3 Objectives 6. Describe the factors that affect the choice of promotion-mix elements. 7. Explore word-of-mouth communication and how it affects promotion. 8. Understand the criticisms and defenses of promotion.

4 Integrated Marketing Communications (IMC) Coordination of promotional efforts for maximum informational and persuasive impact on customers.

5 The Communication Process Communication - A sharing of meaning Source - A person, group or organization that decodes a coded message Receiver - The individual, group or organization that decodes a coded message Coding process (Coding process ) - Converting meaning into a series of signs or

6 Decoding the Message Communication channel - The medium of transmission that carries the coded message from the source to the receiver or audience Decoding process - Converting signs or symbols into concepts and ideas Noise - Anything that reduces a communication s clarity and accuracy Feedback - The receiver s response to a message Channel capacity - The limit on the volume of information a communication channel can handle effectively

7 The Communication Process 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

8 Changing Sources of News and Information

9 Promotion Communication to build and maintain relationships by informing and persuading one or more audiences Objectives for Promotion Marketers use advertising and other methods to achieve a variety of objectives.

10 Eight Promotional Objectives Reduce Sales Fluctuations Create Awareness Stimulate Demand Combat Competitive Promotional Efforts Promotion Encourage Product Trial Facilitate Reseller Support Retain Loyal Customers Identify Prospects

11 Information Flows are Important in 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

12 Making customers aware of the product is crucial to initiating the product adoption process Create Awareness Selective Demand Gap, Inc. uses ads like this one to build selective demand for its Piperlime products, only available online.

13 Stimulate Demand Primary demand - Demand for a product category rather than for a specific brand Pioneer promotion - Promotion that informs consumers about a new product Selective demand - Demand for a specific brand

14 Encourage Product Trial Designed to move customers through the product adoption process Techniques used: - Free samples - Coupons - Test drives/limited free-use - Contests - Games Encouraging Product Trial Papa John s uses this special promotional offer to stimulate product trial.

15 Identify prospects Promotion - Identifying customers who are interested in the firm s product and most likely to buy it Retain loyal customers - Maintaining long-term relationships is a major goal of most marketers Facilitate reseller support - Providing support to maintain sound working relationships Combat competitive promotional efforts - Using promotion to offset or lessen the effect of a competitor s goals Reduce sales fluctuations - Generating sales during slow periods

16 Discussion Question Click on the Television below and watch the commercial. Of the objectives of promotion just covered, which do you think this advertisement is attempting to achieve?

17 The Four Possible Elements of a When an organization combines specific methods to manage the integrated marketing communications for a particular product, that combination constitutes the promotion mix for that product.

18 A paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media Advertising Advertising Aimed at Prevention This ad focuses on one of the many health risks associated with secondhand smoke.

19 Personal Selling A paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation - Kinesic communication: Communicating through the movement of head, eyes, arms, hands, legs or torso - Proxemic communications: Communicating by varying the physical distance in personal selling situations - Tactile communications: Communicating through touching

20 Public Relations A broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders - Public relations tools include: Annual reports Brochures Event sponsorship Sponsorship of socially responsible programs

21 Sales Promotion Activity or material that acts as a direct inducement, offering added value or incentive for the product to reseller, salespeople or consumers Sales Promotion The coupon in this advertisement is a sales promotion technique.

22 Discussion Question Visit the Coca Cola Web Site by clicking on symbol below. After reviewing the Site, discuss any sales promotion example(s) you observed on the

23 Selecting Promotion-Mix Elements An effective promotion mix requires the right combination of components: Resources, Objectives, Policies Push and Pull Channel Policies Promotional Mix Characteristics of the Target Market Cost and Availability of Promotional Methods Characteristics of the Product

24 Promotion Mix Elements Resources, Objectives, and Policies Basing mix on budget, goals, etc. Characteristics of the Target Market Includes size, geographic distribution, and demographic characteristics Characteristics of the Product Includes price and personal nature of the product Cost and Availability of Methods Some promotion types are more expensive than others

25 Push and Pull Channel Policies Push policy - Promoting a product only to the next institution down the marketing channel Pull policy - Promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel

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27 Word-of-Mouth Communications and Social Media Word-of-mouth communication - Personal informal exchanges of information that customers share with one another about products, brands and companies Social media - Technology that links people to networks and allows exchanges of personal information, professional information and common interests

28 Buzz marketing - An attempt to incite publicity and public excitement surrounding a product through a creative event Viral marketing - A strategy to get consumers to share a marketer s message, often through or online video, in a way that spreads dramatically and quickly

29 Product Placement The strategic location of products or product promotions within entertainment media, including television program content to reach the product s target market Source: The Nielsen Company, March 5, 2009, April 10, 2009

30 Top 10 Shows with Product Placement Source: The Nielsen Company, March 5, 2009, April 10, 2009

31 Discussion Question Give an example of product placement that you have seen recently.

32 Criticisms and Defenses of 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

33 After Reviewing This Chapter You Should: Understand the nature of integrated marketing communications. Know the process of communication. Understand the role of promotion in the marketing mix. Know the objectives of promotion. Understand the major elements of the promotion mix.

34 After Reviewing This Chapter You Should: Be able to describe the factors that affect the choice of promotion-mix elements. Know about word-of-mouth communication and how it affects promotion. Understand the criticisms and defenses of promotion.

35 Key Concepts Integrated marketing communications Branded entertainment Communication Source Receiver Coding process Communications channel Decoding process Noise Feedback Channel capacity Promotion Primary demand Pioneer promotion Selective demand Promotion mix Kinesic communication Proxemic communication Tactile communication Push policy Pull policy Word-of-mouth communication Social media Buzz marketing Viral marketing Product placement