chapter 15 integrated marketing communications principles of contemporary marketing kurtz &...
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Chapter 15Integrated Marketing
Communications
Principles of
Contemporary MarketingKurtz & Boone
CHAPTER 15 Integrated Marketing Communications
Chapter Objectives
1. Explain how integrated marketing communications relates to the development of an optimal promotional mix.
2. Describe the communication process and how it relates to the AIDA concept.
3. Explain how the promotional mix relates to the objectives of promotion.
4. Identify the different elements of the promotional mix and explain how marketers develop an optimal promotional mix.
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CHAPTER 15 Integrated Marketing Communications
Chapter Objectives
5. Describe the role of sponsorships and direct marketing in integrated marketing communications.
6. Discuss the factors that influence the effectiveness of a promotional mix.
7. Contrast pushing and pulling strategies.
8. Explain how marketers budget for and measure the effectiveness of promotion.
9. Discuss the value of marketing communications.
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CHAPTER 15 Integrated Marketing Communications
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 15 Integrated Marketing Communications
o Encoding - Translating a message into understandable terms
o Decoding - Receiver’s interpretation of a message
o Feedback - Receiver’s response to a message
o Noise - Any stimulus that distracts a receiver from receiving a message
o Channel - Medium through which a message is delivered
The Communication Process
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CHAPTER 15 Integrated Marketing Communications
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CHAPTER 15 Integrated Marketing Communications
o Provide information
o Increase demand
o Differentiate the product
o Accentuate the product’s value
o Stabilize sales
Objectives of Promotion
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CHAPTER 15 Integrated Marketing Communications
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CHAPTER 15 Integrated Marketing Communications
o Organizations provide money or in-kind resources to an event or activity in exchange for a direct association with that event or activity
o Sponsor purchases:o Access to the event’s audience
o The image associated with the activity
Sponsorships
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CHAPTER 15 Integrated Marketing Communications
o Direct mail
o Catalogs
o Telemarketing
o Broadcast channels
o Electronic channels
o Print media
Direct Marketing Communications Channels
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CHAPTER 15 Integrated Marketing Communications
o Factors influencing the effectiveness of a promotional mix:o The nature of the market
o The nature of the product
o The stage in the product lifecycle
o The price
o The funds available for promotion
Developing an Optimal Promotional Mix
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CHAPTER 15 Integrated Marketing Communications
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 15 Integrated Marketing Communications
o Pulling strategy - Promotional effort by the seller to stimulate final-user demand, which then exerts pressure on the distribution channel
o Pushing strategy - Promotional effort by the seller directed to members of the marketing channel rather than final users
Pulling and Pushing Promotional Strategies
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CHAPTER 15 Integrated Marketing Communications
o Promotional budgets may differ not only in amount but also in compositiono B2B markets allocate more to personal
selling than advertising
o Reverse is true for consumer goods
Budgeting for Promotional Strategy
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CHAPTER 15 Integrated Marketing Communications
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 15 Integrated Marketing Communications
o Direct sales results test - Based on the specific impact on sales revenues for each dollar of promotional spending
o Indirect evaluation - Concentrating on quantifiable indicators of effectiveness such as recall and readership
Measuring the Effectiveness of Promotion
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CHAPTER 15 Integrated Marketing Communications
o Cost per impression - Relates the cost of an ad to every thousand people who view it
o Cost per response (click-through) - Relates the cost of an ad to the number of people who click it
o Conversion rate - Percentage of visitors to a Web site who make a purchase
Measuring Online Promotions
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CHAPTER 15 Integrated Marketing Communications
o What appeals to one group of consumers may seem tasteless to another
o One generally accepted standard in a market society is freedom of choice for the consumer
o Ad agencies donate expertise for public service announcements that promote social causes
o Promotion performs an informative and educational task crucial to the functioning of modern society
Social Importance
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CHAPTER 15 Integrated Marketing Communications
o Long-term increase in funds allocated to promotion indicates faith in its ability to encourage attitude changes, brand loyalty, and additional sales
Business Importance
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CHAPTER 15 Integrated Marketing Communications
o Provides employment for millions of people
o Increases units sold and allows economies of scale in production processo Lower units costs mean lower prices, which
make a product available to more people
o Subsidizes information content of newspapers and broadcast media
Economic Importance
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