Integrated Marketing

Communication
Strategy

Chapter 15
 Objectives

Know the tools of the marketing

communications mix.
Understand the process and advantages
of integrated marketing communications.
Learn the steps in developing effective
marketing communications.
Understand methods for setting
promotional budgets and the factors that
affect the design of the promotion mix.
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 UPS
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Definition

The Marketing
Communications Mix
 The specific mix of
advertising, personal
selling, sales
promotion, and public
relations a company
uses to pursue its
advertising and
marketing objectives.

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 Integrated Marketing
Communications

The Marketing Communications

Environment is Changing:
 Mass markets have fragmented, causing
marketers to shift away from
mass marketing
 Media fragmentation
is increasing
 Improvements in
information technology
are facilitating segmentation

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 Integrated Marketing
Communications

The Need for Integrated Marketing

Communications
 Conflicting messages from different
sources or promotional approaches
can confuse company or brand images
 The problem is particularly prevalent
when functional specialists handle
individual forms of marketing
communications independently
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 Integrated Marketing
Communications

The Need for Integrated Marketing

Communications
 The Web alone cannot be used to build
brands; brand awareness potential is limited
 Best bet is to wed traditional branding efforts
with the interactivity and service capabilities
of online communications
 Web efforts can
enhance relationships
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 Figure 15-1:
Integrated Marketing
Communications

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 Integrated Marketing
Communications

Integrated Marketing Communications

 The concept under which a company
carefully integrates and coordinates its many
communications channels to deliver a clear,
consistent, and compelling message about
the organization and its products.
 IMC implementation often requires the hiring
of a MarCom manager

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Saturn’s advertising program is integrated with
sales efforts and website communications

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 The Communication
Process

Communications efforts should be viewed

from the perspective of managing
customer relationships over time
The communication process begins with
an audit of all potential contacts
Effective communication requires
knowledge of how communication works

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 Figure 15-2:
Elements in the
Communication Process

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 Developing Effective
Communication

Step 1: Identifying
the Target Audience
 Affects decisions
related to what, how,
when, and where
message will be
said, as well as who
will say it

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 Developing Effective
Communication

Step 2: Determining
Communication
Objectives
 Objectives may be set to move buyers
through the six readiness stages

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 Figure 15-3:
Buyer-Readiness Stage

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Which buyer-readiness
stages do these ads
appeal to?

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 Developing Effective
Communication

Step 3:
Designing a Message
 AIDA framework guides
message design
 Message content
 Rational
 Emotional appeals: fear,
humor, guilt, shame, love
 Moral appeals

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Humor has long been used in the
marketing of soft drinks and beer.
These ads use humor to attract
attention and invoke curiosity.

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 Developing Effective
Communication

Step 3:
Designing a Message
 Message structure
 Draw a conclusion?
 One-sided or two-sided?
 Strongest arguments
presented first or last?
 Message format
 Novelty, contrast, and more

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Discussion Question
Contrast, novelty, and creative
implementations such as pop-
up ads or scratch n’ sniff ads
are examples of message
formats that successfully
attract attention.
What are some other examples
of successful message formats
that use novelty and creativity
to attract attention and deliver
their message?
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 Developing Effective
Communication
Step 4: Choosing Media
 Personal vs. nonpersonal communication
channels

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 Developing Effective
Communication

Step 4: Choosing Media

 Personal communication channels
 Includes face-to-face, phone, mail, and
Internet chat communications
 Word-of-mouth influence is often critical
 Buzz marketing cultivates opinion leaders
 Nonpersonal communication channels
 Includes media, atmosphere, and events
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 Developing Effective
Communication

Step 5: Selecting
the Message
Source
 Highly credible
sources are more
persuasive
 A poor choice of
spokesperson can
tarnish a brand
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 Developing Effective
Communication

Step 6: Collecting
Feedback
 Recognition, recall,
and behavioral
measures are
assessed
 May suggest changes
in product/promotion
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Setting the Promotional
Budget and Mix

Setting the Total

Promotional Budget
 Affordability Method
 Budget is set at a level that a
company can afford
 Percentage-of-Sales Method
 Past or forecasted sales may
be used
 Competitive-Parity Method
 Budget matches competitors’
outlays

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Setting the Promotional
Budget and Mix

Setting the Total Promotional Budget

 Objective-and-Task Method
 Specific objectives are defined
 Tasks required to achieve objectives
are determined
 Costs of performing tasks are
estimated, then summed to create the
promotional budget
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Setting the Promotional
Budget and Mix

Setting the Overall Promotion Mix

 Determined by the nature of each promotional
tool and the selected promotion mix strategy

Revlon
emphasizes
advertising
while Avon
emphasizes
personal
selling

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 Setting the Promotional
Budget and Mix

Nature of Each Reaches large, geographically

dispersed audiences, often
Promotional Tool with high frequency
Low cost per exposure,
though overall costs are high
Advertising Consumers perceive
Personal Selling advertised goods as more
legitimate
Sales Promotion Dramatizes company/brand
Public Relations Builds brand image; may
stimulate short-term sales
Direct Marketing Impersonal; one-way
communication

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 Setting the Promotional
Budget and Mix

Nature of Each Most effective tool for

building buyers’ preferences,
Promotional Tool convictions, and actions
Personal interaction allows
Advertising for feedback and adjustments
Personal Selling Relationship-oriented
Buyers are more attentive
Sales Promotion Sales force represents a long-
Public Relations term commitment
Direct Marketing Most expensive of the
promotional tools

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 Setting the Promotional
Budget and Mix

Nature of Each May be targeted at the trade

or ultimate consumer
Promotional Tool Makes use of a variety of
formats: premiums, coupons,
contests, etc.
Advertising Attracts attention, offers
Personal Selling strong purchase incentives,
dramatizes offers, boosts
Sales Promotion sagging sales
Public Relations Stimulates quick response
Short-lived
Direct Marketing Not effective at building long-
term brand preferences

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 Setting the Promotional
Budget and Mix

Nature of Each Highly credible

Many forms: news stories,
Promotional Tool news features, events and
sponsorships, etc.
Advertising Reaches many prospects
Personal Selling missed via other forms of
promotion
Sales Promotion Dramatizes company or
Public Relations benefits
Often the most underused
Direct Marketing element in the promotional
mix
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 Setting the Promotional
Budget and Mix

Nature of Each Many forms: Telephone

marketing, direct mail,
Promotional Tool online marketing, etc.
Four characteristics:
Advertising  Nonpublic
Personal Selling  Immediate
 Customized
Sales Promotion  Interactive
Public Relations Well-suited to highly
Direct Marketing targeted marketing
efforts

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 Figure 15-4:
Push vs. Pull
Promotion Strategy

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Setting the Promotional
Budget and Mix

Promotion Mix Strategies

 Push strategy: trade promotions and
personal selling efforts push the
product through the distribution
channels.
 Pull strategy: producers use
advertising and consumer sales
promotions to generate strong
consumer demand for products.
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 Discussion Question

Have you noticed TV ads

for prescription drugs?
Pharmaceutical firms are
now using pull-oriented
marketing techniques.
Does such a strategy
help patients or does it
interfere with the doctor-
patient relationship?

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Setting the Promotional
Budget and Mix

Checklist: Integrating the Promotion Mix

 Analyze trends (internal and external)
 Audit communications spending
 Identify all points of contact
 Team up in communications planning
 Make all communication elements
compatible
 Create performance measures
 Appoint an IMC manager

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 Socially Responsible
Communications

Advertising and Sales Promotion

 Avoid false and deceptive advertising
 Bait and switch advertising
 Trade promotions can not favor certain
customers over others
 Use advertising to promote socially
responsible programs and actions

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State Farm uses
advertising to
promote socially
responsible
programs and
actions.

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 Socially Responsible
Communications

Personal Selling
 Salespeople must
follow the rules of
“fair competition”
 Three day cooling-
off rule protects
ultimate consumers
from high pressure
tactics
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 Socially Responsible
Communications

Personal Selling
 Business-to-business selling
 Bribery, industrial espionage,
and making false and disparaging
statements about a competitor
are forbidden

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