Integrated Marketing Communications

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Integrated Marketing Communications

• Marketing for Engineers
• ELE 41EMT ELE 31MEL

George Alexander G.Alexander_at_latrobe.edu.au www.la
trobe.edu.au/eemanage
Lecture 11 13 April, 2005
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Lecture Topics

• The three basic purposes of promotion
• Define the four major elements of promotion
• Describe the basic communication process
• Identify the general promotion strategies
• The major approach to promotion budgeting
• Promotional campaigns

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Promotion
Communication with a Purpose
Informs
1
Persuades
2
Reminds
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Basic Purposes of Promotion

• Promotion is communication designed to
• inform,
• persuade, and
• remind buyer
• about the existence and benefits of a good,
  service, or idea.
• Without promotion, buyers would have less
  information on which to base informed buying
  decisions

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Promotion Informs

• The broad goal of promotion is to inform
  potential buyers about
• Existence of the product or service,
• Usage and benefits of the product or service,
• Functions, performance, prices,
• Locations of the retail outlets,
• Store or business opening hours,
• Financial arrangement, etc.

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Promotion Persuades

• Persuasion that encourages new purchases or
  attitude change is a primary goal of promotion
• Consumers are often faced with many competing
  products and services
• Consumers turn to advertising for information
  about products and services
• In fact, a traditional definition of promotion is
  Persuasive Communication

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Promotion Reminds

• Do marketers direct any advertising towards the
  existing customers?
• Would advertising directed towards the existing
  customers be a waste of money?
• Even the most loyal customers must be reminded
  that a product or a service has served them well
  over time

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The Promotion Mix

• Personal Selling
• Advertising
• Publicity / Public Relations
• Sales Promotions

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Personal Selling
Mode of communication
Direct and personal
Yes
Regular and recurrent activity
Message flexibility
Personalised and tailored to prospect
Direct feedback
Yes
Yes
Marketer control over message
Sponsor identified
Yes
Cost per contact
High
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Advertising
Mode of communication
Indirect and non-personal
Yes
Regular and recurrent activity
Message flexibility
Uniform and unvarying
Direct feedback
No
Yes
Marketer control over message
Sponsor identified
Yes
Cost per contact
Low to moderate
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Publicity
Mode of communication
Indirect and non-personal
No - only for newsworthy activity
Regular and recurrent activity
Message flexibility
Beyond marketers direct control
Direct feedback
No
No
Marketer control over message
Sponsor identified
No
Cost per contact
No direct cost
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Sales Promotion
Mode of communication
Indirect and non-personal
No - short term stimulation
Regular and recurrent activity
Message flexibility
Uniform and unvarying
Direct feedback
No
Yes
Marketer control over message
Sponsor identified
Yes
Cost per contact
Varies
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Basic Communication Process
Noise
Noise
Source
Encoder
Message
Receiver
Decoder
Channel
Feedback
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Communication Effects
Purchase
Conviction
The Hierarchy of Communication Effects
Preference
Liking
Knowledge
Awareness
Brand Ignorance
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Push Strategy
Promotional
Promotional
Promotional
Manufacturer
Wholesaler
Retailer
Consumer
Product Flow
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Definition Push Strategy

• A promotional strategy whereby a supplier
  promotes a product to marketing intermediaries
  with the aim of pushing the product through the
  channel of distribution

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Pull Strategy
Promotional
Manufacturer
Wholesaler
Retailer
Consumer
Product Flow
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Definition Pull Strategy

• A promotional strategy whereby a supplier
  promotes a product to the ultimate consumer with
  the aim of stimulating demand thus pulling the
  product through the channel of distribution.

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Budgeting for Promotion
If you cant make a splash, dont make a ripple.
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Budgeting Methods

• Objective and Task,
• Percent of Sales,
• Comparative Parity,
• Marginal Approach,
• All-You-Can Afford,
• Combination Approach, and
• Co-operative Promotional Programs.

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Objective and Task Method
A method of setting a promotional budget whereby
the marketer decides the objective to be
accomplished, determines the tasks necessary to
achieve the objective, and budgets amounts
sufficient to accomplish the tasks.
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Percentage of Sales Method
A method of setting a promotional budget in which
the amount budgeted is some set percentage of
sales, very often a standard percentage for a
given industry.
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Comparative Parity Method
A method of setting a promotional budget whereby
the marketer tries to match the competitors
expenditures.
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Marginal Approach
A method of setting a promotional budget whereby
the marketer attempts to spend resources until
additional expenditure would not be justified by
additional sales and profits they would generate.
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Promotional Campaigns

• A series of promotional activities aimed at
  achieving a specific objective or a set of
  objectives.

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Types of Promotional Campaigns

• Image Building
• Product Differentiation
• Positioning
• Direct Response

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Image Building Campaign
A promotional approach intended to communicate an
image and generate consumer preference for a
brand or product on the basis of symbolic value.
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Product Differentiation Campaign
A promotional approach in which the marketer call
buyers attention to those aspects of a product
or brand that set it apart from its competitors.
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Positioning Campaign
A brands competitive position is the way
consumers perceive it relative to its
competition. The positioning approach, which
promotes a brands competitive position, is often
the focal point of promotional campaigns.
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Direct-Response campaign
A promotional approach intended to elicit a
direct, measurable response, such as an order.
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References

• Zikmund, William G., dAmico, Michael,Marketing,
  5th Edition, West Publishing Company 1996.
• Thanks for your attention