Lecture 11_ Integrated marketing communications CHAPTER INTEGRATED MARKETING

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Lecture 11_ Integrated marketing communications CHAPTER INTEGRATED MARKETING COMMUNICATIONS Associate professor of Plekhanov REA marketing department Irina I. Skorobogatykh (Ph. D) © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -2

LEVTURE QUESTIONS: • Explain the communication process and its elements. • Understand the promotional mix and the uniqueness of each component. • Select the promotional approach appropriate to a product’s life-cycle stage. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -5

LECTURE QUESTIONS: • Differentiate between the advantages of push and pull strategies. • Explain the value of an integrated marketing communications approach. • Understand the value of direct marketing for consumers and sellers. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -6

Communication is the process of conveying a message to others and requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -71

Channel of Communication A channel of communication conveys the message by means of a salesperson, advertising media, or public relations tools. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -74

Field of Experience A field of experience is a mutually shared understanding and knowledge by the sender and receiver, which is necessary for the message to be communicated effectively. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -78

Feedback is the sender’s interpretation of the response and indicates whether the message was decoded and understood as intended. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -80

Noise includes extraneous factors that can work against effective communication by distorting a message or the feedback received. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -81

Concept Check 1. What are the six elements required for communication to occur? A: A source, a message, a channel of communication, a receiver, and the processes of encoding and decoding. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -13

Concept Check 2. A difficulty for U. S. companies advertising in international markets is that the audience does not share the same field of experience ________. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -14

THE PROMOTIONAL ELEMENTS • Mass Selling • Customized Interaction • Advertising § Paid Aspect § Nonpersonal Component • Personal Selling § Wasted Coverage © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -16

Advertising is any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -82

Personal Selling Personal selling is the two-way flow of communication between a buyer and seller, designed to influence a person’s or group’s purchase decision. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -83

Public Relations Public relations is a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and others about a company and its products or services. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -84

Direct Marketing Direct marketing uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -87

Concept Check 1. Explain the difference between advertising and publicity when both appear on TV. A: Since advertising space on TV is paid for, a firm can control what it wants to say and to whom the message is sent. Since publicity is an indirectly paid presentation of a message about a firm or its goods or services, there is little control over what is said to whom or when. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -20

INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX • The Product Life Cycle § Introduction Stage § Growth Stage § Maturity Stage § Decline Stage © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -26

INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX • Channel Strategies § Push Strategy § Pull Strategy • Integrated Marketing Communications (IMC) © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -29

Concept Check 1. Which promotional mix elements are used during the introduction stage of the product life cycle? A: All promotional mix elements are used during this stage. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -32

Concept Check 2. Explain the differences between a push strategy and a pull strategy. A: In a push strategy, a firm directs the promotional mix to channel members to gain their cooperation to carry the product. In a pull strategy, a firm directs the promotional mix at ultimate consumers to encourage them to ask retailers for the product, who then orders it from wholesalers. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -33

DEVELOPING THE PROMOTION PROGRAM • Identifying the Target Audience § Target Audience • Specifying Promotion Objectives § Hierarchy of Effects • Awareness • Trial • Interest • Adoption • Evaluation © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -35

DEVELOPING THE PROMOTION PROGRAM • Setting the Promotion Budget § Percentage of Sales § Competitive Parity § All You Can Afford § Objective and Task © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -37

Concept Check 1. What are the stages of the hierarchy of effects? A: They are awareness, interest, evaluation, trial, and adoption. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -41

Concept Check 2. What are four approaches to setting the promotion budget? A: They are percentage of sales, competitive parity, all you can afford, and objective and task. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -42

Concept Check 3. How have advertising agencies changed to help companies develop IMC programs? A: Although many advertising agencies still have separate departments dedicated to advertising, promotion, direct marketing, etc. , the trend is clearly toward a long-term perspective in which all forms of promotion are integrated. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -43

DIRECT MARKETING • The Growth of Direct Marketing • The Value of Direct Marketing § Direct Orders § Lead Generation § Traffic Generation • Technological, Global, and Ethical Issues in Direct Marketing © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -44

Concept Check 1. The ability to design and use direct marketing programs has increased computers with the availability of _____ and ____. databases © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -49

Concept Check 2. What are three types of responses generated by direct marketing activities? A: They are direct orders, lead generation, and traffic generation. © 2004 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Slide 15 -50