Marketing 4 - Chapter 16

Integrated Marketing Communications (IMC)

The coordination of promotion (and other marketing efforts) for maximum informational and persuasive effect.

The goal is to send a consistent message to customers.

The Communication process/model

Information is passed from the source as a coded message through a communications channel and then the message is decoded by the receiver. Information based back to the source from the receiver is considered feedback.

Promotion - The communication process

Communication to build and maintain relationships by informing and persuading an audiences.

Objectives of promotion

To create awareness

stimulate demand

encourage product trial

identify products

retain loyal customer

facilitate reseller support

combat competitive promotional efforts

reduce sales fluctuations

(Go through individual definitions once list is memorized)

Types of body languages

Proxemics - The use of space

Tactile - Use of touch

Kinesics - Body movement, postures, facial expressions, and gestures

4 elements of the promotion mix

Personal selling, public relations, sales promotion, advertising

Promotion mix - personal selling

A paid personal communication that seeks to inform
customers and persuade them to purchase products in
an exchange situation

Pros:

• Is a more specific form of advertising
• Has greater impact on consumers
• Provides immediate feedback (kinesic, proxemic, and
tactile communications)

Cons:

• Is an expensive form of advertising
• Is labor-intensivetime-consuming and time consuming

Promotion mix - Public relations

A broad set of communication efforts used to create
and maintain favorable relationships between the
organization and its stakeholders

Publicity: a subset of PR, nonpersonal communication
in news-story form about an organization, its products,
or both

Public relations should be viewed as an ongoing
program.

Promotion mix - Sales promotion

An activity or material that acts as a direct inducement,
offering added value or incentive for the product to
resellers, salespeople, or consumers (a temporary offer
used to stimulate interest and demand for its products.

Two categories:

– Consumer-Oriented
Examples: coupons, discounts, events, contests,
loyalty programs, premiums, samples, bonus packs
–Trade-Oriented
Dealer incentives, training programs, co-op advertising,
POP displays, trade shows

Promotion mix - advertising

–Any paid nonpersonal communication about an
organization and its products transmitted to a target
audience
Pros:
• Extremely cost-efficient (cost per person) in reaching a
large audience
• Repeatable several times and in several media markets
• Adds value to a product and enhances a firm’s image
Cons:
• Absolute dollar outlay can be high
• Rarely provides rapid feedback
• Often difficult to measure its effect on sales
• Has a limited time exposure

Primary vs. Selective Demand

Primary: demand for a product category rather than for a specific
brand
Selective: Demand for a specific product

Pioneer Promotion

To inform customers about a new (pioneer) product

Factors influencing which promotion elements to use

Characteristics of the target market: size, geographic location, demographics

Characteristics of the product: Ex. personal selling is better for high-priced or business products, but advertising or sales promotion would be better for consumer goods and seasonal products

The stage of a product’s life cycle:

—Introduction
• Advertising plus personal selling and sales promotion is used to
generate awareness for both business and consumer products
–Growth and Maturity
• Consumer products require heavy emphasis on advertising
• Business products often call for a concentration of personal
selling and some sales promotion
–Decline
• Marketers decrease all promotional activities, especially
advertising

Intensity of market coverage:
–Intensive distribution
• Advertising, sales promotion
–Selective distribution
• Promotion mixes vary
–Exclusive distribution
• Personal selling

Push and pull policy

Push Policy
–Promoting a product only to the next institution down the marketing channel

Ex. Producers to wholesalers, wholesalers to retailers, retailers to consumers

–Best for launching new products/entering markets quickly, time-limited promotions, reaching new demographics, building sales momentum

Pull Policy

–Promoting a product directly to consumers to develop stronger consumer demand that pulls products through the marketing channel

Ex. Producer straight to consumer

–Best for differentiating in a competitive market, building long-term customer loyalty, creating strong brand reputation