chapter 11: advertising, integrated marketing communications, and the changing media landscape

by Jeff Tanner and Mary Anne Raymondby Jeff Tanner and Mary Anne Raymond

Principles of Marketing

Chapter 11Chapter 11Advertising, Integrated Advertising, Integrated

Marketing Communications, and Marketing Communications, and the Changing Media Landscapethe Changing Media Landscape

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Learning Objectives1.Understand what integrated marketing

communications are.2.Understand why organizations may change

their promotional strategies to reach different audiences.

Integrated Marketing Communications Integrated Marketing Communications (IMC) and New Media(IMC) and New Media

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Communications designed to deliver one consistent message to buyers!

IMCIMC

The Promotion (Communication) The Promotion (Communication) MixMix

Learning Objectives1.Outline the different components of the

promotion mix.2.Understand the different types of media

and vehicles.

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Promotional Mix ElementsPromotional Mix Elements

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AdvertisingAdvertising

• A paid, non-personal message to a mass audience.

• Media used:1. Print—newspapers, magazines2. TV and radio3. Internet4. Social media—Facebook, Twitter, blogs5. Mobile marketing

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The Advertising ConundrumThe Advertising Conundrum

It is generally recognized that as much as 50% of all advertising dollars is wasted.

The problem?

Knowing which 50% to cut!

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Advertising Decisions Advertising Decisions

• Which media gives the biggest bang for the buck?

• The impact of advertising in most cases is difficult to measure except for coupons and rebates.

• Different targeted markets require specific choices of vehicles to reach those markets.

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Personal SellingPersonal Selling

• The most flexible and adaptive way to communicate is through personal selling.

• The cost of personal sales limits its use to large transactions as in B2B markets.

• Consumer personal selling may be found in such areas as Tupperware and Amway where the cost is borne by the seller.

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Public RelationsPublic Relations

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Publicity Pro and ConPublicity Pro and Con

• Publicity is a way of getting a message out in a manner that consumers feel is more believable since it comes through a third party.

• The risk a company runs with publicity is that they lose control of the message, unlike advertising where control of the message is complete.

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Sales PromotionsSales Promotions

• Several promotional types are used to increase sales and gain market share.

• Coupons and rebates are most frequently used as customers respond to actions where they can reduce their costs.

• Grocery retailers would like to eliminate the burden of dealing with coupons, but tests have shown that customers want the immediate cost savings, and producers like the increase in sales that coupons offer.

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Direct MarketingDirect Marketing

• Delivering personalized promotional materials directly to consumers.

• Delivery may come via mail, Internet, e-mail, telephone, or direct response advertising.

• Allows targeting specific consumers through demographics and zip codes.

• Because this approach is intrusive, prospects ignore attempts to reach them.

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TelemarketingTelemarketing

• Direct marketing by phone.• An effective technique for charitable

organizations.• Consumers generally have a negative

perception for telemarketing.• The Do Not Call Registry prevents calling to

phone numbers registered with the FTC.• Most companies avoid this technique

because of costs, perceptions, and the DNC registry.

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Key TakeawaysKey Takeaways

• The promotional mix consists of advertising, personal selling, public relations, sales promotions, and direct marketing.

• Decisions are necessary regarding which media to use and then selecting the right vehicle.

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The Promotion BudgetThe Promotion Budget

Learning Objectives1.Understand the different ways in which

promotional budgets are set.2.Understand how the budget can be

allocated among different media.

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Setting the Promotion BudgetSetting the Promotion Budget

• Simplest method—use last year’s % of sales.• Affordable method—allocate funds based on

what can be made available.• Competitive parity method—budget funds

comparative to competitor’s expenditures.• Objective and task method—establish a

budget that is consistent with achieving the objectives and tasks cited in the marketing plan.

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Allocating the Budget to Selected Allocating the Budget to Selected Media Media

The promotion budget needs to be spread among the various media for effective communication of product programs.

Typical choices are:1. Print—newspapers and magazines2. TV and radio3. Internet4. Outdoor—billboards, etc. 5. Mobile devices

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