Chapter 16

INTEGRATED
MARKETING
COMMUNICATIONS,
ADVERTISING, AND
PUBLIC RELATIONS

1
 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Introduction
▮ Promotion - Function of informing,
persuading, and influencing the consumer’s
purchase decision
▮ Marketing communications - Messages
that deal with buyer-seller relationships
▮ Integrated marketing communications
(IMC) - Coordination of all promotional
activities to produce a unified, customer-
focused promotional message

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Integrated Marketing Communications (IMC)

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Importance of Teamwork
▮ Teamwork involves both in-house resources
and outside vendors
▮ IMC challenges the traditional role of the
outside advertising agency

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Role of Databases in Effective IMC Programs

▮ The Internet allows companies to gather

information faster and organize it easily
▮ Direct sampling is a frequently used method
to obtain customer opinions

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

The Communication Process

▮ Sender - Source of the message
communicated to the receiver
▮ Message - Communication of information,
advice, or a request by the sender to the
receiver

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

The Communication Process

▮ An effective message does three things
• Gains the receiver’s attention
• Achieves understanding by both sender and
receiver
• Stimulates receiver’s needs and suggests
appropriate methods of satisfying them

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

The Communication Process

▮ AIDA - Steps through which an individual
reaches a purchase decision: attention,
interest, desire, and action
▮ Encoding - Translating a message into
understandable terms
▮ Decoding - Receiver’s interpretation of a
message

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

The Communication Process

▮ Feedback - Receiver’s response to a message
▮ Noise - Interference at some stage in the
communication process
▮ Channel - Medium through which a message
is delivered

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Elements of the Promotional Mix

▮ Promotional mix - Subset of the marketing
mix in which marketers attempt to:
• Achieve the optimal blending of the elements of
personal and nonpersonal selling to achieve
promotional objectives

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Personal Selling
▮ Interpersonal influence process involving a
seller’s promotional presentation conducted
on a person-to-person basis with the buyer
▮ Oldest form of promotion

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Nonpersonal Selling
▮ Advertising - Any paid, nonpersonal
communication about a business good
▮ Product placement - Marketer pays a
motion picture owner a fee to display his or
her product prominently in the film or show

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Nonpersonal Selling
▮ Sales promotion - Marketing activities that
stimulate consumer purchasing and dealer
effectiveness
• Does not include personal selling, advertising,
guerrilla marketing, and public relations
• Trade promotion - Sales promotion geared to
marketing intermediaries

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Nonpersonal Selling
▮ Direct marketing - Use of direct
communication to a consumer or business
recipient designed to generate a response in
the form of:
• An order
• Lead generation
• Traffic generation

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Nonpersonal Selling
▮ Public relations - Firm’s communications
and relationships with its various publics
▮ Publicity - Nonpersonal stimulation of
demand for a good by unpaid placement of
significant news
▮ Guerrilla marketing - Unconventional,
innovative, and low-cost techniques to get
consumers’ attention

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Promotional Mix Elements: A Comparison

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Sponsorships
▮ Relationship in which an organization
provides funds to an event in exchange for a
direct association with that event

▮ Sponsor purchases:
• Access to the event’s audience
• The image associated with the activity

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

How Sponsorship Differs from Advertising

▮ Cost-effectiveness
▮ Sponsor’s degree of control versus that of
advertising
▮ Nature of the message

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Types of Advertising
▮ Product advertising - Nonpersonal selling
of a particular good or service
▮ Institutional advertising - Promotion of a
concept, an idea, a philosophy, or the
goodwill of an industry, company,
organization, person, geographic location,
or government agency

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Objectives of Advertising
▮ Informative advertising - Seeks to develop
initial demand for a good, service,
organization, person, place, idea, or cause
▮ Persuasive advertising - Attempts to
increase demand for an existing good,
service, organization, person, place, idea, or
cause

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Objectives of Advertising
▮ Reminder advertising - Reinforces
previous promotional activity by keeping
the name of a good, service, organization,
person, place, idea, or cause before the
public

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Advertising Objectives in Relation to Stage

in the Product Lifecycle

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Advertising Strategies
▮ Comparative advertising - Emphasizes
messages with direct or indirect
promotional comparisons between
competing brands
• Used by firms whose products are not market
leaders
• Advertising by market leaders seldom
acknowledge existence of competing products

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Advertising Strategies
▮ Celebrity testimonials
• Can improve product recognition
• A celebrity who endorses too many products
may create marketplace confusion

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Advertising Strategies
▮ Retail advertising - Advertising by stores
that sell goods or services directly to the
consuming public
• Cooperative advertising - Retailer shares
advertising costs with a manufacturer or
wholesaler

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Interactive Advertising
▮ Two-way promotional messages
transmitted through communication
channels
• Induce message recipients to participate
actively in the promotional effort
▮ Provides information throughout the
purchase and consumption processes

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Creating an Advertisement
▮ Must create effective ads that increase sales
and enhance the organization’s image
▮ An ad needs to accomplish:
• Educating consumers about product features
• Enhancing brand loyalty
• Improving consumer perception of the brand

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Elements of the Advertising Planning Process

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Advertising Messages
▮ Advertising campaign - Series of different
but related ads that use a single theme and
appear in different media within a specified
time period

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Advertising Appeals
▮ Fear appeals
▮ Humor in advertising messages
▮ Ads based on sex

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Developing and Preparing Ads

▮ Goals
• Gain attention and interest
• Inform or persuade
• Lead to purchase or other desired action

▮ After conceiving an idea, ads must be

refined from rough sketch to finished layout

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Figure 16.4 - Elements of a Typical Ad

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Creating Interactive Ads

▮ Advergames
▮ Missiles
▮ Keyword ads
▮ Adware
▮ Social network advertising
▮ Narrowcasting

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Media Selection and Scheduling

▮ Television
• Mass coverage
• Powerful impact on viewers, repetition of
messages
• Flexibility, and prestige

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Media Selection and Scheduling

▮ Radio
• Advantages
• Ability to reach people while they drive because they
are a captive audience
• Benefits include low cost, flexibility, and mobility
• Disadvantages
• Highly segmented audiences,
• The temporary nature of messages
• A minimum of research information compared with
television

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Media Selection and Scheduling

▮ Newspapers
• Advantages
• Flexible
• Intensive coverage for ads
• Can refer back to newspaper ads
• Disadvantages
• Hasty reading
• Relatively poor reproduction quality

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Media Selection and Scheduling

▮ Magazines
• Consumer magazines and business magazines
• Advantages
• The ability to reach precise target markets
• Quality reproduction
• Long life
• Prestige associated with some magazines
• Disadvantage
• Lack flexibility

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Media Selection and Scheduling

▮ Direct mail
• Advantages
• Ability to segment large numbers of prospective
customers
• Flexible
• Detailed information
• Personalization
• Disadvantages
• High cost per reader
• Reliance on the quality of mailing lists
• Consumers’ resistance

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Media Selection and Scheduling

▮ Outdoor advertising
• Traditional - Billboards and painted displays
• Transit advertising - Ads placed inside and
outside buses, subway trains, commuter trains,
and stations

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Media Selection and Scheduling

▮ Interactive Media
• Internet and social media sites
• Augmented reality - Virtual imaging can be
incorporated into real-time video on a mobile
phone
▮ Other Advertising Media
• Total Immersion’s D’Fusion system
• Ads appear on T-shirts, on store flooring, in
printed programs of live theater productions,
and as previews on movie DVDs

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Media Scheduling
▮ Setting the timing and sequence for a series
of advertisements
▮ Influenced by a variety of factors
• Seasonal sales patterns
• Repurchase cycles
• Competitors’ activities

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Marketing and Nonmarketing Public

Relations
▮ Nonmarketing public relations - A
company’s messages about general
management issues
▮ Marketing public relations (MPR) -
Focused public relations activities that
directly support marketing goals

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Publicity
▮ Nonpersonal stimulation of demand for a
good by unpaid placement of significant
news
▮ Many consumers consider news stories
more credible than advertisements

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Cross-Promotion
▮ Marketing partners share the cost of a
promotional campaign that meets their
mutual needs

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Ethics and Promotional Strategies

▮ Advertising to children
▮ Insertion of product messages in media
programs without full disclosure
▮ Use of cookies in online advertising

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Puffery and Deception

▮ Puffery
• Exaggerated claims of a product’s superiority
• Use of subjective or vague statements that may
not be literally true
▮ The Uniform Commercial Code standardizes
sales and business practices throughout the
United States

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 Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations

Ethics in Public Relations

▮ Issues include performing services for
companies that produce unsafe products
▮ The Public Relations Society of America’s
Code of Professional Standards prohibits:
• Promoting products or causes widely known to
be harmful

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