1-2McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 16
Chapter 16
An Overview of Marketing An Overview of Marketing
Communications
Communications An Overview of Marketing An Overview of Marketing
Communications
Communications
Discuss the objectives of marketing communications.
Understand the marketing communications mix and its role.
Explain the key elements of the marketing
After studying this chapter
you should be able to:
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Discuss the seven steps in the marketing communications planning process.
Demonstrate awareness of some of the key ethical and legal issues related to marketing communications.
After studying this chapter
you should be able to:
The Role of Marketing Communications
Informing
Reminding
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The Marketing Communications Mix
Integrated Marketing Communications
Integrated Marketing Communications (IMC):
The strategic integration of multiple means of
communicating with target markets to form a
comprehensive, consistent message.
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The Marketing Communications Process
Marketing Communications Planning
Situation Analysis
Communications Process
Analysis
Budget Development
Program Development
Integration
&
Implementation Monitoring, Evaluating, Controlling Marketing
Plan Review
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Marketing Communications Environments
Communications Process Analysis
Apply the Basic Communication Model.
Set Marketing Communications Objectives
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Budget Development
Influences on Budgeting:
Size of the company
Its financial resources
The type of business
The market dispersion
The industry growth rate
The firm’s position in the marketplace
Budgeting Methods
Percentage of Sales
Competitive Parity
All-You-Can-Afford
Objective-Task
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Marketing Communications Program Development
Explicit Communications:
Convey a distinct, clearly stated message through personal selling, advertising, public relations, sales promotion, direct marketing, or some combination of these methods.
Implicit Communications:
What the message connotes about the
product itself, its price, or the places it is sold.
Push, Pull, and Combination Strategies
Push Strategy:
Involves convincing intermediary channel members to “push” the product through the cannel to the ultimate consumer.
Pull Strategy:
Attempts to get consumers to “pull” the product from the manufacturing company
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Push, Pull, and Combination Strategies
Combination Strategy:
Aiming marketing communications at both resellers and ultimate
consumers.
Combination Strategy:
Aiming marketing communications at both resellers and ultimate
consumers.
Integration and Implementation
Implementation:
Setting the marketing communications plan into action.
Implementation:
Setting the marketing communications plan into action.
The key aspect of implementation
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Monitoring, Evaluating, and Controlling
Examples:
Monitor sales promotion by the number of coupons redeemed.
Measure the effectiveness of a new personal selling strategy by looking at the number of new accounts opened.
A firm might run tests to see it consumers noticed the ad.
Review sales results and attribute fluctuations in sales volume to MC.
Examples:
Monitor sales promotion by the number of coupons redeemed.
Measure the effectiveness of a new personal selling strategy by looking at the number of new accounts opened.
A firm might run tests to see it consumers noticed the ad.
Review sales results and attribute fluctuations in sales volume to MC.
Ethical and Legal Considerations
M C Element Legal / Ethical Concerns M C Element Legal / Ethical Concerns
Advertising Deceptive advertising
Unfavorable stereotypes Public Relations Lack of sincerity
Using economic power unfairly Sales Promotion Misleading consumer promotions
Paying slotting allowances for shelf space Personal Selling High-pressure selling
Misrepresenting product benefits
Advertising Deceptive advertising
Unfavorable stereotypes Public Relations Lack of sincerity
Using economic power unfairly Sales Promotion Misleading consumer promotions
Paying slotting allowances for shelf space Personal Selling High-pressure selling
Misrepresenting product benefits Direct Marketing Telemarketing privacy invasion
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Legal -- but Ethical?
Some marketing communications may be technically legal but raise significant ethical questions:
Liquor industry now advertises on cable and local television stations.
Extensive promotion of higher-cost drugs when health care costs are spiraling out of control.
Heavy promotional allowances to pharmacies for agreement to push proprietary instead of generic drugs.
Promotion of legalized gambling.
Some marketing communications may be technically legal but raise significant ethical questions:
Liquor industry now advertises on cable and local television stations.
Extensive promotion of higher-cost drugs when health care costs are spiraling out of control.
Heavy promotional allowances to pharmacies for agreement to push proprietary instead of generic drugs.
Promotion of legalized gambling.
Deception in Marketing Communications
Deceptive Advertising:
Communication s intended to mislead
consumers by making false claims or failing to disclose
important
Examples:
False pricing offers
Misleading or
overstating product benefits
Non-substantiation of claims made in
marketing
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Additional Regulatory Concerns
Comparative advertising requires that comparative claims be supported.
Product endorsers must be qualified to make judgments and must actually
use the product being endorsed.
Packaging and labeling practices of food and drug marketers are heavily scrutinized
by consumers and regulatory agencies.
Effects of Globalization
Adjust the communications mix from country to country to avoid legal and ethical problems.
Sales promotion techniques that involve contests and giveaways are regulated quite differently in various countries.
Adjust the communications mix from country to country to avoid legal and ethical problems.
Sales promotion techniques that involve contests and giveaways are regulated quite differently in various countries.
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Effects of Globalization
Acceptable personal selling behavior varies significantly across
countries and cultures.
Special precautions must be taken to not perpetuate unfavorable stereotypes of ethic and racial groups.
Acceptable personal selling behavior varies significantly across
countries and cultures.
Special precautions must be taken to not perpetuate unfavorable stereotypes of ethic and racial groups.
