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Lecture 12

ADMS 2200 Lecture Notes - Lecture 12: Integrated Marketing Communications, Guerrilla Marketing, Sales PromotionPremium


Department
Administrative Studies
Course Code
ADMS 2200
Professor
Kim Snow
Lecture
12

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Chapter 14: Integrated Marketing Communications, Advertising, and Digital Communications
Integrated Marketing Communication
The customer is at the heart of marketing communications
IMC begins with their wants or needs and then works backward to the product
Importance of Teamwork Successful implementation of IMC requires consistent,
coordinated promotional effort at every stage of customer contact
Role of Databases in Effective IMC program The Internet allows companies to gather
information faster and organize it easily
The Communication Process
Sender encodes a message
Receiver decodes, or interprets, the message and sends feedback
Throughout, noise can interfere with the transmission of the message over the
channel
AIDA concept
Promotional Mix Subset of the marketing mix in which marketers attempt to achieve
the optimal blending of the elements of personal and non-personal selling to achieve
promotional objectives
Elements of Promotional Mix
Personal Selling Refers to a seller’s promotional presentation conducted on a
person-to-person basis with the buyer
Non-Personal Selling Includes advertising, product placement, sales promotion,
direct marketing, public relations, and guerrilla marketing
o Advertising Any paid, non-personal communication through various
media about a business firm, not-for-profit organization, product, or idea
by a sponsor identified in a message
o Product Placement form of non-personal selling in which the marketer
pays a motion picture or television program owner a fee to display his or
her product prominently in the film or show
o Sale Promotion Marketing activities other than personal selling,
advertising, guerrilla marketing and public relations that stimulate
consumer purchasing and dealer effectiveness
o Direct Marketing Direct communications, other than personal sales
contacts, between buyer and seller, designed to generate sales,
information requests, or store or website visits.
o Public Relation Firm’s communications and relationships with its
various publics
o Publicity Non-personal stimulation of demand through unpaid
placement of news in published medium or a favourable presentation of
it on the radio or television
o Guerrilla Marketing Unconventional, innovative, and low-cost
marketing techniques designed to get consumers’ attention in unusual
ways. There are two types of guerrilla marketing:
Buzz Marketing

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Viral Marketing
Sponsorship - Relationship in which an organization provides funds or in-kind resources
to an event or activity in exchange for a direct association with that event or activity
Types of Advertising
Product Advertising non-personal selling of a good or service, the type people
picture when they think of promotion
Institutional Advertising promotes a concept, an idea, a philosophy, or the
goodwill of an industry, company, organization, person, geographic location, or
government agency
Institutional advertising is a broader concept than corporate advertising, which refers to
non-product advertising sponsored by a specific profit-seeking firm. Institutional advertising is
closely linked to public relations.
Objectives of Advertising
Informative Advertising - seeks to develop initial demand for a good, service,
organization, person, place, idea, or cause. It’s a common method used in
promoting any new market entry, because at the introductory stage the goal is
simply to announce availability.
Persuasive Advertising - is designed to increase demand for an existing good,
service, organization, person, place, idea, or cause. It’s a competitive method
suited to the growth stage and early maturity stage of the product life cycle.
Reminder Advertising - strives to reinforce previous promotional activity by
keeping the name of the good, service, organization, person, place, idea, or
cause in the minds of the public. It’s common in the latter maturity stage and
through the decline stage of the product life cycle.
Traditionally, marketers thought of advertising objectives as direct sales goalstoday
advertising is a way to achieve the communication objectives of informing, persuading,
and reminding customers.
Advertising attempts to condition consumers to adopt favourable views toward a
promotional message.
The goal of an ad is to improve the likelihood that a consumer will buy the good
or service.
To get the best value for their investment, firms must first determine their
advertising objectives.
Reasons for using ads
To enhance consumer perceptions of quality in a good or service
To increase customer loyalty
To encourage repeat purchases
To protect themselves during a price war
To show their superiority to raise prices without losing market share
Advertising Strategies

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Comparative advertising - is a promotional strategy that emphasizes ad
messages with direct or indirect comparisons to dominant brands in the
industry.
o Firms whose products are not the leaders in their markets often favour
this format.
o In contrast, market leaders seldom acknowledge in their advertising that
competing products even exist.
Celebrity testimonials - involve well-known individuals who endorse or promote
a product or service. They have become popular ways to increase advertising
readership in a cluttered promotional environment and improve overall
effectiveness of a message
o Advantages of using celebrities:
Improved product recognition in a media environment crammed
with hundreds of competing ads and commercials, referred to as
clutter
A celebrity testimonial generally succeeds when the celebrity is a
credible source of information for the promoted product
The most effective celebrity testimonials establish relevant links
between the celebrities and the product or service
Appropriately matched celebrities improve the product’s
believability, recall, brand recognition, and brand equity
o Disadvantages of using celebrities:
A celebrity who endorses too many products may create
marketplace confusion
If a celebrity is involved in a scandal or has legal problems,
response to ads is affected
Some firms have avoided potential personality conflicts by using
cartoon characters as endorsers
They always say the right thing
They do what marketers want them to do
They cannot get into scandals
Retail advertising - includes all ads by retail stores that sell products directly to
the consuming public. While it accounts for a good portion of total ad
expenditures, its effectiveness varies widely.
o Consumers may respond with suspicion or disbeliefsource, message,
and shopping experience seem to affect consumer attitudes toward
these ads.
o Certain words are often seen in retail ads, but have been overused “free,”
“new,” and “sale,” for instance.
o Retail stores once viewed advertising as a secondary, but this is changing.
o In cooperative advertising, a retailer often shares advertising costs with a
manufacturer or wholesaler, improving dealer relations and
strengthening vertical links in the marketing channel.
Interactive advertising
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