BUS 448 Chapter Notes -Integrated Marketing Communications, Brand Equity, Promotional Mix
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Published on 28 Nov 2011
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TERMINOLOGY is highlighted in Purple
CH1. Integrated Marketing
Communications
Factors that complicate decisions:
•uncertain environment
•niche markets
•new communication technology
•emergence of global markets
•changes in consumer buying behavior
Integrated Marketing Communications an emerging trend to link / connect promotional tools to
effectively communicate with their current and prospective customers. Each communication tool retains
its unique communication effect and that the combination of communication tools contributes to the
overall communication effect of the brand or organization.
Exchange as a central concept in marketing and the use of basic marketing activities to create and
sustain relationships with customers.
•2 parties
•something of value to one another
• desire/ability to do so
•way to communicate
Advertising and Promotions
•important role in exchange process
•informing customers of an organizations product
•convincing ability of product to satisfy needs/wants
Marketing Function
•examining needs/wants of consumers
•developing product/service that satisfies that need
•offering it at certain price
•making it available through particular place / channel of distribution
•developing program of promotion/communication
Marketing Mix task of marketing is to combine the following elements into a marketing program to
facilitate potential for exchange with consumers in the marketplace.
•Product
•Price
•Place (distribution)
•Promotion (marketing communication)
Decisions
•Product
•type

•features or attributes
•benefits
•corporate name / identification
•brand name / identification
•package design
•Price
•price level
•price policy
•discount
•allowance
•flexibility
•Distribution
•channel type
•channel policy
•type of intermediary or reseller
•type of location/store
•service level
Product a bundle of benefits signifying what the attributes can do.
Benefits
•functional (performance of product)
•experiential (what it feels like to use product)
•psychological (self-esteem / status from owning particular brand)
Product symbolism refers to what a product / brand means to consumers and what they experience in
purchasing it.
Brand Equity intangible asset of added value or goodwill that results from the favorable image,
impressions of differentiation, and/or the strength of consumer attachment to a company name, brand
name, or trademark. Provides a competitive advantage.
Packaging
•functional benefits: economy, protection, storage
•first exposure to product
•make favorable impressions
•communicate information on product usage
•composition and content
•satisfy legal requirements
•important way to communicate with consumers
•Design factors: size, shape, color, lettering, contribute to appeal of package
•creating a distinctive look
Price refers to what the consumer must give up to purchase a product: time, mental activity, and
behavioral effort.
Profit Impact of Marketing Strategies (PIMS) pricing and advertising strategies go together. High
relative ad expenditures should accompany premium prices, and low relative ad expenditures should be
tailored to low prices.
Distribution Channel the way the product/services are made available for purchase.
•where
•when

•support / services
Indirect Channels network of wholesalers (institutions that sell to other resellers) and/or retailers (sell to
final consumers)
Decisions:
•selecting and managing intermediaries (wholesalers, distributors, brokers, retailers )
•Policies CRITICAL to motivate resellers and ensure success of companyʼs marketing campaigns
•service level received by consumers
Direct Channels directly sell to customers.
•direct-selling programs
•selling expensive / complex products
•those that require extensive negotiations and sales effort, service and follow-up calls.
The Promotional Mix
Promotion coordination of all seller initiated efforts to set up channels of information and persuasion to
sell goods and services or promote an idea.
Promotional Mix basic tools an organization uses in a promotional program.
Traditionally:
•advertising
•sales promotion
•public relations
•personal selling
•Direct Marketing
•Interactive media
Advertising any paid form of nonpersonal communication about an organization, product, service, or
idea by an identified sponsor.
Paid - space/time for message must be bought
nonpersonal - mass media, no opportunity for good feedback. Must consider how audience will interpret
and respond to it.
•cost-effective method for communicating to large audiences
•valuable tool for building company / brand equity
•provide consumers with information / influence their perceptions
•create favorable and unique images and associations for a brand
•differentiation
•building a brand
•flexible tool that can be used for many industries, situations, target audiences.
Sales Promotion marketing activities that provide extra value or incentives to the sales force,
distributors, or the ultimate consumer and can stimulate immediate sales.
Consumer Sales Promotion targeted to the ultimate user of a product/service and includes
•couponing
•sampling
•premiums