TERMINOLOGY is highlighted in Purple
CH1. Integrated Marketing
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
• 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.
• Place (distribution)
• Promotion (marketing communication)
• type • features or attributes
corporate name / identiﬁcation
• brand name / identiﬁcation
• package design
• price level
• price policy
• channel type
• type of intermediary or reseller
• type of location/store
• service level
Product a bundle of beneﬁts signifying what the attributes can do.
• 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
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.
• 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
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.
• when • support / services
Indirect Channels network of wholesalers (institutions that sell to other resellers) and/or retailers (sell to
• 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.
• 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
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
• premiums • rebates
• various point-of-purchase materials
• IMMEDIATE purchase
• short-term sales
Trade Sales Promotion targeted towards marketing intermediaries (wholesalers, distributers, retailers)
• merchandising allowances, price deals, sales contests, trade shows
• encourage trade to stock and promote companyʼs products.
Public Relations the management function which evaluates public attitudes, identiﬁes the policies
and procedures of an individual or organization with the public interest, and executes a program of action
to earn public understanding and acceptance.
• special publications
• participation in community activities
• sponsorship of special events
• various public affairs activities
• ENHANCE an organizationʼs image
Publicity refers to nonpersonal communications regarding an organization, product, service, or idea not
directly paid for or run under identiﬁed sponsorship.
• news story
• announcement about an organization/its products and services
• news releases
• press conference
• feature articles
+ credibility from an unbiased source
• low cost
Direct Marketing organizations communicate directly with target customers to generate a response
and/or a transaction.
• call centers
• direct mail
• mail-order catalogues
• direct-response ads in various broadcast and print media
product samples / other promotional items
Traditionally NOT considered part of the promotional mix since it has distinct objectives, strategies, and
tactics. However it is an important component of the ﬁrmʼs marketing communications program since it
connects to many other communication tools.
Used by companies that
• distribute their products to consumers directly and through traditional distribution channels through their
own sales force Direct-response advertising whereby a product is promoted through an ad (tv/print) that encourages the
consumer to purchase directly from the manufacturer
change in LIFESTYLE
• two-income households
• more discretionary income
• less time for in-store shopping
• credit cards + toll free numbers + reliable delivery services = facilitated purchase of products from direct
driven by advances in technology and developments that have led to dramatic growth of communication
through Interactive Media that allows for back-and-forth ﬂow of information where users can modify the
form and content of information they receive in real time.
• receive and alter information/images
• make inquiries
• respond to questions
• make purchases
• providing current/potential customers with information
entertain/communicate more emotionally with clientele
• sales promotion incentives: coupons, contests, sweepstakes online
• direct marketing
• personal selling
• PR activities
Personal Selling form of person-to-person communication in which a seller attempts to assist/persuade
prospective guyers to purchase the companyʼs product/service or to act on an idea.
• direct contact
• ﬂexibility to tailor the message to customers speciﬁc needs/situation
PARTICIPANTS in the promotion
• Advertisers / Clients have product/services/causes to be marketed and provide funds that pay for