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Chapter 16 An Overview of Marketing Communications 1-2 McGraw-Hill/Irwin Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

After studying this chapter you should be able to: 1-3 Discuss the objectives of marketing communications. Understand the marketing communications mix and its role. Explain the key elements of the marketing communications process.

After studying this chapter you should be able to: 1-4 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.

The Role of Marketing Communications Reminding Informing Persuading 1-5

The Marketing Communications Mix 1-6

Integrated Marketing Communications Integrated Marketing Communications (IMC): The strategic integration of multiple means of communicating with target markets to form a comprehensive, consistent message. 1-7

The Marketing Communications Process 1-8

Marketing Communications Planning Marketing Plan Review Monitoring, Evaluating, Controlling Situation Analysis Integration & Implementation Communications Process Analysis 1-9 Budget Development Program Development

Marketing Communications Environments The The Competitive Competitive Environment Environment The The Social Social Environment Environment 1-10 The The Economic Economic Environment Environment Marketing Marketing Mix Mix Considerations Considerations

Communications Process Analysis Set Marketing Communications Objectives 1-11 Apply the Basic Communication Model.

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 1-12

Budgeting Methods 1-13 Percentage of Sales Competitive Parity All-You-Can-Afford Objective-Task

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. 1-14

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 through the marketing channel. 1-15

Push, Pull, and Combination Strategies Combination Strategy: Combination Strategy: Aiming Aimingmarketing marketingcommunications communications at atboth bothresellers resellersand andultimate ultimate consumers. consumers. 1-16

Integration and Implementation Implementation: Implementation: Setting Setting the the marketing marketing communications communications plan plan into into action. action. The key aspect of implementation is coordination !!! 1-17

Monitoring, Evaluating, and Controlling 1-18 Examples: Examples: Monitor Monitorsales salespromotion promotionby bythe thenumber numberofof coupons couponsredeemed. redeemed. Measure Measurethe theeffectiveness effectivenessofofaanew newpersonal personal selling sellingstrategy strategyby bylooking lookingatatthe thenumber numberofofnew new accounts accountsopened. opened. AAfirm firmmight mightrun runtests teststotosee seeititconsumers consumers noticed noticedthe thead. ad. Review Reviewsales salesresults resultsand andattribute attributefluctuations fluctuationsinin sales salesvolume volumetotoMC. MC.

Ethical and Legal Considerations 1-19 M MCCElement Element Legal Legal/ /Ethical EthicalConcerns Concerns Advertising Advertising Deceptive Deceptiveadvertising advertising Unfavorable Unfavorablestereotypes stereotypes Public PublicRelations Relations Lack Lackof ofsincerity sincerity Using Usingeconomic economicpower powerunfairly unfairly Sales SalesPromotion Promotion Misleading Misleadingconsumer consumerpromotions promotions Paying Payingslotting slottingallowances allowancesfor forshelf shelfspace space Personal PersonalSelling Selling High-pressure High-pressureselling selling Misrepresenting Misrepresentingproduct productbenefits benefits Direct DirectMarketing Marketing Telemarketing Telemarketingprivacy privacyinvasion invasion Misuse Misuseof ofconsumer consumerdatabase databaseinformation information

Legal -- but Ethical? Some Some marketing marketing communications communications may may be be technically technically legal legal but but raise raise significant significant ethical ethical questions: questions: Liquor Liquor industry industry now now advertises advertises on on cable cable and and local local television television stations. stations. Extensive Extensive promotion promotion of of higher-cost higher-cost drugs drugs when when health health care care costs costs are are spiraling spiraling out out of of control. control. Heavy Heavy promotional promotional allowances allowances to to pharmacies pharmacies for for agreement agreement to to push push proprietary proprietary instead instead of of generic generic drugs. drugs. Promotion Promotion of of legalized legalized gambling. gambling. 1-20

Deception in Marketing Communications Deceptive Advertising: Examples: False pricing offers Communication s intended to mislead consumers by making false claims or failing to disclose important information. 1-21 Misleading or overstating product benefits Non-substantiation claims made in marketing communications of

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. 1-22

Effects of Globalization 1-23 Adjust Adjustthe thecommunications communicationsmix mix from fromcountry countryto tocountry countryto toavoid avoid legal legaland andethical ethicalproblems. problems. Sales Salespromotion promotiontechniques techniquesthat that involve involvecontests contestsand andgiveaways giveaways are areregulated regulatedquite quitedifferently differentlyin in various variouscountries countries.

Effects of Globalization Acceptable personal Acceptable personal selling behavior behavior varies varies selling significantly across across significantly countries and and cultures. cultures. countries Special precautions must Special precautions must be taken taken to to not not perpetuate perpetuate be unfavorable stereotypes stereotypes of of unfavorable ethic and and racial racial groups. groups. ethic 1-24