CHAPTER 1: INTEGRATED MARKETING COMMUNICATIONS

Chapter 1 – Advertising & Promotion, 8 th Canadian Edition ©2023 McGraw Hill Ltd.1-1

CHAPTER 1: INTEGRATED MARKETING COMMUNICATIONS

INSTRUCTOR’S MANUAL

Chapter Overview This chapter provides an overview of advertising and promotion. The first section summarizes how marketing communication conveys marketing mix decisions. The promotional mix is introduced, and the firms involved in promotion planning and execution are highlighted. This chapter introduces integrated marketing communications (IMC) and discusses its evolution, a renewed perspective, and importance. Most marketers understand the value of strategically integrating the communication functions rather than having them operate autonomously and so this provides a foundation of the book’s IMC perspective. A model of the IMC planning process is examined to illustrate the content of a promotional plan. Finally, the organization of the text that is consistent with the planning process is summarized.Learning Objectives

• Describe the importance of marketing communication within the marketing mix.
• Identify the content of the promotional mix - advertising, sales promotion, public relations, direct marketing,

digital, and personal selling – and summarize their purpose.

• Illustrate the concept of integrated marketing communications (IMC) by distinguishing its evolution, renewed

perspective, and content.

• Explain the IMC planning process model and express the steps in developing a marketing communication

program.

• Identify how the IMC planning process is continued throughout all chapters.

Chapter and Lecture Outline

I. MARKETING COMMUNICATION

This section reviews the definition of marketing and illustrates how advertising and promotion communicates the remaining elements of the marketing mix to support the AMA definition.A Marketing— Most students have had a marketing course; however, it is helpful to remind them of definition of marketing. The American Marketing Association defines marketing as: the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.A description of marketing should include a summary of the activities involved in the marketing process and the different types of companies that use marketing extensively, including both profit and nonprofit organizations. It is important to indicate that each element of the marketing mix includes several decisions. This reminder leads the way to identifying the text’s scope. The marketing mix point highlights that marketing communication is responsible for drawing attention to product, price and distribution elements in the message received by the audience.B Communicating Product—an organization exists because it has a product, service, idea or cause to offer.Discussion can focus on the value offered by the product and the fact that goods and services offer attributes and benefits that satisfy needs. Benefits are communicated as functional based on their features or attributes. They are also subjectively claimed in ads based on performance. And they are communicated emotionally through product consumption. These emotions are positive or negative and are psychologically or socially based. Instructors can show ads that demonstrate these differences since (Advertising & Promotion, 8th Canadian Edition, 8e Michael Guolla, George Belch, Michael Belch) (Instructor Manual, For Complete File, Download link at the end of this File) 1 / 4

Chapter 1 – Advertising & Promotion, 8 th Canadian Edition ©2023 McGraw Hill Ltd.1-2 they are the heart of message development and delivery since promotional planners have complete control in deciding which approach to influence consumers.Communication for brand identity is important with respect to brand name, brand logo, brand tagline and packaging. Ads usually identify the brand characteristics clearly to encourage recognition at the point of purchase where decisions are made. Communicating all facets of the product is expected to contribute to brand equity; an 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. A discussion of the overall assessment of brand can ensue with reference to the data in the brand exhibits. Other brand outcomes are identified (i.e., experience, attachment, love), and instructors can draw on these to see if advertisers are fostering different brand related impressions upon consumers.C Communicating Price—the price decision of the marketing mix refers to what consumers give up in exchange for a product. Marketing managers are concerned with establishing a price level, developing pricing policies and monitoring consumers’ and competitors’ reactions to market prices. From a marketing communication standpoint, price is often a key piece of information in an ad or is the main selling message. Ad messages are intended to influence consumers knowledge of product category price points and contributes to consumer reference prices.D Communicating Distribution—marketing channels or the place decision of the marketing mix refers to the set of interdependent organizations involved in the process of making a product or service available to customers. The importance of resellers in marketing and promotional strategy should be introduced.Attention should be given to the need to develop promotional programs for the trade or resellers to encourage them to stock and promote a product.E Communicating Value—all marketing activities and marketing communication decisions are designed to enhance and or communicate customer value as conveyed in the AMA definition. Instructors should show examples where there are notable consumer costs beyond economic and how brands communicate value.

II. THE PROMOTIONAL MIX

Promotion is the coordination of all seller-initiated efforts to set up channels of information and persuasion.Promotion is the communication function of marketing mix as most of an organization’s communication occurs through a carefully planned and controlled program that utilizes elements of the promotional mix. The promotional mix should be defined and the function of each promotional mix element can be discussed along with its advantages and disadvantages.

• Advertising—paid form of nonpersonal communication about an organization, product, service, or idea

by an identified sponsor.

Advantages of advertising:

• cost-efficient way for communicating, particularly with large audiences.• cost-effective communication of a controlled message (what, when, how, where) if audiences process the message and the message is appropriate for that audience.• valuable for creating and maintaining communication effects like brand equity by creating images and symbolic appeals.• encourage online interaction with the brand. 2 / 4

Chapter 1 – Advertising & Promotion, 8 th Canadian Edition ©2023 McGraw Hill Ltd.1-3 • flexible application for all sorts of products, market situations, channel members, and target audiences that works with other IMC programs.• advertising occurs in consumer markets (national, retail/local, direct response), and business and professional markets (industrial, professional, trade).

Disadvantages of advertising: (not in the text)

• cost of producing and placing ads is very high in some media like TV but is offset with inexpensive Internet media exposure.• difficult to determine advertising effectiveness.• credibility and image problems associated with advertising.• numerous ad exposures from multiple brands and product categories have created clutter resulting in concerns of weaker or minimal consumer attention.

• Sales Promotion—marketing activities that provide extra value or incentive to the ultimate consumer, or

retailers and distributors.

Advantages of sales promotion:

• provides incentive to consumers or trade members to purchase or stock/promote a brand.• way of appealing to price sensitive consumer • way of generating extra interest in product or ads.• easily measured direct effects are possible compared advertising.• can be used as a way of building or reinforcing brand equity.

Disadvantages of sales promotion:

• companies become too reliant on sales promotion and focus on short run results.• some sales promotions do not contribute to brand image or long-term brand equity.• consumers become over-reliant on sales promotion that undermine brand loyalty.• problems with sales promotion clutter as consumers receive many promotional offers.• sales promotion offerings among competitors lowers margins and price tolerance.It is important to address the terminology of promotion and sales promotion. In this text the term promotion represents an element of the marketing mix by which firms communicate with their customers and includes the promotional mix elements. However, marketing and advertising practitioners use the term promotion in reference to sales promotion activities. Thus, sales promotion activities in the text refer one specific element of the promotional mix.

• Public Relations—a corporate communication program designed to enhance the company’s reputation

and/or earn public understanding and acceptance of a particular issue. It usually involves a process where management evaluates public attitudes and executes a program of action to earn public understanding and acceptance. In contrast, publicity is the nonpersonal communication that is not directly paid for nor run under identified sponsorship.The distinction should be made between publicity and public relations noting that public relations generally has a broader objective than publicity, as its purpose is to establish and maintain a positive image of the company among its various publics. Publicity is an important communication technique used in public relations however other programs may also be used. 3 / 4

Chapter 1 – Advertising & Promotion, 8 th Canadian Edition ©2023 McGraw Hill Ltd.1-4

Advantages of publicity:

• credibility of publicity is usually higher than other forms of marketing communication.• low-cost way of communicating • often has news value and generates word-of-mouth discussion among consumers.

Disadvantages of publicity:

• lack of control over what is said, when, where and how it is said • can be negative as well as positive.

• Direct Marketing—a system of marketing by which organizations communicate directly with target

customers to generate a response and/or a transaction.

Advantages of direct marketing:

• consumers are receptive to the convenience of direct-marketed products.• allows very selective targeting of marketing communications to specific customer segments.• customized messages fit the needs of specific market segments.• effectiveness of direct-marketing efforts is easier to assess than other forms of promotion.

Disadvantages of direct marketing:

• unsolicited communication makes consumers less receptive to direct-marketing.• direct marketing has image problems.• problems with clutter as direct-marketing messages compete for consumers’ attention.

• Digital—digital marketing communication uses interactive media that allows for a back-and-forth flow of

information whereby users participate in and modify its form and content instantly. Digital media is used for advertising and communicates or executes all other elements of the promotional mix. Instructors should demonstrate the differences between paid, owned, and earned media within social media and across different content publishers.

Advantages of digital:

• used for all integrated marketing communication functions.• used to target very specific groups of customers with a minimum of waste.• messages tailored to appeal to the specific interests and needs of the target audience.• high degree of customer involvement when customers visit a web site or social.• provide customers with a great deal of product information.• tremendous creative potential for shopping or influencing brand communication effects.

Disadvantages of internet marketing:

• concern that digital ads are not fully processed by consumers.• clutter makes it difficult for advertising messages to be noticed and/or given attention.• audience measurement and effectiveness research are challenging.

• Personal Selling—direct person-to-person communication whereby a seller assists and/or persuades

prospective buyers to purchase a company’s product or service or act on an idea.

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