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Chapter 15 ♦ Marketing Communications 1

CHAPTER 15 Marketing Communications

This chapter begins with the learning outcome summaries, followed by a set of lesson plans for you

to use to deliver the content in Chapter 15.

• Lecture (for large sections) on page 3

• Company Clips (video) on page 4

• Group Work (for smaller sections) on page 6

Review and Assignments begin on page 7

 Review questions

 Application questions

 Application exercise

 Ethics exercise

 Video assignment

 Case assignment

Great Ideas for Teaching Marketing from faculty around the country begin on page 18

2 Chapter 15 ♦ Marketing Communications

LEARNING OUTCOMES

15-1 Discuss the role of promotion in the marketing mix

Promotional strategy is the plan for using the elements of promotion—advertising, public relations, sales promotion,

personal selling, and social media—to meet the firm’s overall objectives and marketing goals. Based on these objectives,

the elements of the promotional strategy become a coordinated promotion plan. The promotion plan then becomes an

integral part of the total marketing strategy for reaching the target market along with product, distribution, and price.

15-2 Describe the communication process

The communication process has several steps. When an individual or organization has a message it wishes to convey to a

target audience, it encodes that message using language and symbols familiar to the intended receiver and sends the

message through a channel of communication. Noise in the transmission channel distorts the source’s intended message.

Reception occurs if the message falls within the receiver’s frame of reference. The receiver decodes the message and

usually provides feedback to the source. Normally, feedback is direct for interpersonal communication and indirect for

mass communication. Social Media have increased the amount of feedback received by marketers: consumers are

now able to become senders, and marketers can personalize the feedback channel by initiating direct

conversations with customers.

15-3 Explain the goals and tasks of promotion

The fundamental goals of promotion are to induce, modify, or reinforce behavior by informing, persuading, and

reminding. Informative promotion explains a good’s or service’s purpose and benefits. Promotion that informs the

consumer is typically used to increase demand for a general product category or to introduce a new good or service.

Persuasive promotion is designed to stimulate a purchase or an action. Promotion that persuades the consumer to buy is

essential during the growth stage of the product life cycle, when competition becomes fierce. Reminder promotion is

used to keep the product and brand name in the public’s mind. Promotions that remind are generally used during the

maturity stage of the product life cycle. Connection Promotion is designed to form relationships with customer and

potential customers using social media. Connecting encourages customers to become brand advocates and share their

experiences via social media.

15-4 Discuss the elements of the promotional mix

The elements of the promotional mix include advertising, public relations, sales promotion, personal selling, and social

media. Advertising is a form of impersonal, one-way mass communication paid for by the source. Public relations is the

function of promotion concerned with a firm’s public image. Sales promotion is typically used to back up other

components of the promotional mix by stimulating immediate demand. Personal selling typically involves direct

communication, in person or by telephone; the seller tries to initiate a purchase by informing and persuading one or more

potential buyers. Finally, social media are promotion tools used to facilitate conversations among people online.

15-5 Discuss the AIDA concept and its relationship to the promotional mix

The AIDA model outlines the four basic stages in the purchase decision-making process, which are initiated and

propelled by promotional activities: (1) attention, (2) interest, (3) desire, and (4) action. The components of the

promotional mix have varying levels of influence at each stage of the AIDA model. Advertising is a good tool for

increasing awareness and knowledge of a good or service. Sales promotion is effective when consumers are at the

purchase stage of the decision-making process. Personal selling is most effective in developing customer interest and

desire.

15-6 Discuss the concept of integrated marketing communications

Integrated marketing communications is the careful coordination of all promotional messages for a product or service to

ensure the consistency of messages at every contact point where a company meets the consumer—advertising, sales

promotion, personal selling, public relations, and social media, as well as direct marketing, packaging, and other forms

of communication. Marketing managers carefully coordinate all promotional activities to ensure that consumers see and

hear one message. Integrated marketing communications has received more attention in recent years due to the

Chapter 15 ♦ Marketing Communications 3

proliferation of media choices, the fragmentation of mass markets into more segmented niches, and the decrease in

advertising spending in favor of promotional techniques that generate an immediate sales response.

15-7 Describe the factors that affect the promotional mix

Promotion managers consider many factors when creating promotional mixes. These factors include the nature of the

product, product life-cycle stage, target market characteristics, the type of buying decision involved, availability of

funds, and feasibility of push or pull strategies. As products move through different stages of the product life cycle,

marketers will choose to use different promotional elements. Characteristics of the target market, such as geographic

location of potential buyers and brand loyalty, influence the promotional mix as does whether the buying decision is

complex or routine. The amount of funds a firm has to allocate to promotion may also help determine the promotional

mix. Last, if a firm uses a push strategy to promote the product or service, the marketing manager might choose to use

aggressive advertising and personal selling to wholesalers and retailers. If a pull strategy is chosen, then the manager

often relies on aggressive mass promotion, such as advertising and sales promotion, to stimulate consumer demand.

TERMS

advertising

integrated marketing

communications (IMC)

promotional mix

AIDA concept

promotional strategy

channel

interpersonal communication

publicity

communication

mass communication

public relations

competitive advantage

noise

pull strategy

decoding

owned media

push strategy

encoding

paid media

receiver

earned media

personal selling

sales promotion

feedback

promotion

sender

LESSON PLAN FOR LECTURE

Brief Outline and Suggested PowerPoint Slides:

Learning Outcomes and Topics

PowerPoint Slides

LO1 Discuss the role of promotion in the marketing

mix

15-1 The Role of Promotion in the

Marketing Mix

1: Marketing Communications

2: Learning Outcomes

3: Learning Outcomes

4: The Role of Promotion in the Marketing Mix

5: The Role of Promotion

6: Exhibit 15.1: Role of Promotion in the Marketing Mix

7: Competitive Advantage

LO2 Describe the communication process

15-2 Marketing Communication

8: Marketing Communication

9: Communication

10: Marketing Communication

11: Marketing Communication

12: The Sender and Encoding

13: The Channel and Noise

14: The Receiver and Decoding

15: Exhibit 15.2: Communication Process

16: Communication and the Internet

4 Chapter 15 ♦ Marketing Communications

Learning Outcomes and Topics

PowerPoint Slides

LO3 Explain the goal and tasks of promotion

15-3 The Goals and Tasks of Promotion

17: The Goals of Promotion

18: Goals and Tasks of Promotion

19: Goals and Tasks of Promotion

20: Goals and Tasks of Promotion

21: Goals and Tasks of Promotion

22: Goals and Tasks of Promotion

23: Goals and Tasks of Promotion

LO4 Discuss the elements of the promotional mix

15-4 The Promotional Mix

24: The Promotional Mix

25: The Promotional Mix

26: Advertising

27: Advertising Media

28: Advertising

29: Public Relations

30: The Function of Public Relations

31: Sales Promotion

32: Sales Promotion

33: Personal Selling

34: Personal Selling

35: Content Marketing and Social Media

36: The Communication Process and the Promotional Mix

37: Exhibit 15.3:Digital Media Types

38: Exhibit 15.4: Characteristics of the Elements in the

Promotional Mix

LO5 Discuss the AIDA concept and its relationship to

the promotional mix

15-5 Promotional Goals and the AIDA

Concept

39: Promotional Goals and the AIDA Concept

40: The AIDA Concept

41: The AIDA Concept

42: Exhibit 15.5: The Promotional Mix and AIDA

LO6 Discuss the concept of integrated marketing

communications

15-6 Integrated Marketing Communications

43: Integrated Marketing Communications

44: Integrated Marketing Communications

45: IMC Popularity Growth

LO7 Describe the factors that affect the promotional

mix

15-7 Factors Affecting the Promotional Mix

46: Factors Affecting the Promotional Mix

47: Factors Affecting the Choice of Promotional Mix

48: Exhibit 15.6: Product Life Cycle and the Promotional

Mix

49: Target Market Characteristics

50: Type of Buying Decision

51: Available Funds

52: Exhibit 15.7: Push Strategy versus Pull Strategy

53: Chapter 15 Video

Suggested Homework:

• The end of this chapter contains assignments for the Pepe’s Pizzeria video and for the Coors Light case.

• This chapter’s online study tools include flashcards, visual summaries, practice quizzes, and other resources that can

be assigned or used as the basis for longer investigations into marketing.

LESSON PLAN FOR VIDEO

Company Clips

Segment Summary: Pepe’s Pizzeria

Pepe’s Pizzeria is a popular restaurant located in Connecticut. The CEO discusses the thought process behind their

marketing strategy, how promotions work for Pepe’s and the general location strategy that comes into play when opening

new locations.

These teaching notes combine activities that you can assign students to prepare before class, that you can do in class

before watching the video, that you can do in class while watching the video, and that you can assign students to

complete as assignments after watching the video in class.

During the viewing portion of the teaching notes, stop the video periodically where appropriate to ask students the

questions or perform the activities listed on the grid. You may even want to give the students the questions before

starting the video and have them think about the answers while viewing the segment. That way, students will be engaged

in active viewing rather than passive viewing.

PRE-CLASS PREP FOR YOU:

PRE-CLASS PREP FOR YOUR STUDENTS:

• Preview the Company Clips video segment for

Chapter 15. This exercise reviews concepts for LO1–

LO7.

• Review your lesson plan.

• Make sure you have all of the equipment needed to

show the video to the class, including the DVD and a

way to project the video.

• You can also stream the video HERE

• Have students review and familiarize themselves with the

following terms and concepts: competitive advantage,

elements of the promotional mix, the communication

process, the goals and tasks of promotion, the AIDA

concept, factors that affect the marketing mix, and

integrated marketing communications.

• Have students bring written definitions of three of the

above terms to class.

• Ask students to monitor their mail (or a friends mail) for

two weeks. Have them collect all the mail that pertains to

restaurants in those two weeks, and bring it to class.

VIDEO REVIEW EXERCISE

ACTIVITY

Warm Up

Briefly discuss students’ findings. What types of restaurants are sending out mailers? Are they national

chains, local chains, independent restaurants, delivery only, dine-in promotions? Ask students about

their restaurant dining habits: how often do they dine in? Carry out/eat delivery? Have them classify the

types of restaurants they eat at in an average month. Based on the results, discuss student perceptions on

the mailers they brought in a why they do/don’t eat there

In-class

Preview

• Remind students about the elements of promotion while you Exhibit 15.1 (the role of promotion in

the marketing mix) onto the board.

• Discuss Exhibit 15.1, Role of Promotion in the Marketing Mix. Point out that promotion does not

simply refer to advertising, but the whole of an organization’s communication strategy.

• Discuss Exhibit 15.2, Communication Process. Select either a mailer brought in by a student or a

promotion for a well-known product to use as an example, and discuss how noise can adversely

affect the desired effect of a message. Also, note that marketers are increasingly relying on

individual consumer feedback to adjust their marketing mixes.

• Have copies of the Company Clips questions available for students to take notes on while viewing

the video segment.

Viewing

(Solutions

below.)

1. What are the goals for Pepe’s promotions? Explain your reasoning.

2. Discuss how the factors that affect the promotional mix affect how Pepe’s promotes its various

locations.

Follow-up

• In class, divide students into groups of three to five students and have them prepare a short report

on how Pepe’s Pizzeria integrates its marketing communications.

Solutions for Viewing Activities:

1. What are the goals for Pepe’s promotions? Explain your reasoning.

6 Chapter 15 ♦ Marketing Communications

Student answers will vary to some extent. They could address how Pepe’s integrates it atmosphere in all its stores

2. Discuss how the factors that affect the promotional mix affect how Pepe’s promotes its various locations.

Student answers will vary. The following are some possible answers for each of the factors affecting the

promotional mix.

Nature of the product: Pepe’s is a consumable, and is restricted to areas where customers can come eat in or pick up

their pizza. It is viewed as a consumer product, but could also be used by businesses. The main form of promotion is

LESSON PLAN FOR GROUP WORK

In most cases, group activities should be completed after some chapter content has been covered, probably in the second

or third session of the chapter coverage. (See “Lesson Plan for Lecture” above.)

• For “Class Activity – Promotional Mix,” provide the information and the questions asked by the class activities.

• The first Application Exercise is extremely well suited to group work. Form students into teams of no more than

four students. Each team must create a print advertisement for a given product without using a set of words

generally used in association with the product. This is a variation on the Hasbro game Taboo. Full information on

setting up the exercise can be found later in this manual.

Class Activity – Promotional Mix

The purpose of this exercise is to emphasize the effect of various factors on the strategy of choosing a promotional mix.

The main factors that affect the promotional mix can be classified into three major categories: 1) product related, 2)

market related, and 3) organization related. Product-related factors include product type, product costs and risks, product

life cycle stage, and amount and complexity of product information. Market-related considerations are target market

characteristics and the type of buying decision involved. Organization-related factors are the availability of funds and

feasibility of a push or pull strategy.

Divide the class into teams and give each team one of the following situation descriptions:

Situation #1

Consumer durable product that is slightly complex

Chapter 15 ♦ Marketing Communications 7

Introductory stage of product life cycle

Selective distribution

Large firm

Highly concentrated market (in large urban areas only)

Situation #2

Convenience item

Growth stage of product life cycle

Intensive distribution

Small firm

Nonconcentrated, large market

Situation #3

Industrial product that is large, complex, and expensive

Introductory stage of product life cycle

Small company (few available funds)

Small market, highly dispersed

Situation #4

Consumer food item

Mature stage of product life cycle

Intensive distribution

Large company

Nonconcentrated market

Each team should present a plan that outlines the promotion ingredients to be used and the relative importance of each

element in the promotional mix. The team should be able to explain which factors were most important and how the

team arrived at its decisions.

REVIEW AND ASSIGNMENTS FOR CHAPTER 15

REVIEW QUESTIONS

1. What is a promotional strategy? Explain the concept of a competitive advantage in relation to promotional

strategy.

Although students’ answers will vary, they should address some of these points: The role of promotion strategy is to

2. Why is understanding the target market a crucial aspect of the communication process?

Successful communication requires a degree of a common “language” or overlapping frames of reference between

8 Chapter 15 ♦ Marketing Communications

3. Discuss the AIDA concept. How do these different stages of consumer involvement affect the promotional

mix?

The AIDA concept was developed to explain the process through which consumers reach the decision to try a

4. Explain the difference between a “pull” promotional strategy and a “push” promotional strategy. Under

what conditions should each strategy be used?

“Push” strategies are commonly used for new products for which consumers have little information and for complex

5. Discuss the importance of integrated marketing communications. Give some current examples of companies

that are and are not practicing integrated marketing communications.

Integrated marketing communications carefully coordinate all the promotional activities to produce a consistent,

APPLICATION QUESTIONS

1. As the promotional manager for a new line of cosmetics targeted to preteen girls, you have been assigned the

task of deciding which promotional mix elements—advertising, public relations, sales promotion, and

personal selling—should be used in promoting it. Your budget for promoting the preteen cosmetics line is

limited. Write a promotional plan explaining your choice of promotional mix elements given the nature of the

product, the stage in the product life cycle, target market characteristics, type of buying decision, available

funds, and pull or push strategy.

Answers to this question will vary greatly.

2. Why might a marketing manager choose to promote his or her product using persuasion? Give some current

examples of persuasive promotion.

Persuasive promotion is typically used to build customer loyalty for a product in the growth stage of the product life

3. Choose a partner from the class and go together to interview the owner or manager of several small

businesses in your city. Ask them what their promotional objectives are and why. For example, are they

trying to inform, persuade, or remind customers to do business with them? Also determine if they believe

they have an awareness problem or whether they need to persuade customers to come to them instead of

competitors. Ask them to list the characteristics of their primary market, the strengths and weaknesses of

their direct competitors, and how they are positioning their store to compete. Prepare a report to present in

class summarizing your findings.

Chapter 15 ♦ Marketing Communications 9

4. How does a Web site’s ease of use affect its ability to create attention, interest, desire, and action? Visit the

kitchen and bath pages of Kohler’s Web site (http://www.kohler.com) and determine how successful the

company is at moving consumers through the AIDA process.

Students’ answers will vary.

5. Use Radioguide.com (http://www.radioguide.com) to find a listing of radio Web sites in your area. View

several of the stations’ sites and compare the promotions featured. What conclusions can you draw about the

target market of each station based on the types of promotions they are currently running? Would any of the

promotions entice you to tune to a station that you normally don’t listen to?

Students’ answers will vary.

6. Visit http://www.teenresearch.com. What research can this company offer about the size and growth of the

teen market, buying power of teenagers, and their buying habits? Why might these statistics be important to

a company targeting teenagers in terms of marketing communications and promotion strategy?

7. What do you think is the role of Hallmark’s Web site (http://www.hallmark.com) in the company’s integrated

marketing communications plan? What seems to be the marketing function of the site? Do you think the site

is effective?

Students’ answers will vary.

APPLICATION EXERCISES

Application 1

Many people are not aware of the rationale behind certain advertising messages. “Why do Infiniti ads show rocks and

trees instead of automobiles?” “If car safety is so important, why do automobile ads often show cars skidding on wet,

shiny surfaces?” “Target’s ads are funky, with all the bright colors and product packaging, but what’s the message?”

One way to understand the vagaries of the encoding process is to think of the popular board game Taboo by Hasbro. In

this game, each team tries to get its members to guess a word without using obvious word clues. For example, to get the

team to guess “apple,” you may not say such words as red, fruit, pie, cider, or core. Sometimes advertising is like Taboo

in that advertisers are not allowed to use certain words or descriptions. For example, pharmaceutical companies are not

permitted to make certain claims or to say what a drug treats unless the ad also mentions the potential side effects.

Language choices are also limited in advertising. To appreciate this, you can apply the Taboo game rules in an

advertising format.

Activities

1. Select a product from the list below, and then create a print advertisement or a television storyboard for that product.

As part of the exercise, give your product a brand name. Taboo words, visuals, and concepts are given for each

product type. Taboo items cannot be present in your work.

Product Taboo Words, Visuals, and Concepts

Deodorant Odor, underarm, perspiration, smell, sweat

Pain reliever Pain, aches, fever, child-proof cap, gel

Soft drinks Sugar-free, refreshing, thirst, swimwear, any celebrity

10 Chapter 15 ♦ Marketing Communications

2. Now create a second ad or storyboard for your product. This time, however, you must use all the words, visuals, and

concepts that are listed in the right column.

Product Must-Use Words, Visuals, and Concepts

Deodorant A romantic couple, monster trucks

Pain reliever A mother and child, oatmeal, homework

Soft drinks A cup of coffee, cookies, birthday cake, wine

Purpose: Many students are unclear as to the rationale behind certain advertising messages, so this exercise is designed

to help students understand the artistry inherent in the encoding process.

Setting It Up: This works as an individual assignment, but is an exceptional group project. This is because it blends

many modalities, is an engaging activity, and provides students what may be considered a welcome change from the

text-based learning that is the norm for most. If you choose to assign a group project, then it is suggested that you allot a

class period for students to present their work.

This exercise was inspired by the following Great Idea in Teaching Marketing:

Lynn R. Goodwin

University of St. Thomas

TABOO OR NOT TABOO, THAT IS THE QUESTION

When discussing the communication process in my advertising class, many of my students have some difficulty

understanding the artistry inherent in the encoding process. More precisely, many students are unclear as to the rationale

behind certain advertising messages. “Why did Infiniti ads show rocks and trees instead of automobiles?” they ask. Or,

“Why did MCI show a waif with a funny accent and hat jumping around on a rock strewn beach?”

Many of us, not being privy to the innermost workings of certain ad agency brains, may have no answer to this type of

question. I have, however, devised an exercise that helps students understand the vagaries of the encoding process.

I begin by bringing a copy of Taboo (Hasbro’s well-known game) to class. The object of the game is simple: each player

must get the other members of his or her team to say a particular word. The catch is that certain other words cannot be

used during this process. These words are taboo (hence the game’s name). For example, in attempting to elicit the word

apple, players are prohibited from using the words red, fruit, pie, cider, and core.

Following the playing of Taboo, I enter into a brief discussion of how the game relates to the communication process

(specifically encoding and decoding). Subsequently I discuss the rationale behind many advertisers’ less than

straightforward messages.

I use ethical (prescription) pharmaceuticals as an example and point out that certain health claims are not permitted in

advertisements unless accompanied by the legally mandated detailed prescribing information. This effectively limits

what can be said regarding a drug’s benefits in the broadcast media. Other reasons behind either internally imposed or

externally imposed limitations on advertising messages are also covered. Product deficits that might preclude a focus on

certain features or aspects of the product are a frequently discussed internally mediated limitation, while ethical

restrictions imposed by professional organizations on advertising are a frequently discussed externally mediated

limitation. In addition, I usually remind the students that advertising may be affective in nature or have as its goal less

direct objectives such as communicating a lifestyle.

After this brief discussion, I draw the obvious comparison between the game of Taboo and these internally or externally

imposed limitations or choices. Then it’s time for the next phase of the exercise.

The final stage of the exercise is the application of the Taboo rules in an advertising format. I ask students to devise

advertising messages or campaigns for specific product categories. The catch is that I also provide a list of words,

visuals, or concepts that they are prohibited from using in the formulation of these messages. A few examples that I have

used include:

Product

Taboo Words. Visuals, Concepts

Deodorant

Odor, Underarm, Perspiration, Smell, Sweat

Toothpaste

Teeth, Smile, Breath, Clean, Plaque

Pain Reliever

Pain, Aches, Fever, Child-Proof Cap, Gelatin-Coated

Soft-Drinks

Sugar-Free, Refreshing, Any Celebrity Spokesperson,

Swimwear, Other Soft-Drinks

Politician

Other Politician(s), Honesty, Crime, Taxes, Patriotism

Automobile

Automobile, Driver Testimonials, Statistical Reports on

Automotive Performance, Handling, Luxury

I sometimes utilize a variation of this exercise in which students are forced to use certain other words, visuals, or

concepts or to take a certain approach. I refer to this as my “Must-Do” exercise. A few examples are presented below:

Product

Must-Do Words, Visuals, Concepts

Deodorant

A Romantic Couple, Monster Trucks

Toothpaste

Lips, Tongue, Flowers

Pain Reliever

A Mother and Child. Oatmeal, Homework

Soft-Drinks

A Cup of Coffee, Cookies, Birthday Cake, Wine

Politician

Benjamin Franklin, A Dollar Bill, An Aircraft Carrier,

Amber Waves of Grain

Automobile

Rocks, Trees, Wind (This one may be too easy)

The construction of various Taboo or Must-Do situations is only limited by the imagination of the instructor. In fact, the

students themselves may be asked to come up with challenges for their classmates.

I find that this process can be used as a brief in-class exercise in a “principles” setting or can form the basis for a major

project in an advertising class. As part of a major project, the necessity of excluding certain words, visuals, or concepts

from the advertising message(s) challenges students to be a bit more imaginative than might ordinarily be the case.

Likewise, the forced inclusion of certain Must-Do words, visuals, or concepts serves a similar function. The exercise can

also be adapted to a discussion of segmentation in advertising by focusing on the inclusion or exclusion of certain words,

visuals, or concepts based on the characteristics, needs, and wants of the targeted segments.

It’s all in fun, but I do feel that the exercise creates a great deal of interest and comment relating to the communication

process. In the end, to do Taboo or not to do Taboo is the question every instructor must face. Enjoy.

Application 2

An important concept in promotion is semiotics, or the study of meaning and meaning-producing events. An

understanding of semiotics can help you not only to identify objects (denotation) but also to grasp the utility of images

and associations (connotation). By manipulating connotations of objects in advertising, you can create, change, or

reinforce images for products. Thus, semiotics is a powerful tool for brand management and promotion.

Activities

1. Make a list of ten images and associations that come to mind for each of the following items: baseball, vinyl record

album, spoon, rubber band.

2. Look through magazines and see if you can find print advertisements that include each of the items (baseball, vinyl

record album, spoon, rubber band) in a supporting role. What seems to be the message of each ad? How does the

item help create or reinforce an image for the product being sold in the ad?