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464 Part 6 Promotional Decisions
CHAPTER 16
INTEGRATED MARKETING COMMUNICATIONS, ADVERTISING, AND PUBLIC
RELATIONS
CHAPTER OVERVIEW
Chapter 16 is the first of two chapters devoted to analyzing the third marketing mix variable—promotion.
Promotion puts the whole picture together. It is the function of informing, persuading, and influencing the
consumer’s purchase decision.
The text focuses on technological advances and how they have dramatically changed the way marketers
now transmit a message from a sender to a receiver. Each message that people receive tells them
something about the brand, company, or organization. So a company needs to coordinate all these
messages. All communications need to give the same clear message so that the promotion gets
maximum total impact and consumers don’t tune out.
This chapter introduces the concept of IMC, then describes the elements of a firm’s promotional mix—
personal and nonpersonal selling —and the characteristics that determine the success of the mix.
The next segment of this chapter deals with advertising, which is the most visible form of nonpersonal
promotion, and marketers often use it together with sales promotion to create effective promotional
campaigns.
The chapter looks at the roles of public relations, publicity, and cross-promotion in an organization’s
promotional strategy. Finally the chapter concludes by identifying factors that influence the effectiveness
of a promotional mix.
Changes in the 17th Edition
The chapter has been updated and revised in several ways.
• The Opening Vignette and Evolution of a Brand feature Starbucks, a global chain that has
become synonymous with upscale coffee drinks. “Starbucks Serves Up Successful Marketing
Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 465
‘Brew’” highlights the strategies adopted by Starbucks to build its relationship with its customers.
Starbucks’ marketing approach is multi-layered and reaches across various platforms. Its
interactive web page invites customers to share their personal Starbucks experiences. Adopting a
mobile marketing strategy, it offers a number of incentives through its loyalty program, My
Starbucks Rewards. The secret of its success lies in its ability to identify, understand, and shape
its clientele.
• Career Readiness outlines ideas for building and maintaining a network for your career and
future job prospects. For more details see “Tips for Career Networking.”
• Video Case 16.2 includes a video featuring the strategies used by Pepe’s Pizzeria, a popular
pizza chain.
LECTURE OUTLINE
Opening Vignette and Evolution of a Brand—“Starbucks Serves Up Successful Marketing ‘Brew’”
What do you think accounts for Starbucks’ success? How does the company use social media to
connect with its customers?
Chapter Objective 1: Define integrated marketing communications and how it relates to the
development of an optimal promotional mix.
Key Terms: promotion, marketing communications, integrated marketing communications (IMC)
PowerPoint Basic: None
PowerPoint Expanded: 5-8
1. Promotion and the marketing mix
a. Promotion is the communication link between buyers and
sellers; it is the function of informing, persuading, and
influencing a consumer’s purchase decision
Marketing
Success—H&M
Integrates Its
Beckham
Campaign
How can retailers
reach and serve
target markets?
2. Integrated marketing communications
a. To prevent loss of attention, marketers are turning to
integrated marketing communications (IMC), which
coordinates all promotional activities to produce a unified,
customer-focused message
i. IMC is broader than marketing communications and
promotional strategy
ii. It uses database technology to refine the
understanding of the target audience, segment this
audience, and select the best type of media to reach
each segment
b. Marketers use this concept to develop customer-oriented
marketing programs, with the customer at the heart of the
communications
c. Rather than separating the parts of the promotional mix,
IMC looks at these elements from the consumer’s
viewpoint—as information about the brand or the company
d. IMC broadens promotion to include all the ways a customer
has contact with an organization; without this integrated
approach, a firm may send conflicting messages that
confuse potential buyers
e. The success of any IMC program depends on identifying the
members of an audience and understanding what they want,
otherwise the wrong message may be sent
f. IMC not only delivers messages to the intended audiences,
but also gathers feedback from them
g. The increase in media options provides more ways to give
consumers product information
i. This can also create information overload
i. Using IMC, marketers can more easily create a unified
personality for the brand and narrowly focus plans to reach
Career
Readiness—Tips
for Career
Networking
3. Importance of teamwork
a. IMC requires big-picture view of promotional planning, a
total strategy including all marketing activities, not just
promotion
b. IMC requires that everyone involved in every aspect of
promotion work together as a team, presenting a consistent
message at every point of customer contact
c. This saves time and money while avoiding duplication of
efforts
f. Networking, a form of teamwork, is an important skill for
building a career
4. Role of databases in effective IMC programs
a. The dramatic growth of the Internet has allowed marketers
to gather more information faster and to organize it more
easily
b. By sharing this detailed knowledge with all relevant parties,
a company can lay the foundation for a successful IMC
program
i. The move from mass marketing to customer-specific
marketing (seen in online promotion) requires
information
ii. It requires not only a way to identify and
communicate with the target market, but also a way
to gather information about each prospective
customer
Assessment check questions
1.1. Define promotion. Promotion is the function of informing, persuading,
and influencing the consumer’s purchase decision.
1.2. What is the difference between marketing communications and
Chapter Objective 2: Describe the communication process and how it relates to the AIDA
concept.
Key Terms: sender, message, receiver, AIDA concept, encoded, decoded, feedback, noise,
channel
PowerPoint Basic: 5-6
PowerPoint Expanded: 9-13
Table 16.1 Relating
Promotion to the
Communication
Process. Besides
the three listed,
think of other types
of promotions and
1. The communication process
a. Similar to individuals, firms worry that their message may
c. In any communication, the sender acts as the source in the
communication system in trying to convey a message—
information, advice, or a request—to a receiver, who
decodes and responds to the communication
d. An effective message accomplishes three tasks:
i. It gains the receiver’s attention
e. These three tasks are related to the AIDA concept
2. The AIDA concept
a. The AIDA concept, stands for attention-interest-desire-
action, the steps consumers take in reaching a purchase
decision
i. First, the promotional message must gain attention
ii. It then seeks to arouse interest in the product
b. Encoding and decoding
i. These promotional messages must be encoded—
translated into understandable terms—and
transmitted through a communications channel
ii. They are then decoded in the receiver’s
interpretation of the message
Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 469
iii. Feedback—the receiver’s response—completes the
process
messages, ignoring the rest
c. AIDA concept and online marketers
i. AIDA can help marketers understand online sales
ii. They must know how many people are looking at a
site, how often they come to view a message, what
d. Feedback
i. Feedback—the receiver’s response to the
message—allows marketers to evaluate the
effectiveness of the message and tailor their
responses accordingly
ii. Feedback may take the form of favorable attitude
changes toward a product line, purchases of the
item, or even nonpurchases
e. Noise
i. Noise is anything that interferes with or interrupts the
message—in the form of physical problems such as
bad radio or television reception, or conceptual
problems such as poor appeals or use of
inappropriate media
ii. Noise is interference at some stage in the
communication process, including misinterpretations
470 Part 6 Promotional Decisions
Assessment check questions
2.1. Identify the four steps of the AIDA concept. The four steps of the AIDA
concept are attention, interest, desire, and action.
2.2. What is noise as it relates to the communication process? Noise
represents interference at some stage in the communication process.
Chapter Objective 3: Identify the seven elements of the promotional mix.
Key Terms: promotional mix, personal selling, nonpersonal selling, advertising, product
placement, sales promotion, direct marketing, public relations, publicity, guerrilla marketing, buzz
marketing, campus ambassadors, viral marketing, sponsorship
PowerPoint Basic: 7
PowerPoint Expanded: 14-21
1. Elements of the promotional mix
a. Like the marketing mix, the promotional mix requires a
carefully designed blend of variables to satisfy the needs of a
company’s customers and achieve organizational objectives
b. The promotional mix works like a subset of the marketing
mix, with its own product, distribution, promotion, and pricing
elements
c. The two main components of the promotional mix are
personal selling and nonpersonal selling
d. Nonpersonal selling includes advertising, sales promotion,
direct marketing, public relations, and guerrilla marketing
2. Personal selling
a. Personal selling refers to a seller’s promotional presentation
conducted on a person-to-person basis with a buyer
3. Nonpersonal selling
a. Nonpersonal selling includes advertising, product placement,
sales promotion, direct marketing, public relations, and
guerrilla marketing
Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 471
i. Advertising and sales promotion are usually
regarded as the most important forms of
nonpersonal selling
b. Advertising
i. Advertising is any paid, nonpersonal communication
through various media about an organization,
intended to inform, persuade, or remind members of
a particular audience
c. Product placement
i. Product placement involves paying a fee in
exchange for using or showing an item in a movie or
TV show
ii. It is a form of nonpersonal selling
d. Sales promotion
i. Sales promotion consists of marketing activities
(other than personal selling, advertising, public
relations, and guerrilla marketing) that stimulate
consumer purchasing and dealer effectiveness
ii. This broad category includes displays, trade shows,
coupons, contests, samples, premiums, and
demonstrations
e. Direct marketing
i. Direct marketing is the use of direct communication
472 Part 6 Promotional Decisions
to a consumer or business recipient
ii. It is designed to generate a response in the form of
an order (direct purchase), a request for further
electronic promotions
f. Public relations and publicity
i. Public relations refer to a firm’s communications and
relationships with its various publics—including
customers, suppliers, stockholders, employees, the
government, and the general public
ii. Public-relations programs can deal with either formal
or informal contacts
iii. Publicity is the nonpersonal stimulation of demand
for a good, service, person, cause, or organization
through unpaid placement of significant news about
g. Guerrilla marketing
i. Guerrilla marketing is a relatively new approach that
involves innovative, unconventional, low-cost
techniques to grab consumer attention
ii. It is often used by firms with insufficient funds to
conduct a full marketing program, though at times
even successful corporations have tried it
iii. Often these firms cannot afford the high costs
involved in traditional print and broadcasting media,
and so need an innovative, low-cost way of reaching
Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 473
4. Advantages and disadvantages of types of promotion
a. Each type of promotion has its advantages and
disadvantages
b. Advertising—creates instant awareness, builds brand equity,
delivers the message to mass audiences, but is expensive
and its effectiveness is difficult to measure
c. Product placement—can be very effective in putting an
image before mass audiences, but is very expensive and can
5. Sponsorships
a. Sponsorship consists of an organization providing money or
in-kind resources in exchange for a direct association with an
event or activity
b. Sponsorship involves advertising, direct mail and sales
promotion, publicity in the form of media coverage, and
personal selling
c. Commercial sponsorship is not new. It dates back to ancient
Rome
474 Part 6 Promotional Decisions
Assessment check questions
3.1. Differentiate between personal and nonpersonal selling. Personal
selling involves a promotional presentation conducted on a person-to-
3.2. What are the six major categories of nonpersonal selling? The six
3.3. How is sponsorship different from advertising? Although sponsorship
generates brand awareness, the sponsor has little control over the
message or even the coverage, unlike advertising.
Chapter Objective 4: Name the three basic advertising objectives and the two basic
categories of advertising.
Key Terms: advertising, product advertising, institutional advertising, informative advertising,
persuasive advertising, reminder advertising
PowerPoint Basic: 8-9
PowerPoint Expanded: 22-24
1. Advertising is closely associated with IMC. IMC involves a message
dealing with buyer-seller relationships, while advertising seeks to
inform or persuade customers.
3. Types of advertising
a. There are two broad categories of advertising: product and
institutional advertising
b. Product advertising is nonpersonal selling of a particular
4. Objectives of advertising
a. Advertising serves three main purposes:
Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 475
i. To inform
ii. To persuade
iii. To remind
b. These three objectives can be used by marketers
individually or in conjunction with each other
c. Informative advertising
i. Informative advertising seeks to develop the initial
demand for a good, service, organization, person,
place, idea, or cause
d. Persuasive advertising
i. Persuasive advertising is designed to increase
demand for an existing good, service, organization,
person, place, idea, or cause
ii. It is a competitive method suited to the growth stage
and early maturity stage of the product lifecycle
e. Reminder advertising
i. Reminder advertising strives to reinforce previous
promotional activity by keeping the name of the
f. Traditionally, marketers thought of advertising objectives as
direct sales goals. Today, advertising is a way to achieve
the communication objectives of informing, persuading, and
reminding customers
i. Advertising attempts to condition consumers to adopt
favorable viewpoints toward a promotional message
ii. The goal of an advertisement is to improve the
likelihood that a consumer will buy the good or
service
iii. To get the best value for their investment, firms must
first determine their advertising objectives
g. Reasons for using advertisements
i. To enhance consumer perceptions of quality in a
good or service
Assessment check questions
4.1. What are the goals of institutional advertising? Institutional advertising
4.2. At what stage in the product lifecycle are informative ads used?
Chapter Objective 5: Identify the four major advertising strategies.
Key Terms: comparative advertising, celebrity testimonials, clutter, retail advertising, cooperative
advertising, interactive advertising
PowerPoint Basic: 10
PowerPoint Expanded: 25-31
Figure 16.2
Elements of the
Advertising
Planning Process
Which element do
you think is most
critical to the
work, or would it
lead to problems?
1. Advertising strategies
a. Effective advertising strategies accomplish at least one of
three tasks:
i. Informing
ii. Persuading
iii. Reminding
2. Comparative advertising
a. Comparative advertising is a promotional strategy that
emphasizes advertising messages with direct or indirect
comparisons to dominant brands in the industry
i. Firms whose products are not the leaders in their
markets often favor this format
ii. In contrast, market leaders seldom acknowledge in
their advertising that competing products even exist
b. A generation ago, comparative advertising was not the norm
and was often frowned upon
c. Today regulators such as the Federal Trade Commission
3. Celebrity testimonials
a. Celebrity testimonials involve well-known individuals who
endorse or promote a particular product or service
b. They have become popular ways to increase advertising
readership in a cluttered promotional environment and
improve overall effectiveness of a message
Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 477
i. The number of celebrity ads and the dollars spent on
them have increased in recent years
ii. It is important for companies to be sure their brand’s
tie to a celebrity makes sense and is genuine
c. Advantages of using celebrities:
i. Improved product recognition in a media
environment crammed with hundreds of competing
ads and commercials, referred to as clutter
ii. A celebrity testimonial generally succeeds when the
person is a credible source of information for the
product being promoted
d. Disadvantages of using celebrities:
i. A celebrity who endorses too many products may
create marketplace confusion
ii. If a celebrity is involved in a scandal or has legal
problems, response to ads is affected
e. Some firms have avoided potential personality conflicts by
using cartoon characters as endorsers
i. They always say the right thing
ii. They do what marketers want them to do
iii. They cannot get into scandals
4. Retail advertising
a. Retail advertising includes all ads by retail stores that sell
products directly to the consuming public
i. While it accounts for a good portion of total
advertising expenditures, its effectiveness varies
widely
ii. Consumers may respond with suspicion or
b. Retail stores once viewed advertising as a secondary
activity, but this is changing
c. In cooperative advertising, a retailer often shares advertising
costs with a manufacturer or wholesaler, improving dealer
relations and strengthening vertical links in the marketing
5. Interactive advertising
a. Interactive advertising involves two-way promotional
messages sent through communication channels that
encourage recipients to take an active part in the
promotional effort
b. The term has become synonymous with e-marketing and
the Web, but it also includes formats such as interactive
kiosks in shopping malls and text messages on cell phones
6. Creating an advertisement
a. Marketers spend billions of dollars a year on advertising in
the U.S. alone
b. With so many dollars at stake, they must create effective
and memorable ads that increase sales and enhance a
firm’s image
c. Research has led to the creation of better ads by pinpointing
goals that ads need to accomplish
i. Common goals include educating the public about a
product’s features, enhancing brand loyalty, or
7. Translating advertising objectives into advertising plans
a. Once a company defines its objectives, it can develop its
advertising plan
i. Marketing research helps managers make strategic
decisions that guide choices in technical areas such
as budgeting, copywriting, scheduling, and media
selection
ii. Posttests measure the effectiveness of an ad and
provide feedback on any needed adjustments (see
details later in chapter)
8. Advertising messages
a. The strategy for creating a message starts with the benefits
a product offers and moves to the creative concept phase
b. In this phase, an appropriate visual and verbal message is
created in an ad with meaningful, believable, and distinctive
appeals
c. Ads are not created individually but are part of specific
campaigns
Assessment check questions
5.1. What is comparative advertising? Comparative advertising makes
5.2. What makes a successful celebrity testimonial? Successful celebrity
5.3. What is an advertising campaign? An advertising campaign is a series
5.4. What are an advertisement’s three main goals? Advertising’s three
main goals are to educate consumers about product features, enhance
brand loyalty, and improve consumer perception of the brand.
Chapter Objective 6: Describe the various types of advertising appeals and their uses.
Key Terms: headlines, illustrations, body copy, signature, advergames, banners, missiles,
keyword ads, advertorials, interstitials, adware, social network advertising
PowerPoint Basic: 11-12
PowerPoint Expanded: 32-35
1. Advertising appeals
a. The advertising appeal, or tone of an ad, can be practical or
480 Part 6 Promotional Decisions
Figure 16.3
Elements of a
Typical Ad. Which
elements caught
your eye first?
Which did you
barely notice? Did
they involve certain
shapes? Certain
colors? Which gave
you the most
information? Which
might give the
quickest impression
emotional, serious or funny, informational or abstract
b. Several types of appeals can be used in ads to portray a
certain tone or feeling, including those based on fear,
humor, or sex
i. Fear—implies that incorrect buying decisions could
lead to illness, injury, or other negative
consequences, but can backfire if viewers tune out
statements they perceive as too strong or not
credible
2. Developing and preparing ads
a. The development and preparation of an ad should flow
logically from the promotional theme selected
b. Regardless of the chosen target, all ads should:
i. Gain attention and interest
ii. Inform and/or persuade
iii. Eventually lead to a purchase or other desired action
c. Four major elements of a print ad:
i. Headline—should grab interest and attention, along
with illustrations
ii. Illustrations—include photographs, drawing, artwork
3. Creating interactive ads
a. Web users want engaging, lively content that takes
advantage of the medium’s capabilities and goes beyond
what they find elsewhere
b. The Web offers several advantages that help create
interactive ads by:
i. featuring speed as a key element
such as banners, pop-ups, keywords ads, advertorials, and
interstitials
d. Some Internet ads can be initially entertaining, but many are
perceived as intrusive and unwanted
i. Advergames are either online games that promote
products, or ads and product placements inserted
into games
ii. Banners, strip messages placed in high visibility
areas of frequently visited websites; most common
e. Social networking advertising is advertising on sites such as
Facebook and LinkedIn
i. This type of advertising is gaining attention as firms
spend an estimated $4 billion a year on this mode of
Assessment check questions
6.1. What are some common emotional appeals used in advertising?
6.2. What are the main types of interactive ads? Interactive ads include
Internet banners, pop-ups, keyword ads, advertorials, advergames, and
interstitials.
Chapter Objective 7: Compare the seven different advertising media.
Key Terms: broadcast media, narrowcasting, junk mail, out-of-home advertising, augmented
1. Media selection
a. Media selection is a key decision in developing an
482 Part 6 Promotional Decisions
advertising strategy as it carries the firm’s message to its
audience
b. The media selected must be capable of accomplishing the
three communications objectives of informing, persuading,
and reminding potential customers of the good, service,
person, or idea advertised
2. Television
a. Television—network and cable combined—accounts for 40
cents of every advertising dollar spent in the world
b. Television can reach local and national markets
c. Virtual ads are banner-type logos and brief messages that
are superimposed onto coverage of sports or other events
f. In response to cable growth, declining ratings, and soaring
costs, network stations have refocused strategies with a
heavy emphasis on the Internet to capture younger
audiences
g. Cable TV offers access to more narrowly defined target
audiences than other broadcasting media can provide,
referred to as narrowcasting
h. Advantages of television advertising:
i. Powerful impact on viewers
ii. Mass coverage
i. Disadvantages of television advertising:
i. Loss of control of the promotional message to the
telecaster, which can lead to loss of impact
ii. High costs
iii. Some public distrust
iv. Lack of selectivity because specific shows may not
Chapter 16 Integrated Marketing Communications, Advertising, and Public Relations 483
reach consumers in a target market
v. Certain types of products are not allowed (tobacco
3. Radio
a. In recent years, radio has become one of the fastest
growing media alternatives
b. Consumers with little time use radio for immediate
information and instant entertainment
c. Marketers frequently use radio advertising to reach local
audiences. But in recent years, it has played an increasingly
important role as a national—and even global—listening
favorite
i. Thousands of Internet radio users listen to online
d. Advantages of radio:
i. Can reach a local audience, and increasingly a
national as well as global audience
ii. Can reach people while they drive as they represent
a captive audience
iii. The variety of stations allow advertisers to easily
target audiences and tailor messages
e. Disadvantages of radio:
i. Highly segmented audiences
4. Newspapers
a. Newspaper advertising continues to dominate local markets,
accounting for slightly less than $18 billion of annual
advertising expenditures
