Integrated Marketing Communications (IMC)

Slide 1

Integrated Marketing Communications (IMC)

Chapter 161ContextPromotional Mix

AdvertisingPublic RelationsPersonal SellingSales Promotion

Promotion PlanOverall Marketing ObjectivesMarketing MixProductDistributionPromotionPriceTarget Market

Coordinated; Competitive Advantage2Promotion: function of informing, persuading, and influencing the consumers purchase decision

Promotion & Marketing CommunicationsInformPersuadeRemind3Goals of PromotionInform: this is what we offer (especially new, car financing)Persuade: we are better (Kia & Honda) (similar to competition)Remind: have them already (well established with loyal base; JC Penney)4Integrated Marketing CommunicationsMarketing Communications: transmission from a sender to a receiver of a message dealing with the buyer-seller relationshipIntegrated marketing communications (IMC): Coordination of all promotional activities to produce a unified customer-focused promotional messageSuccess of any IMC program depends critically on identifying the members of an audience and understanding what they want 5Precondition for promotion: communicationEncoding ProcessDecoding ProcessSourceMediumofTrans-missionReceiveror AudienceNOISENOISEFeedbackAIDA concept6Marketing Communication ProcessNeed common frame of reference b/w sender and receiver to exchange meanings (Language, impairment)

5 Step Process: 1. Source/SenderAd agencyIntends to share meaning

2. Encoding: translating meaning of message into some form (Got Milk?)

7Marketing Communication Process3. Message Channel / Medium:Means of reaching target (print ad, T.V., salesperson)Be appropriate (print vs. T.V.; Newsweek vs. Playboy)4. Decoding the MessageTarget makes sense of messageNoise: anything decreases clarity (e.g., Nova; KFC in Japan)Message always changes (teaching)5. Receiver: decoder of message (different markets see same message differently). What examples can you think of?Feedback is response: circularDifficult to measure, so use feedback channels (research, sales)

8AIDA: Attention?Attention-> Interest-> Desire ->ACTION!!!It gets harder as you go.Attention (e.g., sign-flippers, clowns)Headline (New York Post; only part read)Visuals (sex)LayoutColorsSize (Times Square)Electronic: sound; music; animationGross images (this nasty eyeball gets your attention!)

9AIDA: Interest?Keep Interest difficult in our ADD world Tactics:Drama/story (Dos Equiss )Cartoons (M&Ms)Dialog (its a Diet Coke Thing; Wusssssup?)

10Doritos Commercial:

What tactics do they attempt to hold your interest?http://www.youtube.com/watch?v=v5lBdLEi3ns11AIDA: Desire?Arouse desireTactics:USP: Unique selling proposition (Gillette razor; clear deodorant, clear soda)Provide a rationale (Im worth it)Address you with their needs/problems(Do you want to make more $?; Have you been injured in an accident?)

Federal Express: When it absolutely, positively has to be there overnight.12AIDA: Action?Action if consumers desire, hope action is natural (and realistic for them):Ask consumers to do something (log on to; call..)Imperative: Drink Coke, Fly the Friendly SkiesFacilitate: 1-800 or webDirect competitive: supplies are limited!!Do you view ads after purchasing that product?: Why?

13Promotional MixUNPAIDPAIDNON-PERSONALPublicityAdvertising, Sales Promotion,Direct MarketingPERSONALWord of Mouth,Word of MouseDirect Mail;Personal Selling14PromotionalTool: AdvertisingPromotion Methods a.k.a. The Promotion Mix Advertising: paid, impersonal promotions by identified sponsor(s)Traditional big markets, but adaptable to smallerLow cost/contact (LA Times: 2 cents/per reader)Difficult to measure impactNot adaptable, inflexible

15Promotional Tool: Publicity and The MediaPublicity; unpaid, impersonal promotions (talk show, movie premiere, charity, cars)Do not pay media costs (magazine article)Perceived credibility; negativityPublicity has far more value than advertising, but you must give reporters a reason to write about you. 16Promotional Tool: Sales PromosSales promotion (coupons, POP, samples, tradeshow)Added value or incentive in regard to a particular productMay complement personal and mass selling (bonus)TargetsFinal consumers: coupons, freq. shopperMiddleman: gifts, price breaksCompany sales force: bonuses, training

17Promotional Tool: WOM/eWOMWord of mouth: WOM is the most important marketing element that exists Gordon Weaver, Paramount Pictures. Do you agree?Unpaid, personal promotions (after ads PLC)Very high credibility (friends, business acquaintances, employees)Try for opinion leaders (may pay to stimulate; teens; movies; fashions)Usually negative (respond to complaints)Buzz; viral (snakes on a plane)

18Promotional Tool: Personal Selling Personal selling; paid, personal promotions; direct spoken communicationAdaptable to each targetImmediate feedbackVery expensive ($200/contact, $500 on a cold market)More spending on p.s. than ads

19Factors Affecting Promotional MixNature of ProductStage in the PLC (When should you promote?)Target Market CharacteristicsType of Buying Decision (Impulse?)Available Funds (Do you want a Bentley?)20Promotion Mix Over the PLCTimeIndustry SalesDollarsIntroduction Growth Maturity Decline0PublicityAdvertisingAdvertisingPR; Selling;PromotionsAdvertisingPR; SellingAdvertisingPromotions;Selling21SummaryMarketing Mix/ToolkitPromotion ObjectivesMarketing Communication ProcessAIDA Factors Impacting Promotional MixIMCAny questions??22