Integrated Marketing Communications (IMC) Chapter 16.

Integrated Marketing Communications (IMC) Chapter 16

Context Promotional Mix Advertising Public Relations Personal Selling Sales Promotion Promotion Plan Promotional Mix Advertising Public Relations Personal Selling Sales Promotion Promotion Plan Overall Marketing Objectives Marketing Mix ProductProduct DistributionDistribution PromotionPromotion PricePrice Marketing Mix ProductProduct DistributionDistribution PromotionPromotion PricePrice Target Market Coordinated; Competitive Advantage

Promotion: function of informing, persuading, and influencing the consumers purchase decision Promotion & Marketing Communications

Goals of Promotion Inform: 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)

Integrated Marketing Communications Marketing Communications: transmission from a sender to a receiver of a message dealing with the buyer-seller relationship Integrated marketing communications (IMC): Coordination of all promotional activities to produce a unified customer-focused promotional message Success of any IMC program depends critically on identifying the members of an audience and understanding what they want

Precondition for promotion: communication Encoding Process Decoding Process Source Medium of Trans- mission Receiver or Audience NOISE Feedback AIDA concept

Marketing Communication Process Need common frame of reference b/w sender and receiver to exchange meanings (Language, impairment) 5 Step Process: 1. Source/Sender Ad agency Intends to share meaning 2. Encoding: translating meaning of message into some form (Got Milk?)

Marketing Communication Process 3. Message Channel / Medium: Means of reaching target (print ad, T.V., salesperson) Be appropriate (print vs. T.V.; Newsweek vs. Playboy) 4. Decoding the Message Target makes sense of message Noise: 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: circular Difficult to measure, so use feedback channels (research, sales)

AIDA: 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) Layout Colors Size (Times Square) Electronic: sound; music; animation Gross images (this nasty eyeball gets your attention!)

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

Doritos Commercial: What tactics do they attempt to hold your interest? http://www.youtube.com/watch?v=v5lBdLEi3ns

AIDA: Desire? Arouse desire Tactics: 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.

AIDA: 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 Skies Facilitate: 1-800 or web Direct competitive: supplies are limited!! Do you view ads after purchasing that product?: Why?

Promotional Mix UNPAIDPAID NON- PERSONAL PublicityAdvertising, Sales Promotion, Direct Marketing PERSONAL Word of Mouth, Word of Mouse Direct Mail; Personal Selling

PromotionalTool: Advertising Promotion Methods a.k.a. The Promotion Mix Advertising: paid, impersonal promotions by identified sponsor(s) Traditional big markets, but adaptable to smaller Low cost/contact (LA Times: 2 cents/per reader) Difficult to measure impact Not adaptable, inflexible

Promotional Tool: Publicity and The Media Publicity; unpaid, impersonal promotions (talk show, movie premiere, charity, cars) Do not pay media costs (magazine article) Perceived credibility; negativity Publicity has far more value than advertising, but you must give reporters a reason to write about you.

Promotional Tool: Sales Promos Sales promotion (coupons, POP, samples, tradeshow) Added value or incentive in regard to a particular product May complement personal and mass selling (bonus) Targets Final consumers: coupons, freq. shopper Middleman: gifts, price breaks Company sales force: bonuses, training

Promotional Tool: WOM/eWOM Word 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)

Promotional Tool: Personal Selling Personal selling; paid, personal promotions; direct spoken communication Adaptable to each target Immediate feedback Very expensive ($200/contact, $500 on a cold market) More spending on p.s. than ads

Factors Affecting Promotional Mix Nature of Product Stage in the PLC (When should you promote?) Target Market Characteristics Type of Buying Decision (Impulse?) Available Funds (Do you want a Bentley?)

Promotion Mix Over the PLC Time Industry Sales Sales Dollars Introduction Growth Maturity Decline 0 Publicity Advertising PR; Selling; Promotions Advertising PR; Selling Advertising Promotions; Selling

Summary Marketing Mix/Toolkit Promotion Objectives Marketing Communication Process AIDA Factors Impacting Promotional Mix IMC Any questions??

Integrated Marketing Communications (IMC) Chapter 16.

Documents

sales slide

message target

meaning of message

competitive advantage

japan message

goals of promotion

sense of message noise

message channel medium