Integrated Marketing Communications IMC Context Overall Marketing Objectives

Integrated Marketing Communications (IMC)

Context Overall Marketing Objectives Marketing Mix • Product • Distribution • Promotion • Price Target Market Promotional Mix • Advertising • Public Relations • Personal Selling • Sales Promotion Plan Coordinated; Competitive Advantage

Promotion & Marketing Communications • Promotion: function of informing, persuading, and influencing the consumer’s purchase decision

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 Source Encoding Process Medium of Transmission Decoding Process Receiver or Audience Feedback NOISE 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 (it’s a Diet Coke Thing; Wusssssup? )

Doritos Commercial: What tactics do they attempt to hold your interest? http: //www. youtube. com/watch? v=v 5 l. Bd. LEi 3 ns

AIDA: Desire? Arouse desire Tactics: USP: Unique selling proposition (Gillette razor; clear deodorant, clear soda) Provide a rationale (“I’m 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 UNPAID NONPERSONAL Publicity PAID Advertising, Sales Promotion, Direct Marketing Word of Mouth, Direct Mail; Word of Mouse Personal Selling

Promotional. Tool: 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/e. WOM 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 Introduction Industry Sales Maturity Decline Advertising PR; Selling; Promotions Dollars Growth Publicity Advertising 0 Time Advertising Promotions; Selling

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