Integrated Marketing Communications (IMC)

Context

Promotional MixPromotional Mix

•Advertising•Public Relations•Personal Selling•Sales Promotion

Promotion PlanPromotion Plan

Promotional MixPromotional Mix

•Advertising•Public Relations•Personal Selling•Sales Promotion

Promotion PlanPromotion Plan

Overall Overall Marketing Marketing ObjectivesObjectives

Overall Overall Marketing Marketing ObjectivesObjectives

Marketing MixMarketing Mix• ProductProduct• DistributionDistribution• PromotionPromotion• PricePrice

Marketing MixMarketing Mix• ProductProduct• DistributionDistribution• PromotionPromotion• PricePrice

Target MarketTarget MarketTarget MarketTarget Market

Coordinated; Competitive Advantage

• Promotion: function of informing, persuading, and influencing the consumer’s 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 CommunicationsMarketing 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

SourceMediumofTrans-mission

Receiveror Audience

NOISE 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 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)

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)LayoutColorsSize (Times Square)Electronic: sound; music; animationGross 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=v5lBdLEi3ns

AIDA: Desire?Arouse desireTactics:

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 webDirect competitive: supplies are limited!!

Do you view ads after purchasing that product?: Why?

Promotional Mix

UNPAID PAID

NON-PERSONAL

Publicity Advertising, Sales Promotion,

Direct Marketing

PERSONAL Word of Mouth,

Word of Mouse

Direct Mail;

Personal Selling

PromotionalTool: 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

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

productMay complement personal and mass selling (bonus)Targets

Final consumers: coupons, freq. shopperMiddleman: gifts, price breaksCompany 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 communicationAdaptable to each targetImmediate feedbackVery expensive ($200/contact, $500 on a cold

market)More spending on p.s. than ads

Factors Affecting Promotional Mix

Nature of ProductStage in the PLC (When should you promote?)Target Market CharacteristicsType of Buying Decision (Impulse?)Available Funds (Do you want a Bentley?)

Promotion Mix Over the PLC

Time

IndustryIndustry SalesSales

Do

llar

s

Introduction Growth Maturity DeclineIntroduction Growth Maturity Decline

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PublicityAdvertising

AdvertisingPR; Selling;Promotions

AdvertisingPR; Selling

AdvertisingPromotions;Selling

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