Integrated Marketing Communication

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Definition

The Marketing Communications Mix The specific mix of

advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.

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The Marketing Communications Environment is Changing: Mass markets have fragmented, causing

marketers to shift away from mass marketing

Media fragmentation is increasing

Improvements in information technology are facilitating segmentation

Integrated Marketing Communications

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The Need for Integrated Marketing Communications Conflicting messages from different

sources or promotional approaches can confuse company or brand images The problem is particularly prevalent

when functional specialists handle individual forms of marketing communications independently

Integrated Marketing Communications

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Integrated MarketingCommunications

AdvertisingPaid non-personal

presentation and promotion of ideas,

goods, or services by an identified sponsor

Sales PromotionShort-term incentives used to encourage the purchase of a product or service

Public RelationsBuilding good relations with the company’s publics through favorable publicity, a good corporate image, and effective handling of unfavorable news

Personal Selling

Personal presentation by the sales force used to enhance sales and

customer relationships

Direct MarketingGain an immediate

response and lasting relationship with

targeted consumers

Need for IMC

Consistent, clear, compelling messages

ADVERTISING SELLING

PUBLIC RELATIONSSALES

PROMOTION

DIRECT MARKETING

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Elements in theCommunication Process

DEVELOPING EFFECTIVE COMMUNICATION

Identify target audience

Set communications objectives

Design the message

Choose the media

Select message source

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Step 1: Identifying the Target Audience Affects decisions

related to what, how, when, and where message will be said, as well as who will say it

Developing Effective Communication

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Step 2: Determining Communication Objectives Objectives may be set to move buyers

through the six readiness stages

Developing Effective Communication

communication Objectives

AWARENESS

KNOWLEDGE

LIKING

PREFERENCE

CONVICTION

PURCHASE

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Step 3: Designing a Message AIDA framework guides

message design Message content

Rational Emotional appeals: fear,

humor, guilt, shame, love Moral appeals

Developing Effective Communication

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Step 3: Designing a Message Message structure

Draw a conclusion? One-sided or two-sided? Strongest arguments

presented first or last? Message format

Novelty, contrast, and more

Developing Effective Communication

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Step 4: Choosing Media Personal vs. nonpersonal communication

channels

Developing Effective Communication

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Step 4: Choosing Media Personal communication channels

Includes face-to-face, phone, mail, and Internet chat communications

Word-of-mouth influence is often critical Buzz marketing cultivates opinion leaders

Nonpersonal communication channels Includes media, atmosphere, and events

Developing Effective Communication

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Step 5: Selecting the Message Source Highly credible

sources are more persuasive

A poor choice of spokesperson can tarnish a brand

Developing Effective Communication

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Step 6: Collecting Feedback Recognition, recall,

and behavioral measures are assessed

May suggest changes in product/promotion

Developing Effective Communication

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Setting the Total Promotional Budget Affordability Method

Budget is set at a level that a company can afford

Percentage-of-Sales Method Past or forecasted sales may

be used Competitive-Parity Method

Budget matches competitors’ outlays

Setting the Promotional Budget and Mix

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Setting the Total Promotional Budget Objective-and-Task Method

Specific objectives are defined Tasks required to achieve objectives

are determined Costs of performing tasks are

estimated, then summed to create the promotional budget

Setting the Promotional Budget and Mix

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Setting the Overall Promotion Mix Determined by the nature of each promotional

tool and the selected promotion mix strategy

Setting the Promotional Budget and Mix

Revlon emphasizes advertising while Avon emphasizes personal selling

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Setting the Promotional Budget and Mix

Reaches large, geographically dispersed audiences, often with high frequencyLow cost per exposure, though overall costs are highConsumers perceive advertised goods as more legitimateDramatizes company/brandBuilds brand image; may stimulate short-term salesImpersonal; one-way communication

AdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing

Nature of Each Promotional Tool

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Setting the Promotional Budget and Mix

Most effective tool for building buyers’ preferences, convictions, and actions

Personal interaction allows for feedback and adjustments

Relationship-oriented

Buyers are more attentive

Sales force represents a long-term commitment

Most expensive of the promotional tools

AdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing

Nature of Each Promotional Tool

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Setting the Promotional Budget and Mix

May be targeted at the trade or ultimate consumerMakes use of a variety of formats: premiums, coupons, contests, etc.Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging salesStimulates quick responseShort-livedNot effective at building long-term brand preferences

AdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing

Nature of Each Promotional Tool

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Setting the Promotional Budget and Mix

Highly credible

Many forms: news stories, news features, events and sponsorships, etc.

Reaches many prospects missed via other forms of promotion

Dramatizes company or benefits

Often the most underused element in the promotional mix

AdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing

Nature of Each Promotional Tool

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Setting the Promotional Budget and Mix

Many forms: Telephone marketing, direct mail, online marketing, etc.Four characteristics: Nonpublic Immediate Customized Interactive

Well-suited to highly targeted marketing efforts

AdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing

Nature of Each Promotional Tool

Promotion mix strategiesPUSH

PRODUCER

RETAILER/WHOLESALER

CONSUMER

PRODUCER

CONSUMER

RETAILER/WHOLESALER

PULL

PromotionActivity

PromotionActivity

PromotionActivityDemand

Demand

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Promotion Mix Strategies Push strategy: trade promotions and

personal selling efforts push the product through the distribution channels.

Pull strategy: producers use advertising and consumer sales promotions to generate strong consumer demand for products.

Setting the Promotional Budget and Mix