Designing and Managing Integrated Marketing Communications
Communication Definition
Marketing communications represent the voice of the company and its brands and are means by which it can establish a dialogue and build relationships with consumers.
Communication can be defined as the sharing of a common thing
Elements in the Communications Process
Marketing Communications Mix
Advertising
Public Relations and Publicity
Sales Force
Direct and Interactive Marketing
Word-of-Mouth
Events and Experiences
Sales Promotion
Promotion
Promotion involves disseminating information
about a product, product line, brand, or
company. It is one of the four key aspects of the
marketing mix.
To generate sales and profits, the benefits of
products have to be communicated to
customers.
In marketing this is commonly known as
“promotions”.
OBJECTIVES FOR PROMOTION
Build awareness.
Create interest.
Provide information.
Stimulate demand.
Reinforce the brand
ADVERTISING
Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor
Advantages The most visible element of the promotional
mix Disadvantages
Actual cost of advertisement is quite high. Since many people receive the message, the
per contact cost is very low.
Advertising Objectives
Persuade
Remind
Inform
Reinforce
Advertising
Messages can be delivered by:
TelevisionRadioNewspapersMagazinesDirect mailOutdoor
advertisementsDirectoriesThe Internet
Alternate Advertising Media
Billboards
Public Spaces
Product Placement
Point of Purchase
Sales Promotion
Short term
Stimulate Sales
Demand-stimulating activity designed to supplement advertising and facilitate personal selling. A variety of short term incentives to encourage trial or purchase of a product or service
Objectives
Product trial
Reward
Increase repurchas
e
Brand switching
Sales Promotion Promotional activities other than advertising,
personal selling, and publicity which stimulate purchases
Sales promotion activities include:
Visual merchandising or displaysCouponsProduct demonstrationsInstant rebatesFree samplesFashion showsContestsNovelty itemsTrade showsExhibits
Public Relations
Monitors attitudes
Five Functions of PR1. Press relations2. Product publicity3. Corporate
communications4. Lobbying5. Counseling
Promote
Protect Image
Direct Marketing The use of consumer-direct (CD)channels to reach and deliver goods and services to customers without using marketing middlemen.
Telemarketing
Interactive TV
Mobile Devices
Web Sites
Direct Mail
Benefits of Direct Marketing
Consumers
Market Demassification
Selective targetingPersonalized messagesMeasure effectiveness
Telemarketing
Attract prospects
Sell to existing customers
Take orders
Answer questions
Inbound
Outbound
Public and Ethical Issues
Irritation
Unfairness
Deception and FraudInvasion of Privacy
Interactive MarketingThe newest and fastest-growing channels for
communicating and selling directly to customers are electronic
Advantages and Disadvantages
Online Communities
Contextual Placement
Measureable
Screen out message
Loss of control
Buzz and Viral Marketing
Buzz Marketing
Viral Marketing
Conveys new relevant brand-related information through unexpected or even outrageous means
another form of word of mouth, or “word of mouse,”
Identify target audience
Determine objectives
Design communicatio
ns
Select channels
Establish budget
Decide on media mix
Measure results
Manage IMC
Steps in Developing Effective Communications
Identify the Target Audience
Potential Buyers
Current Users
Deciders or Influencers
Determine Objectives
Category Needs
Brand Awareness
Brand Purchase Intention
Positive
Negative
Brand Attitude
Design Communications
How to say it?
(Creative Strategy)
What to say?
(Message Strategy)
Who should say it?
(Message source)
Select Channels
Personal Communications
NonPersonal (Mass) Communications
Establish Budget
Affordable Method
Percentage-of-Sales
Competitive-Parity
Objective-and-Task
Marketing Communications Mix
Characteristics
Factors
Measuring
Factors in Setting the Mix
Product Life-Cycle Stage
Buyer-Readiness Stage
Type of Product Market
Measuring Communication Results
Attitudes
FrequencyReach
Awareness
PHYSICAL DISTRIBUTION
Marketing Channels
Sets of interdependent organizations participating in the process of making a product or service available for use or
consumption
Intermediaries
Merchants
Agents
Facilitators
buy, take title to, and resell
negotiate on the producers behalf, but do not take title to the goods.
assist in distribution
Importance of Channels
Push strategy
Pull strategy
Multichannel Marketing (Hybrid)
Sales Force
Internet
Telemarketing
Direct Mail
Role of Marketing Channels
ContactsExperienceSpecializationScale of operation
Facilitators
Merchants
Agents
Channel Functions and FlowsTimePlace Possession
Transportation, communication
Ordering, payment
Forward Flow
Backward Flow
Information, negotiation, finance,
risk taking
By channel level we mean how many intermediaries are there between
the producer and consumer.
Distribution channels are usually of two types, namely zero level
channel or direct marketing channel and indirect marketing channel.
Levels of Channels
Channel Levels
Zero-level (Direct marketing) channel
TelemarketingDirect mail
Door-to-DoorTV selling
Channel Levels – Consumer
Channel Levels – B2B
Apple Computer Marketing Channel Structure: Online Apple Store - Direct Channel
CustomersConsumer
Producer
Apple Computer Marketing Channel Structure: Apple Retail Store - Direct Channel
CustomersConsumer
Producer
Apple Computer Marketing Channel Structure: Ingram Micro/Best Buy - Indirect Channel
CustomersConsumer
Wholesaler
Retailer
Producer
Best Buy
Ingram
Micro
Apple Computer Marketing Channel Structure: MacMall Online/Catalog Sales - Indirect Channel
CustomersConsumer
Retailer
Producer
MacMall
Apple Computer Marketing Channel Structure:CompUSA - Direct Channel/Strategic Channel Alliance
CustomersConsumer
Retailer
Producer
Apple Employees Staff CompUSA
Store-Within-A-Store
CompUSA
Identify Channel Alternatives
Sales Force
DistributorsDirect Mail
Telemarketing
Channel Alternatives• Type of Intermediaries• Number of Intermediaries• Terms and Responsibilities
Number of Intermediaries
Exclusive Distribution
Selective Distribution
Intensive Distribution
Evaluating Channel AlternativesEconomic Criteria
500(Face-to-Face Transaction)
180(Phone Transaction)
250(ATM Transaction)
120(Online Transaction)
Value-Adds vs. Costs of Different Channels
Channel-Management Decisions
Selecting Channel Members
Training and Motivating
Evaluating
Modifying
Conflict, Cooperation & CompetitionChannel Conflict
Channel Coordination
Goal Incompatibility
Unclear roles and rights
Differences in perception dependence on the manufacturer
Managing Channel Conflict
Employee Exchange
Mediation
Dual Compensation
Legal Recourse
The Future of Marketing
Channels for future E & M-Commerce
Text Promotions
M-Commerce
GPS Features
B2B E-Commerce
Pure-Click Firms
