Integrated Marketing Communications (IMC)

1. Integrated Marketing Communications (IMC) Chapter 16

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

3. Promotion & Marketing Communications • Promotion: function of informing, persuading, and influencing the consumer’s purchase decision Inform Persuade Remind

4. 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)

5. 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

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

7. 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?)

8. 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)

9. 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!)

10. 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?)

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

12. 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.

13. 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?

14. Promotional Mix

15. 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

16. 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.

17. 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

18. 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)

19. 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

20. 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?)

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

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