Integrated Marketing Communications

Integrated Marketing Communications

March 23, 2009

Promotion in Marketing

Use communication to influencethe awareness, feelings, beliefs and behaviorof prospective customers

Use communication to influencethe awareness, feelings, beliefs and behaviorof prospective customers

Goals and Tasks of Promotion

Informing Reminding

Persuading

TargetAudience

CHP: 17&18-5

The Changing Communications Environment

Two Factors are Changing the Face of Today’s

Marketing Communications:

Improvements in Information Technology

Has Led to Segmented MarketingMore Narrowcasting

Marketers Have ShiftedAway From Mass

MarketingLess Broadcasting

Mark

et

Fragm

enta

tion L

ed t

o

Media

Fra

gm

en

tati

on

CHP: 17&18-6

The Need for Integrated Marketing Communications

With Integrated Marketing Communications (IMC), the Company

Carefully Integrates and Coordinates Its Many Communications Channels to

Deliver a Clear, Consistent, and Compelling Message About the

Organization and Its Product or Service.

IMC Builds Brands

CHP: 17&18-8

Communication PlatformsAdvertisingPrint and

broadcast adsPackaging insertsMotion picturesBrochures and

bookletsPostersBillboardsPOP displaysLogosVideotapes

Sales PromotionContests, games,

sweepstakesPremiumsSamplingTrade shows,

exhibitsCouponsRebatesEntertainmentContinuity programs

CHP: 17&18-9

Communication PlatformsEvents/

ExperiencesSportsEntertainmentFestivalsArtsCausesFactory toursCompany

museumsStreet activities

Public RelationsPress kitsSpeechesSeminarsAnnual reportsCharitable

donationsPublicationsCommunity

relationsLobbying

CHP: 17&18-10

Communication PlatformsPersonal SellingSales

presentationsSales meetingsIncentive

programsSamplesFairs and trade

shows

Direct MarketingCatalogsMailingsTelemarketingElectronic shoppingTV shoppingFax mailE-mailVoice mail

Strategy that Calls for Spending A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand.

Strategy Selected Depends

on:

Type of Product-Market &

Product Life-Cycle

Stage

Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels.

Promotion Mix Strategies

CHP: 17&18-13

Elements in the Communications Process

To communicate an idea or thought, it needs to be converted into words and pictures. Adidas presents the evolution of its brand thought Impossible is Nothing with a campaign that encourages everyone to take their first step in reaching what seems impossible. Through stories of real people attempting and achieving what once seemed like impossible, Adidas hopes to inspire people to overcome their own hindrances. www.adidas.com

Response Hierarchy Models

Factors that Affect the Promotion Mix

Push–and–Pull Strategies

Nature of the Product

Stage in the ProductLife Cycle

Target Market Characteristics

Type of Buying Decision

Available Funds Rs

CHP: 17&18-18

Steps in Developing Effective Communications

Identify target audience

Determine objectives

Design communications

Select channels

Establish budget

Decide on media mix

Manage IMC

CHP: 17&18-19

Designing the Communications

Message strategyCreative strategyMessage sourcePersonal communication channelsNonpersonal communication channelsIntegration

CHP: 17&18-20

Creative Strategy

Informational and transformational appealsPositive and negative appeals Fear Guilt Shame Humor Love Pride Joy

http://www.ddb.com/

CHP: 17&18-24

The Importance of TaglinesBrand Theme Ad Tagline

Our hamburgers are bigger.

Where’s the Beef?

Our tissue is softer. Please Don’t Squeeze the Charmin.

No hard sell, just a good car.

Drivers Wanted

We don’t rent as many cars, so we have to do more for our customers.

We Try Harder

CHP: 17&18-25

Message Source

Celebrity Characteristics Expertise Trustworthiness Likeability

Personal Communications Channels

Advocate channels

Expert channels

Social channels

CHP: 17&18-27

Nonpersonal Communication Channels

Media

Sales Promotion

Events and Experiences

Public Relations

CHP: 17&18-28

Affordable Based on What the

Company Can Afford

Objective-and-Task Based on Determining

Objectives & Tasks, Then Estimating Costs

Objective-and-Task Based on Determining

Objectives & Tasks, Then Estimating Costs

Percentage of SalesBased on a Certain Percentageof Current or Forecasted Sales

Percentage of SalesBased on a Certain Percentageof Current or Forecasted Sales

Competitive-ParityBased on the Competitor’s

Promotion Budget

Competitive-ParityBased on the Competitor’s

Promotion Budget

One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on

Promotion.

Setting the Total Promotion Budget

CHP: 17&18-29

Advertising Advertising

Personal Selling

Personal Selling

SalesPromotion

SalesPromotion

PublicRelations

PublicRelations

DirectMarketing

DirectMarketing

Reach Many Buyers, Repeat Message Many Times, Impersonal,

Expensive

Reach Many Buyers, Repeat Message Many Times, Impersonal,

Expensive

Personal Interaction, Relationship Building, Most Expensive Promo

Tool

Personal Interaction, Relationship Building, Most Expensive Promo

Tool

Wide Assortment of Tools, Rewards Quick Response, Efforts Short-

Lived

Wide Assortment of Tools, Rewards Quick Response, Efforts Short-

Lived

Very Believable, Dramatize a Company or Product, Underutilized

Very Believable, Dramatize a Company or Product, Underutilized

Nonpublic, Immediate, Customized, InteractiveNonpublic, Immediate, Customized, Interactive

Setting the Promotion Mix

MEDIA / SCHEDULING DECISIONS

Television

Radio

Magazines

Online

Website

Outdoor

Access to the target audience

Cost of reaching the target group(s)

Favorable access to cost

Unfavorable access to cost

Factors Influencing Media Decisions