Lesson 9: Intergrated Marketing Communication (IMC)

(chapter 18, 19, 20)

Content

I. Marketing communication tools

II. Develop an IMC program

Objectives

• Define product advertising and institutional advertising.

• Define sales promotion and public relation.• Explain the role of sales promotion and public

relations in Marketing communication program• Explain the nature and scope of personal selling

and sales management in Marketing

Term • Advertising: quảng cáo• Sales promotion: khuyến mãi• Direct marketing: Marketing trực tiếp• Personal selling: Bán hàng cá nhân• Public relation: Quan hệ công chúng• Media/medium: phương tiện• Intergrated Marketing communication: Truyền

thông Marketing tích hợp

• The process of conveying a message to others

Communication

• Encoding: transform idea to symbol• Decoding: transform symbol back to idea• Field of experience: similar understanding sender

and receiver apply to the message• Response: impact of message had on receiver’s

knowledge, attitude and behavior• Feedback: sender’s interpretation of the response• Noise: factors work against effective communication

Elements of communication

Advertising

Sales promotion

Direct Marketing

Personal selling

Communication tools

• Any paid form of nonpersonal communication about an organization, good, service

Advertising

1. Pioneering (informational)

2. Competitve (persuasive)3. Reminder

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Type of advertisement

Product advertiseme

nt

Institutional advertiseme

nt

Pioneering - What a product is?- What it can do?- Where it can be found?

Competitive advertisement

- Promotes a specific brand’s benefit

- Persuade the target market to select the firm’s brand/product

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Reminder advertisement

Reinforce previous knowledge of a product

Media alternatives

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Television

Outdoor

Magazine

Newspaper

Radio

Yellow pages

Internet

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Basic terms

Reach: The number of people or household exposed to an ad

Frequency: average number times a person in the target audience is exposed to an ad

Cost per thousand (CPM – means 1000 in Roman): Cost of reaching 1000 person or household

Rating: percentage of household or people turned to particular TV show or radio station

Gross rating points (GRPs) = reach x frequency

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Media Cost Reach Frequency

TV-VTV3 50.000.000 1.500.000 4

Magazine– Sai gon tiep thi (whole page- colored)

40.000.000 100.000 3

Thanhnien news (whole page-colored)

54.000.000 462.000 7

Radio 2.600.000 215.506 7

Market size 2.500.000 customers

Media alternatives

Tính toán Ratings, CPM, Tần số

Media Rating frequency CPM

TV-VTV3 60% 4 33.333

Magazine– Sai gon tiep thi (whole page- colored) 8% 3 400.000

Thanhnien news (whole page-colored) 18,5% 7 116.883

Radio 8,6% 7 12.064

Market size 2.500.000 customers

TV75%

Newspaper14%

Tạp chí, 8%

Radio1% Online, 0.4%

Others2%

Advertisting expenditure in Vietnam

Source: TNS-2009

TV; 23%

Direct mail; 21%

Internet; 4%

Outdoor; 2%

Newspaper; 17%

Magazine; 6%

Radio; 7%

Other; 20%

Advertising expenditure in the US

• Form of communication that influence the feeling, opinions or beliefs held by stakeholders

PR

• Building goodwill• Promoting goods, service• Building internal communication• Controlling crisis• Doing lobby

Function of PR

• Press release• Press conference/interview• Event sponsorship• Publicity• Company story• Newsletter

Tools of PR

• Face – to – face communication between buyer and seller, designed to influence a person’s or group’s purchase decision

Personal selling

• Choosing target customer• Modifying message• Persuading consumer• Building relationship with consumer• Doing Marketing research

Role of personal selling

• Prospecting• Pre-approach• Approach• Presentation• Close• Follow - up

Personal selling process

• Search qualified prospects by:

Tradeshow, professional meeting, conferences, cold calling

Step 1: Prospecting

• Involves obtaining further information on the prospect and decide the best method to approach.

• Gathering information about: MAN rule (M:money – income, A:authority, N: needs)

Step 2: pre-approach

Handling objection• Acknowledge and convert the objection• Postpone• Agree and neutralize• Denial• Ignore the objection

Step 3: Presentation

• Obtaining purchase commitment from the prospect with 3 techniques:

• Trial close: asking propects to make a decision on some aspects

• Assumptive close: asking prospects to consider choices:delivery, warranty

• Urgency close

Step 4: Close

• Making certain the customer’s purchase has been properly delivered and installed and difficulties experienced with the use of the item are addressed

Step 5: Follow up

• Stimulate trial purchase• Stimulate repeat purchase• Stimulate larger purchase• Introduce a new brand• Disrupt competitor’s strategy

SALES PROMOTION

Slide 19-76

Consumer-Oriented Sales Promotion – elicit an immediate purchase

Sales promotion techniques

Coupons

Price–off deals

Premiums Contests

Sweepstakes

Samples

Loyalty Programs

Rebates

Slide 19-77

FIGURE 19-6 Sales promotion alternatives

SALES PROMOTION

Trade-Oriented Sales Promotion

Allowances and Discounts

Cooperative Advertising

Training of Distributors’ Salesforces

DIRECT MARKETING

Direct communi

cation

Telephone

Catalogs Direct mail

Face to face selling

Online marketing

The value of direct marketing

Direct mail E-mail Catalogs Tele-marketing0

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Business usageResponse rate

Developing an IMC program

Target audience

Promotion objectives

Promotion budget

Promotional tools

Designing the promotion

• How to identify the target audience?

Step 1: Identifying the target audience

Step 2: Specifying promotion objective

Awareness

Interest

Evaluation

Trial Adoption

Step 3: Setting the promotion budget

All you can afford

Percentage of sales

Competitive parity

Objective and task

Step 4: Choosing promotional tools - Integrated Marketing Communications

(IMC)

Slide 18-80

Integrated marketing communications (IMC) is the concept of designing marketing communications programs that coordinate all promotional tools: advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences.

Integrated marketing communications (IMC) is the concept of designing marketing communications programs that coordinate all promotional tools: advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences.

IMC

Advertising

PR

Sales promotion

Personal selling

Direct marketing

Slide 18-23

Factors that influence the use of promotional tools

Slide 18-28

Promotional tools used over the product life cycle

Slide 18-33

How the importance of promotional elements varies during the stages of consumer’s purchase decision

Slide 18-35

A comparison of push and pull promotional strategies

Step 5 & 6: Design and assess promotion program

• “50% ngân sách quảng cáo là ném tiền qua cửa sổ nhưng không biết đó là 50% nào”

Review question

• 1. What is the difference between pioneering and competitive ads?

• 2. What is the purpose of an institutional advertisement?

• 3. What is the difference of personal selling and direct Marketing?

• 4. What are the six stages in the personal selling?

• In terms of the communication process, the _____ for the information in the Visible Lift makeup advertisement is L'Oréal, its manufacturer.

• A)communication channel• B)message• C)decoder• D)source• E)feedback

Quiz 1

• Which of the following is a public relations tool?• A)image management• B)lobbying efforts• C)annual reports• D)publicity• E)all of the above

Quiz 2

• Reminder product and brand advertising is typically used to:

• A)inform the target market.• B)state the position of the advertiser on an issue.• C)persuade the target market.• D)identify the target market.• E)reinforce previous knowledge.

Quiz 3