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What is Integrated Marketing Communications?

Introduction to Marketing Communications L3


Prepared by: Brian Rutherford

Promotion

Seller

Product Place Price Promotion Value

Integrated Marketing Communications Non-Personal Communications Personal Communications

Executing

Planning

Buyer

Promotion

Seller

Product Place Price Promotion Value

Integrated Marketing Communications

Executing

Planning

Buyer

Objectives

Types of managers Communication Process Promotion What is integrated marketing communications Managing the marketing communication process

Definition

Promotion- is communicating information between seller and potential buyer or others in the channel to influence attitudes and behavior Integrated marketing communications- the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message Personal selling- involves direct spoken communication between sellers and potential customers Mass selling- is communicating with large numbers of potential customers at the same time
(Source: Perreault and McCarthy 382-383 and 386)

Managing the Marketing Communication Process

Types of Managers in the IMC Process Sales managers- are concerned with managing personal selling Advertising managers- manage their companys mass-selling efforts Sales promotion managers- manage their companys sales promotion effort
(Source: Perreault and McCarthy)

Communication Process

Source

Encoding

Message Channel

Decoding

Receiver

Noise

Feedback

Types of Communication
Marketing Product Promotion Place Price

Personal Selling

Public Relations

Advertising

Sales Promotion

Direct Marketing

Managing the Marketing Communication Process

Integrated marketing communications- the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message Five basic features must be included in IMC

1) Start with the customer or prospect 2) Use relevant forms of contact 3) Achieve synergy 4) Build relationships 5) Affect behavior
(Source: Hoffman et al)

Managing the Marketing Communication Process

Eight Steps of Developing Effective Communications


1) Identify the Target Audience 2) Determine the Communication Objectives 3) Design the Message 4) Select the Communication Channels 5) Establish the Communications Budget 6) Deciding on the Marketing Communications Mix

(which promotional tools should be used)

7) Measuring Results 8) Manage Integrated Communications


(Source: Kotler)

Managing the Marketing Communication Process

Identify Target Audience Determine Objectives Design Message Select Channels

Establish Budget Decide on Media Mix

Measure Results Manage (Source: Kolter)

Managing the Marketing Communication Process

Six Primary Steps

1) Selecting target markets 2) Establishing objectives 3) Formulating a positioning strategy

(Design the Message/ Select the Communication Channels)

4) Setting the budget 5) Formulating and implementing message and media strategies

(Deciding on the Marketing Communications Mix) (Measure Results/ Manage Integrated Communications) (Source: Hoffman et al)

6) Evaluating program effectiveness

Managing the Marketing Communication Process

Identify the Target Audience


Company Image

beliefs, ideas, and impressions a person holds regarding the company


(Source: Kotler)

Brand Awareness

whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked
(Source: Hoffman et al)

Brand Recognition Brand Recall

Brand Image

types of associations that come to the consumers mind when contemplating a particular brand
(Source: Hoffman et al)

Managing the Marketing Communication Process

Identify the Target Audience Market segments

are those segments of the market or submarkets that seek similar benefits from product usage, and that shop and buy in similar ways that are different from other market segments and submarkets Consists groups of consumers who are alike based on some characteristics are those market segments whose needs and demands a company seeks to serve and satisfy
(Source: Hoffman et al)

Target markets

Managing the Marketing Communication Process

Determine the Communication Objectives


Hierarchy-of-effects model
Purchase Purchase Intention Attitude Beliefs/Knowledge Awareness Unawareness

Managing the Marketing Communication Process

Determine the Communication Objectives


1) Inform 2) Persuade

3) Remind

(Source: Perreault and McCarthy)

Managing the Marketing Communication Process

Design the Message


AIDA Model

Attention

Hold Interest
Arouse Desire Obtain Action
(Source: Perreault and McCarthy)

Managing the Marketing Communication Process

Design the Message

Message Content/Message Structure- appeal, theme, idea, or unique selling proposition


Rational appeal Moral appeals Emotional appeal

Message Format- layout, wording, quality


Message Source- Who is delivering the message

Principle of congruity- implies that communicators can use their good image to reduce some negative feeling toward a brand but in the process might lose some esteem with the audience
(Source: Kotler)

Managing the Marketing Communication Process

Select the Communication Channels

The communicator should select the most efficient channels to carry the message

Personal communication channels


Non-personal communication channels

(Source: Kotler)

Managing the Marketing Communication Process

Establish the Communications Budget

Top-down-Budgeting- senior management decides how much each subunit receives Bottom-up budgeting- when managers of subunits determine how much is needed to achieve their objectives Most budgeting practices involve a combination of top-down and bottom-up budgeting
(Source: Hoffman et al)

Managing the Marketing Communication Process

Establish the Communications Budget

Affordable Method- what they think they can afford Percentage-of-Sales Method- specified percentage of sales Competitive-Parity Method- achieve share-of-voice parity with competitors Objective-and-Task Method-calls for marketers to develop promotion budgets by defining specific objectives, determining the tasks that must be performed to achieve these objectives, and estimating the costs of performing these tasks
(Source: Kolter)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix


Personal Selling- is person-to-person communication in which a seller informs and educates prospective customers and attempts to influence their purchase choices
(Source: Hoffman et al)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix


Personal Selling

Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows
(Source: Kotler)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix


Advertising- is non-personal communication that is paid for by an identified sponsor, and involves either mass communication via newspapers, magazines, radio, television, and other media or direct-toconsumer communication via direct mail

(Source: Hoffman et al)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix


Advertising

Print and broadcast ads Brochures Billboards Signs Point-of-purchase displays *** Symbols and logos
(Source: Kotler)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix


Public Relations- communication with non-customersincluding labor, public interest groups, stockholders, and the government
(Source: Perreault and McCarthy)

Publicity- like advertising, is non-personal communication to a mass audience, but unlike advertising, publicity is not directly paid for by the company that enjoys the publicity
(Source: Hoffman et al)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix


Public Relations

Press kits Charitable donations Sponsorships Community relations Events


(Source: Kotler)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix


Sales promotion- consists of all marketing activities that attempt to stimulate quick buyer action, or, in other words, attempt to promote immediate sales of a product
(Source: Hoffman et al)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix


Sales Promotion

Contests, games, sweepstakes Sampling Fairs and trade shows Exhibits Coupons Rebates
(Source: Kotler)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix


Direct marketing- direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling
(Source: Perreault and McCarthy)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix


Direct Marketing

Catalogs Mailings Telemarketing*** Electronic Shopping TV Shopping E-mail


(Source: Kotler)

Managing the Marketing Communication Process

Measuring the Communication Results

How is the company doing?

Revenues Expenses

How are consumers responding?

Outcomes

Managing the Marketing Communication Process

Managing the Integrated Marketing Communication process

Pre vs. Post implementation Reevaluate steps one through eight to make sure they are inline as the marketing environment changes Changes in the product life cycle Changes in consumers (adoption process) Push vs. Pull

Product Life Cycle

Market Introduction

Primary demand- demand for the general product idea Not just for the company's own brand
Selective demand-for a companys own brand The main job is to persuade customers to buy and keep buying the companies products Products may require more aggressive personal selling and advertising Strong brands can use reminder-type advertising Promotion decreases to cut costs Promotion may increase to try to slow the cycle down
(Source: Perreault and McCarthy)

Market Growth

Market Maturity

Sales Decline

Product Life Cycle

(Source: Hoffman et al)

Introduction

Growth

Maturity

Decline

Adoption Processes

Innovators- first adaptors

Mobile and have many contacts


Younger, mobile, and creative

Early Adopters-well respected and often are the opinion leaders

Early Majority-avoid risk and wait to other have tried

Contact early adopter opinion leaders, salespeople, and use mass media
Older and less likely to follow opinion leaders and early adopters Very suspicious of new ideas, older, and less educated Low income and social status
(Source: Perreault and McCarthy)

Late Majority- cautious of new ideas

Laggards-prefer to do things the way they have been done in the past

Adoption Process

(Source: Hoffman et al)

34% 34% 16%

2.5% Innovators

13.5% Early Adopters Early Majority Late Majority Laggards

Push vs. Pull Strategies

Push- involves aggressive trade allowances and personal selling efforts to obtain distribution for a new brand through wholesalers and retailers. The brand is pushed through the channel system in the sense that there is a forward thrust from the manufacturer to the trade
(Source: Hoffman et al)

Manufacture

Wholesaler

Retailer

Consumer

Push vs. Pull Strategies

Pull- involves a relatively heavy emphasis on consumer-oriented advertising to encourage consumer demand for a new brand and thereby obtain retail distribution. The brand is pulled through the channel system in the sense that there is a backward tug from the consumer to the retailer
(Source: Hoffman et al)

Manufacture

Wholesaler

Retailer

Consumer