What is Integrated Marketing Communications

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What is Integrated Marketing Communications?

Introduction to Marketing Communications L3Prepared by: Brian Rutherford


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Promotion Integrated

MarketingCommunications

Non-PersonalCommunications

PersonalCommunications

Seller Buyer

ProductPlacePrice

Promotion

Value

P

lanning

Ex

ecuting


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Promotion Integrated

MarketingCommunications

Seller Buyer

Product

PlacePrice

Promotion

Value

P

lanning

Ex

ecuting


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Objectives Types of managers

Communication Process

Promotion

What is integrated marketing communications

Managing the marketing communication process


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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)


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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)


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Communication Process

Source Encoding MessageChannel Decoding Receiver

Feedback

Noise


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Types of Communication

Promotion

Personal Selling AdvertisingPublic Relations

Marketing

Product Place Price

Sales Promotion Direct Marketing


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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)


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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)


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(Source: Kolter)

Identify Target Audience

Determine Objectives

Design Message

Select Channels

Establish Budget

Decide on Media Mix

Measure Results

Manage


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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)

6) Evaluating program effectiveness (Measure Results/ Manage Integrated Communications)



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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)


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Identify the Target Audience

Market segments-

are those segments of the market or submarkets that seek similar benefitsfrom 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

Target markets-

are those market segments whose needs and demands a company seeks toserve and satisfy



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Determine the Communication Objectives

Hierarchy-of-effects model

Purchase

Purchase Intention

Attitude

Beliefs/Knowledge

Awareness

Unawareness


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Determine the Communication Objectives

1) Inform

2) Persuade

3) Remind

(Source: Perreault and McCarthy)


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Design the Message

AIDA Model

Attention

Hold Interest

Arouse Desire

Obtain Action



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Design the Message

Message Content/Message Structure- appeal, theme, idea, or unique sellingproposition

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 imageto reduce some negative feeling toward a brand but in the process might losesome esteem with the audience

(Source: Kotler)


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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)


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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



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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 withcompetitors

Objective-and-Task Method-calls for marketers to develop promotion

budgets by defining specific objectives, determining the tasks that must beperformed to achieve these objectives, and estimating the costs ofperforming these tasks

(Source: Kolter)


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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



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Personal Selling

Sales presentations

Sales meetings

Incentive programs

Samples Fairs and trade shows

(Source: Kotler)


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Advertising- is non-personal communication that is paid for by an

identified sponsor, and involves either mass communication vianewspapers, magazines, radio, television, and other media or direct-to-

consumer communication via direct mail



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Advertising

Print and broadcast ads

Brochures

Billboards

Signs

Point-of-purchase displays *** Symbols and logos

(Source: Kotler)


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Public Relations- communication with non-customersincluding

labor, public interest groups, stockholders, and the government


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)


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Public Relations

Press kits

Charitable donations

Sponsorships

Community relations

Events (Source: Kotler)


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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



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Sales Promotion

Contests, games, sweepstakes

Sampling

Fairs and trade shows

Exhibits

Coupons Rebates

(Source: Kotler)


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Direct marketing- direct communication between a seller and an

individual customer using a promotion method other than face-to-facepersonal selling



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Direct Marketing

Catalogs

Mailings

Telemarketing***

Electronic Shopping

TV Shopping E-mail

(Source: Kotler)


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Measuring the Communication Results

How is the company doing?

Revenues

Expenses

How are consumers responding?

Outcomes


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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


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Product Life Cycle

Market Introduction

Primary demand- demand for the general product idea

Not just for the company's own brand

Market Growth

Selective demand-for a companys own brand The main job is to persuade customers to buy and keep buying the companies

products

Market Maturity

Products may require more aggressive personal selling and advertising

Strong brands can use reminder-type advertising

Sales Decline Promotion decreases to cut costs

Promotion may increase to try to slow the cycle down(Source: Perreault and McCarthy)


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Introduction Growth Maturity Decline

Product Life Cycle (Source: Hoffman et al)


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Adoption Processes

Innovators- first adaptors

Mobile and have many contacts

Early Adopters-well respected and often are the opinion leaders

Younger, mobile, and creative

Early Majority-avoid risk and wait to other have tried

Contact early adopter opinion leaders, salespeople, and use mass media

Late Majority- cautious of new ideas

Older and less likely to follow opinion leaders and early adopters

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

Very suspicious of new ideas, older, and less educated

Low income and social status



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Innovators

EarlyAdopters Laggards

EarlyMajority

LateMajority

Adoption Process (Source: Hoffman et al)

13.5%2.5%

34%

34%

16%


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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


Wholesaler Retailer ConsumerManufacture


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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


Manufacture Wholesaler Retailer Consumer


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