Chapter 8 Integrated marketing communicationsIntegrated marketing communications- the concept of designing marketing activities- advertising, personal seeling, sales promotion, and public relations—to provide a consistent message across all audiences is referred to as integrated marketing communication (IMC)Goals to accomplish with strategic marketing communication effortsCreate awarenessWe cant purchase a product if were not aware of itImportant for new products and brands in order to stimulate trial purchasesBuild positive imagePositive images can create value for customers by adding meaning to productsIdentify prospectsBecoming increasingly more important because modern technology makes information gathering much more practicalBuild channel relationshipsTry to help everyone from production channel prosperRetain customersIt costs more to attract a new customer than to retain an existing oneSales people and websites play an important role in retaining customersThe promotion mixThe promotion mix concept refers to the combination and types of nonpersonal and personal communication the organization puts forth during a specified period5 elements of the promotion mixnon personal formsadvertisingpaid form of non personal communication about an organization, its products, or activities that is transmitted through a mass mediumcould be: television, radio, newspapers, internet, magazines, outdoor displays, car cards, or directoriessales promotionshort term inducement of value to arouse interest (e.g. coupons, samples, contests)could be: a coupon, sweepstakes, refund, or displaypublic relationscommunication management that seeks to influence stakeholders (e.g. publicity, lobbying)popular formspublicity-non paid form of nonpersonal communication about an organization and its products that is transmitted through a mass medium in the form of a news storydirect marketinguses direct forms of communication with customersdirect mail, online marketing, catalogs, telemarketing, and direct response advertisingsimilar to personal selling it may consist of an interactive dialog between the marketer and the customerpersonal formspersonal selling2 way personal (eg face to face communication)most effective promotional toolmost costlyinteraction makes it successfulIf the product is a new soft drink, promotion effort is likely to rely more on advertising, sales promotion and public relationsIf the product is more established the promositon mix will likely contain short run incentives (sales promotions) for people to buy the product immediatelyIf the product is a new complex technology that requires a great deal of explanation the promotional mix will likely focus heavily on personal selling3 basic factors when devising promotional mix1.) the role of promotion in the overall marketing mix2.) the nature of the product3.) the nature of the marketIntegrated marketing communicationsHas evolved in recent yearsProcess of buyers1.) awareness of the product or service2.) comprehension of what it can do and its important features3.) conviction that it has value for them4.) ordering2 factors that hinder implementation of IMCinternal “turf” battles within organizationsreluctance of some advertising agencies to willingly broaden their role beyond advertisingADVERTISING : Planning and strategyAdvertising seeks to promote the sellers product by means of printed and electronic mediaObjectives of advertisingObjectives of advertising can be assigned that focus of creatingAwarenessAiding comprehensionDeveloping convictionEncouraging orderingThe ultimate objective of the business advertisers is to makesales and profitsAdvertising decisionsMarketing managers must make 2 key decisions1. Determine the size of the advertising budget2. How the advertising budget should be allocatedThe expenditure questionFirms determine how much to spend on advertising by one of the following methodsPercent of salesPopular in retailMost popular and simpleThe firm takes a percentage figure and applies it to either past or future salesJustified by:1.) advertising is needed to generate sales2.) a number of cents out of each dollar of sales should be devoted to advertising in order to generate needed sales3.) the percentage is easily adjusted and can be readily understood by other executivesper unit expenditurea fixed monetary amount is spent on advertising for each unit of product expected to be soldpopular with high priced merchandise such as automobiles or appliancesattempts to determine the retail price by using production costs as a baseproblem with this approach is that they view advertising as a function of sales rather than sales as a function of advertisingall you can affordthe advertising budget is established as a predetermined share of profits or financial resourcesadvantage: it sets reasonable limits on the expenditure for advertisingundesirable because there is no necessary connection between liquidity and advertising opportunityany firm that limits its advertising outlays to the amount of available funds will probably miss opportunities for increasing sales and profitscompetitive parityoften used in conjunction with other approachesadvertising budgets are based on those of competitors or other members of the industryfollowership techniquethe research approachthe advertising budget is argued for and presented on the basis of research findingsmore expensive than other models it is far more rational approach to the expenditure decisionthe task approachwell planned advertising programs usually make use of this approachformulates the advertising goals and defined the tasks to accomplish these goalsoften in conjunction with the research approachThe Allocation questionThis question deals with the problem of deciding on the most effective way of spending advertising dollarsA successful ad campaign can has 2 related tasks1.) say the right things in the ads themselves2.) use the appropriate media in the right amounts at the right time to reach the target marketmessage strategyto be effective the advertising message should meet 2 general criteria1.) it should take into account the basic principles of communication2.) it should be predicated upon a good theory of consumer motivation and behavior3 elements of basic communication process1. The sender or source of the communication2. The communication or message3.the receiver or audienceencoding- translating the product ideas or marketing message into an effective adthe goal of encoding is to