MKT 327 Introduction to Marketing 1st Edition Lecture 17 Integrated marketing communication (IMC) strategyOutline of Last Lecture A. Successful new product developmentI. Management related factor for product successII. New player in carbonated soft drink market- JONES SODA III. Basic product management decisionsOutline of Current Lecture B. Category ManagementIV. BrandingV. PackagingVI. Marketing CommunicationsVII. Selling tasksVIII. Communication objectivesIX. Communication processX. Steps in IMC planCurrent Lecture1) Category Management i) Purpose(1) To maximize firm’s profits by appropriately: (a) Widening or narrowing product mix(b) Lengthening or shortening product line(c) Increasing consistency with positioning(d) Extending product life cycleii) Value creation(1) Contributes to possession utility by simplifying buying process. Directly contributes to possession utility for FIRM by reducing costs and improving profits2) Brandinga) Value creationThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.i) Directly impacts form utility by building BRAND EQUITY- building upon past physical and psychological product attributes and features that delivered benefits to customers. 3) Packaginga) Purposei) To provide(1) Promotion to consumer(2) Protection for product, and(3) Promotion to dealerb) Value creationi) Contributes to indirectly to form utility through communication. Directly to form utility by providing augmented benefits4) Marketing Communicationsa) Integrated marketing communicationi) Definition(1) Coordination (common targets, meanings, and focus: and creation of multiplier effect) of COMMUNICATION MIX to reach consumers with a POWERFUL EFFECT in the market ii) Role of IMC(1) To define “desired” meanings/understanding to be delivered to potential consumers(2) To provide a context for delivery of desired meanings/understandings(3) To define, assign, and coordinate specific “selling tasks” for each component of the communication mix5) Selling taska) The selling task defines the actions a communication mix element must take, or the specific communication objective it must achieve to help establish the desired product position and create the times, place, form, and/or possession utility to create the necessary value for the customer and CLOSE the sale6) Communication objectivesa) Alternativesi) Provide information(1) Informed decision making logical reason for purchase stimulate awareness/interestii) Create demand(1) Stimulate desire (needs/wants)iii) Communicate value(1) Assessment of benefit/ $$iv) Com. uniqueness(1) Differentiate from others improve attribute ratings change attribute importancev) Close sale(1) Immediate action/ (sale) reinforce decision to buyvi) Build loyalty relationship(1) Remind about experiences, remind about past outcomes(2) Demonstrate concern for satisfaction7) Communication processa) Sourceb) Encodingc) Messaged) Mediae) Decodingf) Receiveri) Elements that flow through out process:(1) Noise(2) Feedback(3) Response 8) Steps in IMC plana) Select target audienceb) Determine communication Objective and select communication mixc) Develop budgetd) Implement e) Measure