Lecture 2 25 2014 Integrated Marketing Communications EX When KFC introduced the Fiery Grilled Wings and launched a TV campaign to promote the prduct KFC paid two cities to put KFC s logo on fire hydrants in the town to maintain the spicy image Towns used the money to purchase better emergency rescue efforts which showed that KFC wanted to help the community Moving towards PROMOTION Outline What do we mean by IMC Elements of the promotional mix Developing IMC strategy Communications model sources and messages Budgeting Evaluation Integrated Marketing Communications IMC Designing marketing communication programs to coordinate all promotional activities and provide a consistent image across all audiences ALL contact with your product brand conveys information Promotional Mix What you can use to obtain the objectives of the campaign What communication elements should you use to achieve your objectives Traditional Elements commercials o Advertising paid media insertion of any type Newer different elements o Personal selling two way communication between the buyer and seller designed to influence the buyer s purchase car dealer trying to find you the right car o Sales promotion techniques used to boost sakes in the short term of your product coupon rebate contest o Public relations nonpaid activities trying to manage what is out there about the product in the public sphere what the paper says about your product o Direct marketing one way communication to generate a direct response from consumers sending junk mail telemarketing o Sponsorships getting money to be associated with a specific event Nascar sponsors on the racecars Need to have a connection with the brand and event Activation means running other promotions at the same time while sponsoring an event o Ambush marketing unofficial sponsors crash on the event even though they didn t pay for it o Event marketing create your own to attract coverage o Product Placement placing a product into an add free scenario putting Pepsi in the Hangover movie usually the firm pays a fee and exchanges a favor Pepsi would promote people to go see the Hangover Can have product placement in TV Movies and Video Games o Infomercials paid programming to get customer s direct response call today for a two free toothbrushes o Branded entertainment brand is the heart of the entertainment construct something around the brand Chopotle Scare Crow video Characteristics of these mix elements o Different tasks different promotional elements are best suited for product o Consistency all promotions saying the same thing about the product have to get everything to work together o Complementarity how to get elements to work together Key Questions in Developing IMC Strategy What are our objectives How much should we spend What integrated promotion mix should we use to achieve our objectives How should we measure the effectiveness of our campaign Communications Theory Every message starts with a source who is sending the message then encoding turning idea into a message then the Channel how you get the message to the consumer then decoding audience extracts a bigger picture from your message then response impact on audience then feedback from audience 1 Source sender of the message can be marketer controlled personal salespeople impersonal company ads sales promotion or Independent personal word of mouth impersonal Publicity newspapers 2 Company spokesperson is someone highered to handle the message celebrity endorsers Michael Jackson Pepsi commercial 3 Word of mouth WoM consumers to other consumers important when customer actually makes the decision helps companies grow Buzz Angents plant idea of product and talk it up to get WoM up about the product Harnessing WoM Two step flow Company influentials others Blogs Guerrilla marketing stuff you do on the streets to try and get people s attention Homer Simpson escalator Advantages and Disadvantages of buss and guerrilla marketing o Advantage It s more interesting and cheaper to advertise it on the streets o Disadvantages backlash reach a smaller community overall hard to know how many reactions you get How can you track WoM Through feeds What makes a Source Persuasive Credibility Expertise Trustworthiness Attractiveness