MK Final Review Guide Chapter 18 19 3 Integrated Marketing Communication IMC Integrated Marketing Communications The concept of designing marketing activities advertising personal selling sales promotion public relations direct marketing and online marketing including social media Represents the Promotion P in the 4 P s Provides clarity consistency and maximizes the communicative impact of advertising 3 elements of IMC consumer channels and evaluation of results Communication Process audience Sender where the message originates and is clearly identifiable to the intended Transmitter receives information from the sender and transforms it for use allows the sender to better express their message product o Encoding converts the sender s ideas into a message verbally or visually Communication Channel the medium that carries the message through print Receiver the person who reads hears or sees and then processes the information broadcast internet contained in the message o Receiver then decodes the message o Noise any interference that stems from competing messages lack of clarity in the message or flaw in the medium o Feedback Loop allows the receiver to communicate with the sender and informs the sender whether the message was received and decoded properly AIDA Model Awareness Interest Desire Action 1 Awareness how the sender gains the attention of the consumer i Aided Recall when consumers indicate they know the brand when the name is presented to them ii Top of Mind Awareness when consumers mention a specific brand name first when they are asked about a product or service 2 Interest when the sender uses communication to increase the interest level of the consumer 3 Desire when the consumer moves from I like it to I want it 4 Action when the consumer acts on their desire and ultimately searches for or purchases the product service i Lagged Effect a delayed response to a marketing communication campaign taking several exposures to an ad before a consumer fully processes the message Elements of an IMC Strategy Advertising entails the placement of announcements and persuasive messages in time or space purchased in any of the mass media by businesses nonprofits government agencies and individuals who seek to inform persuade Most visible component of IMC Public Relations the organizational function that manages the firm s communications to achieve a variety of objects Personal Selling the two way flow of communication between a buyer and a seller that is designed to influence the buyer s purchase decision can be face to face video teleconference telephone or internet Cost of communicating directly with a potential customer can be very high Sales people can add value making it worth the additional expense Direct Marketing marketing that communicates directly with target customers to generate a response or transaction Includes mail catalogs e mail and m commerce Mobile Marketing marketing through wireless handheld devices ads on cell phones Online Marketing marketing on websites blogs and other forms of social media Websites firms use websites to build their brand image and educate customers about their products or services as well as where they can be purchased Blogs contains periodic posts on a common webpage communicates trends special events and allows company to directly respond to consumers comments Social Media media content distributed through social interactions facebook twitter Measuring IMC Success Goals Possible Goals o Increase awareness o Prompting trial o Increase repeat o Increase sales o Customer loyalty specific period of time communication at least once Frequency how often the audience is exposed to a communication within a Reach the percentage of the target population exposed to a specific marketing Gross Rating Points reach multiplied by frequency CMP cost per thousand total cost of an ad total of target customers reached x1000 o Typical CPM falls between 15 150 Setting and Allocating the IMC Budget Objective and Task Method determines the budget required to undertake specific tasks to accomplish communication objectives must first establish a set of objectives and determine which media best reach the target market and the costs Rule of Thumb Methods can be used to set budgets by using prior sales and communication activities to determine the present communication budget Steps of IMC Planning 1 Identify Target Audience research to find out who the target audience is and how to best reach them 2 Set Advertising Objectives specified in an advertising plan which explicitly analyzes the marketing and advertising situation Pull Strategy advertising to consumers getting the consumers to pull the product into the marketing channel by demanding it Push Strategy focusing on wholesalers retailers and salespeople and motivating the seller to highlight the product rather than the products of competitors thus pushing the product to the consumers Advertising Plan a subsection of the firm s overall marketing plan that analyzes the marketing and advertising situation and lays out the plan of action to accomplish goals Informative Advertising used to create and build brand awareness moves the buyer through the buying cycle to a purchase Persuasive Advertising occurs in the growth and early maturity stages of the product attempts to accelerate the market s acceptance of the product or later reposition an established brand Reminder Advertising used to remind or prompt repurchases especially products that have gained market acceptance and are in the maturity stages Focuses of Advertising Product Focused Advertising inform persuade or remind consumers about a specific product or service Institutional Advertisements inform persuade or remind consumers about issues related to places politics or an industry Institutional Issue Public Service Advertisements focus on public welfare generally sponsored by non profit Social marketing the application of marketing principles to a social issue to bring about attitudinal and behavior change among the general public or a specific population segment 3 Determine the Advertising Budget must determine the nature of the market decide how much they can spend on advertising and how much each aspect of advertising is worth 4 Convey the Message letting the consumer know why this product is better than the rest and should be purchased Unique Selling Proposition Value Proposition explaining the unique benefits of a product may give a snapshot of entire