MAR3023 EXAM 4 REVIEWIntegrated Marketing Communications (IMC)Marketing Communications-Promotions Mix-IMC-Push/Pull strategies-Communication Process-Response ModelWhat is Promotion?-Promotion: encouragement of the progress, growth, or acceptance of something; furtherance (advancement/development)In Marketing: Promotion-One of the four elements of the marketing mix-The communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer’s purchasing decisionMarketing Communications-You might remember your favorite ad-Dr. Brady’s favorite Terry Tate Reebok Commercial (‘03 Super Bowl)Advertising & Promotion-Companies have bought into the idea of understanding that advertising really drives a lot of their business-Advertising becomes more and more important as competitiveness increases in each market, and as differentiation decreasesTop Advertisers:-Proctor & Gamble (P&G) HQ in Cincinnati-Own a lot of different products (variety)…diversify their portfolio = steady growth ratePromotion Mix : [know elements (APPS, and be able to identify examples of each…graph below]-Advertising: a paid, non-personal communication about an organization and its products transmitted to a target audience through mass media.-Personal Selling: a paid, personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation.-Public Relations: a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders.-Sales Promotion: an activity or material that acts as a direct inducement offering added value or incentive for the product to resellers, salespeople, or customers; free samples, games, rebates, sweepstakes, contests, premiums, and coupons.-Determine how to allocate promotion mix How to get message to consumersIntegrated Marketing Communications:-Coordination of promotion and marketing efforts for maximum impact-Focused on delivering one message to consumersTraditional Promotion Mix:-Media advertising, publicity, sales promotion, packaging, direct response, interactive marketing, direct marketing, public relations, special events, point of purchase-Separate in ways that were counterproductive for the messages they were delivering to consumersIntegrated Marketing Communications (IMC) puts themin a way that is coordinated – so that they fit neatlytogether -So the message is consistent Goals of IMC:-Consistent message to customers-Coordinate/manage promotional efforts-Synchronization of promotional elements-Use more precisely targeted promotional toolsExample of Integrated Communications:-How would you target guys with diet drinks?-Make the can “manly”-Black can, colors/design that fit what men are looking for-Don’t use the word “diet”-Sponsor NASCAR2 General Promotion Strategies:Push Policy: promoting a product only to the next institution down the marketing channel pushing it down the distribution channel-The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers-Trade shows and personal selling-Push money: also known as “spiffs” – an extra commission paid to retail employees to push productsPull Policy: promoting a product directly to consumers to develop strong demand that pulls products through the marketing channel-Ex. children’s toys get kids excited about the toys they are selling-Parent seeks out product; demand comes from consumer-Ford Australia only produces a car when a customer orders one; Dell did the same thingCommunication Process : [Be familiar with how process works]-The process that describes the exchange of informationbetween two or more people-Messages are sent through channels (letters,emails, in person, etc)Elements in the Communication Process: -Starts at the top with Sender/Source, and goesclockwise The Source:-The Source: the person/organization that hasinformation to share-Company-Salesperson-Celebrity – have “Q-scores”-Which celebrities will command the most $ to endorse a product-Q-Scores change over time; show how popular celebrity isQ Scores:-Q (quality) score considers two factors:-Consumers level of familiarity with a name - % who have heard of them-The number of responses who indicate that a person, program, or character is a favorite-The score is calculated by dividing the two numbers-Some argue that Q is better than Nielsen-So if 50% are familiar and 10% list as a favorite, then the score is 20-The average is 18-Companies want to make sure a celebrity has a high Q-score Encoding:-Encoding: the process of putting words, thoughts, messages into symbolic form in such a way that they will be understood by the receiver/consumers-Symbols are particularly good at this-ex. Starbucks, McDonalds, Nike swooshThe Channel:-The Channel: how the communication travels from the source to the receiverTwo types:1. Nonpersonal channels: no personal contact with consumer-Print, broadcast2. Personal channels: involves direct contact-Direct selling, salespeople, word of mouth, “buzz marketing”Survey respondents who say they…. daily56.1% watch television53.3% use the Internet34.3% listen to the radio33.5% read print newspapers5.8% read print magazinesBuzz Marketing:-Buzz Marketing: a subset of “viral marketing” wherein companies hire socially active consumers to promote products to their friends, relatives, and acquaintances-Consumers are typically unaware that the person is on the “payroll”-Sony Ericsson used undercover marketers to act like tourists for the purpose of promoting its digital camera phone-P&G’s Tremor company employs 250,000 teens between the ages of 13-19 to promote its products-Pantene shampoo, Pringles, Covergirl cosmetics-Tremor also has other customers (like 500,000 Moms) and charges $1 million per campaign)Decoding:-Decoding: the process of transforming the message back into thought -The key is for the decoded message to resemble the encoded message-Make sure customers understand the intended message -Problems can occur if there is too much noise-Noise: anything that interferes with or distorts the messageDecoding Gone Wrong:-Panasonic created a new web browser and had received license to use the cartoon character Woody Woodpecker as an interactive internet guide-The day before the huge marketing campaign, Panasonic
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