Integrated Marketing Communication (IMC) – fosters long term relationships and efficient use of promotional resources. Major goal of IMC is to send a consistent message to customers.• Promotion – communication between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer’s purchasing decisiono Role of promotion: To stimulate product demand To build and enhance relationships with customers Indirectly facilitate favorable relationships with interest groups, agencies, societyo Objective of Promotion: Stimulate demand, encourage product trial, identify prospects, retain loyal customers, facilitate seller support, combat competitive promotional efforts, reduce sales fluctuationso Promotion Mix (use acronym APPS) Advertising - paid, non-personal communication about an organization and its products transmitted to a target audience through mass media• Cost efficient if it reaches a lot of people, good way of gaining exposure• However, rarely provides feedback, difficult to measure effect on sales, less persuasive than personal selling Personal selling - paid, personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation• Much higher cost per person, but have greater effect on sales and provides immediate feedback• Kinesic communication – is body language• Proxemic communication - when either party varies the physical distance which separates the two parties• Tactile communication – communication through touching Public relations - broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders Sales promotion - activity that acts as a direct inducement offering added value or incentive for the product to resellers, salespeople, or customers (free samples, games, rebates, contests, premiums, coupons, etc.)o Push/Pull channel policies Push – producer promotes the product to the next institution down the marketing channel Pull - the firm promotes directly to consumers with the intention of developing a strong consumer demand for the products• The Communication ProcessCommunication – transmission of information/ sharing of meaningo Sender/Sourceo Encoding - the process of putting words, thoughts, messages into symbolic form in such a way that they will be understood by the receiver/consumer Communication channel – means of carrying a messageo Message Development Should grab attention, excite interest, create desire, prompt actiono Media Cross screen engagement • Majority of media consumption (90%) is screen basedo Most used multiple screens at the same time, especially while watching TVo Need multi-layered approach (phones are the main way advertisers still need to learn to take advantage of)o Decoding – process of transforming the message back into thought Noise – anything that interferes with or distorts the messageo Feedback – receiver’s response to the message Channel capacity – the limit a communication channel has on the volume of information it can handle Word of Mouth – verbal, informal sharing of information• E-WOM: electronic word of mouth (blogs, email, etc. Increasingly important)• Viral Marketing – a way to get consumers to share a marketer’s message, often an email or video that spreads rapidly• Buzz Marketing – attempt to incite publicity and excitement through a creative event• What the Firm controlso Sender, encoding, message media• What the Firm does not controlo Decoding, response, feedback, noise• Traditional Marketing Communication – the many marketing and promotional functions were planned and managed differently (the puzzle pieces that were NOT put together)o IMC is the contemporary approach where the marketing and promotional functions are all connected (integrated). It calls for centralized messaging that requires coordination and all the functions working together. (the puzzle pieces being put together)• Goals of IMCo Consistent message to customerso Coordinate promotional effortso Synchronization of promotional elementso Use more precisely targeted promotional toolsAdvertising, Public Relations, and Sales PromotionsAdvertising: paid form on non-personal communication transmitted through mass media• Effective advertising can influence customers’ purchasing behavior throughout their lifetimes• Advertising Mediums:o Movies, TV, and Video Games Product placement, Mentions, Interactivityo Newspaper, direct mail, magazines Coupons, Flyers, Classifiedso Sports Like Nascar, MMA, etc• Positioning Statement:o Says how you want your target market to envision your product relative to competitionSIX point Advertising Strategy1. Primary purpose2. Primary benefit3. Secondary benefit4. Target audience5. Audience reaction6. Company personalityTypes of Advertising• Product Advertising – promotes uses, features, and benefits of specific products• Pioneer/primary Demand – focuses on a product category (Got Milk?)• Advocacy Advertising – conveys a firms position on a public issue (like We I.D.)• Competitive – points out a brands advantages to competing brandso 3 types: Comparative – compares 2 or more brands on their one or more characteristics Reminder – reminds customers of an established brand’s benefits and characteristics Reinforcement – assures current users they have made the right choiceMobile Ads • First mobile ad in 2000, now accounts for 2% of advertising• Cheaper • Steve Jobs once said “Mobile advertising really sucks”New Frontier in Advertising is Branded Entertainment (advertainment, the David Beckham car video in class, Pepsi’s “Uncle Drew” campaign, advertainment video games, AXE prank, etc)Scheduling Advertising• Continuous – runs steadily throughout year• Flighting – runs in spurts (like for seasonal products—sunscreen, etc.)• Pulsing – a combination. Runs steadily but has bursts at certain times (like Doritos runs all year, but becomes VERY heavy during Super Bowl time)Measuring Advertising• Reach – the PERCENTAGE of consumers in the target audience exposed to a particular ad in a stated period• Frequency – the NUMBER of times these targeted consumers are exposed to the adAdvertising Effectiveness• It’s more effective to be introduced to something 3-4 times o Curiosityo Recognitiono
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