Integrated Marketing Communications IMC A management concept designed to make all aspects of marketing communication work together as a unified PRICE INCENTIVE SALES PROMOTION force Advertising Sales Promotions Public Relations Sales Promotion A direct inducement which offers an extra value or incentive for the product to the sales force distributors or the final consumer with the primary objective of creating an immediate sale Advertising vs Sales Promotion Incentive to behave in a certain way think of it as a legal bribe short term behavior oriented Advertising creates an image over time relies on emotional appeals advertising appeals to the heart sales promotion appeals to the wallet contributes somewhat to profitability adds intangible value to a brand Sales Promotion vs Advertising value to the product Sales Promotion creates immediate action relies on rational appeals contributes greatly to short term profitability adds a tangible Coordinating Promotions awareness before promotion the two tools should speak with one voice they should have the same overall message Behavioral Learning Future behavior is determined by reinforcement accompanying past behavior Promotional tools act as reinforcers along with product performance to increase the probability of repeat purchase ex coupon helps to reinforce the purchase decisions BUT if you do not like the product you re not going to buy it Shaping The process of learning a complex behavior by learning a series of successive approximations of the final behavior you re trying to shape consumer Errors in Implementation Improper fading overuse of promotional incentives people are never going to pay full retail price because they ve never behavior had to pay that much because of coupons Price Oriented Promotional Tools Samples product given to consumer free of charge opportunity to try the product before making a purchase increases credibility Eliminates financial risk eliminates inconvenience Effective when don t have to have all four brand is clearly superior to the competition ex Coke vs Pepsi Product comes in limited varieties Purchase cycle is short ex soft drinks Attitudes or behaviors must be created or changed ex convince men that coke zero isn t going to taste like a diet drink Coupons Certificates presented to a dealer that give the bearer a stated savings on the purchase of a particular product likely users are current users of the product Retains current users not always as loyal as companies want us to be encourages brand switching one brand of greek yogurt over the other Increases in home inventory how much of a product you have in your home Coupon gets you to buy 10 greek yogurts instead of 1 which increases your purchase cycle therefore keeps you from brand switching Money Refunds Rebates Buy a product mail in proof of purchase refund sent at a later date Redemption Problems Delay of reinforcement want to save 50 now instead of getting it later effort required ADDED VALUE SALES PROMOTION Added Value Promotions product is sold at full price consumers get more for their Doesn t reduce price value ratio Premium An extra item offered at a low price or free as an extra incentive to purchase Objectives Encourage brand switching Trade up to larger size Increase repeat purchase Put a long term message in front of the consumer Methods of Distribution In package in store package itself mail online Sweepstakes A game where participants have an equal chance of winning a prize but make no payment to enter increase engagement increase Lottery sweepstakes with a charge to enter illegal in most situations donations from non profit organizations Contest Winners are selected on the basis of the skill of their entry charge to enter Promotions to Retailers More spent than on consumer promotions awareness Objectives Retail objective to push the product vs pull product Maintain or increase distribution Maintain or expand shelf space Preempt competition when you get more someone else is getting less Influence consumer purchase patterns Types of Retail Promotions of the product Contests Sweepstakes Point of Purchase P O P Promotional materials placed at the point of purchase POP Objectives Buying allowances temporary price reductions from manufacturer to retailer done behind the scenes Advertising allowances Co operative Advertising Payments made by the manufacturer to the retailer to fund the retailer s advertising Increase consumer learning Increase purchase behavior impulse purchases Low cost production Implementation Ease of evaluation Good POP for Retailers Monetary incentive Tied to other items Easy to set up PUBLIC RELATIONS PR is not free advertising a management function that formulates and executes a program of action to earn the understanding and goodwill of its publics Differences between advertising PR more control over message Interest Advertising goal is to inform persuade and remind target to buy specific brands or products major advertising cost media time space PR goal Develop understanding goodwill favorable attitudes PR is more credible major PR cost non media less control over message Advertising editorial interest not very important personnel more likely to have a business background PR critical to success personnel more likely to have a journalism background Advertising PR Similarities stimulate interest in a target research based situation analysis specific objectives detailed knowledge of media Reasons to Use PR Relatively inexpensive compared to advertising cuts through advertising clutter noise highly credible opportunity to reach different people and develop new sales leads difficult to reach some publics with advertising Corporate Image Advertising An umbrella category of advertising that if for the benefit of the overall company image rather than for individual products Corporate image advertising relationships to PR share the same objectives as PR goodwill understanding but paid time and space generates control over message media Corporate image Product Advertising differences direction overall image for company not specific products tangibility corporate image is less tangible than product attributes upper management involvement is high Corporate image Product Advertising similarities gain attention involve the audience build credibility get action Types of Corporate Advertising Messages are bettering the world General Image designed to enhance the basic image of the company ex GE their heart monitoring medical
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