Integrated Marketing Communication pro mo tion pro mo shun n Encouragement of the progress growth or acceptance of something furtherance 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 decision Integrated Marketing Communication Coordination of promotion and marketing efforts for maximum impact A major goal of IMC is to send a consistent message to customers IMC fosters long term relationships and efficient use of promotional resources Goals of IMC Consistent message to customers Coordinate manage promotional efforts Synchronization of promotional elements Use more precisely targeted promotional tools How would you target guys with diet drinks To stimulate product demand To build and enhance relationships with current and potential customers Indirectly facilitate favorable relationships with interest groups regulatory agencies society o For maximum benefit proper planning implementation and control of communications Make the can manly o Colors design Don t use the word diet Sponsor a NASCAR Role of Promotion Objective of Promotion Stimulate demand Encourage product trial Identify prospects Retain loyal customers Facilitate seller support Combat competitive promotional efforts Reduce sales fluctuations Promotion Mix Advertising is a paid non personal communication about an organization and its products transmitted to a target audience through mass media Personal selling is a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation Public relations is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders Sales promotion is 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 Elements in the Communication Process The Sender AKA Source Company Salesperson Encoding o The person or organization that has information to share o the process of putting words thoughts messages into symbolic form in such a way that they will be understood by the receiver consumer symbols are particularly good for this o Encoding Using Celebrities Q Scores Q stands for quality considers factors Consumers level of familiarity with a name who have heard of her him The number of respondents who indicate that a person program or character is a favorite The score is calculated by dividing the two numbers Example 10 favorite 50 familiar 20 Q Score Average score is 18 Some argue that Q is better than Nielsen Message Development o The Promotional Message Should Grab Excite Create Prompt ATTENTION INTEREST DESIRE ACTION AIDA Media Cross Screen Engagement o Laptops gaming consoles mobile phones o 90 of media interactions screen based 10 non screen o Example 7 out of 10 use second device while watching TV o Each screen offers unique experience o Need multi layered approach with consistent messaging Decoding o The process of transforming the message back into thought The key is for the decoded message to resemble the encoded message Problems can occur if there is too much Noise anything that interferes with or distorts the message o Unintended Decoding 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 realized its error and pulled the plug Why Their Slogan o Touch Woody The Internet Pecker Feedback and Capacity o Feedback is the receiver s response to the message Can be difficult to assess One way to get feedback from objective sources o Channel capacity each communication channel is limited on the volume of information it can effectively handle and is determined by the least efficient component of the communication process What the Firm Controls Sender The firm that has information to share Buy a mac instead of PC competitor Encoding the process of putting together thoughts ideas and information into a symbolic form to communicate a message The characters chosen in the Mac vs PC commercials communicate something Message Mac is cooler than PC Media YouTube What the Firm Cannot Control Decoding receiver assigns meaning to symbols encoded by the sender Response reaction of the receiver after being exposed to the to the message Feedback the part of the receiver s response communicated to the sender Not complete information Noise unplanned static or distortion during the communication process e g competitor action Word of Mouth e WOM Buzz Marketing Passing of information by verbal means especially recommendations In an informal person to person manner rather than by media or advertising NOT EFFECTIVE IN ALL PRODUCT CATEGORIES o Negative word of mouth Sometime feedback doesn t come back to the firm o A satisfied customer will tell 4 or 5 others about a pleasant brand experience An unsatisfied customer will tell 7 to 13 others o It costs 3 to 5 times more to replace than to keep a customer Electronic word of mouth e WOM is communicating about products through websites blogs email or online forums becoming increasingly important Viral marketing is a strategy to get consumers to share a marketer s message often through e mail or online videos in a way that spreads quickly and dramatically Buzz marketing is an attempt to incite publicity and public excitement surrounding a product through a creative event Sometimes refers to socially active consumers hired to create buzz 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 o Pantene shampoo Pringles Covergirl cosmetics o Tremor also has other customers like 500 000 Moms and charges 1 million per campaign Criticisms and Defense Is Promotion Deceptive condemned deceptive promotion Does Promotion Increase Prices o Although some promotion is deceptive or misleading not all promotion should be o Laws government regulation and industry self regulation have helped decrease o Promotion is often blamed for higher prices but if promotion is working to stimulate demand producing and marketing larger quantities can actually help reduce prices
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