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 decision o Role of promotion To stimulate product demand To build and enhance relationships with customers Indirectly facilitate favorable relationships with interest groups agencies society o Objective of Promotion Stimulate demand encourage product trial identify prospects retain loyal customers facilitate seller support combat competitive promotional efforts reduce sales fluctuations o Promotion Mix use acronym APPS Advertising products transmitted to a target audience through mass media paid non personal communication about an organization and its 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 and persuade them to purchase products in an exchange situation paid personal communication that seeks to inform customers 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 broad set of communication efforts used to create and Public relations 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 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 o Push Pull channel policies The Communication Process o Sender Source Communication transmission of information sharing of meaning o 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 message o Message Development o Media Cross screen engagement Should grab attention excite interest create desire prompt action Majority of media consumption 90 is screen based o Most used multiple screens at the same time especially while watching TV o 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 message o 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 controls o Sender encoding message media What the Firm does not control o 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 IMC o Consistent message to customers o Coordinate promotional efforts o Synchronization of promotional elements o Use more precisely targeted promotional tools Advertising Public Relations and Sales Promotions Advertising 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 Interactivity o Newspaper direct mail magazines Coupons Flyers Classifieds o Sports Like Nascar MMA etc Positioning Statement o Says how you want your target market to envision your product relative to competition SIX point Advertising Strategy 1 Primary purpose 2 Primary benefit 3 Secondary benefit 4 Target audience 5 Audience reaction 6 Company personality Types 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 brands o 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 choice Mobile 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 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 ad It s more effective to be introduced to something 3 4 times Measuring Advertising Advertising Effectiveness o Curiosity o Recognition o Decision Recognition Recall Recognition Do you recognize this ad Unaided recall Type in the sponsor of this ad Aided recall Choose the sponsor of the ad from a list o An audience measurement system designed to assess the size and composition of TV Nielsen Ratings audiences Measuring TV advertising o Rating Households tuned to show total U S Households o Share Households tuned to show U S Households using
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