EXAM 4 Marketing Communications 12 07 2013 IMC Integrated marketing communications Today is a macro view of marketing communication strategy Promotions Mix Push Pull Communication Process Response Models What is Promotion pro mo tion pro mo shun n Encouragement of the progress growth or acceptance of something furtherance The communication link that allows the firm to get the message to consumers 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 Dave Kurtz Contemporary Marketing You might remember your favorite ad For me it s the Terry Tate Office linebacker ad from Reebok Originally aired during the 2003 Super Bowl o Reebok Commercial Tate tackles them in the office when they do something wrong Reebok hired Terry Tate to manage their office Terry o Full Terry Tate video not for the squeamish Advertising and Promotion Expenditure in Billions of Dollars 2002 1980 0 50 100 150 200 250 300 If you look at the difference in ad spending companies have bought into the idea that ads drive their business competitiveness of markets increase differentiation decreases As a company is selling their product it is the core marketing function U S Advertising U S Sales Promotion Advertising Outside U S Top Advertisers P G typically are the top advertisers AND promoters They have been doing this for years P G is headquartered in Cincinnati P G They have a steady growth rate with a huge array of products Conglomerate to add to their portfolio one of the biggest conglomerates Home cleaning goods Pringles perfumes beauty products etc Promotion Mix Encompasses the way companies reach customers through promotional messages 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 BOGO coupons consumer packaged goods etc APPS Advertising Personal selling Public relations Sales promotion Companies have to think of everything from target market to budget available kind of media they have etc IMC Is the coordination of promotion and marketing efforts for maximum impact coordination to create one voice Taco Bell fans in Boston had a very coordinated promotion if any player stole a base in the 2007 World Series Taco Bell was going to give one taco to every person in America Traditional Promotion Mix IMC takes everything that fits together like a puzzle so consumers understand the consistency of the medium they are interacting with Left Traditional Mix Right IMC Goals of IMC Consistent message to customers Coordinate manage promotional efforts Synchronization of promotional elements Use more precisely targeted promotional tools You are targeting the message to the groups of consumers that you are trying to attract Ex Coke Zero you want to attract the right people o Changed from a pink TAB can to Coke Zero black can more manly packaging design How would you target guys with diet drinks Make the can manly Colors design Don t use the word diet Important to men that it is not girly Sponsor a NASCAR Dominated by men Result a very successful product that is now imitated by Pepsi 2 General Promo Strategies Push policy Promoting a product only to the next institution down the marketing channel o Taking their product and pushing it down the chain The producer promotes the product to wholesalers the wholesalers promote it to retailers and the retailers promote it to consumers o Trade shows companies try to attract wholesalers and retailers ex Market Day in ATL and personal selling o Push money also known as spiffs An extra commission paid to retail employees to push products the manufacturer will give them a percentage of the sale prizes or money that goes towards the product itself Pull policy Promoting a product directly to consumers to develop strong demand that pulls products through the marketing channel o You want consumers to pull the product because they are so excited o Best approach according to Dr Brady Children s toys o Toy manufacturers try to get kids excited about the toy and want them to annoy their parents until they budge o The demand is coming directly from the consumer Ford Australia only produces a car when one is ordered by a customer Dell did the same thing Communication Process The process that describes the exchange of information between two or more people Messages are sent through channels o Channels can be anything from letters email in person Elements in the Communication Process Sender Source Has Information Feedback Decoding NOISE Media Encoding Information Message Development Process Starts at the top with the Sender Source and goes to the right Encode put it in format that can be sent through the channel ex Put the information in an ad Message has to be developed then it has to go through some type of media and then has to be decoded by the customer made sense of it then they go through feedback with the terms of buying it or WOM The Source the person organization that has information to share Company organization itself Salesperson Celebrity have Q scores determines which celebs will command the most to endorse products Lebron s MIA was really upset His Q score took a big dip and now his Q score is back up Q Lebron decided to leave Cleveland for Miami the way he did people outside of Q scores change over time reflection of how popular the athlete is Q score Q stands for quality considers two factors Consumers level of familiarity with a name who have heard of her him Divide favorite by familiarity and you get your Q Score The number of respondents 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 this chart is a little outdated
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