Chapter 18 Integrated Marketing Communications 10 26 2015 Each element of an integrated marketing communication IMC strategy must have a well defined purpose and support and extend the message delivered by all the other elements Marketers must consider how to communicate the value of a product and or service or more specifically the value proposition to the target market Integrated marketing communications IMC represents the promotion P of the 4Ps Encompasses a variety of communication disciplines advertising personal selling sales promotion public relations direct marketing and online marketing including social media in combination to provide clarity consistency and maximum communicative impact Regards each of the firm s marketing communication elements as part of a whole each offering a different means to connect with the target audience Elements in an IMC strategy The consumer The channel through which the message is communicated The evaluation of the results of the communication Communicating with consumers The sender message originated from the sender who must be clearly identified to the intended audience Transmitter the marketing department or external agency receives the information and transforms it for use Encoding converting the sender s ideas into a message which could be verbal visual or both The most important facet of encoding is not what gets sent but rather what is received Communication channel the medium print broadcast internet etc that carries the message Media chosen must be appropriate to connect itself the sender with the desired recipient Receiver the person who reads hears or sees and processes the information contained in the message or advertisement Decoding the process by which the receiver interprets the sender s message Noise any interference that stems form competing messages a lack of clarity in the message or a flaw in the medium The difference between encoding and decoding Feedback loop allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly Forms customer s purchase complaint or compliment redemption of coupon tweet etc If there is an increase in sales the intended audience received the message How consumers perceive communication the sender has little if any control over what meaning any Receivers decode messages differently individual receiver will take from the message Senders adjust messages according to the medium and receivers traits Different media communicate in different ways o The AIDA Model Generally marketing communications move consumers stepwise through a series of mental stages for which there are several models AIDA model Awareness leads to Interest which leads to Desire which leads to Action At each stage the consumer makes judgments about whether to take the next step in the process Aka the think feel do model because customers have three types of responses Awareness o o o o Interest Desire o Brand awareness refers to a potential customer s ability to recognize or recall that the brand name is a particular type of retailer or product service strength of link between brand name and type of merchandise or service in the minds of customers Aided recall when consumers indicate they know the brand when the name is presented to them Top of mind awareness the highest level of awareness occurs when consumers mention a specific brand name first when they are asked about a product service probably enters the evoked set of brands Once they are aware communication must work to increase his or her interest level o o Marketers ensure interest by including attributes that are of interest to the target audience The goal of the subsequent IMC message should move the consumer from I like it to I want it Action o Lagged effect a delayed response to a marketing communication campaign When consumers don t act immediately after receiving a marketing communication o Measuring the effect of a current campaign becomes more difficult because of the possible lagged response to a previous one Elements of an integrated marketing communication strategy The goal of IMC is to use them in conjunction so that the sum exceeds the total of the individual channels Elements of IMC and the way each contributes to a successful IMC campaign Two axes Passive and interactive from the consumer s perspective Offline and online Advertising entails the placement of announcements and persuasive messages in time or space purchased in any of the mass media by business firms etc Extremely effective for creating awareness of a product or service and generating interest Mass advertising can entice consumers into a conversation with marketers though it does not require action by consumers placing it on the passive end of the spectrum Traditionally advertising has been passive and offline though recently there has been a growth in online advertising and interactive features Advertising must break through the clutter of other messages to reach its intended audience controversy for skinny models Public relations organizational function that manages the firm s communications to achieve a variety of objectives including building and maintaining a positive image handling or heading off unfavorable stories or events and maintaining positive relationships with the media Relatively passive in that customers do not have to take any action to receive it PR supports other promotional efforts by generating free media attention Sales promotions special incentives or excitement building programs that encourage the purchase of a product or service such as coupons rebates contests free samples point of purchase displays These are usually designed in conjunction with other advertising or personal selling Free samples point of purchase displays short term sales Contest and sweepstakes integral to CRM or customer loyalty Personal selling two way flow of communication between a buyer and a seller that is designed to influence the buyer s purchase decision Settings face to face video teleconferencing telephones over the Internet An important component to IMC especially in B2B Cost of communicating directly with the customer is quite high compared with other forms of promotion but it is the best and most efficient way to sell certain products Direct marketing marketing that communicates directly with target customers to generate a response or transaction Has received the greatest increase in aggregate spending recently