Ch 17 Integrate Marketing Communications IMC Promotion encouragement of the progress growth or acceptance of something In marketing The communication link between sellers and buyers for the purpose of influencing informing and persuading a potential buyers purchasing decision Advertising Promotion Most popular method is television steady upward trend Print Ads newspapers on a downward trend Outdoor has been unchanged Internet is growing quickest and fastest Proctor and Gamble P G advertises the most They have a lot of different brands From crest to tampax to Lacoste to covergirl Brands that advertise the most 1 AT T 2 Verizon 3 Chevrolet 4 McDonalds 5 Geico 6 Toyota 7 Ford Promotion Mix APPS Advertising paid non personal communication about an organization and its products transmitted to a target audience through mass media Personal Selling a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation Public Relations a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders Sales Promotion 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 o Companies spend MORE on sales promotion than advertising Integrated Marketing Communications coordination of promotion and marketing efforts for maximum impact Goals of IMC Consistent message to customers Coordinate manage promotional efforts Synchronization of promotional elements Use more precisely targeted promotional tools 2 General Promo Strategies Push Policy channel o Promoting a product only to the next institution down the marketing o The producer promoted the product to wholesalers the wholesalers promote it to the retailers the retailers promote it to the customers Trade shows and personal selling Push Money Spiffs an extra commission paid to retail employees to push products o Promoting a product directly to consumers to develop strong demand that pulls products through the marketing channel o Get consumers excited about the product Children s toy s Ford Australia only produces a car when one s ordered by a customer Dell did the same thing Pull Policy Diff is in origin of demand Communication Process the process that describes the exchange of information between two or more people Messages are sent through channels o Letter email in person o Sender Source has info Encoding information Message Development o Noise anything that interferes or distorts the message that makes it hard to Media Decoding Feedback understand what s going on The Source the person organization that has the information to share o Company salesperson Celebrity Celebrity has a Q Score terms of how attractive they are in selling particular products Q Score Q stands for Quality considers 2 factors 1 Consumers level of familiarity with a name who have heard of her him 2 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 ratings how advertising costs are set Ex 50 familiar 10 list as favorite the Q Score is 20 People with highest Q Scores are the one who demand the most money for endorsements Other Q Scores TVQ rates broadcast television programs Cable Q rates cable TV programs Performer Q rates living celebrities Dead Q rates the current popularity of deceases celebrities Cartoon Q rates cartoon characters video games toys etc Brand Attachment Q rates brand and company names Kids Product Q rates children s responses to brand and Sports Q rates sports figures company names Encoding the process of putting words thoughts messages into symbolic form in such a way that they will be understood by the receiver consumer o Symbols are particularly good for this The Channel how the communication travels from source to the receivers o Two types 1 Nonpersonal Channels no personal contact with consumer Print broadcast 2 Personal Channels involves direct contact Direct selling Salespeople Word of Mouth WOM Buzz Marketing o 56 of respondents say they watch TV daily o 53 use internet daily o 5 8 read print mags o Buzz Marketing a subset of viral marketing wherein companies hire socially active consumers to promote products to their friends relatives and acquaintances Consumers are typically unaware that the person is on the payroll Ex Sony Ericsson used under cover marketers to act like tourists for Decoding the process of transforming the message back into thought the purpose of promoting its digital camera phone o The key is for the decoded message to resemble the encoded message o Problems occur if there is too much NOISE Ex Panasonic created a new web browser using a cartoon character Feedback the receivers response to the message Woody the woodpecker o Can be difficult to assess o One way to get feedback from objective sources o Ad Age rates the top 100 campaigns Volkswagon s Think Small 1959 campaign 1 Response Models describe the process that receivers must go through before a desired behavior occurs 1 Cognitive Stage the thinking stage a Where the receiver becomes aware of the message 2 Affective Stage the feeling stage a Where the receiver forms a liking or preference for the ad object 3 Behavioral Stage the doing stage a Where the receiver acts on the preference AIDA Model developed for personal selling represents the stages a salesperson must take a customer through to induce purchase Attention Interest Desire Action Chapter 18 Advertising PR Advertising A paid form of non personal communication that is transmitted to a target audience through mass media Effective advertising can influence customers purchasing behavior throughout their lifetimes Most organizations even nonprofits engage in advertising o Coca Cola was the first advertisement The typical person sees 3 000 ads a day Advertising Mediums Movies TV and Video Gams o Product Placement o Mentions o Interactivity Newspaper direct mail magazines o Coupons o Flyers o Classified Ads Sports Soccer Nascar Volleyball Types of Advertising Product Advertising Promotes the uses features and benefits of specific product Pioneer primary demand focuses on a product category Advocacy Advertising conveys a firm s position on a public issue o Got Milk o Ex Tide Free Tibet Competitive Advertising
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