MAR3023 Module 10 Chapter 17 Integrated Marketing Communications What is Promotion o Encouragement of the progress growth or acceptance of something furtherance o In Marketing one of the 4 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 Marketing Communications o Overall US spending on advertising promotion less than 40 billion in 1980 Will be up to 280 billion in near future o Trends in Advertising promotion spending Has increased due to the huge number of competitors in the market Increase in internet and television expenditures Top advertisers are Proctor Gamble AT T GM Promotion Mix o Traditional Promotion Mix Point of purchase Publicity Sales promotion Special events Public relations Direct marketing Direct response Direct response Packaging Interactive marketing Interactive marketing o Advertising o Personal selling o Public relations o Sales promotion a paid non personal communication about an organization and its products transmitted to a target audience through mass media is a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders 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 Integrated Marketing Communications coordination of promotion and marketing efforts for maximum impact o Goals of IMC Consistent Consistent message to customers Coordinated Coordinate manage promotional efforts to be logically connected Complementary Synchronization to create a greater overall campaign Continuity Use more precisely targeted promotional tools over time o AKA how to sell a diet drink to guys Make the can manly Don t use the word diet Sponsor NASCAR and Game Day Communication Process o 2 General Promo Strategies Push policy Promoting a product only to the next institution down the marketing channel The producer promotes the product to wholesalers the wholesalers promote it to retailers and the retailers promote it to consumers Trade shows and personal selling Push money also known as spiffs o An extra commission paid to retail employees to push products Promoting a product directly to consumers to develop strong demand that pulls products through the marketing channel Children s toys Ford Australia only produces a car when one is ordered by a customer Dell did the same thing Pull Policy o The process that describes the exchange of information between two or more people Messages are sent through channels Letters email in person o Elements in the Communication Process Source has info Encoding info coding process Message development Decoding the message Receiver Feedback Communications channel medium o Company o Salesperson o Celebrities have Q scores Measure of familiarity and liking Considers two factors The source the person or organization that has information to share 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 Some argue that Q is better than Nielsen So id 50 are familiar and 10 list as a favorite then the score is 20 Other Q scores TVQ rates broadcast television programs Cable Q rates cable television programs Dead Q rates the current popularity of deceased celebrities Sports Q rates sports figures Cartoon Q rates cartoon characters video games toys and similar products Brand Attachment Q rates brand and company names Kids Product Q rates children s responses to brand and company names Performer Q rates living celebrities 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 Nike swoosh Mcdonald s M Starbucks logo The Channel how the communication travels from the source to the receiver o Two types 1 Nonpersonal channels no personal contact with consumer 2 Personal channels involves direct contact Print broadcast Direct selling Salespeople WOM Buzz marketing o 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 o Sony Ericsson used undercover marketers to act like tourists for the purpose of promoting its digital camera phone o P G s Tremor company employs 250 000 teens between the ages of 13 19 to promote its products Pantene shampoo Pringles Covergirl cosmetics Tremor also has other customers like 500 000 Moms and charges 1 million per campaign Decoding the process of transforming the message back into thought o The key is for the decoded message to resemble the encoded message o Problems can occur if there is too much o Noise means anything that interferes with or distorts the message o Decoding Gone Wrong Panasonic created a new touchscreen home PC and had licensed Woody Woodpecker as their cartoon spokesperson Just before the huge marketing campaign Panasonic realized its error and pulled the plug o They named their PC Woody o Slogan Touch Woody The Internet Pecker o Even after it was released it was still weird Feedback the final piece of the communications process the receiver s response to the message o Can be difficult to assess o One way to get feedback from objective sources Ad age rates the top 100 ad campaigns Volkswagon s Think Small 1959 campaign was 1 Response Models describe the process that receivers must go through before a desired behavior occurs o Each model has 3 successive stages Cognitive state the thinking stage Where the receiver becomes aware of the message Affective stage the feeling stage Where the receiver forms a liking or preference for the ad object Behavioral stage the doing stage 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 o Attention o Interest o Desire o Action Pricing Fundamentals Understanding Markup o Markup as of cost markup cost o Markup as of selling price markup selling price
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