Goals of IMC Short term or Long term o o o o o Increasing Awareness Prompting trial Increase repeat Increase sales Customer loyalty IMC Budget Methods Objective and task method Rule of thumb method Objective and task Method determines the budget required to undertake specific tasks to accomplish communication objectives First establish a set of communication objectives Then determine which media best reaches the target market and how much it will cost to run the number and types of communications necessary to achieve the objectives Rule of Thumb Method use prior sales and communication activities to determine the present communication budget Competitive party Percentage of sales Affordable budgeting Competitive parity The communication budget is set so that the firm s share of communication expenses equals its share of the market Percentage of Sales The communication budget is a fixed percentage of forecasted sales Affordable Budgeting Marketers forecast their sales and expenses excluding communication during the budgeting period the different between the forecast sales and expenses plus desired profit is reserved for the communication budget the communication budget is the money available after operating costs and profits have been budgeted Marketing Metrics Frequency Reach Timing CPM Gross Rating Points Web tracking software Frequency How often the audience is exposed to a communication within a specified period of time Reach Describes the percentage of the target population exposed to a specific marketing communication at least once Timing availability of media Cost per Thousand CPM Cost of Ad x 1000 of Reached Target Customers Important when comparing costs of several medias Typical CPMs fall between 15 150 Always calculate a targeted CPM to do this you must determine the percentage of readers in your target market Gross Rating Points GRP Reach x Frequency Web Tracking Software used to access the effectiveness of any web based communication efforts to indicate how much time viewers spend on particular web pages and the number of pages they view Click through tracking measures how many times users click on banner advertisements on websites Online Couponing a promotional web technique in which consumers print a coupon directly from a site and then redeem the coupon in a store Online Referring consumers fill out an interest or order form and are referred to an offline dealer or firm that offers the product or service of interest not mere opinions Commercial Speech Defined as a message with an economic motivation to promote a product or service to persuade someone to purchase o Can only make commercial claims that are fact based o Legal issue with IMC Noncommercial Speech A message that does not have an economic motivation and therefore is fully protected under the first amendment ethical legal issue with IMC Firms can express matters of opinion without needing to offer substantiation for the claim as long as those claims are not designed with an economic motivation o Advertising A paid form of communication delivered through media from an identifiable source about an organization product service or idea designed to persuade the receiver to take some action nor or in the future Advertising plan a subsection of the firm s overall marketing plan that explicitly analyzes the marketing and advertising situation identifies the objectives of the advertising campaign clarifies a specific strategy for accomplishing those objectives and indicates how the firm can determine whether the campaign was successful Pull Strategy The goal is to get consumers to pull the product into the supply chain by demanding it Push Strategy Designed to increase demand by focusing on wholesalers or sales people distributers Objectives of Advertising Inform Persuade Remind Informative Advertising Communicates to create and build brand awareness with the ultimate goal of moving the consumer through the buying cycle to a purchase Persuasive Advertising used to motivate consumers to take action usually occurs in the growth and early maturity stages of the product life cycle when competition is most intense and attempts to accelerate the market s acceptance of the product Reminder Advertising Communication used to remind or prompt repurchases especially for products that have gained market acceptance and are in the maturity stage of their life cycle Focus of Advertisements Product focused Institutional Primary demand PSA Social marketing Product focused advertisements Focus on informing persuading or reminding consumers about a specific product or service Institutional advertisements inform persuade and remind consumers about issues related to places politics an industry or a particular corporation Primary demand Demand for the product category or an entire industry Public Service Advertising PSA focuses on public welfare and generally is sponsored by nonprofit institutions civic groups religious organizations trade associations or political groups Social Marketing The application of marketing principles to a social issue to bring about attitudinal and behavioral change among the general public or a specific population segment o Selective demand demand for a specific brand firm or item Information Appeals help consumers make purchase decisions by offering factual information and strong arguments built around relevant issues that encourage consumers to evaluate the brand favorably on the basis of the key benefits it provides Emotional Appeals aims to satisfy consumers emotional desires rather than their utilitarian needs focusing on feelings about the self Media Planning Refers to the process of evaluating and selecting the media mix that will deliver a clean consistent compelling message to the intended audience frequency of advertising in each medium o Media mix the combination of the media used and the o Media buy the actual purchase of airtime or print pages o Viral Marketing Campaign a campaign that facilitates and encourages people to pass along a marketing message Advertising Schedule specifies the timing and duration of advertising Continuous pulsing and flighting o Continuous runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and require a steady level of persuasive or reminder advertising Flighting refers to an advertising schedule implemented in spurts with periods of heavy advertising followed by periods of no