Marketing 12 Integrated Marketing Communication Integrated Marketing Communication IMC the concept of designing marketing activities advertising personal selling sales promotion public relations electronic media and community building in combination to provide clarity consistency and maximum communication impact across all audiences Represents the promotion of the 4 Ps Each of the different marketing communication elements are Three elements regarded as a part of a whole which offers a different means to connect with the target audience o Consumer o Channel o Evaluation of Results communications to the customer Communicating with Consumers The Communication Process Sender must be clearly identified to the intended audience Transmitter marketing agency develops marketing Encoding converting the sender s ideas into a message Communication Channel the medium that carries the message Receiver the person who reads hears or sees and processes the Decoding the process by which the receiver interprets the Noise any interference that stems from competing messages a print broadcast etc information contained in the message or advertisement sender s message lack of clarity in the message or a flaw in the medium which poses a problem for all communication channels Feedback Loop allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly Hierarchy of Effects 1 Be aware of the products existence 2 Be motivated to give some attention to the product and its benefits 3 Evaluates the benefits of the product and whether or not it is worthy 4 If they buy a good experience may lead to repurchase The AIDA Model Awareness leads to Awareness Interest which leads to Desire which leads to Action Think feel do Model 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 the strength of the link between the brand name and the type of merchandise or service in the minds of customers o Awareness Metrics Aided Recall when consumers indicate they know the Top of mind awareness the highest level of awareness brand when the name is presented to them that occurs when consumers mention a specific brand name first when they are asked about a product or service o Senders first must gain the attention of the consumer o A multichannel approach increases the likelihood the message will be received Interest o Communication must work to increase his or her interest level o Message needs to include attributes that are of interest to the o After the customer is aware they must be persuaded o The customer must want to further investigate the target audience product service Desire Action The Lagged Effect a delayed response to a marketing o Message should move the consumer from I like it to I want it o Purchase communication campaign Total of Impressions Created with Target Market Awareness Size of Target Segment 4 Elements of an IMC Strategy Advertising the placement of announcements and persuasive messages in time or space purchased in any of the mass media by business firms nonprofit organizations government agencies and individuals who seek to inform or persuade members of a particular target market or audience about their products services organizations or ideas o Extremely effective for creating awareness of a product or o Must break through the clutter of other messages to reach its Personal Selling the two way flow of communication between a service and generating interest intended audience buyer and a seller that is designed to influence the buyer s purchase decision o Face to face o Video teleconferencing o Phone o Internet o High cost compared to other forms of promotion o Most efficient way to sell certain products services Sales promotions special incentives or excitement building programs that encourage the purchase of a product or service o Coupons o Rebates o Contests o Free Samples o Point of Purchase Displays o Used in conjunction with other advertising or personal selling Direct Marketing marketing that communicates directly with target customers to generate a response or transaction o Allows for personalization of the message o Win win situation for customers and firms because the customer s needs are addressed efficiently and firms are able to gather large amounts of data about customers programs o Telephone o Mail o Program length television commercials or infomercials o Catalogs o Internet based initiatives M commerce Mobile Commerce involves communicating with and even selling to customers through wireless handheld devices Public Relations the 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 Electronic Media o Websites where they can be purchased Build brand image Educates customers about their products or services and Sell direct to consumers Can creates positive word of mouth by connecting to o Corporate Blogs customers by forming a community and increase sales by responding directly to customers comments and develop a long term relationship with the company o Social Shopping a communication channel in which consumers use the Internet to engage in the shopping process by exchanging preferences thoughts and opinions among friends family and others Many firms encourage customers to post reviews of products they have bought or used and have visitors rate the quality of the reviews o Online Games o Community Building Offer an opportunity for customers with similar interests to learn about products and services that support their hobbies and share information with others Understand the outcome they hope to achieve before they begin Goals Short term or Long term o Increasing Awareness o Prompting trial o Increase repeat o Increase sales o Customer loyalty IMC Budget o Objective and task Method determines the budget required to undertake specific tasks to accomplish communication objectives Should be explicitly defined and measured 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 o Rule of Thumb Method use prior sales and communication activities to determine the