What is Integrated Marketing Communications? Introduction to Marketing Communications L3 Prepared by: Brian Rutherford

Promotion Integrated Marketing Communications Non-Personal Communications Personal Communications Seller Buyer Product Place Price Promotion Value Planning Executing

Promotion Integrated Marketing Communications Product Executing Seller Buyer Product Place Price Promotion Value Planning Executing

Objectives Types of managers Communication Process Promotion What is integrated marketing communications Managing the marketing communication process

Definition Promotion- is communicating information between seller and potential buyer or others in the channel to influence attitudes and behavior Integrated marketing communications- the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message Personal selling- involves direct spoken communication between sellers and potential customers Mass selling- is communicating with large numbers of potential customers at the same time (Source: Perreault and McCarthy 382-383 and 386)

Managing the Marketing Communication Process Types of Managers in the IMC Process Sales managers- are concerned with managing personal selling Advertising managers- manage their company’s mass-selling efforts Sales promotion managers- manage their company’s sales promotion effort (Source: Perreault and McCarthy)

Communication Process Source Encoding Message Channel Decoding Receiver Noise Feedback

Types of Communication Marketing Product Promotion Place Price Public Relations Advertising Personal Selling Sales Promotion Direct Marketing

Managing the Marketing Communication Process Integrated marketing communications- the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message Five basic features must be included in IMC 1) Start with the customer or prospect 2) Use relevant forms of contact 3) Achieve synergy 4) Build relationships 5) Affect behavior (Source: Hoffman et al)

Managing the Marketing Communication Process Eight Steps of Developing Effective Communications 1) Identify the Target Audience 2) Determine the Communication Objectives 3) Design the Message 4) Select the Communication Channels 5) Establish the Communications Budget 6) Deciding on the Marketing Communications Mix (which promotional tools should be used) 7) Measuring Results 8) Manage Integrated Communications (Source: Kotler)

Managing the Marketing Communication Process Identify Target Audience Determine Objectives Design Message Select Channels Establish Budget Decide on Media Mix Measure Results Manage (Source: Kolter)

Managing the Marketing Communication Process Six Primary Steps 1) Selecting target markets 2) Establishing objectives 3) Formulating a positioning strategy (Design the Message/ Select the Communication Channels) 4) Setting the budget 5) Formulating and implementing message and media strategies (Deciding on the Marketing Communications Mix) 6) Evaluating program effectiveness (Measure Results/ Manage Integrated Communications) (Source: Hoffman et al)

Managing the Marketing Communication Process Identify the Target Audience Company Image- beliefs, ideas, and impressions a person holds regarding the company (Source: Kotler) Brand Awareness- whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked (Source: Hoffman et al) Brand Recognition Brand Recall Brand Image- types of associations that come to the consumer’s mind when contemplating a particular brand (Source: Hoffman et al)

Managing the Marketing Communication Process Identify the Target Audience Market segments- are those segments of the market or submarkets that seek similar benefits from product usage, and that shop and buy in similar ways that are different from other market segments and submarkets Consists groups of consumers who are alike based on some characteristics Target markets- are those market segments whose needs and demands a company seeks to serve and satisfy (Source: Hoffman et al)

Managing the Marketing Communication Process Determine the Communication Objectives Hierarchy-of-effects model Purchase Purchase Intention Attitude Beliefs/Knowledge Awareness Unawareness

Managing the Marketing Communication Process Determine the Communication Objectives 1) Inform 2) Persuade 3) Remind (Source: Perreault and McCarthy)

Managing the Marketing Communication Process Design the Message AIDA Model Attention Hold Interest Arouse Desire Obtain Action (Source: Perreault and McCarthy)

Managing the Marketing Communication Process Design the Message Message Content/Message Structure- appeal, theme, idea, or unique selling proposition Rational appeal Moral appeals Emotional appeal Message Format- layout, wording, quality Message Source- Who is delivering the message Principle of congruity- implies that communicators can use their good image to reduce some negative feeling toward a brand but in the process might lose some esteem with the audience (Source: Kotler)

Managing the Marketing Communication Process Select the Communication Channels The communicator should select the most efficient channels to carry the message Personal communication channels Non-personal communication channels (Source: Kotler)

Managing the Marketing Communication Process Establish the Communications Budget Top-down-Budgeting- senior management decides how much each subunit receives Bottom-up budgeting- when managers of subunits determine how much is needed to achieve their objectives Most budgeting practices involve a combination of top-down and bottom-up budgeting (Source: Hoffman et al)

Managing the Marketing Communication Process Establish the Communications Budget Affordable Method- what they think they can afford Percentage-of-Sales Method- specified percentage of sales Competitive-Parity Method- achieve share-of-voice parity with competitors Objective-and-Task Method-calls for marketers to develop promotion budgets by defining specific objectives, determining the tasks that must be performed to achieve these objectives, and estimating the costs of performing these tasks (Source: Kolter)

Managing the Marketing Communication Process Deciding on the Marketing Communications Mix Personal Selling- is person-to-person communication in which a seller informs and educates prospective customers and attempts to influence their purchase choices (Source: Hoffman et al)

Managing the Marketing Communication Process Deciding on the Marketing Communications Mix Personal Selling Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows (Source: Kotler)

Managing the Marketing Communication Process Deciding on the Marketing Communications Mix Advertising- is non-personal communication that is paid for by an identified sponsor, and involves either mass communication via newspapers, magazines, radio, television, and other media or direct-to-consumer communication via direct mail (Source: Hoffman et al)

Managing the Marketing Communication Process Deciding on the Marketing Communications Mix Advertising Print and broadcast ads Brochures Billboards Signs Point-of-purchase displays *** Symbols and logos (Source: Kotler)

Managing the Marketing Communication Process Deciding on the Marketing Communications Mix Public Relations- communication with non-customers—including labor, public interest groups, stockholders, and the government (Source: Perreault and McCarthy) Publicity- like advertising, is non-personal communication to a mass audience, but unlike advertising, publicity is not directly paid for by the company that enjoys the publicity (Source: Hoffman et al)

Managing the Marketing Communication Process Deciding on the Marketing Communications Mix Public Relations Press kits Charitable donations Sponsorships Community relations Events (Source: Kotler)

Managing the Marketing Communication Process Deciding on the Marketing Communications Mix Sales promotion- consists of all marketing activities that attempt to stimulate quick buyer action, or, in other words, attempt to promote immediate sales of a product (Source: Hoffman et al)

Managing the Marketing Communication Process Deciding on the Marketing Communications Mix Sales Promotion Contests, games, sweepstakes Sampling Fairs and trade shows Exhibits Coupons Rebates (Source: Kotler)

Managing the Marketing Communication Process Deciding on the Marketing Communications Mix Direct marketing- direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling (Source: Perreault and McCarthy)

Managing the Marketing Communication Process Deciding on the Marketing Communications Mix Direct Marketing Catalogs Mailings Telemarketing*** Electronic Shopping TV Shopping E-mail (Source: Kotler)

Managing the Marketing Communication Process Measuring the Communication Results How is the company doing? Revenues Expenses How are consumers responding? Outcomes

Managing the Marketing Communication Process Managing the Integrated Marketing Communication process Pre vs. Post implementation Reevaluate steps one through eight to make sure they are inline as the marketing environment changes Changes in the product life cycle Changes in consumers (adoption process) Push vs. Pull

Product Life Cycle Market Introduction Market Growth Market Maturity Primary demand- demand for the general product idea Not just for the company's own brand Market Growth Selective demand-for a company’s own brand The main job is to persuade customers to buy and keep buying the companies products Market Maturity Products may require more aggressive personal selling and advertising Strong brands can use reminder-type advertising Sales Decline Promotion decreases to cut costs Promotion may increase to try to slow the cycle down (Source: Perreault and McCarthy)

Product Life Cycle (Source: Hoffman et al) Introduction Growth Maturity Decline

Adoption Processes Innovators- first adaptors Mobile and have many contacts Early Adopters-well respected and often are the opinion leaders Younger, mobile, and creative Early Majority-avoid risk and wait to other have tried Contact early adopter opinion leaders, salespeople, and use mass media Late Majority- cautious of new ideas Older and less likely to follow opinion leaders and early adopters Laggards-prefer to do things the way they have been done in the past Very suspicious of new ideas, older, and less educated Low income and social status (Source: Perreault and McCarthy)

Adoption Process (Source: Hoffman et al) 34% 16% 34% 13.5% 2.5% Early Adopters Early Majority Late Majority Innovators Laggards

Push vs. Pull Strategies Push- involves aggressive trade allowances and personal selling efforts to obtain distribution for a new brand through wholesalers and retailers. The brand is “pushed” through the channel system in the sense that there is a forward thrust from the manufacturer to the trade (Source: Hoffman et al) Manufacture Wholesaler Retailer Consumer

Push vs. Pull Strategies Pull- involves a relatively heavy emphasis on consumer-oriented advertising to encourage consumer demand for a new brand and thereby obtain retail distribution. The brand is “pulled” through the channel system in the sense that there is a backward tug from the consumer to the retailer (Source: Hoffman et al) Manufacture Wholesaler Retailer Consumer