Integrated Marketing Communications Session 10 Integrated Marketing Communications Chapter 17-19

Integrated Marketing Communications (IMC) Coordination of promotion and other marketing efforts for maximum informational and persuasive impact. Goals of IMC Consistent message to customers Coordinate/manage promotional efforts Synchronization of promotional elements Use more precisely targeted promotional tools …. Integrated marketing communications (IMC) include: Advertising Publicity & Public Relations Sales promotions Word of mouth (WOM) Personal selling …..

Advertising Is a paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media Reaches large target market and small, precisely defined segment Is cost efficient in reaching large number of consumers

Advertising Appeal Rational approach Emotional approach Depend on logic and speak to the consumer’s intellect; based on the consumer’s need for information Emotional approach Tugs at the heartstrings or uses humor

Rational Approach Emotional Approach Rational approach: DHL-we deliver whatever Emotional approach: Oreo-Father’s Day Emotional Approach

Elements in the Communication Process What could be the problem here?

Example of Ganten Water

Encoding

Decoding

Advertising: Media Strategy Traditional Media Print (Newspapers, magazines) Radio TV Billboards/Outdoor Does the media allow us to reach our targeted audience? Does the media allow us to communicate our message effectively? What is the cost per customer reached?

iPod Outdoor Advertising NYC iPod Outdoor Advertising France Toronto

Pros & Cons of Traditional Media (1) Print (Newspapers, magazines) Pros: Able to present more complex information/messages as consumers can reflect Con: Compete with clutter of ads, Declining readership Radio Pro: Cheaper than Print and TV Con: No Visual Arousal, Radio is a background medium – people are usually doing something else and may not pay attention

Pros & Cons of Traditional Media (2) TV Pro: Able to use Sight, Sound and Motion to convey message Con: Expensive, consumers increasingly switching channels during commercial breaks Billboards/Outdoor Pro: Cheapest among traditional media Con: Very short exposure (consumers driving/walking by)

Media Strategy Non-conventional Media Online (website, social networks) Unique Locations Product Placements Sponsored Search Does the media allow us to reach our targeted audience? Does the media allow us to communicate our message effectively? What is the cost per customer reached?

Online Ads LinkedIn Ads CNN.com Ad Pros: Very targeted audience and highly customizable, cheaper than traditional, pay-per-click model Con: Customers may be interested in something else and may find ads intrusive and irritating (esp. pop-ups)

Product Placements Coke in American Idol Mercedes in Sex & the City Pros: Can be effective because of the indirect approach to advertising (Consumer’s defense mechanism against ads are down). A type of celebrity endorsement. Con: Very expensive

Public Relations – Earned Media Fosters goodwill and understanding Generates favorable publicity Tools include: News releases Media kits Press conferences Articles in trade, professional journals TV and radio talk show appearances Special events Public relations (PR) is the department or function responsible for evaluating public opinion about, and attitudes toward, the organization and its products and brands. Public relations personnel also are responsible for fostering goodwill, understanding, and acceptance among a company’s various constituents and publics. Like advertising, public relations is one of four variables in the promotion mix. One of the tasks of the PR practitioner is to generate favorable publicity. By definition, publicity is communication about a company or product for which the company does not pay.

An Example– Oreo Daily Twist Campaign or event marketing

Sales Promotions Marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation Short-term efforts directed to the consumer to achieve specific objectives Sales promotion tactics include product sampling, coupons, premiums, contests, rebates, slotting fees, frequency programs, customer royalty program cents off, gifts with purchase, in-store demonstration, point-of-purchase (POP), … Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. Cents off, in-store demonstrations, samples, coupons, gifts, product tie-ins, contests, sweepstakes, sponsorship of special events such as concerts and fairs (even donut parades), and point-of-purchase displays are types of sales promotion devices designed to supplement advertising and personal selling in the promotional mix. Sales promotions are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer-product trial or immediate purchase, consumer introduction to the store, gaining retail point-of-purchase displays, encouraging stores to stock the product, and supporting and augmenting advertising and personal sales efforts. An especially effective promotional tool when the product concept is new or has a very small market share is product sampling.

Campaign through Mobile – Coca Cola

Word-of-Mouth (WOM) People-to-people communications that relate to the merits or experiences of purchasing or using products or services Oral Written electronic

Personal Selling A paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation Pros Has greater impact on consumers Provides immediate feedback Cons Is expensive Is labor intensive and time consuming

Discussion: IMC and Product Life Cycle