GLOBAL MARKETING Integrated Marketing Communications

Integrated Marketing Communications (IMC) n Effective marketing requires an integrated communications plan--relying not just on one form of communication, but bringing together a number of different modes in a consistent and complementary way. n Standardization vs. adaptation (localization)

Communication Vehicles n Contrast communication options along two dimensions: –Broadcast vs. interactive (1-way message vs. 2- way message) –Mass vs. addressable/customized

Characteristics of Communication Options Addressable/ customized Mass Broadcast 1-way message 2-way with Time lag 2-way instantaneous Super Bowl Ad Salesperson

Position of Major Communication Vehicles Addressable/ Customized Mass 1-way2-way Media Direct Web Salesperson Radio Newspapers Television Magazines Direct Mail Catalogs Infomercials Telemarketing

Role of Promotions in Integrated Marketing Communications n Promotions are a specific inducement to generate purchase behavior. n Consumer promotions n Trade promotions

Consumer Promotions n Free samples n Price-oriented programs Cents-off coupons Price pacs Cents-off coupons Price pacs Mail-in refunds Bonus pacs Mail-in refunds Bonus pacs Rebates Rebates n Premiums n Tie-ins n Continuity programs n Contest/sweepstakes

Trade Promotions n Slotting allowances n Co-op advertising n Floor planning n Temporary price cuts n Volume discounts n Contests

Rounding out IMC: n Event Marketing Sponsorships n Publicity and Public Relations

Formulating the IMC Program n 6 M’s Model for Communication Planning 1. Market 2. Mission 3. Message 4. Media 5. Money 6. Measurement

1. Market n Analyze the consumer situation in terms of stages in the purchase and consumption process n Response hierarchy models –Cognitive stages –Affective stages –Behavioral stages

Hierarchy Model: AIDA

Hierarchy-of-Effects Model

Innovation-Adoption Model

Communication Model

Customer Response Index n The combination of effects in the customer response hierarchy. n Tool for adjusting communications or other marketing tactics.

Customer Response Index Unaware (37%) Aware (63%) Don’t comprehend (46%) Comprehend (54%) Not interested (23%) Interested (77%) No intentions (32%) Intentions (68%) No Action (10%) Action (90%)

2. Mission n Communication objectives, related to customer response Build Awareness Message Reinforcement Stimulate Action

3. Message n Decisions related to message content, structure, format, and source –What kind of an appeal? –One-sided or two-sided message? –Peripherals –Spokesperson

4. Media n Decisions related to media communication channel/advertising agency n Decisions related to media exposure –Target market reach –Frequency –Advertising effectiveness »GRPs »CPMs

Media Exposure (continued) n Decisions related to message reinforcement –Pulsing –Heavy-up message frequency n Decisions related to use of consumer promotions

5. Money n The optimal marketing communications budget is typically a function of: –The size and heterogeneity of the target audience –Nature of the message –Receptivity of the audience –Amount of clutter

Money (continued) n Some firms use: –% of expected or previous year’s sales –Competitively based benchmark n Spending levels vary greatly across industries and even across firms within the same category

6. Measurement n Plan a mechanism for evaluating the effects of communications efforts. n Critical input to future spending levels, allocation of the budget across media, and specific communication messages.

Global Considerations n Cultural values/traditions n Social and political contexts n Economic environments n Laws/regulations