1. Functions of Marketing Communications
Inform
Persuade
Remind
Build
relationships

2. Traditional Forms of Communications
Advertising
Sales
Promotion
Special
Events
Marketing
Communications
Public Relations
Sales People

3. Role of IMC
Promotion is communication by marketers that informs, persuades, reminds, and builds relationships with potential buyers of a product to influence an opinion or elicit a response
IMC is a plan for optimal use of the elements of promotion

4. Putting It All Together
Integrated Marketing Communications (IMC) is “a strategic business process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time with consumers, customers, prospects, and other targeted, relevant external and internal audiences.”

5. Communications Model

6. Message Source
Marketers hire celebrities as spokespersons to add excitement to the source of the message

7. An Opportunity to Communicate

8. Control Continuum High Low Advertising Sales Promotion Personal
Selling
Public
Relations
Word of
Mouth
High Low

9. Advertising That Gets Attention

10. Appeals
Personal appeals allow for direct interaction between a company representative and a customer
Mass appeals seek to reach many prospective customers at the same time
New appeals
Guerrilla marketing
Viral marketing
Buzz and hype

11. Skechers
This ad creates a feeling of excitement

12. KitchenAid
Product giveaways can stimulate purchase

13. Advertising
Non-personal communication from an identified sponsor using the mass media can:
convey rich and dynamic images
establish and reinforce brand identity
communicate factual information
remind customer to buy

14. Sales Promotion
Programs that build interest or encourage purchase of a product through the use of an incentive in a specified time period
coupons
contests
rebates
premiums

15. Publicity and Public Relations
Portray an organization and its products positively by influencing the perceptions of various publics
writing press releases
holding special events
conducting and publishing consumer surveys
putting a positive spin on negative news

16. Guerrilla Marketing
Discover gave away orange hats to those celebrating New Year’s Eve at Times Square
The hats got national television coverage as Regis Philbin interviewed participants

17. Buzz versus Hype Buzz Hype Word of Mouth Advertising Grassroots
Corporate
Authentic
Fake
Credibility
Skepticism

18. Yahoo Buzz

19. Characteristics of an IMC Program
Creates a single unified voice
Begins with the customer
Seeks to develop relationships
Involves 2-way communication
Focuses on stakeholders
Generates a continuous stream of communication
Measures results based on actual feedback
Video: Sony’s Metreon facility

20. Ad Space on Blimps
Some promotional components are not integrated with the ad campaign

21. Developing the Promotional Mix

22. Step 1: Identify the Target

23. Step 2: Establish Promotion Objectives
Possible objectives
create awareness
inform the market
create desire
encourage trial
build loyalty

24. Up the Promotional Road

25. Step 3: Determine/Allocate Promotion Budget
Top-down budgeting techniques
percentage-of-sales method
competitive parity
Bottom-up budgeting technique
objective-task method

26. Allocate Budget to Specific Promotion Mix
Organizational factors
Market potential
Market size

27. Push and Pull Strategies
Pull strategies seek to create consumer demand which convinces retailers to carry the product
Push strategies target retailers

28. Step 4: Designing the Promotion Mix
Which elements of promotion will be used?
What message is to be communicated?
Type of appeal?
Structure of appeal?
What communication channels should be employed?
What role will advertising, sales promotion, public relations, and selling play?

29. Effects of Time and the PLC
Introduction phase: push strategy; mix relies heavily on advertising, sales promotions, and public relations
Growth phase: heavy advertising with emphasis on differentiation
Maturity phase: emphasis on sales promotions to encourage brand switching
Decline phase: dramatic reductions in promotional spending

30. Altoids
This campaign made it a hit with young people

31. The AIDA Model
Action
Desire
Interest
Attention

32. Step 5: Evaluate Effectiveness
Is the plan working?
Measure response to sales promotions
Measure brand awareness, recall, and image before and after ad campaign
Analyze and compare sales performances by territory and sales force
Clip articles appearing in media

33. Communications
By using HTML , firms can send customers s that look like their Web sites

34. Database Marketing
Critical to interactive marketers as they seek to track responses to messages and develop a dialogue with customers
Allows the organization to learn customer preferences, fine-tune and test offerings, and build relationships

35. Database Marketing Is interactive Builds relationships
Locates new customers
Stimulates cross-selling
Is measurable
Is trackable