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Integrated Marketing Communication

1. Definition The Marketing Communications Mix
The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.

2. Integrated Marketing Communications
The Marketing Communications Environment is Changing:
Mass markets have fragmented, causing marketers to shift away from mass marketing
Media fragmentation is increasing
Improvements in information technology are facilitating segmentation

3. Integrated Marketing Communications
The Need for Integrated Marketing Communications
Conflicting messages from different sources or promotional approaches can confuse company or brand images
The problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently

4. Integrated Marketing
Communications

5. Advertising
Paid non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

6. Sales Promotion
Short-term incentives used to encourage the purchase of a product or service
Sales promotion: programs such as contests, coupons, or other incentives used to build interest in or encourage purchase of a product

7. Public Relations
Building good relations with the company’s publics through favorable publicity, a good corporate image, and effective handling of unfavorable news
Public Relations: press releases, sponsorships, damage control

8. Personal Selling
Personal presentation by the sales force used to enhance sales and customer relationships
Personal selling: flexible but high cost per contact

9. Direct Marketing
Gain an immediate response and lasting relationship with targeted consumers
Direct Marketing: Use of direct mail, telephone, direct-response television, , and the Internet to reach carefully targeted customers.

10. Consistent, clear, compelling messages
Need for IMC
ADVERTISING
SELLING
PUBLIC RELATIONS
SALES PROMOTION
DIRECT MARKETING
Consistent, clear, compelling messages
The Need for Integrated Marketing Communications
In the consumer’s mind, advertising messages from different media and different promotional approaches all become part of a single message about the company. Conflicting messages from these different sources can result in confused company images and brand positions.
Companies fail to integrate their various communications channels because communications often come from different company sources. Today, more companies are adopting the concept of integrated marketing communications (IMC).
Under this concept the company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its brands.
IMC builds brand identity and strong customer relationships by tying together all of the company’s messages and images. Brand messages and positioning are coordinated across all communication activities and media.

11. Communication Process
Elements in the
Communication Process

12. DEVELOPING EFFECTIVE COMMUNICATION
Identify target audience
Set communications objectives
Design the message
Choose the media
There are several steps in developing effective communication.
Select message source

13. Developing Effective Communication
Step 1: Identifying the Target Audience
Affects decisions related to what, how, when, and where message will be said, as well as who will say it

14. Developing Effective Communication
Step 2: Determining Communication Objectives
Objectives may be set to move buyers through the six readiness stages

15. communication Objectives
AWARENESS
KNOWLEDGE
LIKING
PREFERENCE
CONVICTION
Determining the Communication Objectives
Once the target audience has been defined, the marketing communicator must decide what response is sought. The marketing communicator needs to know where the target audience now stands and to what stage it needs to be moved. The target audience may be in any of six buyer-readiness stages, the stages consumers normally pass through on their way to making a purchase.
The communicator must first build awareness and knowledge.
Assuming target consumers know about the product, how do they feel about it? These stages include liking (feeling favorable about the product), preference (preferring it to other brands), and conviction (believing that the product is best for them).
Some members of the target market might be convinced about the product, but not quite get around to making the purchase. The communicator must lead these consumers to take the final step. Actions might include offering special promotional prices, rebates, or premiums.
PURCHASE

16. Developing Effective Communication
Step 3: Designing a Message
AIDA framework guides message design
Message content
Rational
Emotional appeals: fear, humor, guilt, shame, love
Moral appeals

17. Developing Effective Communication
Step 3: Designing a Message
Message structure
Draw a conclusion?
One-sided or two-sided?
Strongest arguments presented first or last?
Message format
Novelty, contrast, and more

18. Developing Effective Communication
Step 4: Choosing Media
Personal vs. nonpersonal communication channels

19. Developing Effective Communication
Step 4: Choosing Media
Personal communication channels
Includes face-to-face, phone, mail, and Internet chat communications
Word-of-mouth influence is often critical
Buzz marketing cultivates opinion leaders
Nonpersonal communication channels
Includes media, atmosphere, and events

20. Developing Effective Communication
Step 5: Selecting the Message Source
Highly credible sources are more persuasive
A poor choice of spokesperson can tarnish a brand

21. Developing Effective Communication
Step 6: Collecting Feedback
Recognition, recall, and behavioral measures are assessed
May suggest changes in product/promotion

22. Setting the Promotional Budget and Mix
Setting the Total Promotional Budget
Affordability Method
Budget is set at a level that a company can afford
Percentage-of-Sales Method
Past or forecasted sales may be used
Competitive-Parity Method
Budget matches competitors’ outlays

23. Setting the Promotional Budget and Mix
Setting the Total Promotional Budget
Objective-and-Task Method
Specific objectives are defined
Tasks required to achieve objectives are determined
Costs of performing tasks are estimated, then summed to create the promotional budget

24. Setting the Promotional Budget and Mix
Setting the Overall Promotion Mix
Determined by the nature of each promotional tool and the selected promotion mix strategy
Revlon emphasizes advertising while Avon emphasizes personal selling

25. Setting the Promotional Budget and Mix
Nature of Each Promotional Tool
Reaches large, geographically dispersed audiences, often with high frequency
Low cost per exposure, though overall costs are high
Consumers perceive advertised goods as more legitimate
Dramatizes company/brand
Builds brand image; may stimulate short-term sales
Impersonal; one-way communication
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

26. Setting the Promotional Budget and Mix
Nature of Each Promotional Tool
Most effective tool for building buyers’ preferences, convictions, and actions
Personal interaction allows for feedback and adjustments
Relationship-oriented
Buyers are more attentive
Sales force represents a long-term commitment
Most expensive of the promotional tools
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

27. Setting the Promotional Budget and Mix
Nature of Each Promotional Tool
May be targeted at the trade or ultimate consumer
Makes use of a variety of formats: premiums, coupons, contests, etc.
Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales
Stimulates quick response
Short-lived
Not effective at building long-term brand preferences
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

28. Setting the Promotional Budget and Mix
Nature of Each Promotional Tool
Highly credible
Many forms: news stories, news features, events and sponsorships, etc.
Reaches many prospects missed via other forms of promotion
Dramatizes company or benefits
Often the most underused element in the promotional mix
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

29. Setting the Promotional Budget and Mix
Nature of Each Promotional Tool
Many forms: Telephone marketing, direct mail, online marketing, etc.
Four characteristics:
Nonpublic
Immediate
Customized
Interactive
Well-suited to highly targeted marketing efforts
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

30. Promotion mix strategies
PUSH
PULL
PRODUCER
PRODUCER
Promotion
Activity
Demand
Promotion
Activity
RETAILER/ WHOLESALER
RETAILER/ WHOLESALER
Promotion
Activity
Demand
Companies consider many factors when designing their promotion mix strategies. For example, the importance of different promotion tools varies between consumer and business markets.
Business-to-consumer (B2C) companies usually “pull” more, putting more of their funds into advertising, followed by sales promotion, personal selling, and then public relations.
In contrast, business-to-business (B2B) marketers tend to “push” more, putting more of their funds into personal selling, followed by sales promotion, advertising, and public relations.
CONSUMER
CONSUMER

31. Setting the Promotional Budget and Mix
Promotion Mix Strategies
Push strategy: trade promotions and personal selling efforts push the product through the distribution channels.
Pull strategy: producers use advertising and consumer sales promotions to generate strong consumer demand for products.