1. Integrated Marketing Communications
GLOBAL MARKETING
Integrated Marketing Communications

2. Integrated Marketing Communications (IMC)
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.

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

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

5. Characteristics of Leading Media Advertising
Television
70% expenditures for national coverage.
Average 30 second prime time ad costs about $185,000.
In a typical hour of prime time programming, more than 15 ads will be featured.
Cable stations enable more customization.
Summarize cost with CPM (cost per thousand)
$185,000
10,000,000
x 1000 = $18.50 CPM

6. Television, continued Limitations Ads are viewed as intrusive--zapping
Clutter
Sensory adaptation

7. Leading Media... Newspapers 90% of expenditures for local coverage
Most consumers view newspaper ads as informational.
Limitations:
Relatively weak production quality
Limited life

8. Leading Media Radio Largely local medium
Audiences are well-segmented--able to deliver message to well-defined audience
Relatively low cost
Limitations
Clutter, easy to tune out

9. Leading Media... Magazines
Growing numbers of special interest magazines, enabling increased customization
Deliver strong visual message to well-defined target audience
Longest life of any medium and benefit from pass-along readership

10. Characteristics of Direct Marketing Communications
Infomercials
High-quality, detailed marketing messages
Deliver to well-defined audiences

11. Direct Marketing... Catalogs High-quality
Highly customizable due to database management

12. Direct Marketing... Direct Mail Letter, sales brochure
Includes directions for ordering or requesting information
Highly customizable
Limitations
“junk mail”

13. Direct Marketing... E-mail Offers more opportunity for customization
Quicker exchange of information

14. Direct Marketing Telemarketing Less cost than in-person selling
$5 per call vs. $250 per call
Immediate 2-way nature--caller can customize the message in accord with the message receiver’s initial response
Limitations:
“junk calls”

15. Characteristics of the Web
Opportunity to exchange customized messages and responses instantaneously
“Hyper impulsivity”
Great potential for bringing the marketing system all together

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

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

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

19. Rounding out IMC: Event Marketing Sponsorships
Publicity and Public Relations

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

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

22. Hierarchy Model: AIDA

23. Hierarchy-of-Effects Model

24. Innovation-Adoption Model

25. Communication Model

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

27. Customer Response Index
CRI=% aware x % that comprehend x % that are interested
= .63 x .54 x .77
= .26 or 26%
Action
(90%)
Intentions
(68%)
Interested
(77%)
No Action
(10%)
Comprehend
(54%)
No intentions
(32%)
Aware
(63%)
Not interested (23%)
Don’t comprehend (46%)
Unaware (37%)

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

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

30. 4. Media Decisions related to media communication channel
Decisions related to media exposure
Target market reach
Frequency
Advertising effectiveness
GRPs
CPMs

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

32. 5. Money
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

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

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