IMC

Marketing Communications

 Marketer initiated techniques used to set up channels

of information and persuasion with targeted audiences
to influence attitudes and behavior
“Promotion”
 Message and Media

 The means by which firms attempt to inform,

persuade, and remind consumers, directly or
indirectly, about the products and brands they sell.
The Changing Communications
Environment
 The Changing
Communications
Environment
Marketers Have Shifted
Away From Mass

Market Fragmentation Led to

Marketing
Less Broadcasting

Media Fragmentation
Two Factors
are Changing the Face of Today’s
Marketing Communications:

Improvements in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting
MAJOR OBJECTIVES OF
MARKETING
COMMUNICATIONS

Informing
Informing Persuading
Persuading

Reminding
Reminding
 The Need for Integrated
Marketing Communications

With Integrated Marketing

Communications (IMC), the Company
Carefully Integrates and Coordinates
Its Many Communications Channels
to Deliver a Clear, Consistent, and
Compelling Message About the
Organization and Its Product or
Service
 MARKETING COMMUNICATIONS
OBJECTIVES
 Increase Market Penetration
 Develop Repeat Purchase Behavior
 Establish Customer Relationships
 Increase Rate of Consumption
 Encourage Product Trial
 Stimulate Impulse Buying
 Stimulate Demand
 Differentiate the Product
 Establish a Product Image
 Influence Sales Volume
 Establish, Modify, or Reinforce Attitudes
 Develop Sales Leads
 Stimulate Interest
 Establish Understanding
 Build Support & Acceptance
IMC Builds Brands
 ELEMENTS OF THE
MARKETING COMMUNICATIONS
MIX

1.
1. Advertising
Advertising

5.
5. Direct
Direct Marketing
Marketing 2.
2. Public
Public Relations
Relations

3.
3. Sales
Sales
4.
4. Personal
Personal Selling
Selling Promotion
Promotion
 Push and Pull Strategies
 Push
strategy is directed toward the
channel members
Provide incentives for those in the
distribution channels to buy the product
 Pullstrategy is directed toward the
ultimate purchaser
The focus is on creating demand at the
household or ultimate consumer level
 Communication Platforms
Advertising Sales Promotion
 Print and broadcast ads  Contests, games,
 Packaging inserts
sweepstakes
 Motion pictures
 Premiums
 Brochures and booklets
 Sampling
 Posters
 Trade shows, exhibits
 Billboards
 POP displays  Coupons
 Logos  Rebates
 Videotapes  Entertainment
 Continuity programs
 Communication Platforms
Personal Selling Direct Marketing
 Sales presentations  Catalogs
 Sales meetings  Mailings
 Incentive programs  Telemarketing
 Samples  Electronic shopping
 Fairs and trade shows  TV shopping
 Fax mail
 E-mail
 Voice mail
 Communication Platforms
Events/ Experiences Public Relations
 Sports  Press kits
 Entertainment  Speeches
 Festivals  Seminars
 Arts  Annual reports
 Causes  Charitable donations
 Factory tours  Publications
 Company museums  Community relations
 Street activities  Lobbying
Promotion Mix Strategies

Strategy
Selected
Strategy that Depends Strategy that
Calls for on: Calls for Using
Spending A
Type of the Salesforce
Lot on
Product- and Trade
Advertising
Market & Promotion to
and Push the
Consumer Product Product
Promotion to Life-Cycle Through the
Build Up Stage Channels.
(Pull)
Consumer
Elements in the Communications
Process
The Communications Process

Selective attention

Selective distortion

Selective retention
Steps in Developing Effective
Communications
Identify target audience
Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Manage IMC
Communications Objectives

Category Need

Brand Awareness

Brand Attitude

Purchase Intention
 Designing the Communications
 Message strategy
 Creative strategy
 Message source
 Personal
communication
channels
 Nonpersonal
communication
channels
 Integration
 Creative Strategy
 Informational and transformational
appeals
 Positive and negative appeals
 Fear
 Guilt
 Shame
 Humor
 Love
 Pride
 Joy
 The Importance of Taglines
Brand Theme Ad Tagline
Our hamburgers are Where’s the Beef?
bigger.
Our tissue is softer. Please Don’t Squeeze
the Charmin.
No hard sell, just a Drivers Wanted
good car.
We don’t rent as many We Try Harder
cars, so we have to do
more for our
customers.
Message Source

Celebrity
Characteristics
 Expertise
 Trustworthiness
 Likeability
Personal Communications
Channels

Advocate channels

Expert channels

Social channels
Nonpersonal Communication
Channels

Media

Sales Promotion

Events and Experiences

Public Relations
 Psychological Processes

 The high involvement decision process

Need -> search -> evaluation -> purchase -> outcomes
 The adoption process
Awareness -> interest -> evaluation -> trial -> adoption -> post-adoption
confirmation
 Buyer readiness states/Hierarchy of effects
Awareness -> knowledge -> liking -> preference -> conviction -> purchase
 AIDA
Awareness -> Interest -> Desire -> Action
 Selection of the Promotional
Mix
 PRODUCT CHARACTERISTICS
 Industrialgood/technical good
Need personal selling; customers want to receive
information, inspect and compare the products
 Consumer package goods/frequently purchase
items
Advertising and sales promotion to reach market
 Unit value
Low cost must use mass media approaches, with
high unit cost personal selling is effective
 Customization
Customized often requires personal selling
 Selection of the Promotional
Mix
 CUSTOMER CHARACTERISTCS
 Industrialversus consumer market
Consumers are easier to reach (decision
maker) through media sources; industrial
buyers typically have a more formal buying
process, requiring personal selling
 Number of customers
For a small number of customers, personal
selling can play a much more important role
 Geographical dispersion
Not only affects the type of promotional effort,
but the media choices
 Setting the Total Promotion
Budget
One of the Hardest Marketing Decisions
Facing a Company is How Much to Spend on
Promotion.

Affordable Percentage
Percentage of
of Sales
Sales
Based on What the Based
BasedononaaCertain
CertainPercentage
Percentage
Company Can Afford of
ofCurrent
Currentor
orForecasted
ForecastedSales
Sales

Objective-and-Task
Objective-and-Task Competitive-Parity
Competitive-Parity
Based
BasedononDetermining
Determining Based
Basedon
onthe
theCompetitor’s
Competitor’s
Objectives
Objectives&&Tasks,
Tasks,Then
Then Promotion
PromotionBudget
Budget
Estimating
EstimatingCosts
Costs
 Approaches to Determining the
Promotional Budget
 Percentage of sales
A fixed amount of money per past or projected
sales
Probably the most widely used as it is simple
But, what about cause and effect?

 All available funds/All you can afford

 Budget what is left over for promotional
expenditures
New companies often put all available funds into
promotion to penetrate the market
But, you can miss opportunities or overspend
 Psychological Processes
 The high involvement decision process
Need -> search -> evaluation -> purchase -> outcomes
 The adoption process
Awareness -> interest -> evaluation -> trial -> adoption
-> post-adoption confirmation
 Buyer readiness states/Hierarchy of effects
Awareness -> knowledge -> liking -> preference ->
conviction -> purchase
 AIDA
Awareness -> Interest -> Desire -> Action
Setting the Promotion Mix

Reach
Reach Many
Many Buyers,
Buyers, Repeat
Repeat
Advertising
Advertising Message
Message Many
Many Times,
Times, Impersonal,
Impersonal,
Expensive
Expensive
Personal
Personal Personal
Personal Interaction,
Interaction, Relationship
Relationship
Building,
Building, Most
Most Expensive
Expensive Promo
Promo
Selling
Selling Tool
Tool
Sales
Sales Wide
Wide Assortment
Assortment of of Tools,
Tools,
Rewards
Rewards Quick
Quick Response,
Response, Efforts
Efforts
Promotion
Promotion Short-Lived
Short-Lived
Public
Public Very
Very Believable,
Believable, Dramatize
Dramatize aa
Company
Company or or Product,
Product,
Relations
Relations Underutilized
Underutilized
Direct
Direct Nonpublic,
Nonpublic, Immediate,
Immediate,
Marketing
Marketing Customized,
Customized, Interactive
Interactive
 Characteristics of
Communications

Advertising Sales Promotion

 Pervasiveness  Communication
 Amplified  Incentive
expressiveness  Invitation
 Impersonality
 Characteristics of
Communications

Public Relations Events and

and Publicity Experiences
 High credibility  Relevant
 Ability to catch  Involving
buyers off guard  Implicit
 Dramatization
 Characteristics of
Communications

Direct Marketing Personal Selling

 Customized  Personal
 Up-to-date interaction
 Interactive  Cultivation
 Response
 ADVERTISING
Any paid form of non-personal presentation
and promotion of ideas, goods, or services by
an identified sponsor
Magazines, newspaper, outdoor posters, direct
mail, radio televisions, etc.
Key issues
 The time or media space is paid for
 The sponsor is identified and has control over the
promotional activity
The Five M’s of Advertising
Advertising Objectives

Informative Persuasive
advertising advertising

Reminder Reinforcement
advertising advertising
 DEVELOPING AN
ADVERTISING CAMPAIGN

Design
Creative
Strategy

Evaluate
Select Determine Determine
Advertising
Target Advertising Advertising
Effective-
Market Objectives Budget
ness

Select &
Schedule
Media
 ADVERTISING
ADVERTISING STRATEGY
STRATEGY
 MESSAGE

MESSAGESTRATEGIES
STRATEGIES
Objective vs. Subjective
Objective vs. SubjectiveMessages
Messages
Comparative Message Techniques
Comparative Message Techniques
Emotional Techniques: Mood, Fear, Humor
Emotional Techniques: Mood, Fear, Humor
Celebrity Endorsements vs. Non-Celebrity Images
Celebrity Endorsements vs. Non-Celebrity Images
•• MEDIA
MEDIASTRATEGIES
STRATEGIES
Broadcast: Television, Radio
Broadcast: Television, Radio
Print: Newspapers, Magazines, Journals
Print: Newspapers, Magazines, Journals
Specialized: Outdoor, Transit, Direct Mail, Internet
Specialized: Outdoor, Transit, Direct Mail, Internet
 ADVERTISING
ADVERTISING STRATEGY
STRATEGY
RELATIVE

RELATIVE STRENGTHS
STRENGTHS AND
AND WEAKNESSES
WEAKNESSES OF
OF
STRATEGIES
STRATEGIES
Effectiveness

Effectiveness and
and Efficiency:
Efficiency: Reach
Reach and
and
Frequency
Frequency
Target

Target Capabilities
Capabilities
Cost

Cost
Believability

Believability
Appropriateness

Appropriateness for
for Message
Message (Image,
(Image,
Details)
Details)
 Reach & Frequency
 Reach: number of different target consumers
who are exposed to a message at least once
during a specific period of time
 Frequency: number of times an individual is
exposed to a given message during a specific
period of time
 Cost per contact: cost of reaching one member
of the target market
 Allowscomparison across advertising strategy
vehicles
EVALUATING ADVERTISING
EFFECTIVENESS
Tools:
Pretesting
Pretesting •Focus Groups
•Screening
•Persuasion Scores

Tools:
Posttesting
Posttesting •Unaided Recall Tests
•Aided Recall Tests
•Inquiry Evaluations

Sales
Sales Effectiveness
Effectiveness Tools:
Evaluations
Evaluations •Monitor Sales
 Creative Brief

 Positioning  Brand promise

statement  Evidence of
 Key message promise
 Target market  Media
 Objectives  Background
 Key brand benefits  Creative
considerations
 Television
Advantages Disadvantages
 Reaches broad  Brief
spectrum of  Clutter
consumers
 High cost of
 Low cost per
exposure
production
 High cost of
 Ability to
demonstrate product placement
use  Lack of attention
 Ability to portray by viewers
image and brand
personality
 Print Ads
Advantages Disadvantages
 Detailed product  Passive medium
information  Clutter
 Ability to  Unable to
communicate user demonstrate
imagery product use
 Flexibility
 Ability to segment
 Major Media Types
 Newspapers  Outdoor
 Television  Yellow pages
 Direct mail  Newsletters
 Radio  Brochures
 Magazines  Telephone
 Internet
 Place Advertising

 Billboards
 Public spaces
 Product
placement
 Point-of-purchase
 Sales Promotion
 Collection
of incentive tools, mostly short term,
designed to stimulate quicker or greater
purchase of particular products or services by
consumers or the trade.

Those marketing activities - other than

advertising, public relations/publicity, and
personal selling - that stimulate consumer
purchasing and dealer effectiveness
 Displays, shows and exhibitions, coupons, contests, samples
 OBJECTIVES OF CONSUMER
PROMOTIONS

Stimulate Encourage
Trial Repurchase
Complementary Increase
Products Support Consumption
Neutralize Flexible Pricing Impulse
Competitors Purchasing
 OBJECTIVES OF TRADE
PROMOTIONS

Avoid Price Gain/Maintain

Avoid Price Gain/Maintain
Reductions Distribution
Reductions Distribution
Defend Against Influence
Defend Against Influence
Competitors Reseller Promotion
Competitors Reseller Promotion
Increase Reseller Influence
Increase Reseller Influence
Inventory Price Discount
Inventory Price Discount
THE GROWTH IN SALES PROMOTION
Reasons for the Growth in Sales Promotion:

Consumer
ConsumerFactors
Factors

Accountability
Accountability

Impact
Impactof
ofTechnology
Technology

Short-Term
Short-TermFocus
Focus

Increased
IncreasedRetail
RetailPower
Power
 Sales Promotion Tactics
Consumer-directed Trade-directed
 Samples  Price offs
 Coupons  Allowances
 Cash refund offers  Free goods
 Price offs  Sales contests
 Premiums  Spiffs
 Prizes
 Trade shows
 Patronage rewards
 Specialty
 Free trials
advertising
 Tie-in promotions
 Major Consumer Sales
Promotion Tools

Sample
Sample Trial
Trial amount
amount of
of aa product
product

Savings
Savings when
when purchasing
purchasing specified
specified
Coupons
Coupons products
products

Cash
Cash Refunds
Refunds Refund
Refund of
of part
part of
of the
the purchase
purchase price
price

Reduced
Reduced prices
prices marked
marked on on the
the label
label
Price
Price Packs
Packs or
or package
package
Goods
Goods offered
offered free
free or
or low
low cost
cost as
as an
an
Premiums
Premiums incentive
incentive to
to buy
buy aa product
product
Advertising
Advertising Articles
Articles imprinted
imprinted with
with an
an advertiser’s
advertiser’s
Specialties
Specialties name
name given
given as
as gifts
gifts
 Major Consumer Sales
Promotion Tools
Cash
Cash or
or other
other rewards
rewards for
for the
the use
use of
of aa
Patronage
Patronage Rewards
Rewards certain
certain product
product
Displays
Displays and
and demonstrations
demonstrations thatthat
Point-of-Purchase
Point-of-Purchase take
take place
place at
at the
the point
point of
of sale
sale
Consumers
Consumers submit
submit an
an entry
entry to
to be
be
Contests
Contests judged
judged

Consumers
Consumers submit
submit their
their names
names for
for aa
Sweepstakes
Sweepstakes drawing
drawing
Presents
Presents consumers
consumers with
with something
something
Game
Game every
every time
time they
they buy
buy
LIMITATIONS OF SALES
PROMOTION
Cannot
Cannot Reverse
Reverse Declining
Declining Sales
Sales
Trend
Trend

Cannot
Cannot Overcome
Overcome Inferior
Inferior
Product
Product

May
May Encourage
Encourage Competitive
Competitive
Retaliation
Retaliation

May
May Hurt
Hurt Profit
Profit
 Public Relations Functions
 Pressrelations
 Product publicity
 Corporate communications
 Lobbying
 Counseling
Major Tools in Marketing PR
 Publications
 Events
 Sponsorships
 News
 Speeches
 Public Service
Activities
 Identity Media
 Direct Marketing
 Techniques used to get consumers to
make a purchase from their home,
office or other nonretail setting
Directmail, catalogs, mail order,
telemarketing, electronic retailing
 TECHNIQUES OF DIRECT
MARKETING
Electronic
Electronic Direct
Media DirectMail
Mail
Media

Telemarketing
Telemarketing Direct
Direct Selling
Selling

Print
Print Broadcast
Broadcast
Media
Media Media
Media