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Integrated Marketing Communications, & DI.The Communication Process
Involves both a source (sender) and a receiver
Begins when sender has a thought or idea and wants to share it with one or more receivers.
Sender Originator (source) of the message in the communication process.
Encoding
Conversion of the sender's ideas and thoughts into a message
Words
Sounds
Colors Space
Themes
Symbols
Pictures
Numbers Gestures
Movement
Channel
Required for transmission
voice, gesture, newspaper, or other communication medium.
Noise Anything that interferes with, distorts, or slows the transmission of info
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Message may not be received by the desired target audience.
Receiver Person who decodes the message.
Decoding Interpretation of the language and symbols sent by the source through a chann
Feedback
Interpersonal communicators get the receiver's response to a message directly.
Mass communicators must rely on market research or sales trends
II. The Promotional Elements
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III. Developing The Promotional Mix
A. The Target Audience
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Promotional programs are directed too Ultimate consumers
o Intermediaries
o or both.
Promotional programs directed to buyers of consumer products often use mass media because
large.
Personal selling is used at the place of purchase.
Direct marketing may be used to encourage first-time or repeat purchases.
Combinations are a necessity for some target audiences.
Advertising directed to business buyers is used selectively.
Personal selling is especially important. Because such buyers often have specialized needs or
Personal selling is also the major promotional ingredient for intermediary
B Product Life Cycle
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C Stage of the Buying Decision
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Prepurchase Stage.
Advertising is most valuable
Informs potential customers about the existence of the product and the se
Purchase Stage.
Importance of personal selling is highest
Sales promotion can encourage demand.
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Postpurchase Stage.
Personal contact after the sale leads to buyer satisfaction.
Advertising and personal selling help reduce postpurchase anxiety.
E Channel Strategies
F. Integrated Marketing Communications
The concept of designing marketing communications programs
that coordinate all promotional activities
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o advertising,
o personal selling,
o sales promotion,
o public relations
o direct marketing
to provide a consistent message across all audiences
IV. Developing the Promotional Program
A. Identifying the Target Audience
B. Specifying Promotion Objectives
Qualities of Good Objectives:
Designed for a well-defined target audience
Measurable
Cover a specified time period.
Hierarchy of effects
Sequence of stages a prospective buyer goes through
Use as a tool to develop objectives
Awareness. Ability to recognize and remember the product or brand.Interest. Increase in desire to learn about the product features
Evaluation. Consumers appraisal of the product on important attributes.
Trial. Consumers actual first purchase and use.
Adoption Repeated purchase and use of the product or brand
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C. Setting the Promotion Budget
Percentage of Sales
Funds are allocated as a percentage of past or anticipated s
Advantageso simple
o Provides a financial safeguard
Disadvantageo Implies that sales cause promotion. rather than the
o Could reduce promotion budget because of a down
Competitive Parity
Matching the competitors absolute level of spending or th
Advantage
o It is important to consider the competition. Disadvantage
o The competition may have different promotional o
All You Can Afford
Common to many small businesses
Money is allocated to promotion after all other budget item
Fiscally conservative
This approach has little else to offer.
Objective and Task Best approach
Company
o Determines promotion objectiveso Outline the tasks to accomplish these objectives
o Determines the promotion costs of performing thes
Advantages
o Ties expenditure to specific objectives
o Prioritizes tasks if costs are too high.
Disadvantages
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o Requires experience and judgment.
o May require extensive reworking to meet budgets
D. Selecting the Right Promotional Tools .
Specify the combination of the five basic IMC toolsadvertising, personal selling, sales promo
marketing. Promotion mix can vary
o Simple program using a single tool
o Comprehensive program using all forms.
Assess the relative importance of the various tools
E. Designing the Promotion
Design of the promotion plays a primary role in determining the message that is communicate
Design activity is viewed as the step requiring the most creativity.
Design each promotional activity to communicate the same message.
F. Scheduling the Promotion
Determine the most effective timing.
Promotion schedule describes
o the order in which each promotional tool is introduced
o the frequency of its use during the campaign.
Factors such as seasonality and competitive promotion activity can influence the schedule.
V. Executing and Evaluating The Promotional Progra
Test-result database for comparisonso Relative impact of the promotional tools
o Execution options of promotion tools,
o In varying situations.
Information from the database will
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o allow informed design and execution decisions
o Provide support for IMC activities during internal reviews by financial or administrati
Carrying out promotion program is expensive and time consuming.
Time to implementation is longer for higher income firms.
Trend is toward a long-term perspective integrating all forms of promotionVI. Direct Marketing
A. The Growth of Direct Marketing
Direct marketing growth (in terms of spending, revenue generated, and employment) has outp
Continued growth will come from
o Number of consumers with Internet access
o Number of businesses with websites
o Electronic commerce offerings .
B. The Value of Direct Marketing
Consumer
benefits
dont have to go to a store
shop 24 hours
save time
avoid hassles with salespeople save money
fun and entertaining Privacy
Customer service such
o Toll-free numbers
o Representatives with access to information about purchase preferences
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o Overnight delivery services
o Unconditional guarantees.
SellerBenefits
Direct orders: From offers with all the information necessary for a prospect to maktransaction.
Lead generation: From offers designed to generate interest in a product or service ainformation.
Traffic generation: From offers designed to motivate people to visit a business.
C. Technological Issues in Direct Marketing
Databases
o demographic, media, and consumption profiles of customers
o Allow direct marketing to specific customers.
Data must be
o unbiased,
o timely,
o pertinent,o accessible, and
o organized to lead managers to decisions
Some data must be collected in consumers homes
Other data are available from businesses.
Technology such as optical scanners helps collect data with as little intrusion on the customer
D. Global Issues in Direct Marketing
Global growth of direct marketing may depend on technology.
Reliable physical delivery is necessary
Payment is an issue.
o Fewer consumers have credit cards,
o Alternatives (C.O.D., bank deposits) are needed..
E. Ethical Issues in Direct Marketing
Telephone calls during the dinner hour.
SPAM - the proliferation of e-mail advertising.
Legislatures are also taking an interest
o input from consumers
o input from governments
o input from direct marketing associations.