Week 10 Chapter 14

Integrated Marketing Communications (IMC)

Represents the promotion dimension of the four Ps; encompasses a variety of communication disciplines—general advertising, personal selling, sales promotion, public relations, direct marketing, and digital media—in combination to provide clarity, consistency, and maximum communicative impact.

3 components of an IMC:

1. Consumer

2. Channels or vehicles through which the message is communicated

3. Evaluation of the results

communication methods

• General advertising

• Personal selling

• Sales promotion

• Public relations

• Direct marketing

• Digital media

The Communication Process

Sender→Transmitter encodes message → Communications channel (media) → Receiver (consumer) decodes message and then provides feedback to sender

• Noise from environment is affecting each step

Sender

The firm from which an IMC message originates; the sender must be clearly identified to the intended audience.

Transmitter

An agent or intermediary with which the sender works to develop the marketing communications; for example, a firm’s creative department or an advertising agency.

• Encoder

Communication channel

The medium—print, broadcast, the Internet—that carries the message.

• Media

Receiver

The person who reads, hears, or sees and processes the information contained in the message or advertisement.

• Decoding

  • The process by which the receiver interprets the sender’s message.

How Consumers Perceive Communication

• Receivers decode messages differently

• Senders adjust message according to the medium & receivers’ traits

Decoding the Message

Each receiver decodes a message in his or her own way, which is not necessarily the way the sender intended.

Noise

Any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium; a problem for all communication channels.

Feedback loop

Allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly.

Steps in Planning an IMC Campaign

1. Identify target audience

2. Set objectives

3. Determine budget

4. convey message

5. Evaluate and select media

6. create communication

7. asses impact

Identify Target Audience

Campaign success depends on how well the advertiser can identify its target audience

Research is conducted

Information gathered sets tone of advertising & media selected

Set Objectives

All marketing communications aim to achieve certain objectives: to inform, persuade, and remind customers. This can be accomplished via:

Pull Strategy

Push Strategy

• Nature of the market

• Nature of the product

• Stage in the product life cycle

Considerations to Determine Budget

• Role that advertising plays in their attempt to meet their overall promotional objectives

• Expenditures vary over the course of the product life cycle

• Nature of the market and the product influence the size of the budget

Objective and Task Budget

An IMC budgeting method that determines the cost required to undertake specific tasks to accomplish communication objectives; process entails setting objectives, choosing media, and determining costs.

competitive parity method

A method of determining a communications budget in which the firm’s share of the communication expenses is in line with its market share

percentage-of-sales method

A method of determining a communications budget that is based on a fixed percentage of forecasted sales.

affordable method

A method of determining a communications budget based on what is left over after other operating costs have been covered

Unique Selling Proposition

Differentiate a product by communicating its unique attributes

Often becomes the common theme or slogan of the entire campaign

Needs to be:

• Meaningful to consumer

• Unique to the brand

• Sustainable over time even with repetition

The Appeal (self-brand connection)

Rational or Emotional Appeal

Rational appeal

A rational appeal helps consumers make purchase decisions by offering factual information and strong arguments built around relevant issues that encourage consumers to evaluate the brand favourably on the basis of the key benefits it provides

Emotional appeal

Aims to satisfy consumers’ emotional desires rather than their utilitarian needs.

Could use any emotion: Coca Cola: Happiness and Joy, Mountain Dew: Humou

Media Mix

The combination of the media used and the frequency of advertising in each medium.

Media Buy

The purchase of airtime or print pages.

Media planning

The process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience

Mass Media: 

Reach large anonymous audience

Channels, such as national newspapers, magazines, radio, and television, that are ideal for reaching large numbers of anonymous audience members.

Niche Media:

Reach a smaller more targeted audience

Channels that are focused and generally used to reach narrow segments, often with unique demographic characteristics or interests.

Paid Media

Media such as TV, print, radio, or display ads used to reach mass markets.

Owned media

Media controlled by the advertiser, such as its website, Facebook fan page, or YouTube channel

Earned media

Media that results from word-of-mouth, buzz, or publicity.

TV Adv vs DisAdv

Adv

• Wide reach

• sound and view

Disadv:

• high cost

• multitude of channel program options may increase awareness of competitors products

Radio Adv vs Disadv

Adv:

• Inexpensive

• selectively targeted

• wide reach

Disadv:

• No video

• less focus

• short

Magazines Adv vs Disadv

Adv:

• Targeted

• subscribers pass along to customers

Disadv:

• Inflexible

• Long lead times

Newspapers Adv vs Disadv

Adv:

• Flexible

• Timely

• Localize

DisAdv:

• High production costs

• Short lifespan

Digital Adv vs DisAdv

Adv:
- Highly targeted
- Interactive
- linked to detailed content

DisAdv:

• Becoming diluted

• may be blocked by certain ad blockers or spam filters.

Out-of-Home Adv vs DisAdv

Adv:

• inexpensive

• opportunity for repeat exposure

DisAdv:

• Limited targeting options

• placement problems

• very short exposure time

Direct Marketing Adv vs Disadv

Adv:

• targeted

• personalization

DisAdv:

• Costly

Advertising schedule

Specifies the timing and duration of advertising.

Continuous Advertising

Runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive or reminder advertising.

Flighting

Spurts of very heavy advertising followed by periods of no advertising

Implemented in spurts, with periods of heavy advertising followed by periods of no advertising.

Ex: Bikini Village

Pulsing

Combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods.

Baseline ads that run throughout series of campaign

In certain periods advertising is ramped up

Key points on Communication

1. Type of medium determines execution style

2. Creativity plays a major role int the execution stage

3. Creativity should not overshadow message

4. Execution style must match the medium and objectives

Pretesting

Assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do.

Tracking

Includes monitoring key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems with the message or the medium.

Post-testing

The evaluation of an IMC campaign’s impact after it has been implemented.

Frequency

Measure of how often the target audience is exposed to a communication within a specified period of time

gross rating points (GRP)

Measure used for various media advertising—print, radio, or television; GRP = reach × frequency.

Reach

Measure of consumers’ exposure to marketing communications; the percentage of the target population exposed to a specific marketing communication, such as an advertisement, at least once.

Click-through tracking 

Measures how many times users click on banner advertising on websites.

search engine marketing (SEM)

Use of tools such as Google AdWords to increase the visibility of websites in search engine results.

Impressions

The number of times an ad appears to a user.

Click-through rate (CTR)

The number of times a user clicks on an ad divided by the number of impressions

Advertising

A paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future.

• Most visible element of IMC

• Extremely effective at creating awareness and generating interest

• Pulled back lower ROI

Personal Selling

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer’s purchase decision

• Some products require the help of a salesperson

• More expensive than other forms of promotion

• Salespeople can add significant value, which makes the expense worth it

Sales Promotions

Special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays.

• Can be aimed at both end user consumers or channel members

• Used in conjunction with other forms of IMC

• Can be used for both short-term and long-term objectives

Direct Marketing

Marketing that communicates directly with target customers to generate a response or transaction.

Direct Marketing Characteristics

• Targeted

• Motives an action

• Is measurable

• Provides information

  • More spending here

Forms of direct marketing

• Direct response TV

• Direct mail/email

• Catalogue

• Kiosk

Direct Mail/Email

• A targeted form of communication distributed to a prospective customer’s mailbox or inbox

• Really good ROI for every $1 spent $12 in return

Catalogues

• Hard copy and online

• Welcomed in 80% of Canadian homes

• E.g., Sears, Ikea, and MEC

Direct Response TV (DRTV)

• Short television commercials and/or infomercials

• Strong call to action via 1-800 number, mail or website

  • Scan the QR code

Kiosks

• Facilitate service delivery, e.g., airline ticket printing

• Sell services and products to consumers, e.g., Dell, Virgin Mobile, Hallmark

Public Relations (PR)

The organizational function that manages the firm’s communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavourable stories or events, and maintaining positive relationships with the media.

• “Free” media attention

• Importance of PR has grown as cost of other media has increased

• Consumers becoming more skeptical about marketing, PR becoming more important

  • Tesla mostly PR

Event sponsorship

A popular PR tool; occurs when corporations support various activities (financially or otherwise), usually in the cultural or sports and entertainment sectors

PR Elements

Publications (brochures, books), Video and audio (PSA), Annual Reports, Media Relations (press kits, news releases), Digital media (websites, emails, campaigns)

Social media types

1. Social network sites

2. media-sharing sites

3. thought-sharing sites

4Es of Social Media

Excite, Educate, Experience → Engage

Experience the Product or Service

Well-designed marketing offers have a clear call to action

• Vivid information

• Try before you buy

• Digital learning

• DIYers

• Two-way dialogue 

• Tutorials

• Simulate real experiences

Engage the Customer

Action→ Loyalty → Potential Relationship → Commitment

Social Network Sites

• Facebook – 2.4B active users

• Snapchat – 190 million daily users

• LinkedIn – 467 million active users, a professional business site

• (not tiktok)

Media-Sharing Sites

Enables users to share content they have generated

• Youtube – video sharing social media platform

• Tiktok

• Photo Sites – Flickr, Picasa, Instagram

• Podcasts

Thought Sharing Sites:

• Blogs

• Microblogs (twitter)

Social review

Yelp

Google Review

Influencer Marketing

• Relevance

• Reach

• Response

• Return

Types of Influencers

Celebrity, Micro, Blog, Social Media, Specialized

App Pricing Models

ad-supported, freemium, paid, paid with in app purchases

Individual social media Metrics such as:

• Social Reach

• Influence

• Extended Network

What Does Personal Branding Really Mean?

• Leverage your personal brand to induce action

• It takes time & consistent effort!

• Being influential means you excite, educate, give experience & engage

What Types of Jobs are Available in Social Media?

• Strategist

• Community Manager

• Blogger

• Social Media Marketing Specialist

• Search Engine Marketing Associate

• Online Customer Service Rep