Module 11 Integrated Marketing Communications

IMC

Fully integrating all business practiced that communicate something about a companies brand to customers

Personal Selling (MarCom Mix)

Two-way

Salesperson and customer

Flexibility (Message)

Advertising (MarCom Mix)

Creates Awareness

Identified Sponsor (Paid for by Sponsor)

PR (MarCom Mix)

Creates credibility

Unclear Sponsor

Free/Unpaid

Sales Promotion (MarCom Mix)

Short term sales

Trade Oriented (Channel)

Consumer Oriented (Coupons, Contests, Ect.)

3 Major Changes

Reduced Dependence on Mass Media Advertising

Increased Reliance on Highly Targeted Sales Messages

Expanded Efforts to Assess Communications ROI

Managing MarCom Process

1. Select Target Market

2. Establish Objectives

3. Setting Budgets

4. Formulating Positioning Strategies

5. Establishing Message and Media Strategies (AIDA)

6. Evaluate Program Effectiveness

Establishing Objectives (Managing MarCom Mix)

Increasing Sales and Awareness

Change Attitudes

Follows SMART Objectives

Setting Budgets (Managing MarCom Mix)

Top Down - Boss sets Budget
Bottom Up - Employees request a budget

Bottom Up/Top Down - Most Common

Top Down/ Bottom Up

Formating Positiong Strategies (Managing MarCom Mix)

Encoding = Decoding

Encoding = Intended Message

Establishing Message and Media Strategies AIDA (Managing MarCom Mix)

Copy Thrust - What wods/images should communicate

Awareness (Availability)

Interest (Benefits)

Desire (Emotion)

Action (Make Purchase)

Media/Media Type

Evaluating Program Effectiveness (Managing MarCom Mix)

Increase Sales

Increase Awareness

Change Attitudes

Pioneering (IMC Components Advertising)

Pioneering/Informational Advertising - Product Category

Generates Primary Demand

Competitive (IMC Components Advertising)

Competitive/Persuasive Advertising

Direct (Immediate Buying Action)

Indirect (Product Advantage)

Comparative (Specific Brand Comparison)

Reminder (We’re Still Here)

Institutional (IMC Components Advertising)

Institutional Advertising

More About the Company Less About the Product

Selecting Advertising Media (IMC Components Advertising)

Reach = # of households Exposed

Frequency = # of times a person is exposed to the message (3 Hit Theory)

Timing = When is the message release?

Cost (IMC Components Advertising)

Absolute Cost

Cost Per Viewer (CPM) = Cost per thousand

Cost Per Rating Point (CPP)

Budgeting For Advertising (IMC Components Advertising)

All you can Afford Method

Incremental Method

Percentage-of-Sales Method (Most Common)

Objective and Task Method (Best Method)

Reach * Frequency = Gross Rating Points

Six Factors Accounting for Shift (IMC Components Sales Promotion)

Balance of Power Transfer

Increase Brand Parity

Reduced Brand Loyalty

Splintering of Mass Market - Reduce Advertising Effectiveness

Short Term Sales Orientation

Trade and Consumer Responsiveness

Consumer Promotions (IMC Components Sales Promotion)

Generating Trial Purchases

Encouraging Repeat Purchases

Reinforcing Brand Images (Monopoly, Active)

Trade Promotions (IMC Components Sales Promotion)

Introduce New or Revised Products

Increase Distribution

Build Retail Inventories

Maintain or Increase the Manufacturers Share of Shelf Space

Point of Purchase Displays

Reduce Excess Inventories

Achieve Feature Space in Retailers Advertisements

Counter Competitive Ability

Sell as much as Possible to Final Customers

Sales Promo Limitations (IMC Components Sales Promotion)

Forward Buying (Only Buying When on Sale)

Diverting

Public Relations (IMC Components PR)

Proactive - Stories About Company

Reactive - Damage Control

4 Factors Accounting for Growth of Sponsorships

Avoid Clutter of Inherent Media Ads

Respond to Consumers Changing Media Habits

Gain Approval of Various Constituencies

Target Specific Groups or Regions