Lecture 18-- integrated marketing communications

For final

Goal of Communication

build strong customer relationships

Communication

the process of conveying a message to others

source

the person or organization with information to convey

message

the information

channel of communication

the means of communication (eg. advertising media, personal selling)

receiver

consumers who read, hear, or see the message

encoding

the process by which the sender transforms an idea into symbols

decoding

the reverse process— the receiver transforms the symbols into an idea

The promotional mix

the blend of promotion tools that the company uses to communicate customer value and build customer relationships

Advertising

any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Includes broadcasts, prints, online, mobile, and outdoor

sales promotion

a short-term incentive to encourage the purchase or sale of a product or service. Includes discounts, coupons, displays, or demonstrations

personal selling

personal interaction by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships

Public relations

building good relations with the company’s carious publics (customers, stockholders, suppliers, employees) by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

direct & digital marketing

engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships

customers are better informed and more communications empowered

less reliance on marketer-supplied information; use internet, social media, other technologies to gather and exchange information

marketing strategies are evolving

shift from mass marketing to focused marketing programs; emphasis on content marketing (build and share conversations with and among consumers are using a mix of communication channels)

changes in communication methods are resulting from digital technology

new information and communication tools—- websites, streamed content, online communities, etc

the challenge & the approach

bring the various sources of communication together in a coherent, organized way to ensure clear brand messages

integrated marketing communications (IMC)

integrated marketing communications (IMC)

involves carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products

3 broad steps of the IMC program

developing, executing, and assessing

4 basic questions of IMC program

who is the target audience, what are the promotion objectives and what is the budget for the promotion program, where should the promotions run, and when should the promotions be run?

IMC Planning

developing the promotion program:

• identify the target audience

• specify the objectives

• set the budget

• select the right promotional tools

• design the promotion

• schedule the promotion

Advertising characteristics and costs

• reaches masses of buyers at a low cost per exposure

• high absolute cost

• builds a long-term image for a product

• can trigger quick sales

• has a public nature and is viewed as legitimate

• very expressive

• impersonal and lacks the direct persuasiveness of salespeople

Public relations characteristics and costs

• very believable to readers

• can dramatize a company or product

• reaches many prospects

• indirectly paid

• effective and economical when well thought out

sales promotion characteristics and costs

• wide assortment of tools with unique qualities

• attracts attention and offers incentives to purchase

• used to dramatize product offers and boost sales

• invites and rewards quick response but has short-lived effects

personal selling characteristics and costs

• personal interaction between two or more people

• allows all kinds of customer relationships to spring up

• buyer feels a greater need to listen and respond

• most expensive promotion tool

direct and digital marketing characteristics and costs

• more targeted and interactive

• immediate and personalized

stages of product life cycle

generate awareness, growth, maturity, and decline

For pre-purchase customer journey

inform the potential customer about the product’s existence and what the product represents

for the purchase customer journey

move the customer to action and stimulate demand

for post-purchase customer journey

assure the buyer that the right purchase was made and reduce post-purchase anxiety

Push promotion strategy

relies on personal selling to members of the marketing channel. intermediaries push products to consumers

pull promotion strategy

generate consumer demand for a product. Primary means are advertising and sales promotion to the consumer