Integrated Marketing Communications

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APPLIED MARKETING MANAGEMENT
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Integrated Marketing Communications
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Overview

• Promotion Defined
• Developing a Promotion Strategy
• Understanding the Promotion Mix
• Implementing a Promotion Plan
• Crafting the Message A Focus on Advertising

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What is Promotion

• Promotion involves both education and persuasion.
  That is, informing potential customers about your
  offerings and convincing them to think and/or act
  favorably toward that offering.
• For new offerings, the focus should be on
  education, and for mature offerings, persuasion.

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Promotion Strategy Overthe Product Life Cycle
Exhibit 10.2
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Goal of Promotion

• In general, to motivate purchase.
• Promotional activities should shift and/or twist
  the demand curve for an offering.
• This means that a market either
• demands more of the good at a given price or,
• is willing to pay more for a given quantity.
• A promotional effort is unsuccessful if there is
  only movement down the demand curve.

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Promotion Strategies

• Push Incentives are placed in the channel. This
  has the effect of pushing the product from the
  provider to the end user. Channel intermediaries
  shoulder most of the promotional effort.
• Pull Incentives are directed toward the end
  user. This has the effect of pulling the
  product through the channel and leaves the
  majority of the promotional effort with the
  provider.

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Promotion Mix

• Set of tools used to communicate the promotional
  message.
• Advertising Paid, non-personal delivery
• Personal Selling Paid, personal delivery
• Sales Promotion Short term value-enhancing
  incentives
• Public Relations Non-paid, non-personal delivery

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Advertising

• Types of Advertising
• Institutional advertising
• Corporate
• Advocacy
• Product advertising

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Spending on National Advertising2003 Projections
Exhibit 10.3
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Top Ten Fortune 500Online Advertisers
Exhibit 10.4
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Top Ten Web PropertiesHosting Online Advertising
Exhibit 10.5
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Discussion Question

• There is a close relationship among advertising,
  brand image and positioning.
• If all advertising for a well-known brand were to
  stop suddenly, would the image of the brand and
  its position suffer? Explain.

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Personal Selling andSales Management

• The Sales Management Process
• Developing Sales Force Objectives
• Determining Sales Force Size
• Recruiting Salespeople
• Training the Sales Force
• Controlling and Evaluating the Sales Force
• The Impact of Technology on Personal Selling

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Comparison of Sales ForceCompensation Methods
Exhibit 10.8
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Sales Promotion in Consumer Markets

• Types of Sales Promotion to Consumers
• Coupons
• Rebates
• Samples
• Loyalty programs
• Point-of-purchase promotion
• Premiums
• Contests and sweepstakes

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Coupons Sales Promotion to Consumers
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Sales Promotion in Business Markets

• Sales Promotion Methods Unique to Business
  Markets
• Trade allowances
• Free merchandise
• Training assistance
• Cooperative advertising
• Selling incentives (SPIFS)

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Public Relations

• Public Relations Methods
• Negative Public Relations are very hard to
  overcome.

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Degree of Customer Trustin Selected U.S.
Industries
Exhibit 10.6
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Degree of Customer Trust in Selected Corporations
and Nonprofits
Exhibit 10.7
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Promotional Elements Used in IMC
Exhibit 10.1
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Integrated Marketing Communication

• Integrated Marketing Communication (IMC)
• the strategic, coordinated use of promotional
  elements to ensure maximum persuasive impact on
  the firms current and potential customers.
• Reasons that IMC is important
• Fosters long-term relationships
• Reduces or eliminates promotional redundancies
• Technology allows better targeting of customers

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Promotional Plan

• Specifies how each element of the Promotion Mix
  (Advertising, Personal Selling, Sales Promotion
  and Public Relations) will be used to achieve
  certain promotional objectives within a targeted
  market.

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Creating a Promotional Plan
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Define the Audience

• The audience should reflect the target market.
• It will to the extent that the characteristics of
  the target market can be used to select the
  communication vehicles.

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Set the Promotional Objectives

• Being S.M.A.R.T. means
• Specific identify the change we want to effect
  in the customer group of interest.
• Measurable assess the degree of change.
• Attainable ensure that the objective is doable.
• Relevant ensure that the objective is consistent
  with other firm initiatives
• Time frame give an expected completion date

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Sample Promotional Objectives

• Increase brand awareness or recall
• Create or Change an Attitude / Image
• Highlight the salience of an Attribute or improve
  its evaluation
• Gain trial, Close a sale, Increase the repeat
  purchase rate
• Build confidence or trust
• Establish expectations

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Linking Mix Elements to Objectives

• Determine which element(s) of the promotion mix
  should be used to fulfill each SMART objective.
• Map the objectives to the mix element.
• Estimate the amount of each element needed to
  meet its mapped objective.
• This is the promotion mix and the foundation for
  estimating the budget.
• E.g., Porsche wants to increase awareness 25 of
  its new Cayenne SUV to non-Porsche owners who
  plan on buying a luxury SUV in the next year.

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Set the Promotional Budget

• This a philosophical question.
• If Sales ? Promotion, then a percent of sales
  method for setting the budget is fine.
• If Promotion ? Sales, then the promotional budget
  should be set relative to the objectives it needs
  to meet.
• The process is likely iterative.

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Implement the Plan Evaluate the Results

• Follow up is valuable both in assessing the
  efficiency and effectiveness of what was done and
  in planning for future promotional efforts.

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Designing the Message

• This is how the promotional objectives are met.
• It is what gets communicated to the target
  audience through each element of the promotion
  mix.
• Recalling how communication occurs helps to
  structure the design process.

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Basic Communication Model
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Using the Communication Model

• For instance, if you work for Lysol, what would
  you say about a new disposable toilet bowl brush?
• Designing the message involves consideration of
  the
• Audience (Housewives with young children),
• Promotion Mix Element (Advertising),
• Medium and Vehicle (Network Television the
  Morning Rotation).

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Focus on AdvertisingThe Copy PlatformStructures
What The Promotional Campaign Says

• Basic issue or problem advertising must address
• Advertising objectives
• Target audience
• The BIG IDEAor key benefits emphasized
• Creative strategy statement (campaign theme,
  appeal, and execution technique)
• Supportive information (justification)

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The BIG IDEA

• Is how the Advertising meets its promotional
  objectives given its audience and constraints.
• It translates the ads purpose into its Creative
  Strategy (how it will do what it is suppose to).
• The Creative Strategy is built around a theme
  that contains an appeal.
• The theme is the ads context, or setting.
• The appeal taps into the audiences motives to
  initiate and guide behavior / learning.

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Motives / Appeals

• All ads have appeals. Without appeals ads could
  not motivate a response.
• Typical Motives achievement, expertise, fear,
  functionality, health, humor, mystery,
  performance, pride, safety/security, self
  fulfillment/expression, sensual pleasure (sex,
  taste) spiritual comfort (peace, tranquility).