integrated marketing communications imp notes

8/3/2019 Integrated Marketing Communications IMP NOTES

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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.

integrated marketing communications imp notes

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