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Integrated MarketingCommunications

MKTG 301

11

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Today Integrated Marketing Communications(IMC)

Thursday Advertising, Online Marketing, &Personal Selling

Nov 23 Noclass timeto workonrecitationprojects.

Nov 25 Thanksgiving November 30 Exam Review December 2: Exam 2 coversmaterialsince

Exam 1 Finals Week Final Exam - cumulative

Agenda: November 16

22

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What is IMC?

The 4th P - Promotion

The processofdesigning acommunicationprogram thatcoordinates all promotionalactivities to provide aconsistentmessage toall audiences andbuildbrand equity.

33

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The Purpose of IMC

AdvertisingAdvertising

Sales PromotionSales Promotion

SponsorshipSponsorshipEventsEvents

PublicityPublicity

DirectDirect

MarketingMarketing

PersonalPersonalSellingSelling

MarketingMarketingCommunicationCommunication

ProgramProgram

BrandBrand

EquityEquity

Brand ImageBrand Image

BrandBrandAwarenessAwareness

WebsiteWebsite

All of these IMC modalitiesAll of these IMC modalities communicatecommunicate to buildto build

Brand EquityBrand Equity

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Communication

55

SENDERSENDERRECEIVERRECEIVER

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Fundamentals of Communication

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FIGURE 18FIGURE 18--11 The communication processThe communication process

consists of six key elementsconsists of six key elements

1818--77

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A similarunderstandingandknowledgebasethatcanbeappliedtothemessage.

Communication requires acommon Field of Experience

88

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Classes of MarketingCommunication

1010

1. Mass

Communication

2. Customized

Communication

3. Interactive

Communication

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1111

1.

Mass

Impersonal

Undifferentiatedmessage

Must pay for it

Difficult to getfeedback

2.

Customized

Targeted at a

segment (group) Focused message

More costly

One-shotmessage

Transactionalfeedback

3.

Interactive

Individual level

Iterative Most costly

More complexinfo.Transmission

Immediate &individualfeedback

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1212

1.

Mass

Advertising

Public Relations

2.

Customized

Direct Marketing

Sales Promotions

Social (Viral)

Marketing

3.

Interactive

Personal Selling

Online Marketing

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= Impersonal,undifferentiatedmessage,paid,difficulttogetfeedback

a) Advertising

b) Publicity

c) Spam

1. Mass MarketingCommunications

1313

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= paidnon-personalcommunicationaboutan

organization,good,service,orideabyanidentified

sponsor.

Advertising

1414

$273,750$273,750

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=non-personal presentationofanorganization,good,orservice paidforindirectly (stillneed PR staff).

Publicity

1515

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1616

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= paid,non-personal,unsolicited email.

Spam

1717

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Targetedata segment,focusedmessage,morecostly,one-shotmessage, withtransactionalfeedback

a) DirectMarketing

b) Sales Promotions

c) Public Relations

2. Customized MarketingCommunications

1818

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=acommunicationtargetedtoaspecificaudiencedesignedto elicitsomeresponse(purchase,requestformoreinformation,

orvisittoanoutlet).Directmarketingrequiresdata.

Direct Marketing

1919

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=ashort-terminducementofvaluedofferedtoarouseinterestina potential purchase.

Sales Promotions

2020

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=offormofcommunicationmanagementthatseekstoinfluencethefeelings,opinions,orbeliefsheldbysometargetgroup (customers,stockholders,suppliers, employees) aboutacompanyand whatitsells.

Public Relations

2121

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=aninternet-enabled promotionalstrategythatencouragesindividualstoforwardmarketer-initiatedmessagestoothersvia

emailorsocialnetworkingtools.

Social (Viral) Marketing

2222

http://www.youtube.com/watch?v=JqLDBKvp9mQhttp://www.youtube.com/watch?v=JqLDBKvp9mQ

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Individuallevel,iterative,mostcostly,morecomplex informationtransmission,butoffersimmediate & individualfeedback.

a) Personal Selling

b) Online Experience Management

3. Interactive MarketingCommunications

2323

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=atwo-wayflow ofcommunicationbetweenabuyerandseller,oftenface-to-face,designedtoinfluencea personsor

groups purchasedecision

PersonalSelling

2424

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=managingthecustomer experienceduringtheirinteractionontheorganizationswebsite.

Online ExperienceManagement

2525

http://www.youtube.com/watch?v=2IOZp3wItechttp://www.youtube.com/watch?v=2IOZp3wItec

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How do they strategically fit together?

2626

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Hierarchy-of-Effects Model

PurchasePurchase

Purchase IntentionPurchase Intention

AttitudeAttitude

Beliefs/KnowledgeBeliefs/Knowledge

AwarenessAwareness

UnawarenessUnawareness

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PurchasePurchase


AttitudeAttitude


AwarenessAwareness


Personal Selling,Personal Selling,

DirectDirect Marketing,Marketing,

Online Experience MgtOnline Experience Mgt

Viral Marketing,Viral Marketing,

Focused AdvertisingFocused Advertising,,

Website, PointWebsite, Point--ofof--

Purchase DisplaysPurchase Displays

Mass Advertising,Mass Advertising,

Sponsorship,Sponsorship, PublicityPublicity

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Cost Effectiveness by BuyerReadinessStage

BeliefsBeliefs AttitudeAttitudeAwarenessAwareness PurchasePurchase

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Integrated MarketingCommunications

MKTG 301

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INTEGRATEDMARKETINGCOMMUNICATION

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CHANGETHE LABELS!!!!




PublicityPublicity

DirectDirectMarketingMarketing



ProgramProgram

BrandBrand

EquityEquity



OnlineOnline

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MarComm Strategic Level




PublicityPublicity




ProgramProgram

BrandBrand

EquityEquity



WebsiteWebsite

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Timing Patterns of Communicating

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Mass Communication

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ObjectivesObjectives

Design IMCDesign IMC

Establish BudgetEstablish Budget

Managing MarComm

What is the targetedWhat is the targetedsegment?segment?

TargetTarget AudienceAudience

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Managing MarComm


PurchasePurchase

PurchasePurchase

IntentionIntentionAttitudeAttitude

Beliefs/KnowledgBeliefs/Knowledg

ee

AwarenessAwareness


Customer StateCustomer State

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Managing MarComm


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Designing Messages

Outstandingmessage executionistonoavailunlessthemessageisdeliveredtotherightcustomersattherighttime,and withsufficientfrequency.

FREQUENCYFREQUENCY

EFFECTIVENESSEFFECTIVENESS

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Designing MarComm

TargetTarget AudienceAudience Message SourceMessage Sourcecredibility &credibility &likeabilitylikeability

Information vs.Information vs.

TransformationalTransformationalAppealsAppeals

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DisneyDisney

Hal RineyHal Rineyandand

PartnersPartners

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Designing MarComm

TargetTarget AudienceAudience Establish PoPs andEstablish PoPs andPoDsPoDs

Based on ProductBased on ProductLife CycleLife Cycle

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Designing MarComm

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Designing MarComm

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Designing MarComm

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Managing MarComm

TargetTarget AudienceAudience Affordable MethodAffordable Method

PercentagePercentage--ofof--Sales MethodSales Method

Competitive ParityCompetitive Parity

MethodMethod ObjectiveObjective--andand--

Tasks MethodTasks Method

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PersonalSellingStyles

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Mass Advertising

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Typicalconsumerhitwith 500marketingmessages perdayin 1970s

5,000messages perday 2005

80% peoplefeelinundatedbymarketing

45 %agreemarketingdetractsfrom experienceofeverydaylife

61% Marketing/Advertisingoutofcontrol

70%tuneoutadvertising (Yankelovich Survey 2004)

Mass MarComm isDying

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ROIonTVadvertising= $0.32 (Adworks2 1999)

TV Advertising (+) ROI18%(Deutsche Bank 2004)

Overallcostofreachingage 25-54 300%1995 2005 (Boston Consulting Group)

CPMisthroughtheroof!

1972 CPM= $1.96

2005 CPM= $16.79

Mass MarComm isDying

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Integrated MarketingCommunication

Process

November 7, 2006

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#2. Determine Objective#2. Determine Objective(542)(542)

HierarchyofEffectsHierarchyofEffectsStageofProductStageofProductLifeCycleLifeCycleCompetitionCompetitionBudgetBudget

IMC Process

#1. Identify Target#1. Identify TargetAudienceAudience

WhatisthetargetsWhatisthetargetscurrentstate?currentstate?

How doestheHow doesthetargetprocesstargetprocessinformation?information?

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PurchasePurchase


AttitudeAttitude


AwarenessAwareness



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IMC Process

#3. Design#3. DesignCommunicationCommunication

Linkto PositioningLinkto PositioningStrategy.Strategy.

Category MembershipCategory Membership EstablishEstablish POPsPOPs andand

PODsPODs

Creative Strategy:Creative Strategy:InformationalInformationalAppealsAppealsTransformationalTransformationalAppealsAppeals

#4. Select Channels#4. Select Channels Personal (in person, email,Personal (in person, email,

phone, etc.phone, etc.

Create BuzzCreate BuzzInfluentialsInfluentialsOpinion LeadersOpinion LeadersViral MarketingViral Marketing

NonNon--personalpersonalMediaMedia

PromotionsPromotionsEventsEventsPublic RelationsPublic Relations

IntegratedIntegrated MarketingMarketingCommunicationsCommunications

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MarComm Strategic Level




PublicityPublicity




ProgramProgram

BrandBrand

EquityEquity



WebsiteWebsite

D li i M t T t

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Delivering Message toTargetAudience

Outstandingmessage executionistonoavail

unlessthemessageisdeliveredtotherightcustomersattherighttime,and with

sufficientfrequency.

FREQUENCYFREQUENCY

EFFECTIVENESSEFFECTIVENESS

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IMC Process

#5. Establish Budget#5. Establish Budget

AffordableMethodAffordableMethod PercentagePercentage--ofof--

SalesMethodSalesMethod Competitive ParityCompetitive Parity ObjectiveObjective--andand--TaskTask

#6. Decide on#6. Decide onMarComm MixMarComm Mix

TypeofTypeofservice/productservice/product

BuyerBuyer--readinessstagereadinessstage ProductLifeCycleProductLifeCycle

TypeofToolTypeofTool TimingofmessageTimingofmessage

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PurchasePurchase


AttitudeAttitude


AwarenessAwareness



Personal Selling,Personal Selling,

Direct MarketingDirect Marketing

Advertising, Website,Advertising, Website,PointPoint--ofof--PurchasePurchase

DisplaysDisplays

Mass Advertising,Mass Advertising,

Sponsorship,Sponsorship, PublicityPublicity

Cost Effectiveness by Buyer

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Cost Effectiveness by BuyerReadinessStage

Timing Patterns of

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Timing Patterns ofCommunicating

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IMC Process

#8. Manage IMC#8. Manage IMC1.1. Start with theStart with the

customer or prospect.customer or prospect.

2.2. Use any form ofUse any form of

relevant contact.relevant contact.

3.3. Speak with aSpeak with a singlesingle

voice.voice.

4.4. Build Relationships.Build Relationships.5.5. Achieve synergy.Achieve synergy.

#7. Measure Results#7. Measure Results RatingRating -- %of%of

households whoownahouseholds whoowna

TV were watchingthatTV were watchingthatad.ad.

ShareShare -- %ofTVsin%ofTVsinusethataretunedtousethataretunedto

thethead.ad. Circulation, Web pageCirculation, Web pageexposure,clickexposure,click--throughsthroughs, etc., etc.

ROIROI??

Key Changes of IMC

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Key Changes of IMCApproach

Reduceddependenceonmass-mediaadvertising.

Increasedrelianceonhighlytargeted

communications. Expanded effortstoasses Communication

ROI.

Documents

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