IMC Communication ToolsIMC Communication ToolsAdvertisingDirectMarketingInteractive/Internet MarketingSalesPromotionPublicity/PublicRelationsPersonalSelling

AdvertisingDisadvantages of advertisingHigh costs of producing and running adsCredibility problems and consumer skepticismClutterDifficulty in determining effectiveness

Advantages of advertisingAdvertiser controls the messageCost effective way to communicate with large audiencesEffective way to create brand images and symbolic appealsOften can be effective way to strike responsive chord with consumersAny paid form of nonpersonal communication about an organization, product, service, idea or cause by an identified sponsor.

Classifications of Advertising Advertising to Consumer MarketsNational advertisingRetail/local advertisingAdvertising to increase demandPrimary demand for the product categorySelective demand for a specific brandBusiness & professional advertisingBusiness-to-business advertisingProfessional advertisingTrade advertising

Direct Marketing

Disadvantages of direct marketingLack of customer receptivity and very low response ratesClutter (too many messages)Image problems particularly with telemarketing

Advantages of direct marketingChanges in society have made consumers more receptive to direct-marketingAllows marketers to be very selective and target specific segments of customersMessages can be customized for specific customers.Effectiveness easier to measureA system of marketing by which organizations communicate directly with target customers to generate a response and/or a transaction.

Direct MarketingDirect marketing methodsDirect mailCatalogsTelemarketingDirect response adsDirect sellingInternet

Interactive/Internet MarketingDisadvantages of interactive/ internet marketingInternet is not yet a mass medium as many consumers lack accessAttention to Internet ads is very lowGreat deal of clutter on the InternetAudience measurement is a problem on the Internet

Advantages of interactive/ internet marketingCan be used for a variety of IMC functions Messages can be tailored to specific interests and needs of customersInteractive nature of the Internet leads to higher level of involvementCan provide large amounts of information to customers.A form of marketing communication through interactive media which allow for a two-way flow of information whereby users can participate in and modify the content of the information they receive in real time.

Interactive/Internet MarketingUse of the Internet as an IMC ToolAs an advertising medium to inform, educate and persuade customersAs a direct sales tool To obtain customer database informationTo communicate and interact with buyersTo provide customer service and supportTo build and maintain customer relationshipsAs a tool for implementing sales promotion As a tool for implementing publicity/public relations programs

The Internet is an important IMC tool for American Airlines Source: Courtesy American Airlines.

Sales PromotionTrade-orientedTargeted toward marketing intermediaries such as retailers, wholesalers, or distributorsPromotion allowancesMerchandise allowancesPrice dealsSales contestsTrade showsConsumer-orientedTargeted to the ultimate users of a product or serviceCouponsSamplingPremiumsRebatesContestsSweepstakesPOP materialsMarketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales.

Sales Promotion UsesIntroduce new productsGet existing customers to buy moreAttract new customersCombat competitionMaintain sales in off seasonIncrease retail inventoriesTie in advertising & personal sellingEnhance personal selling efforts

PublicityAdvantages of publicityCredibilityLow cost (although not totally free)Often results in word-of-mouthDisadvantages of publicityNot always under control of organizationCan be negativeNonpersonal communication regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship.

Publicity VehiclesNews Releases:Single-page news stories sent to media who might print or broadcast the content.Feature Articles:Larger manuscripts composed and edited for a particular medium.Press Conferences:Meetings and presentations to invited reporters and editors.Special Events:Sponsorship of events, teams, or programs of public value.

Advertising Versus PublicityFACTORADVERTISINGPUBLICITYControlGreatLittleCredibilityLowerHigherReachAchievableUndeterminedFrequencySchedulableUndeterminedCostSpecificUnspecified/lowFlexibilityHighLowTimingSpecifiableTentative

Public RelationsTools used by Public RelationsPublicitySpecial publicationsCommunity activity participationFund-raisingSpecial event sponsorshipThe management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.

Personal SellingDisadvantages of personal sellingHigh costs per contactExpensive way to reach large audiencesDifficult to have consistent and uniform message delivered to all customers

Advantages of personal sellingDirect contact between buyer and seller allows for more flexibilityCan tailor sales message to specific needs of customersAllows for more direct and immediate feedbackSales efforts can be targeted to specific markets and customers who are best prospects.Direct person-to-person communication whereby a seller attempts to assist and/or persuade perspective buyers to to purchase a product or service.

Promotional ManagementConsiderations for developing the promotional program include:Type of productBuyers decision processStage of product life cycleChannels of distributionCoordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.

Integrated Marketing Communications Planning Model

The Marketing PlanA document that describes the overall marketing strategy and programs developed for a company, product or brand. The plan includes:A detailed situation analysisSpecific marketing objectivesA marketing strategy and program that includes selection of a target market and plans for marketing mix elements4.A program for implementing the strategy5.A process for monitoring and evaluating performance

Situation AnalysisInternal FactorsAssessment of the firms promotional organization and capabilitiesReview of the firms previous promotional programsAssessment of firm or brand image and implications for promotionAssessment of relative strengths and weaknesses of product/serviceExternal FactorsCustomer analysisCompetitive analysisEnvironmental analysis

IMC Program Situation AnalysisExternal FactorsEnvironmental analysisTechnologicalPolitical/LegalDemographicSocio/CulturalEconomicCompetitive AnalysisDirect and indirect competitorsPosition relative to competitorsSize of competitors advertising/promotional budgetsIMC strategies being used by competitors

IMC Program Situation AnalysisExternal FactorsCustomer AnalysisWho buys our product or service?Who initiates and makes the decision to purchase and who influences the process?How is the purchase decision made? What attributes or criteria are important to customers?What are customers perceptions of and attitudes toward our company, product/service or brands?What factors influence the decision making process?Contact points where customers can be reached?

Analysis of Communications Process

Analyze best combination of source,message and channel factors for communicating with target audience.

Establish communication goals and objectives.

Potential Communications ObjectivesSalesCustomer loyaltyCompany imageBrand imageStore patronageService contractAn inquiryA visit by a prospectProduct trialRecommendationAdoption of the product

Contact Points Where Customers Can Be Effectively ReachedMass media Broadcast - radio/TVNewspapersMagazinesDirect MarketingInternet/interactiveBrochures, sales literaturePublicity/PREvents/sponsorshipsLocalRegionalNational/internationalSales PromotionsIn-store/POPProduct placements in movies and television showsPromotional products

Develop Integrated Marketing Communications ProgramAdvertisingDetermine objectives and budgetMessage developmentCalled Creative StrategyDetermine basic appealDetermine main messageMedia strategyCommunication channelsType of media . . .Newspapers/MagazinesRadio/TelevisionOutdoor/SpecialtySelect specific media Specific papers, magazines, TV programs, radio stations, billboards, or other media

Integrate and Implement Marketing Communications StrategiesIntegrate promotional mix strategies.Create and produce ads.Purchase media time and spaceDesign and implement direct marketing programsDesign and implement sales promotion programDesign and implement public relations/ publicity programsDesign and implement interactive/internet marketing programs

Monitor, Evaluate and Control Integrated Marketing Communications ProgramEvaluate promotional program results and determine effectiveness

Take actions to control and adjust promotional programs

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