Integrated Marketing Communications

IMC
• Customer
– Heart of IMC
• IMC strategy
– Customer wants
• Receiver focused messages
Integrated Marketing Communication

• Promotion
• Marketing Communications
– intended
– unintended
• Coordination
• Teamwork
 Integrated Marketing Communication

• Role of Database
– internet

• Steps
– information collection
– dissemination
– shared interpretation
The Communication Process

Sender Encoding Channel

Noise Receiver

Feedback Response Decoding

 3 tasks of messages
• AIDA concept

• Gains receiver’s attention

• Both receiver & sender understand
• Stimulates receivers needs by
– Suggesting method to satisfy them
 Promotional Objectives
• Provide information
– introduction
– availability
– usefulness/uses

• Increase demand
– primary
– selective
 Promotional Objectives
• Differentiation
– growth/maturity
– product value

• Stabilize sales
– cyclical
– seasonal
– irregular demand
 Promotional Mix
• selling • promotion tools
– personal – advertising
• paid, nonpersonal,
– Non-personal identified
– product
placement
• paid, nonpersonal
• controversial
Promotional Elements: tools
–sales promotion
• time-limited, action-oriented
• POP displays
• coupons
• premiums
• contests
• sweepstakes, etc.
• Trade promotions
 Promotional Elements: tools
• direct marketing
• use many media
– public relations
• positive press
• “unpaid”
– publicity
• “free” advertising
Promotional Elements: more tools
– guerilla – sponsorships
marketing • sporting or cultural
• unconventional events, teams, etc.
– “buzz marketing” • spending now $11B
per year
• growth
• differs from advertising
• assessing results
 Direct Marketing
Businesses communicate straight to the
consumer with advertising techniques such
as fliers, catalogue distribution, promotional
letters, and street advertising.

Direct marketing is a form of advertising

 that reaches its audience without using
traditional formal channels of advertising,
such as TV, newspapers or radio
 Direct Marketing
• Direct Mail
– internal/external sources
• Catalogs
– Began late 1800’s
– over 10,000
• Telemarketing
– outbound
– inbound
 Direct Marketing
• Broadcast channels
– direct response ads
– home shopping
• QVC
• HSN
– Infomercial
• Electronic
– web
– email
• Others
 Developing the Mix:
Influence Factors
• nature of the market – stage in PLC
• limited number of
buyers • introduction
• large, dispersed • growth
market
• maturity
• intermediaries
– nature of the product • decline
• standardized – product price
• consumer vs.
business
• low
• high
 Push versus Pull Strategies
Manufacturer Manufacturer

Push Pull

Wholesaler Wholesaler

Retailer Retailer

Consumer Consumer
 Promotion Budgeting
• Percentage of • Competitive parity
sales method – spending what others
– a fixed $ of current do
or projected • Task & Objective
• Sum per unit – set objectives
– fixed amount based – select tasks
on sales – cost out
– sum up
Promotion Budgeting
 Measuring Effectiveness
• Promotional • Indirect
Objectives – meeting
– to inform
objective
– to persuade
– recall
– to remind
– readership
• Direct Sales
– sales per $
 Measuring Effectiveness
• Online measurement
– hits/visits
– ability to measure action
– two techniques for setting price
• CPM
• click-throughs
Social Issues –Promotion Value
• Criticism • Response
– taste – freedom of
– lack of choice
contribution – information
– cost – used for socially
– persuasive intent valued causes
 Social Issues
• Non-profit • Economic(512)
– use promotion – Economies of
as well Scale
– Large employment
– <units sold =
– it’s effective Lowers costs/unit