Chapter 8: Integrated Marketing Communications

Integrated Marketing Communications
IMC is a strategic process that marketers use to plan, develop, execute and evaluate co-ordinated, measurable, persuasive marketing communications over time to targeted audiences.
Functions of IMC
To persuade consumers to choose one brand over others.
To remind consumers to continue using certain products.
To inform consumers about new products.
To build relationships with customers.
To assist with other elements of the marketing mix.
Communications Model
Encoding
Decoding
Message
Communication Channel
Noise
Feedback
Receiver
Encoding
The process of translating an idea into a form of communication that will convey meaning.
Decoding
The process by which the receiver assigns meaning to the message.
Message
The communication in physical form that goes from a sender to a receiver.
Communication Channel
A communications vehicle through which the message is transmitted to a target audience.
Noise
Anything that interferes with effective communication.
Feedback
Receivers’ reactions to a message
Receiver
The intended target audience of your communications
Steps in Developing an IMC Campaign
1. Identify the target audience
2. Establish the communications objectives
3. Develop the IMC mix
4. Establish the budget
5. Evaluate the IMC campaign
Push Strategy
Mainly focussing on channel members, trying to push the products into the market.
Pull Strategy
Mainly focussing on end-consumers, trying to create demand for their products in the market.
The Hierarchy of Effects (And Communication Objectives)
Helps establish the communications objectives. It takes a series of messages to move the consumer through several stages.
1. Create awareness
2. Inform the market
3. Create desire
4. Encourage trial
5. Build loyalty
The IMC Mix
Combination of major elements of marketer-controlled communications:
Advertising
Public-relations
Sales promotion
Personal Selling
Interactive marketing communication
(Word-of-mouth)
Strategy and the IMC Mix
Usually company’s promotional strategy uses more than 1 element.
1 Challenge: effective integration of these elements
1 Challenge: ensure consistency with overall marketing mix
Advertising
Non-personal communication paid for by an identified sponsor using mass media to persuade or inform.
Steps in Developing an Advertising Campaign
1. Identify target audience
2. Establish communication objectives
3. Develop promotional strategy
4. Determine the advertising budget
5. Design the advertisements
6. Pre-test what the ad will say
7. Choose media
8. Develop media schedule
9. Evaluate ad campaign
Advertising Budget: Top Down
Starts with the total budget amount and then allocates down on costs.
Percentage-of-sales method: A common, and very simple, technique, where the promotional budget is based on the product’s sales
Competitive-parity method:
Where the firm matches competitive spending, relative to its size
Bottom-up budgeting
Starts with promotional goals and allocates enough money to accomplish them.
Objective-task marketing: Starts by identifying the communication goals and then tries to determine what budget is required.
Allocating the Budget
Deciding how much to spend on advertising and the other elements of the promotional mix.
Will depend on:
Organisational factors
Market potential
Market size
Develop the Promotional Strategy
Introduction: Build awareness and encourage trial
Growth: Stress product benefits
Maturity: Reinforce brand and encourage switching
Decline: Reduce spending
Advertising Appeals
WHY: the unique selling proposition
(USP)
Comparative advertising
Demonstrations
Testinonials
Slice of life
Advertising Appeals
The central idea of the ad:
Fear appeals
Sex appeals
Humorous appeals
Slogans and jingles
The AIDA Model
Ideally a message accomplished four objectives, based on the AIDA model:
Get Attention
Hold Interest
Create Desire
Product Action
Structure of the Message
One-sided messages (supportive arguments): more common
– Present a reason to buy by highlighting positive benefits
Two-sided messages: (present both + and – info): More common
– Used for attitude-change strategies
Choosing the Media
Television
Radio
Newspapers
Magazines
Outdoor media
Directories
Developing a Media Schedule
Media schedule – plan that specifies the exact media to use and when.
Advertising Exposure
Marketers seek to ensure good advertising exposure, which is the extent that the market will see the ad.
Frequency
The number of times a person in the target group will be exposed to the ad.
Reach
Percentage of the market that will be exposed to the ad.
CPM
Cost per thousand, and measures the relative cost effectiveness of the different medias.
TARPs
Target Audience Rating Points: measure advertising weight.
Evaluating the Campaign:
Post Testing
Conducting research on consumers’ responses to the advertising messages AFTER they have seen or heard them.
Evaluating the Campaign:
Aided Recall
Tests whether a consumer remembers an ad, by providing a brand clue.
Evaluating the Campaign: Unaided Recall
Tests whether a consumer remembers an ad, without any prompting.
Public Relations (PR)
Attempts to build favourable relationships with an organisation’s ‘publics’.
PR is often used to influence attitudes and perceptions.
Publicity
Is any unpaid communication about an organisation that appears in the mass media.
(Can be negative or positive)
Objectives of Public Relations
Introducing new products to channel.
Introducing new product to consumers.
Calling attention to a company’s involvement with the community.
Planning a PR Campaign
Statement of objectives
Situation analysis
Specification of target audiences
Messages to be communicated
Specific programme elements to be used
Timetable and budget
Details of the programme evaluation
Public Relation Activities
Press releases
Internal PR
Consumer information releases
Speech writing
Lobbying
Corporate identity
Special events
Media relations
Advice and counsel
PR Activities: Press releases
Information sent directly to media outlets.
PR Activities: Internal Pr
Newsletters and other information targeted at the company’s employees.
PR Activities: Consumer Information Releases
Information provided to help consumers make purchase decisions.
PR Activities: Speech Writing
Speeches prepared for company executives to deliver.
PR Activities: Lobbying
Providing information to government officials in order to persuade them on future legislation.
PR Activities: Corporate Identity
Includes logos, brochures and letterhead.
PR Activities: Special events
Includes hospitality, trade shows, conferences and seminars, and so on.
PR Activities: Media Relations
Developing positive relationships with the media, in order to enhance media exposure.
PR Activities: Advice and Counsel
Advising executives on communications and other publicity activities.
Sales Promotion
Programmes designed to build interest in or encourage purchase of a product during a specified time period.
Sales Promotion Techniques
Price deals – ‘On Sale’
Coupons and rebates
Bonus Packs
Loyalty Programmes
Premiums
Sweepstakes and contest
Sampling
POP (Point of Purchase)
Trade Promotions
Targeted at channel members, not consumers.
Increasing industry visibility
Trade shows
Promotional products
Incentive programmes (push money)
Discounts and deals
Shelf allowance
Case allowance
(Consumer) Sales Promotions
Price-based sales promotions:
Using short-term price reductions to encourage consumers to choose their brand.
e.g. Price deals, Rebates, Frequency programmes, Special/bonus packs
Sales Promotion: Price deals
Temporary price reductions
Sales Promotion: Rebates
Partial refunds directly from the manufacturer
Sales Promotion: Frequency programmes (Loyalty programmes)
Offer incentives for multiple purchases over time
Sales Promotion: Special/bonus packs
Providing additional products with the purchase
Attention-Getting Promotions
Contests and Sweepstakes
Product Placements
Samples
Point-of-purchase promotions (POP)
Cross Promotions
Attention-Getting Promotions: Contest and Sweepstakes
Used as an incentive to buy more products
Attention-Getting Promotions:
Product Placements
Placing the product in a movie or TV show
Attention-Getting Promotions:
Samples
The free trial of a product
Attention-Getting Promotions:
Point-of-purchase (POP)
Exciting displays and/or in-store activities
Attention-Getting Promotions:
Cross Promotion
Joint promotion with another product
Personal Selling
Where a company representative interacts directly with a consumer to communicate about products.
– Allows for direct interaction and feedback.
– Provides lots of product information to the consumer.
– Often used near the end of the decision process.
– Salespeople are also able to provide the firm with lots of information about the marketplace.
– Salespeople are usually a key factor in a customer relationship management (CRM) programme.
Role of Personal Selling
– Encourages the final decision on a purchase.
– Very important in a ‘push’ marketing strategy.
– Also important in creating and maintaining relationships with key customers.
– Used when the customer needs more information, due to the complexity of the purchase.
– However, it is a quite expensive promotional activity.
Approaches Personal Selling:
Transactional Selling
Focussed on an immediate sale, with little concern on future sales.
Approaches Personal Selling:
Relationship Selling
Focused on building customer relationships, in order to generate long-term sales.
The Selling Process
1. Prospecting and qualifying
2. Pre-approach
3. Approach
4. Sales Presentation
5. Handling Objections
6. Close
7. Follow-up
The Selling Process:
Prospecting and Qualifying
Prospecting – identifying and developing a list of potential customers.
Qualifying – process of determining whether a prospect has the potential to become a customer.
*Potential customers are referred to prospects or sales leads.
*Trade shows are a good source of sales leads
*Cold calling is when a salesperson contacts a prospect without any prior connection.
The Selling Process:
Pre-approach
Before approaching a prospect, the salesperson needs to research a customer.
This will help determine the best way to structure his/her approach and presentation.
The Selling Process: Approach
The approach is the first contact with the prospect, which may be by phone or face-to-face.
The approach is important to build rapport and help uncover customer needs.
The Selling Process: Sales Presentation
Sales presentation is when the salesperson discusses the product, its benefits, its competitive advantages, and how the product meets the customer’s needs.
The sales presentation is often structured as a discussion, rather than a formal presentation.
The Selling Process: Objections
Objections are questions that the customer may have, or their reasons not to buy.
An experienced salesperson is usually well prepared for these objections.
The Selling Process: Close
Closing is the stage of the sales process where the salesperson asks the customer to buy the product.
There are several closing approaches that can be used, such as last objection, assumptive and standing-room-only.
The Selling Process: Follow-up
In the follow-up, the salesperson ensures that the product is delivered and attempts to strengthen the relationship for future sales.
Sales Management
Process of planning, implementing and controlling the personal selling function:
Setting sales force objectives
Creating a sales force strategy
Recruiting, trading and rewarding the sales force
Evaluating the sales force
The Sales Management Process:
Setting Sales Force Objectives
Performance objectives (sales and profit targets).
Behaviorial objectives (number of sales calls made).
The Sales Management Process:
Recruitment, Training and Rewarding
Essential in selecting appropriate sales staff and ensuring that they are effectively motivated.
The Sales Management Process: Sales Force Strategy
Determines the structure size of the sales force, including sales territories (which may be geographical, product-based or industrial).
The Sales Management Process:
Evaluating the Sales Force
Reviews whether the sales and marketing objectives have been met, and taking corrective action where necessary.
Direct Marketing
Any direct communication to a consumer (or business) that is designed to generate a response.
– more than just direct mail. Large growing area of promotional expenditure.
Direct Marketing: Response
A sales order
A request for further information
A visit to a store
Direct Marketing: Types of Mail Order
Direct Mail:
A letter and promotional pamphlet offering a specific product for sale at a point in time.
Catalogues:
A collection of products offered for sale in a booklet form.
Other Types of Direct Marketing
Telemarketing:
Direct selling over the phone
Direct-response advertising:
Advertising that allows for a direct response from the consumer, such as a phone call or coupon.
Internet Marketing Communications
Allows for targeting customers, as ads can be delivered on a preference bases.
– The website can generate statistics about visitors and their behaviour.
– This style of advertising is very interactive.
– May be able to generate ‘buzz’ marketing.
Internet Marketing Terms
Banners
Buttons
Pop-up ads
Search engines and directory listings
E-mail
Customising the Message
This is possible via ‘cookies’. which are small text files stored on the user’s computer that contains information about the sites visited.
*Technology enables marketers to customise their messages.
*Consumers may also offer information about themselves.
*Spam is unsolicited email, often sent to thousands of email addresses.
Levels of Interactive Response
First-order response:
Measurement of sales (Referred to as transactional data)
Second-order response:
Measurement of requests for information (Provides a list of ‘interested’ customers)
M-commerce
Marketing activities that are transmitted over mobile phones and other mobile devices.
– Becoming more common
– Provides significant convenience to consumers.
– Often includes SMS
– Some firms use as a standard part of their service, such as Jetstar and ANZ banking.
Finding the Right IMC Balance
– Finding the combination mis is KEY in an IMC campaign.
– The balance depends on the number of factors, including the type of product.
– The mix should change over time as your product and the market develops.