Integrated Marketing Communications and Promotion Strategy

What is IMC and why is it becoming increasingly important?
-The coordination of communication mix to reach consumers with a powerful unified effect.

-Important because of the shift from traditional advertising, mass media, traditional competition and limited internet access to digital/interactive media, specialized media, performance based compensation and widespread internet availability

-Integrating all promotional tools so that they work together effectively

-Clarity, consistency, and impact

-Larger companies and need to be consistent

-Harder to reach consumers

What are the components of the communication mix?
Personal selling
Advertising
Sales promotions
Public relations
Sponsorship
How do firms design an IMC strategy?
Targeting and Positioning Strategy
Budget
Communication objectives
Role of IMC components
Message/Media
Evaluate effectiveness
List various communication objectives, and how do they impact IMC strategy?
Inform: consumers store for later use

Persuade: change attitudes

Remind: Keep the product in the consumer’s mind

Reinforce: encourage repeat buying

Impact pricing, promotions

What are eye tracking and heat maps used for?
Eye tracking: monitoring people’s eye movements

Heat map: how long eyes stay in one area

-Naturally we look at faces longer than texts

-Allows us to study effectiveness of advertisements

How do firms determine their advertising budgets? What are % of sales, competitive, and payout methods?
1. Organize Financial Information:

-% of sales: using a percentage of sales for advertising

-Competitive: using the advertising budgets of others to shape yours

-Payout method: Determine the investment value of the advertising and promotion appropriation
-Projects the revenues a product will generate, as well as the costs it will incur.
-Better and logical approach to budget setting than the top-down approach

2. Determine where you want to spend your marketing funds
-Budget size
-Past experience

3. Assess data and make changes

What is direct marketing?
-Interactive system of marketing, which uses one or more advertising media to affect a measurable response and transaction at any location

-examples: Direct Mail, email, Telemarketing, Direct response/Internet, Catalogs, Personal Selling, Infomercials, Coupons, Social Media

What is SEM? How does it work?
Search Engine Marketing (SEM):

Buying traffic through paid search listings (you buy a keyword, you pay for it per click)

-example: Coffee shops by the words to have it appear first at the top of the list

What is SEO and how does it differ from SEM?
Search Engine Optimization (SEO):

Buying traffic through paid search listings (personal selling, infomercials, coupons, SMS marketing, social media)

What is behavioral marketing?
moving away from traditional and towards basing it on past behaviors
What are site retargeting, search retargeting, conquesting, mobile optimization, and data onboarding?
-Site Retargeting: tracks visitors after they leave the company’s page and presents the ads on other sites on the internet

-Search Retargeting: Qualifies buyers by their keywords and then presents the ads

-Conquesting: Provides information on competitor’s

-Mobile optimization: making sure the experience of a mobile visit is optimized

-Data On-boarding: Leverages customer relationship management system

I may give you an example of an ad or an ad copy and have you critique it (much like we did with the Crime Stoppers brochure)
In this example, we had to identify what to fix. The flyers should have been combined into one and been more explanatory. Too many nonsense words and graphics were not pleasing.
Nike Football Case:
What strategies did Nike implement to break into the soccer/football market? How did the company overcome late-mover disadvantage?
-They delivered their top of the line performance products to the top footballers in the world.

-Nike sponsored Brazil in 1994, they then created a whole department dedicated to only soccer.

-They had sponsored athletes in the final match of the world cup tournament and 10 out the 22 players on the field wore Nike and no one wore Adidas.

Nike Football Case:
How did soccer/football positioning differ from the overall Nike brand positioning?
-They weren’t as focused on performance as they are in other sports, in efforts to to deliver innovative high-performance football products to the consumer.

-They sponsor Lebron b/c he is the best, but they picked Brazil b/c they were fun and carefree

-The soccer/football positioning differed because it was the world’s most popular sport.

In your opinion, why did not Nike explicitly highlight its sustainability practices in its advertisements during the World Cup in South Africa?
-Goes away from the carefree, fun attitude that they were building.

-They want Nike to be seen as the company that brought performance and innovation to the jerseys at the World Cup, not the company that had the green shirt.

-Nike suffered poor reputation damage in 1990 due to accusations of poor working conditions in the factories located in developing countries.

-In efforts to try to remove the negative connotation form their brand they wanted to focus on sustainability and corporate responsibility.

What are the implications of changing a target market to FOTs (in terms of product, positioning, advertising, media etc)?
“Football Obsessed Teen”

-Focus on function, neon shoes
-More independent and more serious about the sport
-Started getting best players to endorse

How does the World Cup differ from Superbowl (advertising strategies, costs etc.)?
Superbowl: 1 day, 1 match, 120.8 million viewers, 30 sec ad: $4,500,000

-You want to be memorable since the cost is so high, so you want something that people will talk about for weeks or months to come.

World Cup: 64 matches, 1 month, 1 billion world viewers, 30 sec: $250,000

-You want to advertise throughout the World Cup, so you want to be memorable but not annoying to where people turn you off after awhile.

-You need to keep things fresh and release more than just one commercial on your product so it’s not mind numbing and repetitive.

What was so unique about Adidas’s advertising during World Cup in 2014?
-They used clips of people from all over the world, and made their ads in the moment (real time marketing).

-They waited until after the games to use relevant players and the teams that would be paired up.

-The team they sponsored, Germany, made it to the final match and won the world cup that year.