Marketing Chapter 8: Integrated Marketing Communications

What is Integrated Marketing Communications (IMC)?
A strategic process that marketers use to plan, develop, execute and evaluate co-ordinated, measurable, persuasive marketing communications programmes over time to targeted audiences
What are the 5 basic functions of IMC?
1. Inform: consumers about new products, including explaining product attributes and value provided; where they can purchase them, and introducing new uses for existing products
2. Remind: consumers to continue using particular products and keep the products and brand name in consumer’s minds
3. Persuade: consumers to choose one organisation’s offering over competitor’s offering by influencing consumer attitudes and encouraging brand switching
4. Build: relationships with consumers, creating and maintaining long-term relationships
5. Assist: the other elements of the marketing mix to achieve the company’s marketing objectives
What are the 5 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
What is a Push strategy?
When marketers focus their marketing communications at wholesalers, who in turn, direct their marketing communications at retailers – essentially ‘pushing’ products to the next level. This would be appropriate where consumers make their purchase decisions solely in the retail outlet.
What is a Pull strategy?
When marketers direct their marketing communication efforts at consumers, who then demand products from retailers, who, in turn, demand products from wholesalers & manufacturers – essentially ‘pulling’ products through the channel. This would be appropriate where consumer gather info and decide about their purchases before entering the retail outlet (speciality goods).
What is the SMART Criteria?
Specific, Measurable, Attainable, Realistic & have a Time Frame
What is the Hierarchy of Effects?
Awareness -> Knowledge -> Desire -> Purchase -> Loyalty
What is the IMC Mix?
Combination of the major elements of marketer-controlled communications, including advertising, public relations, sales promotion, personal selling and interactive marketing communications
What are Public Relations?
Develops goodwill between an organisation and its various publics using mass communication
What are Rebates?
Sales promotions that allow the customer to recover part of the product’s cost from the manufacturer
What are Trade Sales Promotions?
Focused on members of the ‘trade’, which includes distribution channel members such as retail salespeople or wholesale distributors that a company must work with in order to sell its product
What is a Trade Allowance?
A discount to the retailer or wholesaler based on the volume of product ordered, for stocking new products or providing in-store support
What is Push Money?
A bonus paid by a manufacturer to a salesperson or channel for selling its product
What are Promotional Products?
Branded items provided free to channel members to build brand awareness and visibility
What is Personal Selling?
Interpersonal communication between a representative of the organisation and a potential customer for the purpose of making sales and building customer relationships
What is Transactional Selling?
A form of personal selling that focuses on making an immediate sale with little or no attempt to develop a relationship with the customer
What is Relationship Selling?
A form of personal selling that involves securing, developing and maintaining long-term relationships with profitable customers
What are the 7 steps in the Creative Selling Process?
1. Prospecting and qualifying
2. Pre-approach
3. Approach
4. Sales presentation
5. Handling objections
6. Close
7. Follow-up
1. Prospecting
Includes identifying and developing a list of potential or prospective customers
2. Pre-approach
Includes developing information about prospective customers and planning the sales approach
3. Approach
First step of the actual sales presentation in which the salesperson tries to learn more about the customer’s needs, create a good impression and build rapport
4. Sales presentation
Salesperson directly communicates the value proposition to the customer, involving two-way communication
6. Close
Salesperson actually asks the customer to buy the product
What is Permission Marketing?
Email advertising where consumers have the opportunity to accept or refuse the unsolicited email
What are Top-down marketing techniques?
Allocation of the budget based on the total amount to be devoted to marketing communications
What is the Percentage-of-sales method?
A method for budgeting that is based on a certain percentage of either the previous year’s sales or estimates for the current year’s sales
What is the Competitive-parity method?
A budgeting method in which an organisation matches whatever competitors are spending
What are Bottom-up budgeting techniques?
Allocation of the budged based on identifying communications objectives and allocating enough money to accomplish them
What are Objective-task methods?
A budgeting method in which an organisation first defines the specific communications objectives it hopes to achieve and then tries to calculate the marketing communications efforts needed to meet those objectives
What is Guerrilla marketing?
Use of creative, low-budget marketing efforts
What is Post-testing?
Research conducted on consumers’ responses to actual advertising messages they have seen or heard
What is Unaided recall?
A research technique that asks respondents whether they recall seeing an advertisement for a particular product during a specified period, without naming the brand
What is Aided recall?
A research technique that uses clues to prompt answers from people about advertisements they might have seen
What are Attitudinal measures?
A research technique that probes a consumer’s beliefs or feelings about a product before and after being exposed to messages about it