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Integrated Marketing Communications

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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.

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Functions of IMC

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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.

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Communications Model

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Encoding Decoding Message Communication Channel Noise Feedback Receiver

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Encoding

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The process of translating an idea into a form of communication that will convey meaning.

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Decoding

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The process by which the receiver assigns meaning to the message.

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Message

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The communication in physical form that goes from a sender to a receiver.

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Communication Channel

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A communications vehicle through which the message is transmitted to a target audience.

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Noise

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Anything that interferes with effective communication.

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Feedback

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Receivers' reactions to a message

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Receiver

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The intended target audience of your communications

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Steps in Developing an IMC Campaign

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1. Identify the target audience 2. Establish the communications objectives 3. Develop the IMC mix 4. Establish the budget 5. Evaluate the IMC campaign

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Push Strategy

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Mainly focussing on channel members, trying to push the products into the market.

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Pull Strategy

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Mainly focussing on end-consumers, trying to create demand for their products in the market.

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The Hierarchy of Effects (And Communication Objectives)

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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

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The IMC Mix

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Combination of major elements of marketer-controlled communications: Advertising Public-relations Sales promotion Personal Selling Interactive marketing communication (Word-of-mouth)

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Strategy and the IMC Mix

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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

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Advertising

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Non-personal communication paid for by an identified sponsor using mass media to persuade or inform.

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Steps in Developing an Advertising Campaign

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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

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Advertising Budget: Top Down

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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

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Bottom-up budgeting

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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.

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Allocating the Budget

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Deciding how much to spend on advertising and the other elements of the promotional mix. Will depend on: Organisational factors Market potential Market size

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Develop the Promotional Strategy

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Introduction: Build awareness and encourage trial Growth: Stress product benefits Maturity: Reinforce brand and encourage switching Decline: Reduce spending

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Advertising Appeals

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WHY: the unique selling proposition (USP) Comparative advertising Demonstrations Testinonials Slice of life

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Advertising Appeals

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The central idea of the ad: Fear appeals Sex appeals Humorous appeals Slogans and jingles

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The AIDA Model

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Ideally a message accomplished four objectives, based on the AIDA model: Get Attention Hold Interest Create Desire Product Action

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Structure of the Message

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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

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Choosing the Media

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Television Radio Newspapers Magazines Outdoor media Directories

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Developing a Media Schedule

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Media schedule - plan that specifies the exact media to use and when.

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Advertising Exposure

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Marketers seek to ensure good advertising exposure, which is the extent that the market will see the ad.

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Frequency

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The number of times a person in the target group will be exposed to the ad.

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Reach

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Percentage of the market that will be exposed to the ad.

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CPM

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Cost per thousand, and measures the relative cost effectiveness of the different medias.

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TARPs

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Target Audience Rating Points: measure advertising weight.

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Evaluating the Campaign: Post Testing

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Conducting research on consumers' responses to the advertising messages AFTER they have seen or heard them.

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Evaluating the Campaign: Aided Recall

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Tests whether a consumer remembers an ad, by providing a brand clue.

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Evaluating the Campaign: Unaided Recall

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Tests whether a consumer remembers an ad, without any prompting.

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Public Relations (PR)

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Attempts to build favourable relationships with an organisation's 'publics'. PR is often used to influence attitudes and perceptions.

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Publicity

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Is any unpaid communication about an organisation that appears in the mass media. (Can be negative or positive)

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Objectives of Public Relations

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Introducing new products to channel. Introducing new product to consumers. Calling attention to a company's involvement with the community.

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Planning a PR Campaign

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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

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Public Relation Activities

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Press releases Internal PR Consumer information releases Speech writing Lobbying Corporate identity Special events Media relations Advice and counsel

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PR Activities: Press releases

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Information sent directly to media outlets.

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PR Activities: Internal Pr

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Newsletters and other information targeted at the company's employees.

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PR Activities: Consumer Information Releases

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Information provided to help consumers make purchase decisions.

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PR Activities: Speech Writing

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Speeches prepared for company executives to deliver.

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PR Activities: Lobbying

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Providing information to government officials in order to persuade them on future legislation.

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PR Activities: Corporate Identity

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Includes logos, brochures and letterhead.

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PR Activities: Special events

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Includes hospitality, trade shows, conferences and seminars, and so on.

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PR Activities: Media Relations

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Developing positive relationships with the media, in order to enhance media exposure.

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PR Activities: Advice and Counsel

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Advising executives on communications and other publicity activities.

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Sales Promotion

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Programmes designed to build interest in or encourage purchase of a product during a specified time period.

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Sales Promotion Techniques

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Price deals - 'On Sale' Coupons and rebates Bonus Packs Loyalty Programmes Premiums Sweepstakes and contest Sampling POP (Point of Purchase)

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Trade Promotions

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Targeted at channel members, not consumers. Increasing industry visibility Trade shows Promotional products Incentive programmes (push money) Discounts and deals Shelf allowance Case allowance

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(Consumer) Sales Promotions

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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

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Sales Promotion: Price deals

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Temporary price reductions

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Sales Promotion: Rebates

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Partial refunds directly from the manufacturer

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Sales Promotion: Frequency programmes (Loyalty programmes)

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Offer incentives for multiple purchases over time

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Sales Promotion: Special/bonus packs

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Providing additional products with the purchase

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Attention-Getting Promotions

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Contests and Sweepstakes Product Placements Samples Point-of-purchase promotions (POP) Cross Promotions

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Attention-Getting Promotions: Contest and Sweepstakes

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Used as an incentive to buy more products

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Attention-Getting Promotions: Product Placements

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Placing the product in a movie or TV show

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Attention-Getting Promotions: Samples

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The free trial of a product

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Attention-Getting Promotions: Point-of-purchase (POP)

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Exciting displays and/or in-store activities

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Attention-Getting Promotions: Cross Promotion

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Joint promotion with another product

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Personal Selling

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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.

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Role of Personal Selling

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- 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.

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Approaches Personal Selling: Transactional Selling

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Focussed on an immediate sale, with little concern on future sales.

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Approaches Personal Selling: Relationship Selling

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Focused on building customer relationships, in order to generate long-term sales.

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The Selling Process

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1. Prospecting and qualifying 2. Pre-approach 3. Approach 4. Sales Presentation 5. Handling Objections 6. Close 7. Follow-up

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The Selling Process: Prospecting and Qualifying

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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.

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The Selling Process: Pre-approach

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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.

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The Selling Process: Approach

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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.

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The Selling Process: Sales Presentation

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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.

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The Selling Process: Objections

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Objections are questions that the customer may have, or their reasons not to buy. An experienced salesperson is usually well prepared for these objections.

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The Selling Process: Close

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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.

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The Selling Process: Follow-up

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In the follow-up, the salesperson ensures that the product is delivered and attempts to strengthen the relationship for future sales.

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Sales Management

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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

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The Sales Management Process: Setting Sales Force Objectives

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Performance objectives (sales and profit targets). Behaviorial objectives (number of sales calls made).

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The Sales Management Process: Recruitment, Training and Rewarding

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Essential in selecting appropriate sales staff and ensuring that they are effectively motivated.

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The Sales Management Process: Sales Force Strategy

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Determines the structure size of the sales force, including sales territories (which may be geographical, product-based or industrial).

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The Sales Management Process: Evaluating the Sales Force

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Reviews whether the sales and marketing objectives have been met, and taking corrective action where necessary.

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Direct Marketing

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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.

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Direct Marketing: Response

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A sales order A request for further information A visit to a store

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Direct Marketing: Types of Mail Order

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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.

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Other Types of Direct Marketing

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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.

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Internet Marketing Communications

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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.

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Internet Marketing Terms

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Banners Buttons Pop-up ads Search engines and directory listings E-mail

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Customising the Message

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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.

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Levels of Interactive Response

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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)

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M-commerce

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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.

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Finding the Right IMC Balance

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- 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.

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