Integrated Marketing Communications and Promotion Strategy
-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
Role of IMC components
Persuade: change attitudes
Remind: Keep the product in the consumer’s mind
Reinforce: encourage repeat buying
Impact pricing, promotions
Heat map: how long eyes stay in one area
-Naturally we look at faces longer than texts
-Allows us to study effectiveness of advertisements
-% 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
3. Assess data and make changes
-examples: Direct Mail, email, Telemarketing, Direct response/Internet, Catalogs, Personal Selling, Infomercials, Coupons, Social Media
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
Buying traffic through paid search listings (personal selling, infomercials, coupons, SMS marketing, social media)
-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
What strategies did Nike implement to break into the soccer/football market? How did the company overcome late-mover disadvantage?
-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.
How did soccer/football positioning differ from the overall Nike brand positioning?
-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.
-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.
-Focus on function, neon shoes
-More independent and more serious about the sport
-Started getting best players to endorse
-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.
-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.