INTEGRATED MARKETING COMMUNICATIONS

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1 INTEGRATED MARKETING COMMUNICATIONS What is IMC & why IMC? IMC is the concept and practice of designing marketing communications programs that coordinate all promotional activities Ad, PS, SP, PR, publicity, and direct marketing so as to provide a consistent message across all audiences of the organization. The Communications Process: Key components: * endcoding: idea symbols * decoding: reverse: interpret symbols into the original idea and meaning communication process breakdowns * poor encoding * poorly or misdirected * wrong channel * faulty decoding Integrated Marketing Communication 1

2 Field of experience: similar understanding and knowledge of both sender & receiver e.g. share similar cultural context Problematic: transplanting communication to a foreign market Promotional Mix: Advertising: paid, non-personal, targeted; sender in control of how, when, to whom Personal selling: 2-way comm., face-toface, highly focused, expensive Public relations: influence feelings, opinions, beliefs lobbying, press conferences Publicity: non-personal, indirectly paid get a favorable story out Plus: credibility believable Minus: lack of control over what is said Integrated Marketing Communication 2

3 Sales promotion: short-term inducement Coupons, rebates, samples, sweepstakes Plus: stimulates sales during promo period Minus: gains are temporary; effectiveness wear-out with repetition Direct marketing: many forms Face-to-face; direct mail; telephone solicitations; catalogs; online marketing Fastest growing forms Minuses: need comprehensive/current database very expensive & time consuming; concerns about privacy Integrated Marketing Communication 3

4 IMC Basic Issues WHO? the target audience determines the comm. vehicle & medium/media consumer vs biz; nature of products The PLC: adjustments Intro: awareness use all tools available Growth stage: persuasion consumers: ads gain brand preference; biz: channel distribution shelf space Maturity: keep buyers/loyalty repeat purchase reminders Use combination: ads, discounts, coupons, price cuts Decline: phase out very low key Integrated Marketing Communication 4

5 Product characteristics: Complexity: More complex PS Risk: greater risk PS Ancillary services: maintenance; PS Stages of the buying decision Pre-purchase: ads awareness; samples Purchase: sales promo; ad deliver coupons, deals, rebate Post-purchase: assurance ads reduce PPD Channel strategies Pull vs push Integrated Marketing Communication 5

6 IMC HOW TO? WHO: target audience Know intimately lifestyle, attitudes, values, media habits, shopping habits WHAT1: Promo objectives link to hierarchy of effects: awareness interest evaluation trial adoption WHAT2: Promo budget setting * % sales *competitive parity * affordability * objective and task WHAT3: kinds of promo Diverse audiences, tools, contexts Combinations can achieve same objective WHERE: promo design creativity Know what tools for which audience, product relate to consumer interests & buying beh Integrated Marketing Communication 6

7 WHEN: scheduling Seasonality skiing, travel Timing & sequencing of promo program esp in new product introduction EXECUTION design & use Measure effectiveness: Pre-test & post-test test result database IMC measure complicated becos different phases of campaign with different objectives Media ad awareness Sales promo generate inquiry Direct mail more info PS conclude transaction IMC goal: SYNERGY Integrated Marketing Communication 7

8 DIRECT MARKETING Direct mail & catalogs, TV, telemarketing, direct selling Explosive growth in DM Factoids: DM expenditures >$300B; Revenues > $3 trillion; Employment >20 million WHY? Increasing interest in CRM customize communication; 1-on-1 intereactions Technology: hardware and software databases; Internet: Sales. $150 billion Increasing consumer access to Internet Increasing # online biz Integrated Marketing Communication 8

9 Benefits to biz: Geographically unbounded Time unbounded Create more value guarantees Customers ready to buy Orders 24/7 Generate sales leads from info ads Traffic generation Benefits to consumers: No need to go to store 24/7 availability saves time saves money no hassles with salespeople privacy excellent customer service Integrated Marketing Communication 9

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