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Integrated Marketing Communications (IMC)


• IMC
    –   Concept
    –   Promotional mix
    –   Communications process
    –   Response Hierarchy
    –   Determinants
•   Advertising
•   Sales promotion
•   Publicity
•   Personal selling
•   Social media
Integrated Marketing Communications

• IMC Concept
   – Consistency
   – Leverage pieces
   – Whole greater than parts

• Promotional mix
   –   Advertising
   –   Sales promotion
   –   Publicity
   –   Personal selling

   – Web 2.0/social media
   – Crossing boundaries
Integrated Marketing Communications


Advertising     Sales Promo       Publicity   Sales



   Ad            Sales Promo          PR
 Agency           Agency              Firm


Strategy        Strategy          Strategy    Strategy




                           Customer
Integrated Marketing Communications


                       Marketing Strategy


Advertising       Sales Promo         Publicity     Sales

   Ad             Sales Promo           PR
  Agency              Firm


                           Message


                           Customer
Integrated Marketing Communications
Integrated Marketing Communications:
        Communications Model


        Sender/Message

            Encoding

             Medium
                            Feedback
            Decoding

            Receiver
Integrated Marketing Communications:
                     Communications Model


Objectivece/Me   e/          Sender/Message
Message
Creative

Creative                     Encoding

Channel/Media                Channel

                                              Feedback
                             Decoding

Target                        Receiver

Assessment
Integrated Marketing Communications


• Target, message, objective
   •   Marketing decisions
   •   Come from strategy, positioning
   •   Business purpose of
       communication


• Target: Push or Pull?

• Objective: Response
  Hierarchy
   •   Cognitive
   •   Affective
   •   Behavioral
Integrated Marketing Communications




Manufacturer           Push   Retailer               Consumer


                                              Pull


                       Pull


                              Media
Integrated Marketing Communications

Response Hierarchy               Buying Process
  – Note AIDA in text
  – Cognitive stage              Need Recognition
     • Awareness                 Information Search
     • Knowledge
  – Affective stage              Alternative Evaluation
     • Liking
     • Preference
     • Conviction
  – Behavioral stage             Purchase
     • Action                    Post-Purchase
     • Post-purchase

  – Reminder
Integrated Marketing Communications


• Creative
  • Agency


• Channel
  • Advertising
     •   Media
  • Sales Promotion
     •   Method/media
  • Publicity
     •   Media
  • Personal Selling
  • Web 2.0
     •   Media
Integrated Marketing Communications


• Advertising
   – Paid media placements
   – Advantages
      • Reaches mass market
      • Control over
        message/consistent
      • Can be creative
      • Cost effective per exposure
   – Disadvantages
      •   Impersonal
      •   Control over situation
      •   Inflexible
      •   One-way/feedback
      •   Often substantial overall cost
Integrated Marketing Communications


• Sales Promotion
  – Value-adding incentives
  – Advantages
      • Reaches mass market
      • Control over
        message/consistent
      • Can be creative
      • Predictable costs
      • Measurable
  – Disadvantages
      •   Impersonal
      •   Control over situation
      •   Inflexible
      •   One-way communication
      •   Sales promotion trap
Integrated Marketing Communications


• Publicity
   – Non-paid media or word-of-
     mouth
                                M&M’S drops Kyle Busch for rest of 2011
   – Advantages
       • Reaches mass market, can
         reach hard-to-reach segments
       • No media costs
       • Credible
   – Disadvantages
       •   Impersonal
       •   Control over situation
       •   Inflexible
       •   One-way communication
       •   Control over message
       •   No repetition
Integrated Marketing Communications


• Personal Selling
   – Face-to-face
     communication by sales
     force
   – Advantages
      • Personal (and persuasive)
      • Control over situation
      • Flexible
      • Two-way communication
      • Immediate
        feedback/measurable
      • Demonstration possible
   – Disadvantages
      • Costs
      • Control over message
Integrated Marketing Communications


• Web 2.0
  – Social media, new channels
  – Advantages
     • Mass market
     • Control over
       message/consistent
     • Can be creative
     • Predictable costs
     • Personal, customized
     • Flexible
     • Two-way communication
     • Immediate
       feedback/measurable
  – Disadvantages
     • Costs
     • Control
Integrated Marketing Communications


• Determinants of IMC
  strategy
  – Marketing objectives and
    circumstances
  – Nature of product
       • Consumer/business
       • Brand equity
       • Risks and costs
  –   Stage of PLC
  –   Target market
  –   Buying situation
  –   Budget

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Imc1+f2012

  • 1. Integrated Marketing Communications (IMC) • IMC – Concept – Promotional mix – Communications process – Response Hierarchy – Determinants • Advertising • Sales promotion • Publicity • Personal selling • Social media
  • 2. Integrated Marketing Communications • IMC Concept – Consistency – Leverage pieces – Whole greater than parts • Promotional mix – Advertising – Sales promotion – Publicity – Personal selling – Web 2.0/social media – Crossing boundaries
  • 3. Integrated Marketing Communications Advertising Sales Promo Publicity Sales Ad Sales Promo PR Agency Agency Firm Strategy Strategy Strategy Strategy Customer
  • 4. Integrated Marketing Communications Marketing Strategy Advertising Sales Promo Publicity Sales Ad Sales Promo PR Agency Firm Message Customer
  • 6. Integrated Marketing Communications: Communications Model Sender/Message Encoding Medium Feedback Decoding Receiver
  • 7. Integrated Marketing Communications: Communications Model Objectivece/Me e/ Sender/Message Message Creative Creative Encoding Channel/Media Channel Feedback Decoding Target Receiver Assessment
  • 8. Integrated Marketing Communications • Target, message, objective • Marketing decisions • Come from strategy, positioning • Business purpose of communication • Target: Push or Pull? • Objective: Response Hierarchy • Cognitive • Affective • Behavioral
  • 9. Integrated Marketing Communications Manufacturer Push Retailer Consumer Pull Pull Media
  • 10. Integrated Marketing Communications Response Hierarchy Buying Process – Note AIDA in text – Cognitive stage Need Recognition • Awareness Information Search • Knowledge – Affective stage Alternative Evaluation • Liking • Preference • Conviction – Behavioral stage Purchase • Action Post-Purchase • Post-purchase – Reminder
  • 11. Integrated Marketing Communications • Creative • Agency • Channel • Advertising • Media • Sales Promotion • Method/media • Publicity • Media • Personal Selling • Web 2.0 • Media
  • 12. Integrated Marketing Communications • Advertising – Paid media placements – Advantages • Reaches mass market • Control over message/consistent • Can be creative • Cost effective per exposure – Disadvantages • Impersonal • Control over situation • Inflexible • One-way/feedback • Often substantial overall cost
  • 13. Integrated Marketing Communications • Sales Promotion – Value-adding incentives – Advantages • Reaches mass market • Control over message/consistent • Can be creative • Predictable costs • Measurable – Disadvantages • Impersonal • Control over situation • Inflexible • One-way communication • Sales promotion trap
  • 14. Integrated Marketing Communications • Publicity – Non-paid media or word-of- mouth M&M’S drops Kyle Busch for rest of 2011 – Advantages • Reaches mass market, can reach hard-to-reach segments • No media costs • Credible – Disadvantages • Impersonal • Control over situation • Inflexible • One-way communication • Control over message • No repetition
  • 15. Integrated Marketing Communications • Personal Selling – Face-to-face communication by sales force – Advantages • Personal (and persuasive) • Control over situation • Flexible • Two-way communication • Immediate feedback/measurable • Demonstration possible – Disadvantages • Costs • Control over message
  • 16. Integrated Marketing Communications • Web 2.0 – Social media, new channels – Advantages • Mass market • Control over message/consistent • Can be creative • Predictable costs • Personal, customized • Flexible • Two-way communication • Immediate feedback/measurable – Disadvantages • Costs • Control
  • 17. Integrated Marketing Communications • Determinants of IMC strategy – Marketing objectives and circumstances – Nature of product • Consumer/business • Brand equity • Risks and costs – Stage of PLC – Target market – Buying situation – Budget