Integrated Marketing Communications
OUTLINE
• • • • • • • • • IMC Defined Elements of Marketing Communications Need for IMC Promotion Mix Strategies Advertising Sales Promotion Personal Selling DRM (Direct Respone Marketing) PR (Public Relations)
IMC Defined
Integrated Marketing Communications (IMC):
“is the coordination and integration of
all marketing communications tools, avenues, and sources within a company into a seamless program that maximizes the impact on consumer and other end users at a minimal cost.”
Clow and Baack, 2004, p.8
Elements of Marketing Communications
• • • • • Advertising Sales Promotion Personal Selling DRM (Direct Response Marketing) PR (Public Relations)
We will cover these in more detail…
Need for IMC
• Market fragmentation has resulted in media fragmentation • Alternative media channels abound (e.g. mags, cd catalogues, internet sites, kiosks…) • All messages seen as one single message to consumer
NOTE: IMC builds a strong brand identity in the marketplace by tying together and reinforcing all your images and messages.
(Armstrong et. al., 2007, p.470)
Promotion Mix Strategies
• PUSH vs. PULL
• PUSH Producer marketing activities to Retailers and Wholesalers who resell to Consumers
• Personal selling, trade promotion by producer and personal selling, advertising and sales promotion by wholesaler/retailer…
• PULL Producer marketing activities directed at consumer to create demand from retailers and wholesalers that then creates demand from producer.
• Consumer advertising, sales promotion…
Advertising
•
•
•
Mass media advertising reaches large numbers geographically dispersed at low cost per exposure with ability to repeat message with frequency Advertising - Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. PROCESS: 1. Set objectives 2. Develop strategy • Message strategy • Message execution ? Slice of life, lifestyle, fantasy, mood, musical, symbolic, technical expertise, scientific, testimonial (see page 478-479) 3. Select media (reach, frequency, impact) 4. Evaluate advertising
Advertising Reaches large, geographically dispersed audiences, often with high frequency; Low cost per exposure, though overall costs are high; Consumers perceive advertised goods as more legitimate; Dramatizes company/brand; Builds brand image; may stimulate short-term sales; Impersonal, one-way communication; Expensive
Sales Promotion
Short term incentives designed by marketers for the purpose of encouraging the purchase of a product. • Consumer promo tools:
• Samples, coupons, rebates, price packs, premiums, ad specialties, loyalty programs, point-of-purchase displays/demos, and contests/sweepstakes
• Business promo tools:
• conventions/trade shows and sales contests
Sales Promotion
• May be targeted at the trade or ultimate consumer; Makes use of a variety of formats: premiums, coupons, contests, etc.; Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales; Stimulates quick response; Short-lived; Not effective at building long-term brand preferences
Personal Selling
•
• • • •
Involves two way personal communications (compared to other IMC tools that are one-way impersonal) Personal selling - Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Organization: • Territorial, Product, Customer types, Outside vs. inside sales, and team selling Process: • Prospect, pre-approach, approach, present, handle objections, close, follow-up Relationship Marketing: • Process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.
Personal selling
Most effective tool for building buyers’ preferences, convictions, and actions; Personal interaction allows for feedback and adjustments; Relationshiporiented; Buyers are more attentive; Sales force represents a long-term commitment; Most expensive of the promotional tools
DRM (Direct Respone Marketing)
• Mass media marketing in a oneto-one manner. • Requires Database • Forms:
• Telemarketing • Direct Mail • Catalogue Marketing • Direct Response TV (order now)
DRM (Direct Respone Marketing)
• Many forms: Telephone marketing, direct mail, online marketing, etc.; Four distinctive characteristics: Nonpublic, Immediate, Customized, Interactive; Well-suited to highly-targeted marketing efforts
PR (Public Relations)
• Purpose is not to communicate to the market about products but rather to communicate to the company’s publics about the company itself. • Functions:
• • • • • • •
Press relations Product Publicity Public Affairs Lobbying Investor Relations Development (financial or volunteer support) Crisis management
PR (Public Relations)
• Highly credible; Very believable; Many forms: news stories, news features, events and sponsorships, etc.; Reaches many prospects missed via other forms of promotion; Dramatizes company or product; Often the most under used element in the promotional mix; Relatively inexpensive (certainly not 'free' as many people think--there are costs involved
Thank You.
doc_540377275.ppt
OUTLINE
• • • • • • • • • IMC Defined Elements of Marketing Communications Need for IMC Promotion Mix Strategies Advertising Sales Promotion Personal Selling DRM (Direct Respone Marketing) PR (Public Relations)
IMC Defined
Integrated Marketing Communications (IMC):
“is the coordination and integration of
all marketing communications tools, avenues, and sources within a company into a seamless program that maximizes the impact on consumer and other end users at a minimal cost.”
Clow and Baack, 2004, p.8
Elements of Marketing Communications
• • • • • Advertising Sales Promotion Personal Selling DRM (Direct Response Marketing) PR (Public Relations)
We will cover these in more detail…
Need for IMC
• Market fragmentation has resulted in media fragmentation • Alternative media channels abound (e.g. mags, cd catalogues, internet sites, kiosks…) • All messages seen as one single message to consumer
NOTE: IMC builds a strong brand identity in the marketplace by tying together and reinforcing all your images and messages.
(Armstrong et. al., 2007, p.470)
Promotion Mix Strategies
• PUSH vs. PULL
• PUSH Producer marketing activities to Retailers and Wholesalers who resell to Consumers
• Personal selling, trade promotion by producer and personal selling, advertising and sales promotion by wholesaler/retailer…
• PULL Producer marketing activities directed at consumer to create demand from retailers and wholesalers that then creates demand from producer.
• Consumer advertising, sales promotion…
Advertising
•
•
•
Mass media advertising reaches large numbers geographically dispersed at low cost per exposure with ability to repeat message with frequency Advertising - Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. PROCESS: 1. Set objectives 2. Develop strategy • Message strategy • Message execution ? Slice of life, lifestyle, fantasy, mood, musical, symbolic, technical expertise, scientific, testimonial (see page 478-479) 3. Select media (reach, frequency, impact) 4. Evaluate advertising
Advertising Reaches large, geographically dispersed audiences, often with high frequency; Low cost per exposure, though overall costs are high; Consumers perceive advertised goods as more legitimate; Dramatizes company/brand; Builds brand image; may stimulate short-term sales; Impersonal, one-way communication; Expensive
Sales Promotion
Short term incentives designed by marketers for the purpose of encouraging the purchase of a product. • Consumer promo tools:
• Samples, coupons, rebates, price packs, premiums, ad specialties, loyalty programs, point-of-purchase displays/demos, and contests/sweepstakes
• Business promo tools:
• conventions/trade shows and sales contests
Sales Promotion
• May be targeted at the trade or ultimate consumer; Makes use of a variety of formats: premiums, coupons, contests, etc.; Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales; Stimulates quick response; Short-lived; Not effective at building long-term brand preferences
Personal Selling
•
• • • •
Involves two way personal communications (compared to other IMC tools that are one-way impersonal) Personal selling - Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Organization: • Territorial, Product, Customer types, Outside vs. inside sales, and team selling Process: • Prospect, pre-approach, approach, present, handle objections, close, follow-up Relationship Marketing: • Process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.
Personal selling
Most effective tool for building buyers’ preferences, convictions, and actions; Personal interaction allows for feedback and adjustments; Relationshiporiented; Buyers are more attentive; Sales force represents a long-term commitment; Most expensive of the promotional tools
DRM (Direct Respone Marketing)
• Mass media marketing in a oneto-one manner. • Requires Database • Forms:
• Telemarketing • Direct Mail • Catalogue Marketing • Direct Response TV (order now)
DRM (Direct Respone Marketing)
• Many forms: Telephone marketing, direct mail, online marketing, etc.; Four distinctive characteristics: Nonpublic, Immediate, Customized, Interactive; Well-suited to highly-targeted marketing efforts
PR (Public Relations)
• Purpose is not to communicate to the market about products but rather to communicate to the company’s publics about the company itself. • Functions:
• • • • • • •
Press relations Product Publicity Public Affairs Lobbying Investor Relations Development (financial or volunteer support) Crisis management
PR (Public Relations)
• Highly credible; Very believable; Many forms: news stories, news features, events and sponsorships, etc.; Reaches many prospects missed via other forms of promotion; Dramatizes company or product; Often the most under used element in the promotional mix; Relatively inexpensive (certainly not 'free' as many people think--there are costs involved
Thank You.
doc_540377275.ppt