Integrated Marketing Communications

Marketing Communication

Marketing communication is the means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell.

Kotler

Marketing Communication Builds Brands

Elements in the Communications Process

Communication Mix

Advertising• Print and broadcast ads• Packaging inserts• Motion pictures• Brochures and booklets• Posters• Billboards• POP displays• Logos• Videotapes

Sales Promotion• Contests, games,

sweepstakes• Premiums• Sampling• Trade shows, exhibits• Coupons• Rebates• Entertainment• Continuity programs

Communication Platforms

Events/ Experiences• Sports• Entertainment• Festivals• Arts• Causes• Factory tours• Company museums• Street activities

Public Relations• Press kits• Speeches• Seminars• Annual reports• Charitable donations• Publications• Community relations• Lobbying• Identity media• Company magazine

Communication Platforms

Personal Selling• Sales presentations• Sales meetings• Incentive programs• Samples• Fairs and trade shows

Direct Marketing• Catalogs• Mailings• Telemarketing• Electronic shopping• TV shopping• Fax mail• E-mail• Voice mail• Blogs• Websites

Word-of-Mouth Marketing

• Person-to-person• Chat rooms• Blogs

Response Hierarchy Models

Steps in Developing Effective Communications

Identify target audience

Determine objectives

Design communications

Select channels

Establish budget

Decide on media mix

Measure results/ manage IMC

Designing the Communications

• Message strategy• Creative strategy• Message source• Global adaptation

Creative Strategy• Informational and transformational appeals• Positive and negative appeals

– Fear– Guilt– Shame– Humor– Love– Pride– Joy

Message Source

Celebrity Characteristics– Expertise– Trustworthiness– Likeability

Establish the Budget

Affordable

Percentage-of-Sales

Competitive Parity

Objective-and-Task

Advertising

What is Advertising?

Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

Advertising is

– The time or space devoted to it is paid for– It uses a set format to carry the message rather

than personal, one-on-one selling– It identifies the sponsor of the message

The Five M’s of Advertising

• Mission• Money• Message• Media• Measurement

The Main Purpose of Advertising

• To sell products or ideas by presenting its message so well that the customer will buy the product or accept the idea presented.

Advertising Objectives

• Informative• Persuasive• Reminder• Reinforcement

Promotional Advertising

• Promotional advertising is advertising that is designed to increase sales by– creating an interest in products– introducing new products and businesses– explaining a product– supporting personal selling efforts– creating new markets

Factors to Consider in Setting an Advertising Budget

• Stage in the product life cycle• Market share and consumer base• Competition and clutter• Advertising frequency• Product substitutability

Massage

• Select the basic appeal• Rational• Emotional • Celebrity • Sex• The power of novelty

Media

• Media are the agencies, means or instruments used to convey messages

Three Categories of Advertising Media

• Print media• Broadcast media• Specialty media

Print Media

• Print media can include any of the following:– Newspapers– Direct Mail– Magazine– Outdoor Advertising– Directory Advertising– Transit Advertising

Why is Newspaper Advertising Important?

• Approximately 55% of adults read the newspaper everyday.

• Do you read the newspaper?• Do your parents read the newspaper?

Advantages & Disadvantages of Newspaper Advertising

• Large readership• Known circulation (easy to target)• Low cost• Timely and flexible

– Wasted circulation– Disposable (short lifespan)– Poor quality advertising

Print Ads

Advantages• Detailed product

information• Ability to

communicate user imagery

• Flexibility• Ability to segment

Disadvantages• Passive medium• Clutter• Unable to

demonstrate product use

Print Ad Evaluation Criteria

• Is the message clear at a glance?• Is the benefit in the headline?• Does the illustration support the headline?• Does the first line of the copy support or explain the

headline and illustration?• Is the ad easy to read and follow?• Is the product easily identified?• Is the brand or sponsor clearly identified?

Direct Mail Advertising

• Advertising that is sent directly to prospective customers through the mail

• (More than $80 billion in goods and services sold annually through direct mail)

• Have you ever bought anything through direct mail advertising?

• What do you do with it when you get it?

Advantages & Disadvantages of Direct Mail Advertising

• Advertiser can be highly selective• Flexible • Wide choice of formats• Can use coupons or other incentives• Can directly make the sale

– Low level of response – High costs– Poor image often not read

Outdoor Advertising

• Non-standardized outdoor signs are used by local firms at their place of business or in other locations throughout the community.

• Standardized outdoor signs are available to local, regional or national advertisers.

Advantages and Disadvantages of Outdoor Advertising

• Highly visible• Relatively inexpensive• Permits easy repetition of message• Can be geographically tailored for target

market– Short message due to limited viewing time– Unknown audience– Government regulations

Directory Advertising

• Alphabetical listing of businesses– Relatively inexpensive– Found in 98% of households - all demographics– Kept for at least a year - not thrown away– Very inflexible due to being printed yearly– Wasted advertising (to non-target market)

Advantages and Disadvantages of Radio Advertising

• Select and audience - target their market

• Flexible - can change quickly and easily

• Mobile (can be taken anywhere - shopping, jogging, hiking or driving

• Short life span• Sometimes many

stations - have to decide which to use or use them all (more expensive)

• Distractions - no visual involvement

Television Advertising

• The ultimate advertising medium because it can communicate with sound, action and color

Television

Advantages• Reaches broad spectrum of

consumers• Low cost per exposure• Ability to demonstrate

product use• Ability to portray image and

brand personality

Disadvantages• Brief • Clutter• Lack of attention by viewers

Advantages & Disadvantages of Television Advertising

• All elements for creative message

• Believability• More personal &

effective• Can reach the masses

or target specific interests

• Adaptable to special needs

• Expensive - the highest production costs - too high for small businesses

• Audience size is not assured

• Nuisance - channel surfing - leave during commercials

Media Selection

• Reach• Frequency• Impact• Exposure

Choosing Among Major Media Types

• Target audience and media habits• Product characteristics• Message characteristics• Cost

Evaluating Advertising Effectiveness

• Communication Effect Research– Consumer feedback method– Portfolio tests– Laboratory tests

• Sales-Effect Research