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Chapter Ten
Integrating Marking
Communications
Learning Objectives
1.
2.
Describe the process of customer relationship
management
Integrated Marketing Communication Strategy
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3.
What is IMC
The IMC Planning Process
Communication Tool Kit
Achieving Customer Retention through Communication
Budgeting for Communication
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Four Steps in the CRM Process
1
Segment &
Profile the Market
2
4
Design
Communication and
Pricing Strategy
Evaluate
3
Implement
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The Customer Relationship Management Process
1. Segment & profile the market
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Create segments by grouping similar customers together
Based on how the customer wants to interact (e.g., order over
web; salesperson; direct mail; email)
2. Design a communication strategy
•
Involves multiple channels of communication (direct mail, e-mail,
print ads, trade shows, and even field sales efforts)
3. Implement the strategy
4. Evaluate
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Is continuous
Companies evaluate results against goals to provide grist for the
next iteration
IMC is an important part of the overall CRM process
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What Is IMC?
IMC is strategic, two-way communication targeted to specific
customers and their needs, all coordinated through a
variety of media.
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Employs a variety of media
Emphasizes coordinated, 2-way communications
What distinguishes IMC from other communication approaches?
IMC focus on the coordination of a variety of media capable of reaching
a specific target market with a targeted message.
The unique strengths of each medium are utilized in a conscious effort to
achieve synergy and engage the targeted customer in strategic twoway communications.
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What Is IMC?
Understanding of IMC
1.
2.
It aims to meet the information needs of the buyer;
It is strategic in that the content and delivery of all messages are the
result of an overall plan;
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3.
4.
Messages across all communication channels work together to create the
appropriate position and result in the right action
Delivery of messages is synchronized so that synergy can be reached
Integrating communications is an attempt to achieve synergy
It provides for a uniform message delivered through all company
media (advertising, selling effort, direct mail and trade show…);
It provides two-way dialogue between supplier-customer
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how will we communicate with our customers
How do our customers want to communicate with us
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The Continuous IMC Planning Process
Set Goals
Make Adjustments
Determine
Communication
Elements
Measure Results
Create Message
Place Messages
in Media
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Setting Goals
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IMC goals vs. strategic marketing goals:
IMC goals are derived from, and supportive of, the firm’s strategic goals
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Goal setting process:
Determining the audience – Who is the audience?
Deciding what the marketer wants the audience to get out of the communication – What
should the communication say and do?
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Hierarchy of Effects Model-AIDA
sets forth a series of steps the consumer must go through en route to purchase
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Consumers must first be made aware of the product & its benefits;
Hopefully, a sig. number will be sufficiently interested to be receptive to – or seek
out more information;
Additional information will produce desire to act;
And finally, the consumer will, in fact, take the proposed action.
Helps guide message content according to the stage attained in a market or
segment
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Hierarchy of Effects Model - AIDA
Action
Desire
Interest
Awareness
10-9
Communication Toolkit - elements
1.
Advertising - Directed to a general audience, primarily through trade
publications, the web, television, radio, billboards
2.
Direct Marketing - Directed to a specific audience to generate leads
and generate sales through the mail, by fax or Internet and catalogs
3.
Public Relations - Focuses on relationships to create goodwill and
support relationships
4.
Trade Shows - Exhibits and demonstrates products and services in a
public venue with personal interaction
5.
Telemarketing - Inbound and outbound electronic communication
allowing greater feedback opportunities
6.
Personal Selling - Adaptable selling method established by one-on-one
contact
7.
Marketing Research - Capturing information that will enable stronger
customer relationships
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The Roles of Advertising
Close
Sales
Generate
Sales Leads
Create Favorable
Climate for Salespeople
Create or Strengthen Image
10-11
Create Message
1.
Recall what the communications plan is trying to say
2.
Understand what buyers already think and do, what
information buyers need, and what competitive actions are
currently (or could be) undertaken
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Achieving Customer Retention through
Communication
1.
Communicate proactively and regularly to your
customers
2.
Make dialogue easy to initiate by your customers,
making it easy for customers to communicate with the
firm
3.
Make it easy to respond to your communication
efforts – ensuring the firm respond quickly to its
customers inquiries/requests
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Budgeting for Communications
1.
Where marketing communication dollars are spent
2.
Budgets should be part of the planning process
3.
Budgeting is a form of control; forces planning
discipline and forces attention upon the resources
required for the plan
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Where MC Dollars Are Spent
Online Direct Marketing
Marketing
Advertising
Market
Research
Premiums &
Incentives
Other
5.8% 7.7%
24.8%
4.2%
4.4%
3.1%
10.8%
16.9%
Trade
Shows
Public
Relations
18.0%
Sales Force
Management
Sales Promotion
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The Budget Breakdown Method
(Allocates Total Available Budget)
TOTAL AVAILABLE BUDGET FUNDS
Allocated to:
Trade Show
Sales Force
Mail
Magazines
Radio
Internet
Newspaper
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The Budget Buildup
(Creates Total Budget)
How Much is Needed for Objective
Trade Shows
Radio
Mail
Newspaper Sales Force
Magazines
Internet
Creates Total Budget
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Budgeting for Communications
1.
The Budget Breakdown Method
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2.
The total communications budget is developed before budgets are
created for its individual components
Found on the idea that past/expected sales should determine present
marketing communication budgets
Doesn’t involve planning and coordination; may encourage myopia;
may breed inertia and may lead to occasional exigencies
The Budget Buildup (objective-and-task method)
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Strategy precedes budgeting: defining objectives; determining
strategy and estimating costs
The budgeting process is less of a hindrance; the ability to better
examine the effectiveness of a strategy
Consistent with the use of integrated communications: the goals set
for the IMC logically serves as the starting point for determining the
funds needed
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