Download Topic 10 - Slide Handouts File

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Integrated Marketing Communication
Advertising
Personal Selling
Sales Promotion
Public Relations
Reference point:
◦ Armstrong et.al. Principles of Marketing
Chapter 11 and 12
◦ Digital and Direct Selling is taught as a
separate component.
IMC entails co‐ordinating the organisation’s
promotional efforts using such major
communication elements as:
 Advertising.
 Sales promotion.
 Public relations.
 Personal selling.
 Direct and online marketing.
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An organisation’s Integrated Marketing
Communication program consists of a specific
blend of the above mentioned elements that will
most effectively meet objectives such as to
inform, persuade, and remind consumers as well
as to reinforce their attitudes and perceptions.
A campaign MUST use a range of promotion
media and activities and that the campaign MUST
be designed in a way that maximises the synergy
between the various promotion mix elements
“...a strategic business process used to plan,
develop, execute and evaluate coordinated,
measurable, persuasive brand communications
programmes over time with customers, prospects
and other targeted, relevant external and internal
audiences. “ Schultz and Schultz 1998
Tactical Coordination: Managing promotions
as tactical activities within a Promotion Mix
comprising advertising, personal selling,
sales promotion and publicity
Broadening the Promotion Mix: now includes
new media such as direct selling, blogs, SMS,
social media networks and taking a close
interest in new promotion technological
advances
E.g. Viral and Mob Advertising?
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http://www.youtube.com/profile?src_vid=4ba
1BqJ4S2M&annotation_id=annotation_98082
1&feature=iv&user=tippexperience
Redefining the scope of the Promotion Mix to
take in a wider Communications role that
connects the enterprise to all its stakeholders
e.g. Employees, trade, investors, key accounts,
regulatory agencies, lobby groups,
complementing businesses etc
Elevating the management of Communications to
a Strategic level with responsibility and financial
accountability.
Integrated Marketing Communications is now
fully operational.
In light of this moving towards IMC releases
pressures. Therefore coordination is required
between:
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Promotion mix elements
Promotion mix and marketing mix
Creativity in promotions
Target audiences and stakeholders
Assessing and updating information and databases
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Innovative Promotion Policy or Old Wine in a
new bottle?
◦ IMC is not unchallenged, critics argue there is little
innovation behind IMC
◦ First: The principle that the promotion mix needs to
be integrated and coordinated with both its
components and the rest of the marketing mix is
nothing new.
◦ Second: It has been long held that promotions have
to have a strategic dimension to them.
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So what does IMC offer today’s marketers?
The decision is yours!
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The Sacree Watch Collection
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http://www.youtube.com/watch?v=weil0lhHl
9U
Mass Communication:
 The use of mass media such as free to air
television, radio, newspapers and magazines, as
well as cinema and outdoor media.
Advertising:
 Any paid form of non‐personal presentation and
promotion of ideas, goods or services by an
identified sponsor.
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Direct Response and Interactive Advertising
 Mail
 Telephone
 Txt to win/remind/persuade
 Broadcast Media (infomercials)
 Print Media
 Social Media
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Place Advertising
 Billboards
 Posters
 Public Displays (Airport)
 Bulletins and brochures
 Buses, taxis, vehicle signage
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The marketer must choose from a wide range
of possible media options
It must be remembered that there is a high
degree of potential for interactions to take
place between these options
The costs, complexities and assessments for
promotion effectiveness become more
extreme, more risky and harder to manage.
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Point of Purchase or Sales Advertising
Aisle Markers
Shelf banners, attractors
Shopping trundle adverts
In-store radio, television, DVD
Display racks and bins
Tutorial story boards http://4.bp.blogspot.com/_wSBipwBA_Js/TNf
y3OgyCQI/AAAAAAAAAtU/N95mPzZmESY/s1
600/storyboard2.gif
Basic components and main characteristics
◦ Advertising
◦ Personal Selling
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Non-personal communication you pay for it.
Independent media are used (TV Radio), you are
clearly identified as the sponsor.
Basically passive – advertising messages are a
“one way” monologue from advertiser to
audience.
Responses from the audience is normally indirect
and delayed (an audience member will not take
immediate action in response to an advertising
message)
Often used for image building – brand
identity
Other important applications include:
◦ Supporting sales promotion efforts
◦ Addressing consumers’
 Unsought/emergency information needs e.g. Yellow
Pages
◦ Supporting personal selling efforts
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Use if ‘broadcast’ media allows advertiser to
reach wide audience
Traditionally advertising is justified on the
grounds of:
◦ Conveying information
◦ Modifying consumer wants, perceptions, attitudes and
energising motivation
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AIDA – Attention, Interest, Desire, Action!
However beware of “low involvement” bias, so
that the consumer does not take the advertising
message very seriously – if they notice them at all
Flexibility – you can adjust the advertising
theme, message and media relatively easily
and quickly (within limits)
Immediacy – speed of response – advertising
can often be developed and placed in the
media in a relatively short space of time.
Budget – relatively easy to control and
manage
◦ Example: $34 per 30 seconds radio advert =$5,000
per month @ 5 times a day!
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Low impact – low involvement consumers are
unresponsive.
Most audience members do not notice your
advertising.
Advertising itself is often an inadequate
motivator for low-involvement consumers.
Corollary: advertising generally works best when
aimed at high involvement consumers interested
in Shopping, Specialty and Emergency Products.
Wastage: especially in mainstream general
media – you can cover a large audience and
therefore include many who are not members
of your target audience.
Increased Clutter: signal-to-noise ratios are
deteriorating and cut-through of individual
advertising messages is increasingly
problematic
◦ e.g. How many TV adverts really get noticed and
make a positive difference; radio similar
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Marketers need to understand how
communication works.
Communication involves nine elements;
The two major parties are the sender and the
receiver of the information
Two major communication tools are the
message and the media.
Four major communication functions are
encoding, decoding, response and feedback.
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1. Sender. The party sending the message to another
party.
2. Encoding. The process of putting thought into
symbolic form.
3. Message. The set of symbols that the sender
transmits – the actual advertisement.
4. Media. The communication channel through which
the message moves from sender to receiver.
5. Decoding. The process by which the receiver assigns
meaning to the symbols encoded by sender – a
consumer watches the ad and interprets the words
and illustrations it contains.
6. Receiver. The party receiving the message sent by
another party – the consumer who watches the ad.
7. Response. The reactions of the receiver after being
exposed to the message – any of hundreds of
possible responses.
8. Feedback. That part of the receiver’s response
communicated back to the sender – research shows
that consumers like and remember the ad.
9. Noise. The unplanned static or distortion during the
communication process that results in the receiver
getting a different message from the one that the
sender sent.
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Difficulty in setting objectives and measuring
effectiveness – at least in a direct way. The
link between $X advertising expenditure and
$Y consumer behaviour (product sales) is
often tenuous. Advertising effectiveness is
highly situational.
“I know half my advertising budget is wasted,
the problem is I don’t know which half” Lord
Leverholm – Lever Brothers
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Consumer Sophistication – modern
consumers are increasingly jaded and cynical
towards orthodox advertising and are more
likely to screen advertising out or denigrate
it.
Advertising is a monologue – one way
communication. Advertising is still only a way
of “shouting at the audience”
Too much creativity; “fishing without a hook”,
all show with no real message!
http://www.youtube.com/watch?v=q_KyxKD9
0IA&feature=plcp&context=C4fb42c5VDvjVQ
a1PpcFM-A0McKKUeq_uhb_AvldY2OwKcV2ieUg%3D
You Decide!
The questions is:
◦ WHO are they trying to get to do what?
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Personal one-to-one communication, you pay
for it, you are clearly identified as the
sponsor, you get a direct response from the
target audience.
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Dialogue – interactive-able to address
consumer needs and wants – problem solving
possible
Flexible – covers a range of different sales
positions form simple order-taking to
problem solving “consumer consultant” –
therefore there is a good chance of being
able to staff and structure the sales force
according to the firm’s needs and
circumstances.
Relationship Building – has the potential to
foster long-term relationships with
customers (word of mouth referrals); trusted.
Opportunities for reality branding; consumers
relate to individual sales staff.
Direct performance and effectiveness
measurement – ability to measure sales
effectiveness – relatively straight forward
Management and Control – well known field –
common skill for most managers
Market Intelligence – sales staff are closest to
the market and are well suited to notice and
report back trends and events
Highly targeted- potentially close fit between
sales representative and the consumer
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Limited reach – a single sales person is able
to call on only a limited number of customers
in a given timeframe
High absolute costs per sale: each sales
person carries employee costs and must
attempt a number of selling interventions
before actually generating revenue
Job and People Skills: requires a distinct type
of person who can consistently excel at
selling. Low calibre staff are ineffective and
can put a death wish on your business.
Find them is easy!
Inflexible: especially in the face of radical
product and market changes. The sales force
is a strategic asset that has been built up over
time and can thus be a constraint if the firm
needs to move in other directions
Dependent upon “platform” factors – sales forces
effectiveness is also a function of platform
support activities; advertising, sales materials,
sales training, market research, branding, sales
management, product quality etc.
Deficiencies in these areas cannot easily be
compensated for by the sales force – can be
hamstrung
Dependence on customer-representative
relations. If key sales personnel leave they are
sure to take their clients with them.
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