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Functions of Marketing Communications
Inform
Persuade
Remind
Build
relationships
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Traditional Forms of Communications
Advertising
Special
Events
Sales
Promotion
Marketing
Communications
Public Relations
Sales People
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Role of IMC
• Promotion is communication by marketers
that informs, persuades, reminds, and builds
relationships with potential buyers of a
product to influence an opinion or elicit a
response
• IMC is a plan for optimal use of the elements
of promotion
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Putting It All Together
• Integrated Marketing Communications
(IMC) is “a strategic business process
used to plan, develop, execute, and
evaluate coordinated, measurable,
persuasive brand communication
programs over time with consumers,
customers, prospects, and other
targeted, relevant external and internal
audiences.”
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Communications Model
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Message Source
Marketers hire
celebrities as
spokespersons to
add excitement to
the source of the
message
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An Opportunity to Communicate
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Control Continuum
Advertising
High
Sales
Promotion
Personal
Selling
Public
Relations
Word of
Mouth
Low
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Advertising That Gets Attention
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Appeals
• Personal appeals allow for direct
interaction between a company
representative and a customer
• Mass appeals seek to reach many
prospective customers at the same time
• New appeals
– Guerrilla marketing
– Viral marketing
– Buzz and hype
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Skechers
This ad creates a
feeling of excitement
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KitchenAid
Product giveaways
can stimulate
purchase
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Advertising
• Non-personal communication from an
identified sponsor using the mass media
can:
– convey rich and dynamic images
– establish and reinforce brand identity
– communicate factual information
– remind customer to buy
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Sales Promotion
• Programs that build interest or
encourage purchase of a product
through the use of an incentive in a
specified time period
– coupons
– contests
– rebates
– premiums
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Publicity and Public Relations
• Portray an organization and its products
positively by influencing the perceptions
of various publics
– writing press releases
– holding special events
– conducting and publishing consumer
surveys
– putting a positive spin on negative
news
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Guerrilla Marketing
• Discover gave away
orange hats to those
celebrating New
Year’s Eve at Times
Square
• The hats got
national television
coverage as Regis
Philbin interviewed
participants
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Buzz versus Hype
Buzz
Hype
Word of Mouth
Advertising
Grassroots
Corporate
Authentic
Fake
Credibility
Skepticism
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Yahoo Buzz
12-18
Characteristics of an IMC Program
•
•
•
•
•
•
Creates a single unified voice
Begins with the customer
Seeks to develop relationships
Involves 2-way communication
Focuses on stakeholders
Generates a continuous stream of
communication
• Measures results based on actual
feedback
Video:
Sony’s
Metreon
facility
12-19
Ad Space on Blimps
Some promotional components are not
integrated with the ad campaign
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Developing the Promotional Mix
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Step 1: Identify the Target
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Step 2: Establish Promotion Objectives
• Possible objectives
– create awareness
– inform the market
– create desire
– encourage trial
– build loyalty
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Up the Promotional Road
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Step 3: Determine/Allocate Promotion Budget
• Top-down budgeting techniques
– percentage-of-sales method
– competitive parity
• Bottom-up budgeting technique
– objective-task method
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Allocate Budget to Specific Promotion Mix
• Organizational factors
• Market potential
• Market size
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Push and Pull Strategies
• Pull strategies
seek to create
consumer
demand which
convinces
retailers to carry
the product
• Push strategies
target retailers
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Step 4: Designing the Promotion Mix
• Which elements of promotion will be used?
• What message is to be communicated?
– Type of appeal?
– Structure of appeal?
• What communication channels should be
employed?
• What role will advertising, sales promotion,
public relations, and selling play?
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Effects of Time and the PLC
• Introduction phase: push strategy; mix relies
heavily on advertising, sales promotions, and
public relations
• Growth phase: heavy advertising with
emphasis on differentiation
• Maturity phase: emphasis on sales
promotions to encourage brand switching
• Decline phase: dramatic reductions in
promotional spending
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Altoids
This campaign
made it a hit with
young people
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The AIDA Model
Action
Desire
Interest
Attention
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Step 5: Evaluate Effectiveness
• Is the plan working?
– Measure response to sales promotions
– Measure brand awareness, recall, and
image before and after ad campaign
– Analyze and compare sales
performances by territory and sales force
– Clip articles appearing in media
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Email Communications
• By using HTML
email, firms can
send customers
emails that look like
their Web sites
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Database Marketing
• Critical to interactive marketers as they
seek to track responses to messages
and develop a dialogue with customers
• Allows the organization to learn
customer preferences, fine-tune and
test offerings, and build relationships
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Database Marketing
•
•
•
•
•
•
Is interactive
Builds relationships
Locates new customers
Stimulates cross-selling
Is measurable
Is trackable
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