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GLOBAL MARKETING
Integrated Marketing
Communications
Integrated Marketing
Communications (IMC)
• Effective marketing requires an integrated
communications plan--relying not just on
one form of communication, but bringing
together a number of different modes in a
consistent and complementary way.
Communication Vehicles
• Contrast communication options along two
dimensions:
– Broadcast vs. interactive (1-way message vs.
2-way message)
– Mass vs. addressable/customized
Position of Major
Communication Vehicles
Salesperson
Addressable/
Customized
Direct
Media
Radio
Newspapers
Magazines
Mass
Web
Telemarketing
E-mail
Direct Mail
Catalogs
Infomercials
Television
1-way
2-way
Characteristics of Leading
Media Advertising
• Television
– 70% expenditures for national coverage.
– Average 30 second prime time ad costs about
$185,000.
– In a typical hour of prime time programming, more
than 15 ads will be featured.
– Cable stations enable more customization.
– Summarize cost with CPM (cost per thousand)
$185,000
x 1000 = $18.50 CPM
10,000,000
Television, continued
• Limitations
– Ads are viewed as intrusive--zapping
– Clutter
– Sensory adaptation
Leading Media...
• Newspapers
– 90% of expenditures for local coverage
– Most consumers view newspaper ads as
informational.
– Limitations:
• Relatively weak production quality
• Limited life
Leading Media
• Radio
– Largely local medium
– Audiences are well-segmented--able to
deliver message to well-defined audience
– Relatively low cost
– Limitations
• Clutter, easy to tune out
Leading Media...
• Magazines
– Growing numbers of special interest
magazines, enabling increased customization
– Deliver strong visual message to well-defined
target audience
– Longest life of any medium and benefit from
pass-along readership
Characteristics of Direct
Marketing Communications
• Infomercials
– High-quality, detailed marketing messages
– Deliver to well-defined audiences
Direct Marketing...
• Catalogs
– High-quality
– Highly customizable due to database
management
Direct Marketing...
• Direct Mail
– Letter, sales brochure
– Includes directions for ordering or requesting
information
– Highly customizable
– Limitations
• “junk mail”
Direct Marketing...
• E-mail
– Offers more opportunity for customization
– Quicker exchange of information
Direct Marketing
• Telemarketing
– Less cost than in-person selling
• $5 per call vs. $250 per call
– Immediate 2-way nature--caller can customize
the message in accord with the message
receiver’s initial response
– Limitations:
• “junk calls”
Characteristics of the Web
• Opportunity to exchange customized
messages and responses instantaneously
• “Hyper impulsivity”
• Great potential for bringing the marketing
system all together
Role of Promotions in Integrated
Marketing Communications
• Promotions are a specific inducement to
generate purchase behavior.
• Consumer promotions
• Trade promotions
Consumer Promotions
• Free samples
• Price-oriented programs
Cents-off coupons
Mail-in refunds
Rebates
•
•
•
•
Premiums
Tie-ins
Continuity programs
Contest/sweepstakes
Price pacs
Bonus pacs
Trade Promotions
•
•
•
•
•
•
Slotting allowances
Co-op advertising
Floor planning
Temporary price cuts
Volume discounts
Contests
Rounding out IMC:
• Event Marketing Sponsorships
• Publicity and Public Relations
Formulating the IMC Program
• 6 M’s Model for Communication Planning
1. Market
2. Mission
3. Message
4. Media
5. Money
6. Measurement
1. Market
• Analyze the consumer situation in terms of
stages in the purchase and consumption
process
• Response hierarchy models
– Cognitive stages
– Affective stages
– Behavioral stages
Hierarchy Model: AIDA
Stages
AIDA Model
Cognitive
Attention
Affective
Interest
Desire
Behavioral
Action
Hierarchy-of-Effects Model
Stages
Hierarchy-ofEffects Model
Cognitive
Awareness
Knowledge
Affective
Liking
Preference
Conviction
Behavioral
Purchase
Innovation-Adoption Model
Stages
Cognitive
Affective
Behavioral
Innovation-Adoption
Model
Awareness
Interest
Evaluation
Trial
Adoption
Communication Model
Stages
Communication
Model
Cognitive
Exposure
Reception
Cognitive Response
Affective
Attitude
Intention
Behavioral
Behavior
Customer Response Index
• The combination of effects in the customer
response hierarchy.
• Tool for adjusting communications or other
marketing tactics.
Customer Response Index
CRI=% aware x % that comprehend x % that are interested
= .63 x .54 x .77
= .26 or 26%
Comprehend
(54%)
Aware
(63%)
Interested
(77%)
Intentions
(68%)
No intentions
(32%)
Not interested (23%)
Don’t comprehend (46%)
Unaware (37%)
Action
(90%)
No Action
(10%)
2. Mission
• Communication objectives, related to
customer response
Build Awareness
Message Reinforcement
Stimulate Action
3. Message
• Decisions related to message content,
structure, format, and source
– What kind of an appeal?
– One-sided or two-sided message?
– Peripherals
– Spokesperson
4. Media
• Decisions related to media communication
channel
• Decisions related to media exposure
– Target market reach
– Frequency
– Advertising effectiveness
• GRPs
• CPMs
Media Exposure (continued)
• Decisions related to message
reinforcement
– Pulsing
– Heavy-up message frequency
• Decisions related to use of consumer
promotions
5. Money
• The optimal marketing communications
budget is typically a function of:
– The size and heterogeneity of the target
audience
– Nature of the message
– Receptivity of the audience
– Amount of clutter
Money (continued)
• Some firms use:
– % of expected or previous year’s sales
– Competitively based benchmark
• Spending levels vary greatly across
industries and even across firms within the
same category
6. Measurement
• Plan a mechanism for evaluating the
effects of communications efforts.
• Critical input to future spending levels,
allocation of the budget across media, and
specific communication messages.