Decline of Advertising with Integrated Marketing Communication

							Integrated Marketing
  Communications




       (chapter 15)
                   IMC
 Customer
 – Heart of IMC
 IMC   strategy
 – Customer wants
 Receiver   focused messages
      Integrated Marketing
         Communication
Promotion

Marketing   Communications
 –intended
 –unintended
Coordination

Teamwork
         Integrated Marketing
            Communication
 Role   of Database
 –internet


 Steps
 –information collection
 –dissemination
 –shared interpretation
The Communication Process

Sender     Encoding   Channel




           Noise      Receiver




Feedback   Response   Decoding
         3 tasks of messages
 AIDA    concept

 Gains receiver’s attention
 Both receiver & sender understand

 Stimulates receivers needs by
  – Suggesting method to satisfy them
    Promotional Objectives
 Provide   information
 –introduction
 –availability
 –usefulness/uses


 Increase    demand
 –primary
 –selective
    Promotional Objectives
 Differentiation
 –growth/maturity
 –product value


 Stabilize   sales
 –cyclical
 –seasonal
 –irregular demand
            Promotional Mix
 selling            promotion    tools
  –personal          – advertising
                        paid,nonpersonal,
  –Non-personal         identified
                     – product
                       placement
                        paid,nonpersonal
                        controversial
Promotional Elements: tools
–sales promotion
 time-limited,   action-oriented
 POP displays
 coupons

 premiums

 contests

 sweepstakes, etc.

 Trade promotions
  Promotional Elements: tools
 direct   marketing
    use   many media
  –public relations
    positivepress
    “unpaid”

  –publicity
    “free”   advertising
Promotional Elements: more tools

–guerilla          –sponsorships
 marketing          sporting  or cultural
                     events, teams, etc.
 unconventional
   – “buzz          spending now $11B
     marketing”      per year
                    growth

                    differs from
                     advertising
                    assessing results
Direct Marketing
           Direct Marketing
 Direct   Mail
  – internal/external sources
 Catalogs
  – Began late 1800’s
  – over 10,000
 Telemarketing
  – outbound
  – inbound
            Direct Marketing
 Broadcast       channels
  – direct response ads
  – home shopping
     QVC

     HSN

  – Infomercial
 Electronic
  – web
  – email
 Others
             Developing the Mix:
              Influence Factors
   nature of the              –stage in PLC
    market
        limited   number of    introduction
         buyers                 growth
        large, dispersed
                                maturity
         market
        intermediaries         decline
    – nature of the            –product price
      product
        standardized           low
        consumer vs.           high
         business
  Push versus Pull Strategies
       Manufacturer   Manufacturer


Push                                 Pull

       Wholesaler     Wholesaler




         Retailer       Retailer




        Consumer       Consumer
        Promotion Budgeting
 Percentageof         Competitive
 sales method           parity
 – a fixed $ of         – spending what
   current or             others do
   projected           Task & Objective
 Sum   per unit        –   set objectives
 – fixed amount         –   select tasks
   based on sales       –   cost out
                        –   sum up
Promotion Budgeting
     Measuring Effectiveness
 Promotional       Indirect
 Objectives         –meeting
  – to inform        objective
  – to persuade
                    –recall
  – to remind
                    –readership
 Direct   Sales
  – sales per $
   Measuring Effectiveness
Online   measurement
 –hits/visits
 –ability to measure action
 –two techniques for setting price
  CPM

  click-throughs
Social Issues –Promotion Value
 Criticism       Response
 –taste           –freedom of
 –lack of          choice
  contribution    –information
 –cost            –used for
 –persuasive       socially valued
  intent           causes
           Social Issues
 Non-profit        Economic(512)
 –use promotion     –Economies of
  as well            Scale
                    –Large
 –it’s effective     employment
                    –<units sold =
                     Lowers
                     costs/unit