Integrated Marketing Communication

Integrated Marketing Communication

• Coordinates all promotional activities (advertising, personal selling, sales promotion, public relations, and direct marketing) to convey a consistent message to all audiences.

Promotional Mix

• Used to inform prospective buyers about product benefits.
• Persuade buyers to try the product.
• Remind buyers of benefits experienced from using the product.

Five Promotional Elements

• Advertising (any paid, non-personal communication about an organization, product, service, or idea by a sponsor; uses mass media; no immediate feedback).
• Personal selling (two-way communication between buyer and seller).
• Public relations (influencing feelings, opinions, or beliefs about a company and its products; publicity is a non-personal, indirectly paid presentation).
• Sales promotion (short-term value inducement for product or service).
• Direct marketing (direct communication to generate a response).

Mass Selling

• Advertising Advantages: attention-getting, communication of benefits, control over message and sending. Disadvantages: significant production and placement costs, difficulty in measuring effectiveness of message.
• Public Relations Advantages: credibility, effective when consumers lack product knowledge. Disadvantages: lack of control over messages.

Customized Selling (Personal Selling)

• Two-way communication between buyer and seller.
• Advantages: Control over presentation to the target audience, able to assess buyer reaction to message and adjust accordingly.
• Disadvantages: High cost per contact, possible inconsistencies in messages depending on salesperson.

Direct Marketing

• Direct communication with consumers.
• Advantages: Targeted, customizable.

Developing the Promotional Mix (Product Life Cycle)

• Introduction - Goal: inform consumers and raise awareness.
• Growth - Goal: persuade customers to buy the product; solidify distribution; emphasize brand differences.
• Maturity - Goal: maintain existing customers and remind them of the product.
• Decline - Goal: phase out product.

Product Characteristics

• Complexity: Technical sophistication. Higher complexity leads to more customized media.
• Risk: Financial, social, or physical risk associated with the purchase. Higher risk leads to more customized media.
• Ancillary Services: Services or support needed after purchase. Higher service needs lead to more customized media.

Stages of the Consumer Journey

• Pre-purchase: Focus on advertising to inform and stimulate trials.
• Purchase: Focus on advertising, personal selling, and direct marketing.
• Post-purchase: Focus on personal selling and public relations to assure the right purchase was made.

Channel Strategies

• Push Strategy: Directs promotional mix to channel members to encourage ordering and stocking products.
• Pull Strategy: Directs promotional mix at ultimate consumers to encourage retailer requests.

Identifying the Target Audience

• The proportion of the target market the promotional mix targets.

Specifying Promotion Objectives

• Place in consumer hierarchy of effects/Purchase Funnel.
• Awareness -> Interest -> Evaluation -> Trial -> Adoption

Setting the Promotion Budget

• Percentage of Sales: Promotion budget as a % of past/anticipated sales
• Advantages: Simple financial safeguard. Disadvantages: Focuses on short-term sales.
• Competitive Parity: Match competitor's spending.
• Objective and Task: Determine promotion objectives, tasks, and costs.

Selecting the Right Media

• Reach: Number of different people/households exposed to an advertisement.
• Rating: Percentage of households tuned to a medium.
• Frequency: Average number of times a target is exposed to a message.
• Gross Rating Points (GRPs): Reach multiplied by frequency.
• Cost Per Thousand (CPM): Cost to reach 1,000 individuals.

Scheduling Advertising Schedule

• Continuous (Steady) Schedule: Suitable for mass products.
• Flighting (Intermittent) Schedule: Suitable for seasonal products.
• Pulse (Burst) Schedule: Mass products with strong seasonal spikes

Advertising Program Execution

• Portfolio Testing: Testing alternative ad copies/commercials.

Carrying Out Promotions

• Jury Tests: Panel of customers to evaluate responses to ads.
• Theater Tests: Showing new commercials in movie theaters.

Sales Promotion

• Inquiry Tests: Offer information, samples, or premiums.
• Sales Tests: Use controlled experiments to compare ad effectiveness.

Consumer-Oriented Sales Promotions

• Coupons: Offer discounts for trial.
• Deals: Short-term price reductions.
• Premiums: Free merchandise.
• Contests/Sweepstakes: Interactive activities (e.g., giveaways).
• Samples: Free trial products.
• Loyalty Programs: Rewards for repeat purchases.
• Point-of-Purchase Displays: Displays at checkout counters.
• Rebates: Cashback based on purchase.

Trade-Oriented Sales Promotions

• Allowances/Discounts: Refunds for specific actions.
• Cooperative Advertising: Manufacturer pays for retailer's advertising.
• Training of Distributors' Salesforces: Develop sales programs.

Public Relations (Methods)

• Publicity Tools: News releases, news conferences, public service announcements.
• News Release: Announcements and changes for media dissemination.
• News Conference: Meetings with media representatives.
• Public Service Announcements: Donations of media time via nonprofit organizations or high-visibility individuals.

Personal Selling (Sales Management)

• Planning, Implementing, Evaluating: Selling program for personal selling.
• Relationship Selling: Building ties to customers for repeat business.
• Order Taker: Processes routine orders.
• Order Getter: Identifies, persuades, and follows up on customers.
• Customer Service: Augmenting the selling effort via various services.
• Missionary Salespeople: Doing promotions and introducing new products.
• Sales Engineers: Identify, analyze, and solve customer problems.
• Team Selling: Professionals in selling to and servicing major customers.
• Conference Selling: Buyers and seller meet to discuss problems/opportunities.
• Seminar Selling: Educational program for customers technical staff.

This quiz covers the foundational concepts of Integrated Marketing Communication, including the promotional mix and its key components. Explore how advertising, personal selling, public relations, sales promotions, and direct marketing come together to create a unified message for consumers.