Integrated Marketing Communications, & Dire

I.The Communication Process

Involves both a source (sender) and a receiver

Begins when sender has a thought or idea and wants to share it with one or more receivers. Sender Originator (source) of the message in the communication process. Conversion of the sender's ideas and thoughts into a message Words Symbols Sounds Pictures Encoding Colors Numbers Space Gestures

Themes Required for transmission

Movement

Channel

Noise

voice, gesture, newspaper, or other communication medium. Anything that interferes with, distorts, or slows the transmission of information

Message may not be received by the desired target audience.

Receiver

Person who decodes the message.

Decoding Feedback

Interpretation of the language and symbols sent by the source through a channel.

Interpersonal communicators get the receiver's response to a message directly.

Mass communicators must rely on market research or sales trends II. The Promotional Elements

 III. Developing The Promotional Mix A. The Target Audience

Promotional programs are directed to o Ultimate consumers o Intermediaries o or both. Promotional programs directed to buyers of consumer products often use mass media because the num large. Personal selling is used at the place of purchase. Direct marketing may be used to encourage first-time or repeat purchases. Combinations are a necessity for some target audiences. Advertising directed to business buyers is used selectively. Personal selling is especially important. Because such buyers often have specialized needs or technica Personal selling is also the major promotional ingredient for intermediary

B Product Life Cycle

C Stage of the Buying Decision

Advertising is most valuable Informs potential customers about the existence of the product and the seller. Importance of personal selling is highest Sales promotion can encourage demand.

Prepurchase Stage.

Purchase Stage.

Personal contact after the sale leads to buyer satisfaction. Advertising and personal selling help reduce postpurchase anxiety.

Postpurchase Stage.

E Channel Strategies

F. Integrated Marketing Communications The concept of designing marketing communications programs that coordinate all promotional activities

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advertising, personal selling, sales promotion, public relations direct marketing

to provide a consistent message across all audiences IV. Developing the Promotional Program

A. Identifying the Target Audience B. Specifying Promotion Objectives Qualities of Good Objectives:

Designed for a well-defined target audience Measurable

Cover a specified time period. Sequence of stages a prospective buyer goes through

Hierarchy of effects Awareness. Interest. Evaluation. Trial. Adoption Use as a tool to develop objectives Ability to recognize and remember the product or brand. Increase in desire to learn about the product features Consumers appraisal of the product on important attributes. Consumers actual first purchase and use. Repeated purchase and use of the product or brand

C. Setting the Promotion Budget

Percentage of Sales

Funds are allocated as a percentage of past or anticipated sales Advantages o simple o Provides a financial safeguard Disadvantage o Implies that sales cause promotion. rather than the other wa
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Competitive Parity

Could reduce promotion budget because of a downturn in s Matching the competitors absolute level of spending or the propo Advantage o It is important to consider the competition. Disadvantage
o

All You Can Afford Objective and Task

The competition may have different promotional objective Common to many small businesses Money is allocated to promotion after all other budget items are co Fiscally conservative This approach has little else to offer. Best approach Company o Determines promotion objectives o Outline the tasks to accomplish these objectives o Determines the promotion costs of performing these tasks. Advantages o Ties expenditure to specific objectives o Prioritizes tasks if costs are too high. Disadvantages

Requires experience and judgment.

o May require extensive reworking to meet budgets D. Selecting the Right Promotional Tools . Specify the combination of the five basic IMC toolsadvertising, personal selling, sales promotion, pu marketing. Promotion mix can vary o Simple program using a single tool o Comprehensive program using all forms.

Assess the relative importance of the various tools E. Designing the Promotion Design of the promotion plays a primary role in determining the message that is communicated to the Design activity is viewed as the step requiring the most creativity.

Design each promotional activity to communicate the same message. F. Scheduling the Promotion Determine the most effective timing. Promotion schedule describes o the order in which each promotional tool is introduced o the frequency of its use during the campaign.

Factors such as seasonality and competitive promotion activity can influence the schedule. V. Executing and Evaluating The Promotional Program

Test-result database for comparisons o Relative impact of the promotional tools o Execution options of promotion tools, o In varying situations. Information from the database will

allow informed design and execution decisions Provide support for IMC activities during internal reviews by financial or administrative perso Carrying out promotion program is expensive and time consuming. Time to implementation is longer for higher income firms.
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Trend is toward a long-term perspective integrating all forms of promotion VI. Direct Marketing A. The Growth of Direct Marketing Direct marketing growth (in terms of spending, revenue generated, and employment) has outpaced tot Continued growth will come from o Number of consumers with Internet access o Number of businesses with websites o Electronic commerce offerings .

B. The Value of Direct Marketing Consumer dont have to go to a store benefits shop 24 hours save time avoid hassles with salespeople save money fun and entertaining Privacy Customer service such o Toll-free numbers o Representatives with access to information about purchase preferences

Overnight delivery services

Seller Benefits

o Unconditional guarantees. Direct orders: From offers with all the information necessary for a prospect to make a deci transaction. Lead generation: From offers designed to generate interest in a product or service and a req information.

Traffic generation: From offers designed to motivate people to visit a business. C. Technological Issues in Direct Marketing Databases o demographic, media, and consumption profiles of customers o Allow direct marketing to specific customers. Data must be o unbiased, o timely, o pertinent, o accessible, and o organized to lead managers to decisions Some data must be collected in consumers homes Other data are available from businesses.

Technology such as optical scanners helps collect data with as little intrusion on the customer as possi D. Global Issues in Direct Marketing Global growth of direct marketing may depend on technology. Reliable physical delivery is necessary Payment is an issue. o Fewer consumers have credit cards,

Alternatives (C.O.D., bank deposits) are needed.. E. Ethical Issues in Direct Marketing Telephone calls during the dinner hour. SPAM - the proliferation of e-mail advertising. Legislatures are also taking an interest o input from consumers o input from governments
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input from direct marketing associations.