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Integrated Marketing Communications

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Presentation on theme: "Integrated Marketing Communications"— Presentation transcript:

1 Integrated Marketing Communications
GLOBAL MARKETING Integrated Marketing Communications

2 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.

3 Communication Vehicles
Contrast communication options along two dimensions: Broadcast vs. interactive (1-way message vs. 2-way message) Mass vs. addressable/customized

4 Position of Major Communication Vehicles
Salesperson Addressable/ Customized Web Telemarketing Direct Direct Mail Media Radio Newspapers Catalogs Infomercials Magazines Mass Television 1-way 2-way

5 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 10,000,000 x 1000 = $18.50 CPM

6 Television, continued Limitations Ads are viewed as intrusive--zapping
Clutter Sensory adaptation

7 Leading Media... Newspapers 90% of expenditures for local coverage
Most consumers view newspaper ads as informational. Limitations: Relatively weak production quality Limited life

8 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

9 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

10 Characteristics of Direct Marketing Communications
Infomercials High-quality, detailed marketing messages Deliver to well-defined audiences

11 Direct Marketing... Catalogs High-quality
Highly customizable due to database management

12 Direct Marketing... Direct Mail Letter, sales brochure
Includes directions for ordering or requesting information Highly customizable Limitations “junk mail”

13 Direct Marketing... E-mail Offers more opportunity for customization
Quicker exchange of information

14 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”

15 Characteristics of the Web
Opportunity to exchange customized messages and responses instantaneously “Hyper impulsivity” Great potential for bringing the marketing system all together

16 Role of Promotions in Integrated Marketing Communications
Promotions are a specific inducement to generate purchase behavior. Consumer promotions Trade promotions

17 Consumer Promotions Free samples Price-oriented programs Premiums
Cents-off coupons Price pacs Mail-in refunds Bonus pacs Rebates Premiums Tie-ins Continuity programs Contest/sweepstakes

18 Trade Promotions Slotting allowances Co-op advertising Floor planning
Temporary price cuts Volume discounts Contests

19 Rounding out IMC: Event Marketing Sponsorships
Publicity and Public Relations

20 Formulating the IMC Program
6 M’s Model for Communication Planning 1. Market 2. Mission 3. Message 4. Media 5. Money 6. Measurement

21 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

22 Hierarchy Model: AIDA

23 Hierarchy-of-Effects Model

24 Innovation-Adoption Model

25 Communication Model

26 Customer Response Index
The combination of effects in the customer response hierarchy. Tool for adjusting communications or other marketing tactics.

27 Customer Response Index
CRI=% aware x % that comprehend x % that are interested = .63 x .54 x .77 = .26 or 26% Action (90%) Intentions (68%) Interested (77%) No Action (10%) Comprehend (54%) No intentions (32%) Aware (63%) Not interested (23%) Don’t comprehend (46%) Unaware (37%)

28 2. Mission Communication objectives, related to customer response
Build Awareness Message Reinforcement Stimulate Action

29 3. Message Decisions related to message content, structure, format, and source What kind of an appeal? One-sided or two-sided message? Peripherals Spokesperson

30 4. Media Decisions related to media communication channel
Decisions related to media exposure Target market reach Frequency Advertising effectiveness GRPs CPMs

31 Media Exposure (continued)
Decisions related to message reinforcement Pulsing Heavy-up message frequency Decisions related to use of consumer promotions

32 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

33 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

34 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.

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