How to communicate your product Part I

Current Terminology IBP: Integrated Brand Promotion IMC: Integrated Marketing Communications Often used interchangeably Here we use IMC

What does IMC mean? Coordination of all promotional messages Telling the same story every time Consistency and synergy Maintain positioning Essential for branding

Categories of Communication Interpersonal Mass

The Communication Process

The Communication Process

What does Encoding mean?

The AIDA Model

Objectives of IMC PLC Stages: Informing Reminding Persuading Target Audience PLC Stages: Introduction Early Growth Growth Maturity

Inform Increase awareness How product works New uses Company Image

Informative Ad

Persuade Encourage brand switching Change customer’s perceptions Influence immediate buying decision Persuade customers to call

Remind Product is still needed Where it is sold Maintain brand awareness

The Lagged Effect Consumers don’t act immediately Advertising effect can build over time Be top of mind at time of need Several exposures

The Promotional Mix Advertising Public Relations Sales Promotions Personal Selling Direct Marketing Digital Marketing Online Marketing Social Media Mobile Marketing

AIDA & the Promo Mix Attention Interest Desire Action Advertising Public Relations Sales Promotion Personal Selling Social Media Very Effective Somewhat Effective Not Effective

How to choose promotional mix? Nature of the product Stage in PLC Target market characteristics Type of buying decision Promotion funds Push or pull strategy

Product Life Cycle and Promo Mix Light Advertising; Pre-introduction publicity Heavy Advertising; PR for awareness; sales promotion for trial Advertising, PR, brand loyalty; personal selling for distribution Ads decrease; sales promotion; personal selling; reminder & persuasive AD/PR decrease; limited sales promotion; personal selling for distribution

Buying Decision & Promo Mix Advertising Sales Promotion Routine Personal Selling Neither Routine nor Complex Public Relations Print Advertising Complex

Push vs. Pull Strategy

Advertising Most visible IMC element Effective to build awareness Paid Mass Audience

Digital Marketing Traditional Online Ads Websites Blogs Social Media #SocialTV SEM SEO Mobile/SoLoMo

Digital Trends Social Shopping SocialTV Social Media Mobile FB Want Button SocialTV Social Media Twitter Pinterest Mobile Location Based

Establishing a Budget Method Definition Limitations Competitive Parity Budget = Market Share Does not stimulate growth No adjustments Percentage of sales Budget = %(past sales) Budget = %(future sales) Doesn’t consider new plans Ties to sales Available Budget Budget = Leftover Assumes no connection to sales or profit Objective & Task Budget = cost of achieving objectives Requires accurate estimation Lengthy

Marketing Metrics = Success or Failure Traditional Media Frequency of exposure Reach of exposure GRP (reach x frequency) House holds watching the tv program % Web-Based Media SEM Impressions CTR ROI = (sales revenue – advertising cost)/Advertising Cost