Presentation on theme: "IMC Communication Tools"— Presentation transcript:
1 IMC Communication Tools DirectMarketingInteractive/Internet MarketingAdvertisingSalesPromotionPersonalSellingPublicity/PublicRelations
2 AdvertisingAny paid form of nonpersonal communication about an organization, product, service, idea or cause by an identified sponsor.
3 Advantages of advertising Advertiser controls the messageCost effective way to communicate with large audiencesEffective way to create brand images and symbolic appealsOften can be effective way to strike responsive chord with consumers
4 Disadvantages of advertising High costs of producing and running adsCredibility problems and consumer skepticismClutterDifficulty in determining effectiveness
5 Classifications of Advertising Advertising to Consumer MarketsNational advertisingRetail/local advertisingAdvertising to increase demandPrimary demand for the product categorySelective demand for a specific brandBusiness & professional advertisingBusiness-to-business advertisingProfessional advertisingTrade advertising
6 Direct MarketingA system of marketing by which organizations communicate directly with target customers to generate a response and/or a transaction.
7 Advantages of direct marketing Changes in society have made consumers more receptive to direct-marketingAllows marketers to be very selective and target specific segments of customersMessages can be customized for specific customers.Effectiveness easier to measure
8 Disadvantages of direct marketing Lack of customer receptivity and very low response ratesClutter (too many messages)Image problems – particularly with telemarketing
9 Direct Marketing Direct marketing methods Direct mail Catalogs TelemarketingDirect response adsDirect sellingInternet
10 Interactive/Internet Marketing A form of marketing communication through interactive media which allow for a two-way flow of information whereby users can participate in and modify the content of the information they receive in real time.
11 Advantages of interactive/ internet marketing Can be used for a variety of IMC functionsMessages can be tailored to specific interests and needs of customersInteractive nature of the Internet leads to higher level of involvementCan provide large amounts of information to customers.
12 Disadvantages of interactive/ internet marketing Internet is not yet a mass medium as many consumers lack accessAttention to Internet ads is very lowGreat deal of clutter on the InternetAudience measurement is a problem on the Internet
13 Interactive/Internet Marketing Use of the Internet as an IMC ToolAs an advertising medium to inform, educate and persuade customersAs a direct sales toolTo obtain customer database informationTo communicate and interact with buyersTo provide customer service and supportTo build and maintain customer relationshipsAs a tool for implementing sales promotionAs a tool for implementing publicity/public relations programs
14 The Internet is an important IMC tool for American Airlines Source: Courtesy American Airlines.
15 Sales PromotionMarketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales.Consumer-orientedTargeted to the ultimate users of a product or serviceCouponsSamplingPremiumsRebatesContestsSweepstakesPOP materialsTrade-orientedTargeted toward marketing intermediaries such as retailers, wholesalers, or distributorsPromotion allowancesMerchandise allowancesPrice dealsSales contestsTrade shows
16 Sales Promotion Uses Introduce new products Get existing customers to buy moreAttract new customersCombat competitionMaintain sales in off seasonIncrease retail inventoriesTie in advertising & personal sellingEnhance personal selling efforts
17 Publicity Advantages of publicity Disadvantages of publicity Nonpersonal communication regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship.Advantages of publicityCredibilityLow cost (although not totally free)Often results in word-of-mouthDisadvantages of publicityNot always under control of organizationCan be negative
18 News Releases: Feature Articles: Press Conferences: Special Events: Publicity VehiclesNews Releases:Single-page news stories sent to media who might print or broadcast the content.Feature Articles:Larger manuscripts composed and edited for a particular medium.Press Conferences:Meetings and presentations to invited reporters and editors.Special Events:Sponsorship of events, teams, or programs of public value.
19 Advertising Versus Publicity FACTOR ADVERTISING PUBLICITYControl Great LittleCredibility Lower HigherReach Achievable UndeterminedFrequency Schedulable UndeterminedCost Specific Unspecified/lowFlexibility High LowTiming Specifiable Tentative
20 Tools used by Public Relations The management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.Tools used by Public RelationsPublicitySpecial publicationsCommunity activity participationFund-raisingSpecial event sponsorship
21 Personal SellingDirect person-to-person communication whereby a seller attempts to assist and/or persuade perspective buyers to to purchase a product or service.Advantages of personal sellingDirect contact between buyer and seller allows for more flexibilityCan tailor sales message to specific needs of customersAllows for more direct and immediate feedbackSales efforts can be targeted to specific markets and customers who are best prospects.Disadvantages of personal sellingHigh costs per contactExpensive way to reach large audiencesDifficult to have consistent and uniform message delivered to all customers
22 Promotional Management Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.Considerations for developing the promotional program include:Type of productBuyer’s decision processStage of product life cycleChannels of distribution
23 Integrated Marketing Communications Planning Model Review of Marketing PlanPromotional Program Situation AnalysisAnalysis of the Communications ProcessBudget DeterminationDevelop Integrated Marketing Communications ProgramsAdvertisingSalesPromotionPR/PublicityPersonalSellingDirectMarketingInternet/InteractiveAdvertisingObjectivesSalesPromotionObjectivesPR/PublicityObjectivesPersonalSellingObjectivesDirectMarketingObjectivesInternet/InteractiveObjectivesNotes:_______________________________________________________________MessageStrategySalesPromotionStrategyPR/PublicityStrategyPersonalSellingStrategyDirectMarketingStrategyInternet/InteractiveStrategyIntegration & Implementation of Marketing Communications StrategiesMonitor, Evaluate & Control Promotional Program
24 The Marketing PlanA document that describes the overall marketing strategy and programs developed for a company, product or brand. The plan includes:A detailed situation analysisSpecific marketing objectivesA marketing strategy and program that includes selection of a target market and plans for marketing mix elements4. A program for implementing the strategy5. A process for monitoring and evaluating performance
25 Situation Analysis Internal Factors External Factors Assessment of the firm’s promotional organization and capabilitiesReview of the firm’s previous promotional programsAssessment of firm or brand image and implications for promotionAssessment of relative strengths and weaknesses of product/serviceExternal FactorsCustomer analysisCompetitive analysisEnvironmental analysis
26 IMC Program Situation Analysis External Factors Environmental analysisTechnological Political/LegalDemographic Socio/CulturalEconomicCompetitive AnalysisDirect and indirect competitorsPosition relative to competitorsSize of competitors’ advertising/promotional budgetsIMC strategies being used by competitors
27 IMC Program Situation Analysis External Factors Customer AnalysisWho buys our product or service?Who initiates and makes the decisionto purchase and who influences the process?How is the purchase decision made?What attributes or criteria are important to customers?What are customers’ perceptions of and attitudestoward our company, product/service or brands?What factors influence the decision making process?Contact points where customers can be reached?
28 Analysis of Communications Process Analyze best combination of source,message and channel factors forcommunicating with target audience.Establish communication goals and objectives.
29 Potential Communications Objectives SalesCustomer loyaltyCompany imageBrand imageStore patronageService contractAn inquiryA visit by a prospectProduct trialRecommendationAdoption of the product
30 Contact Points Where Customers Can Be Effectively Reached Mass mediaBroadcast - radio/TVNewspapersMagazinesDirect MarketingInternet/interactiveBrochures, sales literaturePublicity/PREvents/sponsorshipsLocalRegionalNational/internationalSales PromotionsIn-store/POPProduct placements in movies and television showsPromotional products
31 Develop Integrated Marketing Communications Program AdvertisingDetermine objectives and budgetMessage developmentCalled “Creative Strategy”Determine basic appealDetermine main messageMedia strategyCommunication channelsType of media . . .Newspapers/MagazinesRadio/TelevisionOutdoor/SpecialtySelect specific mediaSpecific papers, magazines, TV programs, radio stations, billboards, or other media
32 Integrate and Implement Marketing Communications Strategies Integrate promotional mix strategies.Create and produce ads.Purchase media time and spaceDesign and implement direct marketing programsDesign and implement sales promotionprogramDesign and implement public relations/publicity programsDesign and implement interactive/internet marketing programs
33 Evaluate promotional program results and determine effectiveness Monitor, Evaluate and Control Integrated Marketing Communications ProgramEvaluate promotional program results and determine effectivenessTake actions to control and adjust promotional programs