Integrated Marketing Communications

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Integrated Marketing Communications

• John T. Drea
• Associate Professor of Marketing
• Western Illinois University

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Marketing Communication

• The process of sending and receiving
  communication concerning marketing between buyers
  and sellers
• A two-way process.
• Promotion focuses on communication from sellers
  to buyers, while marketing communication is a
  more encompassing term.

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Push and Pull Strategies

• Push targeting channel members to get them to
  carry a product.
• attempt is to push the product through the
  channel
• usually involves trade promotions and personal
  selling

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Push and Pull Strategies

• Pull targeting final consumers to get them to
  demand a product, so channel members will need to
  carry the product.
• attempt is to use consumer demand to pull the
  product through the channel.
• advertising and consumer-directed sales promotion
  (especially couponing) are common means of
  implementing a pull strategy.

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Push and Pull Strategies

• In reality, most companies use a combination of
  push and pull in their promotional strategies.
• A product like Nicoderm gum is promoted through
  push (samples to physicians, sales calls on
  physicians) and pull (ads to final consumers)

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AIDA Model of Promotion
Attention
AIDA is a linear process You must capture
attention before you can develop interest,
interest must be developed before desire, etc.
Interest
Desire
Use the appropriate promotional tools Dont try
to do it all with one ad!
Action
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AIDA Model of Promotion

• AIDA - Attention, Interest, Desire, Action
• A linear, sequential process based on a
  tripartite approach to attitude, in which we
  believe that cognition precedes affect, which
  precedes behavior.
• AIDA is best applied to a promotional objective,
  not to a single advertisement.

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AIDA Model of Promotion

• Step 1 Attention
• The first step is to create awareness, then
  develop basic cognitive beliefs about the
  product/service.
• Advertising, public relations, or personal
  selling can all be used to accomplish this.
• What are the beliefs target market members should
  have about your product? Is their existing
  knowledge accurate?

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AIDA Model of Promotion

• Step 2 Interest
• The second step is to create positive feelings
  toward the product/service through first
  developing a liking for the brand, then
  preference.
• Advertising is effective at developing liking,
  weaker at developing preference (selling and
  public relations can play greater roles).
• What like your product? What prefer your
  product?

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AIDA Model of Promotion

• Step 3 Desire
• This is the formation of a purchase intention a
  conviction by the consumer that is the brand they
  should buy.
• The issue here is to more someone from a
  preference to an intention.
• Increase value in the buyers eyes
• Sales promotion and personal selling are
  particularly useful here.

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AIDA Model of Promotion

• Step 4 Action
• Purchase intention is not a purchase.
• Need to stimulate the buyer to take action.
• Possibilities Time sensitive offer, emphasis on
  positive or negative reinforcement.
• You must get buyers to perceive that there is
  more value to action than inaction (ratio of
  benefits to costs)

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Message and Media Strategies

• Message Strategy
• What is it you want the buyer to think/feel/do?
• Be specific How many people are expected to do
  what?
• Media Strategy
• What combination of media will you use to
  accomplish the message strategy?
• Be specific times, locations, good fit between
  audiences and target market.

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Evaluating Media

• Newspapers
• Popular for local advertising
• Good reach
• Some selectivity
• Good for detail
• Not time based
• Poorer reproductions (than magazines)
• Clutter

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Evaluating Media

• Television
• Most powerful for images, memorable
• Selective but fragmented
• Time-based
• Expensive to produce and to air
• Can be time consuming to produce and schedule.

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Evaluating Media

• Radio
• Less selective but fragmented
• Inexpensive - low cost per thousand exposures
• Difficult for detailed products or those which
  need to be seen.
• Excellent for triggering images created by other
  media.
• May not have full attention of listener.
• Good for an interrupt to another destination.

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Evaluating Media

• Outdoor
• Low cost per exposure
• Good reproductions
• Poor at detailed messages
• Excellent for some direct, action-oriented
  messages
• Time-bound
• Excellent for triggering images created by other
  media.

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Evaluating Media

• Point-of-Purchase (POP)
• Excellent for triggering action, especially for
  impulse purchases.
• Can lead to clutter.
• Works best when you can differentiate your offer
  from others.

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Evaluating Media

• Magazines
• Can be broad or very selective.
• Excellent quality of reproductions.
• Higher cost per exposure (than newspapers)
• Fragmented
• Longer lead times

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Choosing Within a Medium

• Reach
• the number of target consumers exposed to an ad
  at least once (usually during a four week period)
• If there are 100,000 in the target market, and
  60,000 see our ad at least once, our reach is
  60,000.
• Reach does not measure recall.

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Choosing Within a Medium

• Frequency
• The average number of times an individual is
  exposed to a message (usually during a four week
  period)
• Avg. Freq. Total Exposures/Reach
• Question If 40,000 saw our ad three times and
  20,000 saw our ad five times, whats our
  frequency?
• (40,000 x 3) (20,000 x 5)/60,000 3.67

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Choosing Within a Medium

• Gross Rating Points
• Reach x Frequency Gross Rating Points
• 60,000 x 3.67 220,000
• Cost per Thousand (CPM)
• the price of a single ad/the audience size
• If an ad cost 50,000 and was viewed by 24
  million, whats the CPM?
• 50,000/24,000,000 2.08 per thousand

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Consumer-Oriented Sales Promotions

• Coupons
• Rebates
• Samples
• Price-Offs (e.g.., price marked is 1 less than
  SRP)
• Bonus Packs (e.g., 25 more free!)
• Continuity Plans (buy 10 gallons, get next one
  free!)
• Contests and Sweepstakes
• The key is attracting people who would not have
  bought without the promotion!

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Trade-Oriented Sales Promotions

• Buying Allowance cash for a certain quantity
  purchased
• Free Goods additional free product contingent
  upon purchase of a minimum quantity
• Promotion Allowance a payment contingent upon
  the re-seller performing certain promotional
  tasks
• Count-Recount a payment for each item moved out
  of inventory during a time period
• Slotting Allowance a payment for a preferred
  shelf space

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Trade-Oriented Sales Promotions (cont.)

• Cooperative Advertising Long-term contract in
  which a manufacturer agrees to reimburse a
  retailer for some expenses for promoting the
  manufacturers products during a contract period
• Push Money payment direct from the mfg. to the
  retail sales representative for each product sold
• Sales Contests Incentives for achieving sales
  targets. Everyone must believe they can win!
• Dealer Loaders A free item when purchasing a
  minimum quantity (e.g., a rack, a display unit)

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Public Relations

• Four types of publicity
• News publicity
• Feature articles
• Product publicity
• Emergency publicity
• The power of public relations comes from its
  believability through the news media.

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Thoughts on Smart Media Decisions...

• Use inexpensive media for cheap cognitive replays
  of expensive messages
• Retailers Use coop ad dollars whenever possible
• Ads burn-out faster when there is little learning
  to be achieved.
• Attention is the precursor to all in advertising.

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Thoughts on Smart Media Decisions...

• Use ad agencies
• Your ads must standout from others
• Be clear and know what you are trying to achieve
• Direct vs. indirect
• Communicate in advance what the campaign is
  supposed to accomplish, and how its success will
  be assessed.