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Integrated Marketing Communications

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Chapter 12 Instructor Shan A. Garib, Fall 2012 * – PowerPoint PPT presentation

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Title: Integrated Marketing Communications


1
Integrated Marketing Communications
  • Chapter 12
  • Instructor Shan A. Garib, Fall 2012

2
12.1 The Role of Promotion in the Marketing Mix
  • Promotion communication by marketers that
    informs, persuades, and reminds potential buyers
    of a product for the purpose of influencing their
    opinion or getting a response
  • Promotional Strategy is a plan for the optimal
    use of the elements of promotion advertising,
    direct response, public relations, personal
    selling, event marketing (sales promotion),
    alternative marketing communication approaches
    (on-line marketing)

3
Promotional Mix Tools
  • The tools of the promotion mix can be used to
  • Inform prospective buyers about product benefits
  • Persuade prospective buyers to try product
  • Remind buyers of benefits they enjoyed by using
    the product

4
Promotional Mix Tools
  • Outbound marketing widely broadcasting messages
    using ads, direct mail, e-mail marketing,
    telemarketing, personal selling

5
The Role of Promotion in the Marketing Mix
  • Promotional Strategy is a plan for the optimal
    use of the elements of promotion advertising,
    direct marketing, public relations, personal
    selling, sales promotion, on-line marketing
  • -main goal to convince target customers that the
    products offered provide a competitive advantage
    over the competition
  • -unique features that make make buyer think
    product is superior eg. high QLTY

6
12.2 The Promotional Mix
  • Advertising
  • Any paid form of non-personal, one-way
    communication about an organization, product or
    service paid for by marketer
  • eg. TV commercial
  • Paid must cost money
  • Non-personal mass media without feedback
  • Identified sponsor can tell who ad is for

7
Advertising
  • Advantages
  • Attention-getting, large number of people
  • Communicates specific product benefits
  • Control what is said
  • Decide who sees message
  • Example use a channel that fits your target
    market
  • Same message to all receivers
  • Disadvantages
  • Cost per contact low but overall cost high
  • Lack of direct feedback difficult to know if
    message received

8
Public Relations
  • PR evaluates public attitudes, identifies areas
    within the organization the public may be
    interested in and excecutes a programme of action
    to earn public understanding and acceptance
  • Wants to influence the feelings, opinions or
    beliefs held by customers, suppliers and
    employees
  • Events sponsorship, image management and
    publicity are all aspects of public relations

9
Public Relations
  • Generates Publicity
  • Nonpaid presentation in news or informational
    medium
  • Advantages
  • Adds credibility
  • Disadvantages
  • Uncertain timing
  • No guarantee
  • Little control

10
Sales Promotion
  • Short-term offer to make people want to buy a
    product
  • Example Coupon, rebate, samples

11
Sales Promotion
  • Advantages
  • Stimulates sales
  • Increase participation of non-loyal customers
  • Disadvantages
  • Benefits are temporary
  • Advertising support necessary for new customers
  • Continuous sales promotions do not work
    customer gets in habit of waiting for sales

12
Personal Selling
  • Conversation between a buyer to a seller, often
    face-to-face, to influence a buyers decision
  • -paid selling
  • -maximize revenue and profits
  • -business to business, business to consumer
    build LTR ie. relationship selling
  • eg.University recruiters
  • Retail salespeople
  • Army recruiters

13
Personal Selling
  • Advantages
  • Control to whom presentation is made
  • Seller can see and hear buyers reaction
  • If not positive, message can be adjusted
  • Other channels allow for some control, but there
    will be wasted coverage
  • Disadvantages
  • Different sales people change the message
  • High cost most expensive

14
Direct Marketing
  • Direct communication with carefully selected
    customers
  • Advantages
  • Customized to meet specific needs
  • Messages adapted to facilitate one-on-one
    relationships
  • Results can be measured and altered
  • Internet easy way to directly communicate
  • Disadvantages
  • Requires accurate, up-to-date information on
    target market
  • Maintain customer information is expensive

15
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16
12.3 Marketing Communication
  • In the past, advertising, personal selling, sales
    promotion, public relations and direct marketing
    have been done separately
  • Now, it is important to make sure they all work
    together and maximize promotional budget and
    customer impact

17
The Communication Process
  • Communication
  • Exchange and share meanings to others through
    common set of symbols
  • Divided into two categories
  • 1. Interpersonal Communication direct, face to
    face
  • -can see reaction and respond immediately
  • eg. salesman
  • 2. Mass Communication communicating a concept
    or message to large audience
  • eg. TV or Magazine
  • -marketer does not know consumer
  • -cant respond to reactions

18
The Communication Process
  • Communication requires six elements
  • A source
  • company or person with information to convey
  • A message
  • information sent by a source to receiver
  • A channel of communication
  • Way to convey message
  • A receiver
  • Consumers who read, hear, or see the message sent

19
Encoding and Decoding
  • Encoding the process of having the sender
    transform an abstract idea into a set of symbols
  • Decoding the process of having the receiver take
    a set of symbols and transform them into an
    abstract idea

20
BMW Ad
  • Source BMW
  • Encoded Message the advertisement
  • Channel magazine
  • Decoded message Any weather, any corner, any
    pace, any passion

21
Errors in System
  • Source might not correctly change the message
    into symbols
  • An encoded message might be sent through the
    wrong channel and not reach receiver
  • The receiver may not properly transform symbols
    into idea
  • Effective communication is difficult!

22
Field of Experience
  • For the message to be communicated effectively,
    the sender and receiver should have a mutually
    shared field of experience
  • Field of experience similar understanding and
    knowledge

23
Response and Feedback
  • Response
  • Impact the message had on receivers knowledge
  • Feedback
  • The senders interpretation of the response
  • Proves whether the message was decoded and
    understood as intended
  • Feedback in this class is used to make sure we
    all understand each other and that the class is
    going well

24
Noise
  • Outside factors that can work against effective
    communication by distorting a message or feedback
  • Example
  • A printing mistake
  • Words or pictures that dont communicate clearly
  • Salespersons accent, use of terms or slang isnt
    understood

25
12.4 The Goals and Tasks of Promotion
  • Promotion seeks to modify behaviour and thoughts
  • -also tries to reinforce existing
    behaviour -performs three tasks
  • 1) inform
  • 2) persuade
  • 3) remind

26
The Goals and Tasks of Promotion
  • Promotion seeks to modify behaviour and thoughts
  • 1) inform convert an exisiting need into a
    want or to stimulate interest in a new product
  • -usally during early stages of life cycle
  • -complex technical products use promotion even
    after purchase -higher risk purchase

27
The Goals and Tasks of Promotion
  • Promotion seeks to modify behaviour and thoughts
  • 2) Persudae designed to stimulate a purchase
    or actions
  • -usally during growth stage of life cycle
  • -consumers have general awareness of product
    category and how it fulfills need -emphasizes
    competitive advantage
  • -appeal to emotional need
  • -sometimes in mature stage it is used to elicit
    brand switching

28
The Goals and Tasks of Promotion
  • Promotion seeks to modify behaviour and thoughts
  • 3) Reminding designed to keep product in
    publics mind
  • -usally during maturity stage of life cycle
  • -consumers already know product is good

29
Promotional Goals and the AIDA Concept
  • Promotion al goal to have someone buy product
  • Classic model for achieving these goals is the
    AIDA concept
  • -consumers respond to marketing messages in a
    cognative, affective, and conative sequence

30
Promotional Goals and the AIDA Concept
  • The following are the four steps in the purchase
    decision process
  • Attention gain attn of target market
  • Interest create interest in the product eg
    arrange demos of iPad
  • Desire create brand preference by highlighting
    unique features that full-fill needs
  • Action continue to advertise to effectively
    communicate features and benefits

31
Developments in Marketing Communications
  • A Changing Consumer
  • Time spent with the media
  • Most time on the internet, TV second
  • 18-24 spend most time on net
  • Use of Technology
  • Affordable leads to ease of use, portable
    communications
  • Social Media form of on-line media allows create
    network of friends to exchange msgs, pics, vids,
    self-expression

32
Developments in Marketing Communications
  • A Changing Consumer
  • An evolving Media
  • Offline media now creating websites, APP, TWITTER
    eg mags, TV shows, news (RT)
  • A Changing Advertiser
  • Spending on on-line ads is second to TV

33
The Marketing Communications Industry
  • Five areas that work together to form the
    industry
  • The media
  • Agencies
  • Research companies
  • Associations
  • Regulatory bodies

34
The Marketing Communications Industry
  • Five areas that work together to form the
    industry
  • The media
  • TV, Internet, Mags, paper, radio, out-of-home,
    mobile
  • Out-of-Home Advertising Outdoor reaches
    consumers outside the home, in transit, in
    business locations eg billboards, posters,
    electronic signs
  • Mobile Marketing using mobile devices to
    communicate with consumers eg txt msgs

35
The Marketing Communications Industry
  • New Media Terms
  • Paid media media time purchased eg TV
    commercials
  • Owned media TV channels that a company controls
    eg website CBC used to communicate
  • Earned Media free publicity through unpaid
    media mentions and word-of-mouth

36
The Marketing Communications Industry
  • Five areas that work together to form the
    industry
  • Marketing Communication Agencies
  • Provide marketers with expertise on how best to
    communicate messages
  • Research Companies
  • Need metrics on readership numbers, consumer
    trends
  • Eg Nielson
  • Associations
  • Provide research data, and host informative
    events and educational workshops for the industry
  • eg. Marketing week hosted by the CDN marketing
    association, and Marketing magazine event
    focussed on media innovation

37
The Marketing Communications Industry
  • Five areas that work together to form the
    industry
  • Regulations
  • Limitations and restrictions placed on marketers
  • Four main groups
  • Advertising Standards Canada (ASC)
  • Self-regulatory, non-government
  • Sets and regulates advertising, advises
  • Uses consumer complaint process to review ads

38
The Marketing Communications Industry
  • Five areas that work together to form the
    industry
  • The Canadian Radio-Television and
    Telecommunications Commission (CRTC)
  • Regulates the broadcast and television industry
    including licencing of stations
  • The Canadian Marketing Association
  • Uses a code of ethics and standards of practice
    to guide the marketing industry on telemarketing,
    email marketing, cell marketing, contests,
    fundraising

39
Approaches to Marketing Communications
  • Inbound marketing consumers find products
    through online techniques eg search engine
    optimization, pay-per-click ads, and social media
  • -it is the result of paid, unearned and owned
    media
  • -smaller businesses use more

40
Approaches to Marketing Communications
  • Integrated Marketing Communications (IMC)
    designing a marketing programme that coordinates
    all promotional activities
  • -each element has a distinct role in overall
    campaign eg use TV ads, mag ads, personal
    selling, events, on-line, mailing

41
Marketing Communications Tools
  • Advertising see previous slides for definition
  • Eg.
  • TV
  • Internet
  • Display ads use of online ads with graphics
    places on website they can be static or dynamic
  • Display ads are also called banner ads in form of
    boxes, leaderboards stretch across top of
    webpage,
  • skyscrapers tall, slim vertical on side of
    page
  • advergamming banner ads embedded within
    online games they appear like posters or
    billboards in the game
  • Display ads can also take over home pages this is
    called home page take overs

42
Marketing Communications Tools
  • Advertising see previous slides for definition
  • Eg.
  • TV
  • Internet
  • On-line Video advertising use of video ads on
    the internet eg. a pre-roll TV tape that run
    before watching a TV show, movie, news clip
  • Pay-per-click ads (PPC) - mini text ads that
    are served during keyword searches
  • Search engine gets paid when the ad is clicked
  • Newspapers
  • Mags
  • Radio
  • Outdoor/Transit

43
Marketing Communications Tools
  • PR see previous slides for definition
  • Eg.
  • Press releases an announcement sent out to
    media
  • Press Conferences when media are invited to
    informal meeting with company
  • Special Events sponsorships
  • Company Reports formal company info published
    to spread positive msgs
  • Social Media SM release use of on-line media
    to communicate with consumers

44
Marketing Communications Tools
  • Sales Promotion see previous slides for
    definition
  • User Generated Content (UGC) content created by
    participants ie. Contest Interaction by txting
  • Augmented Reality (AR) real world images
    interact with computer generated information to
    provide additional info to views eg QR codes to
    access online content

45
Marketing Communications Tools
  • Direct Response see previous slides for
    definition
  • Lead generation request for additional info by
    consumer
  • Traffic generation visit to a website, or
    location
  • Event Marketing and Sponsorship
  • Event Marketing - Creation or involvement of a
    brand in an experience or occasion that heightens
    its awareness, creates positive association and
    generates desired responses

46
Marketing Communications Tools
  • Event Marketing and Sponsorship
  • Sponsorship a company paying a fee to be
    included in an event eg marathon
  • Personal Selling -see previous slides for
    definition
  • Alternative Marketing Communication Approaches
  • Word-of-mouth
  • Product placement
  • Branded entertainment when company pays to have
    whole episode focussed on its business eg The
    Apprentice

47
Marketing Communications Tools
  • Unique On-Line Tools
  • Search Engine Marketing (SEM) includes search
    engine optimization (SEO) and pay-per-click ads
  • Search engine optimization (SEO) looks at web
    design, codes, written content, links and updates
    to ensure that websites are highly rated
  • Microsites short term promos
  • Corporate Websites access to info about company

48
Marketing Communications Tools
  • Unique On-Line Tools
  • Social Network Marketing use of on-line
    communities to interact with consumers by sharing
    ideas, events and offers.
  • Affiliate Marketing promotion of business
    through online affiliates who get commissions for
    business generated

49
Planning and Evaluation
  • Designing Marketing and Comm programmes
  • Push Strategy focus communication efforts on the
    distribution channel eg retailers, distributors,
    wholesalers
  • Pull Strategy focus efforts on end user eg
    consumer to build awareness, trial and demand
  • The Customer Advocacy Funnel

50
Planning and Evaluation
  • The Customer Advocacy Funnel encompasses the
    latest in marketing approaches where, over time,
    the positive connections that customers make with
    brands encourage them to become brand advocates
  • Steps
  • Awareness using web
  • Interest use experts to demo
  • Engagement social media added to mix to
    generate additional interest

51
Planning and Evaluation
  • The Customer Advocacy Funnel
  • Steps
  • Trial contest, samples, free downloads and
    trials
  • Purchase display ads can prompt purchases
  • Retargeted ads display ads redelivered to
    computers IP address after a consumer clicked on
    an ad
  • Loyalty through CRM programmes that reward
    continued purchases
  • Advocacy on-going comm through email, blogs,
    social networks used to provide consumers with
    info that can be passed on

52
Planning and Evaluation
  • Steps in the Marketing Communications Process
  • Specify Integrated Marketing Communication (IMC)
    objectives formalizes purpose of the
    promotional programme eg build brand awareness,
    creating customer engagement, increase brand
    loyalty
  • ID the target audience ID demo, geo, psyco,
    behavioural data
  • Consumer Touch Points points of interaction
    that can be used to connect with customers
    including personal time at home, shopping time,
    workplace, travel time or face-to-face

53
Planning and Evaluation
  • Steps in the Marketing Communications Process
  • 3. Set the promotional Budget allocated initial
    amount and then change
  • 4. Design the Promotional Programme key
    component is messaging
  • - needs to be visible and resonate with audience
  • Promotional Mix - promotional tools used to comm
    with the target market using both on-line and
    offline modes

54
Inform Persuade Remind Min
Spending
55
Planning and Evaluation
  • Steps in the Marketing Communications Process
  • 5. Schedule and Run the IMC elements make sure
    individual aspects work together
  • 6. Evaluate the Programme and Recommend Changes
    Four Levels
  • 1. Messaging is evaluated before programme is
    developed
  • 2. once programme live need research to measure
    awareness and elements like likeability,
    messaging comprehension, attitude changes towards
    the brands

56
Planning and Evaluation
  • Steps in the Marketing Communications Process
  • 6. Evaluate the Programme and Recommend Changes
    Four Levels
  • 3. Once programme over each element evaluated
    against expectations
  • 4. Once programme over promotional programme
    will be measured against objectives
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