Integrated Marketing Communications

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Lecture 9

Integrated Marketing
Communications

1-1
Integrated Marketing
Communications
• Integrated Marketing Communications (IMC)
– “…the strategic, coordinated use of promotional
elements to ensure maximum persuasive impact on the
firm’s current and potential customers.”
• Reasons that IMC is important:
– Foster’s long-term relationships
– Reduces or eliminates promotional redundancies
– Technology allows better targeting of customers

10-2
Components of IMC Strategy

Exhibit 10.1 10-3


Strategic Issues in Integrated
Marketing Communications
• IMC must have clear promotional goals and
objectives
• The AIDA Model
– Attention
– Interest
– Desire
– Action
• Promotional goals with respect to the supply chain
– Push or Pull Strategy?

10-4
Promotional Strategy over the
Product Life Cycle

Exhibit 10.2 10-5


Discussion Question

• Review the steps in the AIDA model. In what


ways has promotion affected you in various
stages of this model? Does promotion affect you
differently based on the type of product in
question? Does the price of the product (low vs.
high) make a difference in how promotion can
affect your choices? Explain.

10-6
Advertising

• Types of Advertising
– Institutional Advertising
– Product Advertising
• Determining the Advertising Budget
– Objectives and task approach
– Percentage of sales approach
– Competitive matching approach
– Arbitrary approach

10-7
Spending on National Advertising

Exhibit 10.3 10-8


Online Advertising
Placements by Industry

Exhibit 10.4 10-9


Top 20 Internet Advertisers

Exhibit 10.5 10-10


Recall of Advertising Slogans
for Major Brands

Exhibit 10.6 10-11


Discussion Question

• What does the future hold for traditional mass


media advertising? If you were the CEO of a
major television network, magazine publisher, or
newspaper company, what you be doing now to
ensure the livelihood of your company in 10 to
20 years?

10-12
The End of TV Advertising?
• Consumers are faced with an increasing array of media
and entertainment choices (e.g. TiVo, iPods, DVDs,
video games, cell phones).

• Do these competitors spell the end for traditional


television advertising? What can TV executives do to
retain this critical source of revenue?

Beyond the Pages 10.1 10-13


Marketing Strategy in Action
• The Dairy Board’s “Got Milk” campaign is a very good
example of successful product advertising.

• How does this type of advertising benefit all sellers in the


market? What is the primary goal of this type of
advertising?

10-14
Evaluating Advertising
Effectiveness
• Key Considerations:
– Evaluating the achievement of advertising objectives
– Assessing the effectiveness of advertising copy,
illustrations, and layouts
– Evaluating the effectiveness of various media
• Timing of Evaluations:
– Pretest –through focus group
– During – actual customer behavior
– Posttest

10-15
Public Relations
• Public Relations Methods
- News (or press) releases - Event sponsorship
- Feature articles - Product placement
- White papers - Employee relations
- Press conferences

• Negative Public Relations


– Honest is the best policy
– Open access to information is critical

10-16
The Strongest and Weakest
Corporate Reputations

Exhibit 10.7 10-17


Personal Selling and Sales Management

• The Sales Management Process


– Developing Sales Force Objectives
– Determining Sales Force Size
– Recruiting and Training Salespeople
– Controlling and Evaluating the Sales Force
• The Impact of Technology on Personal Selling

10-18
Comparison of Sales Force
Compensation Methods

Exhibit 10.8 10-19


Sales Promotion

• Sales Promotion in Consumer Markets


- Coupons - Point-of-purchase
- Rebates - Premiums
- Product samples - Contests and sweepstakes
- Loyalty programs - Direct mail

• Sales Promotion in Business Markets


- Trade allowances - Cooperative advertising
- Free merchandise - Selling incentives
- Training assistance

10-20
Spending on Various
Sales Promotion Activities

Exhibit 10.9 10-21


Discussion Question

• What would happen if a company suddenly


stopped using sales promotion activities after
having used them for a long period of time? Is it
possible for a company to become dependent on
the use of sales promotion strategies? Explain.

10-22

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