Transcript Noise Noise Noise Noise Noise Noise Noise Noise

Introduction to IMC
The Communication Process
• Communications efforts should be viewed from the
perspective of managing customer relationships over
time.
• The communication process begins with an audit of all
potential contacts.
• Effective communication requires knowledge of how
communication works.
15 - 1
The Communication Process
Noise Noise Noise Noise Noise Noise
Sender Noise Noise
Noise Noise Noise Noise
Noise Noise Noise Noise Noise Noise
Noise Noise Noise Noise Noise Noise
Encoding Noise Noise
Feedback
Noise
Noise Noise Noise
Noise Noise Noise Noise Noise Noise
Noise Noise Noise Noise Noise Noise
Message
Noise Noise Noise Noise Noise Noise
Media Noise Noise
Noise Noise Noise Noise
Noise Noise Noise Noise Noise Noise
Response
Decoding Noise Noise
Noise
Noise Noise Noise
Noise Noise Noise Noise Noise Noise
Noise Noise Noise Noise Noise Noise
Receiver
Noise Noise Noise Noise
Noise Noise
Noise Noise Noise Noise Noise Noise
15 - 2
Developing Effective Communication
• Step 1: Identifying the Target Audience
 Affects decisions related to what, how, when, and
where message will be said,
as well as who will say it
 Assess needs, attitudes , preferences of the target
market
 Rasna , McDonalds , Maggi Noodles
• Step 2: Determining Communication
Objectives
 Six buyer readiness stages
15 - 3
Steps in Developing Effective
Communication
Step 1. Identifying the Target Audience
Step 2. Determining the Communication Objectives
Buyer Readiness Stages
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
15 - 4
Steps in Developing Effective
Communication
Step 3. Designing a Message
Appeal , Theme
,Idea or USP
Message Content
Rational Appeals
Emotional Appeals
Love, pride, joy, humor, fear, guilt, shame
Moral Appeals
ESP
Attention
Message Structure
Draw Conclusions
Argument Type
Argument Order
Key decisions are required with respect to three message structure
issues:
-Whether or not to draw a conclusion – Ford in Mustang
-One-sided vs. two-sided argument – “Heinz Ketchup is
slow good” ,”Listerine tastes bad twice a day “
- Order of argument presentation -
Interest
Desire
Message Format
Headline, Copy, Color,
Words, & Sounds,
Body Language
Action
15 - 5
Developing Effective Communication
• Step 4: Choosing Media
 Personal communication channels
Includes face-to-face, phone, mail, and Internet
chat communications
 Word-of-mouth influence is often critical
 Buzz marketing cultivates opinion leaders

 Nonpersonal communication channels

Includes media, atmosphere, and events
15 - 6
Developing Effective Communication
• Step 5: Selecting the Message Source
 Highly credible sources are more persuasive
 A poor spokesperson can tarnish a brand
• Step 6: Collecting Feedback
 Recognition, recall, and behavioral measures
are assessed
 May suggest changes in product/promotion
15 - 7
Setting the Promotional Budget and
Mix
• Setting the Overall Promotion Mix
 Determined by the nature of each
promotion tool and the selected
promotion mix strategy
15 - 8
The Marketing Communications
Mix
Advertising
Any Paid Form of Non personal
Presentation by an Identified
Sponsor.
Personal Selling
Personal Presentations by
a Firm’s Sales Force.
Sales Promotion
Short-term Incentives to
Encourage Sales.
Public Relations
Direct Marketing
Building Good Relations with
Various Publics by Obtaining
Favorable Unpaid Publicity.
Direct Communications
With Individuals to Obtain
an Immediate Response.
15 - 9
Setting the Promotional
Budget and Mix
Promotion Tools
• Advertising
• Personal Selling
• Sales Promotion
• Public Relations
• Direct Marketing
• Reaches large, geographically
dispersed audiences, often with
high frequency
• Low cost per exposure, though
overall costs are high
• Consumers perceive advertised
goods as more legitimate
• Dramatizes company/brand
• Builds brand image; may
stimulate short-term sales
• Impersonal; one-way
communication
15 - 10
Setting the Promotional Budget and
Mix
Promotion Tools
• Advertising
• Personal Selling
• Sales Promotion
• Most effective tool for building
buyers’ preferences,
convictions, and actions
• Personal interaction allows for
feedback and adjustments
• Relationship-oriented
• Buyers are more attentive
• Public Relations
• Sales force represents a longterm commitment
• Direct Marketing
• Most expensive of the
promotional tools
15 - 11
Setting the Promotional Budget and
Mix
Promotion Tools
• Advertising
• Personal Selling
• Sales Promotion
• Public Relations
• Direct Marketing
• May be targeted at the trade
or ultimate consumer
• Makes use of a variety of
formats: premiums, coupons,
contests, etc.
• Attracts attention, offers strong
purchase incentives, dramatizes
offers, boosts sagging sales
• Stimulates quick response
• Short-lived
• Not effective at building longterm brand preferences
15 - 12
Setting the Promotional Budget and
Mix
Promotion Tools
• Advertising
• Highly credible
• Many forms: news stories,
news features, events and
sponsorships, etc.
• Personal Selling
• Reaches many prospects missed
via other forms of promotion
• Sales Promotion
• Dramatizes company or
benefits
• Public Relations
• Direct Marketing
• Often the most underused
element in the promotional
mix
15 - 13
Setting the Promotional Budget and
Mix
Promotion Tools
• Advertising
• Personal Selling
• Sales Promotion
• Public Relations
• Direct Marketing
• Many forms: Telephone
marketing, direct mail,
online marketing, etc.
• Four distinctive
characteristics:




Nonpublic
Immediate
Customized
Interactive
• Well-suited to highly
targeted marketing efforts
15 - 14
Tremor Recruits Teens to Generate
Word-of-Mouth
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
15 - 15
Traditional Approach to Marketing
Communications
Point of
purchase
Special
events
Publicity
Media
Advertising
Public
relations
Direct
marketing
Sales
promotion
Packaging
Direct
response
Interactive
marketing
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
15 - 16
Integrated Marketing
Communications
• The Need for Integrated Marketing Communications
 Conflicting messages from different sources or
promotional approaches can confuse company or
brand images
 The problem is particularly prevalent when
functional specialists handle individual forms of
marketing communications independently
15 - 17
Contemporary IMC Approach
Packaging
Sales
promotion
Point of
purchase
Publicity
Interactive
marketing
Media
Advertising
Direct
marketing
Direct
response
Public
relations
Special
events
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
15 - 18
Integrated Marketing Communications
Company Carefully Integrates and Coordinates Its Many Communication
Channels to Deliver a Clear, Consistent, Compelling Message.
Packaging
Event
Marketing
Advertising
Message
Direct
Marketing
Personal
Selling
Sales
Promotion
Public
Relations
15 - 19
IMC Audience Contact Tools
Broadcast
media
(TV/radio)
Print media
(newspapers,
magazines)
Public
Relations/
publicity
Out-of-home
media
Internet/
interactive
Direct
marketing
Target Audience
Personal
selling
Point-ofpurchase
(displays,
packaging)
Sales
Promotion
Word-ofmouth
Events and
sponsorship
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Product
placements
(TV and movies)
15 - 20
American Express
• 80% of its annual advertising on television advertising
• By 2004 TV accounted for only about a third of its budget
• March 2004 launched a films featuring long time company
spokesperson Jerry Seinfeld and an animated version of superman
exclusive on American express website – benefits of card
membership : 2 million viewers
• Returned on website after second online short was released two
months later
15 - 21
• “your business model needs to adapt and to change.
It is used to be that we bought the time , shipped you
the commercials, had lunch or a glass of wine together
once in a while, you took care of the quality of
programming and we make sure that cheque did not
bounce. We all sat back , checked the ratings,
watched our business grow…..those days are woefully
over.
American express Chief Marketing officer, John Hayes
15 - 22
Case Study – LG
How can a Korean-based electronics company known for low cost home appliances
become a leader in the global electronics industry?
15 - 23
How it was made possible for LG
“Pucker Up New York” Campaign
Encouraged New Yorkers to interact with LG brand by kissing live on the
Time Square billboard.
Advertised the campaign through Radio Spots, Street Marketing,
Concurrent Radio Media tour featuring new LG products and brand
messages
Strategic media placement about world's first 76-inch plasma display
panel
Evening Reception in Times Square for key electronics industry
influencers, city officials and media and Monday before the event
15 - 24
Results for LG Campaign
Radio Media yielded more than 25 hits in major markets and approximately
200 city and industry influencers attended the event including the Deputy
Mayor of New York City
100 media outlets were in attendance including The New York Times,
Forbes, Maxim, New York Magazine etc.
More than 100 stories about LG’s Times Square debut appeared in print,
broadcst, and online outlets.
Generated LG equivalent of over $3.2 million in advertising
15 - 25
Socially Responsible Communications
• Advertising and Sales Promotion
 Avoid false and deceptive advertising

Bait and switch advertising
 Trade promotions can not favor certain
customers over others
 Use advertising to promote socially
responsible programs and actions
15 - 26