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Integrated Marketing Communications
(IMC)
Chapter 16
Context
Overall
Marketing
Objectives
Marketing Mix
• Product
• Distribution
• Promotion
• Price
Target Market
Promotional Mix
•Advertising
•Public Relations
•Personal Selling
•Sales Promotion
Promotion Plan
Coordinated; Competitive Advantage
Promotion & Marketing
Communications
• Promotion: function of informing,
persuading, and influencing the consumer’s
purchase decision
Goals of Promotion
Inform: this is what we offer (especially new, car financing)
Persuade: we are better (Kia & Honda) (similar to competition)
Remind: have them already (well established with loyal base; JC
Penney)
Integrated Marketing
Communications
Marketing Communications: transmission from a sender
to a receiver of a message dealing with the buyer-seller
relationship
Integrated marketing communications (IMC):
Coordination of all promotional activities to produce a
unified customer-focused promotional message
Success of any IMC program depends critically on
identifying the members of an audience and understanding
what they want
Precondition for promotion: communication
Source
Encoding
Process
Medium
of
Transmission
Decoding
Process
Receiver
or
Audience
Feedback
NOISE
NOISE
AIDA concept
Marketing Communication Process
Need common frame of reference b/w sender and receiver to exchange
meanings (Language, impairment)
5 Step Process:
1. Source/Sender
Ad agency
Intends to share
meaning
2. Encoding: translating meaning of message into some form (Got Milk?)
Marketing Communication Process
3. Message Channel / Medium:
Means of reaching target (print ad, T.V., salesperson)
Be appropriate (print vs. T.V.; Newsweek vs. Playboy)
4. Decoding the Message
Target makes sense of message
Noise: anything decreases clarity (e.g., Nova; KFC in Japan)
Message always changes (teaching)
5. Receiver: decoder of message (different markets see same message differently). What
examples can you think of?
Feedback is response: circular
Difficult to measure, so use feedback channels (research, sales)
AIDA: Attention?
Attention-> Interest-> Desire ->ACTION!!!
It gets harder as you go….
Attention (e.g., sign-flippers, clowns)
Headline (New York Post; only part read)
Visuals (sex)
Layout
Colors
Size (Times Square)
Electronic: sound; music; animation
Gross images (this nasty eyeball gets your attention!)
AIDA: Interest?
Keep Interest – difficult in “our ADD world”
Tactics:
Drama/story (Dos Equiss )
Cartoons (M&Ms)
Dialog (it’s a Diet Coke Thing;
Wusssssup?)
Doritos Commercial:
What tactics do they attempt
to hold your interest?
http://www.youtube.com/watch?v=v5lBdLEi3ns
AIDA: Desire?
Arouse desire
Tactics:
USP: Unique selling proposition (Gillette razor; clear deodorant, clear soda)
Provide a rationale (“I’m worth it”)
Address “you” with their needs/problems
(“Do you want to make more $?”;
“Have you been injured in an accident?”)
Federal Express: When it absolutely,
positively has to be there overnight.
AIDA: Action?
Action – if consumers’ desire, hope action is natural (and realistic for
them):
Ask consumers to do something (log on to…; call..)
Imperative: “Drink Coke,” “Fly the Friendly Skies”
Facilitate: 1-800 or web
Direct competitive: supplies are limited!!
Do you view ads after purchasing that product?: Why?
Promotional Mix
UNPAID
NONPERSONAL
PERSONAL
Publicity
PAID
Advertising,
Sales
Promotion,
Direct
Marketing
Word of Mouth, Direct Mail;
Word of Mouse Personal Selling
PromotionalTool: Advertising
Promotion Methods a.k.a. The Promotion Mix
Advertising: paid, impersonal promotions by identified
sponsor(s)
Traditional big markets, but
adaptable to smaller
Low cost/contact (LA Times:
2 cents/per reader)
Difficult to measure impact
Not adaptable, inflexible
Promotional Tool: Publicity and The
Media
Publicity; unpaid, impersonal promotions (talk show, movie
premiere, charity, cars)
Do not pay media costs (magazine article)
Perceived credibility; negativity
Publicity has far more value than advertising, but you
must give reporters a reason to write about you.
Promotional Tool: Sales Promos
Sales promotion (coupons, POP, samples, tradeshow)
Added value or incentive in regard to a particular product
May complement personal and mass selling (bonus)
Targets
Final consumers: coupons, freq. shopper
Middleman: gifts, price breaks
Company sales force: bonuses, training
Promotional Tool: WOM/eWOM
Word of mouth: “WOM is the most important marketing
element that exists” Gordon Weaver, Paramount Pictures. Do
you agree?
Unpaid, personal promotions (after ads – PLC)
Very high credibility (friends, business acquaintances, employees)
Try for opinion leaders (may pay to stimulate; teens; movies; fashions)
Usually negative (respond to complaints)
Buzz; viral (snakes on a plane)
Promotional Tool: Personal Selling
Personal selling; paid, personal promotions; direct spoken
communication
Adaptable to each target
Immediate feedback
Very expensive ($200/contact, $500 on a cold market)
More spending on p.s. than ads
Factors Affecting Promotional Mix
Nature of Product
Stage in the PLC (When should you promote?)
Target Market Characteristics
Type of Buying Decision (Impulse?)
Available Funds (Do you want a Bentley?)
Promotion Mix
Over the PLC
Introduction
Industry
Sales
Maturity
Decline
Advertising
PR; Selling
Advertising
PR; Selling;
Promotions
Dollars
Growth
Publicity
Advertising
0
Time
Advertising
Promotions;
Selling
Summary
Marketing Mix/Toolkit
Promotion Objectives
Marketing Communication Process
AIDA
Factors Impacting Promotional Mix
IMC
Any questions??