Chapter 16 Integrated Marketing Communications

Push and Pull Channel Policies

- Push policy: Promoting a product only to the next institution down the marketing channel - Pull policy: Promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel Organizations may use both push and pull policies at the same time.

Sales Promotion

A activity or material that acts as a direct inducement, offering adding value or incentive to resellers, salespeople or customers. Free samples Games Rebates Sweepstakes Contests Premiums Coupons

Reduce Sales Fluctuations

A business cannot operate at peak efficiency when sales fluctuate rapidly Holidays Seasonal products Promotional activities are often designed to stimulate sales during slumps

Retain Loyal Customers

A major goal of marketing is to maintain long term customer relationships. Keeping current customers is less costly than acquiring new customers. Retention techniques include Frequent-user programs Special offers for existing customers Online communications Customer-only events Sweepstakes

Advertising

A paid non personal communication about an organization and tis products transmitted to a target audience through mass media. Advertising is changing as mass media consumption habits are changing. The internet and digital media aim at smaller, more targeted audiences. Advertising is flexible and can reach large or small audiences

Create Awareness

Aware is crucial to initiating the product adoption process for new products. For existing products, promotional efforts create increased awareness of brands, product features, image-relate issues, or operational characteristics.

Kinesic:

Body language; communicating through movement of the head eyes arms hands legs or toso

proximic

Communicating by varying the physical distance between two parties in face to face interactions

Promotion

Communication that builds and maintains favorable relationships by informing and persuading one or more audience to view an organization positively and to accept its products. Promotions goal is to stimulate product demand and build customer relationships. Most organizations expend a large-amount of resources on promotion.

Tactile

Communication through touching

Integrated Marketing Communications

Coordination of promotion and other marketing efforts to ensure maximum informational and persuasive impact on customers. IMC is increasingly accepted. Coordinate/manage promotional efforts. Synchronization of promotional elements Use more precisely targeted promotional tools Consistent message to customers Use of database marketing Protect consumer privacy.

Objectives of Promotion

Create awareness Stimulate demand Encourage product trial Identify prospects Retain loyal customers Facilitate reseller support Combat competitive promotional efforts Reduce sales fluctuations

Important points to remember

Encoding is the process of putting ones thoughts (meaning) into signs (symbols). Noise reduces the accuracy and clarity of communication. The primary objective of a direct-response information form found in a magazine advertisement that allows customers to send for more information is to identify prospects. The cost of retaining existing customers is lower than the cost of acquiring new customers. Marketers of highly seasonal products tend to have more irregular use of sales promotion

Encourage Product trial

If customers stall in the evaluation stage, marketers can use methods to encourage product trial in order to move them to adoption. Trial techniques Free samples Coupons Test drives Limited free-use offers Contests Games

Types of Interpersonal Communication

Kinesic, Proxemic, Tactile

Personal Selling

Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation Advantages. A more specific form of advertising Has a greater impact on consumers Provides immediate feedback. Disadvantages. Expensive Labor intensive Time consuming

Stimulate Demand

Primary demand: Demand for a product category rather than a specific brand. eg Milk, Juice, fruit Pioneer promotion: Promotion that informs consumers about a new product. A way to stimulate primary demand during the introductory stage of the product life cycle. Selective demand: Demand for a specific brand. eg. Dari gold milk, Florida orange Juice etc.

Combat Competitive Promotional Efforts

Promotional activities may aim to offset or lessen the effect of a competitors promotional and marketing programs This type of promotional activity does not necessarily increase sales or market share A combative promotional objective is often used by firms in highly competitive consumer markets. eg. Insurance, cable TV, Internet, Mobile phone.

Public Relations Tools

Publicity Annual reports Brochures Event sponsorships Sponsorship of socially responsible programs Press releases/Conferences/Feature articles

Identify Prospects

Some promotional efforts aim to locate and identify customers who are interested in the firms products and are most likely to buy. Techniques include Direct-response information form. Toll-fee number. The organization should follow up with prospects.

The communication process

Source Coded message communication channel decoded message Receiver or audience

Facilitate Reseller Support

Strong relationships with resellers are important to an organizations ability to maintain a sustainable competitive advantage. Various promotional methods help achieve this goal. Resellers view promotion as a form of support. Share promotional expense Special offers/buying allowances.

Public Relations

a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders Publicity is a non-personal communication in a news story for about an organization, its products or both. is transmitted through a mass medium at no charge. Public relations should be viewed as a n ongoing program during crises and good times.

The four elements of the promotion mix

personal selling, public relations, sales promotion, advertising

The importance of Word of Mouth communication

word of mouth communication: Personal, informal exchanges of communication that customers share with one another about products, brands, and companies. Most customers are likely to be influenced by friends and family members when making purchases. effective WOM communication is becoming increasingly important Is most effective for new to market and expensive products. Buzz Marketing: An attempt to incite publicity and public excitement surrounding a product through a creative event. Offering free cars at a TV show Viral Marketing: A strategy to get consumers to share a marketer's message, often through email or online video in a way that spreads dramatically and quickly.