Watson: Advertising & Promotions Management

Chapter1: Integrated Marketing Communications

Communication and IMS Programs

Communication: transmitting, receiving and processing information

o The process by which we exchange or share meanings through a common set of
symbols
o All types of promotion are some form of communication

Source/
Sender

The Communication Process

o Source/Sender the creator who is attempting to deliver the message
o Encoding the source deciding what to say and translating it into words or
symbols that convey meaning
o Message Channel/Transmission Device the carrier of the message
o Decoding the receiver translating the message by their senses/experiences
o Receiver the potential customer, the intended audience
o Feedback the sender receiving the receivers response to a message

Encoding

Transmission Device/Message Channel

Decoding

Receiver

Noise
FEEDBACK

2 hindrances to effective communication

o Noise anything that distracts
o Different frames of reference symbols, translations, how we interpret

Integrated Marketing Communications (IMC)

Integrated Marketing Communications (IMC) the coordination and integration of all

marketing communication tools, avenues and sources within a company into a seamless
program that maximizes the impact on customers and other end users at a minimal cost.
This affects all of the firms business-to-business, marketing channels, customer-focused
and internally orientated communications

Coordinating all elements of your Marketing Mix and Promotional Mix

o Marketing Mix: Price, Product, Place and Promotion
The controllable variables designed to effectively target a market
o Promotional Mix: Sales Promotion, Advertising, Personal Selling and Public
Relations

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Making Sure everyone/everything is saying the same thing to the same targets

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An IMC Plan The 6 Steps of a Marketing Plan

Step 1: Situational Analysis

o Examine factors from the organizations internal (company based) and external
(market based) environments
o SWOT strengths, weaknesses, opportunities and threats

Step 2: Define Primary Marketing Objectives

o Whats the goal?
Profits? Sales? Market Share? Brand Recognition?
Goals should be specific and time oriented
o What is the desired customer reaction?
Recognition? Purchase? Contact?

Step 3: Set Marketing Budget

o Consistent with firms overall Strategic Plan
o Consistent with firm financial capabilities
o Dictates which marketing strategies can be used and to what extent

Step 4: Finalize Marketing Strategies

o To what extent are you utilizing all your elements of the Promotional Mix?
o Differentiation strategies and competitive advantage
o Positioning
o Branding Strategies

Step 5: Marketing Tactics

o The day-by-day strategies
o Timelines
o The details needed to achieve the Market Strategies

Step 6: Evaluation of Performance

o Refer to Step 2
o Were the goals achieved? Do changes need to be made?

IMC Components

Level 1: IMC Foundation

o Corporate and Brand Image
A firms Strengths and Weaknesses
The message they are trying to send/sell
o Consumer buying behavior
Consumer decision making process
Business consumers behaviors
Influencing factors
o Promotion Opportunity Analysis
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ID target markets
Market research
Determining market numbers and needs
Level 2: Advertising Tools
o Advertising Management
The major function of advertising
Advertising direction
In-house or agency selection
o Advertising Theories
Creative components of advertising
Appeals
o Advertising Design and Message Framework
Design strategies
Execution framework choices
Source selections

Level 3: IMC Media Tools

o Traditional media choices
Radio, TV, print, direct mail, signs
o E-Active marketing
E-commerce programs
Blogs, social networks, etc.
o Alternative channels choices
Buzz marketing
Guerilla marketing
Product placement
Brand community

Level 4: Promotion Tools

o Database/direct-response marketing
o Sales promotion
o Public relations and sponsorship

Level 5: Integration Tools

o Regulations and Ethics
o Evaluation
Does the target consumer understand the message we are sending?
Are we achieving our primary goals?
Are changes required?

The Value of IMC Plans

Consumers, while easier to reach, are becoming harder to influence

o Better at screening our promotions
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o Busy lives lead to little time for distractions

o Busy lives lead to technology to streamline/manage

Development of information technology

o Up to date research
o Direct, real-time info

Changes in channel power

o Retailers are shifting power in the channel of distribution
o Consumers can find alternative choices
Online retailers
Online auctions

Increases in Competition
o Know you customers
o Strong competitive advantage
o Strong network of communication
o Increases in competition can lead to brand parity for the consumer

Brand parity so much to choose from

o Brand parity occurs when a consumer views most products a the same
o Leads to price comparison only
o Loss of competitive advantage

Integration of Information contact points

o Consumers have many areas to locate information
o Firms need strong/many contact points
Contact points place where a consumer can interact or acquire
information from a company
May be direct/indirect, planned/unplanned

Decline in effectiveness of TV advertising

o Only 16% of viewers report actually watching commercials
o Technological advancements make it harder to reach TV consumers

International Implications: Standardization vs. Adaptation

Standardization - Production of uniform products that can be sold the same way all over
the world
o Same products, same message, same methods
o World markets are becoming more alike
o Standardized products can be produced/sold the same way worldwide
o Helps achieve greater economies of scale

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Adaptation when products and marketing messages are designed and adapted to
individual countries
o Tailored for specifics
o Less economies of scales
o May be necessary to attract the new market
o There are various degrees of adaptation

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