SMM 7

• Integrated marketing communications (IMC)


  A concept of marketing communications planning that recognises the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines - for example, general advertising, direct response, sales promotion, and public relations – and combines these disciplines to provide clarity, consistency, and maximum communications impact
• The "4A's"


  The American Association of Advertising Agencies' definition of IMC focuses on the process of using all forms of promotion to achieve maximum communication impact
• Broader perspective of IMC


  The IMC approach seeks to have all of a company's marketing and promotional activities project a consistent, unified image to the marketplace. It calls for a centralised messaging function so that everything a company says and does communicates a common theme and positioning
• Elements of the promotional mix


  • Advertising
  • Sales promotions
  • Trade shows
  • Personal selling
  • Direct selling
  • Public relations
• Objective of promotional mix


  Successful sale of a product or service
• Availability of appropriate communication channels


  Can determine entry decisions
• Communication tools: the promotional mix

  • Advertising
  • Sales promotion
  • Direct marketing
  • Publicity and PR
  • Sponsorship
  • Personal selling
• Advertising


  Non-personal communication by an identified sponsor, transmitted to target audience via (mass) media
• Sales promotion


  Short-term incentives to encourage sales
• Direct marketing


  Creating and developing direct relationships with individual customers
• Publicity and PR


  Making "news"; building goodwill, understanding between organisations & publics (stakeholders)
• Sponsorship


  Supporting event, person, etc, to enhance sponsor's awareness, image, etc.
• Personal selling


  Informing, persuading potential customers through personal communication
• The Billiard Ball Principle


  Advertising -> Media -> Publics -> Customers -> Wholesalers -> Retailers -> Distributors -> Awareness -> Competition -> Shareholders -> Employees -> Attitude -> Interest -> Requests -> Sales -> Profits
• Integrated Marketing Communications (IMC)


  • Promotion
  • Personal Selling
  • Sales Promotion
  • Public Relations
  • Direct Promotion
  • Advertising
• Push Policy


  Promoting a product only to the next institution down the marketing channel
• Pull Policy


  Promoting a product directly to consumers to develop stronger consumer demand that pulls products through the marketing channel
• Sales Promotion


  Marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. Short-term efforts directed to the consumer or retailer to achieve specific objectives
• Public Relations (PR)


  Creating good relationships with the popular press and other media to help companies communicate messages to customers, the general public, and governmental regulators
• Advertising Process


  • Perform marketing research
  • Specify the goals of the communication
  • Develop the most effective message(s) for the market segments selected
  • Select effective media
  • Compose and secure a budget
  • Execute the campaign
  • Evaluate the campaign relative to the goals specified
• Shannon and Weaver Model of Communication

  Encoding -> Message -> Channel -> Decoding -> Receiver
• The 5 W's of Communication or Lasswell Model of Communication


  Who? -> Says What? -> In Which Channel? -> To Whom? -> With What Effect?
• Decoding process


  The conversion of signs or symbols into concepts and ideas
• Noise


  Anything which reduces a communication's clarity and accuracy (news in the country and abroad, competitors...)
• Feedback


  The receiver's response to a message
• Channel capacity


  The limit on the volume of information a communication channel can handle effectively
• Demographic environment as potential barriers


  • Size of population
  • Number of households
  • Household size
  • Age distribution
  • Occupation distribution
  • Education levels
  • Employment rate
  • Income levels
• Other barriers


  • Cultural environment: Language, Lifestyles, Values, Norms and customs, Ethics and moral standards, Taboos
• Legal constraints


  • Comparative advertising
  • Advertising of specific products
  • Control of advertising on television
  • Accessibility to broadcast media
  • Limitations on length and number of commercials
  • Internet services
  • Special taxes that apply to advertising
• Linguistic limitations


  Language is one of the major barriers to effective communication through advertising. Translation challenges, low literacy in many countries, multiple languages within a country. In-country testing with the target consumer group avoids problems caused by linguistic differences
• Cultural diversity


  Knowledge of cultural diversity must encompass the total advertising project. Existing perceptions based on tradition and heritages are often hard to overcome. Subcultures, changing traditions
• Advertising subject to regulation

  • Products that may be advertised
  • Content or creative approach used
  • Media advertisers are permitted to use
  • The amount of advertising one may do
  • Use of foreign languages in ads
  • Use of materials from outside the country
  • Use of local vs. international ad agencies
  • Specific taxes levied on advertising