ch.14 Flashcards
What is Integrated marketing communications (IMC)
Represents the promotion dimension of the four Ps; encompasses a variety of communication disciplines—general advertising, personal selling, sales promotion, public relations, direct marketing, and digital media—in combination to provide clarity, consistency, and maximum communicative impact.
What are the communication methods used in IMC
General advertising Personal selling Sales promotion Public relations Direct marketing Digital media
What is the communication process
The message originates from the sender, then goes through the transmitter where the message is encoded. Then it goes off to the communication channel to be distributed to the receiver. After this process, there might be noise or a feedback loop (beneficial)
Who is the sender
The firm from which an IMC message originates; the sender must be clearly identified to the intended audience.
Who is the transmitter
An agent or intermediary with which the sender works to develop the marketing communications; for example, a firm’s creative department or an advertising agency.
What is encoding
The process of converting the sender’s ideas into a message, which could be verbal, visual, or both.
What is a communication channel
The medium—print, broadcast, the Internet—that carries the message.
Who is the receiver
The person who reads, hears, or sees and processes the information contained in the message or advertisement.
What is decoding
The process by which the receiver interprets the sender’s message.
What is noise
Any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium; a problem for all communication channels.
What is a feedback loop
Allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly.
Explain how receivers decode the message differently
Different people may have negative or positive feelings related to the ad.
Senders adjust messages according to the medium & receivers’ traits ( costumers, general public, shareholders)
What are the steps in planning an IMC Campaign
- Identifying target audience
- set objectives
- Determine a budget
- Convey message
- Evaluate and select media
- Create communication
- Asses impact
Explain Step 1 in IMC campaign: Identify target audience
Research is conducted
Information gathered sets tone of advertising & media selected
*The intended audience could be different from current customers
Explain Step 2 in IMC campaign: Set objectives
push and pull strategy
aim to achieve certain objectives: to inform, persuade, and remind customers
- can be short term or long-term
This can be accomplished via the pull strategy( goal is to get consumers to pull the product into the supply chain demanding that retailers carry it) or push strategy (designed to increase demand by focusing on wholesalers, distributors or salespeople who push the products to consumers via distribution channels)
Explain step 3: determine budget
- Role that advertising plays in their attempt to meet their overall promotional objectives
- Expenditures vary over the course of the Product Life Cycle
- Nature of the market and the product influence the size of the budget
________ of the ______ and the product influence the size of the budget
Nature of the market
What are the 4 budgeting methods
- objective and task
- competitive parity
- percentage of sales
- affordable budgeting
Explain the budgeting method: objective and task
determines the cost required to undertake specific tasks to accomplish communication objectives; process entails setting objectives, choosing media, and determining costs.
Add of everything we’ll spend for the entire year, we’ll have the total budget. . Most difficult method to use if you are not a mature company
Explain the budgeting method and state limitations: competitive parity method
method of determining a communications budget in which the firm’s share of the communication expenses is in line with its market share.
Limitations: Prevents firms from exploiting the unique opportunities or problems they confront in a market.
If all competitors use this method to set communication budgets, their market shares will stay approximately the same over time.
Explain the budgeting method and state limitations: percentage of sales
A method of determining a communications budget that is based on a fixed percentage of forecasted sales (more simple)
Limitations:
- Assumes the percentage used in the past, or by competitors, is still appropriate for the firm.
- Does not take into account new plans (e.g., to introduce a new line of products in the current year).
Explain the budgeting method and state limitations: affordable budgeting
A method of determining a communications budget based on what is left over after other operating costs have been covered. The difference between the forecast sales, minus expenses plus desired profit is applied to the communication budget
Limitations: Assumes communication expenses do not stimulate sales and profit.
- small budget
