IMC Flashcards
Marketing communications
What message will we create
How will we create it
2 major tool classes available
Mass communications eg advertising
Direct communications eg mobile marketing
Promotional mix
Advertising Personal selling Direct marketing Digital marketing Publicity Sponsorship Personal selling
Advertising
Create awareness
Reach large market fast
Repetition-remember
Legitimize sales effort
Impersonal
Can’t close sale
Sales promotion
Incentives
Short term effects
Overuse long term-cheapen brand image
Publicity
Credibility (3rd party message)
Free
Little control -message may be ignored/distorted
Sponsorship
Useful for brand building and publicity
Op to entertain business partners
Demonstrate good will
Popular
Direct marketing
Targets individual customers Personalized Easy to measure effectiveness Build relationships Less visible to competitors
Expensive
Low response rate
Constant contact is annoying
Digital marketing
Global reach at low cost
Easy measure effectiveness
Convenient
Minor techniques
Exhibitions
Events
Product placement
Ambient/guerrilla/buzz marketing
5 characteristics effecting choice
Cost and available resources Market size and concentration Customer info needs Product characteristics Push v pull strategies
Framework for implementation on IMC
Marketing strategy Positioning strategy Communications decisions Communications strategy Evaluate
Communications decisions
Identify target audience Set communications objectives Create message Select promotional mix Set promotional budget
Developing advertising strategy
Analysis of target audience
Define advertising objectives
Set budget
% of sales
Oldest, weakest
% of revenue goes to advertising
If revenue drops so does advertising
Competitive party
Look at competitors spending and compare
Affordability
What a business can afford to spend
Objective and task
Most logical
set objectives
Why is sales promotion popular
Increased impulse purchasing Rising cost of advertising Shortening time horizons Competitor activities Measurability
Define sales promotions
Incentives for action Influence later stages of buying process Direct influence on customer behavior “Closes’ deal Stimulates action
3 SP categories
Consumer promotions
Trade promotions
Sales force promotions
Consumer promotions
Special offers, competition
Trade promotions
Free merchandise
Special terms
Sales force promotions
Competition for salespeople - incentive and motivation scheme
Eg beat sales by10% and get bonus
SPS coupon
Encourages trial of new product and repurchase
Premium SPS
Something extra for same spend
Moves more stock
Money off SPS
Customers only buy due to special offer
Bonus packs SPS
Similar to premiums but built into pack
SPS temporary price discounts
Last for a specific time
Sampling
Change customer behavior and attitude towards good
Prize promotions
Self liquidation-charge for entry
Eg Enter competition to win prize
Loyalty cards
Longer term
Customer can be targeted from info with suitable purchases
Sales promotion impact on sales
Positive short term
Long term-double edged sword.
Double edged sword
Sales boost short term but drop longer. Customers are stocked up
3 vip publicity characteristics
Credible message
No direct media costs
No control over publication
Sponsorship 5 objectives
Gain publicity
Create entertainment ops eg frills(corporate box)
Foster favorable brand and company associations
Improve community relations
Create promo ops
Why sponsorship
Generate brand awareness
Move target market toward positive brand perception and awareness
Stakeholder interaction
Sponsorship advantages
Cost effective
All sectors can be reached
Offers creative ops
Lends to integrated communications
Sponsorship disadvantages
Misunderstood
Sports clubs etc can alienate brand from competitors
Uncontrollable variables (eg actions of sponsored)
Ambush marketing frustration
Developments in sponsorship
Ambush marketing
Piggybacking
Ambush marketing
attempt to associate with even without paying owner a fee
Piggybacking
One company paying money to be a sponsor and another company’s involvement
Ambient/guerrillero advertising
Deliver message in unexpected means to get attention
