global marketing integrated marketing communications

GLOBAL MARKETINGGLOBAL MARKETING

Integrated Marketing Integrated Marketing CommunicationsCommunications

Integrated Marketing Integrated Marketing Communications (IMC)Communications (IMC)

Effective marketing requires an integrated Effective marketing requires an integrated communications plan--relying not just on communications plan--relying not just on one form of communication, but bringing one form of communication, but bringing together a number of different modes in a together a number of different modes in a consistent and complementary way.consistent and complementary way.

Standardization vs. adaptation (localization)Standardization vs. adaptation (localization)

Communication VehiclesCommunication Vehicles

Contrast communication options along two Contrast communication options along two dimensions:dimensions:– Broadcast vs. interactive (1-way message vs. 2-Broadcast vs. interactive (1-way message vs. 2-

way message)way message)– Mass vs. addressable/customizedMass vs. addressable/customized

Characteristics of Characteristics of Communication OptionsCommunication Options

Addressable/customized

Mass

Broadcast1-way message

2-way withTime lag

2-wayinstantaneous

Super BowlAd

Salesperson

Position of Major Position of Major Communication VehiclesCommunication Vehicles

Addressable/Customized

Mass

1-way 2-way

Media

DirectWeb

Salesperson

RadioNewspapers

Television

Magazines

Direct Mail

Catalogs

Infomercials

E-mail

Telemarketing

Role of Promotions in Integrated Role of Promotions in Integrated Marketing CommunicationsMarketing Communications

Promotions are a specific inducement to Promotions are a specific inducement to generate purchase behavior.generate purchase behavior.

Consumer promotionsConsumer promotions Trade promotionsTrade promotions

Consumer PromotionsConsumer Promotions

Free samplesFree samples Price-oriented programsPrice-oriented programs

Cents-off coupons Price pacs Cents-off coupons Price pacs

Mail-in refundsMail-in refunds Bonus pacs Bonus pacs

RebatesRebates PremiumsPremiums Tie-insTie-ins Continuity programsContinuity programs Contest/sweepstakesContest/sweepstakes

Trade PromotionsTrade Promotions

Slotting allowancesSlotting allowances Co-op advertisingCo-op advertising Floor planningFloor planning Temporary price cutsTemporary price cuts Volume discountsVolume discounts ContestsContests

Rounding out IMC:Rounding out IMC:

Event Marketing SponsorshipsEvent Marketing Sponsorships

Publicity and Public RelationsPublicity and Public Relations

Formulating the IMC ProgramFormulating the IMC Program

6 M’s Model for Communication Planning6 M’s Model for Communication Planning

1. Market

2. Mission

3. Message

4. Media

5. Money

6. Measurement

1. Market1. Market

Analyze the consumer situation in terms of Analyze the consumer situation in terms of stages in the purchase and consumption stages in the purchase and consumption processprocess

Response hierarchy modelsResponse hierarchy models– Cognitive stagesCognitive stages– Affective stagesAffective stages– Behavioral stagesBehavioral stages

Hierarchy Model: AIDAHierarchy Model: AIDA

Stages AIDA Model

Cognitive Attention

Affective Interest

Desire

Behavioral Action

Hierarchy-of-Effects ModelHierarchy-of-Effects Model

Stages Hierarchy-of-Effects Model

Cognitive AwarenessKnowledge

Affective Liking

PreferenceConviction

Behavioral Purchase

Innovation-Adoption ModelInnovation-Adoption Model

Stages Innovation-AdoptionModel

Cognitive Awareness

Affective InterestEvaluation

Behavioral Trial

Adoption

Communication ModelCommunication Model

Stages CommunicationModel

Cognitive ExposureReception

Cognitive Response

Affective AttitudeIntention

Behavioral Behavior

Customer Response IndexCustomer Response Index

The combination of effects in the customer The combination of effects in the customer response hierarchy.response hierarchy.

Tool for adjusting communications or other Tool for adjusting communications or other marketing tactics.marketing tactics.

Customer Response IndexCustomer Response Index

Unaware (37%)

Aware (63%)

Don’t comprehend (46%)

Comprehend (54%)

Not interested (23%)

Interested(77%)

No intentions (32%)

Intentions(68%)

No Action(10%)

Action (90%)

2. Mission2. Mission

Communication objectives, related to Communication objectives, related to customer responsecustomer response

Build Awareness

Message Reinforcement

Stimulate Action

3. Message3. Message

Decisions related to message content, Decisions related to message content, structure, format, and sourcestructure, format, and source– What kind of an appeal?What kind of an appeal?– One-sided or two-sided message?One-sided or two-sided message?– PeripheralsPeripherals– SpokespersonSpokesperson

4. Media4. Media

Decisions related to media communication Decisions related to media communication channel/advertising agencychannel/advertising agency

Decisions related to media exposureDecisions related to media exposure– Target market reachTarget market reach– FrequencyFrequency– Advertising effectivenessAdvertising effectiveness

» GRPsGRPs

» CPMsCPMs

Media Exposure (continued)Media Exposure (continued)

Decisions related to message reinforcementDecisions related to message reinforcement– PulsingPulsing– Heavy-up message frequencyHeavy-up message frequency

Decisions related to use of consumer Decisions related to use of consumer promotionspromotions

5. Money5. Money

The optimal marketing communications The optimal marketing communications budget is typically a function of:budget is typically a function of:– The size and heterogeneity of the target The size and heterogeneity of the target

audienceaudience– Nature of the messageNature of the message– Receptivity of the audienceReceptivity of the audience– Amount of clutterAmount of clutter

Money (continued)Money (continued)

Some firms use:Some firms use:– % of expected or previous year’s sales% of expected or previous year’s sales– Competitively based benchmarkCompetitively based benchmark

Spending levels vary greatly across Spending levels vary greatly across industries and even across firms within the industries and even across firms within the same categorysame category

6. Measurement6. Measurement

Plan a mechanism for evaluating the effects Plan a mechanism for evaluating the effects of communications efforts.of communications efforts.

Critical input to future spending levels, Critical input to future spending levels, allocation of the budget across media, and allocation of the budget across media, and specific communication messages.specific communication messages.

Global ConsiderationsGlobal Considerations

Cultural values/traditionsCultural values/traditions

Social and political contextsSocial and political contexts

Economic environmentsEconomic environments

Laws/regulationsLaws/regulations