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Chapter 1-5, 12

Management and Organizational Studies 3322F/G Chapter Notes - Chapter 1-5, 12: Brand, Oligopoly, Detergent


Department
Management and Organizational Studies
Course Code
MOS 3322F/G
Professor
John White
Chapter
1-5, 12

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INTEGRATED MARKETING COMMUNICATIONS
CHAPTER 1: INTEGRATED MARKETING COMMUNICATIONS: AN OVERVIEW
Integrated marketing communications: the coordination of all marketing communications in a unified program that maximizes the impact on the
intended target audience
Challenge for companies to successfully combine various communication disciplines into an effective marketing communications strategy and
plan
Overall goal of communications is to deliver same message trough a variety of media in order to have a synergistic impact on the target
Embraces: media advertising (focus on message strategies and media strategies ina mass media environment), direct response
communications (communications that encourage immediate action), digital communications, sales promotion (both consumer and trade
promotions), public relations, experiential marketing an personal selling
Advertising: a paid-for media-delivered message by an identified sponsor designed to stimulate a positive response from a target audience
Good advertising will influence the behaviour of that audience
Product advertising: advertising that provides info about a branded product to help build its image in the minds of consumer
Promotional advertising: advertising that communicates a specific
Direct response communications: the delivery of a message to a target audience of one; the message can be distributed by direct mail, direct
response tv or telemarketing
Direct response tv, telemarketing and mobile communications is growing a lot faster than traditional forms of advertising
Digital (interactive) communications: the placement of an ad message on a website or an ad delivered by email or through mobile communications
devices
Investment in online communications is growing at a faster pace than any other form of advertising
Customer relationship management (CRM): a process that enables an organization to develop an ongoing relationship with valued customers;
the organization captures and uses info about its customers to its advantage in developing the relationship
Sales promotion: an activity that provides incentives to bring about immediate response from customers, distributors and an organization’s sales
force
Such as coupons, free samples, contests
Consumer promotion strategies should be aligned with consumer advertising programs (to pull product through the channel of distribution)
Trade promotions should be aligned with personal selling programs (to push the product through the channel of distribution)
Public relations: a form of communications designed to gain public understanding and acceptance
Influences opinions and attitudes of interest groups about an organization
Placing messages in the media that require no payment and can generate free exposure
Companies need to deal with the media and issue effective communication when a problem arises
Company-sourced social media communications are now an effective public relations strategy
Experiential marketing: a form of marketing that creates an emotional connection with the consumer in personally relevant and memorable ways
Event marketing: the process, planned by sponsoring organization, of integrating a variety of communications elements behind a single event
theme
oInvolves planning, marketing, organizing an event whether it for a brand/company
Sponsorship: the act of financially supporting an event in return for certain advertising rights and privileges
Marketers are attracted to events because they help reach their target market and improves brand awareness when associated with the right
event
oPeople are generally more receptive to brand messages and engage with the experience
Personal selling: face-to-face communication involving the presentation of features and benefits of a product or service to a buyer; the objective is to
make a sale
Job of sales rep is to secure distribution of the product in a timely manner
The product in the store must match with the media advertising or else the money will be wasted
Unified messages present a stronger impact on the audience
Factors encouraging integrated marketing communications
Media consumption trends and the shift to digital media

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oCanadian consumers are spending more time on the internet so companies are placing ads in digital formats too
oGrabbing audience’s attention is hard for those who create the message (creative planners) and those who plan the delivery of it
(media planners)
Social Media Penetration and Popularity
oReach of social networking and blogging venues is growing at twice the rate of other larger drivers of Internet such as portals, email
and search
oMarketers are unsure about the benefit of investing in social media and how it’ll effectively generate revenue and build the business
oCompanies are using a “one size fits all” approach; everyone receives the same content in the same format via Facebook and Twitter
oTech savy generation 18 to 34 is forcing marketers to come up with social media campaigns that strategically integrate with other
forms of communication
Mobile Communications: the next big thing
oMobile represents only 7.5% of typical individual’s media time but growing t faster rate than other medium
oYounger consumers spend more time with their phones than older consumers; if target market is under 35, companies will need to
give mobile communication some consideration
oMobiles will become a more prominent component of IMC; good for companies moving in this direction because they have personal
link to consumers anytime
Database management techniques and customer relationship marketing
oDatabase management system: a system that collects information about customers for analysis by managers to facilitate sound
business decisions
oCompanies that embrace database management can predict how likely a customer is to buy and develop a message precisely
designed to meet their needs
oUltimate goal is aim at smallest segment- the individual
oCRM programs calls for marketing communication programs that are designed to approach customer groups and individuals when
applicable
oTypically traditional methods are used to reach new customers where as newer marketing techniques are used to retain customer
relationships
The Demand for Efficiency and accountability
oCustomer responses can be tracked electronically without cost when using digital communications
oManagers are being held more accountable for producing tangible results with their marketing communication investments
Input for Marketing Communications Planning: consumer behaviour essentials
Consumer behaviour: the combined acts carried out by individuals choosing and using goods and services, including the decision-making
processes that determine these acts
Needs and Motives
oNeed: the perception of the absence of something useful
oMotive: a condition that prompts an individual to take action to satisfy a need
oConsumers are motivated by friends/family/social media
oMaslow’s hierarchy of needs and theory of motivation is based on two assumptions: when lower needs are satisfied, person moves up
to a higher-level need and satisfied needs don’t motivate; behaviour is influenced by needs yet to be satisfied
Physiological need -> safety needs -> social needs -> esteem needs -> self actualization
Personality and self-concept
oPersonality: a person’s distinguishing psychological characteristics that lead to relatively consistent and enduring responses to the
environment in which that person lives
Influenced by self-perceptions which in turn are influenced by family, culture and reference groups
oSelf-concept theory
Real self: an objective evaluation of one’s self. You as you really are
Self-image: how you sell yourself. It may not be your real self, but a role you play
Looking glass self: how you think others see. This can be quite different from how they actually see you.
Ideal self: how you would like to be. It is what you aspire to
oReal and self-image are less significant; looking-glass self and ideal self are more dynamic

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oMany communications campaign focus on looking-glass self and ideal self
Attitudes and perceptions
oAttitudes: an individual’s feelings, favourable or unfavourable, toward an idea or object; formed by what they hear/see/read about a
product
oOrganizations present their product in accordance to attitudes held strongly by target audience
oPerception: the manner in which individuals receive and interpret messages
oCustomers accept messages that are in line with their needs, personality, self-concept and attitudes
Selective exposure: our eyes and minds notice only information that interests us
Selective perception: we screen out messages that conflict with our attitudes
Selective retention: we remember only what we want to remember
Reference Groups: a group of people who share common interests that influence that attitudes and behaviour of its members
oQuite strong among younger people; too much advertising can cause youth to turn away
oMessages work when they’re genuine and has better chance if they use some kind of viral marketing technique
Family influences
oBiggest influence on behaviour within families relate to changing roles and responsibilities of family members
oDouble targeting: marketing strategies that reach both genders effectively
Companies are trying to reach both genders effectively
oToday’s children (generation Y) have a considerable influence on family buying decisions by giving their input
Input for marketing communications planning: business and organization buyer behaviour
Business-to-business (B2B) market: a market of goods and services needed to produce a product/service, promote an idea or operate a
business
Requirements established when buying from another company
oQuality; buyers want consistent quality
oService: buyers want reputable suppliers who provide prompt service and believe that the initiation order is simply the start of a
business relationship
oContinuity of supply: want suppliers who can provide goods over long term
oPrice: Potential long-term savings could outweigh an initial low price
Buying committee: a formal buying structure in an organization that brings together expertise from the various functional areas (finance,
marketing etc.) to share in buying decision process
Buying centre: an informal purchasing process in which individuals in an organization perform particular roles but may not have direct
responsibility for the actual decision
oUser: those in the organization who use the product directly
oInfluencers: those who define the product specifications
oBuyers: those with the authority to buy
oDeciders: those with the power to finalize the purchase
oGatekeepers: those who control the flow of info to the members of the buying centre
Seller needs to know who has the most power on buying committee/centre; personal selling or direct forms of communication are vital
Integration and partnering influences B2B communications strategies
oCollecting info about the customer and their operations is crucial
oCreating awareness is always the first step and a website with essential product info is important
Ethical issues in marketing communications practice
Privacy issues in an online world
oConsumers to recognize that every online activity is tracked and logged
oCollection of private info allows for marketers to devise unique advertising messages based on personal interests
oConsumers thought it was invasive and would change their online behaviour if advertisers were collecting data
oPrivacy laws exist through PIPEDA; offers guiding principles for businesses to follow
Sex in advertising
oSex appeal in appropriate manner and for appropriate product makes sense but gratuitous sex is something consumers shouldn't
have to tolerate
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