The IMC Planning Process PDF

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The IMC Planning Process...

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The IMC Planning Process The IMC Planning Process: Teacher’s PowerPoint: Book:

4.1 What makes marketing research critical to the IMC planning process? Communication research: (3) 1. Product-specific research: A form of communications research that seeks to identify key product characteristics that become selling points. 2. Customer-oriented research: A form of communications research that seeks to discover the context of a product’s use through anthropological, sociological, or psychological analysis. Anthropological: approach involves direct observation of consumers using the good or service. Sociological: analysis of social class issues, trends, and family life cycle changes. Psychological: motives for product purchases; such as feeling sexy, powerful, or intelligent 3. Target-market research: A form of communications research that identifies the recipients of a planned communications campaign. Focus group: Consist of consumers who talk about a particular topic, product, or brand in front of a moderator or panel who tracks consumer comments and ideas.

4.2 What categories are used to identify consumer target market or market segments? Market segment: A set of businesses or group of individual customers with distinct characteristics. Tests to Determine if a Particular Market Segment Is Viable: o Homogeneous o Distinct o Large enough o Reachable Market segmentation: Identifying specific groups (target markets) based on their needs, attitudes, and interests. Methods of Segmentating customer markets: • Demographics • Psychographics • Generations • Geographic • Geodemographics • Benefits • Usage Demographics: Population characteristics such as gender, age, educational levels, income, and ethnicity. Gender o Gender difference in communications o Female consumers -Control 66% of spending ($12 trillion) -Involved in purchasing high-priced electronics (96%) -Deal with financial advisors (90%) -Buy and sell stocks (80%) -Household’s primary accountant (70%)

Age o Combine with other demographic variables

o Children attractive group; i.e. see the table ---> Psychographics: Patterns of response that reveal a person’s activities, interests, and opinions (AIO). Describe consumers AIO measures o Activities o Interests o Opinions Combine with demographic profiles VALS Typology: Values, attitudes, and lifestyles.

-Categorizes respondent into eight different groups; Ø Innovators – successful, sophisticated – upscale products Ø Thinkers – educated, conservative, practical – durability, value Ø Achievers – goal-oriented, conservative, career, and family Ø Experiencers – young, enthusiastic, impulsive, fashion, social Ø Believers – conservative, conventional, traditional Ø Strivers – trendy, fun-loving, peers important Ø Makers – self-sufficient, respect authority, not materialistic Ø Survivors – safety, security, focus on needs, price Geo-targeting: Marketing appeals made to people in a geographic area of region. Geodemographic segmentation: Identifies potential customers using demographic information, geographic information, and psychographic information. Benefit segmentation: Focuses on the advantages consumers receive from a product rather than the characteristics of consumers themselves. -Demographic and psychographic information could be combined. For example; the fitness industry: o Winners o Dieters o Self-improvers

Usage segmentation: Examines groups based on usage or purchases. -Including the company’s best customers or heavy users, average users, casual or light customers, and nonusers. o Usage or purchase history o Create clusters o Target specific clusters o Create marketing programs for each cluster o Measure growth and migration

4.3 What categories are used to identify business-to-business market segments?* Methods of Segmenting Business-to-Business Markets: • Industry (NAICS code) • Size of business • Geographic location • Product usage • Customer value

4.4 How do the various approaches to positioning influence the IMC planning process? Product positioning: The perception in the consumer’s mind of the nature of a company and its products relative to the competition. -Created by factors such as product quality, prices, distribution, image, and marketing communications. Product positioning approaches: • Attributes

• Competitors • Use or application • Price-quality relationship • Product user • Product class • Cultural symbol Other elements of positioning; International positioning

4.5 How do the marketing communications objectives interact with the other elements of an IMC planning process? Benchmark measures: Starting points that are studied in relation to the degree of change following a promotional campaign. Communications objectives are derived from overall marketing objectives! Marketing Objectives: • Sales volume • Market share • Profits • Return on investment Communications Objectives: • Develop brand awareness • Increase category demand • Change customer beliefs or attitudes • Enhance purchase actions • Encourage repeat purchases • Build customer traffic • Enhance firm image • Increase market share • Increase sales • Reinforce purchase decisions

4.6 How are communications budgets established? Methods of determining a marketing communications budget: (6) 1. Percentage of sales 2. Meet the competition 3. ‘’What we can afford’’ 4. Objective and task 5. Payout planning 6. Quantitative models 1. Percentage-of-sales budget: A form of communications budgeting in which budgeting is based on sales from the previous year or anticipated sales for the next year. 2. Meet-the-competition budget: A communication budget in which expenditures are raised or lowered to match the competition. 3. ‘’What we can afford’’ budget: A communications budget that is set after all of the company’s other budgets have been determined or while the other budgets are set and communications money is allocated based on what company leaders feels they can afford to spend. 4. Objective-and-task budget: A communications budget in which management first lists all of the communications objectives to pursue during the year and then calculates the cost of accomplishing those objectives. 5. Payout-planning budget: A budgeting method that establishes a ratio of advertising to sales or market share.

6. Quantitative Models: (3) 1. Pulsating schedule: An advertising program that is continuous throughout the year with bursts of higher intensity at specific times. 2. Flighting schedule: An advertising schedule in which communications are present only at peak times during the year. 3. Continuous campaign schedule: An advertising schedule that involves level amounts of spending and messages throughout the year.

4.7 What elements are considered in developing an IMC program?* Breakdown of marketing communications expenditures: • Advertising, 41.1% • Consumer Promotions, 27.9% • Trade Promotions, 27.5% • Other, 3.3% Global ad spending by media: • Television, 57.6% • Newspapers, 18.9% • Magazines, 10.0% • Radio, 5.4% • Digital, 4.3% • Outdoor, 3.5% • Cinema, 0.3% Successful globally integrated marketing tactics: • Understand the international market • Create a borderless marketing plan • Think globally but act locally • Local partnerships • Communication segmentation strategies • Market communications analysis • Solid communications objectives...