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Designing & Managing IntegratedMarketing Communications
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Designing & Managing Integrated MarketingCommunications
1. Modern marketing entails:a. developing a good product
b. pricing it attractivelyc. making it available
d. communicating it to present and potentialstakeholders and general public.2. The issue on communication is:
a. what to say
b. how to say itc. to whom to say itd. how often to say it.
Because of the increasing number of companies wantingto catch the increasingly divided attention of the
consumer.
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Marketing Communications- means to inform, persuade, remind
consumers directly or indirectly about the
product and brand being sold.
- represent the voice of the brand and aremeans to establish dialogue and relationships
with consumers.
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Role of marketingcommunications
1. Tell and show consumer why a product is used, bywhat kind of person, where used and when used.
2. Tell consumer who makes product and what
company and brand stand for.3. Inform consumer about incentive or reward for
trying or using product.4. Link brand to other people, places, events, brands,
experiences, feelings, things.5. Contribute to brand equity by establishing brand in
memory and crafting a brand image.
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Marketing Communications andBrand Equity
1. Every brand contact delivers an impression that can weaken orstrengthen customer view of company.
2. Marketing communications activities contribute to brand equity:a. create brand awareness.
b. Link right associations to brand image inconsumers memory.
c. Elicit positive brand judgments or feelings.d. Facilitate stronger consumer-brand
connection.
These activities must be integrated to deliver consistent messageand achieve strategic marketing positioning.
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Marketing communications mix made up ofsix major modes of communication .
1. Advertising any paid form of nonpersonal presentation and
promotion of ideas, goods, or services by identified sponsor.2. Sales promotion variety of short-term incentives to encourage
product/service trial or usage.3. Events & experiences company-sponsored activities and
programs aimed to create daily or special brand-relatedinteractions.
4. Public relations & publicity variety of programs to promote orprotect company image or individual products.
5. Direct marketing use of mail, phone, fax, email, or internet tocommunicate directly with or solicit response / dialogue fromspecific customers and prospects.
6. Personal sellingface to face interaction with present orprospective customer to make presentation, answering
questions, soliciting orders.
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Advertising Salespromotion
Events/
Experience
PublicRelations
Personalselling
DirectMarketing
Print andbroadcast ads
Packaging-outer
Packaginginserts
Motion pictures
Brochures andbooklets
Posters andleaflets
Directories
Reprints of ads
Billboards
Display signs
Point-of-purchasedisplays
Audiovisualmaterial
Symbols andlogos
Videotapes
Contests,games,
sweepstakes,lotteries
Premium andgifts
Sampling
Fairs and tradeshows
Exhibits
Demonstrations
Coupons
Rebates
Low-interest
financingEntertainmentTrade-inallowances
Continuityprograms
Tie-ins
Sports
Entertainment
Festivals
Arts
Causes
Factory tours
Companymuseums
Street activities
Press kits
Speeches
Seminars
Annual reports
Charitabledonations
PublicationsCommunityrelations
Lobbying
Identity media
Companymagazine
Salespresentations
Sales meetings
Incentiveprograms
Samples
Fairs and tradeshows
Catalogs
Mailings
Telemarketing
Electronicshopping
TV shopping
Fax mailE-mail
Voice mail
Common Communication Platforms
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MarketingCommunications
program
Brand
equity
Advertising
Sales
promotion
Events &experience
Public relations &publicity
Personal selling
Direct marketing
Brandawareness
Brandimage
Brandresponses
Brandrelationships
INTEGRATED MARKETING COMMUNICATIONS TO BUILD EQUITY
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The communication process model
Sender Encoding
Media
Decoding RECEIVER
Noise
Feedback Response
Message
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Marketing Communications & Consumer ResponseHierarchy ModelsAIDA
Model
Hierarchy-of-Effects
Model
Innovation-Adoption
Model
CommunicationsModel
Cognitive stage
Attention Awareness
Knowledge
Awareness Exposure
Reception
Cognitive response
Affective stage
Interest
Desire
Liking
Preference
Conviction
Interest
Evaluation
Attitude
Intention
Behavior Stage
Action Purchase
Trial
Adoption
Behavior
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Developing Effective CommunicationsIdentify target audience
Determine objectives
Design communications
Select channels
Establish Budget
Decide on media mix
Measure results
Manage integrated marketing
communications
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Identify target audience1. Target crucial in deciding on what, when, where,
whom to say.2. Often useful to define target audience in terms of
usage and loyalty.3. Image analysis can be done to profile target
audience on brand knowledge for further insight.
Image set of beliefs, ideas, impressions a person hason an object. Attitudes and actions are highlyconditioned by that objects image.
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Setting Communications ObjectivesRossiter & Percy four possible objectivesa. Category need establishing a product or service
category as necessary.b. Brand awareness enable consumers to identify
(recognize or recall ) brand within category. Brandawareness provides a foundation for brand equity.
c. Brand attitude enhances ability to evaluate brand andits perceived ability to meet currently relevant need.
d. Brand purchase intention induces decision topurchase brand or take purchase-related action.
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Designing the Communications1. Message strategy what to say.
a. Search for appeals or ideas that will tieinto brand positioning and help
establish points of parity orpoints of difference such as :product performance, extrinsicconsiderations.
b. Possible message anchor : reward,sensory, social, ego satisfaction.
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Designing the Communications
2. Creative strategy how to say it in specificcommunication
a. Informational appealselaborates onproduct attributes or benefits. Appealsto reason.
b. Transformational appeals elaborateson non-product-related benefit orimage. Often appeals to emotion.
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Designing the Communications
3. Message source credibility of spokesperson/endorser based on :
a. Expertise specialized knowledge of
the communicator to back up claim.b. Trustworthiness how objective and
honest communicator is perceived tobe.
c. Likeabilitythe communicatorsattractiveness e.g. candor, humor,naturalness.
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The concept of congruitya. A person has positive attitude toward source and
message; orb. Negative attitude toward both
Principle of congruity implies communicators can usegood image to reduce their good image to reduce
some negative feelings toward a brand.
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Principle of congruity and :1. Product- in some countries, certain products are
forbidden, cannot be advertised, or subject to strictregulations e.g. sin products.
2. Market segment No TV ads directed to certainage level.
3. Style Comparative ads allowed in US and
Canada but not in certain countries.
4. Local or global Use of local or global advertisingin all markets.
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Selecting CommunicationsChannels1. Personal communications channels involve two or
more persons communicating directly face- to-face,person-to-audience, over telephone, via email.
Some applications :a. Product is expensive, risky, purchased
infrequently.b. Product suggests something about users taste,
status.
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What companies can do to stimulate personalinfluence channels
a. Identify influential individuals, companies and devote extraeffort to them e.g. large company customers, journalists, policymakers, etc.
b. Create opinion leaders by supplying product on easy term.c. Work through community influentials.
d. Use believable or influential people in advertising testimonials.e. Develop advertising that has high conversation value.f. Develop word-of-mouth referral channels to build business.g. Establish electronic forum via viral marketing form of word-of-
mouth, word-of-mouth that involves passing of info from user touser.
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Non-personal CommunicationsChannels
a. Media- print, broadcast, network media, electronicmedia, display media.
b. Sales promotions use of incentives to consumers,
trade,sales force.c. Events & experiences- sports, arts,
entertainment, cause events, less formalactivities that create novel brand interactions withconsumers.
d. Public relations communications directed tointernal or external audience.
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Establishing TotalCommunications Budget1. Affordable method what company thinks it can afford.
a. Ignores role of promotions as investment and impact onsales volume.
b. Leads to uncertain budget and difficulty in long-range
planning.2. Percentage-of-sales method.a. Views sales as determinant of promotion. Should be
reverse.b. Set budget based on funds availability rather than on
market opportunities.c. Discourages experimentation with countercyclical
promotion or aggressive spending.d. No logical basis in choice of a percentage except past
practice.
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Establishing TotalCommunications Budget
3. Competitive parity method to achieve share-of-voiceparity with competitors.
a. Supposed benefits
- Competitors expenditures represent collective wisdom ofindustry.
- Prevents price war
b. Limitations- No grounds to believe competitors know better.- Different company situations. Promotional budget hardly
a guide.- No guarantee budget parity prevents promo war.
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Establishing TotalCommunications Budget
4. Objective-and-task method. Examples establishing:a. Market share goalb. % of market to be reached by advtg.c. % of aware prospects to be persuaded to try
brandd. No. of advertising impressions per X% trail
ratee. No. of gross rating points to be purchased.(
one exposure per 1% of pop.)f. Advtg. budget based on ave. cost to buy one
gross rating point.
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Deciding on Marketing Mix
1.Varies from company-to-company withinindustry.
2.Continues search for investment efficiency.
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Characteristics of MarketingCommunications Mix1. Advertising
a. Builds up long term image of productb. Triggers quick salesc. Efficiently reaches geographically dispersed buyers.
d. Consumers might believe a heavily advertised brandoffers good value.
Specifically, advertising :a. Is pervasive permits seller to repeat message many times.b. Amplifies expressiveness provides opportunities to
dramatize company, its products via artful use of print,sound, color.
c. Is impersonal a monologue. audience not obligated to pay
attention or respond.
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Characteristics of MarketingCommunications Mix
2. Sales Promotion used to draw stronger, quicker buyerresponse for short run effects. Distinctive benefits:
a. Communication gains attention and may lead to
consumer purchase.b. Incentive- incorporates some concession,
inducement, contribution that gives value to consumer.c. Invitation includes distinct invitation to engage in
transaction now.
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Characteristics of MarketingCommunications Mix
3. Public Relations & Publicity- appeal based onthree qualities :a. High credibility new stories and features
more authentic and credible than ads.b. Ability to catch buyers off guard can
reach prospects, who try to avoid salespeople and ads.
c. Dramatization potential to dramatizecompany and product.
Ch i i f M k i
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Characteristics of MarketingCommunications Mix
4. Events & Experiences
a. Relevant can be seen as highly relevant as consumer getspersonally involved.
b. Involving Given live, real time quality, consumers can findevents /experience more actively engaging.
c. ImplicitIndirect or soft sell.
5. Direct Marketing customized, up-to-date, and interactive.6. Personal Selling most effective tool at later stages of buying
process particularly in building buyer preference, conviction, andaction. Attributes :
a. Personal interaction involves immediate and interactiverelationship between two or more persons. Each party ableto observe the others reaction.
b. Cultivation permits all kinds of relationships to emerge.c. Response makes buyer feel under some obligation to
listen to sales talk.
Factors in Setting Marketing
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Factors in Setting MarketingCommunications Mix
1. Type of product. Examples :
a. Heavy advertising and promotions to launch aconsumer product.
b. More concentration on personal selling in B2B.c. Personal selling to increase distribution channels
and in-store visibility.2. Buyer-readiness stage. Examples :a. Advertising and publicity heavy in awareness-
building stage.b. Customer comprehension primarily affected by
advertising and personal selling.c. Customer conviction mostly influenced by
personal selling.d. Closing sale affected by personal selling and
sales promotion.
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Factors in Setting Marketing
Communications Mix
3. Product Life-Cycle Stage and Cost Effectiveness
a. Introductory stage advertising, events &experiences,
Publicity followed by personal selling to gaindistribution, and promotion & direct marketing toinduce trial.
b. Growth stage word of mouth.
c. Maturity stage advertising, events & experiences,personal selling.d. Decline stage sales promo. Other
communication tools are reduced.
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Measuring Communications Results entailsknowing from target audience :whether recognize orrecall communication, frequency of exposure, points
recalled, reaction to communication current andprevious attitudes to product and company.
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Managing the Integrated MarketingCommunications (IMC) Process
IMC marketing communications planning thatrecognizes the added value of a comprehensive
plan. Evaluates the strategic roles of thecommunications disciplines and combines thesedisciplines to provide : Clarity, Consistency,Maximum Impact through the seamlessintegration of discreet messages.
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Managing Mass Communications: Advertising,Sales Promotions, Events & PRDeveloping and managing the advertising program
Advertising any paid form of nonpersonal presentation andpromotion of ideas, goods, or services by identified
sponsor.
1. Most companies use services of advertising agency tocreate advtg. campaign, select & buy media.
2.Advtg. agencies are redefining themselves ascommunications companies. Offer clients to improveoverall communications effectiveness strategic andpractical advice on various forms of communications.
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5Ms in developing advertisingprogram:1. Mission - the advertising objective2. Money how much can be spent
3. Message what message to send4. Media what media to use5. Measurement how to evaluate results
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Advertising goal/objective specific
communications task and achievement level tobe accomplished with a specific audience in aspecific period/time. Ex.
Generate 30% brand awareness among
females in CDE households in 25-45 agegroup within 6 mos. from product launch date.
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Kinds of advertising objectives1. Informative to create brand awareness and
knowledge on new products or features.2. Persuasive to create liking, preference,
conviction, purchase.3. Reminder to stimulate repeat purchase ofproduct or service.
4. Reinforcement to convince current users they
made right choice.
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Basis of advertising objective : thorough
analysis of marketing situation. Examples :
1. Mature product class, company is market
leader, brand usage is low:Objective - reminder.
2. Product class new, company not market
leader, brand is superior to leader :Objective persuasive.
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Setting Advertising Budget1.Product life cycle. New products typically require heavyinitial advtg support for awareness and trial usage.
2. Market share and consumer base. High market share brandneeds less advtg money as percentage of sales.
3. Competition and clutter. Many competitors mean more brandspending to be heard.
4. Frequency
5. Product substitutability. Brand in less-differentiated industry likemany consumer products needs more advertising money.
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Developing Advertising Campaign1. Message strategy What ad wants to conveyabout brand.
2. Creative strategy How to convey brandmessage.
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Factors in creative strategy1. Message generation & evaluation ( What )
a. need for fresh insights versus others.b. use of market research to know appeal that works best
with target audience.c. prepare a creative brief on positioning statement to
include key messages, target audience, communicationsobjectives, key brand benefits, brand support and media.
2. Creative development & execution ( How )a. copy strategy statement that includes objective, content,
support, and tone desired.
3. Social responsibility review.a. ensures that advertising does not violate social or legal
norms.
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Deciding on reach, frequency, andimpactMedia selection is finding most cost-effective mediato deliver the desired number and type of exposure tothe target audience.
a.Reach ( R ) number of different
persons/households exposed to a particularschedule at least once during a specified period.
b. Frequency ( F ) number of times within a specified
period an average person/household is exposed to amessage.c. Impact ( I ) qualitative value of an exposure through
a given medium.
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Relationships of above captured in ff.concepts : Example
a.Total number of exposures = Reach xfrequency
= 80% hholds x 3= 240 (gross rating points)
b. Weighted no. of exposure = R x F x I
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Choosing among major mediatypes1. Factors
a. target audience media habitsb. product characteristics
c. message characteristicsd. cost
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Alternative Advertising Options1. Place advertising or out-of-home
a. billboardsb. public spaces e.g lounges, airports, movies,
buses
2. Product placement in movies, TV, advertorials,branded entertainment.
3. Point-of Purchase
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Selecting specific vehicle based onaudience size1. Circulation- number of physical units carrying the
advtg.2. Audience number of people exposed to the
vehicle including pass-on readership.3. Effective audience- number of people with target
audience characteristics exposed to vehicle.4. Effective ad-exposed audience- number of people
with target audience characteristics who actuallysaw the ad.
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Media Timing and Allocation1. Macroscheduling scheduling advertising based on
season and business cycle.2. Microschedulingallocating expenditures within a short
period for maximum impact.a. Burst concentrated
b. Dispersed continuouslyc. Dispersed intermittently3. For new product launch, possible scheduling can be :
a. Continuity exposure is evenly in a given period.b. Concentration spending all in a given period.
c. Flighting advertising , no advertising,advertising.
d. Pulsing continuous low advertising followed byperiodical wave.
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Evaluating AdvertisingEffectiveness1. Communication-effect research seeks to determine
if an ad is communicating effectively via copytesting.
2. Sales-effect research tries to measure salesgenerated by an ad that increases brandawareness and brand preference.
Caution : sales is influenced by many factors other thanadvertising.
Formula for Measuring Sales impact of
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Share of expenditures
Share of voice
Share of mind and heart
Share of market
Formula for Measuring Sales impact ofAdvertising
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Sales Promotion incentive tools , mostly shortterm, to stimulate quicker or greater purchase
of a particular product or service by consumersor trade.
Sales Promo Objectives
1.attract new triers, reward loyalty, increaserepurchase rate of occasional users.
2. Strengthen long term partnership ( B2B ).
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Sales Promo Decisions1. Establishing objectives2. Choice of consumer promo tools3. Choice of trade promo tools
4. Choice of business & sales force promo tools5. Program development6. Pretesting, implementation, control and evaluation
of program
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Events & ExperiencesEvents Objectives
1. Identify with a particular target market or life style.2. Increase product or company name awareness.
3. Create or reinforce consumer perception of keybrand image association.
4. Enhance corporate image dimension.5. Create experiences and evoke feelings.
6. Express commitment to community, social issues.7. Entertain key clients or reward key employees.8. Permit merchandising or promotional opportunities.
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Major decisions1. Choice of event opportunities
2. Design of program sponsorship3. Measure of sponsorship activitiesa. Supply side : potential exposure to brand via
media exposure.b. Demand side : reported exposure from
consumers.Public Relations
a. Public any group that has actual or potential interestin or impact of companys ability to achieve its
objectives.b. Public relations ( PR)- a variety of programs aimed to
promote or protect a companys image or its
individual products.
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PR functions1. Press relations present news and information about the
organization in the most positive light.2. Product publicity- sponsoring efforts to publicize specific
products.3. Corporate communicationspromote understanding of the
organization through internal/external communications.4. Lobbying- deal with legislators, govt officials to promote ordefend legislation and regulation.
5. Counseling advise management on public issues andcompany potential positions and image during good and bad
times.
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Marketing Public Relations(formerly Publicity )1. Assist in launch of new products2. Assist in repositioning a mature product3. Build interest in a product category
4. Influence specific target group(s)5. Defend product with public problems6. Build corporate image that reflect favorably on
product.
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Major MPR Decisions1. Setting Objectives2. Choice of message and vehicle(s)
3. Plan implementation4. Results evaluation
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