Imc

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 16

Designing and Managing Designing and Managing Integrated Marketing Integrated Marketing

CommunicationsCommunications


ObjectivesObjectives

Learn the major steps in developing an effective integrated marketing communications program.

Understand the steps involved in developing an advertising program.

Learn how companies can exploit the marketing potential of sales promotion, public relations, direct marketing, and e-marketing.


Marketing CommunicationsMarketing Communications

Advertising

Sales Promotion

Public relations

Direct marketing

Personal selling

Communications Platforms


The Marketing CommunicationsMix

The Marketing CommunicationsMix

AdvertisingAdvertising

Personal SellingPersonal Selling

Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.

Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.

Sales Promotion Short-term Incentives to Encourage Sales.

Public RelationsBuilding Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity.

Direct MarketingDirect Communications With Individuals to Obtain an Immediate Response.

Personal Presentations by a Firm’s Sales Force.


Figure : Elements in the Figure : Elements in the Communication ProcessCommunication Process


Developing Effective Developing Effective Marketing CommunicationsMarketing Communications

Identify target audience

Determine objectives of communication

Design the message

Select communication channels

Establish the budget

Select the marketing communications mix

Measure results

Manage the IMC process

Steps in Marketing Communications Program Development



Step 1: Identifying the target audience

– Includes assessing the audience’s perceptions of the company, product, and competitors’ company/product image

Step 2: Cognitive, affective, and behavioral objectives may be set

Step 3: AIDA model guides message design



Message Design

Content

Structure

Format

Source

Message content decisions involve the selection of appeal, theme, idea, or USP

Types of appeals– Rational appeals– Emotional appeals– Moral appeals



Message Design

Content

Structure

Format

Source

One-sided vs. two-sided messages

Order of argument presentation



Message Design

Content

Structure

Format

Source

Message format decisions vary with the type of media, but may include:– Graphics, visuals– Headline, copy or

script– Sound effects,

voice qualities– Shape, scent,

texture of package



Message Design

Content

Structure

Format

Source

Message source characteristics can influence attention and recall

Factors underlying perceptions of source credibility:– Expertise– Trustworthiness– Likability



Step 4: Selecting Communication Channels

– Personal communication channelsEffectiveness derives from

personalization and feedbackSeveral methods of stimulating personal

communication channels exist– Nonpersonal communication channels

Influence derives from two-step flow-of-communication process



Devoting extra effort to influential individuals or companies

Creating opinion leaders

Working through influential community members

Using influential people in testimonial advertising

Developing advertising with high “conversation value”

Use viral marketing

Developing word-of-mouth referral channels

Establishing an electronic forum

Methods of Stimulating Personal Communication



Step 5: Establishing the Marketing Communications Budget

– Affordability method– Percentage-of-sales method– Competitive-parity method– Objective-and-task method

Step 6: Deciding on the Marketing Communications Mix



Communications Mix Selection

Types of promotional tools

Selection factors

Advertising

Sales promotion

Public relations and publicity

Direct marketing

Personal selling



Communications Mix Selection

Types of promotional tools

Selection factors

Consumer vs. business market

Stage of buyer readiness

Stage of product life cycle

Market rank



Step 7: Measure Results

– Recognition, recall, attitudes, behavioral responses

Step 8: Manage the Integrated Marketing Communications Process

– Provides stronger message consistency and greater sales impact

– Improves firms’ ability to reach right customers at right time with right message


Developing and Managing the Developing and Managing the Advertising CampaignAdvertising Campaign

The Five Ms of Advertising

Mission

Money

Message

Media

Measurement

Objectives can be classified by aim:

– Inform– Persuade– Remind– Reinforce



Factors considered when budget-setting:– Stage of product life

cycle– Market share and

consumer base– Competition and

clutter– Advertising frequency– Product

substitutability


Mission

Money

Message

Media

Measurement



Factors considered when choosing the advertising message:

– Message generation– Message evaluation

and selection– Message execution– Social responsibility

review


Mission

Money

Message

Media

Measurement



Developing media strategy involves:– Deciding on reach,

frequency, and impact – Selecting media and

vehicles– Determining media

timing– Deciding on

geographical media allocation


Mission

Money

Message

Media

Measurement



Newspapers

Television

Direct mail

Radio

Magazines

Outdoor

Yellow pages

Newsletters

Brochures

Telephone

Internet

Major Media Types



Deciding on Media Categories

– Target audience’s media habits, nature of the product and message, cost

Media Timing Decisions

– Macroscheduling vs. microscheduling– Continuity, concentration, flighting, and

pulsing scheduling options Deciding on Geographical Allocation



Evaluating advertising effectiveness

– Communication-effect research

– Sales-effect research


Mission

Money

Message

Media

Measurement


Sales PromotionSales Promotion

Sales promotions are short-term incentives designed to stimulate purchase among consumers or trade

Purpose of sales promotion

– Attract new triers or brand switchers– Reward loyal customers– Increase repurchase rates


Three Targeted Groups of Three Targeted Groups of Sales PromotionsSales Promotions

Consumer Promotion: Targeting end users.

Trade promotion: Targeting Intermediaries.

Sales-force Promotion: Targeting Sales-force.



Establish objectives

Select consumer-promotion tools

Select trade-promotion tools

Select business- and sales force promotion tools

Develop the program

Pretest the program

Steps in Sales Promotion Program Development

Implement and evaluate the program



Samples

Coupons

Cash refunds (rebates)

Premiums

Prizes (contests, sweepstakes, games)

Patronage awards

Free trials

Product warranties

Tie-in promotions

Cross-promotions

Point-of-purchase displays and demonstrations

Major Consumer-Promotion Tools


Public RelationsPublic Relations

Public relations activities promote or protect the image of a firm or product

Public relations functions:

– Press relations– Product publicity– Corporate communications– Lobbying– Counseling



Marketing Public Relations (MPR)

– Plays an important role in New product launchesRepositioning of mature brandBuilding interest in product categoryInfluencing specific target groups Defending products with public problemsBuilding the corporate image

Three Major MPR Decisions



Publications

Events

Sponsorships

News

Speeches

Public-service activities

Identity media

Major Public Relations Tools


Direct MarketingDirect Marketing

Direct marketing uses consumer-direct channels to reach and deliver offerings to consumers without intermediaries.

Direct marketing is growing and offers consumers key benefits.

Firms are recognizing the importance of integrated direct marketing efforts.


Setting the Promotion Setting the Promotion MixMix

Setting the Promotion Setting the Promotion MixMix

Nature of Each Promotion Tool

AdvertisingReaches Many Buyers, ExpressiveImpersonal

AdvertisingReaches Many Buyers, ExpressiveImpersonal

Personal SellingPersonal Interaction, Builds Relationships Costly

Personal SellingPersonal Interaction, Builds Relationships Costly

Sales PromotionProvides Strong Incentives to BuyShort-Lived

Sales PromotionProvides Strong Incentives to BuyShort-Lived

Public RelationsBelievable, Effective, EconomicalUnderused by Many Companies

Public RelationsBelievable, Effective, EconomicalUnderused by Many Companies

Direct MarketingNonpublic, Immediate, Customized,Interactive

Direct MarketingNonpublic, Immediate, Customized,Interactive


Factors in Developing Promotion Factors in Developing Promotion Mix StrategiesMix Strategies

Factors in Developing Promotion Factors in Developing Promotion Mix StrategiesMix Strategies

• Push Strategy - “Pushing” the Product Through Distribution Channels to Final Consumers.

• Pull Strategy - Producer Directs It’s Marketing Activities Toward Final Consumers to Induce Them to Buy the Product.

Type of Product/ Market

Buyer/ Readiness

Stage

Product Life-Cycle Stage


Changing Face of Changing Face of MarketingMarketing


Changing Face of Changing Face of MarketingMarketing


Marketers Have ShiftedAway From Mass

MarketingLess Broadcasting

Marketers Have ShiftedAway From Mass

MarketingLess Broadcasting

New Marketing Communications RealitiesNew Marketing Communications Realities

Improvements in Information Technology

Has Led to Segmented MarketingMore Narrowcasting

Improvements in Information Technology

Has Led to Segmented MarketingMore Narrowcasting


Integrated Marketing Integrated Marketing CommunicationsCommunications

Integrated Marketing Integrated Marketing CommunicationsCommunications

Company Carefully Integrates and Coordinates Its Many Communication Channels to Deliver a Clear, Consistent, Compelling

Message.

AdvertisingAdvertising

Personal Selling

Personal Selling

Public Relations

Public Relations

Sales Promotion

Sales Promotion

DirectMarketing

DirectMarketing

PackagingPackaging

EventMarketing

EventMarketing

Message


Promotion/Communications MixPromotion/Communications Mix

Factors in setting the Marketing Communications Mix– Type of Product Market

Advertising’s role in business markets:

– Advertising can provide an introduction to the company and its products

– If the product embodies new features, advertising can explain them

– Reminder advertising is more economical than sales calls

– Buyer-Readiness Stage

– Product Life-Cycle Stage



Face-to-face selling

Direct mail

Catalog marketing

Telemarketing

Direct-response TV marketing

Kiosk marketing

E-marketing

Major Direct Marketing Tools



Steps in Developing a Direct-Mail Campaign:

– Step 1: Set objectives– Step 2: Identify target markets– Step 3: Define the offer– Step 4: Test the elements– Step 5: Measure results

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