Professor Takada Integrated Marketing Communication Advertising Sales Promotion Public Relations...

Professor TakadaProfessor Takada

Integrated Marketing Communication Advertising Sales Promotion Public Relations

Personal SellingDirect Marketing

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Professor TakadaProfessor Takada９ -2

Mini’s Guerrilla Marketing


Marketing Communications

The means by which firms attempt to inform, persuade, and remind

consumers, directly or indirectly, aboutthe products and brands they sell.


IMC Builds Brands


Product Launch Communications Mix

Kleenex allocated its communications dollars:

•75% Television

•23% Print

•2% Online


Factors in Setting Communications Mix

• Type of product market

• Consumer readiness to make a purchase

• Stage in the product life cycle

• Market rank


Field of Experience

Receiver’s

field

Sender’s

field


Elements in the Communications Process


The Communications Process

Selective attention

Selective distortion

Selective retention


Response Hierarchy Models


ROAD MAP: Previewing the Concepts

• Integrated marketing communicationsFive promotion tools and the factors that must be considered in

shaping the overall promotion mix.

– Advertising:

The major decisions involved in developing an advertising program.

– Sales promotion: How do sales promotion campaigns are developed and

implemented?

– Public relations: How do companies use public relations to communicate with their publics?

– Personal selling:Role of a company’s salespeople, six major steps and process of

sales force management – Direct marketing:

Major forms of direct marketing.


Marketing Communications Mix

• Advertising– Any paid form of nonpersonal presentation and promotion of ideas, goods, or

services by an identified sponsor.

• Sales Promotion– Short-term incentives to encourage the purchase or sale of a product or service.

• Public Relations– Building good relations with the company’s various publics by obtaining

favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

• Personal Selling– Personal presentation by the firm’s sales force for the purpose of making sales

and building customer relationships.

• Direct Marketing– Direct connections with carefully targeted individual consumers to both obtain an immediate

response and cultivate lasting customer relationships—the use of telephone, mail, fax, e-mail, the Internet, and other tools to communicate directly with specific consumers.


The Changing Communications Environment

Two factors are changing the face of today’s marketing communications:

As mass markets have fragmented, marketers are shifting away from mass marketing

Vast improvements in information technology are speeding the movement toward segmented marketing

The Need for IMC

Using IMC, the company carefully integrates and coordinates its many communication channels to deliver a clear, consistent, and

compelling message about the organization and its brands.


Integrated Marketing Communication


Advertising• Can reach masses of

geographically dispersed buyers.

• Can repeat a message many times.

• Is impersonal, one-way communication.

• Can be very costly for some media types.

Personal Selling

• Involves personal interaction.Involves personal interaction.• Allows relationship building.Allows relationship building.• Most expensive promotion tool.Most expensive promotion tool.

Sales Promotion

• Wide assortment of tools.Wide assortment of tools.

• Attracts consumer Attracts consumer attention.attention.

• Offers strong incentives to Offers strong incentives to buy.buy.

• Invites and rewards quick Invites and rewards quick consumer response.consumer response.

• Effects are short-lived.Effects are short-lived.

Public Relations

• Very believable.Very believable.• Reaches people who Reaches people who

avoid salespeople and avoid salespeople and ads.ads.

• Can dramatize a Can dramatize a company or product.company or product.

• Under utilized.Under utilized.• Effective and economical.Effective and economical.

Direct Marketing

• Many forms that share four Many forms that share four characteristics:characteristics:

Nonpublic/Immediate/Customized/Nonpublic/Immediate/Customized/InteractiveInteractive

• Well suited to highly targeted marketing.Well suited to highly targeted marketing.


Push vs. Pull Promotion Strategy


Cost Effectiveness by Buyer Readiness Stage


Current Consumer States for Two Brands


Personal Communications Channels

Advocate channels

Expert channels

Social channels


Coordinating Media to Build Brand Equity

Brand Signature

Media Interactions

Ad Retrieval

Cues


ROAD MAP:

• Integrated marketing communicationsFive promotion tools and the factors that must be considered in

shaping the overall promotion mix.

– Advertising:

The major decisions involved in developing an advertising program.– Sales promotion:

How do sales promotion campaigns are developed and implemented?

– Public relations: How do companies use public relations to communicate with their publics?

– Personal selling:Role of a company’s salespeople, six major steps and process of sales force

management – Direct marketing:

Major forms of direct marketing.


Advertising

Any paid form of nonpersonal presentationand promotion of ideas, goods, orservices by an identified sponsor.


Procter & Gamble’s Advertising History


Major Decisions in Advertising


Setting Advertising Objectives

•An advertising objective: – A specific communication task to be

accomplished with a specific target audience during a specific period of time.

•Classified by purpose:– Inform– Persuade– Compare– Remind


Communications Objectives

Category Need

Brand Awareness

Brand Attitude

Purchase Intention


Factors to Consider in Setting an Advertising Budget

Stage in the product life cycle

Market share and consumer base

Competition and clutter

Advertising frequency

Product substitutability


Setting the Advertising Budget

Affordable Based on What the Company Thinks it Can Afford

Objective-and-Task Set Objectives, Determine Tasks to Achieve Objectives,

Sum of Task Costs Equals Budget

Objective-and-Task Set Objectives, Determine Tasks to Achieve Objectives,

Sum of Task Costs Equals Budget

Percentage-of-SalesBased on a Percentage of Current or Forecasted Sales

Percentage-of-SalesBased on a Percentage of Current or Forecasted Sales

Competitive-ParitySet Budget to Match Competitors

Competitive-ParitySet Budget to Match Competitors


Objective-and-Task Method• Establish the market share goal.• Determine the percentage that should be

reached.• Determine the percentage of aware prospects

that should be persuaded to try the brand.• Determine the number of advertising impressions

per 1% trial rate.• Determine the number of gross rating points that

would have to be purchased.• Determine the necessary advertising budget on

the basis of the average cost of buying a GRP.


Developing Advertising Strategy

•Two major elements:

– Message decisions

– Media decisions


Message Strategy

Identify Customer Benefits

Develop Compelling Creative ConceptThe “Big Idea”

Advertising Appeals Should BeMeaningful, Believable, & Distinctive


Image

The set of beliefs, ideas, and impressionsa person holds regarding an object.


Communications Objectives

Category Need

Brand Awareness

Brand Attitude

Purchase Intention


Designing the Communications

• Message strategy

• Creative strategy

• Message source

• Personal communication channels

• Nonpersonal communication channels

• Integration


Creative Strategy

• Informational and transformational appeals

• Positive and negative appeals– Fear– Guilt– Shame– Humor– Love– Pride– Joy


Creative Brief

• Positioning statement

• Key message

• Target market

• Objectives

• Key brand benefits

• Brand promise

• Evidence of promise

• Media

• Background

• Creative considerations


The Importance of TaglinesBrand Theme Ad Tagline

Our hamburgers are bigger.

Where’s the Beef?

Our tissue is softer. Please Don’t Squeeze the Charmin.

No hard sell, just a good car.

Drivers Wanted

We don’t rent as many cars, so we have to do more for our customers.

We Try Harder


Message Source

Celebrity Characteristics– Expertise– Trustworthiness– Likeability


Stimulating Personal Influence Channels

• Identify influential individuals and devote extra attention to them

• Create opinion leaders

• Use community influentials in testimonial advertising

• Develop advertising with high “conversation value”

• Develop WOM referral channels

• Establish an electronic forum

• Use viral marketing


Nonpersonal Communication Channels

Media

Sales Promotion

Events and Experiences

Public Relations


Message Execution

Slice of LifeSlice of Life

LifestyleLifestyle

FantasyFantasy

Mood or ImageMood or Image

MusicalMusical

Personality SymbolPersonality Symbol

Technical ExpertiseTechnical Expertise

Scientific EvidenceScientific Evidence

Testimonial Evidenceor Endorsement

Testimonial Evidenceor Endorsement

Typical

Approaches

Comparative advertising, celebrity endorsement (Nike with Tiger Woods), humor in ads.


Message Execution

•Choose a tone

•Use memorable, attention-getting words

•Choose correct format elements– Illustration– Headline– Copy


Media Decisions

• Reach & Frequency, Gross Rating Point (GRP)

• Media Impact– The qualitative value of a message exposure through a given

mediumMedia Type

• Major media types:Major media types:

• Newspapers, TV, DM, radio, Newspapers, TV, DM, radio, magazines, outdoor, magazines, outdoor, Internet.Internet.

• Factors to consider:Factors to consider:– Media habits of target consumersMedia habits of target consumers– Nature of the productNature of the product– Type of messageType of message– CostCost– Media vehiclesMedia vehicles

• Specific media within each Specific media within each general media typegeneral media type

Media Timing

• Must decide how to schedule Must decide how to schedule the advertising over the course the advertising over the course of a yearof a year

– Follow seasonal patternFollow seasonal pattern– Oppose seasonal patternOppose seasonal pattern– Same coverage all yearSame coverage all year

• Choose the pattern of the adsChoose the pattern of the ads– ContinuityContinuity– PulsingPulsing


TelevisionAdvantages

• Reaches broad spectrum of consumers

• Low cost per exposure

• Ability to demonstrate product use

• Ability to portray image and brand personality

Disadvantages

• Brief

• Clutter

• High cost of production

• High cost of placement

• Lack of attention by viewers


Print Ads

Advantages

• Detailed product information

• Ability to communicate user imagery

• Flexibility

• Ability to segment

Disadvantages

• Passive medium

• Clutter

• Unable to demonstrate product use


Print Ad Components

Headline

Picture

SignatureCopy


Media Selection

• Reach

• Frequency

• Impact

• Exposure


Relationship among Trial, Awareness, and the Exposure Function


Reach x Frequency = GRPs


Choosing Among Major Media Types

• Target audience and media habits

• Product characteristics

• Message characteristics

• Cost


Major Media Types

• Newspapers

• Television

• Direct mail

• Radio

• Magazines

• Outdoor

• Yellow pages

• Newsletters

• Brochures

• Telephone

• Internet


Marketing Communication Expenditures (2001)

Media $ % of Total

TV 52.7 22

Radio 19.4 8

Internet 3.4 1

Magazines 12.3 5

Newspaper 49.4 21


Classification of Advertising Timing Patterns


Factors Affecting Timing Patterns

• Buyer turnover

• Purchase frequency

• Forgetting rate


Media Schedule Patterns

• Continuity

• Concentration

• Flighting

• Pulsing


Evaluating Advertising Effectiveness

• Communication Effect Research– Consumer feedback

method– Portfolio tests– Laboratory tests

• Sales-Effect Research


Evaluating Advertising

Measure the communication effects of an ad.“Copy Testing”

Measure the sales effects of an ad.Is the ad increasing sales?


Print Ad Evaluation Criteria• Is the message clear at a glance?

• Is the benefit in the headline?

•Does the illustration support the headline?

•Does the first line of the copy support or explain the headline and illustration?

• Is the ad easy to read and follow?

• Is the product easily identified?

• Is the brand or sponsor clearly identified?


Other Advertising Considerations

Small Companies:Sales Departments

Large Companies:Advertising

Departments

Advertising Agency:A marketing services firm that assists companies

in planning, preparing, implementing, and evaluating all or portions of their advertising

programs.


A New Advertising Challenge

Date post:	18-Dec-2015
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