What are Marketing Communications?
Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers, directly or
indirectly, about the products and brands they sell.
MARKETER INITIATED TECHNIQUES USED TO SET UP CHANNELS OF INFORMATION AND PERSUASION WITH
TARGETED AUDIENCES TO INFLUENCE
ATTITUDES AND BEHAVIOR
MAJOR OBJECTIVES OF MARKETING COMMUNICATIONS
InformingInforming PersuadingPersuading
RemindingReminding
MARKETING COMMUNICATIONS OBJECTIVES
• Increase Market Penetration• Develop Repeat Purchase Behavior• Establish Customer Relationships• Increase Rate of Consumption• Encourage Product Trial• Stimulate Impulse Buying• Stimulate Demand• Differentiate the Product• Establish a Product Image• Influence Sales Volume• Establish, Modify, or Reinforce Attitudes• Develop Sales Leads• Stimulate Interest• Establish Understanding• Build Support & Acceptance
ELEMENTS OF THE MARKETING COMMUNICATIONS MIX
1. Advertising1. Advertising
2. Public Relations2. Public Relations5. Direct Marketing5. Direct Marketing
3. SalesPromotion3. Sales
Promotion4. Personal Selling 4. Personal Selling
Integrated Marketing Communications (IMC) is the strategic integration of multiple means of
communicating with target markets
MARKETING COMMUNICATIONS PLANNING
Marketing Plan ReviewMarketing Plan Review
Situation AnalysisSituation Analysis
Communications ProcessAnalysis
Communications ProcessAnalysis
Budget DevelopmentBudget Development
Program DevelopmentProgram Development
Integration & ImplementationIntegration & Implementation
Monitoring, Evaluating, Controlling
Monitoring, Evaluating, Controlling
METHODS
PUSH vs.PULL
Push and Pull Strategies
• Push strategy is directed toward the channel members• Provide incentives for those in the
distribution channels to buy the product
• Pull strategy is directed toward the ultimate purchaser• The focus is on creating demand at the
household or ultimate consumer level
Modes of Marketing Communications
• Advertising• Sales promotion• Events and
experiences• Public relations and
publicity
• Direct marketing• Interactive
marketing• Word-of-mouth
marketing• Personal selling
Communication Platforms
Advertising• Print and broadcast ads• Packaging inserts• Motion pictures• Brochures and booklets• Posters• Billboards• POP displays• Logos• Videotapes
Sales Promotion• Contests, games,
sweepstakes• Premiums• Sampling• Trade shows, exhibits• Coupons• Rebates• Entertainment• Continuity programs
Communication Platforms
Events/ Experiences
• Sports• Entertainment• Festivals• Arts• Causes• Factory tours• Company museums• Street activities
Public Relations• Press kits• Speeches• Seminars• Annual reports• Charitable donations• Publications• Community relations• Lobbying• Identity media• Company magazine
Communication Platforms
Personal Selling• Sales presentations• Sales meetings• Incentive programs• Samples• Fairs and trade shows
Direct Marketing• Catalogs• Mailings• Telemarketing• Electronic shopping• TV shopping• Fax mail• E-mail• Voice mail• Blogs• Websites
Word-of-Mouth Marketing
• Person-to-person• Chat rooms• Blogs
Elements in the Communications Process
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 17-14
Coordinating Media to Build Brand Equity
Brand Signature
Media Interactions
Ad Retrieval
Cues
Marketing Discussion
Pick a brand and go to the Website.Locate as many forms ofcommunication as you can find.
Conduct an informal communicationsaudit. What do you notice? Howconsistent are the differentcommunications?
integrated marketing communication
(IMC) is the philosophy that every element of a marketing campaign should
mesh perfectly with every other element, and that all verbal and nonverbal messages a company sends to the marketplace must be consistent. From advertising, to promotions, to prices and public relations, every element must send the same message to consumers, developing a singular brand image for your company and products.
Integrated Marketing Communications
• The Marketing Communications Environment is Changing:• Mass markets have fragmented, causing
marketers to shift away from mass marketing to target marketing
• Improvements in information technology are facilitating segmentation
• Media fragmentation has occurred with companies doing less broadcasting and more narrowcasting
Goal 1: Know the tools of the marketing communications mix
Integrated Marketing Communications
• The Need for Integrated Marketing Communications• Conflicting messages from different sources or
promotional approaches can confuse company or brand images
• The problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently
Goal 1: Know the tools of the marketing communications mix
Integrated Marketing Communications
• The Need for Integrated Marketing Communications• The Internet must be integrated into the
broader IMC mix• Best bet is to wed traditional branding
efforts with the interactivity and service capabilities of online communications
Goal 1: Know the tools of the marketing communications mix
Traditional CompensationTraditional Compensation Performance Based Compensation Performance Based Compensation Traditional CompensationTraditional Compensation Performance Based Compensation Performance Based Compensation
Media AdvertisingMedia Advertising Multiple Forms of CommunicationMultiple Forms of Communication
Mass MediaMass Media Specialized MediaSpecialized Media
Manufacturer DominanceManufacturer Dominance Retailer DominanceRetailer Dominance
General FocusGeneral Focus Data Based MarketingData Based Marketing
Low Agency AccountabilityLow Agency Accountability Greater Agency AccountabilityGreater Agency Accountability
Limited Internet AvailabilityLimited Internet Availability Widespread Internet AvailabilityWidespread Internet Availability
Media AdvertisingMedia Advertising Multiple Forms of CommunicationMultiple Forms of Communication
Mass MediaMass Media Specialized MediaSpecialized Media
Manufacturer DominanceManufacturer Dominance Retailer DominanceRetailer Dominance
General FocusGeneral Focus Data Based MarketingData Based Marketing
Low Agency AccountabilityLow Agency Accountability Greater Agency AccountabilityGreater Agency Accountability
Marketing Revolution and Shifting Tides
From Toward
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Integrated Marketing Communications
• Integrated Marketing Communications• The concept under which a company
carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.
IMC–Audience Contact Points
Marketing Communications Audience
Marketing Communications Audience
Point of PurchasePoint of Purchase PublicityPublicity Public
RelationsPublic Relations PackagingPackaging
DirectResponseDirectResponse
Sales PromotionSales Promotion
EventsEventsOutdoorOutdoorBroadcast MediaBroadcast MediaPrint MediaPrint Media
Direct MailDirect Mail
Internet/InteractiveMedia
Internet/InteractiveMedia
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Point ofPurchase
Publicity
PublicRelations
DirectMarketing
InteractiveMarketing
SpecialEvents
Packaging
SalesPromotion
DirectResponse
Traditional Approach to Marketing Communications
MediaAdver-tising
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Contemporary IMC Approach
Point ofPurchase
Publicity
InteractiveMarketing
PublicRelations
DirectMarketing
SpecialEvents
PackagingSalesPromotion
DirectResponse
MediaAdver-tising
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
IMC and Branding
Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.
Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.
2003 Brand Value(Billions of Dollars)
1. Coca-Cola
$70.5
2. Microsoft
$65.1
3. IBM$51.8
4. GE $42.3
5. Intel
$31.1
6. Nokia
$29.4
7. Disney
$28.0
8. McDonald’s
$24.7
9. Marlboro
$22.2
10. Mercedes
$21.4
IMC plays a major role in the process of developing and sustaining brand identity and equity.
IMC plays a major role in the process of developing and sustaining brand identity and equity.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
IMC Builds Brands
Socially Responsible Communications
• Advertising and Sales Promotion• Avoid false and deceptive advertising• No bait-and-switch advertising• Trade promotions can not favor certain
customers over others• Use advertising to promote socially
responsible programs and actions
Goal 4: Understand methods for setting budgets and designing the mix
Socially Responsible Communications
• Personal Selling• Salespeople must follow the rules of “fair
competition”• Business-to-business selling
• Bribery, industrial espionage, and making false and disparaging statements about a competitor are forbidden
Goal 4: Understand methods for setting budgets and designing the mix
Product DevelopmentA commitment to IMC begins in the product development phase. Design the products to fit the image that have been conceived for them, and be honest in marketing communications in order to send a consistent message.
If you plan to focus on cost-leadership in your marketing campaigns, for example, design your products to use low-cost, reusable components and try to reduce the amount of materials used for each unit.
AdvertisingCreate advertisements to be true to products. If the products do not live up to the claims the company wishes to make of them, either go back to the product development drawing board or change marketing messages.
Do not let customers be discouraged when products do not live up to advertising hype.
Stages of Integrated Marketing Communication
PromotionsThe sales promotions should fit in line with the image of the company, products or brands. Do not offer coupons for products developed to high-quality standards with advertisements focused on luxury, for example, but make sure you always offer coupons for value-shopper brands.
Pricing and PackagingIt can be easy to assume that pricing and packaging have nothing to do with communication, but these crucial elements convey a wealth of subconscious and nonverbal information to consumers.
If you price your value brands too low, for example, you may run the risk of customers assuming your quality is lower than it really is.
If you use too much non-biodegradable packaging for eco-friendly brands, as another example, your actions may contradict your words.
Stages of Integrated Marketing Communication
Other Business Functions
The marketing function is not the only component of a business that sends messages to the public.
A commitment to IMC requires you to keep all other business functions in line with your marketing messages, as well.
If you proudly display the fact that your company sponsors human-rights organizations on packaging and in advertisements, for example, you must have a commitment to fair human resources practices and strict human rights requirements for foreign suppliers.
Everything you do, from accounting, to human resources to investment spending, has to send the same message about your company and brands as your marketing strategies.
Benefits of IMC
Although Integrated Marketing Communications requires a lot of effort it delivers many benefits.
It can create competitive advantage, boost sales and profits, while saving money, time and stress.
IMC wraps communications around customers and helps them move through the various stages of the buying process. The organisation simultaneously consolidates its image, develops a dialogue and nurtures its relationship with customers.
This 'Relationship Marketing' cements a bond of loyalty with customers which can protect them from the inevitable onslaught of competition. The ability to keep a customer for life is a powerful competitive advantage.
IMC also increases profits through increased effectiveness. At its most basic level, a unified message has more impact than a disjointed myriad of messages. In a busy world, a consistent, consolidated and crystal clear message has a better chance of cutting through the 'noise' of over five hundred commercial messages which bombard customers each and every day.
At another level, initial research suggests that images shared in advertising and direct mail boost both advertising awareness and mail shot responses. So IMC can boost sales by stretching messages across several communications tools to create more avenues for customers to become aware, aroused, and ultimately, to make a purchase
Carefully linked messages also help buyers by giving timely reminders, updated information and special offers which, when presented in a planned sequence, help them move comfortably through the stages of their buying process... and this reduces their 'misery of choice' in a complex and busy world.
IMC also makes messages more consistent and therefore more credible. This reduces risk in the mind of the buyer which, in turn, shortens the search process and helps to dictate the outcome of brand comparisons.
Un-integrated communications send disjointed messages which dilute the impact of the message. This may also confuse, frustrate and arouse anxiety in customers. On the other hand, integrated communications present a reassuring sense of order.
Here, customer databases can identify precisely which customers need what information when... and throughout their whole buying life.
Finally, IMC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature. Agency fees are reduced by using a single agency for all communications and even if there are several agencies, time is saved when meetings bring all the agencies together - for briefings, creative sessions, tactical or strategic planning. This reduces workload and subsequent stress levels - one of the many benefits of IMC.
Barriers to IMC
Despite its many benefits, Integrated Marketing Communications, or IMC, has many barriers.
In addition to the usual resistance to change and the special problems of communicating with a wide variety of target audiences, there are many other obstacles which restrict IMC. These include: Functional Silos; Stifled Creativity; Time Scale Conflicts and a lack of Management know-how.
Take functional silos. Rigid organisational structures are infested with managers who protect both their budgets and their power base.
Sadly, some organisational structures isolate communications, data, and even managers from each other. For example the PR department often doesn't report to marketing. The sales force rarely meet the advertising or sales promotion people and so on. Imagine what can happen when sales reps are not told about a new promotional offer!
And all of this can be aggravated by turf wars or internal power battles where specific managers resist having some of their decisions (and budgets) determined or even influenced by someone from another department.
Here are two difficult questions - What should a truly integrated marketing department look like? And how will it affect creativity?
It shouldn't matter whose creative idea it is, but often, it does. An advertising agency may not be so enthusiastic about developing a creative idea generated by, say, a PR or a direct marketing consultant.
IMC can restrict creativity. No more wild and wacky sales promotions unless they fit into the overall marketing communications strategy. The joy of rampant creativity may be stifled, but the creative challenge may be greater and ultimately more satisfying when operating within a tighter, integrated, creative brief.
Time Horizons provide one more barrier to IMC. For example, image advertising, designed to nurture the brand over the longer term, may conflict with shorter term advertising or sales promotions designed to boost quarterly sales. However the two objectives can be accommodated within an overall IMC if carefully planned.
. There is a proliferation of single discipline agencies. There appear to be very few people who have real experience of all the marketing communications disciplines. This lack of know how is then compounded by a lack of commitment.
Campaign Planning AndFashion Promotion
DEVELOPING AN ADVERTISING CAMPAIGN
EvaluateAdvertisingEffective-
ness
Select &Schedule
Media
DetermineAdvertising
Budget
DetermineAdvertisingObjectives
SelectTargetMarket
DesignCreativeStrategy
An Ideal Ad Campaign
• The right consumer is exposed to the message at the right time and place
• The ad causes consumer to pay attention
• The ad reflects consumer’s level of understanding and behaviors with product
• The ad correctly positions brand in terms of points-of-difference and points-of-parity
• The ad motivates consumers to consider purchase of the brand• The ad creates strong brand associations
ADVERTISING STRATEGYADVERTISING STRATEGY
• MESSAGE STRATEGIESObjective vs. Subjective MessagesComparative Message TechniquesEmotional Techniques: Mood, Fear, HumorCelebrity Endorsements vs. Non-Celebrity Images
• MEDIA STRATEGIESBroadcast: Television, RadioPrint: Newspapers, Magazines, JournalsSpecialized: Outdoor, Transit, Direct Mail, Internet
• MESSAGE STRATEGIESObjective vs. Subjective MessagesComparative Message TechniquesEmotional Techniques: Mood, Fear, HumorCelebrity Endorsements vs. Non-Celebrity Images
• MEDIA STRATEGIESBroadcast: Television, RadioPrint: Newspapers, Magazines, JournalsSpecialized: Outdoor, Transit, Direct Mail, Internet
ADVERTISING STRATEGYADVERTISING STRATEGY
• RELATIVE STRENGTHS AND WEAKNESSES OF STRATEGIESEffectiveness and Efficiency: Reach and
FrequencyTarget CapabilitiesCostBelievabilityAppropriateness for Message (Image, Details)
• RELATIVE STRENGTHS AND WEAKNESSES OF STRATEGIESEffectiveness and Efficiency: Reach and
FrequencyTarget CapabilitiesCostBelievabilityAppropriateness for Message (Image, Details)
Reach & Frequency
• Reach: number of different target consumers who are exposed to a message at least once during a specific period of time
• Frequency: number of times an individual is exposed to a given message during a specific period of time
• Cost per contact: cost of reaching one member of the target market• Allows comparison across advertising strategy
vehicles
EVALUATING ADVERTISING EFFECTIVENESS
PretestingPretesting
PosttestingPosttesting
Sales EffectivenessEvaluations
Sales EffectivenessEvaluations
Tools:•Focus Groups•Screening•Persuasion Scores
Tools:•Unaided Recall Tests•Aided Recall Tests•Inquiry Evaluations
Tools:•Monitor Sales
PUBLIC RELATIONS
Press RelationsPress
Relations
Product PromotionsProduct
PromotionsAdvising
ManagementAdvising
Management
CorporateCommunications
CorporateCommunicationsLobbying Lobbying
Public Relations Functions
Personal Selling
• PERSONAL SELLING• Oral presentation in a conversation with one or more
prospective purchasers for the purpose of making a sale
• Personal Selling is:Flexible, Focused (personalized), and Often results directly in a sale
• Other promotional elements move the customer toward the sale, personal selling closes the sale
STEPS IN THE SELLING PROCESS: A RELATIONSHIP APPROACH
STEPS IN THE SELLING PROCESS: A RELATIONSHIP APPROACH
• INITIATING RELATIONSHIPSProspectingPre-Call PlanningApproach
• DEVELOPING CUSTOMER RELATIONSHIPSSales Communications and PresentationsGaining and Managing Commitment
• ENHANCING CUSTOMER RELATIONSHIPSFollow-UpSupport
• TRADITIONAL vs. RELATIONSHIP APPROACHES• Manipulative (product-focused) vs Consultative (needs-satisfaction)
• INITIATING RELATIONSHIPSProspectingPre-Call PlanningApproach
• DEVELOPING CUSTOMER RELATIONSHIPSSales Communications and PresentationsGaining and Managing Commitment
• ENHANCING CUSTOMER RELATIONSHIPSFollow-UpSupport
• TRADITIONAL vs. RELATIONSHIP APPROACHES• Manipulative (product-focused) vs Consultative (needs-satisfaction)
SALES MANAGEMENT ISSUESSALES MANAGEMENT ISSUES
• RECRUITING AND HIRINGDifficult to Predict Success
• DEPLOYMENTTerritory Design
• AUTOMATIONUse of Technology to Link Buyer, Salesperson, and
Organizations (Customer Relationship Management and Supply Chain Management)
• EVALUATION AND COMPENSATIONOutcome-Based vs. Behavior-Based
• RECRUITING AND HIRINGDifficult to Predict Success
• DEPLOYMENTTerritory Design
• AUTOMATIONUse of Technology to Link Buyer, Salesperson, and
Organizations (Customer Relationship Management and Supply Chain Management)
• EVALUATION AND COMPENSATIONOutcome-Based vs. Behavior-Based
Sales Promotion
• SALES PROMOTION• Those marketing activities - other than
advertising, public relations/publicity, and personal selling - that stimulate consumer purchasing and dealer effectiveness• Displays, shows and exhibitions,
coupons, contests, samples
• Consumer-oriented
• [For end-users]
• Trade-oriented• [For resellers]
Sales Promotion Tools
EventsEvents
Loyalty ProgramsLoyalty Programs
Bonus Packs Bonus Packs
Refunds/Rebates Refunds/Rebates
Contests/SweepstakesContests/Sweepstakes
PremiumsPremiums
SamplesSamples
CouponsCoupons
CoopAdvertisingCoopAdvertising
TradeShowsTradeShows
TrainingProgramsTrainingPrograms
POP DisplaysPOP Displays
TradeAllowances
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
StimulateTrial
StimulateTrial
SupportFlexible Pricing
SupportFlexible Pricing
IncreaseConsumption
IncreaseConsumption
NeutralizeCompetitorsNeutralize
Competitors
ComplementaryProducts
ComplementaryProducts
EncourageRepurchaseEncourage
Repurchase
ImpulsePurchasing
ImpulsePurchasing
OBJECTIVES OF CONSUMER PROMOTIONS
CONSUMER SALES PROMOTION TECHNIQUES
Price Deals
AdvertisingSpecialties Coupons
Sampling Rebates
Contests, Games,Sweepstakes
Premiums Cross-Promotions
OBJECTIVES OF TRADE PROMOTIONS
Increase ResellerInventory
InfluencePrice Discount
Defend AgainstCompetitors
Avoid PriceReductions
InfluenceReseller Promotion
Gain/MaintainDistribution
Increase ResellerInventory
InfluencePrice Discount
Defend AgainstCompetitors
Avoid PriceReductions
InfluenceReseller Promotion
Gain/MaintainDistribution
LIMITATIONS OF SALES PROMOTION
Cannot Reverse Declining Sales Trend
Cannot Reverse Declining Sales Trend
Cannot Overcome Inferior Product
Cannot Overcome Inferior Product
May Encourage Competitive Retaliation
May Encourage Competitive Retaliation
May Hurt ProfitMay Hurt Profit
Direct Marketing
• Techniques used to get consumers to make a purchase from their home, office or other nonretail setting• Direct mail, catalogs, mail order,
telemarketing, electronic retailing
TECHNIQUES OF DIRECT MARKETING
ElectronicMedia
ElectronicMedia
Direct SellingDirect Selling
PrintMedia
PrintMedia
BroadcastMedia
BroadcastMedia
Direct MailDirect Mail
TelemarketingTelemarketing
CataloguesCatalogues
Builds and Maintains Customer Relationships
Builds and Maintains Customer Relationships
Obtains Customer Database Information
Obtains Customer Database Information
Communicates and Interacts With Buyers
Communicates and Interacts With Buyers
Provides Customer Service and Support
Provides Customer Service and Support
Educates or Informs Customers
Educates or Informs Customers
A Persuasive Advertising Medium
A Persuasive Advertising Medium
A Sales Tool or an Actual Sales Vehicle
A Sales Tool or an Actual Sales Vehicle
Obtains Customer Database Information
Obtains Customer Database Information
Communicates and Interacts With Buyers
Communicates and Interacts With Buyers
Provides Customer Service and Support
Provides Customer Service and Support
Educates or Informs Customers
Educates or Informs Customers
A Persuasive Advertising Medium
A Persuasive Advertising Medium
A Sales Tool or an Actual Sales Vehicle
A Sales Tool or an Actual Sales Vehicle
Using the Internet as an IMC Tool
TheInternetTheInternet
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Introduce New ProductsIntroduce New Products
Get Existing Customers to Buy More
Get Existing Customers to Buy More
Attract New Customers
Attract New Customers
Maintain Sales In Off Season
Maintain Sales In Off Season
Increase Retail Inventories
Increase Retail Inventories
Tie In Advertising & Personal SellingTie In Advertising & Personal Selling
Enhance Personal Selling
Enhance Personal Selling
Combat Competition
Combat Competition
Introduce New ProductsIntroduce New Products
Get Existing Customers to Buy More
Get Existing Customers to Buy More
Attract New Customers
Attract New Customers
Maintain Sales In Off Season
Maintain Sales In Off Season
Increase Retail Inventories
Increase Retail Inventories
Tie In Advertising & Personal SellingTie In Advertising & Personal Selling
Enhance Personal Selling
Enhance Personal Selling
Various Uses of Sales Promotion
SalesPromotionSalesPromotion
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising Versus Publicity
AdvertisingAdvertising PublicityPublicity
TentativeTentative
LowLow
Low/Unspecified Low/Unspecified
Uncontrollable Uncontrollable
GreatGreat
LowerLower
Measurable Measurable
SchedulableSchedulable
High/Specific High/Specific
HighHigh
SpecifiableSpecifiable
UndeterminedUndetermined
HigherHigher
LittleLittle
FactorFactor
ControlControl
CredibilityCredibility
ReachReach
FrequencyFrequency
CostCost
FlexibilityFlexibility
TimingTiming
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
InterviewsInterviewsInterviews Interviews
FeatureArticlesFeatureArticles
SpecialEventsSpecialEvents
PressConferences
PressConferences
NewsReleasesNewsReleases
FeatureArticlesFeatureArticles
SpecialEventsSpecialEvents
NewsReleasesNewsReleases
Publicity Vehicles
PublicityVehiclesPublicityVehicles
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Corporate AdvertisingCorporate Advertising
Cause-related MarketingCause-related Marketing
PublicityVehicles
CommunityActivities
Public AffairsActivities
SpecialPublications
Special EventSponsorship
PublicityVehicles
CommunityActivities
Public AffairsActivities
SpecialPublications
Public Relations Tools
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Integrated Marketing Communications Planning Model
Promotional Program Situation Analysis
Analysis of the Communications Process
Budget Determination
Develop Integrated Marketing Communications Programs
Review of Marketing Plan
AdvertisingSalesPromotion
PR/Publicity
PersonalSelling
DirectMarketing
AdvertisingObjectives
SalesPromotionObjectives
PR/PublicityObjectives
PersonalSellingObjectives
DirectMarketingObjectives
MessageStrategy
SalesPromotionStrategy
PR/PublicityStrategy
PersonalSellingStrategy
DirectMarketingStrategy
Integration & Implementation of Marketing Communications Strategies
Monitor, Evaluate & Control Promotional Program
Internet/Interactive
Internet/InteractiveObjectives
Internet/InteractiveStrategy
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
1. A detailed situation analysis1. A detailed situation analysis
2. Specific marketing objectives2. Specific marketing objectives
3. A marketing strategy and program3. A marketing strategy and program
4. A program for implementing the strategy4. A program for implementing the strategy
5. A process for monitoring and evaluating performance5. A process for monitoring and evaluating performance
1. A detailed situation analysis1. A detailed situation analysis
3. A marketing strategy and program3. A marketing strategy and program
4. A program for implementing the strategy4. A program for implementing the strategy
2. Specific marketing objectives2. Specific marketing objectives
The Marketing Plan
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Steps in Developing Effective Communications
Identify target audience
Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Measure results/ manage IMC
Developing Effective Marketing 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
Developing Effective Marketing Communications
• 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
AIDA and the Promotional Mix
AwarenessAwarenessAwarenessAwareness InterestInterestInterestInterest DesireDesireDesireDesire ActionActionActionAction
AdvertisingAdvertisingVeryeffective
Veryeffective
Somewhateffective
NoteffectiveNoteffective
PublicPublicRelationsRelationsPublicPublicRelationsRelations
VeryeffectiveVeryeffective
VeryeffectiveVeryeffective
VeryeffectiveVeryeffective
NoteffectiveNoteffective
SalesSalesPromotionPromotion
Somewhateffective
Somewhateffective
Veryeffective
VeryeffectiveVeryeffective
PersonalPersonalSellingSelling
Somewhateffective
Veryeffective
Veryeffective
SomewhateffectiveSomewhateffective
Response Hierarchy Models
Developing Effective Marketing Communications
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
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 17-68
Creative Strategy
• Informational and transformational appeals• Positive and negative appeals
• Fear• Guilt• Shame• Humor• Love• Pride• Joy
Developing Effective Marketing Communications
Message Design
• Content
• Structure
• Format
• Source
• One-sided vs. two-sided messages
• Order of argument presentation
Developing Effective Marketing Communications
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
Developing Effective Marketing Communications
Message Design
• Content
• Structure
• Format
• Source
• Message source characteristics can influence attention and recall
• Factors underlying perceptions of source credibility:• Expertise• Trustworthiness• Likability
Message Source
Celebrity Characteristics• Expertise• Trustworthiness• Likeability
Developing Effective Marketing Communications
• Step 4: Selecting Communication Channels• Personal communication channels
• Effectiveness derives from personalization and feedback
• Several methods of stimulating personal communication channels exist
• Nonpersonal communication channels• Influence derives from two-step flow-of-
communication process
Developing Effective Marketing Communications
• 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
Select Communication Channels
• Personal channels
• Nonpersonal channels
• Integration of channels
Personal Communications Channels
Advocate channels
Expert channels
Social channels
Nonpersonal Communication Channels
Media
Sales Promotion
Events and Experiences
Public Relations
Developing Effective Marketing Communications
• 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
Establish the Budget
Affordable
Percentage-of-Sales
Competitive Parity
Objective-and-Task
Approaches to Determining the Promotional Budget
• Percentage of sales• A fixed amount of money per past or projected
sales• Probably the most widely used as it is simple• But, what about cause and effect?
• All available funds/All you can afford• Budget what is left over for promotional
expenditures• New companies often put all available funds into
promotion to penetrate the market• But, you can miss opportunities or overspend
Approaches to Determining the Promotional Budget
• Competitive parity/Follow the competition• Adopt the average ratio for promotional expenses
to sales for the industry or main competitor; or the same absolute amount as a competitor
• But, what if they do not know what they are doing and/or strategies and tactics are different?
• Objective and task• 1) Determine objectives; 2) Determine relationship
between expenditures and ability to achieve objective; 3) Set a budget that allows the achievement of these goals
Developing Effective Marketing Communications
Communications Mix Selection
• Types of promotional tools
• Selection factors
• Advertising• Sales promotion• Public relations and
publicity• Direct marketing• Personal selling
Characteristics of The Marketing Communications Mix
Advertising• Pervasiveness• Amplified
expressiveness• Impersonality
Sales Promotion• Communication• Incentive• Invitation
Characteristics of the Marketing Communications Mix
Public Relations and Publicity
• High credibility• Ability to catch
buyers off guard• Dramatization
Events and Experiences
• Relevant• Involving• Implicit
Characteristics of the Marketing Communications Mix
Direct Marketing• Customized• Up-to-date• Interactive
Personal Selling• Personal interaction• Cultivation• Response
Word-of-Mouth Marketing• Credible• Personal• Timely
Developing Effective Marketing Communications
Communications Mix Selection
• Types of promotional tools
• Selection factors
• Stage of buyer readiness
• Stage of product life cycle
Factors Affecting the Promotional Mix
Nature of ProductNature of Product
Stage in PLCStage in PLC
Target Market FactorsTarget Market Factors
Type of Buying DecisionType of Buying Decision
Promotion FundsPromotion Funds
Push or Pull StrategyPush or Pull Strategy
Factors Factors AffectingAffectingChoice of Choice of Promotional MixPromotional Mix
Factors Factors AffectingAffectingChoice of Choice of Promotional MixPromotional Mix
Buyer Readiness StageBuyer Readiness Stage
Consumer vs. business market
THE MARKETING-COMMUNICATIONS MIX:Relative Emphasis in Consumer and Business Markets
BUSINESS MARKETS CONSUMER MARKETS
SALESFORCE
SALESFORCE
ADVERTISINGPROMOTIONSDIRECT MKT.
ADVERTISINGPROMOTIONSDIRECT MKT.
EMPHASIS EMPHASIS
COMPLEMENT
Nature of the Product
• Product characteristics • Business product vs. consumer product
• Costs and risks
• Social risk
Factors that influence promotional mixFactors that influence promotional mix
Selection of the Promotional Mix
• PRODUCT CHARACTERISTICS• Industrial good/technical good
• Need personal selling; customers want to receive information, inspect and compare the products
• Consumer package goods/frequently purchase items
• Advertising and sales promotion to reach market• Unit value
• Low cost must use mass media approaches, with high unit cost personal selling is effective
• Customization• Customized often requires personal selling
Stage in the Product Life Cycle
TimeTime
IntroductionIntroduction GrowthGrowth
MaturityMaturity
DeclineDecline
Sal
es (
$)S
ales
($)
Product Life Cycle and thePromotional Mix
Light Advertising, pre-introductionPublicity
Heavy use of advertising,PR forawareness;sales promotionfor trial
AD/PRdecreaseLimited Sales Promotion, Personal Selling fordistribution
Ads decrease.Sales Promotion,Personal SellingReminder & Persuasive
Advertising, PR, BrandloyaltyPersonal Selling fordistribution
IntroductionIntroduction GrowthGrowth
MaturityMaturityDeclineDecline
Sal
es (
$)S
ales
($)
TimeTime
Target Market Characteristics
FOR:
• Widely scattered market
• Informed buyers
• Repeat buyersAdvertising
Sales Promotion
Less Personal Selling
Selection of the Promotional Mix
• CUSTOMER CHARACTERISTCS• Industrial versus consumer market
• Consumers are easier to reach (decision maker) through media sources; industrial buyers typically have a more formal buying process, requiring personal selling
• Number of customers• For a small number of customers, personal selling can
play a much more important role• Geographical dispersion
• Not only affects the type of promotional effort, but the media choices
Type of Buying Decision
Advertising
Sales PromotionType ofType ofBuying DecisionBuying DecisionaffectsaffectsPromotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying DecisionaffectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplexComplexComplex
RoutineRoutineRoutineRoutine
Personal Selling
Not RoutineNot Routineor Complexor Complex
Not RoutineNot Routineor Complexor Complex
Advertising
Public Relations
Available Funds
• Trade-offs with funds available
• Number of people in target market
• Quality of communication needed
• Relative costs of promotional elements
Push and Pull Strategies
ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler
ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler
Wholesaler Wholesaler promotes to promotes to retailerretailer
Wholesaler Wholesaler promotes to promotes to retailerretailer
Retailer Retailer promotes topromotes toconsumerconsumer
Retailer Retailer promotes topromotes toconsumerconsumer
ConsumerConsumerbuys frombuys fromretailerretailer
ConsumerConsumerbuys frombuys fromretailerretailer
PUSH STRATEGYPUSH STRATEGY
Orders to manufacturer
ManufacturerManufacturerpromotes to promotes to consumerconsumer
ManufacturerManufacturerpromotes to promotes to consumerconsumer
Consumer Consumer demands demands productproductfrom retailerfrom retailer
Consumer Consumer demands demands productproductfrom retailerfrom retailer
Retailer Retailer demands demands productproductfrom wholesalerfrom wholesaler
Retailer Retailer demands demands productproductfrom wholesalerfrom wholesaler
Wholesaler Wholesaler demandsdemandsproduct fromproduct frommanufacturermanufacturer
Wholesaler Wholesaler demandsdemandsproduct fromproduct frommanufacturermanufacturer
Orders to manufacturer
PULL STRATEGYPULL STRATEGY
Figure 17.5 Cost Effectiveness by Buyer Readiness Stage
Figure 17.6 Current Consumer States for Two Brands
Developing Effective Marketing Communications
• 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 Advertising Campaign
The Five Ms of Advertising
• Mission• Money• Message• Media• Measurement
• Objectives can be classified by aim:• Inform• Persuade• Remind• Reinforce
Developing and Managing the Advertising Campaign
• Factors considered when budget-setting:• Stage of product life
cycle• Market share and
consumer base• Competition and clutter• Advertising frequency• Product substitutability
The Five Ms of Advertising
• Mission• Money• Message• Media• Measurement
Developing and Managing the Advertising Campaign
• Factors considered when choosing the advertising message:• Message generation• Message evaluation
and selection• Message execution• Social responsibility
review
The Five Ms of Advertising
• Mission• Money• Message• Media• Measurement
Developing and Managing the Advertising Campaign
• Developing media strategy involves:• Deciding on reach,
frequency, and impact • Selecting media and
vehicles• Determining media
timing• Deciding on
geographical media allocation
The Five Ms of Advertising
• Mission• Money• Message• Media• Measurement
Developing and Managing the Advertising Campaign
• Newspapers• Television• Direct mail• Radio• Magazines
• Outdoor• Yellow pages• Newsletters• Brochures • Telephone
Internet
Major Media Types
Developing and Managing the Advertising Campaign
• 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
Developing and Managing the Advertising Campaign
• Evaluating advertising effectiveness• Communication-
effect research• Sales-effect
research
The Five Ms of Advertising
• Mission• Money• Message• Media• Measurement
Issues Facing Global Adaptations
• Is the product restricted in some countries?
• Are there restrictions on advertising the product to a specific target market?
• Can comparative ads be used?
• Can the same advertising be used in all country markets?