1

Chapter 14

Integrated Marketing Communication Strategy

2

Marketing Communication Mix or Promotion Mix

Product’s Design

Product’s Price

Product’s

Package

Stores that Sell the Product

3

The Changing Communications Environment

Two Factors are Changing the Face of Today’s

Marketing Communications:

Improvements in Information Technology

Has Led to Segmented MarketingMore Narrowcasting

Marketers Have ShiftedAway From Mass

MarketingLess Broadcasting

Mark

et

Fragm

en

tati

on L

ed

to

Media

Fra

gm

enta

tion

4

The Need for Integrated Marketing Communications

With Integrated Marketing Communications (IMC), the Company Carefully Integrates and Coordinates Its Many Communications Channels to Deliver a Clear, Consistent, and

Compelling Message About the Organization and Its Product or

Service.

5

PresellingPreselling SellingSelling

Post-Consumption

Post-Consumption ConsumingConsuming

Marketers View Communications as the Management of the Customer Relationship Over Time Through the Following Stages:

A View of the Communications Process

6

Elements in the Communication Process (Fig. 14.2)

7

Sellers Need to Know What Audiences

They Wish to Reach and Response

Desired.

Sellers Need to Know What Audiences

They Wish to Reach and Response

Desired.

Sellers Must be Good at Encoding MessagesThat Target Audience

Can Decode.

Sellers Must be Good at Encoding MessagesThat Target Audience

Can Decode.

Key Factors in Good Communication

Sellers Must Send Messages Through Media that Reach Target Audiences

Sellers Must Send Messages Through Media that Reach Target Audiences

Sellers Must DevelopFeedback Channels to

Assess Audience’sResponse to

Messages.

Sellers Must DevelopFeedback Channels to

Assess Audience’sResponse to

Messages.

8

Step 1. Identifying the Target Audience

Step 2. Determining the Communication ObjectivesBuyer Readiness Stages

PurchasePurchase

Conviction

Preference

Liking

Knowledge

Awareness

Steps in Developing Effective Communication

This ad for the Toyota Celicamay be able to cover the firstthree stages of the buyer-readiness s tages : awareness,knowledge, and liking.

There is no mention ofcompetitors , so it does notseem to establish preference.

9

Step 3. Designing a Message

Message ContentRational Appeals

Emotional AppealsMoral Appeals

Message StructureDraw ConclusionsArgument TypeArgument Order

Message FormatHeadline, Illustration,

Copy, & ColorBody Language

Steps in Developing Effective Communication

Designing aMessage

ContentThe pictures and the slogan make this whattype of appeal?

FormatThis layout, almost like a yearbook or photoalbum, reinforces the sentimental aspect of this advertisement.

Click or press spacebar to return.

Is this ad making an emotional,rational, or moral appeal, or is itcombining them? How muchdo the personified cowscontribute to this ad?

Is the ad structured to let the audience make a decision?

Is this an effective ad?

The same company puts lifelikestatues of cows, with this slogan,into mall food courts. Whatmakes that practice effective?

10

Nonpersonal CommunicationChannels

Step 4. Choosing Media

Personal CommunicationChannels

Step 5. Selecting the Message Source

Step 6. Collecting Feedback

Steps in Developing Effective Communication

11

Affordable Based on What the

Company Can Afford

Objective-and-Task Based on Determining

Objectives & Tasks, Then Estimating Costs

Objective-and-Task Based on Determining

Objectives & Tasks, Then Estimating Costs

Percentage of SalesBased on a Certain Percentageof Current or Forecasted Sales

Percentage of SalesBased on a Certain Percentageof Current or Forecasted Sales

Competitive-ParityBased on the Competitor’s

Promotion Budget

Competitive-ParityBased on the Competitor’s

Promotion Budget

One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on

Promotion.

Setting the Total Promotion Budget

12

Advertising Advertising

Personal Selling

Personal Selling

SalesPromotion

SalesPromotion

PublicRelations

PublicRelations

DirectMarketing

DirectMarketing

Reach Many Buyers, Repeat Message Many Times, Impersonal,

Expensive

Reach Many Buyers, Repeat Message Many Times, Impersonal,

Expensive

Personal Interaction, Relationship Building, Most Expensive Promo

Tool

Personal Interaction, Relationship Building, Most Expensive Promo

Tool

Wide Assortment of Tools, Rewards Quick Response, Efforts

Short-Lived

Wide Assortment of Tools, Rewards Quick Response, Efforts

Short-Lived

Very Believable, Dramatize a Company or Product,

Underutilized

Very Believable, Dramatize a Company or Product,

Underutilized

Nonpublic, Immediate, Customized, InteractiveNonpublic, Immediate, Customized, Interactive

Setting the Promotion Mix

13

Strategy that Calls for Spending A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand.

Strategy Selected Depends

on:

Type of Product-Market &

Product Life-Cycle

Stage

Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels.

Promotion Mix Strategies

14

Discussion Connections

Describe the promotion mix of a company like Kellogg, Coca-Cola, Campbell, or some other consumer goods producer. What pull promotion elements does the

company use? What push elements? Are the company’s communications

well integrated?

15

Socially Responsible Marketing Communication

Advertising and Sales Promotion Companies must avoid false and deceptive

advertising. Sellers must avoid bait-and-switch

advertising. Trade promotion activities are also closely

regulated.

Personal Selling Salespeople must follow the rules of “fair

competition”. Three-day cooling-off rule Salespeople must not disparage competitors.

16

Review of Concept Connections

Name and define the tools of the marketing communication mix.Discuss the process and advantages of integrated marketing communication.Outline the steps in developing effective marketing communications.Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix.

17

Chapter 15

Advertising, Sales Promotion, and Public Relations

18

Advertising

Advertising is centuries old.U.S. advertisers spend in excess of $212 billion each year; worldwide spending exceeds $414 billion.Advertising is used by: Business firms, Nonprofit organizations, Professionals, and Social agencies.

19

What is Advertising?

Advertising is Any Paid Form of Nonpersonal

Presentation and Promotion of Ideas, Goods, or Services by an Identified

Sponsor.

20

Major Advertising Decisions (Fig. 15.1)

Objectives Setting

•Communication objectives

•Sales Objectives

Budget Decisions•Affordable Approach•Percent of sales•Competitive parity•Objective and task

Message Decisions•Message Strategy

•Message Execution

Media Decisions•Reach, Frequency, Impact

•Major Media Types•Specific Media Types

•Media Timing

Campaign Evaluation•Communication Impact

•Sales Impact

21

Informative AdvertisingInform Consumers or Build Primary Demand

i.e CD Players

Comparison Advertising

Compares One Brand to Another

i.e. Avis vs. Hertz

Persuasive AdvertisingBuild Selective Demand

i.e Sony CD Players

Reminder AdvertisingKeeps Consumers Thinking

About a Producti.e. Coca-Cola

Advertising ObjectiveSpecific Communication Task Accomplished with a Specific

Target Audience During a Specific Period of Time

Setting Advertising Objectives

22

Creating the Advertising

Messages

Selecting the Advertising Media

Advertising Strategy Consists of Two Major Elements and Companies are Realizing the

Benefits of Planning These Two Elements Jointly.

Developing Advertising Strategy

23

Plan a Message StrategyGeneral Message to Be Communicated to Customers

Develop a Message Focus on

Customer Benefits

Develop a Message Focus on

Customer Benefits Creative Concept“Big Idea”

Visualization or PhraseCombination of Both

Creative Concept“Big Idea”

Visualization or PhraseCombination of Both

Advertising AppealsMeaningfulBelievableDistinctive

Advertising AppealsMeaningfulBelievableDistinctive

Developing Advertising Strategy: Creating Ad Messages

24

TypicalMessage

ExecutionStyles

Testimonial EvidenceTestimonial Evidence Slice of LifeSlice of Life

Scientific EvidenceScientific Evidence LifestyleLifestyle

Technical ExpertiseTechnical Expertise FantasyFantasy

MusicalMusical

Personality SymbolPersonality Symbol Mood or ImageMood or Image

Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and

Interest.

Developing Advertising Strategy: Message Execution

What type of message execution do these two ads employ?

Message Executi on

In both cases, what dis tinguishes the product from theres t of the ad?

Click or p ress spacebar to retu rn.

25

Step 1. Decide on Reach, Frequency, and Impact

Step 2. Choosing Among Major Media TypesMedia Habits of Target Consumers,

Nature of the Product, Types of Message, Cost

Step 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. Magazines.

Must Balance Media Cost Against Media Factors:Audience Quality & Attention, Editorial Quality

Step 4. Deciding on Media TimingScheduling of Advertising Over the Course of a Year

Pattern of Ads: Continuity or Pulsing

Advertising Strategy:Selecting Advertising Media

26

Communication Effects

Is the Ad Communicating Well?

Communication Effects

Is the Ad Communicating Well?

Advertising Program Evaluation

Sales Effects

Is the Ad Increasing Sales?

Sales Effects

Is the Ad Increasing Sales?

Evaluating Advertising

27

Discussion Connections

Advertising objectives can be classified by primary purpose: to inform, persuade, or remind.Using your local newspaper, find examples of ads pursuing each of the above.Apply Table 15.1 to explain your answers.

28

What is Sales Promotion ?

Sales Promotion is a Mass Communication Technique

That Offers Short-Term Incentives to Encourage

Purchase or Sales of a Product or Service.

Offers Reasons to Buy Now.

29

Rapid Growth of Sales Promotion

Sales promotion can take the form of consumer promotions, business promotions, trade promotions or sales force promotions.Rapid growth in the industry has been achieved because: Product managers are facing more pressure to

increase their current sales, Companies face more competition, Advertising efficiency has declined, Consumers have become more deal oriented.

30

Sales Promotion Objectives

Increase short-term sales or help build long-term market share.Get retailers to: carry new items and more inventory, advertise products, give products more shelf space, and buy product ahead.

In general, sales promotion should focus on consumer relationship building.

31

SampleSample

CouponsCoupons

Cash RefundsCash Refunds

Price PacksPrice Packs

PremiumsPremiums

Advertising Specialties

Advertising Specialties

Trial amount of a productTrial amount of a product

Savings when purchasing specified products

Savings when purchasing specified products

Refund of part of the purchase priceRefund of part of the purchase price

Reduced prices marked on the label or package

Reduced prices marked on the label or package

Goods offered free or low cost as an incentive to buy a product

Goods offered free or low cost as an incentive to buy a product

Articles imprinted with an advertiser’s name given as gifts

Articles imprinted with an advertiser’s name given as gifts

Major Consumer Sales Promotion Tools

32

Patronage RewardsPatronage Rewards

Point-of-PurchasePoint-of-Purchase

ContestsContests

SweepstakesSweepstakes

GameGame

Cash or other rewards for the use of a certain product

Cash or other rewards for the use of a certain product

Displays and demonstrations that take place at the point of sale

Displays and demonstrations that take place at the point of sale

Consumers submit an entry to be judged

Consumers submit an entry to be judged

Consumers submit their names for a drawing

Consumers submit their names for a drawing

Presents consumers with something every time they buy

Presents consumers with something every time they buy

Major Consumer Sales Promotion Tools

33

Trade-Promotion Objectives

Persuade Retailers or Wholesalers to Carry a Brand

Persuade Retailers or Wholesalers to Carry a Brand

Give a Brand Shelf SpaceGive a Brand Shelf Space

Promote a Brand in Advertising

Promote a Brand in Advertising

Push a Brand to ConsumersPush a Brand to Consumers

Major Trade Sales Promotion Tools

Trade-Promotion Tools

DiscountsDiscounts

AllowancesAllowances

Sales Promotion

This K ibble s ‘n Bit spromotion offeredpet owners a chanceto see their dogs ina commercial.

Which of the fourobj ectives does thistype of promoti onfulfill?

34

Decide on the Size of the IncentiveDecide on the Size of the Incentive

Set Conditions for ParticipationSet Conditions for Participation

Evaluate the ProgramEvaluate the Program

Determine How to Promote andDistribute the Promotion Program Determine How to Promote and

Distribute the Promotion Program

Determine the Length of the ProgramDetermine the Length of the Program

Developing the Sales Promotion Program

35

What is Public Relations?

Public Relations Involves 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.

36

Press Relations or AgentryPress Relations or Agentry

Product PublicityProduct Publicity

Public AffairsPublic Affairs

LobbyingLobbying

Investor RelationsInvestor Relations

DevelopmentDevelopment

Public Relations Departments May Perform Any of All of the Following

Functions:

Major Public Relations Functions

37

News

Speeches

Special Events

Written MaterialsAudiovisual

Materials

Corporate Identity

Materials

Public Service

Activities

Web Site

Major Public Relations Tools

38

Setting Public Relations ObjectivesSetting Public Relations Objectives

Choosing the Public Relations Messages and Vehicles

Choosing the Public Relations Messages and Vehicles

Implementing the Public Relations PlanImplementing the Public Relations Plan

Evaluating Public Relations ResultsEvaluating Public Relations Results

Major Public Relations Decisions

39

Review of Concept Connections

Define the roles of advertising, sales promotion, and public relations in the promotion mix.Describe the major decisions involved in developing an advertising program.Explain how sales promotion campaigns are developed and implemented.Explain how companies use public relations to communicate with their publics.