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Unformatted text preview: Integrated Marketing Integrated Marketing Communication Strategy
Chapter 15 Objectives
• Know the tools of the marketing communications mix. • Understand the process and advantages of integrated marketing communications. • Learn the steps in developing effective marketing communications. • Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.
15 2 Case Study
• UPS is a $31 • Implemented, “What billion corporate Can Brown Do for giant You?” campaign • UPS wanted to • Realigned its sales reposition itself as and marketing organization a supply chain solutions provider • Ads, web sites, and salespeople deliver • Developed new theme based on message daily 15 3 Definition
• Marketing Communications Mix The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives. 15 4 Integrated Marketing Communications
• The Marketing Communications Environment is Changing: Mass markets have fragmented, causing marketers to shift away from mass marketing Improvements in information technology are facilitating segmentation
15 5 Media fragmentation is increasing as well 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
15 6 Integrated Marketing Communications
• The Need for Integrated Marketing Communications The Web alone cannot be used to build brands; brand awareness potential is limited Best bet is to wed traditional branding efforts with the interactivity and service capabilities of online communications Web efforts can enhance relationships 15 7 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 implementation often requires the hiring of a MarCom manager.
15 8 • Communications efforts should be viewed from the perspective of managing customer relationships over time. • The communication process begins with an audit of all potential contacts. • Effective communication requires knowledge of how communication works. The Communication Process 15 9 The Communication Process
Elements in the Communication Process • Sender • Message • Media • Receiver • Noise • Encoding • Decoding • Response • Feedback
15 10 Developing Effective Communication
• Step 1: Identifying the Target Audience Affects decisions related to what, how, when, and where message will be said, as well as who will say it • Step 2: Determining Communication Objectives Six buyer readiness stages
15 11 Developing Effective Communication
BuyerReadiness Stages • Awareness • Knowledge • Liking • Preference • Conviction • Purchase
15 12 Developing Effective Communication
• Step 3: Designing a Message AIDA framework guides message design Message content contains appeals or themes designed to produce desired results Rational appeals Emotional appeals Moral appeals – Love, pride, joy, humor, fear, guilt, shame
15 13 Developing Effective Communication
• Step 3: Designing a Message Whether or not to draw a conclusion Onesided vs. twosided argument Order of argument presentation Message Structure: Key decisions are required with respect to three message structure issues: Message Format: Design, layout, copy, color, shape, movement, words, sounds, voice, body language, dress, etc.
15 14 Developing Effective Communication
• Step 4: Choosing Media Personal communication channels Includes facetoface, phone, mail, and Nonpersonal communication channels Includes media, atmosphere, and events Internet chat communications Wordofmouth influence is often critical Buzz marketing cultivates opinion leaders 15 15 • Step 5: Selecting the Message Source Developing Effective Communication Highly credible sources are more persuasive A poor spokesperson can tarnish a brand Recognition, recall, and behavioral measures are assessed May suggest changes in product/promotion • Step 6: Collecting Feedback 15 16 Setting the Promotional Budget and Mix
• Setting the Total Promotional Budget Affordability Method
afford Budget is set at a level that a company can PercentageofSales Method CompetitiveParity Method Past or forecasted sales may be used Budget matches competitors’ outlays
15 17 Setting the Promotional Budget and Mix
• Setting the Total Promotional Budget ObjectiveandTask Method Specific objectives are defined Tasks required to achieve objectives are determined Costs of performing tasks are estimated, then summed to create the promotional budget
15 18 Setting the Promotional Budget and Mix
• Setting the Overall Promotion Mix Determined by the nature of each promotion tool and the selected promotion mix strategy 15 19 Setting the Promotional Budget and Mix
• Advertising Promotion Tools • • • • • • • Personal Selling • Sales Promotion • Public Relations • Direct Marketing Reaches large, geographically dispersed audiences, often with high frequency Low cost per exposure, though overall costs are high Consumers perceive advertised goods as more legitimate Dramatizes company/brand Builds brand image; may stimulate shortterm sales Impersonal; oneway communication
15 20 Setting the Promotional Budget and Mix
• Advertising Promotion Tools • • • • • • Most effective tool for building buyers’ preferences, convictions, and actions Personal interaction allows for feedback and adjustments Relationshiporiented Buyers are more attentive Sales force represents a long term commitment Most expensive of the promotional tools
15 21 • Personal Selling • Sales Promotion • Public Relations • Direct Marketing Setting the Promotional Budget and Mix
• Advertising Promotion Tools • • • • Personal Selling • Sales Promotion • Public Relations • Direct Marketing • • • May be targeted at the trade or ultimate consumer Makes use of a variety of formats: premiums, coupons, contests, etc. Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales Stimulates quick response Shortlived Not effective at building long term brand preferences
15 22 Setting the Promotional Budget and Mix
• Advertising Promotion Tools • • • • • Highly credible Many forms: news stories, news features, events and sponsorships, etc. Reaches many prospects missed via other forms of promotion Dramatizes company or benefits Often the most underused element in the promotional mix
15 23 • Personal Selling • Sales Promotion • Public Relations • Direct Marketing Setting the Promotional Budget and Mix
• Advertising Promotion Tools • Personal Selling • Sales Promotion • Public Relations • Direct Marketing • Many forms: Telephone marketing, direct mail, online marketing, etc. • Four distinctive characteristics: Nonpublic Immediate Customized Interactive • Wellsuited to highly targeted marketing efforts 15 24 Setting the Promotional Budget and Mix
• Promotion Mix Strategies Push strategy: trade promotions and personal selling efforts push the product through the distribution channels. Pull strategy: producers use advertising and consumer sales promotions to generate strong consumer demand for products.
15 25 • Checklist: Integrating the Promotion Mix
Analyze trends (internal and external) Audit communications spending Identify all points of contact Team up in communications planning Make all communication elements compatible Create performance measures Appoint an IMC manager Setting the Promotional Budget and Mix 15 26 Socially Responsible Communications
• Advertising and Sales Promotion Bait and switch advertising Avoid false and deceptive advertising Trade promotions can not favor certain customers over others Use advertising to promote socially responsible programs and actions
15 27 Socially Responsible Communications
• Personal Selling Salespeople must follow the rules of “fair competition” Three day coolingoff rule protects ultimate consumers from high pressure tactics Businesstobusiness selling Bribery, industrial espionage, and making false and disparaging statements about a competitor are forbidden 15 28 ...
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This note was uploaded on 06/28/2010 for the course MKTG 00HP01 taught by Professor Himanshu during the Spring '10 term at Indiana Institute of Technology.
- Spring '10