1 integrated marketing communications strategy chapter 14

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Integrated Integrated Marketing Marketing

Communications Communications StrategyStrategy

Chapter 14

Definition Marketing communications

The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell.

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.

Goal 1: Know the tools of the marketing communications mix

Integrated marketing communications

Consistent,clear,andcompelling company

and productMessages.

Consistent,clear,andcompelling company

and productMessages.

AdvertisingAdvertising Personalselling

Personalselling

Salespromotion

Salespromotion

Publicrelations

Publicrelations

Directmarketing

Directmarketing

Carefully blended mix of promotion tools

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

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Fragm

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Media

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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.


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


Promotional Mix

Advertising 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 short-term sales Impersonal; one-way

communication

Promotion Promotion ToolsTools

Goal 4: Understand methods for setting budgets and designing the mix

Any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor.

Promotional Mix


Most effective tool for building buyers’ preferences, convictions, and actions

Personal interaction allows for feedback and adjustments

Relationship oriented Buyers are more attentive Sales force represents a long-

term commitment Most expensive of the

promotional tools



Personal presentation by the firm’s sales force for the perpose of making sales and building customer relationship.

Promotional Mix


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 Short lived Not effective at building

long-term brand preferences



Short-term incentives to encourage the purchase or sale of a product or service.

Promotional Mix


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



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 rumor stories and events.

Promotional Mix


Many forms: Telephone marketing, direct mail, online marketing, etc.

Four distinctive characteristics: Nonpublic Immediate Customized Interactive

Well-suited to highly targeted marketing efforts



Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting consumer relationships.

Communication PlatformsAdvertising 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 PlatformsPersonal Selling Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows

Public Relations Press kits Speeches Seminars Annual reports Charitable donations Publications Community relations Lobbying Identity media Company magazine

Communication PlatformsDirect Marketing Catalogs Mailings Telemarketing Electronic shopping TV shopping Fax mail E-mail Voice mail Blogs Websites

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The promotional mix

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Factors that influence the use of promotional tools

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Stages of the Buying Process

Prepurchase Stage

Purchase Stage

Postpurchase Stage

INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE

PROMOTIONAL MIX

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How the importance of promotional elements varies during the stages of consumer’s purchase decision

Elements in the Communication Process

Steps in Developing Effective Communication

Identifying the Target AudienceIdentifying the Target Audience

Determining the communication objectives

Determining the communication objectives

Designing a MessageDesigning a Message

Choosing MediaChoosing Media

Selecting the Message SourceSelecting the Message Source

Collecting FeedbackCollecting Feedback

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

Goal 3: Learn the steps in developing effective marketing communications

PurchaseConvictionPreferenceLikingKnowledgeAwareness

Designing a message

Message contentMessage content

Message structure& Message format

Message structure& Message format

What to say?What to say?

How to say?How to say?

Developing Effective Communication Step 3: Designing a Message

AIDA (Attention, Interest, Desire and Action) framework guides message design

Message content contains appeals or themes designed to produce desired results

Rational appeals Emotional appeals

Love, pride, joy, humor, fear, guilt, shame Moral appeals


Developing Effective Communication Step 3: Designing a Message

Message Structure: Key decisions are required with respect to three message structure issues:

Whether or not to draw a conclusion One-sided vs. two-sided argument Order of argument presentation

Message Format: Design, layout, copy, color, shape, movement, words, sounds, voice, body language, dress, etc.


Choosing Media

Personalcommunication

channel

Personalcommunication

channel

Word-of-mouthinfluence

Word-of-mouthinfluence

Non-personalcommunication

channel

Non-personalcommunication

channel

Developing Effective Communication

Step 4: Choosing Media Personal communication channels

Includes face-to-face, phone, mail, and Internet chat communications

Word-of-mouth influence is often critical

Nonpersonal communication channels Includes media, atmosphere, and events


Developing Effective Communication Step 5: Selecting the Message Source

Highly credible sources are more persuasive A poor spokesperson can tarnish a brand

Step 6: Collecting Feedback Recognition, recall, and behavioral measures

are assessed May suggest changes in product/promotion


Setting the Promotional Budget Setting the Total Promotional Budget

Affordability Method Budget is set at a level that a company can afford

Percentage-of-Sales Method Past or forecasted sales may be used

Competitive-Parity Method Budget matches competitors’ outlays


Setting the Promotional Budget Setting the Total Promotional Budget

Objective-and-Task 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


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The objective and task approach

Setting the Promotional Mix Setting the Overall Promotion Mix

Determined by the nature of each promotion tool and the selected promotion mix strategy


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US Measured Advertising Spending by

Media

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.


Push versus pull promotion strategy

ProducerProducer Retailer &wholesalers

Retailer &wholesalers ConsumersConsumers

ProducerProducer Retailer &wholesalers

Retailer &wholesalers

ConsumersConsumers

Producermarketingactivities

Resellermarketingactivities

DemandDemand

Producer marketing activities

Push strategy

Pull strategyReal Marketing 14.2

Socially Responsible Communications Personal Selling

Salespeople must follow the rules of “fair competition”

Three-day cooling-off rule protects ultimate consumers from high pressure tactics

Business-to-business selling Bribery, industrial espionage, and making false and

disparaging statements about a competitor are forbidden


Advertising, Personal selling.

Public relations & Sales Promotions

Chapter 15 & 16

Definition

Advertising Any paid form of nonpersonal

presentation and promotion of ideas, goods, or services by an identified sponsor.

Major Advertising Decisions

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

Four important decisions in developing advertising program

Setting advertising objectives Setting the advertising budget Developing the advertising strategy Evaluating advertising campaigns

Setting Advertising Objectives Advertising objectives can be classified by primary purpose:

Inform Introducing new products, suggesting new uses, informing

price change etc. Persuade

Becomes more important as competition increases [Sony offers best quality]

Comparative advertising [We’re number two, so we try harder]

Remind Most important for mature products [Coca-Cola] Reminding customers where to buy it

Informing

Several factors should be considered when setting the ad budget: Stage in the PLC: New products, big ad budget to aware

and persuade; mature brands - low Market share: building the market or taking market

share requires large ad budget. Level of competition: many competitors - large Ad clutter: high - large Degree of brand differentiation: undifferentiated brand –

heavy ad budget

Setting the advertising budget

Developing advertising strategy

Two major elements: Creating ad messages Selecting ad media

Creating ad messages: increase number of TV channels, average ad expose numbers, remote control etc. Message strategy: what general message to be

communicated? Advertising appeal: Three characteristics: appeals

must be Meaningful: pointing out benefits Believable: deliver promised benefits Distinctive: how better than the competing brands?


Message execution: Turn big idea into actual ad execution that will capture target market’s attention and interest. Creative people must find the best style, tone, words, and format for executing the message.

Many execution styles: slice of life, musical, personality symbol, scientific evidence.

Tone: +ve or –ve tone Words: “Buy cheap socks and you’ll pay through

the toes” Hanes Socks. Format: Illustration, headline, copy

Select advertising media: Major steps in media selection are Decide on level of reach, frequency and impact: Choose among the major media types by considering:

Target consumer media habits, nature of the product: fashion are best advertised in color magazines, auto performance on TV

Types of messages: major sale – news paper, lots of technical data - magazine, and

Costs: the cost of reaching 1,000 people using the media. Select specific media vehicles: specific media within each

general media type. nTV, ATN Bangla; Ittefaq, Times, Daily Star, Independence.

Decide on media timing: Hallmark – occasions, Even continuity or uneven Pulsing.


Major Media TypesMajor Media Types

Advertising

Newspapers Television Direct Mail

Radio Magazines Outdoor

Internet

Evaluating Advertising

Measuring communications effects Is the intended message being communicated

effectively and to the intended audience?

Measuring sales effect Has the campaign generated the intended sales growth? (much more difficult to measure)

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.

Definition

Major functions of public relations Press Relations or Agency - creating and placing

newsworthy information in the media

Product Publicity - publicizing specific products

Public Affairs - building and maintaining national or local community relations (e.g. sponsoring concerts)

Lobbying - building and maintaining relations with legislators and government officials

Major functions of public relations Investor Relations - maintaining relationships with

shareholders and others in the financial community

Development - maintaining relationships with donors or members of not-for-profit organizations

Crisis Management - helping a company in the media spotlight because of a problem with product, employees, or business

Personal selling Personal representation by the firm’s sales force for the

purpose of making sales and building customer relationship

One of the oldest professions in the world

Today, most salespeople are well-educated, well-trained professionals who work to build and maintain long-term relationships with customers.

Definition

The Role of the Sales Force

Sales Force Serves as a Critical Link

Between a Company and its Customers Since They:

Represent Customers to

the Company to Produce Customer

Satisfaction

Represent the Company to

Customers to Produce Company Profit

Major Steps in Effective Selling

Prospecting and Qualifying

Preapproach

Approach

Presentation and Demonstration

Handling objections

Closing

Follow-up

ProspectingProspecting Salesperson Identifies Qualified Potential Customers.

Salesperson Identifies Qualified Potential Customers.

PreapproachPreapproachSalesperson Learns as Much as Possible About a Prospective

Customer and About his/her Offer Before Making a Sales Call.

Salesperson Learns as Much as Possible About a Prospective

Customer and About his/her Offer Before Making a Sales Call.

QualifyingQualifyingProcess of Identifying Good

Prospects and Screening Out Poor Ones.

Process of Identifying Good Prospects and Screening Out Poor

Ones.

Steps in the Selling Process

ApproachApproach Salesperson Meets the Buyer For the First Time.

Salesperson Meets the Buyer For the First Time.



Salesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction

Approach. Dislike: pushy, late, deceitful, unprepared, disorganized

Value most: good listening, thorough, honesty, dependability, empathy, respect

Salesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction

Approach. Dislike: pushy, late, deceitful, unprepared, disorganized

Value most: good listening, thorough, honesty, dependability, empathy, respect

ClosingClosing Salesperson Asks the Customer for an Order.

Salesperson Asks the Customer for an Order.

Handling ObjectionsHandling

ObjectionsSalesperson Seeks Out, Clarifies, and Overcomes Customer Objections to

Buying.

Salesperson Seeks Out, Clarifies, and Overcomes Customer Objections to

Buying.

Steps in the Selling Process

Follow-UpFollow-UpOccurs After the Sale and Ensures Customer Satisfaction and Repeat

Business.

Occurs After the Sale and Ensures Customer Satisfaction and Repeat

Business.

Sales forcestructure

Sales forcestructure

Territorial salesforce structure

Territorial salesforce structure

Product salesforce structure

Product salesforce structure

Customer sales force structure

Customer sales force structure

Sales force structure

Sales Promotion Short-term incentives to encourage

the purchase or sale of a product or service.

Can be targeted at final buyers, retailers and wholesalers, business customers, and the sales force.

Definition

Consumer Promotion Tools Samples: Lifebuoy mini pack shampoo.

Coupon: certificates, save $10 when you purchase with certificates

Cash Refunds (Rebates): Dell, mailing rebates

Price packs (cents-off deals): reduced price marked on the label or package. “two for the price of one”

Contests: suggestions, filling up essay, Games etc.

Consumer Promotion Tools Advertising Specialties: articles imprinted with

advertiser’s name. pens, calendars, key rings, matches, T shirts, caps, coffee mugs.

Premiums: goods offered either free or at low cost. (Gold or silver)

Patronage Rewards: frequent flier-programs

Point-of-Purchase Communications: Display at pop. Big Lipstick, Burger picture.

1 integrated marketing communications strategy chapter 14

Documents

marketing objectives

communications channels

promotional approaches

firms sales force

promotion of ideas

building buyers preferences

brand imagesthe problem

strong purchase incentives