Integrated Marketing Communication StrategyChapter 15

15- *ObjectivesKnow the tools of the marketing communications mix.Understand the process and advantages of integrated marketing communications.Learn the steps in developing effective marketing communications program.Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.Push and Pull

15- *UPS is a $31 billion corporate giantUPS wanted to reposition itself as a supply chain solutions providerDeveloped new ad theme based on customer input

Implemented, What Can Brown Do for You? campaignRealigned its sales and marketing organizationAds, web sites, and salespeople deliver message dailycUPS

15- *DefinitionThe Marketing Communications MixThe specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.

15- *The Tools of Marketing Communications Mix

AdvertisingPersonal Selling

Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.Sales PromotionShort-term Incentives to Encourage Sales.Public RelationsBuilding Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity.Direct MarketingDirect Communications With Individuals to Obtain an Immediate Response.Personal Presentations by a Firms Sales Force.

15- *The Marketing Communications Environment is Changing:Mass markets have fragmented, causing marketers to shift away from mass marketing Media fragmentation is increasing Improvements in information technology are facilitating segmentationIntegrated Marketing Communications

15- *The Changing Communications Environment

Two Factors are Changing the Face of Todays Marketing Communications:

Improvements in Information TechnologyHas Led to Segmented MarketingMore Narrowcasting

Marketers Have ShiftedAway From MassMarketingLess Broadcasting

15- *The Need for Integrated Marketing CommunicationsConflicting messages from different sources or promotional approaches can confuse company or brand images

Integrated Marketing Communications

15- *Integrated Marketing Communications*Company Carefully Integrates and Coordinates Its Many Communication Channels to Deliver a Clear, Consistent, Compelling Message.AdvertisingPersonal SellingPublic RelationsSales PromotionDirectMarketingPackagingEventMarketingMessage

15- *PresellingSellingPost-ConsumptionConsumingMarketers View Communications as the Management of the Customer Relationship Over Time Through the Following Stages:A View of the Communications Process

15- *Figure 15-2: Elements in theCommunication Process

15- *

Sellers Need to Know What Audiences They Wish to Reach and Response Desired.

Sellers Must be Good at Encoding MessagesThat Target AudienceCan Decode.Key Factors in Good Communication

Sellers Must Send Messages Through Media that Reach Target Audiences

Sellers Must DevelopFeedback Channels toAssess AudiencesResponse to Messages.

15- *Steps in Developing Communication Program*

1.Identifying the Target Audience2.Determining the Response Sought3. Designing a Message4. Choosing Media5. Selecting the Message Source6. Collecting Feedback

15- *Step 1. Identifying the Target AudienceStep 2. Determining the Communication ObjectivesBuyer Readiness StagesPurchaseConvictionPreferenceLikingKnowledgeAwarenessSteps in Developing Effective Communication

This ad for the Toyota Celica may be able to cover the first three stages of the buyer-readiness stages: awareness, knowledge, and liking.

There is no mention of competitors, so it does not seem to establish preference.

15- *Step 3. Designing a Message

Message ContentRational AppealsEmotional AppealsMoral Appeals

Message StructureDraw ConclusionsArgument TypeArgument Order

Message FormatHeadline, Illustration, Copy, & ColorBody Language

Steps in Developing Effective Communication

Designing a Message

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 it combining them? How much do the personified cows contribute 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. What makes that practice effective?

Designing the Message - ContentRational Appeals appeal to audience self-interestEmotional Appeals fear, guilt, shame, humor, joy, love, prideMoral Appeals what is right or proper

Designing the Message - StructureConclusion Drawing negative when communicator is viewed as untrustworthy, if seen as explaining the obvious, if issue is too personalOne vs. Two-sided Message one-better with favorably predisposed, two better with well-educated, those exposed to counter propagandaOrder of Presentation primacy effect, recency effect

Message FormatColor, Sound, Appearance, Text, IllustrationMedia ChannelsPersonal (word-of-mouth; sales person)Impersonal (media, atmospheres, events)

15- *

Nonpersonal CommunicationChannels

Steps in Developing EffectiveCommunication

Step 4. Choosing Media

Personal CommunicationChannels

Step 5. Selecting the Message Source

Step 6. Collecting Feedback

Selecting the Message SourceMessage Sourcecredibility important expertisetrustworthinesslikability

Collecting the FeedbackFeedbackawareness? trial?satisfaction?

15- *Setting the Total Promotion Budget

15- *Setting the Overall Promotion MixDetermined by the nature of each promotional tool and the selected promotion mix strategy

Setting the Promotional Budget and MixRevlon emphasizes advertising while Avon emphasizes personal selling

15- *Setting the Promotion MixNature of Each Promotion ToolAdvertisingReaches Many Buyers, ExpressiveImpersonalPersonal SellingPersonal Interaction, Builds Relationships CostlySales PromotionProvides Strong Incentives to BuyShort-LivedPublic RelationsBelievable, Effective, EconomicalUnderused by Many CompaniesDirect MarketingNonpublic, Immediate, Customized,Interactive

15- *Factors in Developing Promotion Mix Strategies Push Strategy - Pushing the Product Through Distribution Channels to Final Consumers. Pull Strategy - Producer Directs Its Marketing Activities Toward Final Consumers to Induce Them to Buy the Product.Type of Product/ MarketBuyer/ Readiness StageProduct Life-Cycle Stage

15- *Figure 15-4: Push vs. Pull Promotion Strategy

15- *Checklist: Integrating the Promotion MixAnalyze trends (internal and external)Audit communications spendingIdentify all points of contactTeam up in communications planningMake all communication elements compatibleCreate performance measuresAppoint an IMC managerSetting the Promotional Budget and Mix

*The Marketing Communications MixThis CTR relates to the material on pp. 422-423.Tools of The Marketing Communications MixAdvertising. Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertising often utilizes mass media and may be adapted to take advantages of a given mediums strengths to convey information.Sales Promotion. Sales promotions consist of short-term incentives to encourage purchase of sales of a product or service. Limited time offers or dated coupons are common sales promotions.Public Relations. Public relations is an on-going process of building good relations with the various publics of the company. Key elements in the process are obtaining favorable publicity, building and projecting a good "corporate image," and designing an information support and response team to respond proactively to unfavorable rumors, stories, or events. Personal Selling. Personal selling describes the use of oral presentations in a conversation with one or more prospective buyers for the purposes of making a sale. Personal selling combines product information and benefits with the interpersonal dynamics of the sales person. Good interpersonal relationship skills and effective oral communication skills are needed for personal selling.Direct Marketing. Directed communications with carefully targeted individual consumers to obtain an immediate response.

**********Choosing MediaThis CTR relates to the discussion on pp. 429-432.Choosing MediaPersonal Communication Channels. Personal channels involve two or more people in direct communication. Strategic usage of personnel communication channels should consider the following influences: Word of Mouth. Word of mouth is especially credible to consumers -- either positive or negative. Opinion Leaders. Opinion leaders are people whose opinions on products are sought by others. Marketers can make use of and even create opinion leaders for consumers reference.Discussion Note: Is it ethical to create opinion leaders, especially fictional ones? For example, Mr. Goodwrench of General Motors is not a real person and his genuine GM parts lack quality control as many of them arent really made by GM, but by overseas suppliers.Nonpersonal Communication Channels. Nonpersonal channels are characterized by an impersonal method of communication, which lacks the face to face interactive nature of personal channels or feedback. Major forms of nonpersonal communication include: Major media include print, broadcast and display. Atmospheres are designed environments that create or reinforce the buyers leanings to buy a product. Events are occurrences staged to communicate messages to target audience.***Setting the Total Promotion BudgetThis CTR relates to the material on pp. 432-433.Setting the Total Promotion BudgetAffordable Method. This method involves setting a promotion budget based upon what management thinks the company can afford. This method often places promotion budget decisions in the hands of managers unfamiliar with what promotion does for the product. It also ignores the effect of promotion on sales volume and/or possible value-added to the product in the mind of the consumer by the promotion effort.Percentage-of-Sales Method. This method sets promotion budgets at a certain percentage of current or projected sales or price of the product. While it does link sales and promotion together it tends to make promotion an effect of sales rather than a positive influence on it. Also, falling sales under this method will decrease promotional expenditures which might need to be increased to halt the sales decline.Competitive-Parity Method. This method sets promotion budgets in line with what the competition spends on promotion. This "collective wisdom" philosophy suggests that management is unwilling or unable to decide what level of spending is needed to promote the product to the consumer.Objective-and-Task Method. This method sets budgets by defining specific objectives, determining what tasks are necessary to meet them, estimates the cost of performing the tasks, and sets the promotion budget according to the estimates. In approach assumes that promotion is a resource to be allocated to meet company goals and managed proactively to compete successfully.*Setting the Promotion MixThis CTR relates to the material on pp. 433-435.The Nature of Each Promotion ToolAdvertising. Advertisings public nature helps legitimize the product. It also allows marketers to repeat the message to a wide audience. Large-scale campaigns communicate something positive about the sellers size, popularity, and success. Advertising is also very expressive and can make use of powerful symbols and sensory appeals. Its shortcoming include expense, one-way communication, being impersonal, and lack of control over situational reception.Personal Selling. Personal selling is the most effective promotion tool at certain stages in the buying process, especially in building preferences, convictions, and actions. The personal contact is two-way and allows adaptation to buyer reactions and the establishment of relationships. Personal selling is also the most expensive promotion tool and requires a long-term commitment to build an effective salesforce.Sales Promotion. Sales promotion includes coupons, contests, cents-off deals, premiums, rebates, and other techniques designed to elicit a quick response. Sales promotions usually influence the timing of a purchase rather than the decision to purchase.Public Relations. Public relations includes news stories, features, and reporting on company activities from objective and credible third-party sources. These events are perceived as more believable than company-controlled promotions. Difficulties include the lack of message content, format, and structure control over the public relations event. Further, public relations are generally under used by marketers both strategically and tactically. Direct Marketing. Direct marketing includes such things as direct mail, telemarketing, electronic marketing, online marketing, and others.*Factors in Developing Promotion Mix StrategiesThis CTR relates to the material on pp. 435-437.Factors in Setting the Promotion MixPush or Pull Strategy. The promotion mix is also affected by the company's decision on either a push or pull strategy. Push strategies rely on personal selling and sales promotions to encourage intermediaries to take the product and promote, thus "pushing" it through the channel. Pull strategies rely on advertising and consumer promotions to build up demand in the target market of ultimate consumer whose behavior effectively "pulls" the product through the channel. Type of Market. The type market, consumer or industrial, varies the importance of the promotion tools available to marketers. Advertising weighs heavily in consumer markets whereas personal selling plays the greatest role in industrial markets.Buyer Readiness State. The buyer will be more receptive to some promotion tools than others depending upon their particular buyer readiness state. Advertising and public relations help create awareness and increase knowledge. Liking and preference are more affected by personal selling and advertising together. Conviction and purchase come first from advertising and then personal selling to close depending upon the kind of product being considered. Product Life Cycle Stage. The stage in the product life cycle also describes different appropriate promotion mix variations. Introduction utilizes advertising and public relations to build awareness and personal selling to facilitate motivate channel members to carry it. In growth, the need for personal selling diminishes. In maturity, personal selling helps differentiate it again in distribution. In decline, sales promotion may be the most emphasized of the promotion mix tools.