integrated marketing communication strategy chapter 15

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Integrated Marketing Integrated Marketing Communication Strategy Communication Strategy Chapter 15 Chapter 15

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Page 1: Integrated Marketing Communication Strategy Chapter 15

Integrated Marketing Integrated Marketing Communication Communication

StrategyStrategy

Chapter 15Chapter 15

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Definition

• Marketing Communications MixMarketing Communications Mix The specific mix of advertising, The specific mix of advertising,

personal selling, sales promotion, personal selling, sales promotion, and public relations a company and public relations a company uses to pursue its advertising and uses to pursue its advertising and marketing objectives.marketing objectives.

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• The Marketing Communications The Marketing Communications Environment is Changing:Environment is Changing: Mass markets have fragmented, Mass markets have fragmented,

causing marketers to shift away from causing marketers to shift away from mass marketingmass marketing Media fragmentation is increasing as wellMedia fragmentation is increasing as well

Improvements in information Improvements in information technology are facilitating technology are facilitating segmentationsegmentation

Integrated Marketing Communications

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• The Need for Integrated Marketing The Need for Integrated Marketing CommunicationsCommunications Conflicting messages from different Conflicting messages from different

sources or promotional approaches can sources or promotional approaches can confuse company or brand imagesconfuse company or brand images The problem is particularly prevalent when The problem is particularly prevalent when

functional specialists handle individual forms functional specialists handle individual forms of marketing communications independently of marketing communications independently

Integrated Marketing Communications

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• The Need for Integrated Marketing The Need for Integrated Marketing CommunicationsCommunications The Web alone cannot be used to build The Web alone cannot be used to build

brands; brand awareness potential is brands; brand awareness potential is limitedlimited

Best bet is to wed traditional branding Best bet is to wed traditional branding efforts with the interactivity and service efforts with the interactivity and service capabilities of online communicationscapabilities of online communications

Web efforts can enhance relationshipsWeb efforts can enhance relationships

Integrated Marketing Communications

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• Integrated Marketing Integrated Marketing CommunicationsCommunications The concept under which a company The concept under which a company

carefully integrates and coordinates its carefully integrates and coordinates its many communications channels to many communications channels to deliver a clear, consistent, and deliver a clear, consistent, and compelling message about the compelling message about the organization and its products.organization and its products.

IMC implementation often requires the IMC implementation often requires the hiring of a MarCom manager.hiring of a MarCom manager.

Integrated Marketing Communications

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• Communications efforts should be Communications efforts should be viewed from the perspective of viewed from the perspective of managing customer relationships over managing customer relationships over time.time.

• The communication process begins The communication process begins with an audit of all potential contacts.with an audit of all potential contacts.

• Effective communication requires Effective communication requires knowledge of how communication knowledge of how communication works.works.

The Communication Process

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Elements in the Elements in the Communication ProcessCommunication Process

The Communication Process

• SenderSender

• MessageMessage

• MediaMedia

• ReceiverReceiver

• EncodingEncoding

• DecodingDecoding

• Response Response

• FeedbackFeedback• NoiseNoise

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• Step 1:Step 1: Identifying the Target Audience Identifying the Target Audience Affects decisions related to what, how, Affects decisions related to what, how,

when, and where message will be said, when, and where message will be said, as well as who will say itas well as who will say it

• Step 2:Step 2: Determining Communication Determining Communication ObjectivesObjectives Six buyer readiness stagesSix buyer readiness stages

Developing Effective Communication

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Buyer-Readiness StagesBuyer-Readiness Stages

Developing Effective Communication

• AwarenesAwarenesss

• KnowledgKnowledgee

• LikingLiking

• PreferencePreference

• ConvictionConviction

• PurchasePurchase

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• Step 3:Step 3: Designing a Message Designing a Message AIDA framework guides message designAIDA framework guides message design Message content contains appeals or Message content contains appeals or

themes designed to produce desired themes designed to produce desired resultsresults Rational appealsRational appeals Emotional appealsEmotional appeals

– Love, pride, joy, humor, fear, guilt, shameLove, pride, joy, humor, fear, guilt, shame Moral appealsMoral appeals

Developing Effective Communication

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• Step 3:Step 3: Designing a Message Designing a Message Message Structure: Key decisions are Message Structure: Key decisions are

required with respect to three message required with respect to three message structure issues:structure issues:

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

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

Developing Effective Communication

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• Step 4: Step 4: Choosing MediaChoosing Media Personal communication channelsPersonal communication channels

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

Word-of-mouth influence is often criticalWord-of-mouth influence is often critical Buzz marketing cultivates opinion leadersBuzz marketing cultivates opinion leaders

Nonpersonal communication channelsNonpersonal communication channels Includes media, atmosphere, and eventsIncludes media, atmosphere, and events

Developing Effective Communication

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• Step 5: Step 5: Selecting the Message SourceSelecting the Message Source Highly credible sources are more persuasiveHighly credible sources are more persuasive A poor spokesperson can tarnish a brandA poor spokesperson can tarnish a brand

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

are assessedare assessed May suggest changes in product/promotionMay suggest changes in product/promotion

Developing Effective Communication

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• Setting the Total Promotional BudgetSetting the Total Promotional Budget Affordability MethodAffordability Method

Budget is set at a level that a company can Budget is set at a level that a company can affordafford

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

Competitive-Parity MethodCompetitive-Parity Method Budget matches competitors’ outlaysBudget matches competitors’ outlays

Setting the Promotional Budget

and Mix

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• Setting the Total Promotional BudgetSetting the Total Promotional Budget Objective-and-Task MethodObjective-and-Task Method

Specific objectives are definedSpecific objectives are defined Tasks required to achieve objectives are Tasks required to achieve objectives are

determined determined Costs of performing tasks are estimated, Costs of performing tasks are estimated,

then then summed to create the promotional budget summed to create the promotional budget

Setting the Promotional Budget

and Mix

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• Setting the Overall Promotion Setting the Overall Promotion MixMix Determined by the Determined by the nature of nature of

each promotion tooleach promotion tool and the and the selected selected promotion mix strategypromotion mix strategy

Setting the Promotional Budget

and Mix

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Setting the Promotional Budget

and Mix

• AdvertisingAdvertising

• Personal SellingPersonal Selling

• Sales PromotionSales Promotion

• Public RelationsPublic Relations

• Direct MarketingDirect Marketing

• Reaches large, Reaches large, geographically dispersed geographically dispersed audiences, often with high audiences, often with high frequencyfrequency

• Low cost per exposure, Low cost per exposure, though overall costs are highthough overall costs are high

• Consumers perceive Consumers perceive advertised goods as more advertised goods as more legitimatelegitimate

• Dramatizes company/brandDramatizes company/brand• Builds brand image; may Builds brand image; may

stimulate short-term salesstimulate short-term sales• Impersonal; one-way Impersonal; one-way

communicationcommunication

Promotion Promotion ToolsTools

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Setting the Promotional Budget

and Mix

• AdvertisingAdvertising

• Personal SellingPersonal Selling

• Sales PromotionSales Promotion

• Public RelationsPublic Relations

• Direct MarketingDirect Marketing

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

• Personal interaction allows Personal interaction allows for feedback and for feedback and adjustmentsadjustments

• Relationship-orientedRelationship-oriented

• Buyers are more attentiveBuyers are more attentive

• Sales force represents a Sales force represents a long-term commitmentlong-term commitment

• Most expensive of the Most expensive of the promotional toolspromotional tools

Promotion Promotion ToolsTools

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Setting the Promotional Budget

and Mix

• AdvertisingAdvertising

• Personal SellingPersonal Selling

• Sales PromotionSales Promotion

• Public RelationsPublic Relations

• Direct MarketingDirect Marketing

• May be targeted at the trade May be targeted at the trade or ultimate consumeror ultimate consumer

• Makes use of a variety of Makes use of a variety of formats: premiums, formats: premiums, coupons, contests, etc.coupons, contests, etc.

• Attracts attention, offers Attracts attention, offers strong purchase incentives, strong purchase incentives, dramatizes offers, boosts dramatizes offers, boosts sagging salessagging sales

• Stimulates quick responseStimulates quick response• Short-livedShort-lived• Not effective at building Not effective at building

long-term brand preferenceslong-term brand preferences

Promotion Promotion ToolsTools

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Setting the Promotional Budget

and Mix

• AdvertisingAdvertising

• Personal SellingPersonal Selling

• Sales PromotionSales Promotion

• Public RelationsPublic Relations

• Direct MarketingDirect Marketing

• Highly credibleHighly credible

• Many forms: news stories, Many forms: news stories, news features, events and news features, events and sponsorships, etc.sponsorships, etc.

• Reaches many prospects Reaches many prospects missed via other forms of missed via other forms of promotionpromotion

• Dramatizes company or Dramatizes company or benefitsbenefits

• Often the most underused Often the most underused element in the element in the promotional mixpromotional mix

Promotion Promotion ToolsTools

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Setting the Promotional Budget

and Mix

• AdvertisingAdvertising

• Personal SellingPersonal Selling

• Sales PromotionSales Promotion

• Public RelationsPublic Relations

• Direct MarketingDirect Marketing

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

• Four distinctive Four distinctive characteristics:characteristics: NonpublicNonpublic ImmediateImmediate CustomizedCustomized InteractiveInteractive

• Well-suited to highly Well-suited to highly targeted marketing targeted marketing effortsefforts

Promotion Promotion ToolsTools

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• Promotion Mix StrategiesPromotion Mix Strategies Push strategy:Push strategy: trade promotions and trade promotions and

personal selling efforts push the personal selling efforts push the product through the distribution product through the distribution channels.channels.

Pull strategy:Pull strategy: producers use advertising producers use advertising and consumer sales promotions to and consumer sales promotions to generate strong consumer demand for generate strong consumer demand for products.products.

Setting the Promotional Budget

and Mix

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• Checklist:Checklist: Integrating the Promotion Mix Integrating the Promotion Mix Analyze trends (internal and external)Analyze trends (internal and external) Audit communications spendingAudit communications spending Identify all points of contactIdentify all points of contact Team up in communications planningTeam up in communications planning Make all communication elements Make all communication elements

compatiblecompatible Create performance measuresCreate performance measures Appoint an IMC managerAppoint an IMC manager

Setting the Promotional Budget

and Mix

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• Advertising and Sales PromotionAdvertising and Sales Promotion Avoid false and deceptive Avoid false and deceptive

advertisingadvertising Bait and switch advertisingBait and switch advertising

Trade promotions can not favor Trade promotions can not favor certain customers over otherscertain customers over others

Use advertising to promote socially Use advertising to promote socially responsible programs and actionsresponsible programs and actions

Socially Responsible Marketing

Communications

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• Personal SellingPersonal Selling Salespeople must follow the rules of “fair Salespeople must follow the rules of “fair

competition”competition” Three day cooling-off rule protects Three day cooling-off rule protects

ultimate consumers from high pressure ultimate consumers from high pressure tacticstactics

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

false and disparaging statements about a false and disparaging statements about a competitor are forbiddencompetitor are forbidden

Socially Responsible Marketing

Communications