Integrated Marketing Communication Strategy

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Chapter 14

• Integrated Marketing Communication Strategy

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Marketing Communication Mix or Promotion Mix
Products Design
Products Price
Stores that Sell the Product
Products Package
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The Changing Communications Environment
Marketers Have Shifted Away From
Mass Marketing Less Broadcasting

• Two Factors
• are Changing the Face of Todays
• Marketing Communications

Improvements in Information Technology Has Led
to Segmented Marketing More Narrowcasting
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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.

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A View of the Communications Process
Marketers View Communications as the Management
of the Customer Relationship Over Time Through
the Following Stages
Preselling
Selling
Post- Consumption
Consuming
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Elements in the Communication Process (Fig. 14.2)
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Key Factors in Good Communication
Sellers Must Develop Feedback Channels
to Assess Audiences Response to Messages.
Sellers Need to Know What Audiences They
Wish to Reach and Response Desired.
Sellers Must be Good at Encoding Messages That
Target Audience Can Decode.
Sellers Must Send Messages Through Media
that Reach Target Audiences
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Steps in Developing Effective Communication
Step 1. Identifying the Target Audience
Step 2. Determining the Communication
Objectives Buyer Readiness Stages
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
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Steps in Developing Effective Communication
Step 3. Designing a Message
Message Content Rational Appeals Emotional
Appeals Moral Appeals
Message Structure Draw Conclusions Argument
Type Argument Order
Message Format Headline, Illustration, Copy,
Color Body Language
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Steps in Developing Effective Communication
Step 5. Selecting the Message Source
Step 6. Collecting Feedback
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Setting the Total Promotion Budget
One of the Hardest Marketing Decisions Facing a
Company is How Much to Spend on Promotion.
Affordable
Based on What the Company Can Afford
Percentage of Sales Based on a Certain
Percentage of Current or Forecasted Sales
Objective-and-Task Based on Determining
Objectives Tasks, Then Estimating Costs
Competitive-Parity Based on the
Competitors Promotion Budget
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Setting the Promotion Mix
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Promotion Mix Strategies

Push Strategy
Pull Strategy
Strategy that Calls for Spending A Lot on
Advertising and Consumer Promotion to Build Up
(Pull) Consumer Demand.
Strategy that Calls for Using the Salesforce and
Trade Promotion to Push the Product Through the
Channels.
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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 companys communications well integrated?

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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.

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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.

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Chapter 15

• Advertising, Sales Promotion, and Public Relations

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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.

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What is Advertising?

Advertising is Any Paid Form of Nonpersonal
Presentation and Promotion of Ideas, Goods, or
Services by an Identified Sponsor.
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Major Advertising Decisions (Fig. 15.1)

• Message Decisions
• Message Strategy
• Message Execution

• Objectives Setting
• Communication objectives
• Sales Objectives

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

• Campaign Evaluation
• Communication Impact
• Sales Impact

• Media Decisions
• Reach, Frequency, Impact
• Major Media Types
• Specific Media Types
• Media Timing

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Setting Advertising Objectives
Persuasive Advertising Build Selective
Demand i.e Sony CD Players
Informative Advertising Inform Consumers or
Build Primary Demand i.e CD Players
Advertising Objective Specific Communication Task
Accomplished with a Specific Target Audience
During a Specific Period of Time
Reminder Advertising Keeps Consumers
Thinking About a Product i.e. Coca-Cola
Comparison Advertising Compares One Brand to
Another i.e. Avis vs. Hertz
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Developing Advertising Strategy
Advertising Strategy Consists of Two Major
Elements and Companies are Realizing the Benefits
of Planning These Two Elements Jointly.
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Developing Advertising Strategy Creating Ad
Messages
Plan a Message Strategy General Message to Be
Communicated to Customers
Develop a Message Focus on Customer
Benefits
Creative Concept Big Idea Visualization or
Phrase Combination of Both
Advertising Appeals Meaningful Believable Distin
ctive
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Developing Advertising Strategy Message Execution
Testimonial Evidence
Slice of Life
Turning the Big Idea Into an Actual Ad to
Capture the Target Markets Attention and
Interest.
Scientific Evidence
Lifestyle
Typical Message Execution Styles
Fantasy
Technical Expertise
Personality Symbol
Mood or Image
Musical
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Advertising StrategySelecting Advertising Media
Step 1. Decide on Reach, Frequency, and Impact

Step 2. Choosing Among Major Media Types Media
Habits of Target Consumers, Nature of the
Product, Types of Message, Cost
Step 3. Selecting Specific Media
Vehicles Specific 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 Timing Scheduling of
Advertising Over the Course of a Year Pattern of
Ads Continuity or Pulsing
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Evaluating Advertising
Advertising Program Evaluation
Communication Effects Is the Ad
Communicating Well?
Sales Effects Is the Ad Increasing Sales?
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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.

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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.
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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.

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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.

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Major Consumer Sales Promotion Tools
Sample
Trial amount of a product
Coupons
Savings when purchasing specified products
Cash Refunds
Refund of part of the purchase price
Price Packs
Reduced prices marked on the label or package
Premiums
Goods offered free or low cost as an incentive to
buy a product
Advertising Specialties
Articles imprinted with an advertisers name
given as gifts
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Major Consumer Sales Promotion Tools
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Major Trade Sales Promotion Tools
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Developing the Sales Promotion Program
Decide on the Size of the Incentive
Set Conditions for Participation
Determine How to Promote and Distribute the
Promotion Program
Determine the Length of the Program
Evaluate the Program
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What is Public Relations?

Public Relations Involves Building Good Relations
With the Companys Various Publics by Obtaining
Favorable Publicity, Building Up a Good Corporate
Image, and Handling or Heading Off Unfavorable
Rumors, Stories, and Events.
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Major Public Relations Functions
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Major Public Relations Tools
News
Web Site
Speeches
Special Events
Public Service Activities
Corporate Identity Materials
Written Materials
Audiovisual Materials
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Major Public Relations Decisions
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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.