Slide 0 in Chapter 16

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Chapter 16

• Designing and Managing Integrated Marketing
  Communications

PowerPoint by Karen E. James Louisiana State
University - Shreveport
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Objectives

• Learn the major steps in developing an effective
  integrated marketing communications program.
• Understand the steps involved in developing an
  advertising program.
• Learn how companies can exploit the marketing
  potential of sales promotion, public relations,
  direct marketing, and e-marketing.

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Marketing Communications
Communications Platforms

• Advertising
• Sales Promotion

• Public relations
• Direct marketing

• Personal selling

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Developing Effective Marketing Communications
Steps in Marketing Communications Program
Development

• Identify target audience
• Determine objectives of communication
• Design the message
• Select communication channels

• Establish the budget
• Select the marketing communications mix
• Measure results
• Manage the IMC process

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Developing Effective Marketing Communications

• Step 1 Identifying the target audience
• Includes assessing the audiences perceptions of
  the company, product, and competitors
  company/product image
• Step 2 Cognitive, affective, and behavioral
  objectives may be set
• Step 3 AIDA model guides message design

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Developing Effective Marketing Communications

• Message Design
• Content
• Structure
• Format
• Source

• Message content decisions involve the selection
  of appeal, theme, idea, or USP
• Types of appeals
• Rational appeals
• Emotional appeals
• Moral appeals

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Developing Effective Marketing Communications

• Message Design
• Content
• Structure
• Format
• Source

• One-sided vs. two-sided messages
• Order of argument presentation

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Developing Effective Marketing Communications

• Message Design
• Content
• Structure
• Format
• Source

• Message format decisions vary with the type of
  media, but may include
• Graphics, visuals
• Headline, copy or script
• Sound effects, voice qualities
• Shape, scent, texture of package

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Developing Effective Marketing Communications

• Message Design
• Content
• Structure
• Format
• Source

• Message source characteristics can influence
  attention and recall
• Factors underlying perceptions of source
  credibility
• Expertise
• Trustworthiness
• Likability

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Developing Effective Marketing Communications

• Step 4 Selecting Communication Channels
• Personal communication channels
• Effectiveness derives from personalization and
  feedback
• Several methods of stimulating personal
  communication channels exist
• Nonpersonal communication channels
• Influence derives from two-step
  flow-of-communication process

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Developing Effective Marketing Communications
Methods of Stimulating Personal Communication

• Devoting extra effort to influential individuals
  or companies
• Creating opinion leaders
• Working through influential community members
• Using influential people in testimonial
  advertising

• Developing advertising with high conversation
  value
• Use viral marketing
• Developing word-of-mouth referral channels
• Establishing an electronic forum

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Developing Effective Marketing Communications

• Step 5 Establishing the Marketing Communications
  Budget
• Affordability method
• Percentage-of-sales method
• Competitive-parity method
• Objective-and-task method
• Step 6 Deciding on the Marketing Communications
  Mix

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Developing Effective Marketing Communications

• Communications Mix Selection
• Types of promotional tools
• Selection factors

• Advertising
• Sales promotion
• Public relations and publicity
• Direct marketing
• Personal selling

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Developing Effective Marketing Communications

• Communications Mix Selection
• Types of promotional tools
• Selection factors

• Consumer vs. business market
• Stage of buyer readiness
• Stage of product life cycle
• Market rank

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Developing Effective Marketing Communications

• Step 7 Measure Results
• Recognition, recall, attitudes, behavioral
  responses
• Step 8 Manage the Integrated Marketing
  Communications Process
• Provides stronger message consistency and greater
  sales impact
• Improves firms ability to reach right customers
  at right time with right message

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Developing and Managing the Advertising Campaign

• The Five Ms of Advertising
• Mission
• Money
• Message
• Media
• Measurement

• Objectives can be classified by aim
• Inform
• Persuade
• Remind
• Reinforce

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Developing and Managing the Advertising Campaign

• Factors considered when budget-setting
• Stage of product life cycle
• Market share and consumer base
• Competition and clutter
• Advertising frequency
• Product substitutability

• The Five Ms of Advertising
• Mission
• Money
• Message
• Media
• Measurement

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Developing and Managing the Advertising Campaign

• Factors considered when choosing the advertising
  message
• Message generation
• Message evaluation and selection
• Message execution
• Social responsibility review

• The Five Ms of Advertising
• Mission
• Money
• Message
• Media
• Measurement

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Developing and Managing the Advertising Campaign

• Developing media strategy involves
• Deciding on reach, frequency, and impact
• Selecting media and vehicles
• Determining media timing
• Deciding on geographical media allocation

• The Five Ms of Advertising
• Mission
• Money
• Message
• Media
• Measurement

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Developing and Managing the Advertising Campaign
Major Media Types

• Newspapers
• Television
• Direct mail
• Radio
• Magazines

• Outdoor
• Yellow pages
• Newsletters
• Brochures
• Telephone

• Internet

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Developing and Managing the Advertising Campaign

• Deciding on Media Categories
• Target audiences media habits, nature of the
  product and message, cost
• Media Timing Decisions
• Macroscheduling vs. microscheduling
• Continuity, concentration, flighting, and pulsing
  scheduling options
• Deciding on Geographical Allocation

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Developing and Managing the Advertising Campaign

• Evaluating advertising effectiveness
• Communication-effect research
• Sales-effect research

• The Five Ms of Advertising
• Mission
• Money
• Message
• Media
• Measurement

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Sales Promotion

• Sales promotions are short-term incentives
  designed to stimulate purchase among consumers or
  trade
• Purpose of sales promotion
• Attract new triers or brand switchers
• Reward loyal customers
• Increase repurchase rates

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Sales Promotion
Steps in Sales Promotion Program Development

• Establish objectives
• Select consumer-promotion tools
• Select trade-promotion tools

• Select business- and sales force promotion tools
• Develop the program
• Pretest the program

• Implement and evaluate the program

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Sales Promotion
Major Consumer-Promotion Tools

• Samples
• Coupons
• Cash refunds (rebates)
• Premiums
• Prizes (contests, sweepstakes, games)
• Patronage awards

• Free trials
• Product warranties
• Tie-in promotions
• Cross-promotions
• Point-of-purchase displays and demonstrations

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Public Relations

• Public relations activities promote or protect
  the image of a firm or product
• Public relations functions
• Press relations
• Product publicity
• Corporate communications
• Lobbying
• Counseling

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Public Relations

• Marketing Public Relations (MPR)
• Plays an important role in
• New product launches
• Repositioning of mature brand
• Building interest in product category
• Influencing specific target groups
• Defending products with public problems
• Building the corporate image
• Three Major MPR Decisions

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Public Relations
Major Public Relations Tools

• Publications
• Events
• Sponsorships
• News

• Speeches
• Public-service activities
• Identity media

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Direct Marketing

• Direct marketing uses consumer-direct channels to
  reach and deliver offerings to consumers without
  intermediaries.
• Direct marketing is growing and offers consumers
  key benefits.
• Firms are recognizing the importance of
  integrated direct marketing efforts.

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Direct Marketing
Major Direct Marketing Tools

• Face-to-face selling
• Direct mail
• Catalog marketing
• Telemarketing

• Direct-response TV marketing
• Kiosk marketing
• E-marketing

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Direct Marketing

• Steps in Developing a Direct-Mail Campaign
• Step 1 Set objectives
• Step 2 Identify target markets
• Step 3 Define the offer
• Step 4 Test the elements
• Step 5 Measure results