1Definition The 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.
2Integrated Marketing Communications The Marketing Communications Environment is Changing:Mass markets have fragmented, causing marketers to shift away from mass marketingMedia fragmentation is increasingImprovements in information technology are facilitating segmentation
3Integrated Marketing Communications The Need for Integrated Marketing CommunicationsConflicting messages from different sources or promotional approaches can confuse company or brand imagesThe problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently
5AdvertisingPaid non-personal presentation and promotion of ideas, goods, or services by an identified sponsor
6Sales PromotionShort-term incentives used to encourage the purchase of a product or serviceSales promotion: programs such as contests, coupons, or other incentives used to build interest in or encourage purchase of a product
7Public RelationsBuilding good relations with the company’s publics through favorable publicity, a good corporate image, and effective handling of unfavorable newsPublic Relations: press releases, sponsorships, damage control
8Personal SellingPersonal presentation by the sales force used to enhance sales and customer relationshipsPersonal selling: flexible but high cost per contact
9Direct MarketingGain an immediate response and lasting relationship with targeted consumersDirect Marketing: Use of direct mail, telephone, direct-response television, , and the Internet to reach carefully targeted customers.
10Consistent, clear, compelling messages Need for IMCADVERTISINGSELLINGPUBLIC RELATIONSSALES PROMOTIONDIRECT MARKETINGConsistent, clear, compelling messagesThe Need for Integrated Marketing CommunicationsIn the consumer’s mind, advertising messages from different media and different promotional approaches all become part of a single message about the company. Conflicting messages from these different sources can result in confused company images and brand positions.Companies fail to integrate their various communications channels because communications often come from different company sources. Today, more companies are adopting the concept of integrated marketing communications (IMC).Under this concept the company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its brands.IMC builds brand identity and strong customer relationships by tying together all of the company’s messages and images. Brand messages and positioning are coordinated across all communication activities and media.
11Communication Process Elements in theCommunication Process
12DEVELOPING EFFECTIVE COMMUNICATION Identify target audienceSet communications objectivesDesign the messageChoose the mediaThere are several steps in developing effective communication.Select message source
13Developing Effective Communication Step 1: Identifying the Target AudienceAffects decisions related to what, how, when, and where message will be said, as well as who will say it
14Developing Effective Communication Step 2: Determining Communication ObjectivesObjectives may be set to move buyers through the six readiness stages
15communication Objectives AWARENESSKNOWLEDGELIKINGPREFERENCECONVICTIONDetermining the Communication ObjectivesOnce the target audience has been defined, the marketing communicator must decide what response is sought. The marketing communicator needs to know where the target audience now stands and to what stage it needs to be moved. The target audience may be in any of six buyer-readiness stages, the stages consumers normally pass through on their way to making a purchase.The communicator must first build awareness and knowledge.Assuming target consumers know about the product, how do they feel about it? These stages include liking (feeling favorable about the product), preference (preferring it to other brands), and conviction (believing that the product is best for them).Some members of the target market might be convinced about the product, but not quite get around to making the purchase. The communicator must lead these consumers to take the final step. Actions might include offering special promotional prices, rebates, or premiums.PURCHASE
16Developing Effective Communication Step 3: Designing a MessageAIDA framework guides message designMessage contentRationalEmotional appeals: fear, humor, guilt, shame, loveMoral appeals
17Developing Effective Communication Step 3: Designing a MessageMessage structureDraw a conclusion?One-sided or two-sided?Strongest arguments presented first or last?Message formatNovelty, contrast, and more
18Developing Effective Communication Step 4: Choosing MediaPersonal vs. nonpersonal communication channels
19Developing Effective Communication Step 4: Choosing MediaPersonal communication channelsIncludes face-to-face, phone, mail, and Internet chat communicationsWord-of-mouth influence is often criticalBuzz marketing cultivates opinion leadersNonpersonal communication channelsIncludes media, atmosphere, and events
20Developing Effective Communication Step 5: Selecting the Message SourceHighly credible sources are more persuasiveA poor choice of spokesperson can tarnish a brand
21Developing Effective Communication Step 6: Collecting FeedbackRecognition, recall, and behavioral measures are assessedMay suggest changes in product/promotion
22Setting the Promotional Budget and Mix Setting the Total Promotional BudgetAffordability MethodBudget is set at a level that a company can affordPercentage-of-Sales MethodPast or forecasted sales may be usedCompetitive-Parity MethodBudget matches competitors’ outlays
23Setting the Promotional Budget and Mix Setting the Total Promotional BudgetObjective-and-Task MethodSpecific objectives are definedTasks required to achieve objectives are determinedCosts of performing tasks are estimated, then summed to create the promotional budget
24Setting the Promotional Budget and Mix Setting the Overall Promotion MixDetermined by the nature of each promotional tool and the selected promotion mix strategyRevlon emphasizes advertising while Avon emphasizes personal selling
25Setting the Promotional Budget and Mix Nature of Each Promotional ToolReaches large, geographically dispersed audiences, often with high frequencyLow cost per exposure, though overall costs are highConsumers perceive advertised goods as more legitimateDramatizes company/brandBuilds brand image; may stimulate short-term salesImpersonal; one-way communicationAdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing
26Setting the Promotional Budget and Mix Nature of Each Promotional ToolMost effective tool for building buyers’ preferences, convictions, and actionsPersonal interaction allows for feedback and adjustmentsRelationship-orientedBuyers are more attentiveSales force represents a long-term commitmentMost expensive of the promotional toolsAdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing
27Setting the Promotional Budget and Mix Nature of Each Promotional ToolMay be targeted at the trade or ultimate consumerMakes use of a variety of formats: premiums, coupons, contests, etc.Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging salesStimulates quick responseShort-livedNot effective at building long-term brand preferencesAdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing
28Setting the Promotional Budget and Mix Nature of Each Promotional ToolHighly credibleMany forms: news stories, news features, events and sponsorships, etc.Reaches many prospects missed via other forms of promotionDramatizes company or benefitsOften the most underused element in the promotional mixAdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing
29Setting the Promotional Budget and Mix Nature of Each Promotional ToolMany forms: Telephone marketing, direct mail, online marketing, etc.Four characteristics:NonpublicImmediateCustomizedInteractiveWell-suited to highly targeted marketing effortsAdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing
30Promotion mix strategies PUSHPULLPRODUCERPRODUCERPromotionActivityDemandPromotionActivityRETAILER/ WHOLESALERRETAILER/ WHOLESALERPromotionActivityDemandCompanies consider many factors when designing their promotion mix strategies. For example, the importance of different promotion tools varies between consumer and business markets.Business-to-consumer (B2C) companies usually “pull” more, putting more of their funds into advertising, followed by sales promotion, personal selling, and then public relations.In contrast, business-to-business (B2B) marketers tend to “push” more, putting more of their funds into personal selling, followed by sales promotion, advertising, and public relations.CONSUMERCONSUMER
31Setting the Promotional Budget and Mix Promotion Mix StrategiesPush 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.