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Integrated Marketing Communication 14. 14- 1 Definition The Marketing Communications Mix The specific mix of advertising, personal selling, sales promotion,

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Presentation on theme: "Integrated Marketing Communication 14. 14- 1 Definition The Marketing Communications Mix The specific mix of advertising, personal selling, sales promotion,"— Presentation transcript:

1 Integrated Marketing Communication 14

2 14- 1 Definition 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. The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.

3 14- 2 The Marketing Communications Environment is Changing: Mass markets have fragmented, causing marketers to shift away from mass marketing Mass markets have fragmented, causing marketers to shift away from mass marketing Media fragmentation is increasing Media fragmentation is increasing Improvements in information technology are facilitating segmentation Improvements in information technology are facilitating segmentation Integrated Marketing Communications

4 14- 3 The Need for Integrated Marketing Communications Conflicting messages from different sources or promotional approaches can confuse company or brand images Conflicting messages from different sources or promotional approaches can confuse company or brand images The problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently The problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently Integrated Marketing Communications

5 14- 4 Integrated Marketing Communications

6 Advertising Paid non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

7 Sales Promotion Short-term incentives used to encourage the purchase of a product or service

8 Public Relations Building good relations with the companys publics through favorable publicity, a good corporate image, and effective handling of unfavorable news

9 Personal Selling Personal presentation by the sales force used to enhance sales and customer relationships

10 Direct Marketing Gain an immediate response and lasting relationship with targeted consumers

11 Need for IMC Consistent, clear, compelling messages ADVERTISING SELLING PUBLIC RELATIONS SALES PROMOTION DIRECT MARKETING

12 14- 11 Elements in the Communication Process

13 DEVELOPING EFFECTIVE COMMUNICATION Identify target audienceSet communications objectivesDesign the messageChoose the mediaSelect message source

14 14- 13 Step 1: Identifying the Target Audience Affects decisions related to what, how, when, and where message will be said, as well as who will say it Affects decisions related to what, how, when, and where message will be said, as well as who will say it Developing Effective Communication

15 14- 14 Step 2: Determining Communication Objectives Objectives may be set to move buyers through the six readiness stages Objectives may be set to move buyers through the six readiness stages Developing Effective Communication

16 communication Objectives AWARENESS KNOWLEDGE LIKING PREFERENCE CONVICTION PURCHASE

17 14- 16 Step 3: Designing a Message AIDA framework guides message design AIDA framework guides message design Message content Message content Rational Rational Emotional appeals: fear, humor, guilt, shame, love Emotional appeals: fear, humor, guilt, shame, love Moral appeals Moral appeals Developing Effective Communication

18 14- 17 Step 3: Designing a Message Message structure Message structure Draw a conclusion? Draw a conclusion? One-sided or two-sided? One-sided or two-sided? Strongest arguments presented first or last? Strongest arguments presented first or last? Message format Message format Novelty, contrast, and more Novelty, contrast, and more Developing Effective Communication

19 14- 18 Step 4: Choosing Media Personal vs. nonpersonal communication channels Personal vs. nonpersonal communication channels Developing Effective Communication

20 14- 19 Step 4: Choosing Media Personal communication channels Personal communication channels Includes face-to-face, phone, mail, and Internet chat communications Includes face-to-face, phone, mail, and Internet chat communications Word-of-mouth influence is often critical Word-of-mouth influence is often critical Buzz marketing cultivates opinion leaders Buzz marketing cultivates opinion leaders Nonpersonal communication channels Nonpersonal communication channels Includes media, atmosphere, and events Includes media, atmosphere, and events Developing Effective Communication

21 14- 20 Step 5: Selecting the Message Source Highly credible sources are more persuasive Highly credible sources are more persuasive A poor choice of spokesperson can tarnish a brand A poor choice of spokesperson can tarnish a brand Developing Effective Communication

22 14- 21 Step 6: Collecting Feedback Recognition, recall, and behavioral measures are assessed Recognition, recall, and behavioral measures are assessed May suggest changes in product/promotion May suggest changes in product/promotion Developing Effective Communication

23 14- 22 Setting the Total Promotional Budget Affordability Method Affordability Method Budget is set at a level that a company can afford Budget is set at a level that a company can afford Percentage-of-Sales Method Percentage-of-Sales Method Past or forecasted sales may be used Past or forecasted sales may be used Competitive-Parity Method Competitive-Parity Method Budget matches competitors outlays Budget matches competitors outlays Setting the Promotional Budget and Mix

24 14- 23 Setting the Total Promotional Budget Objective-and-Task Method Objective-and-Task Method Specific objectives are defined Specific objectives are defined Tasks required to achieve objectives are determined Tasks required to achieve objectives are determined Costs of performing tasks are estimated, then summed to create the promotional budget Costs of performing tasks are estimated, then summed to create the promotional budget Setting the Promotional Budget and Mix

25 14- 24 Setting the Overall Promotion Mix Determined by the nature of each promotional tool and the selected promotion mix strategy Determined by the nature of each promotional tool and the selected promotion mix strategy Setting the Promotional Budget and Mix Revlon emphasizes advertising while Avon emphasizes personal selling

26 14- 25 Setting the Promotional Budget and Mix Reaches large, geographically dispersed audiences, often with high frequency Low cost per exposure, though overall costs are high Consumers perceive advertised goods as more legitimate Dramatizes company/brand Builds brand image; may stimulate short-term sales Impersonal; one-way communication Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Nature of Each Promotional Tool

27 14- 26 Setting the Promotional Budget and Mix Most effective tool for building buyers preferences, convictions, and actions Personal interaction allows for feedback and adjustments Relationship-oriented Buyers are more attentive Sales force represents a long- term commitment Most expensive of the promotional tools Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Nature of Each Promotional Tool

28 14- 27 Setting the Promotional Budget and Mix May be targeted at the trade or ultimate consumer Makes use of a variety of formats: premiums, coupons, contests, etc. Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales Stimulates quick response Short-lived Not effective at building long- term brand preferences Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Nature of Each Promotional Tool

29 14- 28 Setting the Promotional Budget and Mix Highly credible Many forms: news stories, news features, events and sponsorships, etc. Reaches many prospects missed via other forms of promotion Dramatizes company or benefits Often the most underused element in the promotional mix Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Nature of Each Promotional Tool

30 14- 29 Setting the Promotional Budget and Mix Many forms: Telephone marketing, direct mail, online marketing, etc. Four characteristics: Nonpublic Nonpublic Immediate Immediate Customized Customized Interactive Interactive Well-suited to highly targeted marketing efforts Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Nature of Each Promotional Tool

31 Promotion mix strategies PUSH PRODUCER RETAILER/ WHOLESALER CONSUMERPRODUCERCONSUMER RETAILER/ WHOLESALER PULL Promotion Activity Promotion Activity Promotion Activity Demand

32 14- 31 Promotion Mix Strategies Push strategy: trade promotions and personal selling efforts push the product through the distribution channels. Push 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. Pull strategy: producers use advertising and consumer sales promotions to generate strong consumer demand for products. Setting the Promotional Budget and Mix


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