Presentation on theme: "Integrated Marketing Communication Strategy"— Presentation transcript:
1 Integrated Marketing Communication Strategy Chapter 14Integrated Marketing Communication Strategy
2 Marketing Communication Mix or Promotion Mix AdvertisingPersonal SellingProduct’s DesignDirect MarketingProduct’s PriceStores that Sell the ProductPublic RelationsSales PromotionProduct’s Package
3 The Changing Communications Environment Market Fragmentation Led toMedia FragmentationMarketers Have ShiftedAway From MassMarketingLess BroadcastingTwo Factorsare Changing the Face of Today’sMarketing Communications:Improvements inInformation TechnologyHas Led toSegmented MarketingMore Narrowcasting
4 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.
5 A View of the Communications Process Marketers View Communications as the Management of the Customer Relationship Over Time Through the Following Stages:PresellingSellingPost-ConsumptionConsuming
6 Elements in the Communication Process (Fig. 14.2)
7 Key Factors in Good Communication Sellers Must DevelopFeedback Channels toAssess Audience’sResponse toMessages.Sellers Need toKnow What AudiencesThey Wish to Reachand ResponseDesired.Sellers Must be Goodat Encoding MessagesThat Target AudienceCan Decode.Sellers Must SendMessages ThroughMedia that ReachTarget Audiences
8 Steps in Developing Effective Communication Step 1. Identifying the Target AudienceStep 2. Determining the Communication ObjectivesBuyer Readiness StagesSteps in Developing Effective CommunicationAwarenessKnowledgeLikingPreferenceConvictionPurchase
9 Steps in Developing Effective Communication Step 3. Designing a MessageSteps in Developing Effective CommunicationMessage ContentRational AppealsEmotional AppealsMoral AppealsMessage StructureDraw ConclusionsArgument TypeArgument OrderMessage FormatHeadline, Illustration,Copy, & ColorBody LanguageAttentionInterestDesireAction
10 Steps in Developing Effective Communication Step 5. Selecting the Message SourceNonpersonal CommunicationChannelsStep 4. Choosing MediaPersonal CommunicationStep 6. Collecting Feedback
11 Setting the Total Promotion Budget One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on Promotion.AffordableBased on What theCompany Can AffordPercentage of SalesBased on a Certain Percentageof Current or Forecasted SalesObjective-and-TaskBased on DeterminingObjectives & Tasks, ThenEstimating CostsCompetitive-ParityBased on the Competitor’sPromotion Budget
12 Setting the Promotion Mix AdvertisingPersonalSellingSalesPromotionPublicRelationsDirectMarketingReach Many Buyers, Repeat Message Many Times, Impersonal, ExpensivePersonal Interaction, Relationship Building, Most Expensive Promo ToolWide Assortment of Tools, Rewards Quick Response, Efforts Short-LivedVery Believable, Dramatize a Company or Product, UnderutilizedNonpublic, Immediate, Customized, Interactive
13 Promotion Mix Strategies Strategy Selected Depends on:Type of Product-Market &Product Life-Cycle StagePush StrategyPull StrategyStrategy 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.
14 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 company’s communications well integrated?
15 Socially Responsible Marketing Communication Advertising and Sales PromotionCompanies must avoid false and deceptive advertising.Sellers must avoid bait-and-switch advertising.Trade promotion activities are also closely regulated.Personal SellingSalespeople must follow the rules of “fair competition”.Three-day cooling-off ruleSalespeople must not disparage competitors.
16 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.
17 Advertising, Sales Promotion, and Public Relations Chapter 15Advertising, Sales Promotion, and Public Relations
18 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, andSocial agencies.
19 What is Advertising?Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.
20 Major Advertising Decisions (Fig. 15.1) Message DecisionsMessage StrategyMessage ExecutionObjectives SettingCommunication objectivesSales ObjectivesBudget DecisionsAffordable ApproachPercent of salesCompetitive parityObjective and taskCampaign EvaluationCommunication ImpactSales ImpactMedia DecisionsReach, Frequency, ImpactMajor Media TypesSpecific Media TypesMedia Timing
21 Setting Advertising Objectives Informative AdvertisingInform Consumers orBuild Primary Demandi.e CD PlayersPersuasive AdvertisingBuild Selective Demandi.e Sony CD PlayersAdvertising ObjectiveSpecific Communication TaskAccomplished with a SpecificTarget AudienceDuring a Specific Period of TimeComparison AdvertisingCompares One Brand toAnotheri.e. Avis vs. HertzReminder AdvertisingKeeps Consumers ThinkingAbout a Producti.e. Coca-Cola
22 Developing Advertising Strategy Advertising Strategy Consists of Two Major Elements and Companies are Realizing the Benefits of Planning These Two Elements Jointly.Creating the AdvertisingMessagesSelecting the Advertising Media
23 Developing Advertising Strategy: Creating Ad Messages Plan a Message StrategyGeneral Message to Be Communicated to CustomersDeveloping Advertising Strategy: Creating Ad MessagesDevelop a MessageFocus onCustomer BenefitsCreative Concept“Big Idea”Visualization or PhraseCombination of BothAdvertising AppealsMeaningfulBelievableDistinctive
24 Developing Advertising Strategy: Message Execution Testimonial EvidenceSlice of LifeTurning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.Scientific EvidenceLifestyleTypicalMessageExecutionStylesTechnical ExpertiseFantasyPersonality SymbolMood or ImageMusical
25 Advertising Strategy: Selecting Advertising Media Step 1. Decide on Reach, Frequency,and ImpactStep 2. Choosing Among Major Media TypesMedia Habits of Target Consumers,Nature of the Product, Types of Message, CostAdvertising Strategy: Selecting Advertising MediaStep 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. Magazines.Must Balance Media Cost Against Media Factors:Audience Quality & Attention, Editorial QualityStep 4. Deciding on Media TimingScheduling of Advertising Over the Course of a YearPattern of Ads: Continuity or Pulsing
26 Evaluating Advertising Advertising Program EvaluationEvaluating AdvertisingCommunication EffectsIs the Ad Communicating Well?Sales EffectsIs the Ad Increasing Sales?
27 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.
28 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.
29 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.
30 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, andbuy product ahead.In general, sales promotion should focus on consumer relationship building.
31 Major Consumer Sales Promotion Tools SampleTrial amount of a productCouponsSavings when purchasing specified productsCash RefundsRefund of part of the purchase pricePrice PacksReduced prices marked on the label or packagePremiumsGoods offered free or low cost as an incentive to buy a productAdvertisingSpecialtiesArticles imprinted with an advertiser’s name given as gifts
32 Major Consumer Sales Promotion Tools Patronage RewardsPoint-of-PurchaseContestsSweepstakesGameCash or other rewards for the use of a certain productDisplays and demonstrations that take place at the point of saleConsumers submit an entry to be judgedConsumers submit their names for a drawingPresents consumers with something every time they buy
33 Major Trade Sales Promotion Tools Trade-Promotion ObjectivesPersuade Retailers orWholesalers to Carry a BrandGive a Brand Shelf SpacePromote a Brand inAdvertisingPush a Brand to ConsumersTrade-Promotion ToolsDiscountsAllowances
34 Developing the Sales Promotion Program Decide on the Size of the IncentiveSet Conditions for ParticipationDeveloping the Sales Promotion ProgramDetermine How to Promote andDistribute the Promotion ProgramDetermine the Length of the ProgramEvaluate the Program
35 What is Public Relations? Public Relations Involves Building Good Relations With the Company’s Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate Image, and Handling or Heading Off Unfavorable Rumors, Stories, and Events.
36 Major Public Relations Functions Press Relations or AgentryProduct PublicityPublic AffairsLobbyingInvestor RelationsDevelopmentPublic Relations Departments May Perform Any of All of the Following Functions:
37 Major Public Relations Tools NewsWeb SiteSpeechesPublic Service ActivitiesSpecial EventsCorporate Identity MaterialsWritten MaterialsAudiovisual Materials
38 Major Public Relations Decisions Setting Public Relations ObjectivesChoosing the Public Relations Messagesand VehiclesImplementing the Public Relations PlanEvaluating Public Relations Results
39 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.