1. Chapter 6 Integrated Marketing Communication Strategy and Management

2. 2 Marketing Communication Communication is necessary to inform:  availability of an offering  unique benefits of the offering  where and how to obtain and use the offering Marketing Communication Mix  advertising  personal selling  sales promotion

3. 3 Integrated Communication Strategy Framework u What are the information requirements of target markets? u What are the objectives of the strategy? u Can some of the communication activities be combined? u What should the budget be and how should resources be allocated? u How should it be timed and scheduled? u How should it be evaluated?

4. 4 Information Requirements in Purchase Decisions Unawareness Knowledge Preference Purchase Purchase Process Model

5. 5 Reasonable Communication Objectives  Primary Demand - early in the life cycle  Selective Demand - later in the life cycle Objectives must be:  consistent  quantifiable  attainable

6. 6 Integrated Marketing Communication Mix Factors to be considered:  Information Requirements of Buyers  which communication tool has the greatest impact on prospective buyers?  Nature of the Offering  advertising, personal selling, or sales promotion?  Target-Market Characteristics  determines communications strategy  Organizational Capacity  make-or-buy decisions

7. 7 Push versus Pull Communication Strategy Push -- directed at distribution channel Used when:  there are easily identifiable buyers  offering is complex  purchase is perceived as risky  offering is in early stage of life cycle  funds are limited for consumer-directed advertising

8. 8 Pull -- directed at consumers Used when:  favorable primary demand for product category  product can be differentiated  product has hidden qualities or benefits that can be communicated through advertising  strong emotional buying motives involved Push versus Pull Communication Strategy

9. 9 Communication Budgeting  percentage-of-sales approach  competitive-parity approach  use all available funds approach  objective-task approach

10. 10 Communication Budget Allocation Advertising Budget Allocation media selection cost reach frequency audience characteristics scheduling considerations e.g., blitz, pulse

11. 11 Sales-Force Budget Allocation NS =number of sales people NC =number of customers (actual or potential) FC =necessary frequency of customer calls LC =length of average customer call, including travel time TA =average available selling time per salesperson (less administrative time) NC x FC x LC TA NS =