Presentation on theme: "Definition Marketing Communications Mix"— Presentation transcript:
0 Integrated Marketing Communication Strategy Chapter 15
1 Definition 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.
2 Integrated Marketing Communications The Marketing Communications Environment is Changing:Mass markets have fragmented, causing marketers to shift away from mass marketingMedia fragmentation is increasing as wellImprovements in information technology are facilitating segmentation
3 Integrated 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
4 Integrated Marketing Communications The Need for Integrated Marketing CommunicationsThe Web alone cannot be used to build brands; brand awareness potential is limitedBest bet is to wed traditional branding efforts with the interactivity and service capabilities of online communicationsWeb efforts can enhance relationships
5 Integrated Marketing Communications The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.IMC implementation often requires the hiring of a MarCom manager.
6 The Communication Process Communications efforts should be viewed from the perspective of managing customer relationships over time.The communication process begins with an audit of all potential contacts.Effective communication requires knowledge of how communication works.
7 The Communication Process Elements in the Communication ProcessSenderMessageMediaReceiverEncodingDecodingResponseFeedbackNoise
8 Developing 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 itStep 2: Determining Communication ObjectivesSix buyer readiness stages
9 Developing Effective Communication Buyer-Readiness StagesAwarenessKnowledgeLikingPreferenceConvictionPurchase
10 Developing Effective Communication Step 3: Designing a MessageAIDA framework guides message designMessage content contains appeals or themes designed to produce desired resultsRational appealsEmotional appealsLove, pride, joy, humor, fear, guilt, shameMoral appeals
11 Developing Effective Communication Step 3: Designing a MessageMessage Structure: Key decisions are required with respect to three message structure issues:Whether or not to draw a conclusionOne-sided vs. two-sided argumentOrder of argument presentationMessage Format: Design, layout, copy, color, shape, movement, words, sounds, voice, body language, dress, etc.
12 Developing 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
13 Developing Effective Communication Step 5: Selecting the Message SourceHighly credible sources are more persuasiveA poor spokesperson can tarnish a brandStep 6: Collecting FeedbackRecognition, recall, and behavioral measures are assessedMay suggest changes in product/promotion
14 Setting 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
15 Setting 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
16 Setting the Promotional Budget and Mix Setting the Overall Promotion MixDetermined by the nature of each promotion tool and the selected promotion mix strategy
17 Setting the Promotional Budget and Mix Promotion ToolsReaches 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
18 Setting the Promotional Budget and Mix Promotion ToolsMost 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
19 Setting the Promotional Budget and Mix Promotion ToolsMay 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
20 Setting the Promotional Budget and Mix Promotion ToolsHighly 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
21 Setting the Promotional Budget and Mix Promotion ToolsMany forms: Telephone marketing, direct mail, online marketing, etc.Four distinctive characteristics:NonpublicImmediateCustomizedInteractiveWell-suited to highly targeted marketing effortsAdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing
22 Setting 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.
23 Setting the Promotional Budget and Mix Checklist: Integrating the Promotion MixAnalyze trends (internal and external)Audit communications spendingIdentify all points of contactTeam up in communications planningMake all communication elements compatibleCreate performance measuresAppoint an IMC manager
24 Socially Responsible Marketing Communications Advertising and Sales PromotionAvoid false and deceptive advertisingBait and switch advertisingTrade promotions can not favor certain customers over othersUse advertising to promote socially responsible programs and actions
25 Socially Responsible Marketing Communications Personal SellingSalespeople must follow the rules of “fair competition”Three day cooling-off rule protects ultimate consumers from high pressure tacticsBusiness-to-business sellingBribery, industrial espionage, and making false and disparaging statements about a competitor are forbidden