Objectives Know the tools of the marketing communications mix.
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0 Integrated Marketing Communication Strategy Chapter 15
1 Objectives Know the tools of the marketing communications mix. Understand the process and advantages of integrated marketing communications.Learn the steps in developing effective marketing communications.Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.
2 UPS UPS is a $31 billion corporate giant UPS wanted to reposition itself as a supply chain solutions providerDeveloped new ad theme based on customer inputImplemented, “What Can Brown Do for You?” campaignRealigned its sales and marketing organizationAds, web sites, and salespeople deliver message daily
3 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.
4 Integrated 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
5 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
6 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
8 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
9 Saturn’s advertising program is integrated with sales efforts and website communications
10 The Communication Process Communications efforts should be viewed from the perspective of managing customer relationships over timeThe communication process begins with an audit of all potential contactsEffective communication requires knowledge of how communication works
11 Communication Process Figure 15-2:Elements in theCommunication Process
12 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 it
13 Developing Effective Communication Step 2: Determining Communication ObjectivesObjectives may be set to move buyers through the six readiness stages
17 Humor has long been used in the marketing of soft drinks and beer. These ads use humor to attract attention and invoke curiosity.
18 Developing 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
19 Discussion QuestionContrast, novelty, and creative implementations such as pop-up ads or scratch n’ sniff ads are examples of message formats that successfully attract attention.What are some other examples of successful message formats that use novelty and creativity to attract attention and deliver their message?
20 Developing Effective Communication Step 4: Choosing MediaPersonal vs. nonpersonal communication channels
21 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
22 Developing Effective Communication Step 5: Selecting the Message SourceHighly credible sources are more persuasiveA poor choice of spokesperson can tarnish a brand
23 Developing Effective Communication Step 6: Collecting FeedbackRecognition, recall, and behavioral measures are assessedMay suggest changes in product/promotion
24 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
25 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
26 Setting 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
27 Setting 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
28 Setting 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
29 Setting 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
30 Setting 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
31 Setting 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
32 Push vs. Pull Promotion Strategy Figure 15-4:Push vs. Pull Promotion Strategy
33 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.
34 Discussion QuestionHave you noticed TV ads for prescription drugs? Pharmaceutical firms are now using pull-oriented marketing techniques.Does such a strategy help patients or does it interfere with the doctor- patient relationship?
35 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
36 Socially Responsible 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
37 State Farm uses advertising to promote socially responsible programs and actions.
38 Socially Responsible Communications Personal SellingSalespeople must follow the rules of “fair competition”Three day cooling-off rule protects ultimate consumers from high pressure tactics
39 Socially Responsible Communications Personal SellingBusiness-to-business sellingBribery, industrial espionage, and making false and disparaging statements about a competitor are forbidden