1 Chapter 19 Managing Integrated Marketing Communications by PowerPoint byMilton M. PressleyUniversity of New Orleans
2 Kotler on MarketingIntegrated marketing communications is a way of looking at the whole marketing process from the viewpoint of the customer.
3 Chapter Objectives In this chapter, we focus on three major questions: How does communication work?What are the major steps in developing an integrated marketing communications program?Who should be responsible for marketing communication planning?
4 Marketing Communications Mix AdvertisingSales PromotionPublic Relations and PublicityPersonal SellingDirect and Interactive Marketing
5 Table 19.1: Common Communication Platforms The Communication ProcessTable 19.1: Common Communication PlatformsAdvertisingSales PromotionPublic RelationsPersonal SellingDirect MarketingPrint and broadcast adsContests, games, sweepstakes, lotteriesPress kitsSales presentationCatalogsPackaging-outerPremiums and giftsSpeechesSales meetingsMailingsPackaging insertsSamplingSeminarsIncentive programsTelemarketingMotion picturesFairs and trade showsAnnual reportsSamplesElectronic shoppingSee text for complete table
6 Figure 19.1: Elements in the Communication Process
7 The Communication Process Target audience may not receive the intended message for any of three reasons:Selective attentionSelective distortionSelective retention
8 The Communication Process Fiske and Hartley have outlined factors that influence communication:The greater the influence of the communication source, the greater the effect on the recipientCommunication effects are greatest when they are in line with existing opinions, beliefs, and dispositions
9 The Communication Process Communication can produce the most effective shifts on unfamiliar, lightly felt, peripheral issues that do not lie at the core of the recipient’s value system.Communication is more likely to be effective if the source is believed to have expertise, high status, objectivity, or likeability, but particularly if the source has power and can be identified with.The social context, group, or reflective group will mediate the communication and influence whether or not the communication is accepted.
10 Figure 19.2: Steps in Developing Effective Communication
11 Developing Effective Communications Identify the Target AudienceImage analysisFamiliarity scaleFavorability scaleNever Heard ofHeard of OnlyKnow a Little BitKnow a Fair AmountKnow Very WellVery UnfavorableSomewhat UnfavorableIndifferentSomewhat FavorableVery favorable
12 Discussion QuestionSome companies spend a significant portion of their advertising budget on a single high profile event. In recent years, commercial time during the Superbowl broadcast has become such an occasion. While some companies have used such events to launch successful, long-running campaigns, others have seen little benefit from these ads. Can you remember the name of the firm whose critically acclaimed Superbowl ad featured cowboys herding cats?
14 Developing Effective Communications Semantic differentialDeveloping a set of relevant dimensionsReducing the set of relevant dimensionsAdministering the instrument to a sample of respondentsAveraging the resultsChecking on the image variance
15 Figure 19.4: Images of Three Hospitals (Semantic Differential)
16 Developing Effective Communications Determine the Communication ObjectiveCognitiveAffectiveBehavioralResponse-hierarchy models
22 Developing Effective Communications Select the Communication ChannelsPersonal Communication ChannelsAdvocate channelsExpert channelsSocial channels
23 Developing Effective Communications Steps to stimulate personal influence channels to work on the companies’ behalfDevote extra effort to influential individuals and companiesCreate opinion leaders by providing the product at attractive terms to certain peopleWork through community influentials such as local disk jockeys, class presidents, and presidents of women’s organizationsUse influential or believable people in testimonial advertisingDevelop advertising with high “conversation value”
24 Developing Effective Communications Develop word-of-mouth referral channels to build businessEstablish an electronic forumUse viral marketingNonpersonal Communication ChannelsMediaAtmospheresEventsSocial-structure view of interpersonal communicationLiaisonBridge
25 Developing Effective Communications Establish the Total Marketing Communications budgetAffordable MethodPercentage-of-Sales MethodCompetitive-Parity Method
26 Developing Effective Communications Objective-and-Task MethodEstablish the market-share goalDetermine the percentage of the market that should be reached by advertisingDetermine the percentage of aware prospects that should be persuaded to try the brandDetermine the number of advertising impressions per 1 percent trial rateDetermine the number of gross rating points that would have to be purchasedDetermine the necessary advertising budget on the basis of the average cost of buying a gross rating point
27 Deciding on the Marketing Communications Mix The Promotional toolsAdvertisingGeneral Qualities:Public presentationPervasivenessAmplified expressivenessImpersonalitySales PromotionBenefits:CommunicationIncentiveInvitation
28 Deciding on the Marketing Communications Mix Public Relations and PublicityDistinctive qualities:High credibilityAbility to catch buyers off guardDramatizationPersonal SellingPersonal confrontationCultivationResponse
29 Deciding on the Marketing Communications Mix Direct MarketingDistinctive qualities:NonpublicCustomizedUp-to-dateInteractive
30 Deciding on the Marketing Communications Mix Factors in setting the Marketing Communications MixType of Product MarketAdvertising’s role in business markets:Advertising can provide an introduction to the company and its productsIf the product embodies new features, advertising can explain themReminder advertising is more economical than sales calls
31 Deciding on the Marketing Communications Mix Advertisements offering brochures and carrying the company’s phone number are an effective way to generate leads for sales representatives.Sales representatives can use tear sheets of the company’s ads to legitimize their company and products.Advertising can remind customers of how to use the product and reassure them about their purchase.
32 Deciding on the Marketing Communications Mix Levitt found that:Corporate advertising that can build up the company’s reputation will help the sales representativesSales representatives from well-known firms have an edge, but a highly effective presentation from a lesser known company’s rep can overcome that edgeCompany reputation helps most when the product is complex
33 Deciding on the Marketing Communications Mix Gary Lilien found that:The average industrial company sets its marketing budget at 7 percent of salesIndustrial companies spent a higher-than-average amount on advertising if their products had higher quality, uniqueness, or purchase frequency, or if there was customer growthIndustrial companies set a higher-than-average marketing budget when their customers were more dispersed or the customer growth rate was higher
34 Deciding on the Marketing Communications Mix Effectively trained consumer sales force can make four important contributions:Increased stock positionEnthusiasm buildingMissionary sellingKey account managementBuyer-Readiness Stage
35 Figure 19.6: Cost-Effectiveness of Different Promotional Tools
36 Deciding on the Marketing Communications Mix Product Life-Cycle StageMeasure the Communications’ Result
37 Figure 19.7: Current Consumer States for Two Brands
38 Discussion QuestionWhile traditional communication methods make measurement of results difficult, Internet communications offer different, more immediate measures. How can analysis of web site visitors’ behavior be used to evaluate the effectiveness of a company’s marketing communications strategy?
39 Managing the Integrated Marketing Communications Process Integrated Marketing Communications (IMC)