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Integrated Marketing Communication Strategy

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Presentation on theme: "Integrated Marketing Communication Strategy"— Presentation transcript:

1 Integrated Marketing Communication Strategy
Chapter 14 Integrated Marketing Communication Strategy

2 Marketing Communication Mix or Promotion Mix
Advertising Personal Selling Product’s Design Direct Marketing Product’s Price Stores that Sell the Product Public Relations Sales Promotion Product’s Package

3 The Changing Communications Environment
Market Fragmentation Led to Media Fragmentation Marketers Have Shifted Away From Mass Marketing Less Broadcasting Two Factors are Changing the Face of Today’s Marketing Communications: Improvements in Information Technology Has Led to Segmented Marketing More 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: Preselling Selling Post- Consumption Consuming

6 Elements in the Communication Process (Fig. 14.2)

7 Key Factors in Good Communication
Sellers Must Develop Feedback Channels to Assess Audience’s Response to Messages. Sellers Need to Know What Audiences They Wish to Reach and Response Desired. Sellers Must be Good at Encoding Messages That Target Audience Can Decode. Sellers Must Send Messages Through Media that Reach Target Audiences

8 Steps in Developing Effective Communication
Step 1. Identifying the Target Audience Step 2. Determining the Communication Objectives Buyer Readiness Stages Steps in Developing Effective Communication Awareness Knowledge Liking Preference Conviction Purchase

9 Steps in Developing Effective Communication
Step 3. Designing a Message Steps in Developing Effective Communication Message Content Rational Appeals Emotional Appeals Moral Appeals Message Structure Draw Conclusions Argument Type Argument Order Message Format Headline, Illustration, Copy, & Color Body Language Attention Interest Desire Action

10 Steps in Developing Effective Communication
Step 5. Selecting the Message Source Nonpersonal Communication Channels Step 4. Choosing Media Personal Communication Step 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. Affordable Based on What the Company Can Afford Percentage of Sales Based on a Certain Percentage of Current or Forecasted Sales Objective-and-Task Based on Determining Objectives & Tasks, Then Estimating Costs Competitive-Parity Based on the Competitor’s Promotion Budget

12 Setting the Promotion Mix
Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive Personal Interaction, Relationship Building, Most Expensive Promo Tool Wide Assortment of Tools, Rewards Quick Response, Efforts Short-Lived Very Believable, Dramatize a Company or Product, Underutilized Nonpublic, Immediate, Customized, Interactive

13 Promotion Mix Strategies
Strategy Selected Depends on: Type of Product-Market & Product Life-Cycle Stage Push Strategy Pull Strategy Strategy 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 Promotion Companies must avoid false and deceptive advertising. Sellers must avoid bait-and-switch advertising. Trade promotion activities are also closely regulated. Personal Selling Salespeople must follow the rules of “fair competition”. Three-day cooling-off rule Salespeople 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 15 Advertising, 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, and Social 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 Decisions Message Strategy Message Execution Objectives Setting Communication objectives Sales Objectives Budget Decisions Affordable Approach Percent of sales Competitive parity Objective and task Campaign Evaluation Communication Impact Sales Impact Media Decisions Reach, Frequency, Impact Major Media Types Specific Media Types Media Timing

21 Setting Advertising Objectives
Informative Advertising Inform Consumers or Build Primary Demand i.e CD Players Persuasive Advertising Build Selective Demand i.e Sony CD Players Advertising Objective Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time Comparison Advertising Compares One Brand to Another i.e. Avis vs. Hertz Reminder Advertising Keeps Consumers Thinking About a Product i.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 Advertising Messages Selecting the Advertising Media

23 Developing Advertising Strategy: Creating Ad Messages
Plan a Message Strategy General Message to Be Communicated to Customers Developing Advertising Strategy: Creating Ad Messages Develop a Message Focus on Customer Benefits Creative Concept “Big Idea” Visualization or Phrase Combination of Both Advertising Appeals Meaningful Believable Distinctive

24 Developing Advertising Strategy: Message Execution
Testimonial Evidence Slice of Life Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest. Scientific Evidence Lifestyle Typical Message Execution Styles Technical Expertise Fantasy Personality Symbol Mood or Image Musical

25 Advertising Strategy: Selecting Advertising Media
Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Media Habits of Target Consumers, Nature of the Product, Types of Message, Cost Advertising Strategy: Selecting Advertising Media Step 3. Selecting Specific Media Vehicles Specific Media Within a Given Type, i.e. Magazines. Must Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality Step 4. Deciding on Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

26 Evaluating Advertising
Advertising Program Evaluation Evaluating Advertising Communication Effects Is the Ad Communicating Well? Sales Effects Is 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, and buy product ahead. In general, sales promotion should focus on consumer relationship building.

31 Major Consumer Sales Promotion Tools
Sample Trial amount of a product Coupons Savings when purchasing specified products Cash Refunds Refund of part of the purchase price Price Packs Reduced prices marked on the label or package Premiums Goods offered free or low cost as an incentive to buy a product Advertising Specialties Articles imprinted with an advertiser’s name given as gifts

32 Major Consumer Sales Promotion Tools
Patronage Rewards Point-of-Purchase Contests Sweepstakes Game Cash or other rewards for the use of a certain product Displays and demonstrations that take place at the point of sale Consumers submit an entry to be judged Consumers submit their names for a drawing Presents consumers with something every time they buy

33 Major Trade Sales Promotion Tools
Trade-Promotion Objectives Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers Trade-Promotion Tools Discounts Allowances

34 Developing the Sales Promotion Program
Decide on the Size of the Incentive Set Conditions for Participation Developing the Sales Promotion Program Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program Evaluate 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 Agentry Product Publicity Public Affairs Lobbying Investor Relations Development Public Relations Departments May Perform Any of All of the Following Functions:

37 Major Public Relations Tools
News Web Site Speeches Public Service Activities Special Events Corporate Identity Materials Written Materials Audiovisual Materials

38 Major Public Relations Decisions
Setting Public Relations Objectives Choosing the Public Relations Messages and Vehicles Implementing the Public Relations Plan Evaluating 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.

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