1. 1 Integrated Marketing Communications Strategy Chapter 14

2. Definition  Marketing communications The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell.  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. Goal 1: Know the tools of the marketing communications mix

3. Integrated marketing communications Consistent,clear,and compelling company and product Messages. Consistent,clear,and compelling company and product Messages. Advertising Personal selling Personal selling Sales promotion Sales promotion Public relations Public relations Direct marketing Direct marketing Carefully blended mix of promotion tools

4. The Changing Communications Environment Two Factors are Changing the Face of Today’s Marketing Communications: Improvements in Information Technology Has Led to Segmented Marketing More Narrowcasting Marketers Have Shifted Away From Mass Marketing Less Broadcasting Market Fragmentation Led to Media Fragmentation

5. Integrated Marketing Communications  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. Goal 1: Know the tools of the marketing communications mix

6. Integrated Marketing Communications  The Need for Integrated Marketing Communications Conflicting messages from different sources or promotional approaches can confuse company or brand images  The problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently Goal 1: Know the tools of the marketing communications mix

7. Promotional Mix  Advertising  Personal Selling  Sales Promotion  Public Relations  Direct Marketing  Reaches large, geographically dispersed audiences, often with high frequency  Low cost per exposure, though overall costs are high  Consumers perceive advertised goods as more legitimate  Dramatizes company/brand  Builds brand image; may stimulate short-term sales  Impersonal; one-way communication Promotion Tools Goal 4: Understand methods for setting budgets and designing the mix Any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor.

8. Promotional Mix  Advertising  Personal Selling  Sales Promotion  Public Relations  Direct Marketing  Most effective tool for building buyers’ preferences, convictions, and actions  Personal interaction allows for feedback and adjustments  Relationship oriented  Buyers are more attentive  Sales force represents a long-term commitment  Most expensive of the promotional tools Promotion Tools Goal 4: Understand methods for setting budgets and designing the mix Personal presentation by the firm’s sales force for the perpose of making sales and building customer relationship.

9. Promotional Mix  Advertising  Personal Selling  Sales Promotion  Public Relations  Direct Marketing  Makes use of a variety of formats: premiums, coupons, contests, etc.  Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales  Stimulates quick response  Short lived  Not effective at building long-term brand preferences Promotion Tools Goal 4: Understand methods for setting budgets and designing the mix Short-term incentives to encourage the purchase or sale of a product or service.

10. Promotional Mix  Advertising  Personal Selling  Sales Promotion  Public Relations  Direct Marketing  Highly credible  Many forms: news stories, news features, events and sponsorships, etc.  Reaches many prospects missed via other forms of promotion  Dramatizes company or benefits  Often the most underused element in the promotional mix Promotion Tools Goal 4: Understand methods for setting budgets and designing the mix 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 rumor stories and events.

11. Promotional Mix  Advertising  Personal Selling  Sales Promotion  Public Relations  Direct Marketing  Many forms: Telephone marketing, direct mail, online marketing, etc.  Four distinctive characteristics: Nonpublic Immediate Customized Interactive  Well-suited to highly targeted marketing efforts Promotion Tools Goal 4: Understand methods for setting budgets and designing the mix Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting consumer relationships.

12. Communication Platforms Advertising  Print and broadcast ads  Packaging inserts  Motion pictures  Brochures and booklets  Posters  Billboards  POP displays  Logos  Videotapes Sales Promotion  Contests, games, sweepstakes  Premiums  Sampling  Trade shows, exhibits  Coupons  Rebates  Entertainment  Continuity programs

13. Communication Platforms Personal Selling  Sales presentations  Sales meetings  Incentive programs  Samples  Fairs and trade shows Public Relations  Press kits  Speeches  Seminars  Annual reports  Charitable donations  Publications  Community relations  Lobbying  Identity media  Company magazine

14. Communication Platforms Direct Marketing  Catalogs  Mailings  Telemarketing  Electronic shopping  TV shopping  Fax mail  E-mail  Voice mail  Blogs  Websites

15. Slide 18-15 The promotional mix

16. Slide 18-23 Factors that influence the use of promotional tools

17. Slide 18-32  Stages of the Buying Process  Prepurchase Stage  Purchase Stage  Postpurchase Stage INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX

18. Slide 18-33 How the importance of promotional elements varies during the stages of consumer’s purchase decision

19. Elements in the Communication Process

20. Steps in Developing Effective Communication Identifying the Target Audience Determining the communication objectives Determining the communication objectives Designing a Message Choosing Media Selecting the Message Source Collecting Feedback

21. Developing Effective Communication  Step 1: Identifying the Target Audience Affects decisions related to what, how, when, and where message will be said, as well as who will say it  Step 2: Determining Communication Objectives Six Buyer readiness stages Goal 3: Learn the steps in developing effective marketing communications Purchase ConvictionPreferenceLiking KnowledgeAwareness

22. Designing a message Message content Message structure & Message format Message structure & Message format What to say? How to say?

23. Developing Effective Communication  Step 3: Designing a Message AIDA (Attention, Interest, Desire and Action) framework guides message design Message content contains appeals or themes designed to produce desired results  Rational appeals  Emotional appeals  Love, pride, joy, humor, fear, guilt, shame  Moral appeals Goal 3: Learn the steps in developing effective marketing communications

24. Developing Effective Communication  Step 3: Designing a Message Message Structure: Key decisions are required with respect to three message structure issues:  Whether or not to draw a conclusion  One-sided vs. two-sided argument  Order of argument presentation Message Format: Design, layout, copy, color, shape, movement, words, sounds, voice, body language, dress, etc. Goal 3: Learn the steps in developing effective marketing communications

25. Choosing Media Personal communication channel Personal communication channel Word-of-mouth influence Word-of-mouth influence Non-personal communication channel Non-personal communication channel

26. Developing Effective Communication  Step 4: Choosing Media Personal communication channels  Includes face-to-face, phone, mail, and Internet chat communications  Word-of-mouth influence is often critical Nonpersonal communication channels  Includes media, atmosphere, and events Goal 3: Learn the steps in developing effective marketing communications

27. Developing Effective Communication  Step 5: Selecting the Message Source Highly credible sources are more persuasive A poor spokesperson can tarnish a brand  Step 6: Collecting Feedback Recognition, recall, and behavioral measures are assessed May suggest changes in product/promotion Goal 3: Learn the steps in developing effective marketing communications

28. Setting the Promotional Budget  Setting the Total Promotional Budget Affordability Method  Budget is set at a level that a company can afford Percentage-of-Sales Method  Past or forecasted sales may be used Competitive-Parity Method  Budget matches competitors’ outlays Goal 4: Understand methods for setting budgets and designing the mix

29. Setting the Promotional Budget  Setting the Total Promotional Budget Objective-and-Task Method  Specific objectives are defined  Tasks required to achieve objectives are determined  Costs of performing tasks are estimated, then summed to create the promotional budget Goal 4: Understand methods for setting budgets and designing the mix

30. Slide 18-47 The objective and task approach

31. Setting the Promotional Mix  Setting the Overall Promotion Mix Determined by the nature of each promotion tool and the selected promotion mix strategy Goal 4: Understand methods for setting budgets and designing the mix

32. Slide 18-46 US Measured Advertising Spending by Media

33. Setting the Promotional Budget and Mix  Promotion Mix Strategies Push 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. Goal 4: Understand methods for setting budgets and designing the mix

34. Push versus pull promotion strategy  Producer Retailer & wholesalers Retailer & wholesalers Consumers Producer Retailer & wholesalers Retailer & wholesalers Consumers Producer marketing activities Reseller marketing activities Demand Producer marketing activities Push strategy Pull strategy Real Marketing 14.2

35. Socially Responsible Communications  Personal Selling Salespeople must follow the rules of “fair competition” Three-day cooling-off rule protects ultimate consumers from high pressure tactics Business-to-business selling  Bribery, industrial espionage, and making false and disparaging statements about a competitor are forbidden Goal 4: Understand methods for setting budgets and designing the mix

36. Advertising, Personal selling. Public relations & Sales Promotions Chapter 15 & 16

37. Definition  Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

38. Major Advertising Decisions Objectives Setting Communication objectives Sales Objectives Budget Decisions Affordable Approach Percent of sales Competitive parity Objective and task Message Decisions Message Strategy Message Execution Media Decisions Reach, Frequency, Impact Major Media Types Specific Media Types Media Timing Campaign Evaluation Communication Impact Sales Impact

39. Four important decisions in developing advertising program  Setting advertising objectives  Setting the advertising budget  Developing the advertising strategy  Evaluating advertising campaigns

40. Setting Advertising Objectives  Advertising objectives can be classified by primary purpose: Inform  Introducing new products, suggesting new uses, informing price change etc. Persuade  Becomes more important as competition increases [Sony offers best quality]  Comparative advertising [We’re number two, so we try harder] Remind  Most important for mature products [Coca-Cola]  Reminding customers where to buy it

41. Informing

42.  Several factors should be considered when setting the ad budget: Stage in the PLC: New products, big ad budget to aware and persuade; mature brands - low Market share: building the market or taking market share requires large ad budget. Level of competition: many competitors - large Ad clutter: high - large Degree of brand differentiation: undifferentiated brand – heavy ad budget Setting the advertising budget

43. Developing advertising strategy  Two major elements: Creating ad messages Selecting ad media  Creating ad messages: increase number of TV channels, average ad expose numbers, remote control etc. Message strategy: what general message to be communicated?  Advertising appeal: Three characteristics: appeals must be  Meaningful: pointing out benefits  Believable: deliver promised benefits  Distinctive: how better than the competing brands?

44. Developing advertising strategy Message execution: Turn big idea into actual ad execution that will capture target market’s attention and interest. Creative people must find the best style, tone, words, and format for executing the message.  Many execution styles: slice of life, musical, personality symbol, scientific evidence.  Tone: +ve or –ve tone  Words: “Buy cheap socks and you’ll pay through the toes” Hanes Socks.  Format: Illustration, headline, copy

45.  Select advertising media: Major steps in media selection are Decide on level of reach, frequency and impact: Choose among the major media types by considering:  Target consumer media habits, nature of the product: fashion are best advertised in color magazines, auto performance on TV  Types of messages: major sale – news paper, lots of technical data - magazine, and  Costs: the cost of reaching 1,000 people using the media. Select specific media vehicles: specific media within each general media type. nTV, ATN Bangla; Ittefaq, Times, Daily Star, Independence. Decide on media timing: Hallmark – occasions, Even continuity or uneven Pulsing. Developing advertising strategy

46. Major Media Types Advertising  Newspapers  Television  Direct Mail  Radio  Magazines  Outdoor  Internet

47. Evaluating Advertising  Measuring communications effects Is the intended message being communicated effectively and to the intended audience?  Measuring sales effect Has the campaign generated the intended sales growth? (much more difficult to measure)

48. Public Relations  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. Definition

49. Major functions of public relations  Press Relations or Agency - creating and placing newsworthy information in the media  Product Publicity - publicizing specific products  Public Affairs - building and maintaining national or local community relations (e.g. sponsoring concerts)  Lobbying - building and maintaining relations with legislators and government officials

50. Major functions of public relations  Investor Relations - maintaining relationships with shareholders and others in the financial community  Development - maintaining relationships with donors or members of not-for-profit organizations  Crisis Management - helping a company in the media spotlight because of a problem with product, employees, or business

51.  Personal selling Personal representation by the firm’s sales force for the purpose of making sales and building customer relationship One of the oldest professions in the world Today, most salespeople are well-educated, well-trained professionals who work to build and maintain long-term relationships with customers. Definition

52. The Role of the Sales Force Sales Force Serves as a Critical Link Between a Company and its Customers Since They: Represent Customers to the Company to Produce Customer Satisfaction Represent the Company to Customers to Produce Company Profit

53. Major Steps in Effective Selling Prospecting and Qualifying Preapproach Approach Presentation and Demonstration Handling objections Closing Follow-up

54. Prospecting Salesperson Identifies Qualified Potential Customers. Preapproach Salesperson Learns as Much as Possible About a Prospective Customer and About his/her Offer Before Making a Sales Call. Qualifying Process of Identifying Good Prospects and Screening Out Poor Ones. Steps in the Selling Process Approach Salesperson Meets the Buyer For the First Time.

55. Presentation and Demonstration Presentation and Demonstration Salesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach. Dislike: pushy, late, deceitful, unprepared, disorganized Value most: good listening, thorough, honesty, dependability, empathy, respect Salesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach. Dislike: pushy, late, deceitful, unprepared, disorganized Value most: good listening, thorough, honesty, dependability, empathy, respect Closing Salesperson Asks the Customer for an Order. Handling Objections Handling Objections Salesperson Seeks Out, Clarifies, and Overcomes Customer Objections to Buying. Steps in the Selling Process Follow-Up Occurs After the Sale and Ensures Customer Satisfaction and Repeat Business.

56. Sales force structure Sales force structure Territorial sales force structure Territorial sales force structure Product sales force structure Product sales force structure Customer sales force structure Customer sales force structure Sales force structure

57.  Sales Promotion Short-term incentives to encourage the purchase or sale of a product or service. Can be targeted at final buyers, retailers and wholesalers, business customers, and the sales force. Definition

58. Consumer Promotion Tools  Samples: Lifebuoy mini pack shampoo.  Coupon: certificates, save $10 when you purchase with certificates  Cash Refunds (Rebates): Dell, mailing rebates  Price packs (cents-off deals): reduced price marked on the label or package. “two for the price of one”  Contests: suggestions, filling up essay, Games etc.

59. Consumer Promotion Tools  Advertising Specialties: articles imprinted with advertiser’s name. pens, calendars, key rings, matches, T shirts, caps, coffee mugs.  Premiums: goods offered either free or at low cost. (Gold or silver)  Patronage Rewards: frequent flier-programs  Point-of-Purchase Communications: Display at pop. Big Lipstick, Burger picture.