1. Copyright © 2003 Prentice-Hall, Inc. 19-1 Chapter 19 Managing Integrated Marketing Communications by PowerPoint by Milton M. Pressley University of New Orleans

2. Copyright © 2003 Prentice-Hall, Inc. 19-2 Marketing Communication Mix A company’s total marketing communication mix consists of a specific blend of advertising, personal selling, sales promotion, public relations and direct marketing tools that the company uses to pursue its marketing and advertising objectives

3. Copyright © 2003 Prentice-Hall, Inc. 19-3 Marketing Communications Mix  Advertising: Any paid form of non-personal presentation & promotion of ideas, goods or services by an identified sponsor.  Sales Promotion: Short-term incentives to encourage the purchase or sale of a product or service  Public Relations and Publicity: Building good relations with company’s various publics, building a good corporate image.  Personal Selling: Personal presentation by the firm’s salesforce for the purpose of making sales or building relationships.  Direct and Interactive Marketing: Direct communications with carefully targeted individual consumers to obtain an immediate response and lasting relationships with customers by use of telephone, or e-mail.

4. Copyright © 2003 Prentice-Hall, Inc. 19-4 Table 19.1: Common Communication Platforms Advertising Sales Promotion Public Relations Personal Selling Direct Marketing Print and broadcast ads Contests, games,coupon, lotteries Press kits Sales presentation Catalogs Packaging- outer Premiums and gifts Speeches Sales meetings Mailings Packaging inserts SamplingSeminars Incentive programs Telemarketing Motion pictures Fairs and trade shows Annual reports Samples Electronic shopping See text for complete table The Communication Process

5. Copyright © 2003 Prentice-Hall, Inc. 19-5 The Communication Process  It is an interactive dialogue between the company and its customers that takes place during the pre- selling, selling, consuming and post-consuming stages.  Apart from specific communication platforms, the company communicates through the product’s styling, package’s shape and colour, sales person’s manner and dress, place’s décor and the company’s stationary.

6. Copyright © 2003 Prentice-Hall, Inc. 19-6 Figure 19.1: Elements in the Communication Process

7. Copyright © 2003 Prentice-Hall, Inc. 19-7 The Communication Process  Target audience may not receive the intended message for any of three reasons:  Selective attention: People are bombarded with 1600 commercial messages a day out of which 80 are noticed and 12 provoke some response. Ads with bold headlines, promising something have chances of grabbing attention.  Selective distortion: Receivers will hear what fits into their belief system. As a result, they add things to the message and do not notice certain things. Message should be simple, clear and interesting.  Selective retention: People will retain only a small fraction of messages.

8. Copyright © 2003 Prentice-Hall, Inc. 19-8 Figure 19.2: Steps in Developing Effective Communication

9. Copyright © 2003 Prentice-Hall, Inc. 19-9 Developing Effective Communications  Identify the Target Audience:  Demographic and psychographic profile: The first step is to know the profile of the target audience. (TG).  This is important in deciding the message.  Child needs story in appealing manner, with humour, fun & emotion.

10. Copyright © 2003 Prentice-Hall, Inc. 19-10 Developing Effective Communications  Identify the Target Audience  Familiarity scale  Favorability scale Never Heard of Heard of Only Know a Little Bit Know a Fair Amount Know Very Well Very Unfavorable Somewhat Unfavorable Indifferent Somewhat Favorable Very favorable

11. Copyright © 2003 Prentice-Hall, Inc. 19-11 Figure 19.3: Familiarity-Favorability Analysis

12. Copyright © 2003 Prentice-Hall, Inc. 19-12 Developing Effective Communications  Semantic differential  Developing a set of relevant dimensions  Reducing the set of relevant dimensions  Administering the instrument to a sample of respondents  Averaging the results  Checking on the image variance

13. Copyright © 2003 Prentice-Hall, Inc. 19-13 Figure 19.4: Images of Three Hospitals (Semantic Differential)

14. Copyright © 2003 Prentice-Hall, Inc. 19-14 Developing Effective Communications  Determine the Communication Objective  Cognitive  Affective  Behavioral  Response-hierarchy models

15. Copyright © 2003 Prentice-Hall, Inc. 19-15 Figure 19.5: Response Hierarchy Models

16. Copyright © 2003 Prentice-Hall, Inc. 19-16 Developing Effective Communications  Hierarchy-of effects model  Awareness  Knowledge  Liking  Preference  Conviction  Purchase

17. Copyright © 2003 Prentice-Hall, Inc. 19-17 Developing Effective Communications  Design the Message : Having defined the desired audience response, the communicators turn to develop an effective message. Ideally the message should follow:  AIDA model  Gain attention  Hold interest  Arouse desire  Elicit action The communicator must decide what to say (message content) & how to say to (message structure and format)

18. Copyright © 2003 Prentice-Hall, Inc. 19-18 Message Content  The communicator has to figure out an appeal or theme that will produce the desired response. These are:  Rational appeals : relate to the audience’s self-interest. They show that the product will produce the desired benefits. Message showing a product’s quality, economy, value or performance.  Emotional appeals: attempts to stir up either negative or positive emotions that can motivate purchase. Appeals that are directed at generating emotional responses like a pleasant mood, hurting the ego or evoking love and sympathy, jealousy. E.g, Vicks, Onida  Moral appeals: directed to the audience’s sense of what is right and proper. They are often used to urge people to support social causes such as cleaner environment, equal rights for women, no smoking etc.

19. Copyright © 2003 Prentice-Hall, Inc. 19-19 Developing Effective Communications  Message Structure: The communicator must also decide how to handle three message issues. Whether to draw a confusion, whether to compare the product and to decide the order of presentation  Message Format: A strong format has to be decided to present the message. In a print ad, the communicator has to decide the text, colour, font. In radio, choice of sound and voice in important and on TV, all elements plus body language is important.  Message Source  Factors underlying source credibility  Expertise  Trustworthiness

20. Copyright © 2003 Prentice-Hall, Inc. 19-20 Developing Effective Communications  Select the Communication Channels  Personal Communication Channels  Advocate channels  Expert channels  Social channels

21. Copyright © 2003 Prentice-Hall, Inc. 19-21 Developing Effective Communications  Nonpersonal Communication Channels  Media  Atmospheres  Events  Social-structure view of interpersonal communication  Liaison  Bridge

22. Copyright © 2003 Prentice-Hall, Inc. 19-22 Developing Effective Communications  Establish the Total Marketing Communications budget  Affordable Method  Percentage-of-Sales Method  Competitive-Parity Method

23. Copyright © 2003 Prentice-Hall, Inc. 19-23 Developing Effective Communications  Objective-and-Task Method  Establish the market-share goal  Determine the percentage of the market that should be reached by advertising  Determine the percentage of aware prospects that should be persuaded to try the brand  Determine the number of advertising impressions per 1 percent trial rate  Determine the number of gross rating points that would have to be purchased  Determine the necessary advertising budget on the basis of the average cost of buying a gross rating point

24. Copyright © 2003 Prentice-Hall, Inc. 19-24 Deciding on the Marketing Communications Mix  The Promotional tools  Advertising  General Qualities:  Public presentation  Pervasiveness  Amplified expressiveness  Impersonality  Sales Promotion  Benefits:  Communication  Incentive  Invitation

25. Copyright © 2003 Prentice-Hall, Inc. 19-25 Deciding on the Marketing Communications Mix  Public Relations and Publicity  Distinctive qualities:  High credibility  Ability to catch buyers off guard  Dramatization  Personal Selling  Distinctive qualities:  Personal confrontation  Cultivation  Response

26. Copyright © 2003 Prentice-Hall, Inc. 19-26 Deciding on the Marketing Communications Mix  Direct Marketing  Distinctive qualities:  Nonpublic  Customized  Up-to-date  Interactive

27. Copyright © 2003 Prentice-Hall, Inc. 19-27 Deciding on the Marketing Communications Mix  Factors in setting the Marketing Communications Mix  Type of Product Market  Advertising’s role in business markets:  Advertising can provide an introduction to the company and its products  If the product embodies new features, advertising can explain them

28. Copyright © 2003 Prentice-Hall, Inc. 19-28 Figure 19.6: Cost-Effectiveness of Different Promotional Tools

29. Copyright © 2003 Prentice-Hall, Inc. 19-29 Deciding on the Marketing Communications Mix  Product Life-Cycle Stage  Measure the Communications’ Result