Part 7 : Communicating Value Chapter 17 – Designing and Managing Integrated Marketing Communications

The Role of Marketing Communications Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers – directly or indirectly – about the products and brands that they sell Figure of Integrating Marketing Communications to build Brand Equity Marketing Communications Program Advertising Sales Promotion Events & Experiencing Public relation & publicity Personal selling Direct Marketing Brand Equity Brand awareness Brand Image Brand responses Brand relationships

Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers – directly or indirectly – about the products and brands that they sell

Figure of Integrating Marketing Communications to build Brand Equity

Developing Effective Communications Eight steps in developing effective communications: Identify the Target Audience: it is often useful to define target audience in terms of usage and loyalty Image analysis can be conducted to profile the target audience in terms of brand knowledge The first step is measure the target audience’s knowledge of the object by using the familiarity scale Never Heard of Know a Know a Fair Know Heard of only Little Bit amount very well Respondents who are familiar with the product by using favorability scale I I I I I Very Unfavorable Somewhat Unfavorable Indifferent Somewhat favorable Very favorable I I I I I

Eight steps in developing effective communications:

Identify the Target Audience: it is often useful to define target audience in terms of usage and loyalty

Image analysis can be conducted to profile the target audience in terms of brand knowledge

The first step is measure the target audience’s knowledge of the object by using the familiarity scale

Never Heard of Know a Know a Fair Know

Heard of only Little Bit amount very well

Respondents who are familiar with the product by using favorability scale

Developing Effective Communications Determine the communication objectives: Category need: a (new) category product with “higher or little involvement” will tell “more or less differentiation” e.g. a new-to the world product the “electric car” begins with establishing category need (to educate customers) Brand awareness: ability to identify the brand within category (as recognition e.g. a sachet with yellow color and strong hand for Extra Joss; or as recall the brand e.g. the brands in healthy drinks) Brand attitude: evaluation of the brand with respect to its perceived ability to meet current need e.g. IBM computer as user friendly, with its processors, spare parts, maintenance, services Brand purchase intention: to take purchase - related action. Promotional offers in the form of coupons or two for one deals encourage customers to make a mental commitment to buy a product. But intensions will be less likely to be formed if consumers do not have an expressed category need

Determine the communication objectives:

Category need: a (new) category product with “higher or little involvement” will tell “more or less differentiation” e.g. a new-to the world product the “electric car” begins with establishing category need (to educate customers)

Brand awareness: ability to identify the brand within category (as recognition e.g. a sachet with yellow color and strong hand for Extra Joss; or as recall the brand e.g. the brands in healthy drinks)

Brand attitude: evaluation of the brand with respect to its perceived ability to meet current need e.g. IBM computer as user friendly, with its processors, spare parts, maintenance, services

Brand purchase intention: to take purchase - related action. Promotional offers in the form of coupons or two for one deals encourage customers to make a mental commitment to buy a product. But intensions will be less likely to be formed if consumers do not have an expressed category need

Developing Effective Communications Design the communications to achieve the desired response will require solving three problems: What to say (message strategy): the appeals that establish points of difference e.g. buyers seek rewards from results-of-use experience (Darkie makes your teeth whiter), product-in-use experience (Deodorant makes you accepted in society), or incidental to use experience (Sanggar cuci Rinso) How to say it (creative strategy): either informational/rational appeals (problem solution adv, product demonstration and comparison adv) or transformational/emotional appeals (Marlboro man) Who should say it (message source): delivered by popular sources e.g. Michael Jordan for Nike (MJ known as expertise, trustworthiness and likability) Select the communications channel: Personal communications channel e.g. face-to-face, over the telephone, through e-mail Non personal communications (mass communications) channel e.g. radio, television, magazine, and billboard

Design the communications to achieve the desired response will require solving three problems:

What to say (message strategy): the appeals that establish points of difference e.g. buyers seek rewards from results-of-use experience (Darkie makes your teeth whiter), product-in-use experience (Deodorant makes you accepted in society), or incidental to use experience (Sanggar cuci Rinso)

How to say it (creative strategy): either informational/rational appeals (problem solution adv, product demonstration and comparison adv) or transformational/emotional appeals (Marlboro man)

Who should say it (message source): delivered by popular sources e.g. Michael Jordan for Nike (MJ known as expertise, trustworthiness and likability)

Select the communications channel:

Personal communications channel e.g. face-to-face, over the telephone, through e-mail

Non personal communications (mass communications) channel e.g. radio, television, magazine, and billboard

Developing Effective Communications Establish the Total Marketing Communications Budget: Affordable method: promotion budget at what they think the company can afford. It completely ignores the immediate impact of promotion on sales volume Percentage-of-sales method: promotion expenditure will vary with the company can “afford” (if sales grows up and so does the promotion expenditures) Competitive-parity method: some companies set their promotion budget to achieve share-of-voice parity with competitors and thus prevents promotion wars Objective-and-task method e.g. establish 8% market share goal from 50 million potential users – that is 4 million users would become loyal users

Establish the Total Marketing Communications Budget:

Affordable method: promotion budget at what they think the company can afford. It completely ignores the immediate impact of promotion on sales volume

Percentage-of-sales method: promotion expenditure will vary with the company can “afford” (if sales grows up and so does the promotion expenditures)

Competitive-parity method: some companies set their promotion budget to achieve share-of-voice parity with competitors and thus prevents promotion wars

Objective-and-task method e.g. establish 8% market share goal from 50 million potential users – that is 4 million users would become loyal users

Developing Effective Communications Deciding on the marketing communication mix: Advertising with qualities of: pervasiveness, amplified expressiveness, impersonality Sales promotion with qualities of: communication, incentive, and invitation Public relations and publicity with qualities of: high credibility, ability to catch buyers off guard, dramatization Events and experiences with qualities of: relevant, involving and implicit Direct marketing with qualities of: customized, up-to-date, interactive Personal selling with qualities of: personal interaction, cultivation, response

Deciding on the marketing communication mix:

Advertising with qualities of: pervasiveness, amplified expressiveness, impersonality

Sales promotion with qualities of: communication, incentive, and invitation

Public relations and publicity with qualities of: high credibility, ability to catch buyers off guard, dramatization

Events and experiences with qualities of: relevant, involving and implicit

Direct marketing with qualities of: customized, up-to-date, interactive

Personal selling with qualities of: personal interaction, cultivation, response

Developing Effective Communications Measuring communication results: below figure indicates that communication program is effective in creating awareness, but the product fails to meet customer expectation 100% market 20% not aware 80% aware 40% didn’t try 60% try 20% satisfied 80% disappointed Total Awareness Brand Trial Satisfaction

Measuring communication results: below figure indicates that communication program is effective in creating awareness, but the product fails to meet customer expectation

Developing Effective Communications Managing the Integrated Marketing Communication (IMC) Process that evaluates the strategic roles of a variety of communication to provide clarity, consistency, and maximum sales impact through the seamless integration of discrete messages IMC improves the company’s ability to reach the right customers with the right messages at the right time and in the right place

Managing the Integrated Marketing Communication (IMC) Process that evaluates the strategic roles of a variety of communication to provide clarity, consistency, and maximum sales impact through the seamless integration of discrete messages

IMC improves the company’s ability to reach the right customers with the right messages at the right time and in the right place