Chapter 17 Designing And Managing Integrated Marketing Communications

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  • 1. Part 7 : Communicating Value Chapter 17 – Designing and Managing Integrated Marketing Communications
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. 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