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Integrated Marketing Communication

Integrated Marketing Communication






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    Integrated Marketing Communication Integrated Marketing Communication Presentation Transcript

    • Integrated Marketing Communications
    • Defining Marketing Communications • ‘…a transactional process between two or more parties whereby meaning is exchanged through the intentional use of symbols’ (Blackwell et al. 2003) • ‘The process of presenting an integrated set of stimuli to a market with the intent of evoking a desired set of responses…’ (Delozier 1976) • ‘If we whisper, we can’t be heard’ (Beattie 1999). 2
    • The Marketing Communications Mix The marketing communications mix describes the full range of actions by means of which a firm can initiate and manage an exchange. These actions may include: – – – – – – Advertising Sales Promotion Public Relations Sponsorship Personal Selling Direct & Interactive Marketing 3
    • Components of the Marketing Communication Mix 4
    • Advertising Defined…? • ‘Advertising is paid, nonpersonal communication from an identified sponsor, using mass media to persuade or influence an audience’ (Richards & Curran 2002) 5
    • Types of the Advertising Appeal Types of Appeal • Rational appeals work: – through the perceived value of the products functions, attributes & benefits • Emotional appeals work: – through evoking pleasure, fantasy & emotional . associating these feelings with the brand • Early advertising research focused on whether emotional appeals are more effective than rational appeals. • More recent research suggests both emotional & rational appeals can be effective…but their effectiveness varies by the context of the product and consumer… 6
    • Types Rational Appeals News Appeals Product Popularity Appeals 7
    • Comparative Advertising Appeals ‘Comparative advertising is a form of advertising in which two or more specifically named or recognisably presented brands of the same generic product or service class… and makes such a comparison in terms of one or more specific product or service attributes’ (Wilkie and Farris 1975). 8
    • Emotional Appeals Emotional appeals can have various types of response: – – – – affect the amount and nature of the thinking response transform the use experience create positive attitudes towards the ad become directly associated with the brand 9
    • Developing Emotional Appeals • According to Percy & Elliott (2009), emotional appeals should: – be unique with a strong visual content – be likeable – be authentic, eliciting a strong positive emotional response – sometimes include information 10
    • Warmth Appeals ‘Warmth is defined to be a positive, mild, volatile emotion involving physiological arousal & precipitated by experiencing directly or vicariously a love, family or friendship relationship’ (Aaker et al. 1986) 11
    • Humour Appeals • Humour can evoke feelings such as energy, cheer, joy & happiness. • Humour can: – attract attention – improve brand recall – create good moods – distract from counterarguing 12
    • Fear & Anxiety Appeals • Fear is an emotional response to a threat that expresses, or at least implies, some sort of danger. • Fear appeals in advertising attempt to arouse individuals to remove the threat. • Early theories suggested that increasing the severity of the threat increases tension and energy up to a point, beyond which it Curvilinear Model (Ray & Wilkie 1970) Facilitating Effects Non-monotonic Curve Fear Inhibiting Effects 13
    • Music Appeals • According to Dunbar (1990), music can: – provide an emotional dimension to a brand – provide an emotional dimension to the consumer proposition – modify visuals & sounds – be more memorable than words 14
    • Sponsorship Definition ‘Sponsorship is a business relationship between a provider of funds, resources or services and an individual, event or organisation which offers in return some rights and association that may be used for commercial advantage’ (Sleight 1989). 15
    • Types of Sponsorship 16
    • Growth of Sponsorship 1984 1999 2001 2003 2005 2006 2007 2010 £m Sports Broadcast £m £m £m £m £m £m 110 377 421 411 428 451 478 486 - 160 183 199 227 200 236 290 155 170 142 - - 884 918 Arts 19 142 114 111 119 Community 16 70 63 63 72 145 749 781 784 846 Total £m 806 Keynote (2011) 17
    • Reasons For the Growth of Sponsorship • Escalating costs of media advertising • Reduced efficiencies of traditional media advertising • Increased leisure activities & sporting events • Greater media coverage of sponsored events 18
    • Ambush Marketing • Ambush marketing is defined as: ‘…a company’s intentional effort to weaken or ambush its competitor’s official sponsorship. It does this by engaging in promotions or advertising that trade off the event or property’s goodwill and reputation, and that seek to confuse the buying public as to which company really holds official sponsorship rights’ (McKelvey 1994). 19
    • Common Ambush Marketing Strategies • Sponsoring media coverage of an event. • Sponsoring a subcategory within an event • Sponsoring teams/players • Plan advertising that coincides with the sponsored event • Develop creative associative advertising 20
    • What are Sales Promotions? • Sales promotion is used...principally as a means to accelerate sales’ (Fill 2009). ‘ 21
    • Types of Sales Promotion 22
    • Trade Promotion The main objectives of trade promotions are to stimulate the resellers to try new products & to encourage them to allocate increased shelf space for established products. Aims of trade promotion: – Increase stock levels – Gain more & better shelf space – New product launch – Even out fluctuating sales – Counter the competition – Compliment other ‘push’ activities 23
    • Retail Promotion • Store-specific sales promotions can help to differentiate one store from another, and entice the public in. • Sales promotions by retailers are normally tied to the activities of manufacturers. • Aims of retail promotion: – Increase store traffic – Increase frequency & amount of purchases – Increase store loyalty – Increase own-brand sales – Even out busy periods 24
    • Consumer Promotion • Manufacturers use sales promotions to encourage new users to try a product or to increase the amount that current users consume. • Aims of consumer promotion: – – – – – – – – – – – Provide information Build awareness or help recall Reduce risk Create excitement Encourage trial Expand usage Attracting new customers Trade up Load up Even out fluctuating sales Countering the competition 25
    • Effects of Sales Promotions: Sales Sales Promotion Period Positive Effect No Effect Negative Effect Prior to Promotion Short-run Postpromotion Period Long-run Postpromotion Period Time 26
    • Personal Selling Defined ‘…two-way, face-to-face communications used to inform, give presentations to, maintain or establish a long-term relationship with, or persuade specific members of a particular audience’ (De Pelsmacker et al. 2007). 27
    • The Personal Selling Process 28
    • Direct Marketing Defined • • ‘Direct marketing is the process by which individual customers' responses and transactions are recorded...and the data used to inform the targeting, execution and control of actions...that are designed to start, develop and prolong profitable customer relationships’ (Institute of Direct Marketing). ‘An interactive system of marketing which uses one or more advertising media to effect a measurable response at any location’ (US Direct Marketing Association) • ‘Many retailers use direct communications including mailers, catalogues, websites and email to drive…traffic to real or virtual stores’ (Hansotia & Rukstales 2002) 29
    • Growth of Direct Marketing • • • • • • • • Changing demographics & lifestyles Growth of retail industry Increased customer confidence Increasing competition Media & audience fragmentation Increasing media & sales costs New distribution channels Increasing computer power & lower software & data processing costs • Impact of new communications technology • Focus on customer relationships 30
    • Benefits of Direct Marketing • • • • • • • • • • • • Targeting Relationships Interactivity Motivating action Databases Transactional information Measurement Predictability Low investment Controlled growth Testing Low costs per customer 31
    • Public Relations – Building good relations with the company’s various publics by obtaining favourable publicity, building up a good ‘corporate image’, and handling or heading off unfavourable rumours, stories and events. Use of Public Relation: Public relation team is currently focusing on Crisis Management. 32