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Integrated Marketing
Communication
Strategy
Chapter 15
15 - 1
Definition
• 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.
15 - 2
• The Marketing Communications
Environment is Changing:
 Mass markets have fragmented, causing
marketers to shift away from mass
marketing
 Media fragmentation is increasing as well
 Improvements in information technology
are facilitating segmentation
Integrated Marketing
Communications
15 - 3
• 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
Integrated Marketing
Communications
15 - 4
• The Need for Integrated Marketing
Communications
 The Web alone cannot be used to build
brands; brand awareness potential is limited
 Best bet is to wed traditional branding
efforts with the interactivity and service
capabilities of online communications
 Web efforts can enhance relationships
Integrated Marketing
Communications
15 - 5
• 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.
 IMC implementation often requires the
hiring of a MarCom manager.
Integrated Marketing
Communications
15 - 6
• Communications efforts should be
viewed from the perspective of managing
customer relationships over time.
• The communication process begins with
an audit of all potential contacts.
• Effective communication requires
knowledge of how communication
works.
The Communication
Process
15 - 7
Elements in the
Communication Process
The Communication
Process
• Sender
• Message
• Media
• Receiver
• Encoding
• Decoding
• Response
• Feedback
• Noise
15 - 8
• 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
Developing Effective
Communication
15 - 9
Buyer-Readiness Stages
Developing Effective
Communication
• Awareness
• Knowledge
• Liking
• Preference
• Conviction
• Purchase
15 - 10
• Step 3: Designing a Message
 AIDA 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
Developing Effective
Communication
15 - 11
• 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.
Developing Effective
Communication
15 - 12
• Step 4: Choosing Media
 Personal communication channels
 Includes face-to-face, phone, mail, and Internet
chat communications
 Word-of-mouth influence is often critical
 Buzz marketing cultivates opinion leaders
 Nonpersonal communication channels
 Includes media, atmosphere, and events
Developing Effective
Communication
15 - 13
• 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
Developing Effective
Communication
15 - 14
• 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
Setting the Promotional
Budget and Mix
15 - 15
• 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
Setting the Promotional
Budget and Mix
15 - 16
• Setting the Overall Promotion Mix
 Determined by the nature of each
promotion tool and the selected
promotion mix strategy
Setting the Promotional
Budget and Mix
15 - 17
Setting the Promotional
Budget and 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
15 - 18
Setting the Promotional
Budget and 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
15 - 19
Setting the Promotional
Budget and Mix
• Advertising
• Personal Selling
• Sales Promotion
• Public Relations
• Direct Marketing
• May be targeted at the trade
or ultimate consumer
• 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
15 - 20
Setting the Promotional
Budget and 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
15 - 21
Setting the Promotional
Budget and 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
15 - 22
• 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.
Setting the Promotional
Budget and Mix
15 - 23
• Checklist: Integrating the Promotion Mix
 Analyze trends (internal and external)
 Audit communications spending
 Identify all points of contact
 Team up in communications planning
 Make all communication elements compatible
 Create performance measures
 Appoint an IMC manager
Setting the Promotional
Budget and Mix
15 - 24
• Advertising and Sales Promotion
 Avoid false and deceptive advertising
 Bait and switch advertising
 Trade promotions can not favor certain
customers over others
 Use advertising to promote socially
responsible programs and actions
Socially Responsible
Marketing Communications
15 - 25
• 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
Socially Responsible
Marketing Communications

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Integrated Marketing Communication Strategy

  • 2. 15 - 1 Definition • 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.
  • 3. 15 - 2 • The Marketing Communications Environment is Changing:  Mass markets have fragmented, causing marketers to shift away from mass marketing  Media fragmentation is increasing as well  Improvements in information technology are facilitating segmentation Integrated Marketing Communications
  • 4. 15 - 3 • 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 Integrated Marketing Communications
  • 5. 15 - 4 • The Need for Integrated Marketing Communications  The Web alone cannot be used to build brands; brand awareness potential is limited  Best bet is to wed traditional branding efforts with the interactivity and service capabilities of online communications  Web efforts can enhance relationships Integrated Marketing Communications
  • 6. 15 - 5 • 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.  IMC implementation often requires the hiring of a MarCom manager. Integrated Marketing Communications
  • 7. 15 - 6 • Communications efforts should be viewed from the perspective of managing customer relationships over time. • The communication process begins with an audit of all potential contacts. • Effective communication requires knowledge of how communication works. The Communication Process
  • 8. 15 - 7 Elements in the Communication Process The Communication Process • Sender • Message • Media • Receiver • Encoding • Decoding • Response • Feedback • Noise
  • 9. 15 - 8 • 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 Developing Effective Communication
  • 10. 15 - 9 Buyer-Readiness Stages Developing Effective Communication • Awareness • Knowledge • Liking • Preference • Conviction • Purchase
  • 11. 15 - 10 • Step 3: Designing a Message  AIDA 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 Developing Effective Communication
  • 12. 15 - 11 • 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. Developing Effective Communication
  • 13. 15 - 12 • Step 4: Choosing Media  Personal communication channels  Includes face-to-face, phone, mail, and Internet chat communications  Word-of-mouth influence is often critical  Buzz marketing cultivates opinion leaders  Nonpersonal communication channels  Includes media, atmosphere, and events Developing Effective Communication
  • 14. 15 - 13 • 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 Developing Effective Communication
  • 15. 15 - 14 • 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 Setting the Promotional Budget and Mix
  • 16. 15 - 15 • 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 Setting the Promotional Budget and Mix
  • 17. 15 - 16 • Setting the Overall Promotion Mix  Determined by the nature of each promotion tool and the selected promotion mix strategy Setting the Promotional Budget and Mix
  • 18. 15 - 17 Setting the Promotional Budget and 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
  • 19. 15 - 18 Setting the Promotional Budget and 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
  • 20. 15 - 19 Setting the Promotional Budget and Mix • Advertising • Personal Selling • Sales Promotion • Public Relations • Direct Marketing • May be targeted at the trade or ultimate consumer • 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
  • 21. 15 - 20 Setting the Promotional Budget and 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
  • 22. 15 - 21 Setting the Promotional Budget and 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
  • 23. 15 - 22 • 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. Setting the Promotional Budget and Mix
  • 24. 15 - 23 • Checklist: Integrating the Promotion Mix  Analyze trends (internal and external)  Audit communications spending  Identify all points of contact  Team up in communications planning  Make all communication elements compatible  Create performance measures  Appoint an IMC manager Setting the Promotional Budget and Mix
  • 25. 15 - 24 • Advertising and Sales Promotion  Avoid false and deceptive advertising  Bait and switch advertising  Trade promotions can not favor certain customers over others  Use advertising to promote socially responsible programs and actions Socially Responsible Marketing Communications
  • 26. 15 - 25 • 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 Socially Responsible Marketing Communications