Bmgt 411 week_10

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Bmgt 411 week_10

  1. 1. BMGT 411: Week 10 Kottler: Chapters 15 - Managing Integrated Marketing Communications Wood: Chapter 10 - Planning Metrics for Marketing 1
  2. 2. BMGT 411: Chapter 15 Designing and Managing Integrated Marketing Communications 2
  3. 3. Chapter Questions • What is the role of marketing communications? • What are the major steps in developing effective communications? • What is the communications mix and how should it be set? • What is an integrated marketing communications program? 3
  4. 4. Modes of Marketing Communications • Advertising • Sales promotion • Events and experiences • Public relations and publicity • Direct marketing • Interactive marketing • Word-of-mouth marketing • Personal selling • Social Media Marketing 4
  5. 5. Table 15.1 Communication Platforms: Advertising • Print and broadcast ads • Packaging inserts • Motion pictures • Brochures and booklets • Posters • Billboards • POP displays • Logos • Videotapes 5
  6. 6. Table 15.1 Communication Platforms - Sales Promotion • Contests, games, sweepstakes • Premiums • Sampling • Trade shows, exhibits • Coupons • Rebates • Entertainment • Continuity programs 6
  7. 7. Table 15.1 Communication Platforms: Events and Sponsorships • Sports • Entertainment • Festivals • Art • Causes • Factory tours • Company museums • Street activities 7
  8. 8. Table 15.1 Communication Platforms: Public Relations • Press kits • Speeches • Seminars • Annual reports • Charitable donations • Publications • Community relations • Lobbying • Identity media 8
  9. 9. Table 15.1 Communication Platforms: Personal Selling • Sales presentations • Sales meetings • Incentive programs • Samples • Fairs and trade shows 9
  10. 10. Table 15.1 Communication Platforms: Direct Marketing • Catalogs • Mailings • Telemarketing • Electronic shopping • TV shopping • E-mail • Voice mail • Websites 10
  11. 11. An Ideal Ad Campaign • The right consumer is exposed to the message at the right time and place • The ad causes consumer to pay attention • The ad reflects consumer’s level of understanding and behaviors the with product • The ad correctly positions brand in terms of points-of-difference and points-of-parity • The ad motivates consumer to consider purchase of the brand 11
  12. 12. The right consumer is exposed to the message at the right time and place 12
  13. 13. The right consumer is exposed to the message at the right time and place 13
  14. 14. The ad causes consumer to pay attention http://www.webpronews.com/people-in-haiti-read-firstworldproblems- tweets-2012-10 14
  15. 15. The ad reflects consumer’s level of understanding and behaviors with the product http://bit.ly/180JLUn 15
  16. 16. The ad correctly positions brand in terms of points-of-difference and points-of-parity http://youtu.be/9O2i28DU7fY 16
  17. 17. The ad motivates consumer to consider purchase of the brand http://youtu.be/e9RYAmubI2o 17
  18. 18. An Ideal Ad Campaign • The right consumer is exposed to the message at the right time and place • The ad causes consumer to pay attention • The ad reflects consumer’s level of understanding and behaviors the with product • The ad correctly positions brand in terms of points-of-difference and points-of-parity • The ad motivates consumer to consider purchase of the brand 18
  19. 19. Figure 15.1 Elements in the 19
  20. 20. Steps in Developing Effective Communications 1.Identify target audience 2.Determine objectives 3.Design communications 4.Select channels 5.Establish budget 6.Decide on media mix 7. Manage the IMC 8.Measure results 20
  21. 21. 1. Identify Target Market Often Segment Based - Recall Segments from Chapter 7 21
  22. 22. 2. Communications Objectives • Category need: Establish a product or service category as necessary to remove or satisfy a perceived discrepancy between a current motivational state and desired emotional state • Brand awareness: Foster the consumer’s ability to recognize or recall the brand within a category • Brand attitude: Help customers evaluate the brands perceived ability to meet a current relevant need • Purchase intention: Move consumers to decide to purchase the brand or take related action 22
  23. 23. Brand Awareness http://www.youtube.com/watch? v=oZdjy-iYz5Q 23
  24. 24. Purchase Intention 24
  25. 25. 3. Designing the Communications • What to say (Message Strategy), how to say it (Creative Strategy) and who should say it (Message Source). • Lets look at the new Ford Escape • Message: Convenience and Technology • Creative: Show it in real use, how it can solve problems • Source: Delivered by people who represent the target segment and Ford Employees 25
  26. 26. Communication Design http://www.youtube.com/watch? 26
  27. 27. 4. Select the Channels Personal Channels 27
  28. 28. 4. Select the Channels Mass Communication Channels 28
  29. 29. 4. Select the Channels Choose Channels Most Related to Your Segment 29
  30. 30. 5. Establish the Budget • Affordable: Setting the budget on what the managers think the company can afford • Percentage of Sales Method: Setting the communication budget at a specified percentage of current or anticipated sales • Competitive Parity: Setting the communication budget to achieve share of voice parity with competitors • Objective and Task Based: Developing the budget by defining specific objectives, determining tasks that must be performed to meet those objectives, and estimating the costs associated with them 30
  31. 31. 6. Deciding on the Marketing Mix 31
  32. 32. Characteristics of the Mix 32
  33. 33. 7. Managing the IMC 33
  34. 34. 8. Measure Results 34
  35. 35. BMGT 411: Wood Chapter 10 Planning Metrics for Marketing 35
  36. 36. Measuring What Matters • Measurement: • Metrics to track results over time, • Forecasts of future sales and costs, • Budgets allocating financial resources, • Schedules identifying the timing of marketing tasks, 36
  37. 37. Main Categories of Marketing Metrics 37
  38. 38. Metrics • Focus employees on activities that make a difference. • Set up performance expectations that can be objectively measured. • Lay a foundation for internal accountability and pride in accomplishments. 38
  39. 39. Marketing Dashboard • Computerized, graphical presentation of metrics measurements. • Helps managers see the situation at a glance, based upon a limited number of data inputs. • Varying levels of dashboards: Corporate, divisional, or functional. 39
  40. 40. Identifying Metrics • Working backward from mission, goals, and objectives. • Looking for key components or activities related to customer buying behavior. • This would include metrics for each of the three key areas: • Marketing objectives, • Financial objectives, and • Societal objectives. 40
  41. 41. Sample Marketing Metrics Objective Metric To acquire new customers. Measure number or percentage of new customers acquired by month, quarter, year. To retain current customers. Measure number or percentage of customers who continue purchasing during a set period. To increase market share. Measure dollar or unit sales divided by total industry sales during a set period. To accelerate product development Measure the time needed to bring a new product to market. 41
  42. 42. Sample Financial Metrics Objective Metric To increase sales revenue by product. Measure product sales in dollars per week, month, quarter, or year. To improve profitability. Measure gross or net margin for a set period by product, line, channel, marketing program, or customer. To reach breakeven. Measure the number of weeks or months until a product’s revenue equals and begins to exceed costs. 42
  43. 43. Sample Societal Metrics Objective Metric To make products more environmentally friendly. Measure the proportion of each product’s parts that are recyclable or have been recycled during a set period. To build awareness of a social issue. Measure awareness among the target audience after the program or a set period. To conserve electricity or fuel. Measure amount used by month, quarter, year. 43
  44. 44. Sample Behavioral Metrics Objective Metric To make products more environmentally friendly. Measure the proportion of each product’s parts that are recyclable or have been recycled during a set period. To build awareness of a social issue. Measure awareness among the target audience after the program or a set period. To conserve electricity or fuel. Measure amount used by month, quarter, year. 44
  45. 45. Internal/External and Forward/Backward • To be effective in implementing and evaluating your plan, metrics chosen must be: • Both internal and external, and • Both backward-looking and forward-looking. 45
  46. 46. Using Metrics • Metrics are most valuable to the marketer when viewed in the context of: • Expected outcomes • Historical results • Competitive or industry outcomes • Environmental influences 46
  47. 47. Forecasts • Future projections of what sales and costs are likely to be. • Can never be more than good estimates. • Need to be reviewed often. • Must account for the impact of marketing programs. 47
  48. 48. Budgets • Budgets are time-defined allocations of financial outlays for specific functions, programs, customer segments, or geographic regions. • Enable marketing managers to: • Allocate expenses, and • Compare estimates with actual expenses. • If you become good at one thing, learn how to manage a budget 48
  49. 49. Budgeting Methods • Affordability budgeting • Percentage-of-sales budgeting • Competitive-parity budgeting • Objective-and-task budgeting 49
  50. 50. Affordability Budgeting • Budgeting what you believe you can afford. • May work for start-ups. • Doesn’t allow for the kinds of significant, ongoing investments often needed to launch major new products or enter intensely competitive markets. • Ignores profit payback calculation. 50
  51. 51. Percentage-of-Sales Budgeting • Advantage: • Simple to implement. • Disadvantages: • Sales are seen as the source of marketing funding, rather than as the result of budget investments. • Difficult to justify the % set aside for marketing. 51
  52. 52. Competitive-Parity Budgeting • Advantage: • Simple to implement. • Disadvantages: • Ignores differences between companies. • Doesn’t allow for adjustments to meet specific marketing objectives. 52
  53. 53. Objective-and-Task Budgeting • Adding up the cost of completing all of the marketing tasks needed to achieve marketing plan objectives. • Advantage: • A reasonable build-up method. • Disadvantage: • May add up to more than the firm can afford. Priorities may have to be established. 53
  54. 54. Budgets Within the Marketing Budget • For each marketing mix program, • For each brand, segment, or market, • For each region or geographic division, • For each division or product manager, and • Summarizing overall marketing expenses. 54
  55. 55. Schedules • Schedules are time-defined plans for completing a series of tasks or activities related to a specific program or objective. • Help avoid conflicts. • Help measure progress toward completion. • http://office.microsoft.com/en-us/templates/results.aspx?qu=marketing +plan&ex=1&origin=TC001145556#ai:TC001142853| • http://office.microsoft.com/en-us/templates/results.aspx?qu=marketing +plan&ex=1&origin=TC001145556#ai:TC001146469| 55
  56. 56. The Scheduling Process • List the main tasks and activities. • Assign each a projected start and end date. • Determine who is responsible for each task. • Develop an overall summary schedule. • Develop detailed schedules for each sub-program. 56
  57. 57. ROMI Equation • ROMI - Return on Marketing Investment • ROMI = Net Profit attributed to Marketing Activity/Marketing Investment • Example - $20,000 Profit and $6,000 Marketing Spend = 333% 57
  58. 58. Preparing for Week 11 • Read Chapters: • Kottler: Chapters 16, 17 • Written Assignment #4: Give an example of a current successful advertising campaign. Why do you feel it is successful? 58

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