Chapter 17 Designing And Managing Integrated Marketing Communications


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Chapter 17 Designing And Managing Integrated Marketing Communications

  1. 1. Part 7 : Communicating Value Chapter 17 – Designing and Managing Integrated Marketing Communications
  2. 2. The Role of Marketing Communications <ul><li>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 </li></ul><ul><li>Figure of Integrating Marketing Communications to build Brand Equity </li></ul>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. 3. Developing Effective Communications <ul><li>Eight steps in developing effective communications: </li></ul><ul><li>Identify the Target Audience: it is often useful to define target audience in terms of usage and loyalty </li></ul><ul><li>Image analysis can be conducted to profile the target audience in terms of brand knowledge </li></ul><ul><li>The first step is measure the target audience’s knowledge of the object by using the familiarity scale </li></ul><ul><li>Never Heard of Know a Know a Fair Know </li></ul><ul><li>Heard of only Little Bit amount very well </li></ul><ul><li>Respondents who are familiar with the product by using favorability scale </li></ul>I I I I I Very Unfavorable Somewhat Unfavorable Indifferent Somewhat favorable Very favorable I I I I I
  4. 4. Developing Effective Communications <ul><li>Determine the communication objectives: </li></ul><ul><li>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) </li></ul><ul><li>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) </li></ul><ul><li>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 </li></ul><ul><li>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 </li></ul>
  5. 5. Developing Effective Communications <ul><li>Design the communications to achieve the desired response will require solving three problems: </li></ul><ul><li>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) </li></ul><ul><li>How to say it (creative strategy): either informational/rational appeals (problem solution adv, product demonstration and comparison adv) or transformational/emotional appeals (Marlboro man) </li></ul><ul><li>Who should say it (message source): delivered by popular sources e.g. Michael Jordan for Nike (MJ known as expertise, trustworthiness and likability) </li></ul><ul><li>Select the communications channel: </li></ul><ul><li>Personal communications channel e.g. face-to-face, over the telephone, through e-mail </li></ul><ul><li>Non personal communications (mass communications) channel e.g. radio, television, magazine, and billboard </li></ul>
  6. 6. Developing Effective Communications <ul><li>Establish the Total Marketing Communications Budget: </li></ul><ul><li>Affordable method: promotion budget at what they think the company can afford. It completely ignores the immediate impact of promotion on sales volume </li></ul><ul><li>Percentage-of-sales method: promotion expenditure will vary with the company can “afford” (if sales grows up and so does the promotion expenditures) </li></ul><ul><li>Competitive-parity method: some companies set their promotion budget to achieve share-of-voice parity with competitors and thus prevents promotion wars </li></ul><ul><li>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 </li></ul>
  7. 7. Developing Effective Communications <ul><li>Deciding on the marketing communication mix: </li></ul><ul><li>Advertising with qualities of: pervasiveness, amplified expressiveness, impersonality </li></ul><ul><li>Sales promotion with qualities of: communication, incentive, and invitation </li></ul><ul><li>Public relations and publicity with qualities of: high credibility, ability to catch buyers off guard, dramatization </li></ul><ul><li>Events and experiences with qualities of: relevant, involving and implicit </li></ul><ul><li>Direct marketing with qualities of: customized, up-to-date, interactive </li></ul><ul><li>Personal selling with qualities of: personal interaction, cultivation, response </li></ul>
  8. 8. Developing Effective Communications <ul><li>Measuring communication results: below figure indicates that communication program is effective in creating awareness, but the product fails to meet customer expectation </li></ul>100% market 20% not aware 80% aware 40% didn’t try 60% try 20% satisfied 80% disappointed Total Awareness Brand Trial Satisfaction
  9. 9. Developing Effective Communications <ul><li>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 </li></ul><ul><li>IMC improves the company’s ability to reach the right customers with the right messages at the right time and in the right place </li></ul>