This document discusses marketing communications and integrated marketing communications. It covers the role of various marketing communication tools like advertising, sales promotion, public relations, direct marketing, and personal selling. It also discusses developing effective communications by identifying the target audience, determining objectives, designing communications, and selecting channels. Additionally, it covers deciding on the marketing communications mix, factors to consider, and measuring communication results. The overall goal is to coordinate different communication tools and channels as part of an integrated marketing communications approach.

1. Part 7:Communicating Value > The Role of Marketing Communications > Developing Effective Communications > Deciding on Marketing Communications Mix > Managing the Integrated Marketing Communications Process Class Presentation | Session 30 | 25 Nov 2010

2. The Role of Marketing CommunicationsConcept Marketing Communication and Brand Equity The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell Marketing Communications Mix MG 220 Marketing Management 2

3. The Role of Marketing CommunicationsConcept Marketing Communications Mix - Definitions Advertising Any paid form of non-personalpresentation and promotion of ideas, goods or services by an identified sponsor Sales Promotion A variety of short-term incentives to encourage trial or purchase of a product or service Events & Experiences Company-sponsored activities and programs designed to create daily or special brand-related interactions Public Relations & Publicity A variety of programs designed to promote or protect a company’s image or its individual products Direct Marketing Use of mail, telephone, fax, e-mail or internet to communicate directly with or solicit response or dialogue from specific customers and prospects Personal Selling Face to face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders MG 220 Marketing Management 3

4. The Role of Marketing CommunicationsConcept Marketing Communications Mix - Examples Advertising Print and broadcast ads, Brochures, Posters, Billboards, POP displays Sales Promotion Contests, sweepstakes, Premiums, Sampling, Coupons, Rebates Events & Experiences Festivals, Arts, Causes, Factory tours, Company museums, Street activities Public Relations & Publicity Press releases, Seminars, Annual reports, donations, Community relations, Lobbying Personal Selling Sales presentations, Sales meetings, Incentive programs, Samples, Fairs and trade shows Direct Marketing Catalogs, Mailings, Telemarketing, Electronic shopping, TV shopping, Fax mail, E-mail, Voice mail CONSISTENCY IN MESSAGE BY INTEGRATING THESE MARKETING COMMUNICATIONS IS REQUIRED MG 220 Marketing Management 4

5. The Role of Marketing CommunicationsThe Communication Process Models Macro-model of Marketing Communications Major parties in Communication Sender | Receiver Major Communication Tools Message | Media Major Communication Functions Encoding | Decoding | Response | Feedback These processes operate during communication Selective Attention Selective Distortion Selective Retention MG 220 Marketing Management 5

6. The Role of Marketing CommunicationsThe Communication Process Models Micro models of Marketing Communications Response hierarchy models Learn-Feel-do sequence Buyer passed through: Learn-Feel-do Do-Feel-Learn Learn-Do-Feel Fragility of Marketing Communications Example: If at all stages success prob. is even 50% MG 220 Marketing Management 6

7. Developing Effective Communications Identify Target Audience Use Segmentation strategies Analyze target audience: Image Analysis Favorability Analysis Familiriaty Analysis MG 220 Marketing Management 7

8. Developing Effective Communications Determine Objective Category Need Developing need for a certain category Brand Awareness Identifying a brand within a certain category Brand Attitude Evaluation of brand to meet a relevant need Brand Purchase intention Taking purchase-related action MG 220 Marketing Management 8

9. Developing Effective Communications Design Communications Message Strategy (what to say) Looking for appeals related to brand positioning To help establish POPs and POPs Creative Strategy (how to say it) Informational Appeals – giving information Transformational Appeals –emotional attributes Message Source (who to say it) Source should have credibility through: Expertise Trustworthiness Likability MG 220 Marketing Management 9

10. Developing Effective Communications Select Channels Personal Channels Advocate Channels (e.g. salesforce) Expert Channels (e.g. independent experts) Social Channels (e.g. neighbors, family, friends) Non-Personal Channels Media Sales Promotions Events and Experiences Public Relations Integration of Communication Channels MG 220 Marketing Management 10

11. Developing Effective Communications Establish Total Mktg. Comm. Budget Affordable Method Percentage-of-Sales method More result oriented, variable cost No logical basis for choosing the “%age” Competitive-Parity method Budget established to achieve ‘share-of-voice’ parity with comp. Collective wisdom (?) & preventing promotion wars (?) Objective-and-task method Establish market share goal Determine %age of market that should be reached by advertising Determine %age of aware prospects that should be persuaded Determine number of ad impressions per 1 percent trial rate Determine number of Gross Rating points (GRPs) Determine req. advertising budget on basis of avg. cost of GRP MG 220 Marketing Management 11

12. Deciding on Marketing Communications MixCharacteristics of Marketing Comm. Mix Advertising Long-term image | trigger sales | reach geog. dispersed customers Pervasiveness (several repetitions) Amplified expressiveness Impersonality (it is monologue) Sales Promoti0n Stronger & Quick buyer response | Short-run effects Communication Inventive Invitation Public Relation & Publicity Coordinated with other elements of mix High credibility Ability to catch buyers “off-guard” Dramatization MG 220 Marketing Management 12

13. Deciding on Marketing Communications MixCharacteristics of Marketing Comm. Mix Events & Experiences Costly yet having many advantages Relevant Involving Implicit Direct Marketing Forms: Direct Mail, telemarketing, internet marketing Customized Up-to-date Interactive Personal Selling Most effective in later stages, good for building preferences Personal interaction Cultivation Response MG 220 Marketing Management 13

14. Deciding on Marketing Communications MixFactors in Setting the Marketing Comm. Mix Type of Product Market Consumer markets: more spend on sales prom. & advertising Business markets: more on personal selling Buyer-Readiness Stage Cost-effectiveness of communication tools vary at different stagesof buyer readiness Product Life-Cycle Stage Cost effectiveness of communication tools vary as with PLC stages MG 220 Marketing Management 14

15. Deciding on Marketing Communications MixMeasuring Communication Results Feedback Measurement After implementing the plan: Impact on target audience is to be measured Surveyed to ask: Whether they have recall How many times they saw it What points they recall A good example of measured results: MG 220 Marketing Management 15

16. Managing the IMC – Integrated Marketing Communications Coordinating Media Personal and Non-personal channels to be coordinated Implementing IMC IMC concept has been relatively slow to take hold: Large companies have several specialist organizations They don’t know much about other channels/tools Global companies use different agencies in different countries Still a few agencies have improved by integrating with differentspecialist companies – by acquiring them Offering one-window solutions MG 220 Marketing Management 16

17. Part 7:Communicating Value > Developing and Managing an Advertising Program > Deciding on Media and Measuring Effectiveness Class Presentation | Session 31 | 29 Nov 2010