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Chapter 15: Integrated Marketing Communication Strategy

Objectives

•Know the tools of the marketing communications mix.
•Understand the process and advantages of integrated marketing communications.
•Learn the steps in developing effective marketing communications.
•Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.

Please Open The Following Figures In Different Windows and Leave Them Open:

Animated Figure 15-1 , Animated Figure 15-2, Animated Figure 15-3 , Animated Figure 15-4

Common Communication Platforms

Case Study
UPS
•UPS is a $31 billion corporate giant •UPS wanted to reposition itself as a supply chain solutions provider •Developed new theme based on customer input	•Implemented, “What Can Brown Do for You?” campaign •Realigned its sales and marketing organization •Ads, web sites, and salespeople deliver message daily

Definitions

•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.

Integrated Marketing Communications

•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

•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

•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

•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.

The Communication Process

•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
Elements in the Communication Process
•Sender •Message •Media •Receiver	•Encoding •Decoding •Response •Feedback
Noise

Developing Effective Communication

•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
Buyer-Readiness Stages
•Awareness •Knowledge •Liking	•Preference •Conviction •Purchase

Developing Effective Communication

•Step 3: Designing a Message

§AIDA framework guides message design

§Message content contains appeals or themes designed to produce desired results

Rational appeals

v Emotional appeals

– Love, pride, joy, humor, fear, guilt, shame

v Moral appeals

Developing Effective Communication

•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

•Step 4: Choosing Media

§Personal communication channels

Includes face-to-face, phone, mail, and Internet chat communications
v Word-of-mouth influence is often critical
v Buzz marketing cultivates opinion leaders

§Nonpersonal communication channels

Includes media, atmosphere, and events

Developing Effective Communication

•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

Setting the Promotional Budget and Mix

•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

•Setting the Total Promotional Budget

§Objective-and-Task Method

Specific objectives are defined
v Tasks required to achieve objectives are
determined
v Costs of performing tasks are estimated, then
summed to create the promotional budget

Setting the Promotional Budget and Mix

•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
Promotion Tools •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

Setting the Promotional Budget and Mix
Promotion Tools •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

Setting the Promotional Budget and Mix
Promotion Tools •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

Setting the Promotional Budget and Mix
Promotion Tools •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

Setting the Promotional Budget and Mix
Promotion Tools •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

Setting the Promotional Budget and Mix

•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.