Integrated Marketing Communication Strategy

1. Integrated Marketing Communication Strategy MGT 252, lecture 10a

2. 14-2 Learning Goals Name and define the five tools of the marketing communications mix Discuss the process and advantages of integrated marketing communications Outline the steps in developing effective marketing communications Explain the methods for setting the marketing communications budget and factors that affect the design of the promotion mix

3. 14-3 Marketing the anything-but-ordinary car presented big challenges. The MINI is a tiny but potent car that has a retro 60s look. Canadians tend to be serious about their cars. The marketing team concluded that In Canada the car performance was the main attribute to stress. BMW choose Taxi as its advertising agency. Taxi created an integrated strategy with unified brand personality: �The MINI is an individualistic, high-performance, premium vehicle that�s fun to drive.� The campaign began with a 60-second movie theatre spot called �Anthem�. Traditional print and outdoor advertising followed next: �parks as faster than a Ferrari�, �Onramps are foreplay�, and �The world is your go-kart track�. Ads were placed everywhere Edgy and humorous TV spots were also used. Other components: �Velocity� parties, online contests, driving events, and investments in showroom improvements. Hip dealerships were selected and trained in a new soft-sell approach. Product placement in the remake of The Italian Job, online marketing, and publicity. Finally word of mouth. The campaign was a huge success and annual sales goals were exceeded. Case StudyBMW MINI

4. 14-4 Learning Goals Name and define the five tools of the marketing communications mix Discuss the process and advantages of integrated marketing communications Outline the steps in developing effective marketing communications Explain the methods for setting the marketing communications budget and factors that affect the design of the promotion mix

5. 14-5 The MarketingCommunications Mix 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.

6. 14-6 Figure 14.1 Integrated Marketing Communications

7. 14-7 The MarketingCommunications Mix Advertising: Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor Sales promotion: Short-term incentives to encourage purchase or sale of a product or service Public relations: Building good relations and corporate image with the company�s publics using publicity, and handling unfavourable events Personal selling: Personal presentation by the firm�s sales force for the purpose of making sales and building customer relationships Direct marketing: Direct communications with targeted individuals to obtain an immediate response and lasting customer relationships

8. 14-8 Learning Goals Name and define the five tools of the marketing communications mix Discuss the process and advantages of integrated marketing communications Outline the steps in developing effective marketing communications Explain the methods for setting the marketing communications budget and factors that affect the design of the promotion mix

9. 14-9 The Marketing Communications Environment is Changing: Mass markets have fragmented, causing marketers to shift away from mass marketing to target marketing. Improvements in information technology are facilitating segmentation Media fragmentation has occurred with companies doing less broadcasting and more narrowcasting Integrated Marketing Communications

10. 14-10 This ad from Advertising Age Magazine attempts to pull advertisers to Television

11. 14-11 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

12. 14-12 The Need for Integrated Marketing Communications The Internet must be integrated into the broader IMC mix Best bet is to wed traditional branding efforts with the interactivity and service capabilities of online communications Integrated Marketing Communications

13. 14-13 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. Integrated Marketing Communications

14. 14-14 Discussion Question How does Taco Bell practice IMC? Have the students think about color and logo. Their packaging on all their products, their event sponsorship, their advertising, their website, all tie together to create IMC.Have the students think about color and logo. Their packaging on all their products, their event sponsorship, their advertising, their website, all tie together to create IMC.

15. 14-15 Learning Goals Name and define the five tools of the marketing communications mix Discuss the process and advantages of integrated marketing communications Outline the steps in developing effective marketing communications Explain the methods for setting the marketing communications budget and factors that affect the design of the promotion mix

16. 14-16 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 a customer might have with the brand. Effective communication requires knowledge of how communication works.

17. 14-17 Figure 14.2Elements in theCommunication Process

18. 14-18 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 Steps in DevelopingEffective Communication

19. 14-19 Figure 14.3Buyer-Readiness Stages

20. 14-20 Who is the target? Which readiness stage? Awareness Knowledge Liking Preference Conviction Purchase This ad is targeted to single women to buy diamond rings for themselves � not to wait for the diamond for their left ring finger but to consider the other hand. Most women are aware of diamond rings, but this ad works to build knowledge and understanding that buying a diamond for themselves is a good idea. Some students might say it is preference and choosing the diamond over another ring or piece of jewelry.This ad is targeted to single women to buy diamond rings for themselves � not to wait for the diamond for their left ring finger but to consider the other hand. Most women are aware of diamond rings, but this ad works to build knowledge and understanding that buying a diamond for themselves is a good idea. Some students might say it is preference and choosing the diamond over another ring or piece of jewelry.

21. 14-21 Steps in DevelopingEffective Communication Step 3: Designing a Message AIDA framework guides message design Message content contains appeals or themes designed to produce desired results Rational appeals: relate to the audience�s self-interest Emotional appeals: stir up negative or positive feelings using humour, fear, pride, joy, or even disgust Moral appeals: related the audience�s sense of right versus wrong

22. 14-22 What is appeal? Rational appeals Emotional appeals Love, pride, joy, humor, fear, guilt, shame Moral appeals MasterCard really set a trend for credit card companies when they began to run rational/emotional ads. Prior to this, credit card companies were always rational appeals.MasterCard really set a trend for credit card companies when they began to run rational/emotional ads. Prior to this, credit card companies were always rational appeals.

23. 14-23 What is appeal? Rational appeals Emotional appeals Love, pride, joy, humor, fear, guilt, shame Moral appeals This ad is purely emotional. A rational ad for this product would talk about convenience or nutrition.This ad is purely emotional. A rational ad for this product would talk about convenience or nutrition.

24. 14-24 Discussion Question Why can humour be a particularly effective appeal? Humor often breaks through the clutter and grabs the consumer�s attention. Also, it has been found to improve recall on day-after recall tests. Students should be aware that sometimes humor can detract from the product or message unless it is a proper fit with the product. This ad is an excellent fit.Humor often breaks through the clutter and grabs the consumer�s attention. Also, it has been found to improve recall on day-after recall tests. Students should be aware that sometimes humor can detract from the product or message unless it is a proper fit with the product. This ad is an excellent fit.

25. 14-25 Steps in DevelopingEffective 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.

26. 14-26 Steps in DevelopingEffective Communication 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

27. 14-27 Steps in DevelopingEffective Communication Step 5: Selecting the Message Source Highly credible sources are more persuasive A poor spokesperson can tarnish a brand

28. 14-28 Discussion QuestionEffective Spokespeople? What makes an effective spokesperson? When should they NOT be used? An effective spokesperson is credible and a good fit for the product and the target. People can relate to the spokesperson or look up to them as an aspirational role model. An ineffective spokesperson might be someone who is overused (perhaps Tiger Woods). In addition, many companies choose not to use someone who is high risk for improper or illegal behavior. Some companies are actually beginning to choose high-risk spokespeople (Reebok) because they are considered edgy, cool and hip.An effective spokesperson is credible and a good fit for the product and the target. People can relate to the spokesperson or look up to them as an aspirational role model. An ineffective spokesperson might be someone who is overused (perhaps Tiger Woods). In addition, many companies choose not to use someone who is high risk for improper or illegal behavior. Some companies are actually beginning to choose high-risk spokespeople (Reebok) because they are considered edgy, cool and hip.

29. 14-29 Steps in DevelopingEffective Communication Step 6: Collecting Feedback Recognition, recall, and behavioural measures are assessed May suggest changes in product/promotion

30. 14-30 Advertising Recall Put away your notes Recall all the ads and marketing messages you have seen so far in this lecture This is a great opportunity to check on recall. The ads viewed so far include: King of Queens Diamonds MasterCard Quaker Oats Bites Norelco Vacuum Ask the students which ones they recall. Then try to determine why they remember these. Was it impact, fit, recency? Explain to the students that they are a captive market who is focusing on the ads � imagine what happens in the real world.This is a great opportunity to check on recall. The ads viewed so far include: King of Queens Diamonds MasterCard Quaker Oats Bites Norelco Vacuum Ask the students which ones they recall. Then try to determine why they remember these. Was it impact, fit, recency? Explain to the students that they are a captive market who is focusing on the ads � imagine what happens in the real world.

31. 14-31 Learning Goals Name and define the five tools of the marketing communications mix Discuss the process and advantages of integrated marketing communications Outline the steps in developing effective marketing communications Explain the methods for setting the marketing communications budget and factors that affect the design of the promotion mix

32. 14-32 Setting the TotalPromotion 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

33. 14-33 Setting the TotalPromotion 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

34. 14-34 Setting the OverallCommunication Mix Determined by the nature of each promotion tool and the selected promotion mix strategy

35. 14-35 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 OverallCommunication Mix

36. 14-36 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 OverallCommunication Mix

37. 14-37 Advertising Personal Selling Sales Promotion Public Relations Direct Marketing 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 OverallCommunication Mix

38. 14-38 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 OverallCommunication Mix

39. 14-39 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 OverallCommunication Mix

40. 14-40 Figure 14.4Push vs. Pull Promotion Strategy

41. 14-41 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 Integrating the Promotion Mix

42. 14-42 Advertising and Sales Promotion Avoid false and deceptive advertising No bait and switch advertising Trade promotions can not favor certain customers over others Use advertising to promote socially responsible programs and actions Socially Responsible Communication

43. 14-43 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 Communication

44. 14-44 Learning Goals Name and define the five tools of the marketing communications mix Discuss the process and advantages of integrated marketing communications Outline the steps in developing effective marketing communications Explain the methods for setting the marketing communications budget and factors that affect the design of the promotion mix