Integrated Marketing Communications Strategy

1. Integrated Marketing Communications Strategy Chapter 14

2. Definition • Marketing communications • 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 • The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives. Goal 1: Know the tools of the marketing communications mix

3. Integrated marketing communications Carefully blended mix of promotion tools Consistent,clear,and compelling company and product Messages. Advertising Personal selling Sales promotion Public relations Direct marketing

4. Marketers Have Shifted Away From Mass Marketing Less Broadcasting Two Factors are Changing the Face of Today’s Marketing Communications: Market Fragmentation Led to Media Fragmentation Improvements in Information Technology Has Led to Segmented Marketing More Narrowcasting The Changing Communications Environment

5. 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. Goal 1: Know the tools of the marketing communications mix

6. 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 Goal 1: Know the tools of the marketing communications mix

7. 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 Promotional Mix Any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor. Promotion Tools Goal 4: Understand methods for setting budgets and designing the mix

8. 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 Promotional Mix Personal presentation by the firm’s sales force for the perpose of making sales and building customer relationship. Promotion Tools Goal 4: Understand methods for setting budgets and designing the mix

9. 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 Promotional Mix Short-term incentives to encourage the purchase or sale of a product or service. Promotion Tools Goal 4: Understand methods for setting budgets and designing the mix

10. 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 Promotional Mix Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavorable rumor stories and events. Promotion Tools Goal 4: Understand methods for setting budgets and designing the mix

11. 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 Promotional Mix Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting consumer relationships. Promotion Tools Goal 4: Understand methods for setting budgets and designing the mix

12. Advertising Print and broadcast ads Packaging inserts Motion pictures Brochures and booklets Posters Billboards POP displays Logos Videotapes Sales Promotion Contests, games, sweepstakes Premiums Sampling Trade shows, exhibits Coupons Rebates Entertainment Continuity programs Communication Platforms

13. Personal Selling Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows Public Relations Press kits Speeches Seminars Annual reports Charitable donations Publications Community relations Lobbying Identity media Company magazine Communication Platforms

14. Direct Marketing Catalogs Mailings Telemarketing Electronic shopping TV shopping Fax mail E-mail Voice mail Blogs Websites Communication Platforms

15. The promotional mix Slide 18-15

16. Factors that influence the use of promotional tools Slide 18-23

17. INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX • Stages of the Buying Process • Prepurchase Stage • Purchase Stage • Postpurchase Stage Slide 18-32

18. How the importance of promotional elements varies during the stages of consumer’s purchase decision Slide 18-33

19. Elements in the Communication Process

20. Elements in the communication process • Sender: the party sending the message to another party • Encoding: the process of putting thoughts into symbolic form • Message: the set of symbols that the sender transmits • Media: the communication channels through which the message moves from sender to receiver • Decoding: the process by which the receiver assigns meaning to the symbols and interprets them which was encoded by the sender • Receiver: the party receiving the message sent by sender • Response: the reactions of the receiver after being exposed to the message • Feedback: the part of the receiver’s response communicated back to the sender • Noise: the unplanned static or distortion during the communication process, which results in the receiver’s getting a different message than the intended one.

21. Steps in Developing Effective Communication Identifying the TargetAudience Determining the communication objectives Designing a Message Choosing Media Selecting the Message Source Collecting Feedback

22. Steps in developing effective marketing communication 1. Identifying the target audience: audience can be current users, potential users or those who influence buyer’s purchase decision. The target audience will heavily affect the communicator decisions on: what will be said, how it will be said, when will it be used, where will it be said and who will say it.

23. Steps in developing effective marketing communication Buyer readiness stages 2. Determining the communication objectives: the target audience may be in any of the six stages.

24. Steps in developing effective marketing communication 3. Designing a message: Message content: rational appeal, emotional appeal and moral appeal. Message structure Message format

25. Rational appeal • If ad is oriented to the knowledge stage, it will transmit basic product information. • In the preference stage, the ad shifts to presenting logical reasons why one particular brand is superior. • Most effective in the print media. • Works better for high-involvement and complex products

26. Informing

27. Emotional appeal • Reasons for using emotional appeal: • Rational appeal generally go un-noticed. • Emotional appeal can capture attention and foster an attachment. • Most creatives view emotional appeal as a key to brand loyalty. Creatives want customers to feel a bond with the brand.

29. Moral appeal This appeal is directed’ toward audience’s sense of what is right and what is wrong. They are often suggested to support for a social cause like cleaner environment or aid to the disadvantaged.

31. Message structure Message structure: the structure of a persuasive message can influence its effectiveness, including conclusion drawing, order of presentation, message sidedness.

32. Some ads present an open ended message for audience. That encourages consumers to be open to the idea and try the product.

34. Message format The basic components of a print ad are: The headline The body copy The visual or illustration and The layout

36. Creative tactics for television Like print ads, TV commercials have several components. The video and audio must work together to create the right impact and communicate the advertiser's message.

37. Video The video elements of a commercial are what is seen on the TV screen. The visual generally dominates the commercial, so it must attract attention and communicate an idea, message or image. A number of visual elements may have to be coordinated to produce a successful ad. Decisions have to be made regarding the product, presenter, action sequences, demonstrations as well as settings, the characters who will appear in the commercial and other factors as lighting, graphics, color and identifying symbols.

38. Audio The audio portion of the commercial includes voices, music, and sound effects. Voices are used in different ways in commercials. They may be heard through the direct presentation of a spokesperson or as a conversation among various people appearing in the commercial.

39. Setting the Promotional Budget • 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 Goal 4: Understand methods for setting budgets and designing the mix

40. Setting the Promotional Budget • Setting the Total Promotional 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 Goal 4: Understand methods for setting budgets and designing the mix

41. The objective and task approach Slide 18-47

42. Setting the Promotional Mix • Setting the Overall Promotion Mix • Determined by the nature of each promotion tool and the selected promotion mix strategy Goal 4: Understand methods for setting budgets and designing the mix

43. 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. Goal 4: Understand methods for setting budgets and designing the mix

44. Push versus pull promotion strategy Producer marketing activities Reseller marketing activities Producer Retailer & wholesalers Consumers Push strategy Demand Demand Producer Consumers Retailer & wholesalers Producer marketing activities Pull strategy Real Marketing 14.2

45. Advertising, Personal selling. Public relations & Sales Promotions Chapter 15 & 16

46. Definition • Advertising • Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

47. Major advertising decisions

48. Possible advertising objectives • Informative advertising: is used when introducing a new product category. Consumers need a lot of information before the purchase hence these messages provide required information. • Persuasive advertising: becomes very important when competition increases. It can also be called comparative advertising where companies compare directly or indirectly with one or more other brands. • Reminder advertising: is important for mature products- it helps to maintain customer relationships and keep consumers thinking about the product.