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9. Integrated Marketing Communication Advertising Sales Promotion Public Relations Personal Selling Direct Marketing. Mini’s Guerrilla Marketing. Marketing Communications. The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about
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9 Integrated Marketing Communication Advertising Sales Promotion Public Relations Personal Selling Direct Marketing Professor Takada
Mini’s Guerrilla Marketing Professor Takada
Marketing Communications The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell. Professor Takada
IMC Builds Brands Professor Takada
Product Launch Communications Mix Kleenex allocated its communications dollars: • 75% Television • 23% Print • 2% Online Professor Takada
Factors in Setting Communications Mix • Type of product market • Consumer readiness to make a purchase • Stage in the product life cycle • Market rank Professor Takada
Field of Experience Sender’s field Receiver’s field Professor Takada
Elements in the Communications Process Professor Takada
The Communications Process Selective attention Selective distortion Selective retention Professor Takada
Response Hierarchy Models Professor Takada
ROAD MAP: Previewing the Concepts • Integrated marketing communications Five promotion tools and the factors that must be considered in shaping the overall promotion mix. • Advertising: The major decisions involved in developing an advertising program. • Sales promotion: How do sales promotion campaigns are developed and implemented? • Public relations: How do companies use public relations to communicate with their publics? • Personal selling: Role of a company’s salespeople, six major steps and process of sales force management • Direct marketing: Major forms of direct marketing. Professor Takada
Marketing Communications Mix • Advertising • Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. • Sales Promotion • Short-term incentives to encourage the purchase or sale of a product or service. • Public Relations • 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 rumors, stories, and events. • Personal Selling • Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. • Direct Marketing • Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—the use of telephone, mail, fax, e-mail, the Internet, and other tools to communicate directly with specific consumers. Professor Takada
The Changing Communications Environment Two factors are changing the face of today’s marketing communications: As mass markets have fragmented, marketers are shifting away from mass marketing Vast improvements in information technology are speeding the movement toward segmented marketing The Need for IMC Using IMC, the company carefully integrates and coordinates its many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands. Professor Takada
Integrated Marketing Communication Professor Takada
Public Relations Advertising Sales Promotion • Very believable. • Reaches people who avoid salespeople and ads. • Can dramatize a company or product. • Under utilized. • Effective and economical. • Wide assortment of tools. • Attracts consumer attention. • Offers strong incentives to buy. • Invites and rewards quick consumer response. • Effects are short-lived. • Can reach masses of geographically dispersed buyers. • Can repeat a message many times. • Is impersonal, one-way communication. • Can be very costly for some media types. Personal Selling Direct Marketing • Many forms that share four characteristics: Nonpublic/Immediate/Customized/Interactive • Well suited to highly targeted marketing. • Involves personal interaction. • Allows relationship building. • Most expensive promotion tool. Professor Takada
Push vs. Pull Promotion Strategy Professor Takada
Cost Effectiveness by Buyer Readiness Stage Professor Takada
Current Consumer States for Two Brands Professor Takada
Personal Communications Channels Advocate channels Expert channels Social channels Professor Takada
Coordinating Media to Build Brand Equity Brand Signature Ad Retrieval Cues Media Interactions Professor Takada
ROAD MAP: • Integrated marketing communications Five promotion tools and the factors that must be considered in shaping the overall promotion mix. • Advertising: The major decisions involved in developing an advertising program. • Sales promotion: How do sales promotion campaigns are developed and implemented? • Public relations: How do companies use public relations to communicate with their publics? • Personal selling: Role of a company’s salespeople, six major steps and process of sales force management • Direct marketing: Major forms of direct marketing. Professor Takada
Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Professor Takada
Procter & Gamble’s Advertising History Professor Takada
Major Decisions in Advertising Professor Takada
Setting Advertising Objectives • An advertising objective: • A specific communication task to be accomplished with a specific target audience during a specific period of time. • Classified by purpose: • Inform • Persuade • Compare • Remind Professor Takada
Communications Objectives Category Need Brand Awareness Brand Attitude Purchase Intention Professor Takada
Factors to Consider in Setting an Advertising Budget Stage in the product life cycle Market share and consumer base Competition and clutter Advertising frequency Product substitutability Professor Takada
Affordable Based on What the Company Thinks it Can Afford Percentage-of-Sales Based on a Percentage of Current or Forecasted Sales Competitive-Parity Set Budget to Match Competitors Setting the Advertising Budget Objective-and-Task Set Objectives, Determine Tasks to Achieve Objectives, Sum of Task Costs Equals Budget Professor Takada
Objective-and-Task Method • Establish the market share goal. • Determine the percentage that should be reached. • Determine the percentage of aware prospects that should be persuaded to try the brand. • Determine the number of advertising impressions per 1% trial rate. • Determine the number of gross rating points that would have to be purchased. • Determine the necessary advertising budget on the basis of the average cost of buying a GRP. Professor Takada
Developing Advertising Strategy • Two major elements: • Message decisions • Media decisions Professor Takada
Message Strategy Identify Customer Benefits Develop Compelling Creative Concept The “Big Idea” Advertising Appeals Should Be Meaningful, Believable, & Distinctive Professor Takada
Image The set of beliefs, ideas, and impressions a person holds regarding an object. Professor Takada
Communications Objectives Category Need Brand Awareness Brand Attitude Purchase Intention Professor Takada
Designing the Communications • Message strategy • Creative strategy • Message source • Personal communication channels • Nonpersonal communication channels • Integration Professor Takada
Creative Strategy • Informational and transformational appeals • Positive and negative appeals • Fear • Guilt • Shame • Humor • Love • Pride • Joy Professor Takada
Positioning statement Key message Target market Objectives Key brand benefits Brand promise Evidence of promise Media Background Creative considerations Creative Brief Professor Takada
The Importance of Taglines Professor Takada
Message Source Celebrity Characteristics • Expertise • Trustworthiness • Likeability Professor Takada
Stimulating Personal Influence Channels • Identify influential individuals and devote extra attention to them • Create opinion leaders • Use community influentials in testimonial advertising • Develop advertising with high “conversation value” • Develop WOM referral channels • Establish an electronic forum • Use viral marketing Professor Takada
Nonpersonal Communication Channels Media Sales Promotion Events and Experiences Public Relations Professor Takada
Message Execution Slice of Life Testimonial Evidence or Endorsement Lifestyle Scientific Evidence Fantasy Technical Expertise Typical Approaches Mood or Image Personality Symbol Musical Professor Takada Comparative advertising, celebrity endorsement (Nike with Tiger Woods), humor in ads.
Message Execution • Choose a tone • Use memorable, attention-getting words • Choose correct format elements • Illustration • Headline • Copy Professor Takada
Media Decisions • Reach & Frequency, Gross Rating Point (GRP) • Media Impact • The qualitative value of a message exposure through a given medium Media Timing Media Type • Major media types: • Newspapers, TV, DM, radio, magazines, outdoor, Internet. • Factors to consider: • Media habits of target consumers • Nature of the product • Type of message • Cost • Media vehicles • Specific media within each general media type • Must decide how to schedule the advertising over the course of a year • Follow seasonal pattern • Oppose seasonal pattern • Same coverage all year • Choose the pattern of the ads • Continuity • Pulsing Professor Takada
Advantages Reaches broad spectrum of consumers Low cost per exposure Ability to demonstrate product use Ability to portray image and brand personality Disadvantages Brief Clutter High cost of production High cost of placement Lack of attention by viewers Television Professor Takada
Advantages Detailed product information Ability to communicate user imagery Flexibility Ability to segment Disadvantages Passive medium Clutter Unable to demonstrate product use Print Ads Professor Takada
Print Ad Components Headline Picture Signature Copy Professor Takada
Media Selection • Reach • Frequency • Impact • Exposure Professor Takada
Relationship among Trial, Awareness, and the Exposure Function Professor Takada
Reach x Frequency = GRPs Professor Takada
Choosing Among Major Media Types • Target audience and media habits • Product characteristics • Message characteristics • Cost Professor Takada