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Chapter 14
Integrated Marketing Communication Strategy
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Marketing Communication Mix or Promotion Mix
Product’s Design
Product’s Price
Product’s
Package
Stores that Sell the Product
3
The Changing Communications Environment
Two Factors are Changing the Face of Today’s
Marketing Communications:
Improvements in Information Technology
Has Led to Segmented MarketingMore Narrowcasting
Marketers Have ShiftedAway From Mass
MarketingLess Broadcasting
Mark
et
Fragm
en
tati
on L
ed
to
Media
Fra
gm
enta
tion
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The Need for Integrated Marketing Communications
With Integrated Marketing Communications (IMC), the Company Carefully Integrates and Coordinates Its Many Communications Channels to Deliver a Clear, Consistent, and
Compelling Message About the Organization and Its Product or
Service.
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PresellingPreselling SellingSelling
Post-Consumption
Post-Consumption ConsumingConsuming
Marketers View Communications as the Management of the Customer Relationship Over Time Through the Following Stages:
A View of the Communications Process
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Elements in the Communication Process (Fig. 14.2)
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Sellers Need to Know What Audiences
They Wish to Reach and Response
Desired.
Sellers Need to Know What Audiences
They Wish to Reach and Response
Desired.
Sellers Must be Good at Encoding MessagesThat Target Audience
Can Decode.
Sellers Must be Good at Encoding MessagesThat Target Audience
Can Decode.
Key Factors in Good Communication
Sellers Must Send Messages Through Media that Reach Target Audiences
Sellers Must Send Messages Through Media that Reach Target Audiences
Sellers Must DevelopFeedback Channels to
Assess Audience’sResponse to
Messages.
Sellers Must DevelopFeedback Channels to
Assess Audience’sResponse to
Messages.
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Step 1. Identifying the Target Audience
Step 2. Determining the Communication ObjectivesBuyer Readiness Stages
PurchasePurchase
Conviction
Preference
Liking
Knowledge
Awareness
Steps in Developing Effective Communication
This ad for the Toyota Celicamay be able to cover the firstthree stages of the buyer-readiness s tages : awareness,knowledge, and liking.
There is no mention ofcompetitors , so it does notseem to establish preference.
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Step 3. Designing a Message
Message ContentRational Appeals
Emotional AppealsMoral Appeals
Message StructureDraw ConclusionsArgument TypeArgument Order
Message FormatHeadline, Illustration,
Copy, & ColorBody Language
Steps in Developing Effective Communication
Designing aMessage
ContentThe pictures and the slogan make this whattype of appeal?
FormatThis layout, almost like a yearbook or photoalbum, reinforces the sentimental aspect of this advertisement.
Click or press spacebar to return.
Is this ad making an emotional,rational, or moral appeal, or is itcombining them? How muchdo the personified cowscontribute to this ad?
Is the ad structured to let the audience make a decision?
Is this an effective ad?
The same company puts lifelikestatues of cows, with this slogan,into mall food courts. Whatmakes that practice effective?
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Nonpersonal CommunicationChannels
Step 4. Choosing Media
Personal CommunicationChannels
Step 5. Selecting the Message Source
Step 6. Collecting Feedback
Steps in Developing Effective Communication
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Affordable Based on What the
Company Can Afford
Objective-and-Task Based on Determining
Objectives & Tasks, Then Estimating Costs
Objective-and-Task Based on Determining
Objectives & Tasks, Then Estimating Costs
Percentage of SalesBased on a Certain Percentageof Current or Forecasted Sales
Percentage of SalesBased on a Certain Percentageof Current or Forecasted Sales
Competitive-ParityBased on the Competitor’s
Promotion Budget
Competitive-ParityBased on the Competitor’s
Promotion Budget
One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on
Promotion.
Setting the Total Promotion Budget
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Advertising Advertising
Personal Selling
Personal Selling
SalesPromotion
SalesPromotion
PublicRelations
PublicRelations
DirectMarketing
DirectMarketing
Reach Many Buyers, Repeat Message Many Times, Impersonal,
Expensive
Reach Many Buyers, Repeat Message Many Times, Impersonal,
Expensive
Personal Interaction, Relationship Building, Most Expensive Promo
Tool
Personal Interaction, Relationship Building, Most Expensive Promo
Tool
Wide Assortment of Tools, Rewards Quick Response, Efforts
Short-Lived
Wide Assortment of Tools, Rewards Quick Response, Efforts
Short-Lived
Very Believable, Dramatize a Company or Product,
Underutilized
Very Believable, Dramatize a Company or Product,
Underutilized
Nonpublic, Immediate, Customized, InteractiveNonpublic, Immediate, Customized, Interactive
Setting the Promotion Mix
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Strategy that Calls for Spending A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand.
Strategy Selected Depends
on:
Type of Product-Market &
Product Life-Cycle
Stage
Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels.
Promotion Mix Strategies
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Discussion Connections
Describe the promotion mix of a company like Kellogg, Coca-Cola, Campbell, or some other consumer goods producer. What pull promotion elements does the
company use? What push elements? Are the company’s communications
well integrated?
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Socially Responsible Marketing Communication
Advertising and Sales Promotion Companies must avoid false and deceptive
advertising. Sellers must avoid bait-and-switch
advertising. Trade promotion activities are also closely
regulated.
Personal Selling Salespeople must follow the rules of “fair
competition”. Three-day cooling-off rule Salespeople must not disparage competitors.
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Review of Concept Connections
Name and define the tools of the marketing communication mix.Discuss the process and advantages of integrated marketing communication.Outline the steps in developing effective marketing communications.Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix.
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Chapter 15
Advertising, Sales Promotion, and Public Relations
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Advertising
Advertising is centuries old.U.S. advertisers spend in excess of $212 billion each year; worldwide spending exceeds $414 billion.Advertising is used by: Business firms, Nonprofit organizations, Professionals, and Social agencies.
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What is Advertising?
Advertising is Any Paid Form of Nonpersonal
Presentation and Promotion of Ideas, Goods, or Services by an Identified
Sponsor.
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Major Advertising Decisions (Fig. 15.1)
Objectives Setting
•Communication objectives
•Sales Objectives
Budget Decisions•Affordable Approach•Percent of sales•Competitive parity•Objective and task
Message Decisions•Message Strategy
•Message Execution
Media Decisions•Reach, Frequency, Impact
•Major Media Types•Specific Media Types
•Media Timing
Campaign Evaluation•Communication Impact
•Sales Impact
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Informative AdvertisingInform Consumers or Build Primary Demand
i.e CD Players
Comparison Advertising
Compares One Brand to Another
i.e. Avis vs. Hertz
Persuasive AdvertisingBuild Selective Demand
i.e Sony CD Players
Reminder AdvertisingKeeps Consumers Thinking
About a Producti.e. Coca-Cola
Advertising ObjectiveSpecific Communication Task Accomplished with a Specific
Target Audience During a Specific Period of Time
Setting Advertising Objectives
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Creating the Advertising
Messages
Selecting the Advertising Media
Advertising Strategy Consists of Two Major Elements and Companies are Realizing the
Benefits of Planning These Two Elements Jointly.
Developing Advertising Strategy
23
Plan a Message StrategyGeneral Message to Be Communicated to Customers
Develop a Message Focus on
Customer Benefits
Develop a Message Focus on
Customer Benefits Creative Concept“Big Idea”
Visualization or PhraseCombination of Both
Creative Concept“Big Idea”
Visualization or PhraseCombination of Both
Advertising AppealsMeaningfulBelievableDistinctive
Advertising AppealsMeaningfulBelievableDistinctive
Developing Advertising Strategy: Creating Ad Messages
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TypicalMessage
ExecutionStyles
Testimonial EvidenceTestimonial Evidence Slice of LifeSlice of Life
Scientific EvidenceScientific Evidence LifestyleLifestyle
Technical ExpertiseTechnical Expertise FantasyFantasy
MusicalMusical
Personality SymbolPersonality Symbol Mood or ImageMood or Image
Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and
Interest.
Developing Advertising Strategy: Message Execution
What type of message execution do these two ads employ?
Message Executi on
In both cases, what dis tinguishes the product from theres t of the ad?
Click or p ress spacebar to retu rn.
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Step 1. Decide on Reach, Frequency, and Impact
Step 2. Choosing Among Major Media TypesMedia Habits of Target Consumers,
Nature of the Product, Types of Message, Cost
Step 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:Audience Quality & Attention, Editorial Quality
Step 4. Deciding on Media TimingScheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
Advertising Strategy:Selecting Advertising Media
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Communication Effects
Is the Ad Communicating Well?
Communication Effects
Is the Ad Communicating Well?
Advertising Program Evaluation
Sales Effects
Is the Ad Increasing Sales?
Sales Effects
Is the Ad Increasing Sales?
Evaluating Advertising
27
Discussion Connections
Advertising objectives can be classified by primary purpose: to inform, persuade, or remind.Using your local newspaper, find examples of ads pursuing each of the above.Apply Table 15.1 to explain your answers.
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What is Sales Promotion ?
Sales Promotion is a Mass Communication Technique
That Offers Short-Term Incentives to Encourage
Purchase or Sales of a Product or Service.
Offers Reasons to Buy Now.
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Rapid Growth of Sales Promotion
Sales promotion can take the form of consumer promotions, business promotions, trade promotions or sales force promotions.Rapid growth in the industry has been achieved because: Product managers are facing more pressure to
increase their current sales, Companies face more competition, Advertising efficiency has declined, Consumers have become more deal oriented.
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Sales Promotion Objectives
Increase short-term sales or help build long-term market share.Get retailers to: carry new items and more inventory, advertise products, give products more shelf space, and buy product ahead.
In general, sales promotion should focus on consumer relationship building.
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SampleSample
CouponsCoupons
Cash RefundsCash Refunds
Price PacksPrice Packs
PremiumsPremiums
Advertising Specialties
Advertising Specialties
Trial amount of a productTrial amount of a product
Savings when purchasing specified products
Savings when purchasing specified products
Refund of part of the purchase priceRefund of part of the purchase price
Reduced prices marked on the label or package
Reduced prices marked on the label or package
Goods offered free or low cost as an incentive to buy a product
Goods offered free or low cost as an incentive to buy a product
Articles imprinted with an advertiser’s name given as gifts
Articles imprinted with an advertiser’s name given as gifts
Major Consumer Sales Promotion Tools
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Patronage RewardsPatronage Rewards
Point-of-PurchasePoint-of-Purchase
ContestsContests
SweepstakesSweepstakes
GameGame
Cash or other rewards for the use of a certain product
Cash or other rewards for the use of a certain product
Displays and demonstrations that take place at the point of sale
Displays and demonstrations that take place at the point of sale
Consumers submit an entry to be judged
Consumers submit an entry to be judged
Consumers submit their names for a drawing
Consumers submit their names for a drawing
Presents consumers with something every time they buy
Presents consumers with something every time they buy
Major Consumer Sales Promotion Tools
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Trade-Promotion Objectives
Persuade Retailers or Wholesalers to Carry a Brand
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf SpaceGive a Brand Shelf Space
Promote a Brand in Advertising
Promote a Brand in Advertising
Push a Brand to ConsumersPush a Brand to Consumers
Major Trade Sales Promotion Tools
Trade-Promotion Tools
DiscountsDiscounts
AllowancesAllowances
Sales Promotion
This K ibble s ‘n Bit spromotion offeredpet owners a chanceto see their dogs ina commercial.
Which of the fourobj ectives does thistype of promoti onfulfill?
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Decide on the Size of the IncentiveDecide on the Size of the Incentive
Set Conditions for ParticipationSet Conditions for Participation
Evaluate the ProgramEvaluate the Program
Determine How to Promote andDistribute the Promotion Program Determine How to Promote and
Distribute the Promotion Program
Determine the Length of the ProgramDetermine the Length of the Program
Developing the Sales Promotion Program
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What is Public Relations?
Public Relations Involves 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.
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Press Relations or AgentryPress Relations or Agentry
Product PublicityProduct Publicity
Public AffairsPublic Affairs
LobbyingLobbying
Investor RelationsInvestor Relations
DevelopmentDevelopment
Public Relations Departments May Perform Any of All of the Following
Functions:
Major Public Relations Functions
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News
Speeches
Special Events
Written MaterialsAudiovisual
Materials
Corporate Identity
Materials
Public Service
Activities
Web Site
Major Public Relations Tools
38
Setting Public Relations ObjectivesSetting Public Relations Objectives
Choosing the Public Relations Messages and Vehicles
Choosing the Public Relations Messages and Vehicles
Implementing the Public Relations PlanImplementing the Public Relations Plan
Evaluating Public Relations ResultsEvaluating Public Relations Results
Major Public Relations Decisions
39
Review of Concept Connections
Define the roles of advertising, sales promotion, and public relations in the promotion mix.Describe the major decisions involved in developing an advertising program.Explain how sales promotion campaigns are developed and implemented.Explain how companies use public relations to communicate with their publics.