DAy 11 Markma

8/3/2019 DAy 11 Markma

1/57

Designing & Managing IntegratedMarketing Communications

Day 11 Markma


2/57

Designing & Managing Integrated MarketingCommunications

1. Modern marketing entails:a. developing a good product

b. pricing it attractivelyc. making it available

d. communicating it to present and potentialstakeholders and general public.2. The issue on communication is:

a. what to say

b. how to say itc. to whom to say itd. how often to say it.

Because of the increasing number of companies wantingto catch the increasingly divided attention of the

consumer.


3/57

Marketing Communications- means to inform, persuade, remind

consumers directly or indirectly about the

product and brand being sold.

- represent the voice of the brand and aremeans to establish dialogue and relationships

with consumers.


4/57

Role of marketingcommunications

1. Tell and show consumer why a product is used, bywhat kind of person, where used and when used.

2. Tell consumer who makes product and what

company and brand stand for.3. Inform consumer about incentive or reward for

trying or using product.4. Link brand to other people, places, events, brands,

experiences, feelings, things.5. Contribute to brand equity by establishing brand in

memory and crafting a brand image.


5/57

Marketing Communications andBrand Equity

1. Every brand contact delivers an impression that can weaken orstrengthen customer view of company.

2. Marketing communications activities contribute to brand equity:a. create brand awareness.

b. Link right associations to brand image inconsumers memory.

c. Elicit positive brand judgments or feelings.d. Facilitate stronger consumer-brand

connection.

These activities must be integrated to deliver consistent messageand achieve strategic marketing positioning.


6/57

Marketing communications mix made up ofsix major modes of communication .

1. Advertising any paid form of nonpersonal presentation and

promotion of ideas, goods, or services by identified sponsor.2. Sales promotion variety of short-term incentives to encourage

product/service trial or usage.3. Events & experiences company-sponsored activities and

programs aimed to create daily or special brand-relatedinteractions.

4. Public relations & publicity variety of programs to promote orprotect company image or individual products.

5. Direct marketing use of mail, phone, fax, email, or internet tocommunicate directly with or solicit response / dialogue fromspecific customers and prospects.

6. Personal sellingface to face interaction with present orprospective customer to make presentation, answering

questions, soliciting orders.


7/57

Advertising Salespromotion

Events/

Experience

PublicRelations

Personalselling

DirectMarketing

Print andbroadcast ads

Packaging-outer

Packaginginserts

Motion pictures

Brochures andbooklets

Posters andleaflets

Directories

Reprints of ads

Billboards

Display signs

Point-of-purchasedisplays

Audiovisualmaterial

Symbols andlogos

Videotapes

Contests,games,

sweepstakes,lotteries

Premium andgifts

Sampling

Fairs and tradeshows

Exhibits

Demonstrations

Coupons

Rebates

Low-interest

financingEntertainmentTrade-inallowances

Continuityprograms

Tie-ins

Sports

Entertainment

Festivals

Arts

Causes

Factory tours

Companymuseums

Street activities

Press kits

Speeches

Seminars

Annual reports

Charitabledonations

PublicationsCommunityrelations

Lobbying

Identity media

Companymagazine

Salespresentations

Sales meetings

Incentiveprograms

Samples

Fairs and tradeshows

Catalogs

Mailings

Telemarketing

Electronicshopping

TV shopping

Fax mailE-mail

Voice mail

Common Communication Platforms


8/57

MarketingCommunications

program

Brand

equity

Advertising

Sales

promotion

Events &experience

Public relations &publicity

Personal selling

Direct marketing

Brandawareness

Brandimage

Brandresponses

Brandrelationships

INTEGRATED MARKETING COMMUNICATIONS TO BUILD EQUITY


9/57

The communication process model

Sender Encoding

Media

Decoding RECEIVER

Noise

Feedback Response

Message


10/57

Marketing Communications & Consumer ResponseHierarchy ModelsAIDA

Model

Hierarchy-of-Effects

Model

Innovation-Adoption

Model

CommunicationsModel

Cognitive stage

Attention Awareness

Knowledge

Awareness Exposure

Reception

Cognitive response

Affective stage

Interest

Desire

Liking

Preference

Conviction

Interest

Evaluation

Attitude

Intention

Behavior Stage

Action Purchase

Trial

Adoption

Behavior


11/57

Developing Effective CommunicationsIdentify target audience

Determine objectives

Design communications

Select channels

Establish Budget

Decide on media mix

Measure results

Manage integrated marketing

communications


12/57

Identify target audience1. Target crucial in deciding on what, when, where,

whom to say.2. Often useful to define target audience in terms of

usage and loyalty.3. Image analysis can be done to profile target

audience on brand knowledge for further insight.

Image set of beliefs, ideas, impressions a person hason an object. Attitudes and actions are highlyconditioned by that objects image.


13/57

Setting Communications ObjectivesRossiter & Percy four possible objectivesa. Category need establishing a product or service

category as necessary.b. Brand awareness enable consumers to identify

(recognize or recall ) brand within category. Brandawareness provides a foundation for brand equity.

c. Brand attitude enhances ability to evaluate brand andits perceived ability to meet currently relevant need.

d. Brand purchase intention induces decision topurchase brand or take purchase-related action.


14/57

Designing the Communications1. Message strategy what to say.

a. Search for appeals or ideas that will tieinto brand positioning and help

establish points of parity orpoints of difference such as :product performance, extrinsicconsiderations.

b. Possible message anchor : reward,sensory, social, ego satisfaction.


15/57

Designing the Communications

2. Creative strategy how to say it in specificcommunication

a. Informational appealselaborates onproduct attributes or benefits. Appealsto reason.

b. Transformational appeals elaborateson non-product-related benefit orimage. Often appeals to emotion.


16/57

Designing the Communications

3. Message source credibility of spokesperson/endorser based on :

a. Expertise specialized knowledge of

the communicator to back up claim.b. Trustworthiness how objective and

honest communicator is perceived tobe.

c. Likeabilitythe communicatorsattractiveness e.g. candor, humor,naturalness.


17/57

The concept of congruitya. A person has positive attitude toward source and

message; orb. Negative attitude toward both

Principle of congruity implies communicators can usegood image to reduce their good image to reduce

some negative feelings toward a brand.


18/57

Principle of congruity and :1. Product- in some countries, certain products are

forbidden, cannot be advertised, or subject to strictregulations e.g. sin products.

2. Market segment No TV ads directed to certainage level.

3. Style Comparative ads allowed in US and

Canada but not in certain countries.

4. Local or global Use of local or global advertisingin all markets.


19/57

Selecting CommunicationsChannels1. Personal communications channels involve two or

more persons communicating directly face- to-face,person-to-audience, over telephone, via email.

Some applications :a. Product is expensive, risky, purchased

infrequently.b. Product suggests something about users taste,

status.


20/57

What companies can do to stimulate personalinfluence channels

a. Identify influential individuals, companies and devote extraeffort to them e.g. large company customers, journalists, policymakers, etc.

b. Create opinion leaders by supplying product on easy term.c. Work through community influentials.

d. Use believable or influential people in advertising testimonials.e. Develop advertising that has high conversation value.f. Develop word-of-mouth referral channels to build business.g. Establish electronic forum via viral marketing form of word-of-

mouth, word-of-mouth that involves passing of info from user touser.


21/57

Non-personal CommunicationsChannels

a. Media- print, broadcast, network media, electronicmedia, display media.

b. Sales promotions use of incentives to consumers,

trade,sales force.c. Events & experiences- sports, arts,

entertainment, cause events, less formalactivities that create novel brand interactions withconsumers.

d. Public relations communications directed tointernal or external audience.


22/57

Establishing TotalCommunications Budget1. Affordable method what company thinks it can afford.

a. Ignores role of promotions as investment and impact onsales volume.

b. Leads to uncertain budget and difficulty in long-range

planning.2. Percentage-of-sales method.a. Views sales as determinant of promotion. Should be

reverse.b. Set budget based on funds availability rather than on

market opportunities.c. Discourages experimentation with countercyclical

promotion or aggressive spending.d. No logical basis in choice of a percentage except past

practice.


23/57

Establishing TotalCommunications Budget

3. Competitive parity method to achieve share-of-voiceparity with competitors.

a. Supposed benefits

- Competitors expenditures represent collective wisdom ofindustry.

- Prevents price war

b. Limitations- No grounds to believe competitors know better.- Different company situations. Promotional budget hardly

a guide.- No guarantee budget parity prevents promo war.


24/57

Establishing TotalCommunications Budget

4. Objective-and-task method. Examples establishing:a. Market share goalb. % of market to be reached by advtg.c. % of aware prospects to be persuaded to try

brandd. No. of advertising impressions per X% trail

ratee. No. of gross rating points to be purchased.(

one exposure per 1% of pop.)f. Advtg. budget based on ave. cost to buy one

gross rating point.


25/57

Deciding on Marketing Mix

1.Varies from company-to-company withinindustry.

2.Continues search for investment efficiency.


26/57

Characteristics of MarketingCommunications Mix1. Advertising

a. Builds up long term image of productb. Triggers quick salesc. Efficiently reaches geographically dispersed buyers.

d. Consumers might believe a heavily advertised brandoffers good value.

Specifically, advertising :a. Is pervasive permits seller to repeat message many times.b. Amplifies expressiveness provides opportunities to

dramatize company, its products via artful use of print,sound, color.

c. Is impersonal a monologue. audience not obligated to pay

attention or respond.


27/57

Characteristics of MarketingCommunications Mix

2. Sales Promotion used to draw stronger, quicker buyerresponse for short run effects. Distinctive benefits:

a. Communication gains attention and may lead to

consumer purchase.b. Incentive- incorporates some concession,

inducement, contribution that gives value to consumer.c. Invitation includes distinct invitation to engage in

transaction now.


28/57


3. Public Relations & Publicity- appeal based onthree qualities :a. High credibility new stories and features

more authentic and credible than ads.b. Ability to catch buyers off guard can

reach prospects, who try to avoid salespeople and ads.

c. Dramatization potential to dramatizecompany and product.

Ch i i f M k i


29/57


4. Events & Experiences

a. Relevant can be seen as highly relevant as consumer getspersonally involved.

b. Involving Given live, real time quality, consumers can findevents /experience more actively engaging.

c. ImplicitIndirect or soft sell.

5. Direct Marketing customized, up-to-date, and interactive.6. Personal Selling most effective tool at later stages of buying

process particularly in building buyer preference, conviction, andaction. Attributes :

a. Personal interaction involves immediate and interactiverelationship between two or more persons. Each party ableto observe the others reaction.

b. Cultivation permits all kinds of relationships to emerge.c. Response makes buyer feel under some obligation to

listen to sales talk.

Factors in Setting Marketing


30/57

Factors in Setting MarketingCommunications Mix

1. Type of product. Examples :

a. Heavy advertising and promotions to launch aconsumer product.

b. More concentration on personal selling in B2B.c. Personal selling to increase distribution channels

and in-store visibility.2. Buyer-readiness stage. Examples :a. Advertising and publicity heavy in awareness-

building stage.b. Customer comprehension primarily affected by

advertising and personal selling.c. Customer conviction mostly influenced by

personal selling.d. Closing sale affected by personal selling and

sales promotion.


31/57

Factors in Setting Marketing

Communications Mix

3. Product Life-Cycle Stage and Cost Effectiveness

a. Introductory stage advertising, events &experiences,

Publicity followed by personal selling to gaindistribution, and promotion & direct marketing toinduce trial.

b. Growth stage word of mouth.

c. Maturity stage advertising, events & experiences,personal selling.d. Decline stage sales promo. Other

communication tools are reduced.


32/57

Measuring Communications Results entailsknowing from target audience :whether recognize orrecall communication, frequency of exposure, points

recalled, reaction to communication current andprevious attitudes to product and company.


33/57

Managing the Integrated MarketingCommunications (IMC) Process

IMC marketing communications planning thatrecognizes the added value of a comprehensive

plan. Evaluates the strategic roles of thecommunications disciplines and combines thesedisciplines to provide : Clarity, Consistency,Maximum Impact through the seamlessintegration of discreet messages.


34/57

Managing Mass Communications: Advertising,Sales Promotions, Events & PRDeveloping and managing the advertising program

Advertising any paid form of nonpersonal presentation andpromotion of ideas, goods, or services by identified

sponsor.

1. Most companies use services of advertising agency tocreate advtg. campaign, select & buy media.

2.Advtg. agencies are redefining themselves ascommunications companies. Offer clients to improveoverall communications effectiveness strategic andpractical advice on various forms of communications.


35/57

5Ms in developing advertisingprogram:1. Mission - the advertising objective2. Money how much can be spent

3. Message what message to send4. Media what media to use5. Measurement how to evaluate results


36/57

Advertising goal/objective specific

communications task and achievement level tobe accomplished with a specific audience in aspecific period/time. Ex.

Generate 30% brand awareness among

females in CDE households in 25-45 agegroup within 6 mos. from product launch date.


37/57

Kinds of advertising objectives1. Informative to create brand awareness and

knowledge on new products or features.2. Persuasive to create liking, preference,

conviction, purchase.3. Reminder to stimulate repeat purchase ofproduct or service.

4. Reinforcement to convince current users they

made right choice.


38/57

Basis of advertising objective : thorough

analysis of marketing situation. Examples :

1. Mature product class, company is market

leader, brand usage is low:Objective - reminder.

2. Product class new, company not market

leader, brand is superior to leader :Objective persuasive.


39/57

Setting Advertising Budget1.Product life cycle. New products typically require heavyinitial advtg support for awareness and trial usage.

2. Market share and consumer base. High market share brandneeds less advtg money as percentage of sales.

3. Competition and clutter. Many competitors mean more brandspending to be heard.

4. Frequency

5. Product substitutability. Brand in less-differentiated industry likemany consumer products needs more advertising money.


40/57

Developing Advertising Campaign1. Message strategy What ad wants to conveyabout brand.

2. Creative strategy How to convey brandmessage.


41/57

Factors in creative strategy1. Message generation & evaluation ( What )

a. need for fresh insights versus others.b. use of market research to know appeal that works best

with target audience.c. prepare a creative brief on positioning statement to

include key messages, target audience, communicationsobjectives, key brand benefits, brand support and media.

2. Creative development & execution ( How )a. copy strategy statement that includes objective, content,

support, and tone desired.

3. Social responsibility review.a. ensures that advertising does not violate social or legal

norms.


42/57

Deciding on reach, frequency, andimpactMedia selection is finding most cost-effective mediato deliver the desired number and type of exposure tothe target audience.

a.Reach ( R ) number of different

persons/households exposed to a particularschedule at least once during a specified period.

b. Frequency ( F ) number of times within a specified

period an average person/household is exposed to amessage.c. Impact ( I ) qualitative value of an exposure through

a given medium.


43/57

Relationships of above captured in ff.concepts : Example

a.Total number of exposures = Reach xfrequency

= 80% hholds x 3= 240 (gross rating points)

b. Weighted no. of exposure = R x F x I


44/57

Choosing among major mediatypes1. Factors

a. target audience media habitsb. product characteristics

c. message characteristicsd. cost


45/57

Alternative Advertising Options1. Place advertising or out-of-home

a. billboardsb. public spaces e.g lounges, airports, movies,

buses

2. Product placement in movies, TV, advertorials,branded entertainment.

3. Point-of Purchase


46/57

Selecting specific vehicle based onaudience size1. Circulation- number of physical units carrying the

advtg.2. Audience number of people exposed to the

vehicle including pass-on readership.3. Effective audience- number of people with target

audience characteristics exposed to vehicle.4. Effective ad-exposed audience- number of people

with target audience characteristics who actuallysaw the ad.


47/57

Media Timing and Allocation1. Macroscheduling scheduling advertising based on

season and business cycle.2. Microschedulingallocating expenditures within a short

period for maximum impact.a. Burst concentrated

b. Dispersed continuouslyc. Dispersed intermittently3. For new product launch, possible scheduling can be :

a. Continuity exposure is evenly in a given period.b. Concentration spending all in a given period.

c. Flighting advertising , no advertising,advertising.

d. Pulsing continuous low advertising followed byperiodical wave.


48/57

Evaluating AdvertisingEffectiveness1. Communication-effect research seeks to determine

if an ad is communicating effectively via copytesting.

2. Sales-effect research tries to measure salesgenerated by an ad that increases brandawareness and brand preference.

Caution : sales is influenced by many factors other thanadvertising.

Formula for Measuring Sales impact of


49/57

Share of expenditures

Share of voice

Share of mind and heart

Share of market

Formula for Measuring Sales impact ofAdvertising


50/57

Sales Promotion incentive tools , mostly shortterm, to stimulate quicker or greater purchase

of a particular product or service by consumersor trade.

Sales Promo Objectives

1.attract new triers, reward loyalty, increaserepurchase rate of occasional users.

2. Strengthen long term partnership ( B2B ).


51/57

Sales Promo Decisions1. Establishing objectives2. Choice of consumer promo tools3. Choice of trade promo tools

4. Choice of business & sales force promo tools5. Program development6. Pretesting, implementation, control and evaluation

of program


52/57

Events & ExperiencesEvents Objectives

1. Identify with a particular target market or life style.2. Increase product or company name awareness.

3. Create or reinforce consumer perception of keybrand image association.

4. Enhance corporate image dimension.5. Create experiences and evoke feelings.

6. Express commitment to community, social issues.7. Entertain key clients or reward key employees.8. Permit merchandising or promotional opportunities.


53/57

Major decisions1. Choice of event opportunities

2. Design of program sponsorship3. Measure of sponsorship activitiesa. Supply side : potential exposure to brand via

media exposure.b. Demand side : reported exposure from

consumers.Public Relations

a. Public any group that has actual or potential interestin or impact of companys ability to achieve its

objectives.b. Public relations ( PR)- a variety of programs aimed to

promote or protect a companys image or its

individual products.


54/57

PR functions1. Press relations present news and information about the

organization in the most positive light.2. Product publicity- sponsoring efforts to publicize specific

products.3. Corporate communicationspromote understanding of the

organization through internal/external communications.4. Lobbying- deal with legislators, govt officials to promote ordefend legislation and regulation.

5. Counseling advise management on public issues andcompany potential positions and image during good and bad

times.


55/57

Marketing Public Relations(formerly Publicity )1. Assist in launch of new products2. Assist in repositioning a mature product3. Build interest in a product category

4. Influence specific target group(s)5. Defend product with public problems6. Build corporate image that reflect favorably on

product.


56/57

Major MPR Decisions1. Setting Objectives2. Choice of message and vehicle(s)

3. Plan implementation4. Results evaluation


57/57

- END -

Documents

DAy 11 Markma