Integrated Marketing Communications

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Integrated Marketing Communications

• Communicating about the company, the product, and
  the brands

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Todays Discussion

• Designing an Integrated Marketing Strategy
• Who are the targets?
• What is our objective?
• What is our content?
• What tools should we use?
• How should we evaluate our efforts?

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Steps in Marketing Communications Program
Development

• Identify target audience
• Determine objectives of communication
• Design the message
• Select communication channels

• Establish the budget
• Select the marketing communications mix
• Measure results
• Manage the IMC process

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Who are the targets?

• Push vs. pull?
• What do we know about the targets?
• Usage patterns, loyalty, media habits, profile

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Question

• Under what conditions might a firm heavily target
  communications at all levels in a distribution
  channel by combining a push and pull strategy?

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What is our objective?

• What kind of response are we wanting from the
  audience?
• Cognitive, affective, or behavioral response
• Inform, persuade, remind
• What is the targets level of involvement with
  what we want them to know and how much do they
  already know?
• How do our objectives differ based upon the stage
  of customer development?

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How do our objectives differ based upon the stage
of customer development?
Stage of Development Objectives
Based on Table 14.3 Capon and Hulbert
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How do we decide on content?

• Message content decisions involve the selection
  of appeal, theme, idea, or USP
• Types of appeals
• Rational appeals
• Emotional appeals
• Moral appeals

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What tools should we use?

• Promotions (Communications) mix
• Advertising
• Sales Promotion
• Public Relations
• Personal Selling
• Direct Marketing

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Question

• Research has shown that many people treat their
  pets as they would true members of the family.
• Suppose you opened a bakery that made only
  nutritional pet treats, doggy birthday cakes and
  cheesecakes, and made-to-order pet food. How
  could you use each of the previously mentioned
  marketing communications platforms in your
  business?

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Question

• Social critics have attacked advertising at both
  the individual and aggregate level. How would
  you attempt to justify the legitimacy of this
  pervasive phenomenon?

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How do I set the budget?

• Establishing the Marketing Communications Budget
• Affordability method
• Percentage-of-sales method
• Competitive-parity method
• Objective-and-task method

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Figure 16-2 Cost-Effectiveness of Different
Promotional Tools at Different Buyer-Readiness
Stages
14
Question

• Many advertisers use CPM (cost per thousand) as a
  decision criterion for choosing print media
  vehicles. Do you believe this is wise? What
  other considerations should enter into the choice?

15
Question

• Many sponsorship activities reflect the personal
  interests of senior executives, rather than
  enhancing shareholder value for the sponsor.
  Discuss this statement, using your own examples
  as illustrations.

16
Question

• Sales promotions are often thought to reduce
  brand equity. Can you think of three examples
  where promotional activities undoubtedly
  contributed to increased brand equity? What
  makes these promotions different?

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How should we evaluate our efforts?

• Determine memory for messages
• Recognition, recall, attitudes, behavioral
  responses
• Determine cost effectiveness of different
  promotional tools
• Different tools are appropriate for different
  stages of customer readiness
• Marketing research to determine perceptions

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Manage the Integrated Marketing Communications
Process

• Provides stronger message consistency and greater
  sales impact
• Improves firms ability to reach right customers
  at right time with right message

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For those that have not had much exposure to the
Promotions Mix.more detail follows ?

• See Text for additional details

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Advertising...

• Paid, nonpersonal forms of communication
  transmitted through mass media
• Often the most visible component of the marketing
  mix
• Transmitted through the Internet, television,
  newspapers, magazines, direct mail,
  outdoor, etc.

Ferrell et al. slide
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Considerations in Advertising...

• Provides cost efficiency for large audiences
• high aggregate cost
• Allows focused or broad targeting
• web advertising
• prime time, general interest network
  advertising

Ferrell et al. slide
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Types of Advertising...

• Institutional
• Advocacy
• Pioneer
• Competitive/comparative
• Reminder
• Reinforcement

Ferrell et al. slide
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Evaluating Advertising Effectiveness

• Determine perceived image
• Evaluate attitudes
• Determine purchase behavior/intent
• pretest versus posttest results

Ferrell et al. slide
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Public Relations...

• Used to foster a positive relationship between an
  organization its stakeholders
• Begins with an understanding of current images
  opinions
• May create a specific image
• high quality
• innovativeness
• integrity
• value

Ferrell et al. slide
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Public Relations Methods...

• News releases
• Feature articles
• Press conferences

Ferrell et al. slide
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Advertising versus Public Relations

• What are the benefits of advertising compared to
  public relations?
• What are some of the unique benefits of public
  relations?
• Which has greater credibility with consumers?
• How do you justify hiring a public relations and
  advertising agency to manage your companys
  external communication?

Ferrell et al. slide
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Personal Selling...

• Paid personal communications that attempts to
  inform customers about products persuade them
  to purchase
• Personalized costly form of communication
• Requires a highly skilled well trained
  salesforce

Ferrell et al. slide
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Personal Selling Activities...

• Finding prospects
• Informing prospects
• Persuading prospects to buy
• Keeping current customers satisfied

Ferrell et al. slide
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Sales Promotion...

• Any activity or object that acts as an incentive
  or inducement providing value for a buyer
• All promotional communication activities, other
  than personal selling, advertising, public
  relations

Ferrell et al. slide
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Consumer Sales Promotion Methods...

• Coupons
• Demonstrations
• Frequent user incentive programs
• Point of purchase displays
• Free samples
• Consumer contests, games sweepstakes

Ferrell et al. slide
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Business-to-Business Trade Sales Promotion

• Buying allowance
• temporary price reduction (by quantity)
• Buy-back allowance
• money to a reseller for each unit bought
• Merchandise allowance
• manufacturers paying resellers for promotional
  efforts
• Cooperative advertising
• Sales contests

Ferrell et al. slide