Topic 84

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Topic 8-4
Marketing Management (MAR4803) By Kanghyun Yoon

• Serving the Customers
• Communicating the Values

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Issues To Be Discussed

• Lets consider the following issues to understand
  about integrated marketing communications.
  
• Issue 1 What is the role of marketing
  communications?
  
• The important concepts for this issue are .
• Issue 2 How to design and manage an effective
  integrated marketing communications?
  
• The important concepts for this issue are .
• Issue 3 How to choose a right marketing
  communication mix?
  
• The important concepts for this issue are .

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Issue 1Understanding the essence of marketing
communications
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Introduction to Promotion

• What is the role of marketing communication?
• The company needs to carefully coordinate
  communication elements to deliver a clear,
  consistent, and compelling message about its
  products, i.e., market offerings.
• It is about designing and managing Integrated
  Marketing Communications (IMC).
  
• The Communication Process Models (Figure 17.3)
• AIDA model
• Hierarchy-of-Effects Model
• Innovation-Adoption Model
• Communication Model
• Key goals of marketing communication
• To inform, to persuade, or to remind
• Ultimately, to establish brand equity
• Specifically, brand awareness, brand image, brand
  responses, and brand relationships.

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Issue 2 How to design and manage an effective
marketing communications?
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Developing Effective Communications

• It is about eight steps of Integrated Marketing
  Communication (IMC).
  
• Step 1 Identifying the Target Audience
• Implement image analysis or audience analysis by
  assessing the current image of the company, its
  products, and its competitors.
  
• Step 2 Determining the Communication Objectives
• Four possible objectives (Rossiter and Percy )
• Category need (primary demand)
• Brand awareness
• Brand attitude
• Brand purchase intention
• Step 3 Designing the Communications
• What to say (message content or strategy), how to
  say (creative message structure), and who should
  say it (message source)
  
• Step 4 Selecting the Communications Channels
• Personal vs. non-personal communication channels

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Developing Effective Communications

• Step 5 Establishing Total Marketing
  Communication Budget
  
• Four common methods of determining promotion
  budget
  
• Affordable method, percentage-of-sales method,
  competitive-parity method, and objective-and-task
  method.
  
• Step 6 Determining the Marketing Communication
  Mix
  
• Understand the characteristics of each marketing
  communication mix.
  
• Advertising, sales promotion, public relations
  and publicity, events and experiences, direct
  marketing, personal selling.
  
• Consider type of product market, buyer-readiness
  stage, and product life-cycle stage.
  
• Step 7 Measuring Communication Results
• Measure the recall, awareness, attitude, purchase
  intensions, satisfaction, etc.
  
• Consider share of market, share of mind, and
  share of heart.
  
• Step 8 Managing Integrated Marketing
  Communications

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Issue 3How to choose a right marketing
communication mix?
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Characteristics of Comm. Mix

• Advertising
• Goals Build awareness, drive traffic, persuade
  to make sales, (re)position a product, remind the
  sales, etc.
  
• Types E-mail ads, wireless ads, banners, pop-up
  windows, sponsorships, interstitials,
  superstitials, etc.
  
• Sales Promotion
• Goals Stimulate instant sales using temporary
  inducements, increase store traffic, etc.
  
• Types coupons, sampling, contests sweepstakes
• Public Relation and Publicity
• Goals Create and maintain a favorable image and
  goodwill, persuade an audience, generate traffic,
  etc.
  
• Types Effective design of website, community
  building, online event, etc.
  
• Direct Marketing
• Goals Marketers consider all Internet promotion
  direct marketing since it is interactive and
  creates personal contact with audience members,
  and encourage an immediate sales.
• Types Click-through advertising, email
  marketing, viral marketing, opt-In opt-out,
  interactive web catalogs, direct sales using the
  website

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Promotional Goals

• Based on the stages of Buyer Readiness Model
• Goal 1 Building Awareness
• Website Design seven Cs of effective website
  design.
  
• Search Engine Optimization (SEO)
• 47 of web users use search engine (by Jupiter
  Media Metrix).
  
• Top 10 results to a search query get 78 more
  traffic.
  
• How to improve their rankings at search engines
  metatags and keywords.
  
• Goal 2 Increasing Site Traffic
• Site Stickiness An indicator of attractiveness
  of a website.
  
• Total page views/month divided by unique visitors
  per month.
  
• Sticky features community building by discussion
  boards, online chat rooms, and online events,
  etc.
  
• Goal 3 Maximizing value-added experience with
  store/website
  
• Satisfaction with the store environment or
  website
  
• Satisfaction with information contents and
  navigation flow (website design).
  
• Goal 4 Generation of Sales on the Internet
• Lead to Sales How to improve conversion rate?
• Utilize sales promotion offers such as coupons,
  sampling, sweepstakes, and so on.

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Reference

• Blackwell, Roger D., Paul W. Miniard, and James
  F. Engel (2001), Consumer Behavior, 9th ed.,
  Harcourt College Publishers.
  
• Kotler, Philip and Gary Armstrong (2004),
  Principles of Marketing, 10th ed., Prentice
  Hall.
  
• Kotler, Philip and Kevin Lane Keller (2007), A
  Framework for Marketing Management, 3rd ed.,
  Pearson Prentice-Hall, New Jersey.
  
• Kotler, Philip and Kevin Lane Keller (2007),
  Marketing Management, 12th ed., Pearson
  Prentice-Hall, New Jersey.
  
• Lehmann, Donald R. and Russell S. Winer (2005),
  Analysis for Marketing Planning, 6th ed.,
  McGraw-Hill, Boston.
  
• Winer, Russell S. (2007), Marketing Management,
  3rd ed., Pearson Prentice-Hall, New Jersey.