Integrated Marketing Communication Strategy Chapter 15 Objectives Know the tools of the marketing communications mix. Understand the process and advantages of integrated marketing communications. Learn the steps in developing effective marketing communications program. Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix. Push and Pull 15- 1 c UPS UPS is a $31 billion corporate giant UPS wanted to reposition itself as a supply chain solutions provider Developed new ad theme based on customer input Implemented, “What Can Brown Do for You?” campaign Realigned its sales and marketing organization Ads, web sites, and salespeople deliver message daily 15- 2 Definition The Marketing Communications Mix The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives. 15- 3 The Tools of Marketing Communications Mix Advertising Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Personal Selling Personal Presentations by a Firm’s Sales Force. Sales Promotion Short-term Incentives to Encourage Sales. Public Relations Direct Marketing Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity. Direct Communications With Individuals to Obtain an Immediate Response. 15- 4 Integrated Marketing Communications The Marketing Communications Environment is Changing: Mass markets have fragmented, causing marketers to shift away from mass marketing Media fragmentation is increasing Improvements in information technology are facilitating segmentation 15- 5 Marketers Have Shifted Away From Mass Marketing Less Broadcasting Two Factors are Changing the Face of Today’s Marketing Communications: Improvements in Information Technology Has Led to Segmented Marketing More Narrowcasting Market Fragmentation Led to Media Fragmentation The Changing Communications Environment 15- 6 Integrated Marketing Communications The Need for Integrated Marketing Communications Conflicting messages from different sources or promotional approaches can confuse company or brand images 15- 7 Integrated Marketing Communications* Company Carefully Integrates and Coordinates Its Many Communication Channels to Deliver a Clear, Consistent, Compelling Message. Packaging Event Marketing Advertising Message Direct Marketing Personal Selling Sales Promotion Public Relations 15- 8 A View of the Communications Process Marketers View Communications as the Management of the Customer Relationship Over Time Through the Following Stages: Preselling Selling PostConsumption Consuming 15- 9 Figure 15-2: Elements in the Communication Process 15- 10 Key Factors in Good Communication Sellers Need to Know What Audiences They Wish to Reach and Response Desired. Sellers Must be Good at Encoding Messages That Target Audience Can Decode. Sellers Must Develop Feedback Channels to Assess Audience’s Response to Messages. Sellers Must Send Messages Through Media that Reach Target Audiences 15- 11 Steps in Developing Communication Program* 1. 2. 3. 4. 5. 6. Identifying the Target Audience Determining the Response Sought Designing a Message Choosing Media Selecting the Message Source Collecting Feedback 15- 12 Steps in Developing Effective Communication Step 1. Identifying the Target Audience Step 2. Determining the Communication Objectives Buyer Readiness Stages Awareness Knowledge This ad for the Toyota Celica may be able to cover the first three stages of the buyerreadiness stages: awareness, knowledge, and liking. There is no mention of competitors, so it does not seem to establish preference. Liking Preference Conviction Purchase 15- 13 Steps in Developing Effective Communication Step 3. Designing a Message Is this ad making an emotional, rational, or moral appeal, or is it combining them? How much do the personified cows contribute to this ad? Is the ad structured to let the audience make a decision? Is this an effective ad? The same company puts lifelike statues of cows, with this slogan, into mall food courts. What makes that practice effective? Message Content Rational Appeals Emotional Appeals Moral Appeals Designing a Message Content The pictures and the slogan make this what type of appeal? Format This layout, almost like a yearbook or photo album, reinforces the sentimental aspect of this advertisement. Message Structure Draw Conclusions Argument Type Argument Order Message Format Headline, Illustration, Copy, & Color Body Language Click or press spacebar to return. 15- 14 Designing the Message Content Rational Appeals appeal to audience selfinterest Emotional Appeals fear, guilt, shame, humor, joy, love, pride Moral Appeals what is right or proper Designing the Message - Structure Conclusion Drawing negative when communicator is viewed as untrustworthy, if seen as explaining the obvious, if issue is too personal One vs. Two-sided Message one-better with favorably predisposed, two better with welleducated, those exposed to counter propaganda Order of Presentation primacy effect, recency effect Message Format Color, Sound, Appearance, Text, Illustration Media Channels Personal (word-of-mouth; sales person) Impersonal (media, atmospheres, events) Steps in Developing Effective Communication Step 4. Choosing Media Personal Communication Channels Nonpersonal Communication Channels Step 5. Selecting the Message Source Step 6. Collecting Feedback 15- 18 Selecting the Message Source Message Source credibility important expertise trustworthiness likability Collecting the Feedback Feedback awareness? trial? satisfaction? Setting the Total Promotion Budget Affordable Method CompetitiveParity Method Percentageof-Sales Method Objectiveand-Task Method 15- 21 Setting the Promotional Budget and Mix Setting the Overall Promotion Mix Determined by the nature of each promotional tool and the selected promotion mix strategy Revlon emphasizes advertising while Avon emphasizes personal selling 15- 22 Setting the Promotion Mix Nature of Each Promotion Tool Advertising Reaches Many Buyers, Expressive Impersonal Personal Selling Personal Interaction, Builds Relationships Costly Sales Promotion Provides Strong Incentives to Buy Short-Lived Public Relations Believable, Effective, Economical Underused by Many Companies Direct Marketing Nonpublic, Immediate, Customized, Interactive 15- 23 Factors in Developing Promotion Mix Strategies Push Strategy - “Pushing” the Product Through Distribution Channels to Final Consumers. • • Pull Strategy - Producer Directs It’s Marketing Activities Toward Final Consumers to Induce Them to Buy the Product. Type of Product/ Market Buyer/ Readiness Stage Product Life-Cycle Stage 15- 24 Figure 15-4: Push vs. Pull Promotion Strategy 15- 25 Setting the Promotional Budget and Mix Checklist: Integrating the Promotion Mix Analyze trends (internal and external) Audit communications spending Identify all points of contact Team up in communications planning Make all communication elements compatible Create performance measures Appoint an IMC manager 15- 26