Integrated Marketing Communication (IMC) Role of Marketing Communication Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process The Role of Marketing Communication • The changing marketing communication environment • Marketing communication, brand equity, and sales Marketing Communication Mix 1. 2. 3. 4. 5. 6. 7. Advertising Sales promotion Public relations and publicity Events & experiences Direct & interactive marketing Word of mouth marketing Personal selling Marketing communication increases in brand equity 1. 2. 3. 4. Brand awareness Brand image Brand responses Brand relationship • The communication process models Macro model of the communication process (Fig 17.2, p.514) Role of Marketing Communication Developing Effective Marketing Communication Micro model of the communication process (Fig 17.3, p. 515) Deciding on the Marketing Communication Mix Managing the IMC Process Developing Effective Communications Identifying Target Audience Primary/Secondary/Influencer Determine Objectives Design Communications Category need/Brand awareness/Brand attitude/ Brand purchase intention • Message strategy (what to say) • Creative strategy (how to say it) • Message source (who should say it) • Personal communication channels (social channels, Select Channels advocate, expert) • Non-personal communication channel Establish Budget Decide on Media Mix Measure Results Manage IMC Role of Marketing Communication • • • • Media Sales promotion Events & experiences Public relations • Integration of communication channels Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process Developing Effective Communications Identifying Target Audience Determine Objectives Design Communications Select Channels Establish Budget Decide on Media Mix Measure Results 1. 2. 3. 4. Affordable method % of sales method Competitive parity method Objective & task method • Establish the market share goal • Determine the % of the market that should be reached by advertising • Determine the % of aware prospects that should be persuaded to try the brand • Determine the number of advertising impressions per 1% trial rate • Determine the number of gross rating points that would have to be purchased • Determine the necessary advertising budget on the basses of the average cost of buying a gross rating point Manage IMC Role of Marketing Communication Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process Deciding on the Marketing Communication Mix Factors in setting the marketing communication mix Identifying Target Audience • Type of product market (B2B/B2C) • Buyer’s readiness stage • Product lifecycle stage Determine Objectives Design Communications Characteristic of marketing communication mix 1. Select Channels • Persuasiveness • Amplified expressiveness • Impersonality Establish Budget 2. Decide on Media Mix Manage IMC Role of Marketing Communication 4. Event & experiences Direct & indirect marketing • Customised • Up-to-date • Interactive 6. Word of mouth • Credible • Personal • Timely Public relations & publicity • High credibility • Ability to catch buyers offguard • Dramatization Measure Results 5. Sales promotion • Communication • Incentive • Invitation 3. • Involving • Implicit Advertising 7. Personal selling • Personal interaction • Cultivation • Response • Relevant Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process Deciding on the Marketing Communication Mix Measure Result Identifying Target Audience • Intermediate outputs (reach, frequency, recall, recognition Determine Objectives Design Communications scores, persuasion changes, cost per thousand) • Behavior change Select Channels Establish Budget Decide on Media Mix Measure Results Manage IMC Role of Marketing Communication Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process Managing the IMC Process • Coordinating media • Implementing IMC • • • • • • Coverage Contribution Commonality Complementary Versatility Cost Role of Marketing Communication Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process Managing Mass Communications: Advertising, Sales promotion, Events & Experiences, Public Relations Role of Marketing Communication Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process Developing & Managing an Advertising Program 1. 2. Setting the objective • Informative advertising • Persuasive advertising • Reminder advertising • Reinforcement advertising Deciding on the advertising budget • Factor that effects budget consideration a. b. c. d. e. 3. Stage in the product lifecycle Market share & consumer base Competition & clutter Advertising frequency Product substitutability • Advertising elasticity Developing the advertising campaign • Message generation & evaluation • Creative development & execution (TV/print/radio) • Legal and social issues Role of Marketing Communication Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process Deciding on Media & Measuring Effectiveness 1. Deciding on reach, frequency, and impact (p.545 – reach, frequency, impact, total number of exposure) 2. Choosing among major media types • • • • • 3. Alternative advertising options • • • • 4. Target audience Media habits Product characteristics Message characteristics Cost 5. Place advertising (out of home) Product placement Point of purchase Evaluating alternative media Selecting specific media vehicles 6. • • • • Circulation Audience Effective audience Effective ad – exposure audience Role of Marketing Communication Developing Effective Marketing Communication Deciding on media timing & allocation • • • • Continuity Concentration Flighting Pulsing Evaluating advertising effectiveness • Communication-effect research (Pre-test, Post-test) • Sales-effect research (fig 18.4 p. 554) Deciding on the Marketing Communication Mix Managing the IMC Process Sales Promotion 1. 2. 3. Objectives Advertising VS Promotion Major decisions • Establishing objectives • Selecting consumer promotion tools – table 18.5 p. 557 • Selecting trade promotion tools –table 18.6 p.558 • Selecting business and sales promotion tools –table 18.7 p. 559 • Developing the program • Pretesting, implementing, controlling, and evaluating the program Role of Marketing Communication Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process Events & Experiences 1. Event Objectives • • • • • • • • 2. To identify with a particular target market or lifestyle To increase awareness of company or product name To increase or reinforce perceptions of key brand image associations To enhance corporate image To create experiences and evoke feelings To express commitment to the committee or on social issues To entertain key clients or reward key employees To permit merchandising or promotional opportunities Major sponsorship decisions i. Choosing events ii. Designing sponsorship programs iii. Measuring sponsorship activities • Direct tracking of sponsorship-related promotions • Qualitative research • Quantitative analysis 3. Creating experiences Role of Marketing Communication Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process Public Relations 1. Marketing Public Relations (publicity) • • • • • • • 2. Launching new product Repositioning a mature product Building interest in a product category Influencing specific target groups Defending products that have encountered public problems Building the corporate image in a way that effects favorably on its products Major decisions in marketing Public Relations • Establishing objectives • Choosing message and vehicles (table 18.8 p.568) • Implementing the plan and evaluating results Role of Marketing Communication Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process Managing personal communication: Direct & interactive marketing, word of mouth Role of Marketing Communication Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process Direct Marketing 1. 2. The benefit of direct marketing Direct mail • • • • • 3. 4. 5. 6. Objectives Target markets and prospects Offer elements Testing elements Measuring campaign success Catalog marketing Telemarketing Other media for direct-response marketing Public and ethical issues in direct marketing • • • • Irritation Unfairness Deception and fraud Invasion of privacy Role of Marketing Communication Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process Interactive Marketing 1. 2. Advantage and disadvantage of interactive marketing Placing ads and promotions on-line I. Websites • Ease of use • The site download quickly • The 1st page is easy to understand • Easy to navigate to other pages that open quickly • Physical attractiveness • Individual page is cleaned not crammed with content • Type faces and font sizes are very readable • Good use of color (and sound) • 7Cs: context/content/community/customization/communication/ communication/connection/commerce II. III. IV. V. VI. Microsites VII. Sponsorships Search ads VIII. Alliances Display ads IX. Online communities Interstitials X. E-mail Internet –specific ads & videos XI. Mobile Marketing Role of Marketing Communication Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process Word of Mouth 1. Buzz and viral marketing • How to start a buzz fire p.588 • Buzz agent’s word-of-mouth dos and don’ts 2. 3. 4. Opinion leaders Blogs Measuring the effects of word of mouth (WOM) Role of Marketing Communication Developing Effective Marketing Communication Deciding on the Marketing Communication Mix Managing the IMC Process