Chapter 14 Integrated Marketing Communication Strategy 1 Marketing

Chapter 14 Integrated Marketing Communication Strategy 1

Marketing Communication Mix or Promotion Mix Product’s Design Product’s Price Stores that Sell the Product’s Package 2

The Changing Communications Environment 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 Marketers Have Shifted Away From Mass Marketing Less Broadcasting 3

The Need for Integrated Marketing Communications With Integrated Marketing Communications (IMC), the Company Carefully Integrates and Coordinates Its Many Communications Channels to Deliver a Clear, Consistent, and Compelling Message About the Organization and Its Product or Service. 4

Integrated Marketing Communications (Fig. 14. 1) Advertising Personal selling Sales promotion Public relations Direct marketing 5

A View of the Communications Process Marketers View Communications as the Management of the Customer Relationship Over Time Through the Following Stages: Preselling Selling Post. Consumption Consuming 6

Elements in the Communication Process (Fig. 14. 2) 7

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 8

Steps in Developing Effective Communication Step 1. Identifying the Target Audience Step 2. Determining the Communication Objectives Buyer Readiness Stages Awareness Knowledge Liking Preference Conviction Purchase 9

Steps in Developing Effective Communication Step 3. Designing a Message Content Rational Appeals Emotional Appeals Moral Appeals Message Structure Draw Conclusions Argument Type Argument Order Message Format Headline, Illustration, Copy, & Color Body Language 10

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 11

Setting the Total Promotion Budget One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on Promotion. Affordable Percentage of Sales Based on What the Company Can Afford Based on a Certain Percentage of Current or Forecasted Sales Objective-and-Task Competitive-Parity Based on Determining Objectives & Tasks, Then Estimating Costs Based on the Competitor’s Promotion Budget 12

Setting the Promotion Mix Advertising Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive Personal Selling Sales Promotion Public Relations Direct Marketing Personal Interaction, Relationship Building, Most Expensive Promo Tool Wide Assortment of Tools, Rewards Quick Response, Efforts Short-Lived Very Believable, Dramatize a Company or Product, Underutilized Nonpublic, Immediate, Customized, Interactive 13

Promotion Mix Strategies Strategy that Calls for Spending A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand. Strategy Selected Depends on: Type of Product. Market & Product Life -Cycle Stage Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels. 14

Discussion Connections How do the integrated marketing communications and promotion mix concepts relate to one another? Describe the promotion mix of a company like Kellogg, Coca-Cola, Campbell, or some other consumer goods producer. n n n What pull promotion elements does the company use? What push elements? Are the company’s communications well integrated? 15

Integrating the Promotion Mix Analyze trends – internal and external – that can affect your company’s ability to do business. Audit the pockets of communications spending through the organization. Identify all contact points for the company and its brands. Team up in communications planning. 16

Integrating the Promotion Mix Create compatible themes, tones, and quality across all communications media. Create performance measures that are shared by all communications elements. Appoint a director responsible for the company’s persuasive communications efforts. 17

Socially Responsible Marketing Communication Advertising and Sales Promotion n Companies must avoid false and deceptive advertising. Sellers must avoid bait-and-switch advertising. Trade promotion activities are also closely regulated. Personal Selling n n n Salespeople must follow the rules of “fair competition”. Three-day cooling-off rule Salespeople must not disparage competitors. 18

Review of Concept Connections Name and define the tools of the marketing communication mix. Discuss the process and advantages of integrated marketing communication. Outline the steps in developing effective marketing communications. Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. 19