Chapter 16 Designing and Managing Integrated Marketing Communications

Chapter 16 Designing and Managing Integrated Marketing Communications Power. Point by Karen E. James Louisiana State University - Shreveport © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 0

Objectives § Learn the major steps in developing an effective integrated marketing communications program. § Understand the steps involved in developing an advertising program. § Learn how companies can exploit the marketing potential of sales promotion, public relations, direct marketing, and e-marketing. © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 1

Marketing Communications Platforms § Advertising § Public relations § Sales Promotion § Direct marketing § Personal selling © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 2

Developing Effective Marketing Communications Steps in Marketing Communications Program Development § Identify target audience § Establish the budget § Determine objectives of communication § Select the marketing communications mix § Design the message § Measure results § Select communication channels § Manage the IMC process © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 3

Developing Effective Marketing Communications § Step 1: Identifying the target audience – Includes assessing the audience’s perceptions of the company, product, and competitors’ company/product image § Step 2: Cognitive, affective, and behavioral objectives may be set § Step 3: AIDA model guides message design © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 4

Developing Effective Marketing Communications Message Design § Content § Structure § Format § Source © 2003 Prentice Hall, Inc. § Message content decisions involve the selection of appeal, theme, idea, or USP § Types of appeals – Rational appeals – Emotional appeals – Moral appeals To accompany A Framework for Marketing Management, 2 nd Edition 5

Developing Effective Marketing Communications Message Design § Content § Structure § Format § One-sided vs. two-sided messages § Order of argument presentation § Source © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 6

Developing Effective Marketing Communications Message Design § Content § Structure § Format § Source © 2003 Prentice Hall, Inc. § Message format decisions vary with the type of media, but may include: – Graphics, visuals – Headline, copy or script – Sound effects, voice qualities – Shape, scent, texture of package To accompany A Framework for Marketing Management, 2 nd Edition 7

Developing Effective Marketing Communications Message Design § Content § Structure § Format § Source © 2003 Prentice Hall, Inc. § Message source characteristics can influence attention and recall § Factors underlying perceptions of source credibility: – Expertise – Trustworthiness – Likability To accompany A Framework for Marketing Management, 2 nd Edition 8

Developing Effective Marketing Communications § Step 4: Selecting Communication Channels – Personal communication channels l Effectiveness derives from personalization and feedback l Several methods of stimulating personal communication channels exist – Nonpersonal communication channels l Influence derives from two-step flow-ofcommunication process © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 9

Developing Effective Marketing Communications Methods of Stimulating Personal Communication § Devoting extra effort to influential individuals or companies § Developing advertising with high “conversation value” § Creating opinion leaders § Use viral marketing § Working through influential community members § Developing word-of-mouth referral channels § Using influential people in testimonial advertising § Establishing an electronic forum © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 10

Developing Effective Marketing Communications § Step 5: Establishing the Marketing Communications Budget – Affordability method – Percentage-of-sales method – Competitive-parity method – Objective-and-task method § Step 6: Deciding on the Marketing Communications Mix © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 11

Developing Effective Marketing Communications Mix Selection § Types of promotional tools § Selection factors © 2003 Prentice Hall, Inc. § Advertising § Sales promotion § Public relations and publicity § Direct marketing § Personal selling To accompany A Framework for Marketing Management, 2 nd Edition 12

Developing Effective Marketing Communications Mix Selection § Types of promotional tools § Selection factors © 2003 Prentice Hall, Inc. § Consumer vs. business market § Stage of buyer readiness § Stage of product life cycle § Market rank To accompany A Framework for Marketing Management, 2 nd Edition 13

Developing Effective Marketing Communications § Step 7: Measure Results – Recognition, recall, attitudes, behavioral responses § Step 8: 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 © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 14

Developing and Managing the Advertising Campaign The Five Ms of Advertising § Objectives can be classified by aim: – Inform – Persuade – Remind – Reinforce § Mission § Money § Message § Media § Measurement © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 15

Developing and Managing the Advertising Campaign The Five Ms of Advertising § Mission § Money § Message § Media § Measurement © 2003 Prentice Hall, Inc. § Factors considered when budget-setting: – Stage of product life cycle – Market share and consumer base – Competition and clutter – Advertising frequency – Product substitutability To accompany A Framework for Marketing Management, 2 nd Edition 16

Developing and Managing the Advertising Campaign The Five Ms of Advertising § Mission § Money § Message § Media § Measurement © 2003 Prentice Hall, Inc. § Factors considered when choosing the advertising message: – Message generation – Message evaluation and selection – Message execution – Social responsibility review To accompany A Framework for Marketing Management, 2 nd Edition 17

Developing and Managing the Advertising Campaign The Five Ms of Advertising § Mission § Money § Message § Media § Measurement © 2003 Prentice Hall, Inc. § Developing media strategy involves: – Deciding on reach, frequency, and impact – Selecting media and vehicles – Determining media timing – Deciding on geographical media allocation To accompany A Framework for Marketing Management, 2 nd Edition 18

Developing and Managing the Advertising Campaign Major Media Types § Newspapers § Outdoor § Television § Yellow pages § Direct mail § Newsletters § Radio § Brochures § Magazines § Telephone § Internet © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 19

Developing and Managing the Advertising Campaign § Deciding on Media Categories – Target audience’s media habits, nature of the product and message, cost § Media Timing Decisions – Macroscheduling vs. microscheduling – Continuity, concentration, flighting, and pulsing scheduling options § Deciding on Geographical Allocation © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 20

Developing and Managing the Advertising Campaign The Five Ms of Advertising § Mission § Evaluating advertising effectiveness – Communicationeffect research – Sales-effect research § Money § Message § Media § Measurement © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 21

Sales Promotion § Sales promotions are short-term incentives designed to stimulate purchase among consumers or trade § Purpose of sales promotion – Attract new triers or brand switchers – Reward loyal customers – Increase repurchase rates © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 22

Sales Promotion Steps in Sales Promotion Program Development § Establish objectives § Select consumerpromotion tools § Select trade-promotion tools § Select business- and sales force promotion tools § Develop the program § Pretest the program § Implement and evaluate the program © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 23

Sales Promotion Major Consumer-Promotion Tools § Samples § Free trials § Coupons § Product warranties § Cash refunds (rebates) § Tie-in promotions § Premiums § Cross-promotions § Prizes (contests, sweepstakes, games) § Point-of-purchase displays and demonstrations § Patronage awards © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 24

Public Relations § Public relations activities promote or protect the image of a firm or product § Public relations functions: – Press relations – Product publicity – Corporate communications – Lobbying – Counseling © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 25

Public Relations § Marketing Public Relations (MPR) – Plays an important role in l New product launches l Repositioning of mature brand l Building interest in product category l Influencing specific target groups l Defending products with public problems l Building the corporate image § Three Major MPR Decisions © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 26

Public Relations Major Public Relations Tools § Publications § Speeches § Events § Sponsorships § Public-service activities § News § Identity media © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 27

Direct Marketing § Direct marketing uses consumer-direct channels to reach and deliver offerings to consumers without intermediaries. § Direct marketing is growing and offers consumers key benefits. § Firms are recognizing the importance of integrated direct marketing efforts. © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 28

Direct Marketing Major Direct Marketing Tools § Face-to-face selling § Direct mail § Direct-response TV marketing § Catalog marketing § Kiosk marketing § Telemarketing § E-marketing © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 29

Direct Marketing § Steps in Developing a Direct-Mail Campaign: – Step 1: Set objectives – Step 2: Identify target markets – Step 3: Define the offer – Step 4: Test the elements – Step 5: Measure results © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 30