Integrated Marketing Communications: Advertising, Promotions. And Other MarCom Tools

1. Integrated Marketing Communications: Advertising, Promotions. And Other MarCom Tools

2. LEARNING OBJECTIVES LEARNING OBJECTIVES Appreciate the variety of marketing communications tools, and how they work together to accomplish communication objectives Understand the nature, importance, and features of integrated marketing communications Describe the concept of brand-equity enhancement and the role of marketing communications in facilitating this objective • Appreciate the variety of marketing communications tools, and how they work together to accomplish communication objectives. • Understand the nature, importance, and features of integrated marketing communications. • Describe the concept of brand-equity enhancement and the role of marketing communications in facilitating this objective.

3. LEARNING OBJECTIVES Comprehend the factors that determine how different marketing communications elements are effectively combined Discuss the primary decisions spheres involved in managing the marketing communications process Know the major activities involved in formulating advertising strategy • Comprehend the factors that determine how different marketing communications elements are effectively combined. • Discuss the primary decision spheres involved in managing the marketing communications process. • Know the major activities involved in formulating advertising strategy.

4. LEARNING OBJECTIVES Recognize the role of sales promotion. Appreciate the reasons why this form of marketing communication has experienced rapid growth, and know the tasks that it can and cannot accomplish Evaluate the nature and function of public relations Appreciate sponsorship marketing and the practices of event marketing and cause-related marketing • Recognize the role of sales promotion, appreciate the reasons why this form of marketing communication has experienced rapid growth, and know the tasks that it can and cannot accomplish. • Evaluate the nature and function of public relations. • Appreciate sponsorship marketing and the practices of event marketing and cause-related marketing

5. LEARNING OBJECTIVES • Understand the role, importance, and growth of point-of-purchase communications. Understand the role, importance, and growth of point-of-purchase communications

6. THE TOOLS OF MARKETING COMMUNICATIONS Advertising Publicity PersonalSelling MarCom Mix P-O-P SalesPromotion Sponsorship

7. Personal Selling • Person-to-person communication in which a seller informs and educates prospective customers and attempts to influence their purchase choices.

8. THE TOOLS OF MARKETING COMMUNICATIONS Advertising Publicity PersonalSelling MarCom Mix P-O-P SalesPromotion Sponsorship

9. Advertising • Nonpersonal communication that is paid for by an identified sponsor and involves either mass communication and other media or direct-to-consumer communication via direct mail.

10. THE TOOLS OF MARKETING COMMUNICATIONS Advertising Publicity PersonalSelling MarCom Mix P-O-P SalesPromotion Sponsorship

11. Publicity or Public Relations • Non-personal communication to a mass audience that is not directly paid for by the company.

12. THE TOOLS OF MARKETING COMMUNICATIONS Advertising Publicity PersonalSelling MarCom Mix P-O-P SalesPromotion Sponsorship

13. Sales Promotion • All the marketing activities that attempt to promote immediate sales of a product.

14. THE TOOLS OF MARKETING COMMUNICATIONS Advertising Publicity PersonalSelling MarCom Mix P-O-P SalesPromotion Sponsorship

15. Sponsorship • The practice of promoting the interests of a company and its brands by associating the company with a specific event.

16. THE TOOLS OF MARKETING COMMUNICATIONS Advertising Publicity PersonalSelling MarCom Mix P-O-P SalesPromotion Sponsorship

17. Point-of-Purchase (P-O-P) • Includes all signage (displays, posters, signs, shelf cards, and other visual materials) designed to influence buying decisions at the point of sale.

18. KEY PARTICIPANTS IN MARKETING COMMUNICATIONS Advertising Publicity PersonalSelling MarCom IntegratedMarketing Communications P-O-P SalesPromotion Sponsorship • Integrated Marketing Communication (IMC) • A system of managing and integrating marketing communication elements with the result that all elements adhere to the same message

19. Key Aspects of Integrated Marketing Communications Starts with the Customer • Requires careful study of customers’ communication usage pattern and information needs • Communication media (contact points) is dictated by the customer’s needs and behavior • Involves an outside-in approach to decision making

20. Key Aspects of Integrated Marketing Communications Use Any Form of Relevant Contact • Use all forms of communication and all sources of contact • Communication media (contact points) is dictated by the customer’s needs and behavior • Involves utilization of communication outlets that are appropriate for reaching the target audience

21. Key Aspects of Integrated Marketing Communications Achieve Synergy • Another key aspect of IMC is the need for synergy • All communication elements should convey the same, unified message, otherwise consumers will be confused

22. Key Aspects of Integrated Marketing Communications Build Relationships • Successful marketing requires building a relationship between the brand and the customer • Entails repeat purchase and loyalty • More profitable to build and maintain relationships than to continuously search for new customers

23. Key Aspects of Integrated Marketing Communications Affect Behavior • More than awareness or attitude changes but must include behavioral changes • Moving people to action

24. Key Changes in MarCom Practice Resulting from the IMC Thrust 1. Reduced Dependence in Mass-Media Advertising 2. Increased reliance on highly targeted communications methods 3. Expanded efforts to assess return on investment

25. THE MARCOM CHALLENGE: ENHANCE BRAND EQUITY Brand Recognition Brand Awareness Attributes Brand Recall Types of Brand Associations Benefits Brand Image Favorability, Strength, and Uniqueness of Brand Association Overall Evaluation (Attitude) • Figure 12.1 Brand Knowledge

26. Brand Equity • A brand possesses equity to the extent that consumers are familiar with the brand and have stored in memory favorable, strong, and unique brand associations Brand Awareness Brand Image

27. Brand Awareness • Whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked Brand Image Brand Awareness

28. Brand Image • The associations that come to mind when contemplating a particular brand • Brand association - the particular thoughts and images that a consumer has about a brand Brand Awareness Brand Image

29. DETERMINING AN APPROPRIATE MIX OF IMC TOOLS • Who is the intended market? • Business-to-business market or consumer market? • Understanding of the product’s target market Market Objectives Nature of the Product Life-cycle Stage Competitive Actions Budget Push vs. Pull

30. DETERMINING AN APPROPRIATE MIX OF IMC TOOLS • What are the objectives? • Do we want to create product category wants or brand preference? Market Objectives Nature of the Product Life-cycle Stage Competitive Actions Budget Push vs. Pull

31. The Hierarchy of Effects Purchase • Insert Figure 12.2 Purchase Intention Attitude Beliefs/Knowledge Awareness Unawareness

32. DETERMINING AN APPROPRIATE MIX OF IMC TOOLS • What is the nature of the product? • Business-to-business products versus consumer goods Market Objectives Nature of the Product Life-cycle Stage Competitive Actions Budget Push vs. Pull

33. DETERMINING AN APPROPRIATE MIX OF IMC TOOLS • What is the product life-cycle stage? • New product versus a mature product Market Objectives Nature of the Product Life-cycle Stage Competitive Actions Budget Push vs. Pull

34. DETERMINING AN APPROPRIATE MIX OF IMC TOOLS • What are competitors doing? • Does the competition allow trade allowances and, if so, how large? Market Objectives Nature of the Product Life-cycle Stage Competitive Actions Budget Push vs. Pull

35. DETERMINING AN APPROPRIATE MIX OF IMC TOOLS • What is the available budget for promotion? • Do we emphasize personal selling or mass advertising? Market Objectives Nature of the Product Life-cycle Stage Competitive Actions Budget Push vs. Pull

36. DETERMINING AN APPROPRIATE MIX OF IMC TOOLS • Will a push or pull strategy be most effective? • Trade allowances and personal selling versus advertising and sales promotion • Combination of push and pull technique Market Objectives Nature of the Product Life-cycle Stage Competitive Actions Budget Push vs. Pull

37. Push vs. Pull Strategy Push Strategy Pull Strategy VS

38. Push Strategy • Utilizes aggressive trade allowances and personal selling to obtain wholesaler and retailer distribution • The product is pushed through the channel

39. Pull Strategy • Encourages consumer demand for the product to obtain distribution • Use of heavy advertising and high value coupons

40. MANAGING THE MARCOM PROCESS Selecting Target Market Formulating and Implementing Message and Media Strategies Establishing Objectives Formulating a Positioning Strategy Setting Budget Evaluating Program Effectiveness

41. MANAGING THE MARCOM PROCESS Selecting Target Market • Allows marketing communicators to more precisely deliver messages to the target group • Attempts to avoid wasting money outside the target market • Identify potential target markets in terms of a combination of characteristics that will cause these consumers to act in a similar fashion (demographics, lifestyles and so on)

42. MANAGING THE MARCOM PROCESS Establishing Objectives • Objectives must fit within the company’s overall corporate and marketing objectives • Must also be realistic and stated in quantitative terms with the amount of projected change and the time duration specified

43. MANAGING THE MARCOM PROCESS Formulating a Positioning Strategy • Essential activity in developing successful MarCom programs • Clear statement defining to whom a brand should be targeted, what should be said about the brand, and what media and message vehicles should be used

44. MANAGING THE MARCOM PROCESS Setting Budget • Top-down budgeting (TD): senior management decides how much each subunits receives • Bottom-up budgeting (BU): managers of subunits determine how much is needed and the amounts are then combined to establish the total budget • Bottom-up/top-down (BUTD) • Top-down/bottom-up (TDBU) • BUTD process is the most frequently used

45. MANAGING THE MARCOM PROCESS Formulating and Implementing Message and Media Strategies • Make a decision regarding the message to be communicated and the media within which the message will be sent • Many different alternatives of media are available and each has a unique rate of effectiveness as well as cost

46. MANAGING THE MARCOM PROCESS Evaluating Program Effectiveness • Evaluation information will be critical in creating future programs and taking corrective action when necessary • Advertising is more difficult to measure • Communication outcomes: changes in consumers’ awareness of the advertised brand, knowledge of copy points, or attitudes toward the brand (assess advertising effectiveness)

47. ADVERTISING • Advertising adds value to brand by influencing consumers’ perception • Effective advertising can lead to increased market share and greater profitability • U.S., the biggest advertising spender in the world

48. ADVERTISING STRATEGY Budgeting Establishing the Brand Positioning Objective Setting Creating Advertising Messages Assessing Advertising Effectiveness Selecting Advertising Media

49. ADVERTISING STRATEGY Objective Setting • Reasons for setting advertising objectives • Make top management to agree upon the course of advertising • Guide the budgeting, message creating, and media selection • Provide standards against which results can be measured

50. ADVERTISING STRATEGY Budgeting • The most difficult advertising decision because it is hard to determine precisely how effective advertising has been or might be in the future • The sales-response to advertising is influenced by a multitude of factors