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Integrated Marketing Communications. Chapter 8 Dr. Inas A. Hamid. Do you think communication is important to organizations? Why?.
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Integrated Marketing Communications Chapter 8 Dr. Inas A. Hamid
Do you think communication is important to organizations? Why?
Most organizations , whether they operate in the private, public, not-for-profit or other sectors, all need to communicate with their customers and publics. Why?
Strategic Goals of Marketing Communication Differentiate inform Remind Persuade
Create awareness: we can not buy a product if we are not aware of it, especially a new product and brand. Using MarCom is important in creating awareness in order to stimulate trial purchases. Build positive images: Positive images can create value for customers by adding meaning to products. Identify prospects: modern technology makes information gathering much more practical. Web sites are used to gather information about prospects. Supermarkets use POS terminals.
Build channel relationships: when producers use MarCom to generate awareness, they are helping the retailers who carry the product. Producers may also arrange with retailers to distribute coupons, set up special displays, or hold promotional events in their stores.
Retain customers: it costs far more to attract a new customer than to retain an existing customer. MarCom can support efforts to create value for existing customers. They can provide customers with information about product usage and new products being developed. They can also gather information from them about what they want as well as their experiences using the products.
Marketing communication • Marketing communication is: all forms of communication between an organization and its customers and potential customers, that facilitate exchanges by establishing shared meaning with the brand’s customers or clients.
MarCom gets the bulk of the budget in most organizations. Traditionally termed promotion. It is a part of the 4Ps marketing mix (product, price and place). It aims at facilitating the process of exchange. The organizations choose the target market and avoid communicating with those that are not commercially interesting.
The Promotional Mix • The promotional mix concept refers to the combination and types of communication the organization puts forth during a specified period.
Primary and secondary tools • In any campaign some forms of media will play a primary role, whilst others will support these in a secondary role. • The choice of primary promotion tool can also be influenced by the stage of the product life cycle (PLC).
Product Life Cycle (PLC) • 1. Introduction At this stage, the primary need is to secure trade acceptance and then build public awareness. Ads can be the best at this stage, they can be used as primary tools. • 2. Growth During growth, promotional activity is used competitively to build market share. Customers are normally willing to buy, having been made aware, but their problem becomes one of brand choice. Marketing communications should therefore be used to differentiate and clearly position product such that it represents significant value for the customer.
3. Maturity The primarily characteristic of this stage is that there is little or no growth. The battle therefore is toretain customers’ loyalty, and to do these sales promotions are often used, to encourage trial by non-users of a brand and as a reward for current users. 4. Decline As sales start to decline it is normal practice to withdraw a great deal of promotion support. Direct marketing and a little well targeted advertisingto remind and reassure brand loyal is the most commonly used.
Marketing Communication Strategies • When deciding which communication strategy to use, the marketer should identifythree main types of audience: • The end-user of the product, who may be an individual consumer or a business. • Intermediaries, who operate between the producer and the end-user. • Stakeholders, who may have no direct interest in the product but who have an interest in the organization itself. Each audience requires a different communication strategy.
Push versus Pull Marketing • Pull strategy: is aimed at the end-user. It seeks to encourage demand of the target audience from the distributors , so that products are pulled by them through the marketing chain. • This demand may be for products directly, but an individual may also pull for information. Marketing Communications activities Request products Request products producer Resellers End Users
Many factors will determine the appropriate mix, including promotional objectives, the type of end-user, the nature of the market, and the nature of the product. • The most important pull strategy tools are likely to be: • B-2-B markets: personal selling, Exhibitions, Website , marketing PR and direct mail. • Business -2-consumer markets: Ads, Personal selling, Sales promotion, Direct marketing and Websites.
Push strategy is targeted at intermediaries (wholesalers, retailers, dealers and agents). Push activities aim to persuade the intermediary to push the product along the marketing chain by stocking it, displaying it, or advocating it. MarCom Producer Intermediaries MarCom End Users
Personal selling will be vital. Supported by trade ads and sales promotions. Extranets are playing increasingly important role in communications between business. Although push and pull strategies have different objectives, it is essential to take an integrated approach. Consistent messages must be communicated.
Profile strategy is aimed at stakeholders (who may include intermediaries and end-users), and seeks to influence their perceptions of the organization. Communications might be about the business's financial performance, ethical stance or community involvement.
The marketing Communication Mix • 1- Advertising seeks to promote the products by means of printed and electronic media , so messages can reach large numbers of people and make them aware about the products. Objectives of Advertising
Advertising is justified on the basis of the revenue it produces. Revenue may refer to either sales or profits.
After selecting the media mix Advertisingappealsshould be decided. Appeals refer to the approach used to attract the attention of consumers and / or to influence their feelings toward the product, service, or cause. Informational / Rational Appeals emphasize features of a product or service and / or the benefits or reasons for owning or using a particular brand. The content of these messages emphasizes facts, learning, and the logic of persuasion.
Emotional Appeals relate to the customers, social and / or psychological needs for purchasing a product or service. Ads using safety, security, fear, love, affection, happiness, joy, excitement and other appeals that can affect the emotions of consumers and put them in a favorable frame of mind.
Volvo car advertising uses an emotional appeal (love & safety), whereby it is using the “ Who would you give a Volvo to?” theme to enhance consumer’s attachment to the brand, and make the experience of using the product warmer.
2- Sales promotion is a range of tactical marketing techniques, to add extra value or incentive to a product or service, in order to achieve a specific sales and marketing objective. Examples of sales promotion activities that aimed at final consumers: price cuts. Coupons. Competitions. free samples.
Also sales promotion can be directed towards middlemen, such as; • Price deals • Calendars • Gifts • Catalogs • videos
The popularity of sales promotion has been increasing because of two major reasons: • Increased pressure on management for short term results. • The emergence the emergence of new purchase tracking technology.
shows a premium offer is used to provide extra incentive to purchase a product.
Advantages Obtaining trial and purchase: One of the most important uses of sales promotion techniques is to encourage consumers to try a new product or service. Also to encourage people who try the brand to repurchase it. Increasing consumption of an established brand to attract nonusers of the product category or users of a competing brand.
Defending current customers to retain its current customer base. Targeting a specific market segment. For example, clothing and school supply companies targeting children and teens run promotions in late summer when most of the back-to-school shopping occurs.
Disadvantages. When the extra promotional incentive is not available, they switch to another brand. Can not convene buyers to purchase an unacceptable products If the promotion is successful and leads to a differential advantage, competitors may quickly copy it.
3- Public Relations is a non-personal form of communication that tries to influence the overall image of the organization and its products and services among its various stakeholder groups. Traditionally, PR is viewed as a non-marketing function whose primary responsibility is to maintain mutually beneficial relationships between the organization and its publics. Now, the new role of PR is considered primarily a marketing communications function and Some researches have referred to PR activities designed to support marketing objectives as marketing public relations (MPR) functions.
Activities that the PR practitioner may carry out at some time. • Arranging News release: An announcement regarding changes in the organization or the product line, sometimes called a press release. • Analyzing future trends and predicting their consequences. • Research into public opinion, attitudes and expectations and advising on action. • Establishing and maintaining two-way communication. • Preventing conflict and misunderstandings. • Promoting mutual respect and social responsibility • Harmonizing the private and public interest • Attracting good personnel and reducing labor turnover. • Sponsorship. Associating the organization's name with events ,programs, or even people..
Advantages: Credibility. Publics do not realize the organization either directly or indirectly paid for them- they tend to have more credibility. For example, an article in newspapers or magazines discussing the virtues of aspirin may be perceived as much more credible than an ad for a particular brand of aspirin. Cost. The cost of PR is low. Avoidance of clutter. Because they are typically perceived as news items, PR messages are not subject to the clutter of ads.
Ability to reach specific groups. Because some products appeal to only small market segments, it is not feasible to engage in advertising and / or promotions to reach them. If the firm does not have the financial capabilities to engage in promotional expenditures, the best way to communicate to these groups is through public relations. Image building. Effective PR helps to develop a positive image for the organization.
Disadvantages The receiver may not make the connection to the source. Many firms, PR efforts are never associated with their sponsors in the public mind. a lack of coordination with the marketing department.