Integrated Marketing Communications: Advertising, Promotions, and Other Tools

Integrated Marketing Communications: Advertising, Promotions, and Other Tools chapter 12 Harcourt, Inc.

Objectives • Appreciate marketing communications tools and how they work together • Understand the nature, importance, and features of integrated marketing communications • Describe the concept of brand-equity enhancement Dr. Rosenbloom

Objectives • Discuss the five primary decision spheres • Know the five major activities in formulating advertising strategy • Recognize the role of sales promotion Dr. Rosenbloom

Objectives • Study the factors that determine how to combine marketing communications elements • Evaluate the nature and role of public relations • Appreciate the role and practices of sponsorship marketing • Understand point-of-purchase communications Dr. Rosenbloom

Communication Process Message Channel Receiver Encoding Decoding Noise Source Feedback Dr. Rosenbloom

Communication Process Noise Source Message Channel Receiver Encoding Decoding Feedback • The marketer • The sender of the message Dr. Rosenbloom

Communication Process Encoding Noise Message Channel Receiver Decoding Source Feedback • Designing of advertisements, sales presentations, P-O-P displays, etc. • Translation of the message into symbolic form Dr. Rosenbloom

Communication Process Message Noise Channel Receiver Encoding Decoding Source Feedback • Actual advertisement that contains the intended message • Symbolic expression of the sender’s thoughts Dr. Rosenbloom

Communication Process Channel Noise Message Receiver Encoding Decoding Source Feedback • Television, radio, print media, telephone, direct mail, etc. • Path through which the message moves to get to the receiver Dr. Rosenbloom

Communication Process Receiver Noise Message Channel Encoding Decoding Source Feedback • Person or groups of persons for whom the message is intended Dr. Rosenbloom

Communication Process Decoding Noise Message Channel Receiver Encoding Source Feedback • Process receiver uses to interpret the meaning of the message Dr. Rosenbloom

Communication Process Noise Feedback Message Channel Receiver Encoding Decoding Source • Marketing research, market share changes, sales reports • Attitude changes, purchase or non-purchase • Gauge of effectiveness of communication techniques Dr. Rosenbloom

Communication Process Noise Message Channel Receiver Encoding Decoding Source Feedback • Interference at some stage in communications process • Competitive promotional messages • Misinterpretation of message or wrong receiver Dr. Rosenbloom

Promotion Management Environmental Influences Economic Environment Competitive Environment Technological Environment Social-CulturalDemographic RegulatoryEnvironment Product Decisions Distribution Decisions Promotion Decisions Pricing Decisions Dr. Rosenbloom

Tools of Marketing Communications Advertising Publicity PersonalSelling IntegratedMarketing Communications P-O-P SalesPromotion Sponsorship Dr. Rosenbloom

Integrated Marketing Communications Personal Selling • Person-to-person communication in which a seller informs and educates prospective customers and attempts to influence their purchase choices Dr. Rosenbloom

Integrated Marketing Communications 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 Dr. Rosenbloom

Integrated Marketing Communications Publicity • Non-personal communications to a mass audience that is not directly paid for by the company Dr. Rosenbloom

Integrated Marketing Communications Sales Promotion • All the marketing activities that attempt to promote immediate sales of a product Dr. Rosenbloom

Integrated Marketing Communications Sponsorship • The practice of promoting the interests of a company and its brands by associating the company with a specific event Dr. Rosenbloom

Integrated Marketing Communications Point-Of-Purchase • Includes all signs (displays, posters, signs, shelf cards, and other visual materials) designed to influence buying decisions at the point of sale Dr. Rosenbloom

IMC and Enhancing Brand Equity Advertising Publicity PersonalSelling IntegratedMarketing Communications P-O-P SalesPromotion Sponsorship • Integrated Marketing Communication (IMC) • A system of management and integration marketing communication elements with the result that all elements adhere to the same message Dr. Rosenbloom

Integrated Marketing Communications Key Aspects 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 Dr. Rosenbloom

Integrated Marketing Communications Key Aspects 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 Dr. Rosenbloom

Integrated Marketing Communications Key Aspects 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 Dr. Rosenbloom

Integrated Marketing Communications Key Changes Resulting from IMC 1. Reduced Faith in Mass-Media Advertising 2. Increased reliance on highly targeted communications methods 3.Expanded efforts to assess return on investment Dr. Rosenbloom

Integrated Marketing Communications Enhancing 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 Dr. Rosenbloom

Integrated Marketing Communications Enhancing Brand Equity • 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 Dr. Rosenbloom

Integrated Marketing Communications Enhancing Brand Equity • The associations that come to mind contemplating a particular brand • Brand association - the particular thoughts and images that a consumer has about a brand Brand Awareness Brand Image Dr. Rosenbloom

Determinants Of The Promotions Mix Market • Who is the intended market? • Business-to-business market or consumer market? • Understanding of the product’s target market Objectives Nature of the Product Life-cycle Stage Competitive Actions Budget Push vs. Pull Dr. Rosenbloom

Determinants Of The Promotions Mix Market • What are the objectives? • Do we want to create product category wants or brand preference? Objectives Nature of the Product Life-cycle Stage Competitive Actions Budget Push vs. Pull Dr. Rosenbloom

Determinants Of The Promotions Mix Market • What is the nature of the product? • Business-to-business products versus consumer goods Objectives Nature of the Product Life-cycle Stage Competitive Actions Budget Push vs. Pull Dr. Rosenbloom

Determinants Of The Promotions Mix Market • What is the product life-cycle stage? • New product versus a mature product Objectives Nature of the Product Life-cycle Stage Competitive Actions Budget Push vs. Pull Dr. Rosenbloom

Determinants Of The Promotions Mix Market • What are competitors doing? • Does the competition allow trade allowances and, if so, how large? Objectives Nature of the Product Life-cycle Stage Competitive Actions Budget Push vs. Pull Dr. Rosenbloom

Determinants Of The Promotions Mix Market • What is the available budget for promotion? • Do we emphasize personal selling or mass advertising? Objectives Nature of the Product Life-cycle Stage Competitive Actions Budget Push vs. Pull Dr. Rosenbloom

Determinants Of The Promotions Mix Market • 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 Objectives Nature of the Product Life-cycle Stage Competitive Actions Budget Push vs. Pull Dr. Rosenbloom

Push Versus Pull Strategy Push Strategy Pull Strategy VS Dr. Rosenbloom

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

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

Managing the Communications Process Selecting Target Market Formulating and Implementing Message and Media Strategies Establishing Objectives Setting Budget Evaluating Program Effectiveness Dr. Rosenbloom

Managing the Communications Process Selecting Target Market • Allows marketing communicators to more precisely deliver messages to the target group • Attempts to avoid wasting money on 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) Dr. Rosenbloom

Managing the Communications 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 Dr. Rosenbloom

Managing the Communications Process Setting Budget • Top-down budgeting (TD): senior management decides how much each subunits receives • Bottom-up budgeting (BU): mangers 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 Dr. Rosenbloom

Managing the Communications 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 Dr. Rosenbloom

Managing the Communications 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) Dr. Rosenbloom

Integrated Marketing Communications: Advertising, Promotions, and Other Tools