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COMMUNICATING

PART. COMMUNICATING . 7. VALUE. Chapter. DESIGNING. 17. And Managing Integrated Marketing Communications. Integrated Marketing Communications. McDonald’s 24-hour service in Singapore Used print ads to inform public. Outlets – open 24 hours - signs around store

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COMMUNICATING

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  1. PART COMMUNICATING 7 VALUE Marketing Management - An Asian Perspective 4th Edition

  2. Chapter DESIGNING 17 And Managing Integrated Marketing Communications Marketing Management - An Asian Perspective 4th Edition

  3. Integrated Marketing Communications McDonald’s 24-hour service in Singapore Used print ads to inform public Outlets – open 24 hours - signs around store Banners - restaurant & road; Posters - public garbage bins Different media, one voice Marketing Management - An Asian Perspective 4th Edition

  4. In this chapter, we address the following questions: • What is the role of marketing communications? • How does marketing communications work? • What are the major steps in developing effective communications? • What is the communications mix & how should it be set? • What is an integrated marketing communications program? Marketing Management - An Asian Perspective 4th Edition

  5. The Role of Marketing Communications • MARKETING COMMUNICATIONS means by which firms attempt to inform, persuade & remind consumers - directly or indirectly - about products & brands that they sell Marketing Management - An Asian Perspective 4th Edition

  6. The Role of Marketing Communications- Marketing Communications & Brand Equity • Marketing communications mix • Advertising • Sales promotion • Events & experiences • Public relations & publicity • Direct marketing • Personal selling Marketing Management - An Asian Perspective 4th Edition

  7. Table 17.1 Common Communication Platforms Marketing Management - An Asian Perspective 4th Edition

  8. Figure 17.1 Integrating Marketing Communications to Build Brand Equity Marketing Management - An Asian Perspective 4th Edition

  9. The Role of Marketing Communications- Marketing Communications & Brand Equity • Brand contact: strengthen/weaken customer’s view of company • How brand associations formed not crucial • Experiences, impressions - most influence at each stage of buying process • Integrate activities - consistent message & strategic positioning Marketing Management - An Asian Perspective 4th Edition

  10. The Role of Marketing Communications- Marketing Communications & Brand Equity • Marketing communications: judged on ability to build brand equity & sales • Evaluate all communication options using • Effectiveness criteria & • Efficiency considerations • Brand awareness - function of brand-related exposures & accumulated consumer experiences Marketing Management - An Asian Perspective 4th Edition

  11. The Role of Marketing Communications- The Communications Process Models MACROMODEL OF THE COMMUNICATION PROCESS • Key factors in effective communication • Senders - WHO to reach & WHAT responses • Encode messages - target decode them • Transmit message - media - reach target - feedback channels to monitor responses • If sender’s field of experience overlaps with receiver’s, message more effective Marketing Management - An Asian Perspective 4th Edition

  12. Figure 17.2 Elements in the Communication Process Marketing Management - An Asian Perspective 4th Edition

  13. The Role of Marketing Communications- The Communications Process Models • Selective attention – People exposed by many commercial messages daily • Selective distortion – Receivers hear what fits their belief systems • Selective retention – People retain in long-term memory small fraction of messages that reach them Marketing Management - An Asian Perspective 4th Edition

  14. Figure 17.3 Response Hierarchy Models Concentrate on consumers’ specific responses to communications Marketing Management - An Asian Perspective 4th Edition

  15. The Role of Marketing Communications- The Communications Process Models MICROMODEL OF CONSUMER RESPONSES: • Assume buyer passes through stages with product: • “learn-feel-do”high involvement + differentiation • “do-feel-learn,” high involvement + little/no differentiation • “learn-do-feel,” low involvement + differentiation • Choose right one & plan communications easy Marketing Management - An Asian Perspective 4th Edition

  16. The Role of Marketing Communications- The Communications Process Models Buyer: high involvement + differentiation, use hierarchy-of-effects model: • Awareness: unaware; build awareness • Knowledge: aware • Liking: know brand; but feelings? • Preference: like but no preference • Conviction: prefer but no conviction to buy • Purchase: conviction but no purchase Marketing Management - An Asian Perspective 4th Edition

  17. The Role of Marketing Communications- The Communications Process Models Ad by ING Insurance- convince Taiwanese parents tobuy coverage for their children. Strategically position picture of child over homeless person Marketing Management - An Asian Perspective 4th Edition

  18. The Role of Marketing Communications- The Communications Process Models Ideal ad campaign ensures: • Right consumer, message, place & time • Pay attention, not distracted - message • Reflect understanding – product, brand • Positions brand- desirable & deliverable points-of-difference & -parity • Motivate to purchase • Strong brand associations - effect when consider purchase Marketing Management - An Asian Perspective 4th Edition

  19. Figure 17.4 Steps in Developing Effective Communications Marketing Management - An Asian Perspective 4th Edition

  20. Developing Effective Communications- Identify the Target Audience • Target audience critical - communicator • Define target audience - usage & loyalty • Image analysis: profile target - brand knowledge for insight • Image - set of beliefs, ideas & impressions one holds about an object Marketing Management - An Asian Perspective 4th Edition

  21. Figure 17.5 Familiarity-Favorability Analysis • Target audience’s knowledge • Measured using • Familiarity scale • Favorability scale Marketing Management - An Asian Perspective 4th Edition

  22. Developing Effective Communications- Determine the Communications Objective • 4 possible objectives: • Category need • Brand awareness • Brand attitude • Brand purchase intention Marketing Management - An Asian Perspective 4th Edition

  23. Developing Effective Communications- Design the Communications • Desired response require solving 3 problems: • What to say (message strategy) • How to say it (creative strategy) • Who should say it (message source) Marketing Management - An Asian Perspective 4th Edition

  24. Developing Effective Communications- Design the Communications MESSAGE STRATEGY • Appeals, themes or ideas • Tie to brand positioning • Establish points-of-parity or -difference Marketing Management - An Asian Perspective 4th Edition

  25. Visualize rewards from: Results-of-use experience Product-in-use experience or Incidental-to-use experience Rewards from product: Rational Sensory Social Ego satisfaction Developing Effective Communications- Design the Communications 12 types of messages possible Marketing Management - An Asian Perspective 4th Edition

  26. Developing Effective Communications- Design the Communications CREATIVE STRATEGY • Communications effectiveness - how message is expressed & its content • Creative strategies - how messages translated into specific communication • “informational” • “transformational” appeals Marketing Management - An Asian Perspective 4th Edition

  27. Developing Effective Communications- Design the Communications Informational appeal • Product/service attributes/benefits • Assume rational processing of communication • 2-sided messages • Appropriate - overcome negative association • Effective - educated & initially opposed • Order of arguments - important Marketing Management - An Asian Perspective 4th Edition

  28. Developing Effective Communications- Design the Communications Transformational Appeals • Non-product benefit/image • Stir up emotions - motivate purchase • Negative appeals - fear & shame - get people to do or stop doing things • Most persuasive - moderately discrepant with what audience believes Marketing Management - An Asian Perspective 4th Edition

  29. Developing Effective Communications- Design the Communications Kraft Singaporeused unexpected visuals todraw attentionto message Kraft Cheese Singlesis “The Body Builder for Kids” Marketing Management - An Asian Perspective 4th Edition

  30. Developing Effective Communications- Design the Communications • Positive emotional appeal - humor, love • “Borrowed interest” device - attract attention & raise involvement with ad • Eg cute babies • But, may • Detract from comprehension • Wear out welcome fast • Overshadow product Marketing Management - An Asian Perspective 4th Edition

  31. Developing Effective Communications- Design the Communications • How legendary ad taglines listed here were able to bring to life brand themes listed on the left Marketing Management - An Asian Perspective 4th Edition

  32. Developing Effective Communications- Design the Communications • Messages delivered – attractive/popular sources - higher attention & recall • Spokesperson’s credibility – important • What factors underlie source credibility? • Expertise • Trustworthiness • Likeability Marketing Management - An Asian Perspective 4th Edition

  33. Developing Effective Communications- Design the Communications Osim used Chinese actress Gong Li to promote its health supplement, Nourish Refine Marketing Management - An Asian Perspective 4th Edition

  34. Developing Effective Communications- Design the Communications Principle of congruityimplies that communicators can use good image to reduce some negative feelings toward a brand but, in the process, might lose some esteem with audience Marketing Management - An Asian Perspective 4th Edition

  35. Developing Effective Communications- Design the Communications • Challenges - develop globalcommunications programs: • If product appropriate for country • If market segment - legal & customary • If ad style - acceptable • If ads created at headquarters or locally Marketing Management - An Asian Perspective 4th Edition

  36. Developing Effective Communications- Design the Communications • Product – restricted/forbidden – some parts • Market segment – countries - Norway - no TV ads directed at children under 12 • Style – Comparative ads, acceptable in Canada, not common in Singapore • Local or Global – global brand image - same advertising in all markets Marketing Management - An Asian Perspective 4th Edition

  37. Developing Effective Communications- Design the Communications Managing communications programs in Asia accentuated - coordinated pan-regionally • Regulations • Products like alcohol restricted in Muslim countries in Asia • Politics • Caught in sensitive political issue • Economics • “Ad literacy”- economic development- region Marketing Management - An Asian Perspective 4th Edition

  38. Developing Effective Communications- Design the Communications Managing communications programs in Asia accentuated - coordinated pan-regionally • Infrastructure • Marketing infrastructure - feasibility of standardizing communications • Culture • Asian countries: high-context cultures Marketing Management - An Asian Perspective 4th Edition

  39. Developing Effective Communications- Select the Communications Channels PERSONAL COMMUNICATION CHANNELS: • ≥ 2 persons - face-to-face, person-to-audience, telephone or email • Advocate channels: sales contact target • Expert channels: experts talk to target • Social channels: friends talk to target • Web-based channel - the blog Marketing Management - An Asian Perspective 4th Edition

  40. Developing Effective Communications- Select the Communications Channels • Words about good companies travel fast - about bad ones travel faster • Personal influence, great weight in: • Expensive, risky or rare buys • Product - reflects status or taste • Society consists of cliques • Facilitates effective communication • Insulates clique from new ideas Marketing Management - An Asian Perspective 4th Edition

  41. Buzz Marketing Renée Dye, The 5 Myths of Buzz • Only outrageous/edgy product are buzz-worthy • Buzz just happens • Best buzz-starters - your best customers • To profit from buzz, must act first & fast • Media & advertising - needed to create buzz Marketing Management - An Asian Perspective 4th Edition

  42. Buzz Marketing Word-of-Mouth Marketing Tips • Involve customers in process of making/delivering product/service • Solicit testimonials from customers • Tell true stories to customers • Educate your best customers • Offer fast complaint handling Marketing Management - An Asian Perspective 4th Edition

  43. Developing Effective Communications- Select the Communications Channels Steps to use personal influence channels: • Identify, devote effort - influential entities • Create opinion leaders • Supply selected people – product, attractive terms • Work - community influentials • Use influential people - testimonial ad • Develop ad - high “conversation value” • Develop word of mouth - build business • Establish electronic forum • Use viral marketing Marketing Management - An Asian Perspective 4th Edition

  44. Developing Effective Communications- Select the Communications Channels NON-PERSONAL COMMUNICATION CHANNELS: • Directed to > one person & include • Media • Sales promotion • Events & experiences • Public relations Marketing Management - An Asian Perspective 4th Edition

  45. Developing Effective Communications- Select the Communications Channels • Recent growth - non-personal channels - events & experiences • Ways - quantify benefits of sponsorship • Attention grabbing event - media fragmentation • Personal communication, effective • But mass media - major means to stimulate personal communication Marketing Management - An Asian Perspective 4th Edition

  46. Developing Effective Communications- Select the Communications Channels 2-step flow of mass media - Implications: • Influence on public opinion - not direct, powerful & automatic • Challenges notion - consumption styles - “trickle-down”/“trickle-up” effect • Direct messages to opinion leaders • Changes - erode effectiveness of mass media Marketing Management - An Asian Perspective 4th Edition

  47. Developing Effective Communications- Establishing the Total Marketing Communications Budget • How to decide on promotion budget? • AFFORDABLE METHOD: • Budget what they think - can afford • Ignores promotion as investment • Uncertain annual budget, difficult long-range planning Marketing Management - An Asian Perspective 4th Edition

  48. Developing Effective Communications- Establishing the Total Marketing Communications Budget • PERCENTAGE-OF-SALES METHOD: • Specified % of sales or sales price Advantages: • What company can “afford” • How cost, price & profit - related • Stable: competing firms spend similar % on promotion Marketing Management - An Asian Perspective 4th Edition

  49. Developing Effective Communications- Establishing the Total Marketing Communications Budget • PERCENTAGE-OF-SALES METHOD: Disadvantages: • Sales determine promotion, not result • Budget set by funds, not opportunities • Depend - yearly sales, affect planning • Choice of % - no logic • Budget not what product/territory deserves Marketing Management - An Asian Perspective 4th Edition

  50. Developing Effective Communications- Establishing the Total Marketing Communications Budget • COMPETITIVE-PARITY METHOD • Budget set - share-of-voice parity with competitors • Competitors’ expenditures - collective industry wisdom • Competitive parity prevents promotion wars • Neither argument - valid Marketing Management - An Asian Perspective 4th Edition

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