Integrated Marketing Communication Strategy

1. Integrated Marketing Communication Strategy Chapter 15

2. Objectives • Know the tools of the marketing communications mix. • Understand the process and advantages of integrated marketing communications. • Learn the steps in developing effective marketing communications program. • Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix. • Push and Pull

3. UPS is a $31 billion corporate giant UPS wanted to reposition itself as a supply chain solutions provider Developed new ad theme based on customer input Implemented, “What Can Brown Do for You?” campaign Realigned its sales and marketing organization Ads, web sites, and salespeople deliver message daily c UPS

4. Definition • The Marketing Communications Mix • The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.

5. Advertising The Tools of Marketing Communications Mix Personal Selling Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Personal Presentations by a Firm’s Sales Force. Short-term Incentives to Encourage Sales. Sales Promotion Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity. Public Relations Direct Communications With Individuals to Obtain an Immediate Response. Direct Marketing

6. Integrated Marketing Communications • The Marketing Communications Environment is Changing: • Mass markets have fragmented, causing marketers to shift away from mass marketing • Media fragmentation is increasing • Improvements in information technology are facilitating segmentation

7. Market Fragmentation Led to Media Fragmentation The Changing Communications Environment Marketers Have Shifted Away From Mass Marketing Less Broadcasting • Two Factors • are Changing the Face of Today’s • Marketing Communications: Improvements in Information Technology Has Led to Segmented Marketing More Narrowcasting

8. Integrated Marketing Communications • The Need for Integrated Marketing Communications • Conflicting messages from different sources or promotional approaches can confuse company or brand images

9. Integrated Marketing Communications* Company Carefully Integrates and Coordinates Its Many Communication Channels to Deliver a Clear, Consistent, Compelling Message. Packaging Advertising Event Marketing Personal Selling Message Direct Marketing Sales Promotion Public Relations

10. A View of the Communications Process Marketers View Communications as the Management of the Customer Relationship Over Time Through the Following Stages: Preselling Selling Post- Consumption Consuming

11. Figure 15-2: Elements in the Communication Process

12. Key Factors in Good Communication Sellers Must Develop Feedback Channels to Assess Audience’s Response to Messages. Sellers Need to Know What Audiences They Wish to Reach and Response Desired. Sellers Must be Good at Encoding Messages That Target Audience Can Decode. Sellers Must Send Messages Through Media that Reach Target Audiences

13. Steps in Developing Communication Program* • 1.Identifying the Target Audience • 2.Determining the Response Sought • 3.Designing a Message • 4.Choosing Media • 5.Selecting the Message Source • 6. Collecting Feedback

14. Step 1. Identifying the Target Audience Step 2. Determining the Communication Objectives Buyer Readiness Stages Steps in Developing Effective Communication Awareness Knowledge Liking Preference Conviction Purchase

15. Step 3. Designing a Message Attention Interest Desire Action Steps in Developing Effective Communication Message Content Rational Appeals Emotional Appeals Moral Appeals Message Structure Draw Conclusions Argument Type Argument Order Message Format Headline, Illustration, Copy, & Color Body Language

16. Designing the Message - Content • Rational Appeals • appeal to audience self-interest • Emotional Appeals • fear, guilt, shame, humor, joy, love, pride • Moral Appeals • what is right or proper

17. Designing the Message - Structure • Conclusion Drawing • negative when communicator is viewed as untrustworthy, if seen as explaining the obvious, if issue is too personal • One vs. Two-sided Message • one-better with favorably predisposed, two better with well-educated, those exposed to counter propaganda • Order of Presentation • primacy effect, recency effect

18. Message Format • Color, Sound, Appearance, Text, Illustration Media Channels • Personal (word-of-mouth; sales person) • Impersonal (media, atmospheres, events)

19. Step 4. Choosing Media Steps in Developing EffectiveCommunication Step 5. Selecting the Message Source Personal Communication Channels Step 6. Collecting Feedback Nonpersonal Communication Channels

20. Selecting the Message Source • Message Source credibility important • expertise • trustworthiness • likability

21. Collecting the Feedback • Feedback • awareness? • trial? • satisfaction?

22. Affordable Method Percentage- of-Sales Method Competitive- Parity Method Objective- and-Task Method Setting the Total Promotion Budget

23. Setting the Promotional Budget and Mix • Setting the Overall Promotion Mix • Determined by the nature of each promotional tool and the selected promotion mix strategy Revlon emphasizes advertising while Avon emphasizes personal selling

24. Advertising Reaches Many Buyers, Expressive Impersonal Personal Selling Personal Interaction, Builds Relationships Costly Setting the Promotion Mix Nature of Each Promotion Tool Sales Promotion Provides Strong Incentives to Buy Short-Lived Public Relations Believable, Effective, Economical Underused by Many Companies Direct Marketing Nonpublic, Immediate, Customized, Interactive

25. Factors in Developing Promotion Mix Strategies • Push Strategy - “Pushing” the Product Through Distribution Channels to Final Consumers. • Pull Strategy - Producer Directs It’s Marketing Activities Toward Final Consumers to Induce Them to Buy the Product. Product Life-Cycle Stage Type of Product/ Market Buyer/ Readiness Stage

26. Figure 15-4: Push vs. Pull Promotion Strategy

27. Setting the Promotional Budget and Mix • Checklist: Integrating the Promotion Mix • Analyze trends (internal and external) • Audit communications spending • Identify all points of contact • Team up in communications planning • Make all communication elements compatible • Create performance measures • Appoint an IMC manager