Slide 6-1© 2013 Pearson Education, Inc. publishing as Prentice Hall CHAPTER 6 Integrated Marketing Communication Strategy and Management

Slide 6-2© 2013 Pearson Education, Inc. publishing as Prentice Hall 1.Describe the practice and framework of integrated marketing communications. 3.Select the appropriate communication approach based on an offering’s marketing strategy and life cycle. AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: 2.Explain the process of how buyers purchase an offering.

Slide 6-3© 2013 Pearson Education, Inc. publishing as Prentice Hall AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: 6.Describe the types of marketing websites. 4.Describe the factors that influence the development of the integrated marketing communication mix. 5.Compare a push versus a pull communication strategy.

Slide 6-4© 2013 Pearson Education, Inc. publishing as Prentice Hall AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: 8.Discuss the mechanisms for evaluating and controlling the marketing communication process. 7.Identify the different approaches used to formulate a communications budget.

Slide 6-5© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKETING COMMUNICATION  Marketing communication is the process by which information about a firm and its offerings is disseminated to selected markets.  Its goals are to: Achieve Postpurchase Satisfaction Induce Initial Trial Generate Repeat Sales

Slide 6-6© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKETING COMMUNICATION  Communication informs buyers of the: Availability of an offering Unique benefits of the offering Where and how to obtain and use the offering  The message should be: Exclusive to the Offering Desirable to the Target Market Believable as to the Offering’s Benefits

Slide 6-7© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKETING COMMUNICATION Marketing Communication Mix Personal Selling Advertising Sales Promotion Direct Marketing Public Relations

Slide 6-8© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKETING COMMUNICATION  Examples:  Integrated marketing communication is the practice of blending different elements of the communication mix in mutually reinforcing ways to inform, persuade, and induce consumer action. Advertising Develop offering awareness and comprehension Personal Selling Obtain final conviction and purchase Sales Promotion Increase purchase intention and induce actual purchase

Slide 6-9© 2013 Pearson Education, Inc. publishing as Prentice Hall INTEGRATED MARKETING COMMUNICATION STRATEGY FRAMEWORK CHAPTER 6: INTEGRATED MARKETING COMMUNICATION STRATEGY AND MANAGEMENT

Slide 6-10© 2013 Pearson Education, Inc. publishing as Prentice Hall INTEGRATED MARKETING COMMUNICATION STRATEGY DECISIONS 1.What are the info requirements of target markets? 2.What objectives must the communication strategy achieve? 3.How might the mix of communication activities be combined to convey information to target markets? 4.How much should be budgeted for communicating with target markets and how should resources be allocated among various communication activities? 5.How should the communication be timed and scheduled? 6.How should the communication process be evaluated?

Slide 6-11© 2013 Pearson Education, Inc. publishing as Prentice Hall INFORMATION REQUIREMENTS IN PURCHASE DECISIONS CHAPTER 6: INTEGRATED MARKETING COMMUNICATION STRATEGY AND MANAGEMENT

Slide 6-12© 2013 Pearson Education, Inc. publishing as Prentice Hall ConsumerInfluencer Decision Maker Purchaser INFORMATION REQUIREMENTS IN PURCHASE DECISIONS  A person may play more than one role  In a joint purchase decision, the roles may be played by different individuals Purchase Decision Roles

Slide 6-13© 2013 Pearson Education, Inc. publishing as Prentice Hall The role consumers play is a prerequisite for successfully determining: INFORMATION REQUIREMENTS IN PURCHASE DECISIONS  The communication message itself  To whom the message should be directed  How the message should be communicated Purchase Decision Roles

Slide 6-14© 2013 Pearson Education, Inc. publishing as Prentice Hall To communicate effectively, a marketer must know: INFORMATION REQUIREMENTS IN PURCHASE DECISIONS Information consumers think is necessary (price, location, size, etc.). What Consumers will seek it (newspapers, the Internet, friends, etc.). Where Consumers will seek it (how far in advance, on what days, etc.). When Consumers will apply the information obtained. How

Slide 6-15© 2013 Pearson Education, Inc. publishing as Prentice Hall SETTING REASONABLE COMMUNICATION OBJECTIVES CHAPTER 6: INTEGRATED MARKETING COMMUNICATION STRATEGY AND MANAGEMENT

Slide 6-16© 2013 Pearson Education, Inc. publishing as Prentice Hall SETTING REASONABLE COMMUNICATION OJBECTIVES Communication objectives depend on: The offering-market strategies of the firm The stage of the offering life cycle

Slide 6-17© 2013 Pearson Education, Inc. publishing as Prentice Hall SETTING REASONABLE COMMUNICATION OJBECTIVES Communication objectives for offering- market strategies: Market Penetration  Emphasize more frequent offering usage  Build preference for or loyalty to the offering Market Development  Stimulate awareness and trial of the offering

Slide 6-18© 2013 Pearson Education, Inc. publishing as Prentice Hall SETTING REASONABLE COMMUNICATION OJBECTIVES  The message focuses on: Introducing the benefits of an offering Overcoming the objections to the offering Growth/maturity Introduction Communication goals for the offering life cycle:  The message: Focuses on the benefits of a specific brand or offering Differentiates the offering from competitive ones

Slide 6-19© 2013 Pearson Education, Inc. publishing as Prentice Hall DEVELOPING AN INTEGRATED MARKETING COMMUNICATION MIX CHAPTER 6: INTEGRATED MARKETING COMMUNICATION STRATEGY AND MANAGEMENT

Slide 6-20© 2013 Pearson Education, Inc. publishing as Prentice Hall DEVELOPING AN INTEGRATED MARKETING COMMUNICATION MIX Factors to consider when designing the communication mix are: Information Requirements of Buyers Nature of the Target Markets Nature of the Offering Capacity of the Organization

Slide 6-21© 2013 Pearson Education, Inc. publishing as Prentice Hall PUSH VERSUS PULL COMMUNICATION STRATEGIES Push Strategy Pull Strategy Buyers demand the product from intermediaries, pulling the offering through a marketing channel The offering is pushed through a marketing channel to buyers in a sequential fashion Wholesalers Retailers Producer Consumers Wholesalers Producer Consumers Retailers

Slide 6-22© 2013 Pearson Education, Inc. publishing as Prentice Hall PUSH VERSUS PULL COMMUNICATION STRATEGIES Push Strategy  Concentrates on building relationships with channel intermediaries  Sales aids and contests used as incentives to gain shelf space and distribution  Advertisements are likely to appear in trade journals and magazines  Personal selling emphasized with wholesalers and retailers

Slide 6-23© 2013 Pearson Education, Inc. publishing as Prentice Hall PUSH VERSUS PULL COMMUNICATION STRATEGIES Pull Strategy  Employs heavy consumer advertising, free samples, and coupons to stimulate consumer awareness and interest  Wholesalers and retailers must be willing and able to implement selling and sales promotion programs from manufacturers  Seeks to create initial interest for an offering among potential buyers who in turn demand it from intermediaries through the channel

Slide 6-24© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKETING WEBSITES AND INTEGRATED MARKETING COMMUNICATIONS CHAPTER 6: INTEGRATED MARKETING COMMUNICATION STRATEGY AND MANAGEMENT

Slide 6-25© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKETING WEBSITES AND IMC Transactional Website Promotional Website Engages buyers/potential buyers in interactive communication to sell a firm’s offerings or move them closer to a purchase Is an electronic storefront that tries to convert online browsers into online buyers Promotes a firm’s offerings and provides information on how they are used and where they are purchased Is a place where a provider makes available information to Internet users Marketing Website Website

Slide 6-26© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKETING WEBSITES AND IMC Transactional Websites  Feature well-known, branded offerings  Have a technological infrastructure designed to create a favorable shopping and buying experience  Are a form of direct distribution

Slide 6-27© 2013 Pearson Education, Inc. publishing as Prentice Hall Promotional Websites MARKETING WEBSITES AND IMC  Engage visitors with an interactive experience involving games and contests  Provide prizes, such as electronic coupons  Generate awareness of, interest in, and trial of a firm’s offerings  Support a firm’s advertising program and traditional marketing channels  Are used for customer research and feedback

Slide 6-28© 2013 Pearson Education, Inc. publishing as Prentice Hall COMMUNICATION MIX BUDGETING CHAPTER 6: INTEGRATED MARKETING COMMUNICATION STRATEGY AND MANAGEMENT

Slide 6-29© 2013 Pearson Education, Inc. publishing as Prentice Hall COMMUNICATION MIX BUDGETING Budgeting Approaches Fixed Dollar Amount per Offering Unit Budget equals the per-unit allocation multiplied by the number of units expected to be sold Used by durable-goods manufacturers Percentage of Sales Most widely used approach Past or anticipated sales are used as the basis When sales rise, communication expenses rise Simple to calculate Which comes first—sales or communication? Is not flexible or market-oriented

Slide 6-30© 2013 Pearson Education, Inc. publishing as Prentice Hall COMMUNICATION MIX BUDGETING Objective- Task Objectives are set for a communication program Costs are based on the tasks to achieve the goals Employed in introducing a new offering for which maximum exposure is desired Used by nonprofit organizations All Available Funds Budgeting Approaches Competitive Parity Uses advertising share of voice Expressed as a percentage of total advertising by all competitors in a market at a point in time Balances the firm’s and competitors’ communication expenses

Slide 6-31© 2013 Pearson Education, Inc. publishing as Prentice Hall COMMUNICATION BUDGET ALLOCATION  A communication budget must be allocated across a firms’ communication tools  As a percentage of their communication budget: Marketers of consumer products and services spend more for advertising Marketers of industrial products and services spend more for personal selling

Slide 6-32© 2013 Pearson Education, Inc. publishing as Prentice Hall COMMUNICATION BUDGET ALLOCATION Six types of mass media to be selected: TelevisionRadioNewspapers MagazinesOutdoorInternet

Slide 6-33© 2013 Pearson Education, Inc. publishing as Prentice Hall COMMUNICATION BUDGET ALLOCATION Media timing strategies include: Blitz Strategy Concentrating advertising dollars in a relatively short time period when new products or services are introduced Concentrating its advertising but also attempts to maintain some semblance of continuity Spending advertising dollars over the long term to maintain continuity Continuity Strategy Pulse Strategy

Slide 6-34© 2013 Pearson Education, Inc. publishing as Prentice Hall EVALUATION AND CONTROL OF THE COMMUNICATION PROCESS  Continuously monitor the execution of any communication plan or strategy to ensure that the communication objectives (sales, profits, etc.) are being met  Use budgeting to add/delete funds for specific communication activities as a form of control  Use incremental analysis to evaluate and control advertising, personal selling, and expenditures

Slide 6-35© 2013 Pearson Education, Inc. publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.