Chapter 14 Integrated Marketing Communications and Advertising Idil Yaveroglu Lecture Notes

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.

Integrated Marketing Communications A concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

The Communication Process

Noise – How would you interpret this ad? Apple 1984 Who is the source? What is the message? Is there noise?

IMC Planning Step 1: Identifying the Target Audience Affects decisions related to what, how, when, and where message will be said, as well as who will say it Step 2: Determining Communication Objectives Six buyer readiness stages

Step 3: Designing a Message AIDA framework guides message design Ads should get attention, hold interest, arouse desire, and obtain action. Message content contains appeals or themes designed to produce desired results Rational appeals Emotional appeals Love, pride, joy, humor, fear, guilt, shame Moral appeals

Step 4: Choosing Media Personal communication channels Includes face-to-face, phone, mail, and Internet chat communications Word-of-mouth influence is often critical Buzz marketing cultivates opinion leaders Non-personal communication channels Includes media, atmosphere, and events

Step 6: Collecting Feedback Step 5: Selecting the Message Source Highly credible sources are more persuasive A poor spokesperson can tarnish a brand Step 6: Collecting Feedback Recognition, recall, and behavioral measures are assessed May suggest changes in product/promotion

Setting the Total Promotional Budget Affordability Method Budget is set at a level that a company can afford Percentage-of-Sales Method Past or forecasted sales may be used Competitive-Parity Method Budget matches competitors’ outlays Objective-and-Task Method Specific objectives are defined Tasks required to achieve objectives are determined Costs of performing tasks are estimated, then summed to create the promotional budget

Setting the Overall Promotion Mix Determined by the nature of each promotion tool and the selected promotion mix strategy

Setting the Overall Promotion Mix - Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods and services by an identified sponsor.

Setting the Promotional Mix Advertising Reaches large, geographically dispersed audiences, often with high frequency Low cost per exposure, though overall costs are high Consumers perceive advertised goods as more legitimate Dramatizes company/brand Builds brand image; may stimulate short-term sales Impersonal; one-way communication

Advertising Developing an Advertising Program

Selecting Advertising Media Decide on level of reach, frequency and impact Choose among the major media types by considering: Consumer media habits, nature of the product, types of messages, and costs Select specific media vehicles Decide on media timing

Major Media Types Newspapers Television Direct Mail Radio Magazines Good mass market coverage Low cost per exposure High absolute costs High clutter Direct Mail Radio Magazines High selectivity Outdoor Internet

Media Timing (Continuity) Continuity involves the matter of how advertising should be allocated during the course of an advertising campaign. Continuous schedule Pulsing Schedule Flighting Schedule

Advertising Schedules 600 400 Continuous Ad $ (in thousands) Pulsing Flighting 200 J F M A M J J A S O N D

Media Planning Media Plan Media Class Media Vehicle Media Mix Specifies media in which advertising message will be placed to reach a desired audience Media Class Broad category of media, such as TV, radio, or newspapers Media Vehicle Specific option within a class, i.e., Vogue Media Mix Blend of different media to reach target audience

Media Objectives Key Issues: What proportion of a target audience do we want to reach with our advertising message during a specified period? Reach How frequently do we need to expose the audience during a specified period? Frequency How much total advertising is required to accomplish reach and frequency objectives? Weight How should we allocate the advertising budget over time? Continuity What is the most economically justified way to accomplish the other objectives? Cost

Setting the Promotional Mix Sales Promotions Makes use of a variety of formats: premiums, coupons, contests, etc. Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales Stimulates quick response Short-lived Not effective at building long-term brand preferences

Setting the Promotional Mix - PR Public Relations Highly credible Many forms: news stories, news features, events and sponsorships, etc. Reaches many prospects missed via other forms of promotion Dramatizes company or benefits Often the most underused element in the promotional mix

Role and Impact of Public Relations Strong impact on public awareness at lower cost than advertising Greater credibility than advertising Publicity is often underused Good public relations can be a powerful brand-building tool http://www.youtube.com/watch?v=vHVWegNfQl0 http://mashable.com/2013/12/09/westjet-christmas- miracle- ad/#:eyJzIjoiZiIsImkiOiJfM3JrZ245aGx3M3NoOHJzOCJ9

PR Tools News Speeches Buzz Marketing Corporate Identity Materials Mobile Marketing Special Events Written Materials Audiovisual Materials Public Service Activities Internet

The Haagen Dazs Story Was established in New York in 1920s, not a Danish or Belgium brand. Founder Mr Mattus, called his new brand Häagen-Dazs, to convey an aura of the old-world traditions and craftsmanship to which he remained dedicated. The brand was introduced to Europe in late 80s First opened posh ice-cream parlors in prominent, affluent locations with heavy foot traffic Obtained placement in quality hotels and restaurants with name featured on menus Used branded freezers Low budget print campaign Sponsored the arts – was featured in Don Giovanni in London – got lots of free publicity Today brand commands 1/3rd of premium ice cream market – all with no 30 second commercials.

Special Events Tennis Australian Open Davis Cup Monte Carlo Rolex Masters Wimbledon Golf US Open Championship Presidents Cup Senior Open Championship Ryder Cup… Yachting ISAF Rolex World Sailor Maxi Yacht Rolex Club Rolex Farr World Championship Rolex Fastness Race…

Hugo Boss Sponsorships – sponsored Porsche in Formula One International Tennis, golf and ski competitions Funded exhibitions and artists Placements in “LA Law” and “Miami Vice”

Setting the Promotional Mix Personal Selling Most effective tool for building buyers’ preferences, convictions, and actions Personal interaction allows for feedback and adjustments Relationship-oriented Buyers are more attentive Sales force represents a long-term commitment Most expensive of the promotional tools

Setting the Promotional Mix Direct Marketing Many forms: Telephone marketing, direct mail, online marketing, etc. Four distinctive characteristics: Nonpublic Immediate Customized Interactive Well-suited to highly targeted marketing efforts

Setting the Promotional Mix

Socially Responsible Communications Advertising and Sales Promotion Avoid false and deceptive advertising No bait and switch advertising Trade promotions can not favor certain customers over others Use advertising to promote socially responsible programs and actions

Socially Responsible Communications Personal Selling Salespeople must follow the rules of “fair competition” Three day cooling-off rule protects ultimate consumers from high pressure tactics Business-to-business selling Bribery, industrial espionage, and making false and disparaging statements about a competitor are forbidden