Examining Integrated Marketing Communications LECTURE WEEK 6 Examining Integrated Marketing Communications

Lecture questions What is the role of marketing communications? How do marketing communications work? What are the major steps in developing effective marketing communications? What is the marketing communications mix and how should it be set? What is an integrated marketing communications programme?

What are marketing communications? Marketing communications are the means by which firms attempt to inform, persuade and remind consumers, directly or indirectly, about the products and brands they sell.

Modes of marketing communications Advertising Sales promotion Events and experiences Public relations and publicity Direct marketing Interactive marketing Word-of-mouth marketing Personal selling

Advertising communication platforms Print and broadcast ads Packaging – outer and inserts Motion pictures Brochures and booklets Posters and leaflets Directories Reprints of ads Billboards Display signs Point-of-purchase displays Audiovisual material Symbols and logos Videotapes Table 19.1 Common communication platforms

Sales promotion communication platforms Contests, games, sweepstakes and lotteries Premiums and gifts Sampling Fairs and trade shows Exhibits Demonstrations Coupons Rebates Low-interest financing Entertainment Trade-in allowances Continuity programmes Tie-ins Table 19.1 Common communication platforms (continued)

Events & experiences communication platforms Sports Entertainment Festivals Arts Causes Factory tours Company museums Street activities Table 19.1 Common communication platforms (continued)

Public relation & publicity communication platforms Press kits Speeches Seminars Annual reports Charitable donations Publications Community relations Lobbying Identity media Company magazine Table 19.1 Common communication platforms (continued)

Direct and interactive communication platforms Catalogues Mailings Telemarketing Electronic shopping Blogs TV shopping Fax Email Voicemail Websites Table 19.1 Common communication platforms (continued)

Other common communication platforms Word-of-mouth marketing Person to person Chatrooms Blogs Personal selling Sales presentations Sales meetings Incentive programmes Samples Fairs and trade shows Table 19.1 Common communication platforms (continued)

IMC builds brands Figure 19.1 Integrating marketing communications to build brand equity

Figure 19.2 Elements in the communication process

Field of experience Sender’s field Receiver’s field

The communications process Selective attention Selective distortion Selective retention

Figure 19.3 Response hierarchy models Sources: aE. K. Strong (1925) The Psychology of Selling, New York: McGraw-Hill, p. 9; bR. J. Lavidge and G. A. Steiner, (1961) A model for predictive measurements of advertising effectiveness, Journal of Marketing, October, 61; cE. M. Rogers (1962) Diffusion of Innovation, New York: Free Press, pp. 79-86; dVarious sources

An ideal ad campaign The right consumer is exposed to the message at the right time and place. The ad causes consumer to pay attention. The ad reflects consumer’s level of understanding and behaviors with product. The ad correctly positions brand in terms of points-of-difference and points-of-parity. The ad motivates consumers to consider purchase of the brand. The ad creates strong brand associations.

Figure 19.4 Steps in developing effective communications

Communications objectives Category need Brand awareness Brand attitude Purchase intention

Designing the communications Message strategy Creative strategy Message source Global adaptation

Creative strategy Informational and transformational appeals Positive and negative appeals Fear Guilt Shame Humor Love Pride Joy Click the video icon to launch a video about DDB Worldwide.

Message source Celebrity characteristics Expertise Trustworthiness Likeability For a video of some examples of celebrity advertisements view: www.youtube.com/watch?v=koi_xSHHvYg&feature=fvw

Issues facing global adaptations Is the product restricted in some countries? Are there restrictions on advertising the product to a specific target market? Can comparative ads be used? Can the same advertising be used in all country markets?

Select communication channels Personal Non-personal Integration

Personal communications channels Advocate channels Expert channels Social channels

Starting a buzz fire Identify influential individuals and devote extra attention to them. Supply key influencers with samples. Work with local influencers. Develop word-of-mouth referral channels. Provide compelling information that customers want to tell others. View these videos in order for an introduction to starting a buzz fire: www.youtube.com/watch?v=WIgeQiNC6A8 www.youtube.com/watch?v=vj29qmLnBiE&feature=related www.youtube.com/watch?v=LlsyeU0FK1o&feature=related

Non-personal communication channels Media Sales promotion Events and experiences Public relations

Establish the budget Affordable Percentage-of-sales Competitive parity Objective-and-task

Objective-and-task method Establish the market share goal. Determine the percentage that should be reached. Determine the percentage of aware prospects that should be persuaded to try the brand. Determine the number of advertising impressions per 1% trial rate. Determine the number of gross rating points that would have to be purchased. Determine the necessary advertising budget on the basis of the average cost of buying a GRP.

Characteristics of the marketing communications mix Advertising Pervasiveness Amplified expressiveness Impersonality Sales promotion Communication Incentive Invitation For a general introduction to the marketing communications mix view this video by Chris Fill: www.youtube.com/watch?v=Fg_Xr3ZoKaU

Characteristics of the marketing communications mix (continued) Public relations and publicity High credibility Ability to catch buyers off guard Dramatisation Events and experiences Relevant Involving Implicit

Characteristics of the marketing communications mix (continued) Personal selling Personal interaction Cultivation Response Direct marketing Customised Up-to-date Interactive Word-of-mouth marketing Credible Personal Timely

Factors in setting communications mix Type of product market Buyer readiness stage Product life cycle stage For some thoughts on whether the communications mix should be different in a downturn view this video: www.youtube.com/watch?v=MN9e7UkLwTk&feature=PlayList&p=1FD8C438660A9767&playnext_from=PL&playnext=2&index=10

Cost effectiveness by buyer readiness stage Figure 19.5 Cost effectiveness of three different communication tools at different buyer readiness stages

Figure 19.6 Current consumer states for two brands

How integrated is your campaign? Coverage Complementarity Contribution Versatility Commonality Cost

Recap: can you explain? What is the role of marketing communications? How do marketing communications work? What are the major steps in developing effective marketing communications? What is the marketing communications mix and how should it be set? What is an integrated marketing communications programme?