Integrated Marketing Communication Strategy and Management CHAPTER 6

AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: Describe the practice and framework of integrated marketing communications. Explain the process of how buyers purchase an offering. Select the appropriate communication approach based on an offering’s marketing strategy and life cycle.

AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: Describe the factors that influence the development of the integrated marketing communication mix. Compare a push versus a pull communication strategy. Describe the types of marketing websites.

AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: Identify the different approaches used to formulate a communications budget. Discuss the mechanisms for evaluating and controlling the marketing communication process.

Achieve Postpurchase Satisfaction 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: Induce Initial Trial Achieve Postpurchase Satisfaction Generate Repeat Sales

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: Desirable to the Target Market Exclusive to the Offering Believable as to the Offering’s Benefits

Marketing Communication Mix Personal Selling Advertising Sales Promotion Direct Marketing Public Relations

Marketing Communication Mix

MARKETING COMMUNICATION 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. Examples: Advertising Develop offering awareness and comprehension Personal Selling Obtain final conviction and purchase Sales Promotion Increase purchase intention and induce actual purchase

INTEGRATED MARKETING COMMUNICATION STRATEGY FRAMEWORK CHAPTER 6: INTEGRATED MARKETING COMMUNICATION STRATEGY AND MANAGEMENT INTEGRATED MARKETING COMMUNICATION STRATEGY FRAMEWORK

INTEGRATED MARKETING COMMUNICATION STRATEGY DECISIONS What are the info requirements of target markets? What objectives must the communication strategy achieve? How might the mix of communication activities be combined to convey information to target markets? How much should be budgeted for communicating with target markets and how should resources be allocated among various communication activities? How should the communication be timed and scheduled? How should the communication process be evaluated?

INFORMATION REQUIREMENTS IN PURCHASE DECISIONS CHAPTER 6: INTEGRATED MARKETING COMMUNICATION STRATEGY AND MANAGEMENT INFORMATION REQUIREMENTS IN PURCHASE DECISIONS

Purchase Decision Roles INFORMATION REQUIREMENTS IN PURCHASE DECISIONS Purchase Decision Roles Purchaser Influencer Decision Maker Consumer A person may play more than one role In a joint purchase decision, the roles may be played by different individuals

Purchase Decision Roles INFORMATION REQUIREMENTS IN PURCHASE DECISIONS Purchase Decision Roles The role consumers play is a prerequisite for successfully determining: The communication message itself To whom the message should be directed How the message should be communicated

INFORMATION REQUIREMENTS IN PURCHASE DECISIONS To communicate effectively, a marketer must know: What Information consumers think is necessary (price, location, size, etc.). 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

SETTING REASONABLE COMMUNICATION OBJECTIVES CHAPTER 6: INTEGRATED MARKETING COMMUNICATION STRATEGY AND MANAGEMENT SETTING REASONABLE COMMUNICATION OBJECTIVES

SETTING REASONABLE COMMUNICATION OJBECTIVES Communication objectives depend on: The offering-market strategies of the firm The stage of the offering life cycle

Product or Market Development SETTING REASONABLE COMMUNICATION OJBECTIVES Communication objectives for product-market strategies: Market Penetration Product or Market Development Emphasize more frequent offering usage Stimulate awareness and trial of the offering Build preference for or loyalty to the offering

SETTING REASONABLE COMMUNICATION OJBECTIVES Communication goals for the offering life cycle: Introduction Growth/maturity The message focuses on: The message: Introducing the benefits of an offering Focuses on the benefits of a specific brand or offering Differentiates the offering from competitive ones Overcoming the objections to the offering

DEVELOPING AN INTEGRATED MARKETING COMMUNICATION MIX CHAPTER 6: INTEGRATED MARKETING COMMUNICATION STRATEGY AND MANAGEMENT DEVELOPING AN INTEGRATED MARKETING COMMUNICATION MIX

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

PUSH VERSUS PULL COMMUNICATION STRATEGIES Push Strategy Pull Strategy Wholesalers Retailers Producer Consumers Wholesalers Producer Consumers Retailers The offering is pushed through a marketing channel to buyers in a sequential fashion Buyers demand the product from intermediaries, pulling the offering through a marketing channel

PUSH VERSUS PULL COMMUNICATION STRATEGIES Push Strategy Concentrates on building relationships with channel intermediaries Advertisements are likely to appear in trade journals and magazines Sales aids and contests used as incentives to gain shelf space and distribution Personal selling emphasized with wholesalers and retailers

PUSH VERSUS PULL COMMUNICATION STRATEGIES Pull Strategy Seeks to create initial interest for an offering among potential buyers who in turn demand it from intermediaries through the channel 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

MARKETING WEBSITES AND INTEGRATED MARKETING COMMUNICATIONS CHAPTER 6: INTEGRATED MARKETING COMMUNICATION STRATEGY AND MANAGEMENT MARKETING WEBSITES AND INTEGRATED MARKETING COMMUNICATIONS

Transactional Website MARKETING WEBSITES AND IMC Website Is a place where a provider makes available information to Internet users Marketing Website Engages buyers/potential buyers in interactive communication to sell a firm’s offerings or move them closer to a purchase Transactional Website Is an electronic storefront that tries to convert online browsers into online buyers Promotional Website Promotes a firm’s offerings and provides information on how they are used and where they are purchased

Transactional Websites 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

MARKETING WEBSITES AND IMC Promotional Websites 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

COMMUNICATION MIX BUDGETING CHAPTER 6: INTEGRATED MARKETING COMMUNICATION STRATEGY AND MANAGEMENT COMMUNICATION MIX BUDGETING

Fixed Dollar Amount per Offering Unit COMMUNICATION MIX BUDGETING Budgeting Approaches 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 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

COMMUNICATION MIX BUDGETING 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 Employed in introducing a new offering for which maximum exposure is desired Used by nonprofit organizations All Available Funds Objective- Task Objectives are set for a communication program Costs are based on the tasks to achieve the goals

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

COMMUNICATION BUDGET ALLOCATION Six types of mass media to be selected: Television Radio Newspapers Outdoor Magazines Internet

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 Continuity Strategy Spending advertising dollars over the long term to maintain continuity Pulse Strategy Concentrating its advertising but also attempts to maintain some semblance of continuity

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

Major Advertising Appeals Emotional Appeal: Ad-Mercedes Humor Appeal: AXE Dark Temptation Evidence Based: Colgate Dentist Music Appeal: Musical commercial-Huggies

Major Advertising Appeals-Rational

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.