９ Integrated Marketing Communication Advertising Sales Promotion Chapter 1 ９ Integrated Marketing Communication Advertising Sales Promotion Public Relations Personal Selling Direct Marketing Professor Takada

Mini’s Guerrilla Marketing Professor Takada

Marketing Communications Chapter 1 Marketing Communications The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell. Professor Takada

IMC Builds Brands Professor Takada

Product Launch Communications Mix Kleenex allocated its communications dollars: 75% Television 23% Print 2% Online Professor Takada

Factors in Setting Communications Mix Type of product market Consumer readiness to make a purchase Stage in the product life cycle Market rank Professor Takada

Field of Experience Sender’s field Receiver’s field Professor Takada

Elements in the Communications Process Professor Takada

The Communications Process Selective attention Selective distortion Selective retention Professor Takada

Response Hierarchy Models Professor Takada

ROAD MAP: Previewing the Concepts Integrated marketing communications Five promotion tools and the factors that must be considered in shaping the overall promotion mix. Advertising: The major decisions involved in developing an advertising program. Sales promotion: How do sales promotion campaigns are developed and implemented? Public relations: How do companies use public relations to communicate with their publics? Personal selling: Role of a company’s salespeople, six major steps and process of sales force management Direct marketing: Major forms of direct marketing. Professor Takada

Marketing Communications Mix Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Sales Promotion Short-term incentives to encourage the purchase or sale of a product or service. Public Relations Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. Personal Selling Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Direct Marketing Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—the use of telephone, mail, fax, e-mail, the Internet, and other tools to communicate directly with specific consumers. Professor Takada

The Changing Communications Environment Two factors are changing the face of today’s marketing communications: As mass markets have fragmented, marketers are shifting away from mass marketing Vast improvements in information technology are speeding the movement toward segmented marketing The Need for IMC Using IMC, the company carefully integrates and coordinates its many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands. Professor Takada

Integrated Marketing Communication Professor Takada

Public Relations Advertising Sales Promotion Personal Selling Can reach masses of geographically dispersed buyers. Can repeat a message many times. Is impersonal, one-way communication. Can be very costly for some media types. Wide assortment of tools. Attracts consumer attention. Offers strong incentives to buy. Invites and rewards quick consumer response. Effects are short-lived. Very believable. Reaches people who avoid salespeople and ads. Can dramatize a company or product. Under utilized. Effective and economical. Personal Selling Direct Marketing Involves personal interaction. Allows relationship building. Most expensive promotion tool. Many forms that share four characteristics: Nonpublic/Immediate/Customized/Interactive Well suited to highly targeted marketing. Professor Takada

Push vs. Pull Promotion Strategy Professor Takada

Cost Effectiveness by Buyer Readiness Stage Professor Takada

Current Consumer States for Two Brands Professor Takada

Personal Communications Channels Advocate channels Expert channels Social channels Professor Takada

Coordinating Media to Build Brand Equity Brand Signature Ad Retrieval Cues Media Interactions Professor Takada

The major decisions involved in developing an advertising program. ROAD MAP: Integrated marketing communications Five promotion tools and the factors that must be considered in shaping the overall promotion mix. Advertising: The major decisions involved in developing an advertising program. Sales promotion: How do sales promotion campaigns are developed and implemented? Public relations: How do companies use public relations to communicate with their publics? Personal selling: Role of a company’s salespeople, six major steps and process of sales force management Direct marketing: Major forms of direct marketing. Professor Takada

Advertising Any paid form of nonpersonal presentation Chapter 1 Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Professor Takada

Procter & Gamble’s Advertising History Chapter 1 Procter & Gamble’s Advertising History Click on the video icon to launch a video clip about Procter & Gamble’s advertising history. Professor Takada

Major Decisions in Advertising Professor Takada

Setting Advertising Objectives An advertising objective: A specific communication task to be accomplished with a specific target audience during a specific period of time. Classified by purpose: Inform Persuade Compare Remind Professor Takada

Communications Objectives Category Need Brand Awareness Brand Attitude Purchase Intention Professor Takada

Factors to Consider in Setting an Advertising Budget Stage in the product life cycle Market share and consumer base Competition and clutter Advertising frequency Product substitutability Professor Takada

Setting the Advertising Budget Affordable Based on What the Company Thinks it Can Afford Percentage-of-Sales Based on a Percentage of Current or Forecasted Sales Setting the Advertising Budget Competitive-Parity Set Budget to Match Competitors Objective-and-Task Set Objectives, Determine Tasks to Achieve Objectives, Sum of Task Costs Equals Budget Professor Takada

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. Professor Takada

Developing Advertising Strategy Two major elements: Message decisions Media decisions Professor Takada

Message Strategy Identify Customer Benefits Develop Compelling Creative Concept The “Big Idea” Advertising Appeals Should Be Meaningful, Believable, & Distinctive Professor Takada

Image The set of beliefs, ideas, and impressions Chapter 1 Image The set of beliefs, ideas, and impressions a person holds regarding an object. Professor Takada

Communications Objectives Category Need Brand Awareness Brand Attitude Purchase Intention Professor Takada

Designing the Communications Message strategy Creative strategy Message source Personal communication channels Nonpersonal communication channels Integration Professor Takada

Creative Strategy Informational and transformational appeals Chapter 1 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. Professor Takada

Creative Brief Positioning statement Key message Target market Objectives Key brand benefits Brand promise Evidence of promise Media Background Creative considerations Professor Takada

The Importance of Taglines Brand Theme Ad Tagline Our hamburgers are bigger. Where’s the Beef? Our tissue is softer. Please Don’t Squeeze the Charmin. No hard sell, just a good car. Drivers Wanted We don’t rent as many cars, so we have to do more for our customers. We Try Harder Professor Takada

Message Source Celebrity Characteristics Expertise Trustworthiness Likeability Professor Takada

Stimulating Personal Influence Channels Identify influential individuals and devote extra attention to them Create opinion leaders Use community influentials in testimonial advertising Develop advertising with high “conversation value” Develop WOM referral channels Establish an electronic forum Use viral marketing Professor Takada

Nonpersonal Communication Channels Media Sales Promotion Events and Experiences Public Relations Professor Takada

Message Execution Typical Approaches Slice of Life Testimonial Evidence or Endorsement Lifestyle Scientific Evidence Fantasy Technical Expertise Typical Approaches Mood or Image Personality Symbol Musical Comparative advertising, celebrity endorsement (Nike with Tiger Woods), humor in ads. Professor Takada

Message Execution Choose a tone Use memorable, attention-getting words Choose correct format elements Illustration Headline Copy Professor Takada

Media Decisions Media Type Media Timing Reach & Frequency, Gross Rating Point (GRP) Media Impact The qualitative value of a message exposure through a given medium Media Timing Media Type Major media types: Newspapers, TV, DM, radio, magazines, outdoor, Internet. Factors to consider: Media habits of target consumers Nature of the product Type of message Cost Media vehicles Specific media within each general media type Must decide how to schedule the advertising over the course of a year Follow seasonal pattern Oppose seasonal pattern Same coverage all year Choose the pattern of the ads Continuity Pulsing Professor Takada

Television Advantages Disadvantages Reaches broad spectrum of consumers Low cost per exposure Ability to demonstrate product use Ability to portray image and brand personality Disadvantages Brief Clutter High cost of production High cost of placement Lack of attention by viewers Professor Takada

Print Ads Advantages Detailed product information Ability to communicate user imagery Flexibility Ability to segment Disadvantages Passive medium Clutter Unable to demonstrate product use Professor Takada

Print Ad Components Headline Picture Signature Copy Professor Takada

Media Selection Reach Frequency Impact Exposure Professor Takada

Relationship among Trial, Awareness, and the Exposure Function Professor Takada

Reach x Frequency = GRPs Professor Takada

Choosing Among Major Media Types Target audience and media habits Product characteristics Message characteristics Cost Professor Takada

Major Media Types Newspapers Television Direct mail Radio Magazines Outdoor Yellow pages Newsletters Brochures Telephone Internet Professor Takada

Marketing Communication Expenditures (2001) Media $ % of Total TV 52.7 22 Radio 19.4 8 Internet 3.4 1 Magazines 12.3 5 Newspaper 49.4 21 Professor Takada

Classification of Advertising Timing Patterns Professor Takada

Factors Affecting Timing Patterns Buyer turnover Purchase frequency Forgetting rate Professor Takada

Media Schedule Patterns Continuity Concentration Flighting Pulsing Professor Takada

Evaluating Advertising Effectiveness Communication Effect Research Consumer feedback method Portfolio tests Laboratory tests Sales-Effect Research Professor Takada

Evaluating Advertising Measure the communication effects of an ad. “Copy Testing” Measure the sales effects of an ad. Is the ad increasing sales? Professor Takada

Print Ad Evaluation Criteria Is the message clear at a glance? Is the benefit in the headline? Does the illustration support the headline? Does the first line of the copy support or explain the headline and illustration? Is the ad easy to read and follow? Is the product easily identified? Is the brand or sponsor clearly identified? Professor Takada

Other Advertising Considerations Small Companies: Sales Departments Large Companies: Advertising Departments Advertising Agency: A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs. International Issues Professor Takada

A New Advertising Challenge Professor Takada