Chapter 9: Developing Marketing Communications and Influence Strategy The Marketing Plan Handbook Fourth Edition Marian Burk Wood 9-1

Customer Influence Strategies Strategies for engaging customers through marketing communications and influencing how they think, feel, and act toward a brand or offering. The rise of social media has added a powerful new dimension to today’s communications and influence strategies. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-2

Social Media 9-3 Online media designed to facilitate user interaction. Content is largely or exclusively created by users. This interaction can lead to positive or negative word-of-mouth. Includes YouTube, Facebook, Twitter and blogs. On social media sites, marketers lack the high degree of control afforded by traditional advertising. Enhances the potential buzz marketing and for messages to go viral: rapidly gain a large audience. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-3

Word of Mouth and Buzz Marketing When possible, marketers want to spark positive word-of-mouth (WOM) communication: Buzz marketing: When the company seeks to generate more intense WOM, it may provide communicators with samples or coupons. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-4

Communications Strategy IMC strategy involves: Defining target audiences. Establishing objectives and a budget. Analyzing pertinent issues. Selecting appropriate IMC tools. Planning appropriate pre- and post-implementation research to evaluate effectiveness. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-6

Choosing the Target Audience Target market can vary from end customers to employees to distribution partners. Target markets need to be understood in as much detail as possible: To help shape the message. To help choose the appropriate tool. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-7

“Push” and “Pull” Strategies Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-8

Understanding Target Market Consumer Behavior Communications can be used to move the target through a series of responses. The order that the consumer moves through these responses is dependent upon whether the good or service is: Low involvement, High involvement, or Experiential. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-9

Low Involvement, High Involvement, and Experiential Models of Behavior Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-10

Setting Objectives 9-11 Objective Sample Influencing Beliefs “Achieve 25% awareness of Product A among the target audience within 4 months.” Influencing Feelings “Achieve 18% preference for Product E among the target audience within 3 months.” Influencing Behavior “Achieve 9% trial of Product C among the target audience within 6 months.” Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-11

Setting the Budget Factors to be considered when setting the IMC budget: Overall marketing budget. Objectives to be achieved. Competitive circumstances. Potential ROI (Return on Investment). Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-12

Examining Issues Types of issues that can impact communications strategy: Legal. Regulatory. Technological. Ethical. Cultural. Competitive. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-13

Five Basic Promotion Tools Marketing communications can use five basic tools: Advertising. Sales Promotion. Public Relations. Direct Marketing. Personal Selling. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-14

Choosing IMC Tools 9-15 IMC Tool Use Advertising Efficiently get messages to large audience. Sales Promotion Stimulate immediate purchase, reward repeat purchases, motivate sales personnel. Public Relations Build positive image, strengthen ties with stakeholders. Direct Marketing Reach targeted audiences, encourage direct response. Personal Selling Reach customers one-to-one to make sales, strengthen relationships. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-15

Planning Research The marketing plan should allow for pre-testing and post-implementation research to evaluate the IMC activities. Pre-testing: To find out if the target audience understands the message and retains information. Post-implementation: To determine whether or not the IMC program has achieved its objectives and which elements of the plan were particularly effective. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-16

Using IMC Tools Marketers typically use multiple tools in any one campaign. Careful coordination of content and delivery across messages and media is essential for consistency. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-17

Advertising 9-18 Two basic decisions: Message. Media. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-18

Message Appeal Types of appeals include: 9-19 Rational: Using facts and logic to stimulate a response. Emotional: Evoking feelings to stimulate a response. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-19

Choosing Media Each medium has characteristics that convey the message in a different way. Two key decisions in planning media: Reach Frequency Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-20

Media Choices 9-21 Television. Radio. Outdoor. Newspaper. Magazine. Internet. Direct Mail. Other. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-21

Sales Promotion Influences customer behavior by reducing perceived price or enhancing perceived value for a limited time. Sale promotion techniques vary depending on the target audience: Consumer promotions: Targeting end consumers. Trade promotions: Targeting channel members and salespersons. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-22

Consumer Promotions Objectives Types 9-23 Building awareness Sampling Coupons Rebates Refunds Premiums Sweepstakes and contests Bonus packs Loyalty programs Objectives Building awareness Encouraging product trial or usage Encouraging speedy response Reinforcing loyalty Supporting advertising or other IMC activities Defending against competitors Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-23

Trade Promotions 9-24 Objectives Types Enhancing product knowledge. Building commitment. Reinforcing focus and loyalty. Supporting advertising or other IMC activities. Defending against competitors. Types Allowances and incentives. Sales contests. Training and support. Point-of-purchase materials. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-24

Public Relations Purpose: To open the lines of communication and develop positive relationships with the company’s stakeholder groups: Customers and prospects. Employees and job applicants. Channel members. Suppliers. Government officials. Local community groups. Special interest groups. Financial community. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-25

Objectives for Public Relations Activities Understanding stakeholders’ perceptions and attitudes. Managing the company’s image. Communicating views and information. Building brand and product awareness. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-26

Direct Marketing Mail, broadcast and print media, the Internet, and other media. Cost-effective for: Precise targeting, and The use of customized messages. Marketers can easily measure results. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-27

Personal Selling More appropriate for: 9-28 Customized goods and services. Assessing needs. Large purchases. Providing individual attention. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-28

Personal Selling Decisions Build staff or work with an outside sales agency. How many salespersons are needed, and how they will be organized. Related to sales staff, how to: Recruit Train Manage Motivate Compensate Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-29

The Personal Selling Process Identifying and qualifying prospects. Planning the presales approach. Making sales contact. Addressing objections. Closing the sale. Following up after the sale. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-30

9-31 Copyright © 2011 Pearson Education, Inc. 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. Copyright © 2011 Pearson Education, Inc.   Publishing as Prentice Hall 9-31