Chapter 16 Designing and Managing Integrated Marketing Communications PowerPoint by Yu Hongyan Business School of Jilin University

Objectives Learn the major steps in developing an effective integrated marketing communications program. Understand the steps involved in developing an advertising program. Learn how companies can exploit the marketing potential of sales promotion, public relations, direct marketing, and e-marketing.

Marketing Communications Direct Marketing Advertising Sales Promotion Public Relations Personal Selling

Discussion Scenario Research has shown that many people treat their pets as they would true members of the family. Suppose you opened a bakery that made only nutritional pet treats, doggy birthday cakes and “cheesecakes”, and made-to-order pet food. How could you use each of the previously mentioned marketing communications platforms in your business?

Developing Effective Marketing Communications Steps in Marketing Communications Program Development Identify target audience Determine objectives of communication Design the message Select communication channels Establish the budget Select the marketing communications mix Measure results Manage the IMC process

Developing Effective Marketing Communications Step 1: Identifying the target audience Includes assessing the audience’s perceptions of the company, product, and competitors’ company/product image Step 2: Cognitive, affective, and behavioral objectives may be set Step 3: AIDA model guides message design

Developing Effective Marketing Communications Affective Feelings Emotions Beliefs Knowledge Objectives Behavioral Cognitive Intentions Actions

Developing Effective Marketing Communications Figure 16-1: Response Hierarchy Models

Developing Effective Marketing Communications Message Design Content Structure Format Source Message content decisions involve the selection of appeal, theme, idea, or USP Types of appeals Rational appeals Emotional appeals Moral appeals

Discussion Scenario Consider the pet bakery example discussed earlier in this presentation. What tactics would you use to make rational, emotional and/or moral appeals? Which type of appeal would you favor using and why?

Developing Effective Marketing Communications Message Design Content Structure Format Source One-sided vs. two-sided messages Order of argument presentation

Developing Effective Marketing Communications Message Design Content Structure Format Source Message format decisions vary with the type of media, but may include: Graphics, visuals Headline, copy or script Sound effects, voice qualities Shape, scent, texture of package

Developing Effective Marketing Communications Message Design Content Structure Format Source Message source characteristics can influence attention and recall Factors underlying perceptions of source credibility: Expertise Trustworthiness Likability

Developing Effective Marketing Communications Step 4: Selecting Communication Channels Personal communication channels Effectiveness derives from personalization and feedback Several methods of stimulating personal communication channels exist Nonpersonal communication channels Influence derives from two-step flow-of-communication process

Developing Effective Marketing Communications Methods of Stimulating Personal Communication Devoting extra effort to influential individuals or companies Creating opinion leaders Working through influential community members Using influential people in testimonial advertising Developing advertising with high “conversation value” Use viral marketing Developing word-of-mouth referral channels Establishing an electronic forum

Discussion Scenario Once again, think back to the pet bakery example discussed earlier in this presentation. What specific methods would you undertake to stimulate personal communication, and how would you go about implementation?

Developing Effective Marketing Communications Step 5: Establishing the Marketing Communications Budget Affordability method Percentage-of-sales method Competitive-parity method Objective-and-task method Step 6: Deciding on the Marketing Communications Mix

Developing Effective Marketing Communications Figure 16-2: Cost-Effectiveness of Different Promotional Tools at Different Buyer-Readiness Stages

Developing Effective Marketing Communications Communications Mix Selection Types of promotional tools Selection factors Advertising Sales promotion Public relations and publicity Direct marketing Personal selling

Developing Effective Marketing Communications Communications Mix Selection Types of promotional tools Selection factors Consumer vs. business market Stage of buyer readiness Stage of product life cycle Market rank

Developing Effective Marketing Communications Step 7: Measure Results Recognition, recall, attitudes, behavioral responses Step 8: Manage the Integrated Marketing Communications Process Provides stronger message consistency and greater sales impact Improves firms’ ability to reach right customers at right time with right message

Developing and Managing the Advertising Campaign Figure 16-3: The Five Ms of Advertising

Developing and Managing the Advertising Campaign The Five Ms of Advertising Mission Money Message Media Measurement Objectives can be classified by aim: Inform Persuade Remind Reinforce

Developing and Managing the Advertising Campaign The Five Ms of Advertising Mission Money Message Media Measurement Factors considered when budget-setting: Stage of product life cycle Market share and consumer base Competition and clutter Advertising frequency Product substitutability

Developing and Managing the Advertising Campaign The Five Ms of Advertising Mission Money Message Media Measurement Factors considered when choosing the advertising message: Message generation Message evaluation and selection Message execution Social responsibility review

Developing and Managing the Advertising Campaign The Five Ms of Advertising Mission Money Message Media Measurement Developing media strategy involves: Deciding on reach, frequency, and impact Selecting media and vehicles Determining media timing Deciding on geographical media allocation

Developing and Managing the Advertising Campaign Newspapers Newsletters Internet Magazines Major Media Types Radio Outdoor Direct Mail Brochures Television Telephone Yellow Pages

Developing and Managing the Advertising Campaign Does satellite radio threaten the future of radio advertising?

Developing and Managing the Advertising Campaign Wireless technologies have recently emerged as a new media channel

Developing and Managing the Advertising Campaign Deciding on Media Categories Target audience’s media habits, nature of the product and message, cost Media Timing Decisions Macroscheduling vs. microscheduling Continuity, concentration, flighting, and pulsing scheduling options Deciding on Geographical Allocation

Developing and Managing the Advertising Campaign The Five Ms of Advertising Mission Money Message Media Measurement Evaluating advertising effectiveness Communication-effect research Sales-effect research

Developing and Managing the Advertising Campaign Figure 16-4: Formula for Measuring Sales Impact of Advertising

Sales Promotion Sales promotions are short-term incentives designed to stimulate purchase among consumers or trade Purpose of sales promotion Attract new triers or brand switchers Reward loyal customers Increase repurchase rates

Sales Promotion Technology simplifies coupon redemption for online consumers

Steps in Sales Promotion Program Development Establish objectives Select consumer-promotion tools Select trade-promotion tools Select business- and sales force promotion tools Develop the program Pretest the program Implement and evaluate the program

Sales Promotion Major Consumer Sales Promotion Tools Cross-Promotions Tie-in Promotions Major Consumer Sales Promotion Tools Premiums Cash Refunds Prizes Coupons Samples Free Trials Product Warranties Patronage Awards POP Displays & Demonstrations

Corporate Communications Public Relations Public relations activities promote or protect the image of the firm via: Product Publicity Public Relations Counseling Lobbying Corporate Communications

Public Relations Marketing Public Relations (MPR) Plays an important role in New product launches Repositioning of mature brand Building interest in product category Influencing specific target groups Defending products with public problems Building the corporate image Three Major MPR Decisions

Major Public Relations Tools Public-service Activities News Events Speeches Publications Sponsorships Identity Media Public-service Activities

Direct Marketing Direct marketing uses consumer-direct channels to reach and deliver offerings to consumers without intermediaries. Direct marketing is growing and offers consumers key benefits. Firms are recognizing the importance of integrated direct marketing efforts.

Direct Marketing Channels Major Direct Marketing Tools Face-to-Face Direct Mail Online Catalog Kiosk Telemarketing TV Marketing

Direct Marketing Steps in Developing a Direct-Mail Campaign: Step 1: Set objectives Step 2: Identify target markets Step 3: Define the offer Step 4: Test the elements Step 5: Measure results