Chapter 14 Integrated Marketing Communications Copyright © 2013 Pearson Canada Inc.

TFTD The Dog, The Monkey and The Panther. The Art of Controlling Perceptions

Developing a Marketing Strategy: The Marketing Mix Product Price Marketing Communications Distribution Marketing Mix Consumer or Business Customer 1-3Copyright © 2013 Pearson Canada Inc.

Integrated Marketing Communications 14-4Copyright © 2013 Pearson Canada Inc. “The coordination of various forms of marketing communications into a uniform program that maximizes the impact on consumers and other types of customers.”

The P of Promotion Integrated Marketing Communication (IMC) Made up of four major components –Advertising Media Communications Event management Direct response Social Media –Sales promotion Direct response Social Media –Personal Selling –Public Relations Purpose - Building Brand Position

IMC Planning Copyright © 2013 Pearson Canada Inc.14-6 Advertising Tools

Hierarchy of Effects & Role of IMC Unawareness Awareness Knowledge Liking Conviction/Intention Purchase Repurchase/Loyalty IMC AIDA (attention/awareness, interest, desire, action) Preference Behavioural Objectives: Trial – Category Trial – Brand Trial – Brand Retrial – Brand Switching Repeat Purchase Purchase Related Behaviour Repeat Consumption Brand Attitude Objectives  Top of mind  Share of mind

Advertising’s Role Copyright © 2013 Pearson Canada Inc.14-8 Advertising is the placement of informative and/or persuasive messages in any medium by an identified sponsor. The basic objectives of advertising are: 1.To influence the thought patterns of the target audience in a favourable manner 2.To educate the audience about product features and benefits. 3.To create awareness of sales promotions which motivate purchase of a specific brand of good.

Marketing Communications Planning Copyright © 2013 Pearson Canada Inc.14-9 “The process of making systematic decisions about which components of the marketing communications mix to use in a campaign.” Different communications components may be better at achieving different objectives: Sample Objectives: Awareness Position / Reposition Trial purchase Alter perceptions Diffuse damaging situation

Marketing Communications Strategy Copyright © 2013 Pearson Canada Inc.14-10

Budget Determination Copyright © 2013 Pearson Canada Inc A marketing manager must carefully calculate and rationalize their annual marketing budget.

Advertising Agency’s Role Copyright © 2013 Pearson Canada Inc Advertising agencies usually create the ad campaigns for marketing organizations. Creative Planning Media Planning Advertising Agency IMC Planning

Two Key Aspects Creative Strategy What is the message and why? What will be the tone? How will we appeal emotionally? What techniques will we use? Media Strategy Where will the message be utilized and why? How will we get the message to the audience? How often do we send the message? How will different media complement each other?

Creating the Message Copyright © 2013 Pearson Canada Inc The creative plan has three essential components: Creative Objectives What to say Creative Strategy How to say it Creative Execution Specific tactics The message includes the key benefit the brand offers.

Creative Objectives: What to Say? Copyright © 2013 Pearson Canada Inc The key aspect of the message (primary benefit) must be clearly communicated. It becomes a theme to the series of communications.

Creative Strategy Copyright © 2013 Pearson Canada Inc Agencies get paid to come up with the “big idea” to market a brand. Their message strategy considers potential themes and a variety of appeal techniques. Humour Comparison Emotion Lifestyle A lifestyle image works for Harley- Davidson.

Advertising Appeals Profit Health Love or romance Fear Admiration Convenience Fun and pleasure Vanity and egotism Environmental Consciousness Product saves, makes, or protects money Appeals to body-conscious or health seekers Used in selling cosmetics and perfumes Social embarrassment, old age, losing health Reason for use of celebrity spokespeople Used for fast foods and microwave foods Key to advertising vacations, beer, parks Used for expensive or conspicuous items Centres around environmental protection

The Major Types of Advertising

Product Advertising PioneeringPioneering  Stimulates primary demand for new product or category  Used in the PLC introductory stageCompetitiveCompetitive  Influences demand for brand in the growth phase of the PLC  Often uses emotional appeal ComparativeComparative  Compares two or more competing brands’ product attributes  Used if growth is sluggish, or if competition is strong Online

Creative Strategy - Techniq ues Copyright © 2013 Pearson Canada Inc Celebrity Endorsement Testimonial Sex Product Demonstrations The Think Marketing box on p.285 demonstrates how national pride worked well in a campaign for Molson Canadian.

Media Strategy Copyright © 2013 Pearson Canada Inc Media strategy involves decisions about how to best reach the target audience. Numerous factors are considered: Match Target with Medium Reach Frequency Continuity Engagement Market Coverage Timing Media Alternatives

Media Planning Copyright © 2013 Pearson Canada Inc The media plan has three essential components: Media Objectives Media Strategy Media Execution A good media plan employs the right media to reach the target audience effectively and efficiently.

Media Strategy Copyright © 2013 Pearson Canada Inc Matching Target with Medium – matching media that have a user profile (viewer, reader, listener, etc.) similar to the target market profile. Reach – The total audience, potentially exposed to a message in a given period. Frequency – The average number of times an audience is exposed to a message in a given period. Continuity – The length of time required to generate impact on a target market through a particular medium.

Media Strategy Copyright © 2013 Pearson Canada Inc Tradeoffs in Media – many media require that you sacrifice one for the other. Richness – the depth and content of the message. Magazines and direct mail can give you lots of opportunity to share deep detailed messages Reach – Mass media allows you to reach many people but television, radio and newspaper ads are short and to the point. Internet – a medium that allows you to do both. Reach the whole world and give them a rich message. – Think Click- through

Media Strategy Copyright © 2013 Pearson Canada Inc Engagement – A person’s degree of involvement with a medium when consuming it. Passive – television, magazine Active – Internet, mobile – “click through” Market Coverage – The number of geographic markets in which advertising will occur for the duration of the plan (national, regional, city, etc.). Timing – The best time to reach the target market (time of day, day of week, season, etc.).

Media Alternatives Copyright © 2013 Pearson Canada Inc Television Radio Newspapers Magazines Out-of-Home Direct Response ___________ Internet Mobile Video Games Blending the digital media with the traditional media is a challenge. Dollars are shifting towards digital media and away from mass media. Media is always changing

Media Decisions in Advertising Newspapers Magazines Yellow Pages Internet / Mobility Radio Television Outdoor Media Direct Mail Trade Exhibits Cooperative Advertising Brochures Coupons Catalogues Special Events Monitored Media Unmonitored Media

Media Related Opportunities Copyright © 2013 Pearson Canada Inc Advertisers are questioning the value of traditional advertising and are seeking new alternatives. 1.Product Placement 2.Branded Content (Sponsor Integration) The Think Marketing box on p. 288 offers details about TD Canada Trust’s branded content campaign.

Media Execution Copyright © 2013 Pearson Canada Inc Specific plan details are clearly identified in this stage. Evaluation of media cost comparisons (CPM) Cost Per Mille(Thousand) – Cost per impression Calendar outlining all media activities Budget summaries (what, when, where, how much?)

Direct Response Advertising Copyright © 2013 Pearson Canada Inc “Advertising messages delivered by any medium that includes a direct means of response by the audience receiving the message.” Direct Mail Direct Response Television (DRTV) (Shopping Channel) Direct / Text

Direct Response and CRM Copyright © 2013 Pearson Canada Inc Reaching a customer individually and directly can be more efficient than using mass media. Shoppers Drug Mart collects and analyzes information about customers and sends them offers they should be interested in by or regular mail.

Online Advertising Copyright © 2013 Pearson Canada Inc “The placement of electronic communication on a website, in , or over personal communications devices connected to the Internet.” Ad placement is based on behavioural targeting: “A data-base driven marketing system that tracks a consumer’s behaviour to determine his or her interests and then serves ads to that person relevant to that interest. ”

Online Advertising Options Copyright © 2013 Pearson Canada Inc Numerous options are available to advertisers. Search Advertising – An advertiser’s listing is placed within or alongside search results in exchange for paying a fee each time someone clicks on the listing in those search results. Display Advertising – Banner ads in a variety of sizes. Rich Media – Banner ads that include animation, sound, video, and interactivity. Sponsorships – for a fee an advertiser commits to an extended relationship with a website.

Online Advertising Options Copyright © 2013 Pearson Canada Inc Permission-Based – Consumers agree to accept online messages from commercial sources. Intrawest Resorts sends offers of interest to customers in its database.

Social Media Communications Copyright © 2013 Pearson Canada Inc A few facts and figures about social media usage in Canada: The reach of social networking and blogging venues is growing at twice the rate of other Internet options. In Canada there are more than 16 million Facebook users. The shear size of the potential audience is overwhelming for marketers; many remain uncertain of the tangible benefits social communications offer.

Social Network Categories Copyright © 2013 Pearson Canada Inc Social networks fall into two basic categories: Broad-Based Sites such as Facebook and YouTube which offer an interactive network of friends, profiles, blogs, music and videos. Niche Sites such as Linkedin that attract people with specific interests (a network for business people and other working professionals).

Social Niche Site Example Copyright © 2013 Pearson Canada Inc Dogster is a niche site for dog lovers…600,000 of them! That’s a significant audience for marketers of pet food and pet accessories.

Consumer Control Copyright © 2013 Pearson Canada Inc Marketers are adapting to this shift in control and many are inviting consumer participation in brand communications programs, a concept referred to as crowdsourcing. Crowdsourcing uses the collective talents of the public to complete marketing tasks normally undertaken by a third party provider. Such tasks are completed more quickly and at lower cost.

“Whuffie” A type of “on-line reputational currency” a person or organization can create by offering value and help to others and thereby creating a relationship that can be cashed in from time to time

Advertising on Social Networks Copyright © 2013 Pearson Canada Inc Many standard Internet options are available on social networks along with some new opportunities. Display Advertising Brand Pages Referrals from a Friend Network (Whuffie) Company Blogs

Benefits of Social Media Communications Copyright © 2013 Pearson Canada Inc Word-of-Mouth communications among friend networks - trust - (such communications can also be damaging if a brand or company steps out of line). 2.Customer engagement with brands via contests and general conversation. 3.Direct contact with customers allows for feedback in a very quick manner. 4.Opportunity to learn about customer preferences.

Mobile Communications Copyright © 2013 Pearson Canada Inc Some facts and figures about the mobile communications market: 24.5 million wireless subscribers in Canada; 5.7 million subscribe to mobile broadband. Mobile only represents 7.5% of one’s media time but is growing faster than any other medium. Mobile communications allows marketers to reach consumers based on where they are located (location-based marketing was introduced earlier).

Mobile Marketing Communications Copyright © 2013 Pearson Canada Inc Text Messaging Video Messaging Applications QR Codes – Two dimensional bar codes The most common forms of communication thus far, include:

Mobile Communications: Applied Copyright © 2013 Pearson Canada Inc A quick response (QR) code communicates more information about a product to a customer.

Video Game Advertising Copyright © 2013 Pearson Canada Inc “The placement of ads in commercially sold games or games played online or on mobile phones.” Gamers are accepting of ads. The presence of ads adds some reality to the game. Brand recall scores increase after viewing in games.

Visual Model Copyright © 2013 Pearson Canada Inc.14-46