1. Chapter 14 Integrated Marketing Communications and Advertising
Idil Yaveroglu
Lecture Notes

2. Marketing Communications Mix
The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.

3. Integrated Marketing Communications
A concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

4. The Communication Process

5. Noise – How would you interpret this ad?
Apple 1984
Who is the source?
What is the message?
Is there noise?

6. IMC Planning Step 1: Identifying the Target Audience
Affects decisions related to what, how, when, and where message will be said, as well as who will say it
Step 2: Determining Communication Objectives
Six buyer readiness stages

7. Step 3: Designing a Message
AIDA framework guides message design
Ads should get attention, hold interest, arouse desire, and obtain action.
Message content contains appeals or themes designed to produce desired results
Rational appeals
Emotional appeals
Love, pride, joy, humor, fear, guilt, shame
Moral appeals

8. Step 4: Choosing Media Personal communication channels
Includes face-to-face, phone, mail, and Internet chat communications
Word-of-mouth influence is often critical
Buzz marketing cultivates opinion leaders
Non-personal communication channels
Includes media, atmosphere, and events

9. Step 6: Collecting Feedback
Step 5: Selecting the Message Source
Highly credible sources are more persuasive
A poor spokesperson can tarnish a brand
Step 6: Collecting Feedback
Recognition, recall, and behavioral measures are assessed
May suggest changes in product/promotion

11. Setting the Total Promotional Budget
Affordability Method
Budget is set at a level that a company can afford
Percentage-of-Sales Method
Past or forecasted sales may be used
Competitive-Parity Method
Budget matches competitors’ outlays
Objective-and-Task Method
Specific objectives are defined
Tasks required to achieve objectives are determined
Costs of performing tasks are estimated, then summed to create the promotional budget

12. Setting the Overall Promotion Mix
Determined by the nature of each promotion tool and the selected promotion mix strategy

13. Setting the Overall Promotion Mix - Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods and services by an identified sponsor.

14. Setting the Promotional Mix
Advertising
Reaches large, geographically dispersed audiences, often with high frequency
Low cost per exposure, though overall costs are high
Consumers perceive advertised goods as more legitimate
Dramatizes company/brand
Builds brand image; may stimulate short-term sales
Impersonal; one-way communication

15. Advertising
Developing an Advertising Program

16. Selecting Advertising Media
Decide on level of reach, frequency and impact
Choose among the major media types by considering:
Consumer media habits, nature of the product, types of messages, and costs
Select specific media vehicles
Decide on media timing

17. Major Media Types Newspapers Television Direct Mail Radio Magazines
Good mass market coverage
Low cost per exposure
High absolute costs
High clutter
Direct Mail
Radio
Magazines
High selectivity
Outdoor
Internet

18. Media Timing (Continuity)
Continuity involves the matter of how advertising should be allocated during the course of an advertising campaign.
Continuous schedule
Pulsing Schedule
Flighting Schedule

19. Advertising Schedules
600
400
Continuous
Ad $ (in thousands)
Pulsing
Flighting
200 J F M A M J J A S O N D

20. Media Planning Media Plan Media Class Media Vehicle Media Mix
Specifies media in which advertising message will be placed to reach a desired audience
Media Class
Broad category of media, such as TV, radio, or newspapers
Media Vehicle
Specific option within a class, i.e., Vogue
Media Mix
Blend of different media to reach target audience

21. Media Objectives Key Issues:
What proportion of a target audience do we want to reach with our advertising message during a specified period?
Reach
How frequently do we need to expose the audience during a specified period?
Frequency
How much total advertising is required to accomplish reach and frequency objectives?
Weight
How should we allocate the advertising budget over time?
Continuity
What is the most economically justified way to accomplish the other objectives?
Cost

22. Setting the Promotional Mix
Sales Promotions
Makes use of a variety of formats: premiums, coupons, contests, etc.
Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales
Stimulates quick response
Short-lived
Not effective at building long-term brand preferences

23. Setting the Promotional Mix - PR
Public Relations
Highly credible
Many forms: news stories, news features, events and sponsorships, etc.
Reaches many prospects missed via other forms of promotion
Dramatizes company or benefits
Often the most underused element in the promotional mix

24. Role and Impact of Public Relations
Strong impact on public awareness at lower cost than advertising
Greater credibility than advertising
Publicity is often underused
Good public relations can be a powerful brand-building tool
miracle- ad/#:eyJzIjoiZiIsImkiOiJfM3JrZ245aGx3M3NoOHJzOCJ9

25. PR Tools News Speeches Buzz Marketing Corporate Identity Materials
Mobile Marketing
Special Events
Written Materials
Audiovisual Materials
Public Service Activities
Internet

26. The Haagen Dazs Story
Was established in New York in 1920s, not a Danish or Belgium brand.
Founder Mr Mattus, called his new brand Häagen-Dazs, to convey an aura of the old-world traditions and craftsmanship to which he remained dedicated.
The brand was introduced to Europe in late 80s
First opened posh ice-cream parlors in prominent, affluent locations with heavy foot traffic
Obtained placement in quality hotels and restaurants with name featured on menus
Used branded freezers
Low budget print campaign
Sponsored the arts – was featured in Don Giovanni in London – got lots of free publicity
Today brand commands 1/3rd of premium ice cream market – all with no 30 second commercials.

27. Special Events Tennis Australian Open Davis Cup
Monte Carlo Rolex Masters
Wimbledon
Golf
US Open Championship
Presidents Cup
Senior Open Championship
Ryder Cup…
Yachting
ISAF Rolex World Sailor
Maxi Yacht Rolex Club
Rolex Farr World Championship
Rolex Fastness Race…

28. Hugo Boss Sponsorships – sponsored Porsche in Formula One
International Tennis, golf and ski competitions
Funded exhibitions and artists
Placements in “LA Law” and “Miami Vice”

29. Setting the Promotional Mix
Personal Selling
Most effective tool for building buyers’ preferences, convictions, and actions
Personal interaction allows for feedback and adjustments
Relationship-oriented
Buyers are more attentive
Sales force represents a long-term commitment
Most expensive of the promotional tools

30. Setting the Promotional Mix
Direct Marketing
Many forms: Telephone marketing, direct mail, online marketing, etc.
Four distinctive characteristics:
Nonpublic
Immediate
Customized
Interactive
Well-suited to highly targeted marketing efforts

31. Setting the Promotional Mix

32. Socially Responsible Communications
Advertising and Sales Promotion
Avoid false and deceptive advertising
No bait and switch advertising
Trade promotions can not favor certain customers over others
Use advertising to promote socially responsible programs and actions

33. Socially Responsible Communications
Personal Selling
Salespeople must follow the rules of “fair competition”
Three day cooling-off rule protects ultimate consumers from high pressure tactics
Business-to-business selling
Bribery, industrial espionage, and making false and disparaging statements about a competitor are forbidden