1. Integrated Marketing Communications Strategy
Chapter 14
Integrated Marketing Communications Strategy

2. Learning Goals Know the tools of the marketing communications mix.
Understand the process and advantages of integrated marketing communications.
Learn the steps in developing effective marketing communications.
Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.

3. Case Study BMW MINI USA
BMW introduced the MINI Cooper into the U.S.
Challenges: small budget and staff
Strong trend of SUV purchases
Broke with traditional auto advertising and used unconventional media
“Let’s Motor” campaign began by mounting MINIs on SUV’s in 22 cities.
Created integrated strategy with unified brand personality at every consumer “touchpoint”
Campaign a success with a 10-month waiting list
Awareness growth from 2% to 53% of U.S. consumers
MINI sales are running better than 80% above original projections.

4. Learning Goals Know the tools of the marketing communications mix.
Understand the process and advantages of integrated marketing communications.
Learn the steps in developing effective marketing communications.
Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.

5. Definition – Integrated Marketing Communications
A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines -- for example, general advertising, direct response, sales promotion, and public relations -- and combines these disciplines TO PROVIDE CLARITY, CONSISTENCY, and maximum COMMUNICATIONS IMPACT.

6. Definition 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.

7. Tools of the Mix Figure 14.1

8. Learning Goals Know the tools of the marketing communications mix.
Understand the process and advantages of integrated marketing communications.
Learn the steps in developing effective marketing communications.
Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.

9. Integrated Marketing Communications
The Marketing Communications Environment is Changing:
Mass markets have fragmented, causing marketers to shift away from mass marketing to target marketing.
Improvements in information technology are facilitating segmentation
Media fragmentation has occurred with companies doing less broadcasting and more narrowcasting

10. Integrated Marketing Communications
The Need for Integrated Marketing Communications
Conflicting messages from different sources or promotional approaches can confuse company or brand images
The problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently

11. Integrated Marketing Communications
The Need for Integrated Marketing Communications
The Internet must be integrated into the broader IMC mix
Best bet is to wed traditional branding efforts with the interactivity and service capabilities of online communications

12. Integrated Marketing Communications
The 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.

13. Ford Motor Company

14. Discussion Question How does Turkcell practice IMC? 14 - 14
Have the students think about color and logo. Their packaging on all their products, their event sponsorship, their advertising, their website, all tie together to create IMC.

15. Learning Goals Know the tools of the marketing communications mix.
Understand the process and advantages of integrated marketing communications.
Learn the steps in developing effective marketing communications.
Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.

16. The Communication Process
Communications efforts should be viewed from the perspective of managing customer relationships over time.
The communication process begins with an audit of all potential contacts a customer might have with the brand.
Effective communication requires knowledge of how communication works.

17. Elements in the Communication Process Figure 14.2

18. Developing Effective Communication
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

19. Buyer-Readiness Stages Figure 14.3

20. Who is the target Which readiness stage? Awareness Knowledge Liking
Preference
Conviction
Purchase
This ad is targeted to single women to buy diamond rings for themselves – not to wait for the diamond for their left ring finger but to consider the other hand. Most women are aware of diamond rings, but this ad works to build knowledge and understanding that buying a diamond for themselves is a good idea. Some students might say it is preference and choosing the diamond over another ring or piece of jewelry.

21. Developing Effective Communication
Step 3: Designing a Message
AIDA framework guides message design
Message content contains appeals or themes designed to produce desired results
Rational appeals
Emotional appeals
Love, pride, joy, humor, fear, guilt, shame
Moral appeals

22. What is appeal? Rational appeals Emotional appeals Moral appeals
Love, pride, joy, humor, fear, guilt, shame
Moral appeals

23. What is appeal? Rational appeals Emotional appeals Moral appeals
Love, pride, joy, humor, fear, guilt, shame
Moral appeals
MasterCard really set a trend for credit card companies when they began to run rational/emotional ads. Prior to this, credit card companies were always rational appeals.

24. What is appeal? Rational appeals Emotional appeals Moral appeals
Love, pride, joy, humor, fear, guilt, shame
Moral appeals
MasterCard really set a trend for credit card companies when they began to run rational/emotional ads. Prior to this, credit card companies were always rational appeals.

25. Why can humor be a particularly effective appeal?
Humor often breaks through the clutter and grabs the consumer’s attention. Also, it has been found to improve recall on day-after recall tests.
Students should be aware that sometimes humor can detract from the product or message unless it is a proper fit with the product. This ad is an excellent fit.

26. Developing Effective Communication
Step 3: Designing a Message
Message Structure: Key decisions are required with respect to three message structure issues:
Whether or not to draw a conclusion
One-sided vs. two-sided argument
Order of argument presentation
Message Format: Design, layout, copy, color, shape, movement, words, sounds, voice, body language, dress, etc.

27. Developing Effective Communication
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
Nonpersonal communication channels
Includes media, atmosphere, and events

28. Developing Effective Communication
Step 5: Selecting the Message Source
Highly credible sources are more persuasive
A poor spokesperson can tarnish a brand

29. Discussion Question Effective spokespeople?
What makes an effective spokesperson?
When should they NOT be used?
An effective spokesperson is credible and a good fit for the product and the target. People can relate to the spokesperson or look up to them as an aspirational role model.
An ineffective spokesperson might be someone who is overused (perhaps Tiger Woods). In addition, many companies choose not to use someone who is high risk for improper or illegal behavior. Some companies are actually beginning to choose high-risk spokespeople (Reebok) because they are considered edgy, cool and hip.

30. Developing Effective Communication
Step 6: Collecting Feedback
Recognition, recall, and behavioral measures are assessed
May suggest changes in product/promotion

31. Advertising Recall Put away your notes
Recall all the ads and marketing messages you have seen so far in this lecture
This is a great opportunity to check on recall. The ads viewed so far include:
King of Queens
Diamonds
MasterCard
Quaker Oats Bites
Norelco Vacuum
Ask the students which ones they recall. Then try to determine why they remember these. Was it impact, fit, recency?
Explain to the students that they are a captive market who is focusing on the ads – imagine what happens in the real world.

32. Learning Goals Know the tools of the marketing communications mix.
Understand the process and advantages of integrated marketing communications.
Learn the steps in developing effective marketing communications.
Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.

33. Setting the Promotional Budget
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

34. Setting the Promotional Budget
Setting the Total Promotional Budget
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

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

36. Setting the Promotional Mix
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
Promotion Tools
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

37. Setting the Promotional Mix
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
Promotion Tools
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

38. Setting the Promotional Mix
Promotion Tools
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
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

39. Setting the Promotional Mix
Promotion Tools
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
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

40. Setting the Promotional Mix
Promotion Tools
Many forms: Telephone marketing, direct mail, online marketing, etc.
Four distinctive characteristics:
Nonpublic
Immediate
Customized
Interactive
Well-suited to highly targeted marketing efforts
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

41. Setting the Promotional Mix Figure 14.4

42. Setting the Promotional Mix
Checklist: Integrating the Promotion Mix
Analyze trends (internal and external)
Audit communications spending
Identify all points of contact
Team up in communications planning
Make all communication elements compatible
Create performance measures
Appoint an IMC manager

43. 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

44. 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

45. Learning Goals Know the tools of the marketing communications mix.
Understand the process and advantages of integrated marketing communications.
Learn the steps in developing effective marketing communications.
Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.