1. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 0 in Chapter 16 Chapter 16 Designing and Managing Integrated Marketing Communications

2. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 1 in Chapter 16 Marketing Communications Advertising Direct Marketing Sales Promotion Public Relations Personal Selling

3. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 2 in Chapter 16 Developing Effective Marketing Communications  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 Steps in Marketing Communications Program Development

4. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 3 in Chapter 16 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

5. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 4 in Chapter 16 Developing Effective Marketing Communications Behavioral Cognitive Affective Objectives Beliefs Knowledge Feelings Emotions Intentions Actions

6. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 5 in Chapter 16 Developing Effective Marketing Communications Figure 16-1: Response Hierarchy Models

7. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 6 in Chapter 16 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

8. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 7 in Chapter 16 Developing Effective Marketing Communications Message Design  Content  Structure  Format  Source  One-sided vs. two-sided messages  Order of argument presentation

9. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 8 in Chapter 16 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

10. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 9 in Chapter 16 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

11. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 10 in Chapter 16 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

12. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 11 in Chapter 16 Developing Effective Marketing Communications  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 Methods of Stimulating Personal Communication

13. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 12 in Chapter 16 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

14. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 13 in Chapter 16 Developing Effective Marketing Communications Figure 16-2: Cost-Effectiveness of Different Promotional Tools at Different Buyer-Readiness Stages

15. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 14 in Chapter 16 Developing Effective Marketing Communications Communications Mix Selection  Types of promotional tools  Selection factors  Advertising  Sales promotion  Public relations and publicity  Direct marketing  Personal selling

16. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 15 in Chapter 16 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

17. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 16 in Chapter 16 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

18. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 17 in Chapter 16 Developing and Managing the Advertising Campaign Figure 16-3: The Five Ms of Advertising

19. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 18 in Chapter 16 Developing and Managing the Advertising Campaign RadioOutdoor Yellow Pages Newspapers Telephone Direct Mail Television Magazines Brochures Internet Newsletters Major Media Types

20. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 19 in Chapter 16 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

21. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 20 in Chapter 16 Developing and Managing the Advertising Campaign  Evaluating advertising effectiveness –Communication- effect research –Sales-effect research The Five Ms of Advertising  Mission  Money  Message  Media  Measurement

22. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 21 in Chapter 16 Developing and Managing the Advertising Campaign Figure 16-4: Formula for Measuring Sales Impact of Advertising

23. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 22 in Chapter 16 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

24. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 23 in Chapter 16 Sales Promotion  Establish objectives  Select consumer- promotion tools  Select trade-promotion tools  Select business- and sales force promotion tools  Develop the program  Pretest the program Steps in Sales Promotion Program Development  Implement and evaluate the program

25. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 24 in Chapter 16 Sales Promotion PrizesCoupons POP Displays & Demonstrations Cross-Promotions Patronage Awards Samples Product Warranties Cash Refunds Free Trials Premiums Tie-in Promotions Major Consumer Sales Promotion Tools

26. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 25 in Chapter 16 Public Relations Corporate Communications Public relations activities promote or protect the image of the firm via: Counseling Lobbying Product PublicityPublic Relations

27. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 26 in Chapter 16 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

28. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 27 in Chapter 16 Public Relations Major Public Relations Tools Public-service Activities Identity Media Sponsorships Publications Speeches Events News

29. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 28 in Chapter 16 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.

30. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 29 in Chapter 16 Direct Marketing Channels TV Marketing Major Direct Marketing Tools KioskTelemarketing Catalog Direct Mail Online Face-to-Face

31. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 30 in Chapter 16 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