1. Integrated Marketing Communication Strategy Chapter 15

2. 15- 1 Objectives 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 program. Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix. Push and Pull

3. 15- 2 UPS is a $31 billion corporate giant UPS wanted to reposition itself as a supply chain solutions provider Developed new ad theme based on customer input Implemented, “What Can Brown Do for You?” campaign Realigned its sales and marketing organization Ads, web sites, and salespeople deliver message daily c UPS

4. 15- 3 Definition The 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.

5. 15- 4 The Tools of Marketing Communications Mix The Tools of Marketing Communications Mix Advertising Personal Selling Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Sales Promotion Short-term Incentives to Encourage Sales. Public Relations Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity. Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response. Personal Presentations by a Firm’s Sales Force.

6. 15- 5 The Marketing Communications Environment is Changing:  Mass markets have fragmented, causing marketers to shift away from mass marketing  Media fragmentation is increasing  Improvements in information technology are facilitating segmentation Integrated Marketing Communications

7. 15- 6 The Changing Communications Environment Two Factors are Changing the Face of Today’s Marketing Communications: Improvements in Information Technology Has Led to Segmented Marketing More Narrowcasting Marketers Have Shifted Away From Mass Marketing Less Broadcasting Market Fragmentation Led to Media Fragmentation

8. 15- 7 The Need for Integrated Marketing Communications  Conflicting messages from different sources or promotional approaches can confuse company or brand images Integrated Marketing Communications

9. 15- 8 Integrated Marketing Communications* Company Carefully Integrates and Coordinates Its Many Communication Channels to Deliver a Clear, Consistent, Compelling Message. Advertising Personal Selling Personal Selling Public Relations Public Relations Sales Promotion Sales Promotion Direct Marketing Direct Marketing Packaging Event Marketing Event Marketing Message

10. 15- 9 Preselling Selling Post- Consumption Post- Consumption Consuming Marketers View Communications as the Management of the Customer Relationship Over Time Through the Following Stages: A View of the Communications Process

11. 15- 10 Figure 15-2: Elements in the Communication Process

12. 15- 11 Sellers Need to Know What Audiences They Wish to Reach and Response Desired. Sellers Need to Know What Audiences They Wish to Reach and Response Desired. Sellers Must be Good at Encoding Messages That Target Audience Can Decode. Sellers Must be Good at Encoding Messages That Target Audience Can Decode. Key Factors in Good Communication Sellers Must Send Messages Through Media that Reach Target Audiences Sellers Must Send Messages Through Media that Reach Target Audiences Sellers Must Develop Feedback Channels to Assess Audience’s Response to Messages. Sellers Must Develop Feedback Channels to Assess Audience’s Response to Messages.

13. 15- 12 Steps in Developing Communication Program* 1. Identifying the Target Audience 2. Determining the Response Sought 3. Designing a Message 4. Choosing Media 5. Selecting the Message Source 6. Collecting Feedback

14. 15- 13 Step 1. Identifying the Target Audience Step 2. Determining the Communication Objectives Buyer Readiness Stages Purchase Conviction Preference Liking Knowledge Awareness Steps in Developing Effective Communication

15. 15- 14 Step 3. Designing a Message Message Content Rational Appeals Emotional Appeals Moral Appeals Message Structure Draw Conclusions Argument Type Argument Order Message Format Headline, Illustration, Copy, & Color Body Language Steps in Developing Effective Communication

16. Designing the Message - Content Rational Appeals  appeal to audience self- interest Emotional Appeals  fear, guilt, shame, humor, joy, love, pride Moral Appeals  what is right or proper

17. Designing the Message - Structure Conclusion Drawing  negative when communicator is viewed as untrustworthy, if seen as explaining the obvious, if issue is too personal One vs. Two-sided Message  one-better with favorably predisposed, two better with well- educated, those exposed to counter propaganda Order of Presentation  primacy effect, recency effect

18. Message Format Color, Sound, Appearance, Text, Illustration Media Channels  Personal (word-of-mouth; sales person)  Impersonal (media, atmospheres, events)

19. 15- 18 Nonpersonal Communication Channels Steps in Developing Effective Communication Step 4. Choosing Media Personal Communication Channels Step 5. Selecting the Message Source Step 6. Collecting Feedback

20. Selecting the Message Source Message Source credibility important  expertise  trustworthiness  likability

21. Collecting the Feedback Feedback  awareness?  trial?  satisfaction?

22. 15- 21 Percentage- of-Sales Method Affordable Method Competitive- Parity Method Objective- and-Task Method Setting the Total Promotion Budget

23. 15- 22 Setting the Overall Promotion Mix  Determined by the nature of each promotional tool and the selected promotion mix strategy Setting the Promotional Budget and Mix Revlon emphasizes advertising while Avon emphasizes personal selling

24. 15- 23 Setting the Promotion Mix Nature of Each Promotion Tool Advertising Reaches Many Buyers, Expressive Impersonal Advertising Reaches Many Buyers, Expressive Impersonal Personal Selling Personal Interaction, Builds Relationships Costly Personal Selling Personal Interaction, Builds Relationships Costly Sales Promotion Provides Strong Incentives to Buy Short-Lived Sales Promotion Provides Strong Incentives to Buy Short-Lived Public Relations Believable, Effective, Economical Underused by Many Companies Public Relations Believable, Effective, Economical Underused by Many Companies Direct Marketing Nonpublic, Immediate, Customized, Interactive Direct Marketing Nonpublic, Immediate, Customized, Interactive

25. 15- 24 Factors in Developing Promotion Mix Strategies Push Strategy - “Pushing” the Product Through Distribution Channels to Final Consumers. Pull Strategy - Producer Directs It’s Marketing Activities Toward Final Consumers to Induce Them to Buy the Product. Type of Product/ Market Buyer/ Readiness Stage Product Life-Cycle Stage

26. 15- 25 Figure 15-4: Push vs. Pull Promotion Strategy

27. 15- 26 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 Setting the Promotional Budget and Mix