1. Chapter 16 Designing and Managing Integrated Marketing Communications
PowerPoint by Yu Hongyan Business School of Jilin University

2. Objectives
Learn the major steps in developing an effective integrated marketing communications program.
Understand the steps involved in developing an advertising program.
Learn how companies can exploit the marketing potential of sales promotion, public relations, direct marketing, and e-marketing.

3. Marketing Communications
Direct Marketing
Advertising
Sales Promotion
Public Relations
Personal Selling

4. Discussion Scenario
Research has shown that many people treat their pets as they would true members of the family.
Suppose you opened a bakery that made only nutritional pet treats, doggy birthday cakes and “cheesecakes”, and made-to-order pet food. How could you use each of the previously mentioned marketing communications platforms in your business?

5. Developing Effective Marketing Communications
Steps in Marketing Communications Program Development
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

6. 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

7. Developing Effective Marketing Communications
Affective
Feelings
Emotions
Beliefs
Knowledge
Objectives
Behavioral
Cognitive
Intentions
Actions

8. Developing Effective Marketing Communications
Figure 16-1: Response Hierarchy Models

9. 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

10. Discussion Scenario
Consider the pet bakery example discussed earlier in this presentation.
What tactics would you use to make rational, emotional and/or moral appeals? Which type of appeal would you favor using and why?

11. Developing Effective Marketing Communications
Message Design
Content
Structure
Format
Source
One-sided vs. two-sided messages
Order of argument presentation

12. 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

13. 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

14. 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

15. Developing Effective Marketing Communications
Methods of Stimulating Personal Communication
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

16. Discussion Scenario
Once again, think back to the pet bakery example discussed earlier in this presentation.
What specific methods would you undertake to stimulate personal communication, and how would you go about implementation?

17. 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

18. Developing Effective Marketing Communications
Figure 16-2: Cost-Effectiveness of Different Promotional Tools at Different Buyer-Readiness Stages

19. Developing Effective Marketing Communications
Communications Mix Selection
Types of promotional tools
Selection factors
Advertising
Sales promotion
Public relations and publicity
Direct marketing
Personal selling

20. 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

21. 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

22. Developing and Managing the Advertising Campaign
Figure 16-3: The Five Ms of Advertising

23. Developing and Managing the Advertising Campaign
The Five Ms of Advertising
Mission
Money
Message
Media
Measurement
Objectives can be classified by aim:
Inform
Persuade
Remind
Reinforce

24. Developing and Managing the Advertising Campaign
The Five Ms of Advertising
Mission
Money
Message
Media
Measurement
Factors considered when budget-setting:
Stage of product life cycle
Market share and consumer base
Competition and clutter
Advertising frequency
Product substitutability

25. Developing and Managing the Advertising Campaign
The Five Ms of Advertising
Mission
Money
Message
Media
Measurement
Factors considered when choosing the advertising message:
Message generation
Message evaluation and selection
Message execution
Social responsibility review

26. Developing and Managing the Advertising Campaign
The Five Ms of Advertising
Mission
Money
Message
Media
Measurement
Developing media strategy involves:
Deciding on reach, frequency, and impact
Selecting media and vehicles
Determining media timing
Deciding on geographical media allocation

27. Developing and Managing the Advertising Campaign
Newspapers
Newsletters
Internet
Magazines
Major Media Types
Radio
Outdoor
Direct Mail
Brochures
Television
Telephone
Yellow Pages

28. Developing and Managing the Advertising Campaign
Does satellite radio threaten the future of radio advertising?

29. Developing and Managing the Advertising Campaign
Wireless technologies have recently emerged as a new media channel

30. 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

31. Developing and Managing the Advertising Campaign
The Five Ms of Advertising
Mission
Money
Message
Media
Measurement
Evaluating advertising effectiveness
Communication-effect research
Sales-effect research

32. Developing and Managing the Advertising Campaign
Figure 16-4: Formula for Measuring Sales Impact of Advertising

33. 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

34. Sales Promotion
Technology simplifies coupon redemption for online consumers

35. Steps in Sales Promotion Program Development
Establish objectives
Select consumer-promotion tools
Select trade-promotion tools
Select business- and sales force promotion tools
Develop the program
Pretest the program
Implement and evaluate the program

36. Sales Promotion Major Consumer Sales Promotion Tools Cross-Promotions
Tie-in Promotions
Major Consumer Sales
Promotion Tools
Premiums
Cash Refunds
Prizes
Coupons
Samples
Free Trials
Product Warranties
Patronage Awards
POP Displays & Demonstrations

37. Corporate Communications
Public Relations
Public relations activities promote or protect the image of the firm via:
Product Publicity
Public Relations
Counseling
Lobbying
Corporate Communications

38. 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

39. Major Public Relations Tools Public-service Activities
News
Events
Speeches
Publications
Sponsorships
Identity Media
Public-service Activities

40. 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.

41. Direct Marketing Channels
Major Direct Marketing Tools
Face-to-Face
Direct Mail
Online
Catalog
Kiosk
Telemarketing
TV Marketing

42. 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