1. © 2006 by Nelson, a division of Thomson Canada Limited 12-1 11/24/2015 Slides developed by: Peter Yannopoulos Chapter 12 Integrated Marketing Communications

2. © 2006 by Nelson, a division of Thomson Canada Limited 12-2 Integrated Marketing Communications Integrated marketing communications is the coordinated use of all promotion elements to communicate a consistent and unified message about a product in a cost-efficient way

3. © 2006 by Nelson, a division of Thomson Canada Limited 12-3 Setting the Communications Budget Establishing the Communication Objectives Identifying the Target Audience Determining the Communications Mix Designing an IntegratedMarketingCommunicationsMix Designing an Integrated Marketing Communications Plan

4. © 2006 by Nelson, a division of Thomson Canada Limited 12-4 Offensive Promotion Strategy Defensive Promotion Strategy Defensive and OffensivePromotionStrategies Defensive and Offensive Promotion Strategies

5. © 2006 by Nelson, a division of Thomson Canada Limited 12-5 Setting the Communications Budget Percentage of sales Competitive parity Objective and task All-you-can afford Setting the Communications Budget

6. © 2006 by Nelson, a division of Thomson Canada Limited 12-6 Choosing Between Advertising and Personal Selling AdvertisingStrategic FactorsPersonal Selling LargeNumber of end customersSmall LowCustomer information needs for making a purchase decisionHigh LowCustomer level of involvementHigh SmallOrder sizeLarge NoProduct is technical in nature or requires demonstrationYes LowProduct unit valueHigh One pricePricing strategyFlexible IndirectChannels of distributionDirect Create awareness Promotion objectivePrompt purchase LargeAdvertising budgetSmall

7. © 2006 by Nelson, a division of Thomson Canada Limited 12-7 Relative Roles of Advertising and Sales Promotion Product Life Advertising Sales Cycle Stage Promotions Introduction High High Growth/Shakeout Differentiated brand High Low Imitative brand Low High Maturity High brand loyalty High Low Low brand loyalty Low High Decline Discontinued Low

8. © 2006 by Nelson, a division of Thomson Canada Limited 12-8 Assessing the Role of Advertising in Target Audience Response TAR = A × C × R × I × IP × B Where: TAR = percentage of target audience who will purchase the brand A = percentage of target audience who are aware of the message C= percentage of those who are aware of and correctly comprehend the message R = percentage of those who comprehend the message and actually retained it I = percentage of those who have retained the message and are interested in the brand P = percentage of those who are interested in the brand and intend to purchase it B = percentage of those who intend to purchase the brand and actually buy it

9. © 2006 by Nelson, a division of Thomson Canada Limited 12-9 Underlying Causes of Low Levels of Purchase Poor ResponseMarketing ProblemUnderlying Cause Low awareness Poor comprehension Low retention Low interest Low intention to purchase Low purchase level Marketing communications Product Product positioning Price Transaction costs Distribution In-store placement Insufficient reach Insufficient frequency Incorrect media mix Incorrect media scheduling Insufficient frequency Poor ad copy Poor message execution Insufficient frequency Insufficient consumer benefits Product lacks desirable benefits Lack of product need High price High switching costs Inadequate distribution Lack of in-store visibility

10. © 2006 by Nelson, a division of Thomson Canada Limited 12-10 Desirable Unique Believable Directed at a specific segment Criteria for EffectiveMessages Message Design – Criteria for Effective Messages Consistent

11. © 2006 by Nelson, a division of Thomson Canada Limited 12-11 Media Plan Media mix Media scheduling Media Plan Media Plan

12. © 2006 by Nelson, a division of Thomson Canada Limited 12-12 Media Scheduling Continuous PulsingFlightingBuild UpBuild Down

13. © 2006 by Nelson, a division of Thomson Canada Limited 12-13 Frequency Reach Reach and Frequency Reach and Frequency

14. © 2006 by Nelson, a division of Thomson Canada Limited 12-14 Reach Reach or coverage is the percentage of an audience’s members that are exposed to an advertisement

15. © 2006 by Nelson, a division of Thomson Canada Limited 12-15 Frequency Frequency is the average number of times the members of the audience were exposed to an ad over the broadcast period

16. © 2006 by Nelson, a division of Thomson Canada Limited 12-16 Minimum Effective Frequency Minimum effective frequency is the level of frequency at which advertising will begin to have a positive impact on the target audience

17. © 2006 by Nelson, a division of Thomson Canada Limited 12-17 Techniques for Increasing Reach Roadblock technique Multiple content program technique Scatter technique Increasing Reach

18. © 2006 by Nelson, a division of Thomson Canada Limited 12-18 Factors Influencing the Choice Between High and Low Frequency Higher Frequency FactorLower Frequency HighDegree of ad clutter in the chosen media Low LimitedMedium ability to hold audience interest Extensive HighMessage complexityLow Brand loyaltyHigh LowAudience involvementHigh StrongCompetitionWeak ShortPurchase cycleLong

19. © 2006 by Nelson, a division of Thomson Canada Limited 12-19 Measuring Advertising Effectiveness Pre-testing research Post-testing research Measuring Ad Effectiveness

20. © 2006 by Nelson, a division of Thomson Canada Limited 12-20 Skin resistance Facial expressions Eye movement tracking devices Focus groups Pre-testingresearchmethods Pre-testing Research Methods Muscle movement Voice pitch

21. © 2006 by Nelson, a division of Thomson Canada Limited 12-21 Number of inquiries Number of hits Brand recall Ad recall or recognition Post-testingresearchmethods Post-testing Research Methods

22. © 2006 by Nelson, a division of Thomson Canada Limited 12-22 Setting sales force objectives Structuring the sales force Sales force size Recruitment Sales Force Management Training and developing the sales force Sales force evaluation & control Compensating the sales force

23. © 2006 by Nelson, a division of Thomson Canada Limited 12-23 Setting Sales Force Objectives In addition to the overall sales plans, sales managers and salespeople normally set specific objectives to be achieved by a salesperson Sales objectives must be motivational, measurable, realistic, and understandable In addition to the overall sales plans, sales managers and salespeople normally set specific objectives to be achieved by a salesperson Sales objectives must be motivational, measurable, realistic, and understandable

24. © 2006 by Nelson, a division of Thomson Canada Limited 12-24 Market structure Complex structure Product structure Territorial structure Structuring the Sales Force Structuring the Sale Force

25. © 2006 by Nelson, a division of Thomson Canada Limited 12-25 Incremental method Work load method Sales potential method SalesForceSize Sale Force Size

26. © 2006 by Nelson, a division of Thomson Canada Limited 12-26 Combinations salary and commission Straight commission Straight salary SalesForceCompensation Compensating the Sales Force

27. © 2006 by Nelson, a division of Thomson Canada Limited 12-27 Sales Promotions Consumer promotions Trade promotions Retailer promotions Sales Promotions

28. © 2006 by Nelson, a division of Thomson Canada Limited 12-28 Advantages of Sales Promotions Create an urgency to purchase product Reward loyal customers Encourage repeat buying Encourage competitor customers to switch Break customer loyalty to competing brands Counteract competitive activity

29. © 2006 by Nelson, a division of Thomson Canada Limited 12-29 Disadvantages of Sales Promotions Short-term impact Increase price sensitivity Decrease brand loyalty Forward buying Diversion Invite competitive retaliation They have become less effective

30. © 2006 by Nelson, a division of Thomson Canada Limited 12-30 Evaluation of Sales Promotion Effectiveness Compare sales or market share before and after a sales promotion campaign Use scanner data

31. © 2006 by Nelson, a division of Thomson Canada Limited 12-31 Public relations is concerned with building a favourable long-term image for the organization through a variety of activities such as financial support of social causes, corporate publications, and other events Public Relations

32. © 2006 by Nelson, a division of Thomson Canada Limited 12-32 Publicity is part of public relations and it seeks to obtain favourable short-term press coverage for the organization Publicity

33. © 2006 by Nelson, a division of Thomson Canada Limited 12-33 Event marketing Other forms of gaining publicity Press conferences Press releases Methods of Gaining Publicity Publicity Methods of Gaining Publicity