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. Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.

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 What Can Brown Do for YouWhat Can Brown Do for You Realigned its sales and marketing organization AdsAds, web sites, and salespeople deliver message daily Ads 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 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

6. 15- 5 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 Integrated Marketing Communications Communications

7. 15- 6 The Need for Integrated Marketing Communications  The Web alone cannot be used to build brands; brand awareness potential is limited alone  Best bet is to wed traditional branding efforts with the interactivity and service capabilities of online communications  Web efforts can enhance relationships Integrated Marketing Communications

8. 15- 7 Figure 15-1: Integrated Marketing Communications

9. 15- 8 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.  IMC implementation often requires the hiring of a MarCom manager Integrated Marketing Communications

10. 15- 9 Saturn’s advertising program is integrated with sales efforts and website communications

11. 15- 10 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 potential Effective communication requires knowledge of how communication works The Communication Process

12. 15- 11 Figure 15-2: ElementsElements in the Communication Process

13. 15- 12 Step 1: Identifying the Target Audience Target  Affects decisions related to what, how, when, and where message will be said, as well as who will say it Developing Effective Communication

14. 15- 13 Step 2: Determining Communication Objectives  Objectives may be set to move buyers through the six readiness stages Developing Effective Communication

15. 15- 14 Figure 15-3: Buyer-Readiness Stage

16. 15- 15 Which buyer-readiness stages do these ads appeal to?

17. 15- 16 Step 3: Designing a Message  AIDA framework guides message design  Message content  Rational  Emotional appeals: fear, humor, guilt, shame, love  Moral appeals Developing Effective Communication

18. 15- 17 Humor has long been used in the marketing of soft drinks and beer. These ads use humor to attract attention and invoke curiosity.

19. 15- 18 Step 3: Designing a Message  Message structure  Draw a conclusion?  One-sided or two-sided?  Strongest arguments presented first or last?  Message format  Novelty, contrast, and more Developing Effective Communication

20. 15- 19 Contrast, novelty, and creative implementations such as pop- up ads or scratch n’ sniff ads are examples of message formats that successfully attract attention. What are some other examples of successful message formats that use novelty and creativity to attract attention and deliver their message? Discussion Question

21. 15- 20 Step 4: Choosing Media  Personal vs. nonpersonal communication channels Developing Effective Communication

22. 15- 21 Step 4: Choosing Media  Personal communication channels  Includes face-to-face, phone, mail, and Internet chat communications  Word-of-mouth influence is often critical Word-of-mouthcriticalWord-of-mouthcritical  Buzz marketing cultivates opinion leaders marketing  Nonpersonal communication channels  Includes media, atmosphere, and events Developing Effective Communication

23. 15- 22 Step 5: Selecting the Message Source  Highly credible sources are more persuasive  A poor choice of spokesperson can tarnish a brand Developing Effective Communication

24. 15- 23 Step 6: Collecting Feedback  Recognition, recall, and behavioral measures are assessed  May suggest changes in product/promotion Developing Effective Communication

25. 15- 24 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 Setting the Promotional Budget and Mix

26. 15- 25 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 Setting the Promotional Budget and Mix

27. 15- 26 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

28. 15- 27 Setting the Promotional Budget and 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 Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Nature of Each Promotional Tool

29. 15- 28 Setting the Promotional Budget and 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 Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Nature of Each Promotional Tool

30. 15- 29 Setting the Promotional Budget and Mix May be targeted at the trade or ultimate consumer 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 Nature of Each Promotional Tool

31. 15- 30 Setting the Promotional Budget and Mix 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 Nature of Each Promotional Tool

32. 15- 31 Setting the Promotional Budget and Mix Many forms: Telephone marketing, direct mail, online marketing, etc. Four characteristics:  Nonpublic  Immediate  Customized  Interactive Well-suited to highly targeted marketing efforts Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Nature of Each Promotional Tool

33. 15- 32 Figure 15-4: Push vs. Pull Promotion Strategy

34. 15- 33 Promotion Mix Strategies  Push strategy: trade promotions and personal selling efforts push the product through the distribution channels.  Pull strategy: producers use advertising and consumer sales promotions to generate strong consumer demand for products. Setting the Promotional Budget and Mix

35. 15- 34 Have you noticed TV ads for prescription drugs? Pharmaceutical firms are now using pull-oriented marketing techniques. Does such a strategy help patients or does it interfere with the doctor- patient relationship? Discussion Question

36. 15- 35 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

37. 15- 36 Advertising and Sales Promotion  Avoid false and deceptive advertising  Bait and switch advertising  Trade promotions can not favor certain customers over others  Use advertising to promote socially responsible programs and actions Socially Responsible Communications

38. 15- 37 Social and Environmental Cause Advertising Government: Public Service Announcements- Education, Health, Community Non-profit: Lobbying for $$$ or other support for their cause Warning: often very unsettling or mildly disturbing

39. 15- 38 Clean Drinking Water

40. 15- 39 Landmines

41. 15- 40 Pakastani Earthquake Victims

42. 15- 41 Violence Against Women

43. 15- 42 Human Rights “It’s not happening here, but it is happening now.”

44. 15- 43

45. 15- 44 Darfur Voices from Darfur Voices from Darfur Testimonials

46. 15- 45 Extreme Poverty ONE campaign ONE campaign

47. 15- 46 Oil Addiction and Global Warming Greenpeace Global Warming Global Warming

48. 15- 47 Ad Council: PSAs ad council: Blue Sky ad council: Blue Sky Fruit

49. 15- 48 State Farm uses advertising to promote socially responsible programs and actions.

50. 15- 49 Personal Selling  Salespeople must follow the rules of “fair competition”  Three day cooling- off rule protects ultimate consumers from high pressure tactics Socially Responsible Communications

51. 15- 50 Personal Selling  Business-to-business selling  Bribery, industrial espionage, and making false and disparaging statements about a competitor are forbidden Socially Responsible Communications