campaign planning & imc

What are Marketing Communications?

Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers, directly or

indirectly, about the products and brands they sell.

MARKETER INITIATED TECHNIQUES USED TO SET UP CHANNELS OF INFORMATION AND PERSUASION WITH

TARGETED AUDIENCES TO INFLUENCE

ATTITUDES AND BEHAVIOR

MAJOR OBJECTIVES OF MARKETING COMMUNICATIONS

InformingInforming PersuadingPersuading

RemindingReminding

MARKETING COMMUNICATIONS OBJECTIVES

• Increase Market Penetration• Develop Repeat Purchase Behavior• Establish Customer Relationships• Increase Rate of Consumption• Encourage Product Trial• Stimulate Impulse Buying• Stimulate Demand• Differentiate the Product• Establish a Product Image• Influence Sales Volume• Establish, Modify, or Reinforce Attitudes• Develop Sales Leads• Stimulate Interest• Establish Understanding• Build Support & Acceptance

ELEMENTS OF THE MARKETING COMMUNICATIONS MIX

1. Advertising1. Advertising

2. Public Relations2. Public Relations5. Direct Marketing5. Direct Marketing

3. SalesPromotion3. Sales

Promotion4. Personal Selling 4. Personal Selling

Integrated Marketing Communications (IMC) is the strategic integration of multiple means of

communicating with target markets

MARKETING COMMUNICATIONS PLANNING

Marketing Plan ReviewMarketing Plan Review

Situation AnalysisSituation Analysis

Communications ProcessAnalysis

Communications ProcessAnalysis

Budget DevelopmentBudget Development

Program DevelopmentProgram Development

Integration & ImplementationIntegration & Implementation

Monitoring, Evaluating, Controlling

Monitoring, Evaluating, Controlling

METHODS

PUSH vs.PULL

Push and Pull Strategies

• Push strategy is directed toward the channel members• Provide incentives for those in the

distribution channels to buy the product

• Pull strategy is directed toward the ultimate purchaser• The focus is on creating demand at the

household or ultimate consumer level

Modes of Marketing Communications

• Advertising• Sales promotion• Events and

experiences• Public relations and

publicity

• Direct marketing• Interactive

marketing• Word-of-mouth

marketing• Personal selling

Communication Platforms

Advertising• Print and broadcast ads• Packaging inserts• Motion pictures• Brochures and booklets• Posters• Billboards• POP displays• Logos• Videotapes

Sales Promotion• Contests, games,

sweepstakes• Premiums• Sampling• Trade shows, exhibits• Coupons• Rebates• Entertainment• Continuity programs


Events/ Experiences

• Sports• Entertainment• Festivals• Arts• Causes• Factory tours• Company museums• Street activities

Public Relations• Press kits• Speeches• Seminars• Annual reports• Charitable donations• Publications• Community relations• Lobbying• Identity media• Company magazine


Personal Selling• Sales presentations• Sales meetings• Incentive programs• Samples• Fairs and trade shows

Direct Marketing• Catalogs• Mailings• Telemarketing• Electronic shopping• TV shopping• Fax mail• E-mail• Voice mail• Blogs• Websites

Word-of-Mouth Marketing

• Person-to-person• Chat rooms• Blogs

Elements in the Communications Process

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 17-14

Coordinating Media to Build Brand Equity

Brand Signature

Media Interactions

Ad Retrieval

Cues

Marketing Discussion

Pick a brand and go to the Website.Locate as many forms ofcommunication as you can find.

Conduct an informal communicationsaudit. What do you notice? Howconsistent are the differentcommunications?

integrated marketing communication

(IMC) is the philosophy that every element of a marketing campaign should

mesh perfectly with every other element, and that all verbal and nonverbal messages a company sends to the marketplace must be consistent. From advertising, to promotions, to prices and public relations, every element must send the same message to consumers, developing a singular brand image for your company and products.

Integrated Marketing Communications

• The Marketing Communications Environment is Changing:• Mass markets have fragmented, causing

marketers to shift away from mass marketing to target marketing

• Improvements in information technology are facilitating segmentation

• Media fragmentation has occurred with companies doing less broadcasting and more narrowcasting

Goal 1: Know the tools of the marketing communications mix


• 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



• The Need for Integrated Marketing Communications• The Internet must be integrated into the

broader IMC mix• Best bet is to wed traditional branding

efforts with the interactivity and service capabilities of online communications


Traditional CompensationTraditional Compensation Performance Based Compensation Performance Based Compensation Traditional CompensationTraditional Compensation Performance Based Compensation Performance Based Compensation

Media AdvertisingMedia Advertising Multiple Forms of CommunicationMultiple Forms of Communication

Mass MediaMass Media Specialized MediaSpecialized Media

Manufacturer DominanceManufacturer Dominance Retailer DominanceRetailer Dominance

General FocusGeneral Focus Data Based MarketingData Based Marketing

Low Agency AccountabilityLow Agency Accountability Greater Agency AccountabilityGreater Agency Accountability

Limited Internet AvailabilityLimited Internet Availability Widespread Internet AvailabilityWidespread Internet Availability

Media AdvertisingMedia Advertising Multiple Forms of CommunicationMultiple Forms of Communication

Mass MediaMass Media Specialized MediaSpecialized Media

Manufacturer DominanceManufacturer Dominance Retailer DominanceRetailer Dominance

General FocusGeneral Focus Data Based MarketingData Based Marketing

Low Agency AccountabilityLow Agency Accountability Greater Agency AccountabilityGreater Agency Accountability

Marketing Revolution and Shifting Tides

From Toward

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


• 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–Audience Contact Points

Marketing Communications Audience

Marketing Communications Audience

Point of PurchasePoint of Purchase PublicityPublicity Public

RelationsPublic Relations PackagingPackaging

DirectResponseDirectResponse

Sales PromotionSales Promotion

EventsEventsOutdoorOutdoorBroadcast MediaBroadcast MediaPrint MediaPrint Media

Direct MailDirect Mail

Internet/InteractiveMedia

Internet/InteractiveMedia


Point ofPurchase

Publicity

PublicRelations

DirectMarketing

InteractiveMarketing

SpecialEvents

Packaging

SalesPromotion

DirectResponse

Traditional Approach to Marketing Communications

MediaAdver-tising


Contemporary IMC Approach

Point ofPurchase

Publicity

InteractiveMarketing

PublicRelations

DirectMarketing

SpecialEvents

PackagingSalesPromotion

DirectResponse

MediaAdver-tising


IMC and Branding

Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.

Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.

2003 Brand Value(Billions of Dollars)

1. Coca-Cola

$70.5

2. Microsoft

$65.1

3. IBM$51.8

4. GE $42.3

5. Intel

$31.1

6. Nokia

$29.4

7. Disney

$28.0

8. McDonald’s

$24.7

9. Marlboro

$22.2

10. Mercedes

$21.4

IMC plays a major role in the process of developing and sustaining brand identity and equity.

IMC plays a major role in the process of developing and sustaining brand identity and equity.


IMC Builds Brands

Socially Responsible Communications

• Advertising and Sales Promotion• Avoid false and deceptive advertising• No bait-and-switch advertising• Trade promotions can not favor certain

customers over others• Use advertising to promote socially

responsible programs and actions

Goal 4: Understand methods for setting budgets and designing the mix

Socially Responsible Communications

• Personal Selling• Salespeople must follow the rules of “fair

competition”• Business-to-business selling

• Bribery, industrial espionage, and making false and disparaging statements about a competitor are forbidden

Goal 4: Understand methods for setting budgets and designing the mix

Product DevelopmentA commitment to IMC begins in the product development phase. Design the products to fit the image that have been conceived for them, and be honest in marketing communications in order to send a consistent message.

If you plan to focus on cost-leadership in your marketing campaigns, for example, design your products to use low-cost, reusable components and try to reduce the amount of materials used for each unit.

AdvertisingCreate advertisements to be true to products. If the products do not live up to the claims the company wishes to make of them, either go back to the product development drawing board or change marketing messages.

Do not let customers be discouraged when products do not live up to advertising hype.

Stages of Integrated Marketing Communication

PromotionsThe sales promotions should fit in line with the image of the company, products or brands. Do not offer coupons for products developed to high-quality standards with advertisements focused on luxury, for example, but make sure you always offer coupons for value-shopper brands.

Pricing and PackagingIt can be easy to assume that pricing and packaging have nothing to do with communication, but these crucial elements convey a wealth of subconscious and nonverbal information to consumers.

If you price your value brands too low, for example, you may run the risk of customers assuming your quality is lower than it really is.

If you use too much non-biodegradable packaging for eco-friendly brands, as another example, your actions may contradict your words.

Stages of Integrated Marketing Communication

Other Business Functions

The marketing function is not the only component of a business that sends messages to the public.

A commitment to IMC requires you to keep all other business functions in line with your marketing messages, as well.

If you proudly display the fact that your company sponsors human-rights organizations on packaging and in advertisements, for example, you must have a commitment to fair human resources practices and strict human rights requirements for foreign suppliers.

Everything you do, from accounting, to human resources to investment spending, has to send the same message about your company and brands as your marketing strategies.

Benefits of IMC

Although Integrated Marketing Communications requires a lot of effort it delivers many benefits.

It can create competitive advantage, boost sales and profits, while saving money, time and stress.

IMC wraps communications around customers and helps them move through the various stages of the buying process. The organisation simultaneously consolidates its image, develops a dialogue and nurtures its relationship with customers.

This 'Relationship Marketing' cements a bond of loyalty with customers which can protect them from the inevitable onslaught of competition. The ability to keep a customer for life is a powerful competitive advantage.

IMC also increases profits through increased effectiveness. At its most basic level, a unified message has more impact than a disjointed myriad of messages. In a busy world, a consistent, consolidated and crystal clear message has a better chance of cutting through the 'noise' of over five hundred commercial messages which bombard customers each and every day.

At another level, initial research suggests that images shared in advertising and direct mail boost both advertising awareness and mail shot responses. So IMC can boost sales by stretching messages across several communications tools to create more avenues for customers to become aware, aroused, and ultimately, to make a purchase

Carefully linked messages also help buyers by giving timely reminders, updated information and special offers which, when presented in a planned sequence, help them move comfortably through the stages of their buying process... and this reduces their 'misery of choice' in a complex and busy world.

IMC also makes messages more consistent and therefore more credible. This reduces risk in the mind of the buyer which, in turn, shortens the search process and helps to dictate the outcome of brand comparisons.

Un-integrated communications send disjointed messages which dilute the impact of the message. This may also confuse, frustrate and arouse anxiety in customers. On the other hand, integrated communications present a reassuring sense of order.

Here, customer databases can identify precisely which customers need what information when... and throughout their whole buying life.

Finally, IMC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature. Agency fees are reduced by using a single agency for all communications and even if there are several agencies, time is saved when meetings bring all the agencies together - for briefings, creative sessions, tactical or strategic planning. This reduces workload and subsequent stress levels - one of the many benefits of IMC.

Barriers to IMC

Despite its many benefits, Integrated Marketing Communications, or IMC, has many barriers.

In addition to the usual resistance to change and the special problems of communicating with a wide variety of target audiences, there are many other obstacles which restrict IMC. These include: Functional Silos; Stifled Creativity; Time Scale Conflicts and a lack of Management know-how.

Take functional silos. Rigid organisational structures are infested with managers who protect both their budgets and their power base.

Sadly, some organisational structures isolate communications, data, and even managers from each other. For example the PR department often doesn't report to marketing. The sales force rarely meet the advertising or sales promotion people and so on. Imagine what can happen when sales reps are not told about a new promotional offer!

And all of this can be aggravated by turf wars or internal power battles where specific managers resist having some of their decisions (and budgets) determined or even influenced by someone from another department.

Here are two difficult questions - What should a truly integrated marketing department look like? And how will it affect creativity?

It shouldn't matter whose creative idea it is, but often, it does. An advertising agency may not be so enthusiastic about developing a creative idea generated by, say, a PR or a direct marketing consultant.

IMC can restrict creativity. No more wild and wacky sales promotions unless they fit into the overall marketing communications strategy. The joy of rampant creativity may be stifled, but the creative challenge may be greater and ultimately more satisfying when operating within a tighter, integrated, creative brief.

Time Horizons provide one more barrier to IMC. For example, image advertising, designed to nurture the brand over the longer term, may conflict with shorter term advertising or sales promotions designed to boost quarterly sales. However the two objectives can be accommodated within an overall IMC if carefully planned.

. There is a proliferation of single discipline agencies. There appear to be very few people who have real experience of all the marketing communications disciplines. This lack of know how is then compounded by a lack of commitment.

Campaign Planning AndFashion Promotion

DEVELOPING AN ADVERTISING CAMPAIGN

EvaluateAdvertisingEffective-

ness

Select &Schedule

Media

DetermineAdvertising

Budget

DetermineAdvertisingObjectives

SelectTargetMarket

DesignCreativeStrategy

An Ideal Ad Campaign

• The right consumer is exposed to the message at the right time and place

• The ad causes consumer to pay attention

• The ad reflects consumer’s level of understanding and behaviors with product

• The ad correctly positions brand in terms of points-of-difference and points-of-parity

• The ad motivates consumers to consider purchase of the brand• The ad creates strong brand associations

ADVERTISING STRATEGYADVERTISING STRATEGY

• MESSAGE STRATEGIESObjective vs. Subjective MessagesComparative Message TechniquesEmotional Techniques: Mood, Fear, HumorCelebrity Endorsements vs. Non-Celebrity Images

• MEDIA STRATEGIESBroadcast: Television, RadioPrint: Newspapers, Magazines, JournalsSpecialized: Outdoor, Transit, Direct Mail, Internet

• MESSAGE STRATEGIESObjective vs. Subjective MessagesComparative Message TechniquesEmotional Techniques: Mood, Fear, HumorCelebrity Endorsements vs. Non-Celebrity Images

• MEDIA STRATEGIESBroadcast: Television, RadioPrint: Newspapers, Magazines, JournalsSpecialized: Outdoor, Transit, Direct Mail, Internet

ADVERTISING STRATEGYADVERTISING STRATEGY

• RELATIVE STRENGTHS AND WEAKNESSES OF STRATEGIESEffectiveness and Efficiency: Reach and

FrequencyTarget CapabilitiesCostBelievabilityAppropriateness for Message (Image, Details)

• RELATIVE STRENGTHS AND WEAKNESSES OF STRATEGIESEffectiveness and Efficiency: Reach and

FrequencyTarget CapabilitiesCostBelievabilityAppropriateness for Message (Image, Details)

Reach & Frequency

• Reach: number of different target consumers who are exposed to a message at least once during a specific period of time

• Frequency: number of times an individual is exposed to a given message during a specific period of time

• Cost per contact: cost of reaching one member of the target market• Allows comparison across advertising strategy

vehicles

EVALUATING ADVERTISING EFFECTIVENESS

PretestingPretesting

PosttestingPosttesting

Sales EffectivenessEvaluations

Sales EffectivenessEvaluations

Tools:•Focus Groups•Screening•Persuasion Scores

Tools:•Unaided Recall Tests•Aided Recall Tests•Inquiry Evaluations

Tools:•Monitor Sales

PUBLIC RELATIONS

Press RelationsPress

Relations

Product PromotionsProduct

PromotionsAdvising

ManagementAdvising

Management

CorporateCommunications

CorporateCommunicationsLobbying Lobbying

Public Relations Functions

Personal Selling

• PERSONAL SELLING• Oral presentation in a conversation with one or more

prospective purchasers for the purpose of making a sale

• Personal Selling is:Flexible, Focused (personalized), and Often results directly in a sale

• Other promotional elements move the customer toward the sale, personal selling closes the sale

STEPS IN THE SELLING PROCESS: A RELATIONSHIP APPROACH

STEPS IN THE SELLING PROCESS: A RELATIONSHIP APPROACH

• INITIATING RELATIONSHIPSProspectingPre-Call PlanningApproach

• DEVELOPING CUSTOMER RELATIONSHIPSSales Communications and PresentationsGaining and Managing Commitment

• ENHANCING CUSTOMER RELATIONSHIPSFollow-UpSupport

• TRADITIONAL vs. RELATIONSHIP APPROACHES• Manipulative (product-focused) vs Consultative (needs-satisfaction)

• INITIATING RELATIONSHIPSProspectingPre-Call PlanningApproach

• DEVELOPING CUSTOMER RELATIONSHIPSSales Communications and PresentationsGaining and Managing Commitment

• ENHANCING CUSTOMER RELATIONSHIPSFollow-UpSupport

• TRADITIONAL vs. RELATIONSHIP APPROACHES• Manipulative (product-focused) vs Consultative (needs-satisfaction)

SALES MANAGEMENT ISSUESSALES MANAGEMENT ISSUES

• RECRUITING AND HIRINGDifficult to Predict Success

• DEPLOYMENTTerritory Design

• AUTOMATIONUse of Technology to Link Buyer, Salesperson, and

Organizations (Customer Relationship Management and Supply Chain Management)

• EVALUATION AND COMPENSATIONOutcome-Based vs. Behavior-Based

• RECRUITING AND HIRINGDifficult to Predict Success

• DEPLOYMENTTerritory Design

• AUTOMATIONUse of Technology to Link Buyer, Salesperson, and

Organizations (Customer Relationship Management and Supply Chain Management)

• EVALUATION AND COMPENSATIONOutcome-Based vs. Behavior-Based

Sales Promotion

• SALES PROMOTION• Those marketing activities - other than

advertising, public relations/publicity, and personal selling - that stimulate consumer purchasing and dealer effectiveness• Displays, shows and exhibitions,

coupons, contests, samples

• Consumer-oriented

• [For end-users]

• Trade-oriented• [For resellers]

Sales Promotion Tools

EventsEvents

Loyalty ProgramsLoyalty Programs

Bonus Packs Bonus Packs

Refunds/Rebates Refunds/Rebates

Contests/SweepstakesContests/Sweepstakes

PremiumsPremiums

SamplesSamples

CouponsCoupons

CoopAdvertisingCoopAdvertising

TradeShowsTradeShows

TrainingProgramsTrainingPrograms

POP DisplaysPOP Displays

TradeAllowances


StimulateTrial

StimulateTrial

SupportFlexible Pricing

SupportFlexible Pricing

IncreaseConsumption

IncreaseConsumption

NeutralizeCompetitorsNeutralize

Competitors

ComplementaryProducts

ComplementaryProducts

EncourageRepurchaseEncourage

Repurchase

ImpulsePurchasing

ImpulsePurchasing

OBJECTIVES OF CONSUMER PROMOTIONS

CONSUMER SALES PROMOTION TECHNIQUES

Price Deals

AdvertisingSpecialties Coupons

Sampling Rebates

Contests, Games,Sweepstakes

Premiums Cross-Promotions

OBJECTIVES OF TRADE PROMOTIONS

Increase ResellerInventory

InfluencePrice Discount

Defend AgainstCompetitors

Avoid PriceReductions

InfluenceReseller Promotion

Gain/MaintainDistribution

Increase ResellerInventory

InfluencePrice Discount

Defend AgainstCompetitors

Avoid PriceReductions

InfluenceReseller Promotion

Gain/MaintainDistribution

LIMITATIONS OF SALES PROMOTION

Cannot Reverse Declining Sales Trend

Cannot Reverse Declining Sales Trend

Cannot Overcome Inferior Product

Cannot Overcome Inferior Product

May Encourage Competitive Retaliation

May Encourage Competitive Retaliation

May Hurt ProfitMay Hurt Profit

Direct Marketing

• Techniques used to get consumers to make a purchase from their home, office or other nonretail setting• Direct mail, catalogs, mail order,

telemarketing, electronic retailing

TECHNIQUES OF DIRECT MARKETING

ElectronicMedia

ElectronicMedia

Direct SellingDirect Selling

PrintMedia

PrintMedia

BroadcastMedia

BroadcastMedia

Direct MailDirect Mail

TelemarketingTelemarketing

CataloguesCatalogues

Builds and Maintains Customer Relationships

Builds and Maintains Customer Relationships

Obtains Customer Database Information


Communicates and Interacts With Buyers


Provides Customer Service and Support


Educates or Informs Customers


A Persuasive Advertising Medium


A Sales Tool or an Actual Sales Vehicle














Using the Internet as an IMC Tool

TheInternetTheInternet


Introduce New ProductsIntroduce New Products

Get Existing Customers to Buy More


Attract New Customers


Maintain Sales In Off Season


Increase Retail Inventories


Tie In Advertising & Personal SellingTie In Advertising & Personal Selling

Enhance Personal Selling


Combat Competition

Combat Competition

Introduce New ProductsIntroduce New Products









Tie In Advertising & Personal SellingTie In Advertising & Personal Selling



Various Uses of Sales Promotion

SalesPromotionSalesPromotion


Advertising Versus Publicity

AdvertisingAdvertising PublicityPublicity

TentativeTentative

LowLow

Low/Unspecified Low/Unspecified

Uncontrollable Uncontrollable

GreatGreat

LowerLower

Measurable Measurable

SchedulableSchedulable

High/Specific High/Specific

HighHigh

SpecifiableSpecifiable

UndeterminedUndetermined

HigherHigher

LittleLittle

FactorFactor

ControlControl

CredibilityCredibility

ReachReach

FrequencyFrequency

CostCost

FlexibilityFlexibility

TimingTiming


InterviewsInterviewsInterviews Interviews

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

PressConferences

PressConferences

NewsReleasesNewsReleases

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

NewsReleasesNewsReleases

Publicity Vehicles

PublicityVehiclesPublicityVehicles


Corporate AdvertisingCorporate Advertising

Cause-related MarketingCause-related Marketing

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

Special EventSponsorship

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

Public Relations Tools


Integrated Marketing Communications Planning Model

Promotional Program Situation Analysis

Analysis of the Communications Process

Budget Determination

Develop Integrated Marketing Communications Programs

Review of Marketing Plan

AdvertisingSalesPromotion

PR/Publicity

PersonalSelling

DirectMarketing

AdvertisingObjectives

SalesPromotionObjectives

PR/PublicityObjectives

PersonalSellingObjectives

DirectMarketingObjectives

MessageStrategy

SalesPromotionStrategy

PR/PublicityStrategy

PersonalSellingStrategy

DirectMarketingStrategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

Internet/Interactive

Internet/InteractiveObjectives

Internet/InteractiveStrategy


1. A detailed situation analysis1. A detailed situation analysis

2. Specific marketing objectives2. Specific marketing objectives

3. A marketing strategy and program3. A marketing strategy and program

4. A program for implementing the strategy4. A program for implementing the strategy

5. A process for monitoring and evaluating performance5. A process for monitoring and evaluating performance

1. A detailed situation analysis1. A detailed situation analysis

3. A marketing strategy and program3. A marketing strategy and program

4. A program for implementing the strategy4. A program for implementing the strategy

2. Specific marketing objectives2. Specific marketing objectives

The Marketing Plan


Steps in Developing Effective Communications

Identify target audience

Determine objectives

Design communications

Select channels

Establish budget

Decide on media mix

Measure results/ manage IMC

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


• 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

AIDA and the Promotional Mix

AwarenessAwarenessAwarenessAwareness InterestInterestInterestInterest DesireDesireDesireDesire ActionActionActionAction

AdvertisingAdvertisingVeryeffective

Veryeffective

Somewhateffective

NoteffectiveNoteffective

PublicPublicRelationsRelationsPublicPublicRelationsRelations

VeryeffectiveVeryeffective



NoteffectiveNoteffective

SalesSalesPromotionPromotion

Somewhateffective

Somewhateffective

Veryeffective


PersonalPersonalSellingSelling

Somewhateffective

Veryeffective

Veryeffective

SomewhateffectiveSomewhateffective

Response Hierarchy Models


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

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 17-68

Creative Strategy

• Informational and transformational appeals• Positive and negative appeals

• Fear• Guilt• Shame• Humor• Love• Pride• Joy


Message Design

• Content

• Structure

• Format

• Source

• One-sided vs. two-sided messages

• Order of argument presentation


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


Message Design

• Content

• Structure

• Format

• Source

• Message source characteristics can influence attention and recall

• Factors underlying perceptions of source credibility:• Expertise• Trustworthiness• Likability

Message Source

Celebrity Characteristics• Expertise• Trustworthiness• Likeability


• 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


• 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

Select Communication Channels

• Personal channels

• Nonpersonal channels

• Integration of channels

Personal Communications Channels

Advocate channels

Expert channels

Social channels

Nonpersonal Communication Channels

Media

Sales Promotion

Events and Experiences

Public Relations


• 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

Establish the Budget

Affordable

Percentage-of-Sales

Competitive Parity

Objective-and-Task

Approaches to Determining the Promotional Budget

• Percentage of sales• A fixed amount of money per past or projected

sales• Probably the most widely used as it is simple• But, what about cause and effect?

• All available funds/All you can afford• Budget what is left over for promotional

expenditures• New companies often put all available funds into

promotion to penetrate the market• But, you can miss opportunities or overspend

Approaches to Determining the Promotional Budget

• Competitive parity/Follow the competition• Adopt the average ratio for promotional expenses

to sales for the industry or main competitor; or the same absolute amount as a competitor

• But, what if they do not know what they are doing and/or strategies and tactics are different?

• Objective and task• 1) Determine objectives; 2) Determine relationship

between expenditures and ability to achieve objective; 3) Set a budget that allows the achievement of these goals


Communications Mix Selection

• Types of promotional tools

• Selection factors

• Advertising• Sales promotion• Public relations and

publicity• Direct marketing• Personal selling

Characteristics of The Marketing Communications Mix

Advertising• Pervasiveness• Amplified

expressiveness• Impersonality

Sales Promotion• Communication• Incentive• Invitation

Characteristics of the Marketing Communications Mix

Public Relations and Publicity

• High credibility• Ability to catch

buyers off guard• Dramatization

Events and Experiences

• Relevant• Involving• Implicit

Characteristics of the Marketing Communications Mix

Direct Marketing• Customized• Up-to-date• Interactive

Personal Selling• Personal interaction• Cultivation• Response

Word-of-Mouth Marketing• Credible• Personal• Timely


Communications Mix Selection

• Types of promotional tools

• Selection factors

• Stage of buyer readiness

• Stage of product life cycle

Factors Affecting the Promotional Mix

Nature of ProductNature of Product

Stage in PLCStage in PLC

Target Market FactorsTarget Market Factors

Type of Buying DecisionType of Buying Decision

Promotion FundsPromotion Funds

Push or Pull StrategyPush or Pull Strategy

Factors Factors AffectingAffectingChoice of Choice of Promotional MixPromotional Mix

Factors Factors AffectingAffectingChoice of Choice of Promotional MixPromotional Mix

Buyer Readiness StageBuyer Readiness Stage

Consumer vs. business market

THE MARKETING-COMMUNICATIONS MIX:Relative Emphasis in Consumer and Business Markets

BUSINESS MARKETS CONSUMER MARKETS

SALESFORCE

SALESFORCE

ADVERTISINGPROMOTIONSDIRECT MKT.

ADVERTISINGPROMOTIONSDIRECT MKT.

EMPHASIS EMPHASIS

COMPLEMENT

Nature of the Product

• Product characteristics • Business product vs. consumer product

• Costs and risks

• Social risk

Factors that influence promotional mixFactors that influence promotional mix

Selection of the Promotional Mix

• PRODUCT CHARACTERISTICS• Industrial good/technical good

• Need personal selling; customers want to receive information, inspect and compare the products

• Consumer package goods/frequently purchase items

• Advertising and sales promotion to reach market• Unit value

• Low cost must use mass media approaches, with high unit cost personal selling is effective

• Customization• Customized often requires personal selling

Stage in the Product Life Cycle

TimeTime

IntroductionIntroduction GrowthGrowth

MaturityMaturity

DeclineDecline

Sal

es (

$)S

ales

($)

Product Life Cycle and thePromotional Mix

Light Advertising, pre-introductionPublicity

Heavy use of advertising,PR forawareness;sales promotionfor trial

AD/PRdecreaseLimited Sales Promotion, Personal Selling fordistribution

Ads decrease.Sales Promotion,Personal SellingReminder & Persuasive

Advertising, PR, BrandloyaltyPersonal Selling fordistribution

IntroductionIntroduction GrowthGrowth

MaturityMaturityDeclineDecline

Sal

es (

$)S

ales

($)

TimeTime

Target Market Characteristics

FOR:

• Widely scattered market

• Informed buyers

• Repeat buyersAdvertising

Sales Promotion

Less Personal Selling

Selection of the Promotional Mix

• CUSTOMER CHARACTERISTCS• Industrial versus consumer market

• Consumers are easier to reach (decision maker) through media sources; industrial buyers typically have a more formal buying process, requiring personal selling

• Number of customers• For a small number of customers, personal selling can

play a much more important role• Geographical dispersion

• Not only affects the type of promotional effort, but the media choices

Type of Buying Decision

Advertising

Sales PromotionType ofType ofBuying DecisionBuying DecisionaffectsaffectsPromotional Promotional Mix ChoiceMix Choice

Type ofType ofBuying DecisionBuying DecisionaffectsaffectsPromotional Promotional Mix ChoiceMix Choice

ComplexComplexComplexComplex

RoutineRoutineRoutineRoutine

Personal Selling

Not RoutineNot Routineor Complexor Complex

Not RoutineNot Routineor Complexor Complex

Advertising

Public Relations

Available Funds

• Trade-offs with funds available

• Number of people in target market

• Quality of communication needed

• Relative costs of promotional elements

Push and Pull Strategies

ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler

ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler

Wholesaler Wholesaler promotes to promotes to retailerretailer

Wholesaler Wholesaler promotes to promotes to retailerretailer

Retailer Retailer promotes topromotes toconsumerconsumer

Retailer Retailer promotes topromotes toconsumerconsumer

ConsumerConsumerbuys frombuys fromretailerretailer

ConsumerConsumerbuys frombuys fromretailerretailer

PUSH STRATEGYPUSH STRATEGY

Orders to manufacturer

ManufacturerManufacturerpromotes to promotes to consumerconsumer

ManufacturerManufacturerpromotes to promotes to consumerconsumer

Consumer Consumer demands demands productproductfrom retailerfrom retailer

Consumer Consumer demands demands productproductfrom retailerfrom retailer

Retailer Retailer demands demands productproductfrom wholesalerfrom wholesaler

Retailer Retailer demands demands productproductfrom wholesalerfrom wholesaler

Wholesaler Wholesaler demandsdemandsproduct fromproduct frommanufacturermanufacturer

Wholesaler Wholesaler demandsdemandsproduct fromproduct frommanufacturermanufacturer

Orders to manufacturer

PULL STRATEGYPULL STRATEGY

Figure 17.5 Cost Effectiveness by Buyer Readiness Stage

Figure 17.6 Current Consumer States for Two Brands


• 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

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


• Factors considered when budget-setting:• Stage of product life

cycle• Market share and

consumer base• Competition and clutter• Advertising frequency• Product substitutability




• Factors considered when choosing the advertising message:• Message generation• Message evaluation

and selection• Message execution• Social responsibility

review




• Developing media strategy involves:• Deciding on reach,

frequency, and impact • Selecting media and

vehicles• Determining media

timing• Deciding on

geographical media allocation




• Newspapers• Television• Direct mail• Radio• Magazines

• Outdoor• Yellow pages• Newsletters• Brochures • Telephone

Internet

Major Media Types


• 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


• Evaluating advertising effectiveness• Communication-

effect research• Sales-effect

research



Issues Facing Global Adaptations

• Is the product restricted in some countries?

• Are there restrictions on advertising the product to a specific target market?

• Can comparative ads be used?

• Can the same advertising be used in all country markets?

campaign planning & imc

Documents

mass marketing

marketing discussionpick

marketing campaign

pearson education

prentice hall

channels of information

singular brand image

experiencespublic relations