Integrated Marketing Communication Strategy

Chapter 14

Volvo Trucks

Marketing Communication Mix or Promotion Mix

Product’s Design

Product’s Price

Product’s

Package

Stores that Sell the Product

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 ShiftedAway From MassMarketing Less Broadcasting

Market Fragm

entation Led to M

edia Fragm

entation

The Need for Integrated Marketing Communications

With Integrated Marketing Communications (IMC), the Company Carefully Integrates and Coordinates Its Many Communications Channels to Deliver a Clear, Consistent, and Compelling Message About the Organization and Its Product or Service.

Personal selling

Public relations

Direct marketing

Sales promotion

Advertising(Fig. 14.1)

A View of the Communications Process

Marketers View Communications as the Management of the Customer Relationship Over Time Through the Following Stages:

Preselling Selling

Post-Consumption Consuming

Encoding

Decoding

Elements in the Communication Process (Fig. 14.2)

the receiver or audience

the communication or message

the sender or source of the communication

Noise

Noise Noise

Noise

Feed

back

Noise

Sellers Need to Know What Audiences

They Wish to Reach and Response

Desired.

Sellers Must be Good at Encoding MessagesThat Target Audience

Can Decode.

Key Factors in Good Communication

Sellers Must Send Messages Through Media that Reach Target Audiences

Sellers Must DevelopFeedback Channels to

Assess Audience’sResponse to Messages.

Step 1. Identifying the Target Audience

Step 2. Determining the Communication ObjectivesBuyer Readiness Stages

PurchaseConviction

PreferenceLiking

KnowledgeAwareness

Steps in Developing Effective Communication

This ad for the Toyota Celicamay be able to cover the firstthree stages of the buyer-readiness s tages : awareness,knowledge, and liking.

There is no mention ofcompetitors , so it does notseem to establish preference.

Step 3. Designing a Message

Message ContentRational Appeals

Emotional Appeals

Moral Appeals

Message Structure

Draw ConclusionsArgument TypeArgument Order

Message FormatHeadline, Illustration,

Copy, & ColorBody Language

Steps in Developing Effective Communication

Attention Interest Desire Action

Designing aMessage

ContentThe pictures and the slogan make this whattype of appeal?

FormatThi s layout, almost like a yearbook or photoalbum, reinforces the sentimental aspect of this advertisement.

Click or press spacebar to return.

Is this ad making an emotional,rational, or moral appeal, or is itcombining them? How muchdo the personified cowscontribute to this ad?

Is the ad structured to let the audience make a decision?

Is this an effective ad?

The same company puts lifelikestatues of cows, with this slogan,into mall food courts. Whatmakes that practice effective?

Nonpersonal CommunicationChannels

Step 4. Choosing Media

Personal CommunicationChannels

Step 5. Selecting the Message Source

Step 6. Collecting Feedback

Steps in Developing Effective Communication

Setting the Total Promotion Budget

One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on Promotion.

AffordableBased on What the

Company Can AffordObjective-and-

TaskBased on

Determining Objectives & Tasks,

Then Estimating Costs

Percentage of Sales

Based on a Certain Percentage of

Current or Forecasted SalesCompetitive-

ParityBased on the Competitor’s

Promotion Budget

Personal Selling Personal Interaction, Relationship

Building, Most Expensive Promo Tool

SalesPromotion

Wide Assortment of Tools, Rewards Quick Response, Efforts Short-Lived

PublicRelations

Very Believable, Dramatize a Company or Product, Underutilized

DirectMarketing

Nonpublic, Immediate, Customized, Interactive

Advertising Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive

Setting the Promotion Mix

Promotion Mix Strategies

Strategy that Calls for Spending A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand.

Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels.

Strategy Selected Depends on:• Type of Product-Market• Product Life-Cycle Stage

Manufacturer

Wholesaler

Retailer

Customer

PUSHPUSHManufacturer

Wholesaler

Retailer

Customer

PULLPULL

Flow of DemandFlow of Promotion Flow of PromotionFlow of Demand

Push vs. Pull Promotions

Sting"Desert Rose" wasn't getting airplay, until

Jaguar used the video featuring its car in an $18M advertising campaign.

Integrating the Promotion Mix

Analyze trends – internal and external – that can affect your company’s ability to do business.

Audit the pockets of communications spending through the organization.

Identify all contact points for the company and its brands.

Team up in communications planning. Create compatible themes, tones, and quality

across all communications media. Create performance measures that are shared

by all communications elements. Appoint a director responsible for the

company’s persuasive communications efforts.

Socially Responsible Marketing Communication Advertising and Sales Promotion

Companies must avoid false and deceptive advertising.

Sellers must avoid bait-and-switch advertising.

Trade promotion activities are also closely regulated.

Personal Selling Salespeople must follow the rules of “fair

competition”. Three-day cooling-off rule Salespeople must not disparage competitors.