Designing and Managing Integrated Marketing Communications

2003 Prentice Hall, Inc.

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.
2003 Prentice Hall, Inc.

Marketing Communications
Communications Platforms
 Advertising  Sales Promotion  Public relations  Direct marketing

 Personal selling

2003 Prentice Hall, Inc.

Developing Effective Marketing Communications

Steps in Marketing Communications Program Development
 Identify target audience  Determine objectives of communication  Design the message  Select communication channels
2003 Prentice Hall, Inc.

 Establish the budget  Select the marketing communications mix  Measure results  Manage the IMC process

Developing Effective Marketing Communications

 Step 1: Identifying the target audience
Includes assessing the audiences 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
2003 Prentice Hall, Inc.

Developing Effective Marketing Communications

Message Design
 Content  Structure  Format  Source
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 Message content decisions involve the selection of appeal, theme, idea, or USP  Types of appeals
Rational appeals Emotional appeals Moral appeals

Developing Effective Marketing Communications

Message Design
 Content  Structure  Format  Source
2003 Prentice Hall, Inc.

 One-sided vs. two-sided messages  Order of argument presentation

Developing Effective Marketing Communications

Message Design
 Content  Structure  Format  Source
2003 Prentice Hall, Inc.

 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

Developing Effective Marketing Communications

Message Design
 Content  Structure  Format  Source
2003 Prentice Hall, Inc.

 Message source characteristics can influence attention and recall  Factors underlying perceptions of source credibility:
Expertise Trustworthiness Likability

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
2003 Prentice Hall, Inc.

derives from two-step flow-ofcommunication process

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
2003 Prentice Hall, Inc.

 Developing advertising with high conversation value  Use viral marketing  Developing word-ofmouth referral channels  Establishing an electronic forum

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

2003 Prentice Hall, Inc.

Developing Effective Marketing Communications

Communications Mix Selection
 Types of promotional tools  Selection factors
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 Advertising  Sales promotion  Public relations and publicity  Direct marketing  Personal selling

Developing Effective Marketing Communications

Communications Mix Selection
 Types of promotional tools  Selection factors
2003 Prentice Hall, Inc.

 Consumer vs. business market  Stage of buyer readiness  Stage of product life cycle  Market rank

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
2003 Prentice Hall, Inc.

Developing and Managing the Advertising Campaign

The Five Ms of Advertising
 Mission  Money  Message  Media  Measurement
2003 Prentice Hall, Inc.

 Objectives can be classified by aim:

Inform Persuade Remind Reinforce

Developing and Managing the Advertising Campaign

The Five Ms of Advertising
 Mission  Money  Message  Media  Measurement
2003 Prentice Hall, Inc.

 Factors considered when budget-setting:

Stage of product life cycle Market share and consumer base Competition and clutter Advertising frequency Product substitutability

Developing and Managing the Advertising Campaign

The Five Ms of Advertising
 Mission  Money  Message  Media  Measurement
2003 Prentice Hall, Inc.

 Factors considered when choosing the advertising message:

Message generation Message evaluation and selection Message execution Social responsibility review

Developing and Managing the Advertising Campaign

The Five Ms of Advertising
 Mission  Money  Message  Media  Measurement
2003 Prentice Hall, Inc.

 Developing media strategy involves:

Deciding on reach, frequency, and impact Selecting media and vehicles Determining media timing Deciding on geographical media allocation

Developing and Managing the Advertising Campaign

Major Media Types
 Newspapers  Television  Direct mail  Radio  Outdoor  Yellow pages  Newsletters  Brochures

 Magazines  Telephone  Internet

2003 Prentice Hall, Inc.

Developing and Managing the Advertising Campaign

 Deciding on Media Categories
Target audiences 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

2003 Prentice Hall, Inc.

Developing and Managing the Advertising Campaign

The Five Ms of Advertising
 Mission  Money  Message  Media  Measurement
2003 Prentice Hall, Inc.

 Evaluating advertising effectiveness

Communicationeffect research Sales-effect research

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
2003 Prentice Hall, Inc.

Sales Promotion
Steps in Sales Promotion Program Development
 Establish objectives  Select consumerpromotion tools  Select trade-promotion tools  Select business- and sales force promotion tools  Develop the program  Pretest the program

 Implement and evaluate the program

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 23 in Chapter 16

Sales Promotion
Major Consumer-Promotion Tools
 Samples  Coupons  Cash refunds (rebates)  Premiums  Prizes (contests, sweepstakes, games)  Patronage awards
2003 Prentice Hall, Inc.

 Free trials  Product warranties  Tie-in promotions  Cross-promotions  Point-of-purchase displays and demonstrations

Public Relations
 Public relations activities promote or protect the image of a firm or product  Public relations functions:
Press relations Product publicity Corporate communications Lobbying Counseling
2003 Prentice Hall, Inc.

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

2003 Prentice Hall, Inc.

Public Relations
Major Public Relations Tools
 Publications  Events  Sponsorships  News  Speeches  Public-service activities  Identity media

2003 Prentice Hall, Inc.

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.
2003 Prentice Hall, Inc.

Direct Marketing
Major Direct Marketing Tools
 Face-to-face selling  Direct mail  Catalog marketing  Telemarketing  Direct-response TV marketing  Kiosk marketing  E-marketing

2003 Prentice Hall, Inc.

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
2003 Prentice Hall, Inc.