Integrated Marketing Communications Strategy

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The promotional side

Marketing communication tools

Modes of Marketing communications
- Advertising - Direct marketing
- Sales promotion - Interactive marketing
- Event and experiences - Word of mouth marketing
- Public relations and publicity - Personal selling

Advertising
any paid form of non-personal presentation and promotion of ideas, goods, or services by communication platforms.

Communication platforms
- Print and broadcast ads
- Packaging inserts
- motion pictures
- brochures and booklets
- posters
- billboards
- logos
- video tapes
- POP Displays

Sales Promotion

a variety of short-term incentives to encourage trial or purchase of a product or service, which uses the following communication platforms:
- contests, games, sweepstakes,
- premiums
- sampling
- trade shows, exhibits,
- coupons
- rebates
- continuity programs

Events and experiences

company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers
- communication platforms include
- sports
- entertainment
- causes
- festivals
- art
- factory tours
- company museums
- street activities

Public relations and Publicity

a variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications.
- press kits - annual reports
- speeches - charitable donations
- seminars - Publications
- community relations - lobbying
- identity media

Direct marketing

use of mail, telephone, fax, e-mail, or internet to communicate directly with or solicit response or dialogue from specific customers and prospects.
- catalogues - mailings
- telemarketing - electronic shopping
- TV shopping - Fax mail
- Email - voice mail
- websites

Interactive marketing

online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services.
- company blogs
- websites

Word-of-Mouth marketing

People-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services
- Person-to-person
- chat rooms
- Blogs

Personal selling

Face-to-face interaction with one or more prospective purchasers for the purpose of making making presentations, answering questions and procuring orders.
- sales presentations - samples
- sales meetings - fairs and trade shows
- incentive programs

How to develop Effective marketing communications - a 7 step approach

1. Identify the target audience
2. Determine objectives
3. Design communications
4. Select channels
5. Establish Budget
6. Decide on a media mix
7. Measure results/ manage IMC - Integrated Marketing
Communications

1. Identify the target audience

The process must start with a clear target audience in mind: potential buyers of the company's products, current users, deciders, or influencers, and individuals, groups, particular publics, or the general public
- The Target audience is critical as it influences the communicator's decision about
- what to say - when
- how - where
- and to whom
Communicators must
- profile the target audience - usage and loyalty, brand usage
- conduct image analysis by profiling the target audience in terms of brand knowledge.

2. Determine objectives

Communications objectives
- Category Need
- Brand awareness
- Brand attitude
- Brand Purchase Intention

Category Need

Category Need - Establishing a product or service category
as necessary to remove or satisfy a
perceived discrepancy between a current
motivational state and a desired
motivational state

Brand awareness

Brand awareness - Fostering the consumer's ability to
recognize or recall the brand within the
category, in sufficient detail to make a
purchase. Recognition is easier to
achieve than recall. Brand recall is
important outside the store; brand
recognition is important inside the store.
Brand awareness provides a foundation
for the brand equity.

Brand attitude

Brand attitude - Helping consumers evaluate the brand's
perceived ability to meet a currently relevant
need. Relevant brand needs may be
negatively oriented or positively oriented.

Brand Purchase Intention

Brand Purchase Intention - Moving consumers to decide to
purchase the brand or take purchase-
related action. Promotional offers like
coupons or two-for-one deals encourage
consumers to make a mental commitment
to buy.

3. Design communications

- Message strategy
- Creative strategy
- Message source

Message strategy

- Management searches for appeals, themes, or ideas that will tie in to the brand positioning and help establish points-of-parity or points-differences
- Some of these PPs or PPDs may be related directly to product or service performance whereas may relate to more extrinsic considerations.

Creative strategy

Creative strategies are the way marketers translate their messages into a specific communication.
- Two types of strategies
- Informational appeals - elaborates on product or
service attributes or benefits.
- 1-sided vs. 2 sided - 2-sided is more
effective.
- Transformational appeals - elaborates on a non-
product- related benefit or image.

Message source

Messages delivered by attractive or popular sources can achieve higher attention or recall, which is why advertisers often use celebrities as spokespeople.
- source must have expertise, trustworthiness, and likability.
- the principle of congruity implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience.

4. Select channels

- Two main types exist
- Personal communications channels
- Non-personal (mass) communications channels

Personal communications channels

- Personal communications channels let two or more persons communicate face-to-face or person-to-audience through a phone, surface mail, or email.
- they derive their effectiveness from individualized presentation and feedback and include direct and interactive marketing, word-of-mouth marketing and personal selling.
- More advertisers now seek earned media - unsolicited professional commentary, personal blog entries, social network discussion.
Personal influence carries great weight:
1. when products are expensive, risky, or purchased
infrequently
2. when products suggest something about the user's
status or taste.

Non-personal (mass) communications channels

Communication channels directed to more than one person and include advertising, sales promotions, events and experiences, and public relations.
- Events can create attention, although whether they have a lasting effect on brand awareness, knowledge, or preference will vary considerably depending on the quality of the product, the event itself and its execution.

5. Establish Budget

Types of ways companies decide on communications budget
- Affordable method
- Percentage of sales method
- Competitive-parity method
- Objective and task method

- Affordable method

The affordable method completely ignores the role of promotion as an investment and the immediate impact of promotion on sales volume. It leads to an uncertain annual budget, which makes long-range planning difficult.

- Percentage of sales method

some companies set communication expenditures at a specified percentage of current or anticipated sales or of the sales price.
- advantages include
1. communication expenditures will vary with what the company can afford - this satisfies financial managers
2. encourages management to think of the relationship among communication cost, selling price and profit per unit.
3. Encourages stability when competing firms spend approx. the same % of their sales on communications.
however,
it leads to a budget set by availability of funds rather than by market opportunities.
It doesn't encourage building the communication budget by determining what each product and territory deserves.
Dependence on year to year sales fluctuations interferes with long range planning.

- Competitive-parity method

Some companies set their communication budget to achieve share-of-voice parity with competitors
- Competitors' expenditures represent the collective wisdom of the industry
- Maintaining competitive parity prevents communication wars
- Neither argument above is valid, there are no grounds for believing that competitors know better.
- company reputations, resources, opportunities and objectives differ so much that communication budgets are hardly a guide.

- Objective and task method

Calls upon marketers to develop communication budgets by defining specific objectives, determining the tasks that must be performed to achieve these objectives, and estimating the costs of performing them.
- the sum of these costs is the proposed communication
budget.
- this method has the advantage of requiring management to spell out its assumptions about the relationship among dollars spent, exposure levels, trial rates and regular usage.

- Factors in setting Communication Mix

- Type of product market
- Buyer readiness stage
- Product life cycle stage

6. Decide on a media mix

Mass Communications Personal Communications
- Advertising - Direct Marketing
- Sales Promotion - Interactive Marketing
- Events and Experiences - Word of Mouth
- Public Relations - Personal Selling

- Advertising

Advertising objectives
- Informative advertising
- Persuasive advertising
- Reminder advertising
- Reinforcement advertising
The Five M's of Advertising
- Mission
- Money
- Message
- Media
- Measurement

- Informative advertising

Aims to create brand awareness and knowledge of new products or new features of existing products

- Persuasive advertising

Aims to create liking, preference, conviction, and purchase
of a product or service. Some persuasive advertising uses
comparative advertising, which makes an explicit
comparison of the attributes of two or more brands.

- Reminder advertising

Aims to stimulate repeat purchase of products and services

- Reinforcement advertising

Aims to convince current purchasers that they made the
right choice.

--- Developing an advertising program

- Setting objectives --- Mission
- Deciding on the budget --- Money
- Developing the campaign --- Message
- Deciding on the Media --- Media
- Making measurement plans --- Measurement

- Setting objectives --- Mission

- Informative advertising
- Persuasive advertising
- Reminder advertising
- Reinforcement advertising

- Deciding on the budget --- Money

Factors to consider in setting an advertising budget
1. Stage in the product life cycle
2. Market share and Consumer base
3. Competition and clutter
4. Advertising frequency
5. Product substitutability

1. Stage in the product life cycle

- New products typically merit large advertising budgets to build awareness and to gain consumer trial.
- Established brands are usually supported with lower advertising budgets, measured as a ratio to sales.

2. Market share and Consumer base

- High market share brands usually require less advertising expenditure as a percentage of sales to maintain share.
- To build share by increasing market size requires larger expenditures.

3. Competition and clutter

In a market with a large number of competitors and high advertising spending, a brand must advertise more heavily to be heard.
Even simple clutter from advertisements not directly competitive to the brand creates a need for heavier advertising.

4. Advertising frequency

The number of repetitions needed to put the brand's message across to consumers has an obvious impact on the advertising budget.

5. Product substitutability

Brand in less-differentiated or commodity-like product classes (beer, soft drinks, banks, and airlines) require heavy advertising to establish a unique image.

- Developing the campaign --- Message

Three steps
1. Message generation and evaluation
2. Creative development and execution
3. Legal and social-responsibility review

1. Message generation and evaluation

Advertisers are always looking for the "big idea" that connects with consumers rationally and emotionally, sharply distinguishes the brand from competitors, and is broad and flexible enough to translate to different media, markets and time periods.
- Fresh insights are important for avoiding using the same appeals and position as others.

2. Creative development and execution

The ads impact depends not only on what it says, but often more important, on how it says it. Execution can be decisive.
- Television Ads --- it can vividly demonstrate product
attributes and persuasively explain their corresponding
consumer benefits. It can dramatically portray user and
usage imagery, brand personality and other intangibles.
Its a victim of clutter, distractions, the message can be
overlooked.
- Print Ads
- Readers consume them at their own pace
- can provide detailed product information and effectively
communicate user and usage imagery.
- Can be passive
- Radio Ads
- Mass use; high geographic and demographic selectivity
- low cost

3. Legal and social-responsibility review

- Marketers must be sure advertising does not overstep social and legal norms or offend the general public, ethnic groups, racial minorities or special interest groups.
- A substantial body of laws and regulations governs advertising.
- Under US Law, advertisers must not make false claims, avoid false demonstrations or create ads that have the capacity to deceive.
- The challenge is to tell the difference between "puffery" - simple exaggerations that are not meant to be believed and that are permitted by the law.

Television

Advantages Disadvantages
- Reaches broad spectrum - Brief
of consumers
- Low cost per exposure - Clutter
- Ability to demonstrate - High cost of production
product use
- Ability to portray image - Lack of attention by viewers
and brand personality

Print Ads

Advantages Disadvantages
- Detailed product information - Passive medium
- Ability to communicate user - Clutter
imagery
- Flexibility - Unable to demonstrate
- Ability to segment product use

Print ad evaluation criteria

- Is the message clear at a glance?
- Is the benefit in the headline?
- Does the illustration support the headline?
- Does the first line of the copy support or explain the headline and illustration?
- Is the ad easy to read and follow?
- Is the product easily identified?
- Is the brand or sponsor clearly identified?

- Deciding on the Media --- Media

The steps here are deciding on
- desired reach
- desired frequency
- desired impact
- Choosing among major media types
- selecting specific media vehicles
- deciding on media timing
- deciding on geographical media allocation

Deciding on Reach, Frequency, and Impact

Media selection is finding the most cost-effective media to deliver the desired number and type of exposures to the target audience.
- The effect of exposures on audience awareness depends on the exposures' reach, frequency, and impact
- Reach (R) = The number of different persons or
households exposed to a particular media
schedule at least once during a specified time
period.
- Frequency (F) = The number of times within the specified
time period that an average person or
household id exposed to the message.
- Impact (I) = The qualitative value of an exposure through a
given medium - a food ad will have a higher
impact in Bon Apetit than in Fortune magazine.
- Audience awareness will be greater, the higher the exposure, frequency, and impact.
- Important trade off
- Total number of exposures (E) = Reach x Avg. Frequency
= R x F
- Weighted number of exposures (WE) =
= Reach x Frequency x Impact

Reach

- Is most important when launching new products, flanker brands, extensions of well-known brands, or infrequently purchased brands, and even when going after an undefined target audience.

Frequency

- Is most important where there are strong competitors, a complex story to tell, high consumer resistance or a frequent purchase cycle.

Repetition

- the higher the forgetting rate associated with a brand, product category, or message, the higher the warranted level of repetition.
- keep it fresh, don't repeat the same ad over and over again, change it up.

Major media types

- Newspapers - Television
- Direct mail - Radio
- Magazine - Outdoor
- Yellow pages - Newsletters
- Brochures - Telephone
- Internet

Media schedule patterns

- Continuity
- Concentrated
- Pulsing
- Flighting

- Continuity

Means exposures appear evenly throughout a given period. Generally advertisers use continuous advertising in expanding market situations, with frequently purchased items, and in tightly defined buyer categories.

- Concentrated

Calls for spending all the advertising dollars in a single period. This makes sense for products with one selling season or related holiday.

- Pulsing

is continuous advertising at low-weight levels, reinforced periodically by waves of heavier activity.
- It draws on the strength of continuous advertising and flights to create a compromise scheduling strategy.
- Believes that the audience will learn the message more thoroughly, and at a lower cost to the firm.

- Flighting

Calls for advertising during a period, followed by a period with no advertising, followed by a second period of advertising activity.
Useful when funding is limited, the purchase cycle is relatively infrequent, or items are seasonal.

- Making measurement plans --- Measurement

Measuring sales impact of advertising
- Share of expenditures
- Share of voice
- Share of mind and heart
- Share of market

- Sales-effect research

A company's share of advertising expenditures produces a share of voice (proportion of company advertising of that product to all advertising of that product) that earns a share of consumers' minds and hearts and ultimately a share of market.
- researchers try to measure the sales impact by analyzing historical or experimental data.

Sales Promotion

consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or trade.
Note
advertising offers a reason to buy
sales promotion offers an incentive to buy

---Consumer-directed sales promotion tactics

- samples - coupons
- cash refund offers - price packs
- premiums - prizes
- patronage rewards - free trials
- Tie-in promotions

---Trade-directed sales promotion

- Price-offs - Spiffs
- Allowances - Trade shows
- Free goods - Specialty advertising
- Sales contests

Events and Experiences

Event objectives
1. To identify with a particular target market or lifestyle
2. To increase salience of company or product name
3. To create or reinforce perceptions of key brand image associations
4. To enhance corporate image
5. To create experiences and evoke feelings
6. To express commitment to the community or on social issues
7. To entertain key clients or reward key employees
8. To permit merchandising or promotional opportunities

Measuring sponsorship activities (effectiveness)

- supply side methods
approximate the amount of time or space devoted to media
coverage of an event, for example the number of seconds
the brand is clearly visible on a television screen or the
column inches of press clippings that mention it.
- demand side methods
identifies the effect sponsorship has on consumers' brand
knowledge. Marketers can survey event spectators to
measure recall of the event as well as resulting attitudes
and intentions toward the sponsor.

Public relations

- Press relations -
Presenting news and info. about the organization in the
most positive light
- Product publicity
Sponsoring efforts to publicize specific products
- Corporate communications
promoting understanding of the organization through
internal and external communications
- Lobbying
Dealing with legislators and government officials to
promote or defeat legislation and regulation
- counseling
advising management about public issues and company
positions and image during good times and bad times.

---- Major tools in marketing PR

- Publications
- Events
- Sponsorship
- News
- Speeches
- Public service activities

Personal communications

- Direct Marketing
- Interactive marketing
- Word-of-mouth
- Sales force

- Direct Marketing

The use of consumer direct channels to reach and deliver goods and services to customers without using a market middleman

--- Direct marketing channels

- Direct mail
- Catalogues
- Telemarketing
- Other direct response

--- public and ethical issues in direct marketing

- Irritation
- Unfairness
- Deception and fraud
- Invasion of privacy

- Interactive marketing

- Tailored messages possible
- Easy to track responsiveness
- contextual ad placement possible
- Search engine advertising possible
- Subject-to-click fraud
- consumers develop selective attention

--- Interactive marketing options

- websites
- micro-sites
- Online ads --- search ads vs. display ads
- Email
- Mobile advertising

--- Email guidelines

- Give the customer a reason to respond
- Personalize the content of your emails
- Offer something the customer can't get via direct mail
- Make it easy for customers to "unsubscribe"
- Combine with other communications such as social media

- Word-of-mouth

- Earned media i.e. free media
is all the PR benefits a firm receives without having directly
paid for anything - all the news stories, blogs, social
network conversations that deal with the brand.
- Paid media -
results from press coverage of company-generate
advertising, publicity, or other promotional efforts.

----Platforms of social media

- online communities and forums
- Blogs
- social networks

---- How to start buzz

- identify influential individuals and companies and devote
extra effort to them
- supply key people with product samples
- work through community influentials
- develop word of mouth referral channels to build business
- provide compelling information that consumers want to pass
along

- Sales force

Types of Sales Representatives
- Deliverer
- Order taker
- Missionary
- Technician
- Demand creator
- Solution vendor

--- Sales tasks

- Prospecting - searching for prospects or leads
- Targeting - deciding how to allocate their time among
prospects and customers
- Communication - communicating information about the
company's products and services
- Selling - Approaching, presenting, answering questions,
overcoming objections and closing sales
- Servicing - Providing various services to the customers -
consulting on problems, rendering technical
assistance, arranging financing, expediting
delivery.
- Information gathering - conducting market research and
doing intelligence work
- Allocating - Deciding which customers will get scarce
products during product shortages

----Workload approach to determining sales force size

1. Group customers into size classes according to annual
sales volume
2. Establish desirable call frequencies (number of calls on an
account per year) for each customer class
3. Multiply the number of accounts in each size class by the
corresponding call frequency to arrive at the total workload
for the country, in sales calls per year
4. Determine the average number of calls a sales
representative can make per year
5. Divide the total annual calls required by the average annual
calls made by a sales representative, to arrive at the
number of sales representatives needed.

--- Principles of personal selling

- Situation questions
- Problem questions
- Implication questions
- Need-payoff questions

Steps in Effective selling

1. Prospecting and qualifying
2. Pre-approach
3. Approach
4. Presentation and demonstration
5. Overcoming objections
6. Closing
7. Follow-up

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