Integrated Marketing Communication Chapter 16

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Terms in this set (...)

What is the goal?
Move your target market to buy and become loyal.
Promotion
Few goods or services can survive in the marketplace without effective promotion.
AIDA Concept
Attention (Cognitive - thinking)
Interest (Affective - feeling)
Desire
Action (Conative - doing)

Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message

This model proposes that consumers respond to marketing messages in a cognitive (thinking), affective (feeling), and conative (doing) sequences.
New Balance Hubway video
Target market: people looking for better way to commute.

Gold Club

Social Media (Twitter/Facebook)
Categories of Communication
Interpersonal communication direct face-to-face
Mass communication - large audience
Owned (paid)
Earned (unpaid)

Communication can be divided into two major categories:
- Interpersonal communication is direct, face-to-face communication between two or more people.

- Mass communication refers to communicating a concept or message to larger audiences, usually through a mass medium such as television or newspapers.
Promotional/Communication Mix
Combination of promotion tools used to reach the target market and fulfill the organization's overall goals. Includes:

Advertising
Sales promotion
Public relations
Publicity
Personal word of mouth
Personal selling
Sponsorships/fundraisers
Social media can fit all of above

The goal is to set our targets to understand the brand, to believe in the brand, and to act to exchange
Tasks of Marketing Communication
Promotion seeks to modify behavior and thoughts in some way.
It also strives to reinforce existing behavior.

Promotion has three basic tasks:
-Inform the target audience
-Persuade the target audience
-Remind the target audience
-Connect with the target audience (social media)

Often a marketer will try to accomplish two or more of these tasks at the same time.
Relationship of tasks to PLC
- Informing - PLC Stages: Introduction, early growth,
- Reminding - PLC stages: Maturity,
- Persuading - PLC stages: growth, maturity,
- Connecting - PLC stages: All

All lead to target audience
Building a marketing relationship
Find shared values and build trust
Content marketing
a marketing technique of creating and distributing valuable, relevant and consistent content to attract and acquire a clearly defined audience - with the objective of driving profitable customer action.
Five examples
Infographic, webpages, podcasts, videos, books
Promotional mix and AIDA
Advertising:
Attention - very effective
Interest - very effective
Desire - somewhat effective
Action - not effective

Public relations:
Attention - very effective
Interest - very effective
Desire - somewhat effective
Action - not effective


Sales promotion:
Attention - somewhat effective
Interest - somewhat effective
Desire - very effective
Action - not effective

Personal selling:
Attention - somewhat effective
Interest - very effective
Desire - very effective
Action - very effective

Social media:
Attention - very effective
Interest - very effective
Desire - somewhat effective
Action - not effective

It shows that although advertising does have an impact in the later stages, it is most useful in gaining attention for goods or services.
Integrated marketing communications
Coordinated by marketing communications director

The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer

Marketers determine what roles each aspect of the promotional mix will play in the marketing mix.
This includes the timing of promotions and examining campaign results.

These activities are generally coordinated by the marketing communications director.
IMC Popularity Growth
Proliferation of thousands of media choices

Fragmentation of the mass market
Factors affecting the choice of promotional mix
Nature of product - costs, risks
Stage in PLC - see slide
Target market - where do they live, work, play
Type of buying decision
Promotion funds
Push or pull strategy

Promotional mixes vary a great deal from one product and one industry to the next.

Advertising and personal selling are used to promote goods and services, supplemented by sales promotion.

Public relations helps develop a positive image for the product and the organization.

A firm may choose not to use all four promotional elements, or it may choose to use them in varying degrees.
Product Life Cycle & Promotional Mix
In the introduction stage, the basic goal of promotion is to inform the target audience of product availability. Advertising and public relations inform the target audience, while sales promotion encourages early trial. Personal selling gets retailers to carry the product.

During the growth stage, advertising and public relations continue to be important, although sales promotion can be reduced because customers need fewer incentives to purchase. The promotional strategy is to emphasize the product's differential competitive advantage. Persuasive promotion is used to build and maintain brand loyalty. Personal selling has succeeded in obtaining adequate distribution for the product.

In the maturity stage, competition becomes fiercer, and persuasive and reminder advertising are more strongly emphasized. Sales promotion comes back into focus to try to increase market share.

As the product enters the decline stage, all promotion, especially advertising, is reduced. Nevertheless, personal selling and sales promotion efforts may be maintained, particularly at the retail level.
Types of buying decision
Routine - advertising, sales promotion

Neither routine nor complex - advertising, public relations

Complex - personal selling and print advertising

. Print ads are also effective for conveying large amounts of information.
Push strategy
Manufacturer promotes to wholesaler
Wholesaler promotes to retailer
(orders to manufacturer brings it back to step one)
Retailer promotes to consumer
Consumer buys from retailer

Manufacturers may use aggressive personal selling and trade advertising to convince a wholesaler/retailer to carry and sell their merchandise.

The wholesaler, in turn, pushes the merchandise forward by persuading the retailer to handle the goods. The retailer uses advertising and other forms of promotion to convince customers to buy the "pushed" products.
Pull strategy
Manufacturer promotes to consumer
Consumer demands product from retailer
Retailer demands product from wholesaler
Wholesaler demands product from manufacturer
(orders to manufacturer brings it back to step one)

Stimulates consumer demand to obtain product distribution.

The manufacturer uses a pull strategy by focusing promotional efforts on end consumers and opinion leaders.

The wholesaler then places an order for the "pulled" merchandise from the manufacturer.

Consumer demand pulls the product through the channel of distribution.
Advertising
Impersonal one way mass communication about an offering that is paid by the organization
The effects of advertising
1.4 million people work in various marketing positions including media advertising such as newspapers, magazines, television, radio, and internet media.

More than 100 companies spend over $300 million annually on advertising.

Advantages: Reach large number of people, low cost per contact, can be micro-targeted

Disadvantages: Total cost is high, national reach is expensive for small companies

Advertising, defined as any form of impersonal, paid communication in which the sponsor is identified, is a popular form of promotion especially for consumer packaged goods and services.

Advertising expenditures were almost $125.3 billion in 2009.

The top five spenders on advertising are Procter & Gamble, Verizon, AT&T, General Motors, and Pfizer.
Major types of advertising
Institutional advertising - enhances a company's image rather than promote a particular product

Product advertising - touts the benefits of a specific good or service

The firm's promotional objectives determines the type of advertising it uses.
Institutional advertising
Corporate identity

Advocacy advertising - safeguard against negative attitudes

Institutional advertising promotes the corporation as a whole and is designed to establish, change, or maintain the corporation's identity.

A form of institutional advertising is advocacy advertising, typically used to safeguard against negative consumer attitudes and to enhance the company's credibility among consumers who already favor its position.
Product advertising
Pioneering - primary demand

Competitive - persuasive

Comparative - to competition
Corporate Advertising
Institutional advertising
Advocacy advertising
Its time to think outside the barrel. - BP

Form of institutional advertising used to safeguard against negative attitudes and to enhance the company's credibility among consumers who already favor its position.
Pioneering advertising
Intended to stimulate primary demand for a new product or product category.
Competitive advertising
"Using crest whitestrips prevents you from reading this"

influence demand for a specific brand

promotion appeals more to emotions
Comparative advertising
AT&T vs. Verizon Wireless

directly or indirectly compares two or more competing brands on one or more specific attributes
Advertising Campaign
A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.
Creative decisions in advertising
Determine the advertising objectives -- > make (creative or media) decisions --> evaluate the campaign

Before creative work can begin, advertising goals or objectives are established. The DAGMAR approach is one method of setting objectives.

Once objectives are defined, creative work can begin, with the advertising campaign often following the AIDA model.
Advertising decisions - our message
Is your message superlative, important, and believable?

Are you the only one that can make the claim, or could you substitute in another company and have the exact same claim?

Is the offering the star in the communication or incidental?
media slection Considerations
Cost per contact, target audience considerations, medium life span, reach, medium flexibility, noise level, frequency

Reach - the number of people exposed to an advertisement

Frequency - the number of times an individual is exposed to an advertisement. Minimum of three exposures is recommended.

Gross rating point - the product of the reach times the frequency = GRP

The media mix is the combination of media to be used for a promotional campaign.
Qualitative factors in Media Selection
-Attention to the commercial and the program

-Involvement

-Program liking

-Lack of distractions

-other audience behaviors

Advertisers also evaluate the qualitative factors involved in media selection.

The factors shown above affect the likelihood that a commercial message is being seen and absorbed.

An audience must pay attention to the ad for it to be effective.
Media decisions in advertising
Monitored media: Newspapers, magazines, radio, television, internet, outdoor media

Unmonitored media: Direct email, trade exhibits, cooperative advertising, brochures, special events, catalogs, other

The choice of medium is a major decision for advertisers.

Monitored media includes those media shown above and monitored by national reporting services. U.S. advertisers spend roughly $300 billion annually on monitored media.

Traditional mass-market media are declining in usage and more targeted media are growing.
Newspapers
Advantages: Geographic selectivity, short-term advertiser commitments, news value and immediacy, year-round readership, high individual market coverage, co-op and local tie-in availability, short lead time

Disadvantages: limited demographic selectivity, limited color, low pass-along rate, may be expensive
Magazines
Advantages: Good reproduction, demographic selectivity, regional/local selectivity, long advertising life, high pass-along rate

Disadvantages: Long-term advertiser commitments, slow audience build-up, limited demonstration capabilities, lack of urgency, long lead time.

1. Compared to the cost of other media, the cost per contact in magazine advertising is usually high.

2. Although magazine cost per contact may be higher than other media, ads reach specialized audiences and thus more potential customers.

3. One of the main advantages of magazine advertising is market selectivity.
Radio
Advantages: Low cost, immediacy of message, short notice scheduling, no seasonal audience change, highly portable, short-term advertiser commitments, entertainment carryover

Disadvantages: No visual treatment, short advertising life, high frequency to generate comprehension and retention, background distractions, commercial clutter

1. Local advertisers are the most frequent users of radio advertising. Radio also lends itself well to cooperative advertising.

2. The ability to target specific demographic groups is a major selling point for radio stations.
Television
Advantages: Wide, diverse audience, low cost per thousand, creative opportunities for demonstration, immediacy of messages, entertainment carryover, demographic selectivity with cable

Disadvantages: Short life of message, consumer skepticism, high campaign cost, little demographic selectivity with stations, long-term advertiser commitments, long lead times for production, commercial clutter

Advertising on television can be very expensive. First-run prime-time shows command rates of $300,000 to $500,000 for a 30-second spot.
A 30-second spot during the Super Bowl starts at $3 million.
Internet
Advantages: Fast growing, ability to reach narrow target audience, short lead time, moderate cost

Disadvantages: Difficult to measure ad effectiveness and ROI, Ad exposure relies on click through from banner ads, not all consumers have access to internet

With ad revenues exceeding $22 billion annually, the Internet has become a solid advertising medium.

One of the most popular approaches for Internet advertising is search engine ads.
Google's AdWords
The AdWords program enables businesses to set a budget for advertising and only pay when people click the ads. The ad service is largely focused on keywords.

In 2014, 68 percent of $46B revenue came from Google sites (the AdWords-managed ads on Google itself, YouTube, Maps, etc.).

To appreciate just how much Google has grown, consider this—in 2003 the company's total revenue was $1.46 billion with advertising revenue representing $1.42 billion.
Outdoor media
Advantages: Repetition, moderate cost, flexibility, geographic selectivity

Disadvantages: Short message, lack of demographic selectivity, high "noise" level

Examples of outdoor or out-of-home advertising include:
-Billboards
-Skywriting
-giant inflatables
-mini-billboards
-signs in sports arenas
-lighted moving signs in bus and airport terminals
ads painted on the sides of vehicles, objects, and
even living people!
Alternate media
Shopping carts, advertainments (mini movies that promote product and are shown online), computer screen savers, floor ads, DVDs and CDs, subway tunnel ads, interactive kiosks, video game ads, ads before movies, cell phone ads

Advertisers are using new media vehicles to cut through the clutter of traditional advertising media.
Companies perceive large growth potential in mobile advertising.
Media Schedule
After choosing the media for the campaign, advertisers must schedule the ads.

The media schedule designates the medium or media to be used, the specific vehicles (such as the TV show), and the insertion dates of the advertising.
Continuous media schedule
Advertising is run steadily throughout the period

ex- Ivory soap & Charmin toilet paper
Flighted media schedule
Advertising is run heavily every other month or every two weeks

ex- Movie ads on Wednesday and Thursday nights
Pulsing media schedule
Advertising combines continuous scheduling with flighting

ex- Thanksgiving, Christmas, back-to-school sales
Seasonal media schedule
Advertising is run only when the product is likely to be used

ex- cold medication, sun tan lotion
Recency planning
the theory of scheduling television advertising for frequently purchased products, such as Coca-Cola and Tide detergent.

Its main premise is to influence the brand choice of people who are ready to buy.
Sales promotion
Incentive to buy

sales promotion is usually cheaper and easier to measure.
Advertisement
Reason to buy
Consumer sales promotion
Sales promotion activities targeting the ultimate consumer
Trade sales promotion
Sales promotion activities targeting a marketing channel member, such as wholesaler or retailer

Trade allowances - price reduction offered to channel members

Push money - money offered to push the product

Training - for complex or new products

Free merchandise - extra merchandise

In store demonstration - sampling of product

Conventions and trade shows
Objective of sales promotion
Loyal customers, competitor's customers, brand switchers, price buyers

The objectives of a promotion depend on the behavior of target consumers
Loyal Customers
Desired Results: reinforce behavior, increase consumption, change purchase timing

Sales promotion examples: loyalty marketing, bonus packs
Competitor's customers
Desired results: break loyalty, persuade to switch

Sale promotion examples: Sampling, sweepstakes, contests, premiums
Brand switchers
Desired results: Persuade to buy your brand more often

Sale promotion examples: Price lowering promotion, trade deals
Price buyers
Desired results: Appeal with low prices, supply added value

Sale promotion examples: Coupons, price off packages, refunds, trade deals
Tools for consumer sales promotion
Coupons (price reduction) and rebates (cash refund)

Premiums - an extra item

Loyalty marketing programs - frequent or high dollar customers

Contests (use skill or ability) and sweepstakes (chance)

Sampling - trial of product

Point-of-Purchase promotion - in store promotions

The tools selected for sales promotion must suit the objectives to ensure success of the overall promotion plan.
Public relations
The element in the promotional mix that: - - identifies issues of public concern, - executes programs to gain public acceptance

Marketing managers plan public relations campaigns that fit into the overall marketing plans and focus on targeted audiences.

Publicity is the effort to capture media attention and is initiated through a press release that furthers the public relations plans.
The function of public relations
-Maintain a positive image

-Educate the public about the company's objectives

-Introduce new products

-Support the sales effort

-generate favorable publicity

Nothing sells a product better than free publicity, but publicity should not be viewed as free.

Preparing news releases, staging events, persuading media personnel to print or broadcast them costs money.
Types of public relations
Press relations - newsworthy information

New product publicity - capture media attention

Corporate communication - company websites, newsletters

Public affairs

lobbying

employee and investor relations

Crisis management
Digital media
Has turned communication on its head
what are social media
Any tool or service that uses the internet to facilitate conversations
The listening system
The first action a marketing team should taken when initiating a social media campaign is simple:
LEARN
Social Media Objectives
Listen and learn, build relationships and awareness, promote products and services, manage your reputation, improve customer service
Listen and learn
Monitor what is being said about the brand. Develop a listening strategy
Build relationships and awareness
Open dialogues with stakeholders. Answer customer questions candidly
Promote products and services
Get customers talking about products and services
Manage your reputation
Respond to comments and criticisms. Participate in forums and discussions
Improve customer service
Seek out displeased customers and engage them directly to solve issues
Categories of Social Media Users
Creators - produce and share online content

Critics - post comments, ratings, and reviews

Collectors - use RSS feeds to collect information

Joiners - maintain a social networking profile

Spectators - consume media

Inactives - those who do none of these things
Social Media Tools
Blogs, microblogs, social netoworks, media sharing sites, social news site, location-based social networking sites, review sites, virtual worlds and online gaming
Mobile and Smartphone technology
More than 25 percent of the world's population owns a mobile phone

More than 75 percent of the US population owns a mobile phone

US mobile marketing spending reached nearly $593 million in 2010
Reasons for mobile marketing popularity
Low barriers to entry, consumers acclimating to privacy and pricing, capturing consumer attention in real time, measurable, higher response rate than traditional media types
Personal Selling
Planned presentation to one or more prospective buyers for the purpose of making a sale

Personal selling is a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other.

Both buyer and seller have specific objectives: the buyer may need to minimize cost or assure a quality product, while the salesperson may need to maximize revenue and profits.

Traditional methods of personal selling include a planned presentation to one or more prospective buyers. The seller tries to persuade the buyer to accept a point of view or take action. Frequently, the traditional view of personal selling creates a win-lose outcome at the expense of the buyer.

Relationship selling emphasizes a win-win outcome and the accomplishment of mutual objectives that benefit both buyer and salesperson in the long-term.

The goal is a long-term, committed relationship based on trust and customer loyalty.

Personal selling is increasingly dependent on the Internet to attract potential buyers seeking information.
Traditional selling
Attempts to persuade the buyer into a specific point of view. Win-lose outcome
Relationship selling
Long-term relationships, create a win-win outcome
Consultative salesperson must know everything about
Product or service, customers, competition, industry
key steps of selling process
Generating leads, qualifying leads, approaching the customer and probing needs, developing and proposing solutions, handing objections, closing the sale, follow up.

Relationship/consultative selling - high: qualifying leads, approaching the customer and probing needs, developing and proposing solutions, following up.

Traditional selling - high: Generating leads, handling objections, closing the sale
Steps in the selling process
Generate leads - not fun
Qualify leads - strategic
Probe customer needs - listen
Develop solutions - work for customer
Handle objections - view as opportunities
Close the sale - don't fear
Follow up - where the relationship really occurs

Completing a sale requires several steps. It can be unique for each product or service, depending on the features of the product, characteristics of customer segments, and internal processes within the firm, such as how sales leads are generated.
Key differences between traditional selling and relationship selling
Traditional personal selling: sell products, focus on closing sales, limited sales planning, spend most contact time telling customers about product, conduct "product-specific" needs assessment, "lone wolf" approach to the account, proposals and presentations based on pricing and product features, sales follow-up is short term, focused on product delivery.

Relationship or consultative selling: Sell advice, assistance, and counsel, focus on improving the customer's bottom line, consider sales planning as top priority. spend most contact time attempting to build a problem-solving environment with the customer, conduct discovery in the full scope of the customer's operations, team approach to the account, proposals and presentations based on profit impact and strategic benefits to the customer, sales follow-up is long term, focused on long-term relationship enhancement

The end result of relationship selling tends to be loyal customers who purchase from the company time after time. A relationship selling strategy focused on retaining customers costs a company less than prospecting and selling to new customers.