Dr. Saleh Alqahtani. Chapter 19 Chapter 19 Managing Integrated Managing Integrated Marketing Communications Marketing Communications by by
Dec 19, 2015
Dr. Saleh Alqahtani.
Chapter 19 Chapter 19 Managing Integrated Managing Integrated Marketing CommunicationsMarketing Communicationsbyby
Dr. Saleh Alqahtani.
Integrated marketing communications is a way of looking at the whole marketing process from the viewpoint of the customer.
Kotler on Marketing
Dr. Saleh Alqahtani.
Chapter Objectives In this chapter, we focus on three major In this chapter, we focus on three major
questions:questions: How does communication work?How does communication work? What are the major steps in developing an What are the major steps in developing an
integrated marketing communications integrated marketing communications program?program?
Who should be responsible for marketing Who should be responsible for marketing communication planning?communication planning?
Dr. Saleh Alqahtani.
AdvertisingAdvertising
Personal SellingPersonal Selling
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.
Sales Promotion Short-term Incentives to Encourage Trial or Purchase.
Public Relations
Direct MarketingDirect Communications With Individuals to Obtain an Immediate Response.
Protect and/or Promote Company’s Image/products.
Personal Presentations.
The Marketing Communications Mix
Dr. Saleh Alqahtani.
Elements in the Communication Process
SENDERSENDEREncodingEncoding DecodingDecoding
RECEIVERRECEIVER
MediaMedia
Message
FeedbackFeedback ResponseResponse
NoiseNoise
Dr. Saleh Alqahtani.
Effective CommunicationsStep 1. Identifying the Target AudienceStep 1. Identifying the Target Audience
PurchasePurchase
Conviction
Preference
Liking
Knowledge
Awareness
Step 2. Determining the Communication ObjectivesBuyer Readiness Stages
Step 2. Determining the Communication ObjectivesBuyer Readiness Stages
Dr. Saleh Alqahtani.
Response Hierarchy Models
Communi-cationsModel d
AIDAModel a
Innovation-AdoptionModel c
Hierarchy-of-Effects Model b
Stages
Cognitivestage
Affectivestage
Behaviorstage
Awareness
Trial
Adoption
Interest
Evaluation
Purchase
Liking
Preference
Conviction
Awareness
Knowledge
Attention
Interest
Desire
Action Behavior
Attitude
Intention
Exposure
Reception
Cognitiveresponse
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Message SourceExpertise,
Trustworthiness,Congruity
Step 3. Designing the MessageStep 3. Designing the Message
Message FormatLayout,
Words, & Sounds,Body Language
Message StructureDraw Conclusions
Argument TypeArgument Order
Message ContentRational Appeals
Emotional AppealsMoral Appeals
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Step 4. Select Communications ChannelStep 4. Select Communications Channel
Nonpersonal CommunicationChannels
Personal CommunicationChannels
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Step 5. Establish the BudgetStep 5. Establish the Budget
CompetitiveParity
Objective& Task
Affordable% OfSales
Dr. Saleh Alqahtani.
Step 6. Decide on Communications MixStep 6. Decide on Communications Mix
AdvertisingPublic, Pervasive, Expressive, Impersonal
AdvertisingPublic, Pervasive, Expressive, Impersonal
Sales PromotionCommunication, Incentive, Invitation
Sales PromotionCommunication, Incentive, Invitation
Public Relations & PublicityCredibility, Surprise, DramatizationPublic Relations & Publicity
Credibility, Surprise, Dramatization
Personal SellingPersonal Confrontation, Cultivation, Response
Personal SellingPersonal Confrontation, Cultivation, Response
Direct MarketingNonpublic, Customized, Up-to-Date, Interactive
Direct MarketingNonpublic, Customized, Up-to-Date, Interactive
Dr. Saleh Alqahtani.
Step 7. Measure ResultsStep 7. Measure Results
Step 8. Manage the IMC ProcessStep 8. Manage the IMC Process
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Product Life-Cycle
Stage
Type of Product/ Market
Push vs. Pull
Strategy
Factors in Developing Promotion Mix Strategies
Factors in Developing Promotion Mix Strategies
Buyer/ Readiness
Stage
Dr. Saleh Alqahtani.
Push Versus Pull Strategy
Producer
Producer
Interme-diaries
Marketingactivities
End users
Marketingactivities
Demand Interme-diaries
Demand
Push Strategy
Pull Strategy
End users
Marketing activities
Demand
Dr. Saleh Alqahtani.
Managing the Integrated Marketing Communications Process
Integrated Marketing Communications Integrated Marketing Communications (IMC)(IMC)
Dr. Saleh Alqahtani.
Chapter 20 Chapter 20 Managing Advertising, Sales Managing Advertising, Sales Promotion, Public Relations, Promotion, Public Relations, and Direct Marketingand Direct Marketingbyby
Dr. Saleh Alqahtani.
Chapter Objectives In this chapter, we focus on the following In this chapter, we focus on the following
questions:questions: What steps are involved in developing an What steps are involved in developing an
advertising program?advertising program? What explains the growing use of sales What explains the growing use of sales
promotion, and how are sales-promotion promotion, and how are sales-promotion decisions made?decisions made?
How can companies exploit the potential of How can companies exploit the potential of public relations and publicity?public relations and publicity?
How can companies use integrated direct How can companies use integrated direct marketing for competitive advantage?marketing for competitive advantage?
How can companies do effective e-marketing?How can companies do effective e-marketing?
Dr. Saleh Alqahtani.
Major Decisions in AdvertisingMajor Decisions in Advertising
Objectives SettingObjectives Setting
Budget DecisionsBudget Decisions
Message DecisionsMessage Decisions Media DecisionsMedia Decisions
Campaign EvaluationCampaign Evaluation
Dr. Saleh Alqahtani.
Informative AdvertisingBuild Primary Demand
Informative AdvertisingBuild Primary Demand
Persuasive AdvertisingBuild Selective Demand
Persuasive AdvertisingBuild Selective Demand
Comparison AdvertisingCompares One Brand to
Another
Comparison AdvertisingCompares One Brand to
Another
Reminder AdvertisingKeeps Consumers Thinking
About a Product.
Reminder AdvertisingKeeps Consumers Thinking
About a Product.
Advertising Objectives
Specific Communication Specific Communication Task Task Accomplished with a Specific Accomplished with a Specific TargetTarget Audience Audience During a Specific Period of During a Specific Period of TimeTime
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The Five Ms of Advertising
Mission
Salesgoals
Adver-tisingobjectives
Money
Factors toconsider:
Stage in PLC
Market shareand con-sumer base
Competitionand clutter
Advertisingfrequency
Productsubstituta-bility
Message
Message generation
Message evaluationand selection
Message execution
Social-responsibilityreview
MediaReach, frequency,impactMajor media typesSpecific mediavehicles
Media timingGeographicalmedia allocation
Measure-ment
Communi-cationimpact
Salesimpact
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Advertising Budget Factors
Stage in the Product Life Cycle
Market Share &Consumer Base
Competition &Clutter
AdvertisingFrequency
ProductSubstitutability
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Profiles of Major Media Types
NewspapersAdvantages: Flexibility, timeliness; good local market coverage;
broad acceptance, high believability
Limitations: Short life; poor reproduction quality; smallpass-along audience
TelevisionAdvantages: Combines sight, sound, motion; high attention; high reach; appealing to senses
Limitations: High absolute costs; high clutter; fleeting exposure;less audience selectivity
Direct MailAdvantages: Audience selectivity; flexibility, no ad compe-
tition within same medium; allows personalization
Limitations: Relative high cost; “junk mail” image
Dr. Saleh Alqahtani.
RadioAdvantages: Mass use; high geographic and demographic
selectivity; low cost
Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences
MagazinesAdvantages: High geographic and demographic selectivity;
credibility and prestige; high-quality reproduction;long life; good pass-along readership
Limitations: Long ad purchase lead time; waste circulation; no guarantee of position
OutdoorAdvantages: Flexibility; high repeat exposure; low cost; low message competition
Limitations: Little audience selectivity; creative limitations
Profiles of Major Media Types
Dr. Saleh Alqahtani.
Classification ofAdvertising Timing Patterns
Month
Number ofmessagesper month
Concen-trated
(1) (2) (3)Level Rising Falling Alternating
(4)
Continuous
(8)(7)(6)(5)
(9)Inter-
mittent
(10) (11) (12)(9)
Dr. Saleh Alqahtani.
Simplified Rating Sheet for Ads
PoorPooradad
MediocreMediocreadad
AverageAverageadad
GoodGoodadad
GreatGreatadad
0 20 40 60 80 100 __Total__Total
(Attention) How well does the ad catch the reader’s attention? __20(Read-through) How well does the ad lead the reader to read further? __20(Cognitive) How clear is the central message or benefit? __20(Affective) How effective is the particular appeal? __20(Behavior) How well does the ad suggest follow-through action? __20
Dr. Saleh Alqahtani.
Advertising Strategy Message ExecutionAdvertising Strategy Message Execution
TypicalMessage
ExecutionStyles
TypicalMessage
ExecutionStyles
TestimonialEvidence
TestimonialEvidence Slice of LifeSlice of Life
ScientificEvidence
ScientificEvidence
LifestyleLifestyle
TechnicalExpertise
TechnicalExpertise
FantasyFantasy
MusicalMusical
PersonalitySymbol
PersonalitySymbol
Mood orImage
Mood orImage
Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.
Dr. Saleh Alqahtani.
Advertising Program EvaluationAdvertising Program Evaluation
Communication Effects
Is the Ad Communicating Well?
Communication Effects
Is the Ad Communicating Well?
Advertising Evaluation
Sales Effects
Is the Ad Increasing Sales?
Sales Effects
Is the Ad Increasing Sales?
Dr. Saleh Alqahtani.
Why the increase in Sales Promotion?
Growing retailer powerGrowing retailer power Declining brand loyaltyDeclining brand loyalty Increased promotional sensitivityIncreased promotional sensitivity Brand proliferationBrand proliferation Fragmentation of consumer marketFragmentation of consumer market Short-term focusShort-term focus Increased managerial accountabilityIncreased managerial accountability CompetitionCompetition ClutterClutter
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Long-Term Promotional Allocation
0
10
20
30
40
50
60
1986 88 90 92 94 1996
Year
%t
of
tota
l -
3 yr
.MA
Trade Promo
Media Adv
Cons. Promo
Dr. Saleh Alqahtani.
Channels of Sales Promotions
MANUFACTURER
RETAILER
TradeTradePromotionsPromotions
CONSUMER
ConsumerConsumerPromotionsPromotions
Push
PushPullRetailRetail
PromotionsPromotions
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Consumer PromotionConsumer Promotion
Consumer-Promotion Objectives
Consumer-Promotion Tools
Point-of-PurchaseDisplays
Point-of-PurchaseDisplays
PremiumsPremiums
Price PacksPrice Packs
Cash RefundsCash Refunds
CouponsCoupons
SamplesSamples
Patronage Rewards
Patronage Rewards
GamesGames
SweepstakesSweepstakes
ContestsContests
AdvertisingSpecialties
AdvertisingSpecialtiesPatronage Rewards
Entice Consumers to Try a New Product
Entice Consumers to Try a New Product
Lure Customers AwayFrom Competitors’ Products
Lure Customers AwayFrom Competitors’ Products
Get Consumers to “Load Up’on a Mature Product
Get Consumers to “Load Up’on a Mature Product
Hold & Reward Loyal Customers
Hold & Reward Loyal Customers
Consumer Relationship Building
Consumer Relationship Building
Dr. Saleh Alqahtani.
Trade-Promotion Objectives
Trade-Promotion Tools
Specialty Advertising
Items
Specialty Advertising
ItemsContestsContests
Free GoodsFree Goods
Buy-BackGuarantees
Buy-BackGuarantees
AllowancesAllowances
Price-OffsPrice-Offs
Patronage Rewards
Patronage Rewards
Push MoneyPush Money
DiscountsDiscounts
PremiumsPremiums
Displays
Persuade Retailers or Wholesalers to Carry a Brand
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf SpaceGive a Brand Shelf Space
Promote a Brand in Advertising
Promote a Brand in Advertising
Push a Brand to ConsumersPush a Brand to Consumers
Trade Promotions
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Business-Promotion Objectives Business-Promotion
ToolsGenerate Business LeadsGenerate Business Leads
Stimulate PurchasesStimulate Purchases
Reward CustomersReward Customers
Motivate SalespeopleMotivate Salespeople
ConventionsConventions
Trade ShowsTrade Shows
Sales ContestsSales Contests
Business-to-Business Promotion
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SpecialEvents
SpecialEvents
Written MaterialsWritten
Materials
Corporate Identity Materials
Corporate Identity Materials
SpeechesSpeeches
NewsNews
AudiovisualMaterials
AudiovisualMaterials
Major Public Relations ToolsMajor Public Relations Tools
Public Service
Activities
Public Service
Activities
Web SiteWeb Site
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Direct Marketing
Direct-Order MarketingDirect-Order Marketing Customer Relationship MarketingCustomer Relationship Marketing
The Growth of Direct MarketingThe Growth of Direct Marketing Market DemassificationMarket Demassification
The Benefits of Direct MarketingThe Benefits of Direct Marketing Integrated Direct MarketingIntegrated Direct Marketing
Dr. Saleh Alqahtani.
Direct Marketing
Major Channels for Direct MarketingMajor Channels for Direct Marketing Face-To-Face SellingFace-To-Face Selling Direct MailDirect Mail
New Forms of Mail DeliveryNew Forms of Mail Delivery Fax mailFax mail E-mailE-mail Voice mailVoice mail
Dr. Saleh Alqahtani.
Direct Marketing Direct marketing has passed through a number Direct marketing has passed through a number
of stages:of stages: Carpet bombingCarpet bombing Database marketingDatabase marketing Interactive marketingInteractive marketing Real-time personalized marketingReal-time personalized marketing Lifetime value marketingLifetime value marketing
Constructing a Direct-Mail CampaignConstructing a Direct-Mail Campaign ObjectivesObjectives Target Markets and ProspectsTarget Markets and Prospects Offer ElementsOffer Elements Testing ElementsTesting Elements Measuring Campaign Success: Lifetime ValueMeasuring Campaign Success: Lifetime Value
Dr. Saleh Alqahtani.
Direct Marketing
Catalog MarketingCatalog Marketing Telemarketing and M-CommerceTelemarketing and M-Commerce
Inbound telemarketingInbound telemarketing Outbound telemarketingOutbound telemarketing Four types of telemarketing:Four types of telemarketing:
TelesalesTelesales TelecoverageTelecoverage TeleprospectingTeleprospecting Customer service and technical supportCustomer service and technical support
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Direct Marketing
Other Media for Direct-Response MarketingOther Media for Direct-Response Marketing Direct-response advertisingDirect-response advertising At-home shopping channelsAt-home shopping channels Videotext and interactive TVVideotext and interactive TV
Kiosk MarketingKiosk Marketing
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Direct Marketing E-MarketingE-Marketing
Permission MarketingPermission Marketing Levels of Permission Marketing:Levels of Permission Marketing:
No permission levelNo permission level Low permission levelLow permission level Medium permission levelMedium permission level High permission levelHigh permission level Transaction levelTransaction level
E-Marketing GuidelinesE-Marketing Guidelines Give the customer a reason to respondGive the customer a reason to respond Personalize the content of your e-mailsPersonalize the content of your e-mails Offer something the customer could not get via direct mailOffer something the customer could not get via direct mail Make it easy for the customer to “unsubscribe”Make it easy for the customer to “unsubscribe”