Marketing Communications

What is Integrated Marketing Communications?

Introduction to Marketing Communications L3

Prepared by: Brian Rutherford

Promotion

Integrated Marketing Communications

Non-Personal Communications

Personal Communications

Seller Buyer

ProductPlacePrice

Promotion

Value

Plan

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g

Execu

ting

Promotion

Integrated Marketing Communications

Seller Buyer

ProductPlacePrice

Promotion

Value

Plan

nin

g

Execu

ting

Objectives Types of managers

Communication Process

Promotion

What is integrated marketing communications

Managing the marketing communication process

Definition Promotion- is communicating information between seller and potential

buyer or others in the channel to influence attitudes and behavior

Integrated marketing communications- the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message

Personal selling- involves direct spoken communication between sellers and potential customers

Mass selling- is communicating with large numbers of potential customers at the same time

(Source: Perreault and McCarthy 382-383 and 386)

Managing the Marketing Communication Process

Types of Managers in the IMC Process

Sales managers- are concerned with managing personal selling

Advertising managers- manage their company’s mass-selling efforts

Sales promotion managers- manage their company’s sales promotion effort

(Source: Perreault and McCarthy)

Communication Process

Source Encoding Message Channel

Decoding Receiver

Feedback

Noise

Types of Communication

Promotion

Personal Selling Advertising

Public Relations

Marketing

Product Place Price

Sales Promotion Direct Marketing

Managing the Marketing Communication Process

Integrated marketing communications- the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message

Five basic features must be included in IMC 1) Start with the customer or prospect 2) Use relevant forms of contact 3) Achieve synergy 4) Build relationships 5) Affect behavior

(Source: Hoffman et al)

Managing the Marketing Communication Process

Eight Steps of Developing Effective Communications

1) Identify the Target Audience 2) Determine the Communication Objectives 3) Design the Message 4) Select the Communication Channels 5) Establish the Communications Budget 6) Deciding on the Marketing Communications Mix

(which promotional tools should be used) 7) Measuring Results 8) Manage Integrated Communications

(Source: Kotler)

Managing the Marketing Communication Process

(Source: Kolter)

Identify Target Audience

Determine Objectives

Design Message

Select Channels

Establish Budget

Decide on Media Mix

Measure Results

Manage

Managing the Marketing Communication Process

Six Primary Steps 1) Selecting target markets 2) Establishing objectives 3) Formulating a positioning strategy

(Design the Message/ Select the Communication Channels)

4) Setting the budget 5) Formulating and implementing message and media strategies

(Deciding on the Marketing Communications Mix)

6) Evaluating program effectiveness (Measure Results/ Manage Integrated Communications)

(Source: Hoffman et al)

Managing the Marketing Communication Process

Identify the Target Audience

Company Image- beliefs, ideas, and impressions a person holds regarding the company

(Source: Kotler)

Brand Awareness- whether a brand name comes to mind when consumers think about a particular product

category and the ease with which the name is evoked(Source: Hoffman et al)

Brand Recognition Brand Recall

Brand Image- types of associations that come to the consumer’s mind when contemplating a

particular brand

(Source: Hoffman et al)

Managing the Marketing Communication Process

Identify the Target Audience

Market segments- are those segments of the market or submarkets that seek similar benefits

from product usage, and that shop and buy in similar ways that are different from other market segments and submarkets

Consists groups of consumers who are alike based on some characteristics Target markets-

are those market segments whose needs and demands a company seeks to serve and satisfy

(Source: Hoffman et al)

Managing the Marketing Communication Process

Determine the Communication Objectives

Hierarchy-of-effects model

Purchase

Purchase Intention

Attitude

Beliefs/Knowledge

Awareness

Unawareness

Managing the Marketing Communication Process

Determine the Communication Objectives

1) Inform

2) Persuade

3) Remind

(Source: Perreault and McCarthy)

Managing the Marketing Communication Process

Design the Message

AIDA Model

Attention

Hold Interest

Arouse Desire

Obtain Action

(Source: Perreault and McCarthy)

Managing the Marketing Communication Process

Design the Message

Message Content/Message Structure- appeal, theme, idea, or unique selling proposition

Rational appeal Moral appeals Emotional appeal

Message Format- layout, wording, quality

Message Source- Who is delivering the message

Principle of congruity- implies that communicators can use their good image to reduce some negative feeling toward a brand but in the process might lose some esteem with the audience

(Source: Kotler)

Managing the Marketing Communication Process

Select the Communication Channels

The communicator should select the most efficient channels to carry the message

Personal communication channels

Non-personal communication channels

(Source: Kotler)

Managing the Marketing Communication Process

Establish the Communications Budget

Top-down-Budgeting- senior management decides how much each subunit receives

Bottom-up budgeting- when managers of subunits determine how much is needed to achieve their objectives

Most budgeting practices involve a combination of top-down and bottom-up budgeting

(Source: Hoffman et al)

Managing the Marketing Communication Process

Establish the Communications Budget

Affordable Method- what they think they can afford

Percentage-of-Sales Method- specified percentage of sales

Competitive-Parity Method- achieve share-of-voice parity with competitors

Objective-and-Task Method-calls for marketers to develop promotion budgets by defining specific objectives, determining the tasks that must be performed to achieve these objectives, and estimating the costs of performing these tasks

(Source: Kolter)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix

Personal Selling- is person-to-person communication in which a seller informs and educates prospective customers and attempts to influence their purchase choices

(Source: Hoffman et al)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix

Personal Selling

Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows

(Source: Kotler)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix

Advertising- is non-personal communication that is paid for by an identified sponsor, and involves either mass communication via newspapers, magazines, radio, television, and other media or direct-to-consumer communication via direct mail

(Source: Hoffman et al)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix

Advertising Print and broadcast ads Brochures Billboards Signs Point-of-purchase displays *** Symbols and logos

(Source: Kotler)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix

Public Relations- communication with non-customers—including labor, public interest groups, stockholders, and the government

(Source: Perreault and McCarthy)

Publicity- like advertising, is non-personal communication to a mass audience, but unlike advertising, publicity is not directly paid for by the company that enjoys the publicity

(Source: Hoffman et al)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix

Public Relations Press kits Charitable donations Sponsorships Community relations Events

(Source: Kotler)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix

Sales promotion- consists of all marketing activities that attempt to stimulate quick buyer action, or, in other words, attempt to promote immediate sales of a product

(Source: Hoffman et al)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix

Sales Promotion Contests, games, sweepstakes Sampling Fairs and trade shows Exhibits Coupons Rebates

(Source: Kotler)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix

Direct marketing- direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling

(Source: Perreault and McCarthy)

Managing the Marketing Communication Process

Deciding on the Marketing Communications Mix

Direct Marketing Catalogs Mailings Telemarketing*** Electronic Shopping TV Shopping E-mail

(Source: Kotler)

Managing the Marketing Communication Process

Measuring the Communication Results

How is the company doing?

Revenues

Expenses

How are consumers responding?

Outcomes

Managing the Marketing Communication Process

Managing the Integrated Marketing Communication process

Pre vs. Post implementation

Reevaluate steps one through eight to make sure they are inline as the marketing environment changes

Changes in the product life cycle

Changes in consumers (adoption process)

Push vs. Pull

Product Life Cycle Market Introduction

Primary demand- demand for the general product idea Not just for the company's own brand

Market Growth Selective demand-for a company’s own brand

The main job is to persuade customers to buy and keep buying the companies products

Market Maturity Products may require more aggressive personal selling and advertising Strong brands can use reminder-type advertising

Sales Decline Promotion decreases to cut costs Promotion may increase to try to slow the cycle down

(Source: Perreault and McCarthy)

IntroductionIntroduction GrowthGrowth MaturityMaturity DeclineDecline

Product Life Cycle (Source: Hoffman et al)

Adoption Processes Innovators- first adaptors

Mobile and have many contacts Early Adopters-well respected and often are the opinion leaders

Younger, mobile, and creative Early Majority-avoid risk and wait to other have tried

Contact early adopter opinion leaders, salespeople, and use mass media Late Majority- cautious of new ideas

Older and less likely to follow opinion leaders and early adopters Laggards-prefer to do things the way they have been done in the past

Very suspicious of new ideas, older, and less educated Low income and social status

(Source: Perreault and McCarthy)

Innovators

EarlyAdopters Laggards

EarlyMajority

LateMajority

Adoption Process (Source: Hoffman et

al)

13.5%2.5%

34%

34%

16%

Push vs. Pull Strategies Push- involves aggressive trade allowances and personal selling efforts to

obtain distribution for a new brand through wholesalers and retailers. The brand is “pushed” through the channel system in the sense that there is a forward thrust from the manufacturer to the trade

(Source: Hoffman et al)

Wholesaler Retailer ConsumerManufacture

Push vs. Pull Strategies Pull- involves a relatively heavy emphasis on consumer-oriented advertising

to encourage consumer demand for a new brand and thereby obtain retail distribution. The brand is “pulled” through the channel system in the sense that there is a backward tug from the consumer to the retailer

(Source: Hoffman et al)

Manufacture Wholesaler Retailer Consumer