PowerPoint by Yu Hongyan Business School of Jilin University Chapter 16 Designing and Managing Integrated Marketing Communications.

PowerPoint by Yu Hongyan Business School of Jilin University

Chapter 16

Designing and Designing and Managing Managing Integrated Integrated Marketing Marketing

CommunicationsCommunications

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.

Marketing Communications

AdvertisingDirect

Marketing

Sales Promotion

Public Relations

Personal Selling

Discussion Scenario Research has shown that many people treat

their pets as they would true members of the family.

Suppose you opened a bakery that made only nutritional pet treats, doggy birthday cakes and “cheesecakes”, and made-to-order pet food. How could you use each of the previously mentioned marketing communications platforms in your business?

Developing Effective Marketing Communications

Identify target audience Determine objectives of

communication Design the message Select communication

channels

Establish the budget Select the marketing

communications mix Measure results Manage the IMC process

Steps in Marketing Communications Program Development

Developing Effective Marketing Communications

Step 1: Identifying the target audience Includes assessing the audience’s

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

Developing Effective Marketing Communications

BehavioralCognitive

Affective

Objectives

BeliefsKnowledge

FeelingsEmotions

IntentionsActions

Developing Effective Marketing Communications

Figure 16-1: Response

Hierarchy Models

Developing Effective Marketing Communications

Message Design

Content Structure Format Source

Message content decisions involve the selection of appeal, theme, idea, or USP

Types of appeals Rational appeals Emotional appeals Moral appeals

Discussion Scenario

Consider the pet bakery example discussed earlier in this presentation.

What tactics would you use to make rational, emotional and/or moral appeals? Which type of appeal would you favor using and why?

Developing Effective Marketing Communications

Message Design

Content Structure Format Source

One-sided vs. two-sided messages

Order of argument presentation

Developing Effective Marketing Communications

Message Design

Content Structure Format Source

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

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 derives from two-step flow-of-com

munication process

Developing Effective Marketing Communications

Devoting extra effort to influential individuals or companies

Creating opinion leaders Working through influential

community members Using influential people in

testimonial advertising

Developing advertising with high “conversation value”

Use viral marketing Developing word-of-mouth

referral channels Establishing an electronic

forum

Methods of Stimulating Personal Communication

Discussion Scenario Once again, think back to the pet bakery

example discussed earlier in this presentation.

What specific methods would you undertake to stimulate personal communication, and how would you go about implementation?

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

Developing Effective Marketing Communications

Figure 16-2: Cost-Effectiveness of Different Promotional Tools at

Different Buyer-Readiness Stages

Developing Effective Marketing Communications

Communications Mix Selection

Types of promotional tools

Selection factors

Advertising Sales promotion Public relations and

publicity Direct marketing Personal selling

Developing Effective Marketing Communications

Communications Mix Selection

Types of promotional tools

Selection factors

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

Developing and Managing the Advertising Campaign

Figure 16-3: The Five Ms of Advertising

Developing and Managing the Advertising Campaign

The Five Ms of Advertising

Mission Money Message Media Measurement

Objectives can be classified by aim: Inform Persuade Remind Reinforce

Developing and Managing the Advertising Campaign

Factors considered when budget-setting: Stage of product life

cycle Market share and

consumer base Competition and clutter Advertising frequency Product substitutability

The Five Ms of Advertising

Mission Money Message Media Measurement

Developing and Managing the Advertising Campaign

Factors considered when choosing the advertising message: Message generation Message evaluation

and selection Message execution Social responsibility

review

The Five Ms of Advertising

Mission Money Message Media Measurement

Developing and Managing the Advertising Campaign

Developing media strategy involves: Deciding on reach,

frequency, and impact

Selecting media and vehicles

Determining media timing

Deciding on geographical media allocation

The Five Ms of Advertising

Mission Money Message Media Measurement

Developing and Managing the Advertising Campaign

Radio Outdoor

Yellow Pages

Newspapers

Telephone

Direct Mail

Television

Magazines

Brochures

Internet

Newsletters

MajorMedia Types

Developing and Managing the Advertising Campaign

Does satellite radio threaten the future of radio advertising?

Developing and Managing the Advertising Campaign

Wireless technologies have recently emerged as a new media channel

Developing and Managing the Advertising Campaign

Deciding on Media Categories Target audience’s media habits, nature of

the product and message, cost Media Timing Decisions

Macroscheduling vs. microscheduling Continuity, concentration, flighting, and pul

sing scheduling options Deciding on Geographical Allocation

Developing and Managing the Advertising Campaign

Evaluating advertising effectiveness Communication-

effect research Sales-effect research

The Five Ms of Advertising

Mission Money Message Media Measurement

Developing and Managing the Advertising Campaign

Figure 16-4: Formula for Measuring Sales Impact of Advertising

Sales Promotion Sales promotions are short-term incenti

ves designed to stimulate purchase among consumers or trade

Purpose of sales promotion Attract new triers or brand switchers Reward loyal customers Increase repurchase rates

Sales Promotion

Technology simplifies coupon redemption for online consumers

Sales Promotion

Establish objectives Select consumer-

promotion tools Select trade-

promotion tools

Select business- and sales force promotion tools

Develop the program Pretest the program

Steps in Sales Promotion Program Development

Implement and evaluate the program

Sales Promotion

Prizes Coupons

POP Displays & Demonstrations

Cross-Promotions

Patronage Awards

Samples

Product Warranties

Cash Refunds

Free Trials

Premiums

Tie-in Promotions

MajorConsumer

SalesPromotion

Tools

Public Relations

Corporate Communications

Public relations activities promote or protect the image of the firm via:

Counseling Lobbying

Product Publicity Public Relations

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

Public RelationsMajor Public Relations Tools

Public-service ActivitiesPublic-service ActivitiesIdentity MediaIdentity MediaSponsorshipsSponsorshipsPublicationsPublications

SpeechesSpeechesEventsEventsNewsNews

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.

Direct Marketing Channels

TV Marketing

Major Direct Marketing Tools

Kiosk Telemarketing

Catalog

Direct Mail

Online

Face-to-Face

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