MG 220 Marketing Management MBA 10 Fall 2010 Muhammad Talha Salam, Asst. Professor [email protected]Access it online: www.slideshare.net/talhasalam Part 7: Communicating Value > The Role of Marketing Communications > Developing Effective Communications > Deciding on Marketing Communications Mix > Managing the Integrated Marketing Communications Process Class Presentation | Session 30 | 25 N
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> The Role of Marketing Communications> Developing Effective Communications> Deciding on Marketing Communications
Mix> Managing the Integrated Marketing
Communications Process
Class Presentation | Session 30 | 25 Nov 2010
MG 220 Marketing Management 2Access it online: www.slideshare.net/talhasalam
The Role of Marketing CommunicationsConceptMarketing Communication and Brand Equity• The means by which firms attempt to inform, persuade, and remind
consumers, directly or indirectly, about the products and brands they sell
Marketing Communications Mix
MG 220 Marketing Management 3Access it online: www.slideshare.net/talhasalam
The Role of Marketing CommunicationsConceptMarketing Communications Mix - Definitions• Advertising
Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor
• Sales PromotionA variety of short-term incentives to encourage trial or purchase of a product or service
• Events & ExperiencesCompany-sponsored activities and programs designed to create daily or special brand-related interactions
• Public Relations & PublicityA variety of programs designed to promote or protect a company’s image or its individual products
• 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
• Personal SellingFace to face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders
MG 220 Marketing Management 4Access it online: www.slideshare.net/talhasalam
The Role of Marketing CommunicationsConceptMarketing Communications Mix - Examples• Advertising
Print and broadcast ads, Brochures, Posters, Billboards, POP displays
– Non-Personal Channels• Media• Sales Promotions• Events and Experiences• Public Relations
– Integration of Communication Channels
MG 220 Marketing Management 10
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC
Access it online: www.slideshare.net/talhasalam
Developing Effective Communications
• Establish Total Mktg. Comm. Budget– Affordable Method– Percentage-of-Sales method
• More result oriented, variable cost• No logical basis for choosing the “%age”
– Competitive-Parity method• Budget established to achieve ‘share-of-voice’ parity with comp.• Collective wisdom (?) & preventing promotion wars (?)
– Objective-and-task method• Establish market share goal• Determine %age of market that should be reached by advertising• Determine %age of aware prospects that should be persuaded• Determine number of ad impressions per 1 percent trial rate• Determine number of Gross Rating points (GRPs)• Determine req. advertising budget on basis of avg. cost of GRP
MG 220 Marketing Management 11
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC
Access it online: www.slideshare.net/talhasalam
Deciding on Marketing Communications MixCharacteristics of Marketing Comm. MixAdvertising• Long-term image | trigger sales | reach geog. dispersed customers
– Pervasiveness (several repetitions)– Amplified expressiveness– Impersonality (it is monologue)
Public Relation & Publicity• Coordinated with other elements of mix
– High credibility– Ability to catch buyers “off-guard”– Dramatization
MG 220 Marketing Management 12
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC
Access it online: www.slideshare.net/talhasalam
Deciding on Marketing Communications MixCharacteristics of Marketing Comm. MixEvents & Experiences• Costly yet having many advantages
– Relevant– Involving– Implicit
Direct Marketing• Forms: Direct Mail, telemarketing, internet marketing
– Customized– Up-to-date– Interactive
Personal Selling• Most effective in later stages, good for building preferences
– Personal interaction– Cultivation– Response
MG 220 Marketing Management 13
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC
Access it online: www.slideshare.net/talhasalam
Deciding on Marketing Communications MixFactors in Setting the Marketing Comm. MixType of Product Market• Consumer markets: more spend on sales prom. & advertising• Business markets: more on personal sellingBuyer-Readiness Stage• Cost-effectiveness of communication tools vary at different stages
of buyer readiness
Product Life-Cycle Stage• Cost effectiveness of communication tools vary as with PLC stages
MG 220 Marketing Management 14
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC
Access it online: www.slideshare.net/talhasalam
Deciding on Marketing Communications MixMeasuring Communication ResultsFeedback Measurement
• After implementing the plan:• Impact on target audience is to be measured• Surveyed to ask:
– Whether they have recall– How many times they saw it– What points they recall
• A good example of measured results:
MG 220 Marketing Management 15
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC
Access it online: www.slideshare.net/talhasalam
Managing the IMC – Integrated Marketing Communications
Coordinating Media• Personal and Non-personal channels to be coordinated
Implementing IMC• IMC concept has been relatively slow to take hold:
– Large companies have several specialist organizations– They don’t know much about other channels/tools– Global companies use different agencies in different countries
• Still a few agencies have improved by integrating with differentspecialist companies – by acquiring them