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DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS A. The Role of Marketing Communications B. Developing Effective Communications C. Deciding on the Marketing Communications Mix D. Managing the Integrated Marketing Communications Process A. THE ROLE OF MARKETING COMMUNICATIONS informs, persuades, and reminds is the voice of the brand establishes dialogues builds relationships A1. MARKETING COMMUNICATIONS AND BRAND EQUITY Advertising (Promotion of ideas, goods or services) Sales promotion (To encourage trial or purchase) Events and experiences (Activities and programs to create interactions) Public relations and publicity (Programs to promote or protect the image or products) Direct marketing (Use of mail, telephone, fax, internet to communicate with customers and prospects) Personal selling (Face to face presentations, answering, procuring) A2. THE COMMUNICATIONS PROCESS MODELS A2a. MACROMODEL OF THE COMMUNICATIONS PROCESS Selective attention (Bombardments of ads to grab attentions through fear, music, bold headlines, promises - ads for TV, radio 30% and for magazines, newspapers 50%) Selective distortion (Receivers hear what fits into their beliefs, add things that are not said and amplify the messages) Selective retention (People keep only a small part of the message in long-term the initial attitude is positive or negative matters) A2b. MICROMODEL OF CONSUMER RESPONSES Awareness (Build awareness if most is unaware) Knowledge (Have brand awareness but not much knowledge) Liking (Know the brand but dislike) Preference (Like the product but not prefer due to possibly quality, value, performance and other features) Conviction (Prefer but not convinced) Purchase (Convinced but no purchase offer low price, premium, let them try outs) B. DEVELOPING EFFECTIVE COMMUNICATIONS Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Measure results Manage integrated marketing communications

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Page 1: DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS ... · designing and managing integrated marketing communications designing and managing integrated marketing communications

DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS

DESIGNING AND MANAGING INTEGRATED

MARKETING COMMUNICATIONS

A. The Role of Marketing Communications

B. Developing Effective Communications

C. Deciding on the Marketing Communications Mix

D. Managing the Integrated Marketing Communications Process

A. THE ROLE OF MARKETING COMMUNICATIONS

• informs, persuades, and reminds

• is the voice of the brand

• establishes dialogues

• builds relationships

A1. MARKETING COMMUNICATIONS AND BRAND EQUITY

• Advertising

(Promotion of ideas, goods or

services)

• Sales promotion

(To encourage trial or purchase)

• Events and experiences

(Activities and programs to create

interactions)

• Public relations and publicity

(Programs to promote or protect

the image or products)

• Direct marketing

(Use of mail, telephone, fax,

internet to communicate with

customers and prospects)

• Personal selling

(Face to face presentations,

answering, procuring)

A2. THE COMMUNICATIONS PROCESS MODELS

A2a. MACROMODEL OF THE COMMUNICATIONS PROCESS

• Selective attention

(Bombardments of ads to grab

attentions through fear, music, bold

headlines, promises - ads for TV, radio

30% and for magazines, newspapers

50%)

• Selective distortion

(Receivers hear what fits into their

beliefs, add things that are not said

and amplify the messages)

• Selective retention

(People keep only a small part of the

message in long-term – the initial

attitude is positive or negative

matters)

A2b. MICROMODEL OF CONSUMER RESPONSES

• Awareness

(Build awareness if most is unaware)

• Knowledge

(Have brand awareness but not much

knowledge)

• Liking

(Know the brand but dislike)

• Preference

(Like the product but not prefer due to

possibly quality, value, performance

and other features)

• Conviction

(Prefer but not convinced)

• Purchase

(Convinced but no purchase – offer low

price, premium, let them try outs)

B. DEVELOPING EFFECTIVE COMMUNICATIONS

• Identify target audience • Determine objectives • Design communications • Select channels • Establish budget • Decide on media mix • Measure results • Manage integrated marketing

communications

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DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS

B1. IDENTIFY THE TARGET AUDIENCE

The process must start with a clear target

audience in mind: potential buyers of the

company's products, current users, deciders, or

influencers; individuals, groups, particular

publics, or the general public. The target

audience is a critical influence on the

communicator's decisions on what to say, how

to say it, when to say it, where to say it, and to

whom to say it.

The first step is to measure the target audience's knowledge of the object, using the familiarity scale:

Never Heard of Heard of Only Know a Little Bit Know a Fair Amount Know Very Well

B2. DETERMINE THE COMMUNICATIONS OBJECTIVES

• Category need

(A new category electric cars)

• Brand Awareness (Recognition is easier than recall.

Multiple-choice tests are generally

easier than fill-in-the-blanks tests) • Brand Attitude

Negatively oriented

(Problem removal, problem avoidance,

incomplete satisfaction, normal

depletion)

Positively oriented

(Sensory satisfaction, intellectual

stimulation, or social approval)

• Brand Purchase Intention

(Promotional offers encourage

consumers to make a mental

commitment to buy a product)

B3. DESIGN THE COMMUNICATIONS

• MESSAGE STRATEGY

• CREATIVE STRATEGY

• INFORMATIONAL APPEALS

• TRANSFORMANITIONAL

APPEALS

• MESSAGE SOURCE

1. Product - Many products are restricted or

forbidden in certain parts of the world.

2. Market Segment

3. Style

4. Local or Global

B4. SELECT THE COMMUNICATIONS CHANNELS

Selecting efficient channels to carry the message becomes more difficult as channels of communication become more fragmented and cluttered. Communications channels may be personal and nonpersonal. Within each are many subchannels.

• PERSONAL COMMUNICATIONS

CHANNELS

Personal communications channels involve two or more persons communicating directly face-to-face, person-to-audience, over the telephone, or through e-mail.

Companies can take several steps to stimulate personal influence channels to work on their behalf:

• Identify influential individuals and

companies and devote extra effort to them

• Create opinion leaders by supplying

certain people with the product on attractive terms

• Work through community influential’s

such as local disk jockeys, class presidents, and presidents of women's organizations

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DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS

• Use influential or believable people in testimonial advertising

• Develop advertising that has high "conversation value,"

• Develop word-of-mouth referral channels to build business

• Establish an electronic forum. • Use viral marketing

NONPERSONAL COMMUNICATIONS

CHANNELS

Nonpersonal channels are communications directed to more than one person and include media, sales promotions, events, and publicity. Media consist of print media (newspapers and magazines); broadcast media (radio and television); network media (telephone, cable, satellite, wireless); electronic media (audiotape, videotape, videodisk, CD-ROM, Web page); and display media (billboards, signs, posters). Most nonpersonal messages come through paid media. Sales promotions consist of consumer promotions (such as samples, coupons, and premiums); trade promotion (such as advertising and display allowances); and business and sales-force promotion (contests for sales reps). Events and experiences include sports, arts, entertainment, and cause events as well as less formal activities that create novel brand interactions with consumers. Public relations include communications

directed internally to employees of the

company or externally to consumers, other

firms, the government, and media

INTEGRATION OF COMMUNICATIONS

CHANNELS

First, the influence of mass media is mediated

by opinion leaders.

Second, consumption styles are primarily

influenced by a trickle-down or trickle-up effect

from mass media.

B5. ESTABLISH THE TOTAL MARKETING

COMMUNICATIONS BUDGET

How much to spend on promotion.

There are low- and high-spending companies.

• AFFORDABLE METHOD

• PERCENTAGE-OF-SALES METHOD

• COMPETITIVE-PARITY METHOD

• OBJECTIVE-AND-TASK METHOD

1. Establish the market share goal 2. Determine the percentage of the market that should be reached by advertising. 3. Determine the percentage of aware prospects that should be persuaded to try the brand. 4. Determine the number of advertising impressions per 1 percent trial rate. 5. Determine the number of gross rating points that would have to be purchased. 6. Determine the necessary advertising budget on the basis of the average cost of buying a gross rating point.

C. DECIDING ON THE MARKETING

COMMUNICATIONS MIX Companies must allocate the marketing

communications budget over the six major

modes of communication—advertising, sales

promotion, public relations and publicity,

events and experiences, sales force, and direct

marketing. Here is how one company touches

several bases.

C1. CHARACTERISTICS OF THE MARKETING

COMMUNICATIONS MIX

• ADVERTISING

Advertising can be used to build up a long-term

image for a product.

1. Pervasiveness

2. Amplified expressiveness

3. Impersonality

• SALES PROMOTION

Companies use sales promotion tools—

coupons, contests, premiums, and the

like—to draw a stronger and quicker buyer

response.

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DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS

Sales promotion tools offer three distinctive

benefits:

1. Communication

2. Incentive

3. Invitation

PUBLIC RELATIONS AND PUBLICITY

The appeal of public relations and publicity

is based on three distinctive qualities:

1. High credibility

2. Ability to catch buyers off guard

3. Dramatization

EVENTS AND EXPERIENCES 1. Relevant - A well-chosen event or

experience can be seen as highly relevant as the consumer gets personally involved.

2. Involving - Given their live, real-time quality, consumers can find events and experiences more actively engaging.

3. Implicit - Events are more of an indirect "soft-

sell."

DIRECT MARKETING The many forms of direct marketing—direct mail, telemarketing, Internet marketing—share three distinctive characteristics. Direct marketing is:

1. Customized - The message can be prepared to appeal to the addressed individual. 2. Up-to-date - A message can be prepared very quickly. 3. Interactive - The message can be changed

depending on the person's response.

PERSONAL SELLING

Personal selling is the most effective tool at later stages of the buying process, particularly in building up buyer preference, conviction, and action. Personal selling has three distinctive qualities: 1. Personal interaction - Personal selling

involves an immediate and interactive relationship between two or more persons. Each party is able to observe the other's reactions.

2. Cultivation - Personal selling permits all kinds of relationships to spring up, ranging from a matter-of-fact selling relationship to a deep personal friendship.

3. Response - Personal selling makes the buyer

feel under some obligation for having listened

to the sales talk.

C2. FACTORS IN SETTING THE MARKETING

COMMUNICATIONS MIX

TYPE OF PRODUCT MARKET 1. Increased stock position - Sales reps can

persuade dealers to take more stock and devote more shelf space to the company's brand.

2. Enthusiasm building - Sales reps can build dealer enthusiasm by dramatizing planned advertising and sales promotion backup.

3. Missionary selling- Sales reps can sign up more dealers. 4. Key account management - Sales reps can

take responsibility for growing business with

the most important accounts.

BUYER-READINES STAGE

PRODUCT LIFE CYCLE STAGE

C3. MEASURING COMMUNICATION RESULTS

Senior managers want to know the outcomes

and revenues resulting from their

communications investments.

After implementing the communications plan,

the communications director must measure its

impact on the target audience.

D. MANAGING THE INTEGRATED

MARKETING COMMUNICATIONS PROCESS

Such a plan evaluates the strategic roles of a

variety of communications disciplines.

D1. COORDINATING MEDIA

Multiple media organized within a tightly defined time frame can in a more powerful

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DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS

approach is the multiple-vehicle, multiple-stage campaign. crease message reach and impact. D2. IMPLEMENTING IMC

Large companies often employ several

communications specialists to work with their

brand managers. It forces management to think about every way

the customer comes in contact with the

company.