Designing and managing integrated marketing communications
#markcomm
#imc
How communications work and what marketing communications can do for a company.
It addresses how holistic marketers combine and integrate marketing communications.
Marketing communicationsMarketing communicationsare the means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell
Communication Platforms
• Advertising
• Sales promotion
• Events and experiences
• Public relations and publicity
• Direct marketing
• Interactive marketing
• Word-of-mouth marketing
• Personal selling
Communication Platforms
Advertising
Print and broadcast ads
Packaging inserts
Motion pictures
Brochures and booklets
Posters
Billboards
POP displays
Logos
Videotapes
Characteristics of Advertising
a nonpersonal presentation and promotion of ideas, goods and services by a known sponsor
Pervasiveness : Repeated message
Amplified, expressiveness: Dramatize
Control
Communication Platforms
Sales Promotion
#short term incentives
Contests, games, sweepstakes
Premiums
Sampling
Trade shows, exhibits
Coupons
Rebates
Entertainment
Continuity program
Communication Platforms
Events/ Experiences
Sports
Entertainment
Festivals
Arts
Causes
Factory tours
Company museums
Street activities
Communication Platforms
Public Relations
Press kits
Speeches
Seminars
Annual reports
Charitable donations
Publications
Community relations
Lobbying
Identity media
Company magazine
BELO BEAUTY 101
Characteristics of Public Relations and Publicity
Programs directed internally and externally to protect the company’s image
High credibility : new authentic stories
Ability to reach hard-to-find buyers
Dramatization: stories behind the company
Communication Platforms
Personal Selling #facetoface
Sales presentations
Sales meetings
Incentive programs
Samples
Fairs and trade shows
Communication Platforms
Direct Marketing
Catalogs
Mailings
Telemarketing
Electronic shopping
TV shopping
Fax mail
Voice mail
Blogs
Websites
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Factors in Setting Communications Mix
• Type of product market
• Buyer readiness stage
• Product life cycle stage
Factors in Setting the Marketing Communications Mix
1.Type of Product Market:
Consumer vs Business Markets
3. PRODUCT LIFE CYCLE STAGE
• Introduction stage : Advertising, events and experiences, and publicity followed by personal selling and direct marketing
• Growth stage : word of mouth and interactive marketing.
• Maturity Stage: Advertising, events and experiences, and personal selling
• Decline stage: sales promotion
1990 to present
AN IDEAL AD CAMPAIGNThe right consumer is exposed to the message at the right time and place
Causes consumer to pay attention
Reflects consumer’s level of understanding and behaviors with product
Correctly positions brand in terms of points-of-difference and points-of-parity
Motivates consumers to consider purchase of the brand
Creates strong brand associations
SAMPLES OF BEST AD CAMPAIGNSREAL DOVE BEAUTY SKETCHERS (TV AD)
A reminder to every woman that she is beautiful –no matter what other people say. The ad prolongs engagement with the audience as it prompts them to visit a site where they can view the individual sketches in the campaign.
SAMPLES OF BEST AD CAMPAIGNSGULPihan sa 7 Eleven ( Interactive)
People were spoiling for a fight online because of the Philippines’ most controversial election. Gulp’s 7-Election wanted to own this.
Clear target audience in mind:
potential buyer
current users
deciders or influencers
individuals, groups, particular publics, or the general public
IMPORTANT FACTORS: USAGE AND LOYALTY
STEPS IN DEVELOPING EFFECTIVE COMMUNICATIONS:STEP 1: IDENTIFY THE TARGET AUDIENCE
STEP 2 : Communications Objectives
•Category need
•Brand awareness
•Brand attitude
•Purchase intention
STEP3 : DESIGNING COMMUNICATIONS
Message Strategy
Appeal to position brand
Establish point-of-parity or point-of-difference
Service performance or other extrinsic factors
Rational, social, sensory or ego satisfaction with result-of-use, product-in-use and incidental use experience
STEP3 : DESIGNING COMMUNICATIONS
CREATIVE STRATEGY
Informational Appeal: product and service attributes
ADS: problem solution, product demonstration, product comparison, testimonials
Transformational Appeal: non-product benefit or image; stir up emotion
Positive (motivational) or negative appeal
STEP 4: SELECT COMMUNICATION CHANNELS
• PERSONAL COMMUNICATIONS CHANNEL
Direct and interactive marketing, word of mouth, personal selling
Advocate, expert and social channels
• NONPERSONAL CHANNELS
Advertising, sales promotion, events and experience, public relations
INTEGRATION : COMMUNICATION MEDIUM TO OPINION LEADERS TO LESS INVOLVED POPULATION GROUP
STEP 5: ESTABLISH THE BUDGET
• Affordable Method
• Percentage-of-sales Method
• Competitive-parity Method
• Objective-and-task Method
Marketing Communication Expenditures Sample
Media PHP (Mn) % of Total
TV 72.1 40
Radio 23.7 13
Internet 45.8 25
Magazines 21.7 12
Newspaper 16.7 9
Events and Experiences -sample
• Php 300 Million spent on sponsorship in 201566% sports
11% tours
7% festivals, fairs
2% arts
10% causes
STEP 6: DECIDING ON MEDIA MIX
STEP 7: MEASURE RESULTS AND MANAGE IMC: integration of promotion, public relations , package design, Web site
development, and direct-mailing
Positive and Negative AppealsBURGER KING WHOOPER FREAK OUT CAMPAIGN (Interactive )
Burger King celebrated the 50th anniversary of the Whopper in 2007 by showing the reactions of real customers in Las Vegas to the news that the Whopper had been discontinued. On October 30, 2007, hidden film crews captured the reactions to news that their burger would no longer be available.
Managing Mass Communications
#masscomm
#massmedia
Examines mass ( nonpersonal) communications (advertising, sales promotions, events and experiences, public relations and publicity).
MISSION:ADVERTISING OBJECTIVETARGET MARKET, BRAND POSITIONING AND
MARKETING PROGRAMInformative advertising: brand awareness
Persuasive Advertising: comparative advertising
Reminder Advertising: repeat purchase
Reinforcement Advertising: reinforce right choice made by purchaser
MATURE BRANDS: INCREASE USAGE
NEW BRANDS : ESTABLISH SUPERIORITY
MONEY: ADVERTISING BUDGET
• Stage in the product life cycle: Newer products - more
• Market share and consumer base: higher market share and customer base - less
• Competition and clutter: higher number of competitors and higher advertising spending market - more
• Advertising frequency: More repetitions - more
• Product substitutability: less differentiated products - more
MESSAGE
• Message generation and evaluation : What the ad wants to convey
• Creative development and execution: How the ad expresses a brand claim
• Social-responsibility review: should not offend the general public, ethnic groups, racial minorities, or special-interest groups
MEDIA: Television
Advantages
Reaches broad spectrum of consumers
Low cost per exposure
Ability to demonstrate product use
Ability to portray image and brand personality
Disadvantages
Brief
Clutter
High cost of production
High cost of placement
Lack of attention by viewers
RADIO
ADVANTAGES DISADVANTAGES
Pervasive Lack visual Image
Targeted Passive
Relatively inexpensive
Effective medium in the morning
Balance between broad and localized market
Print Ads
Advantages
Detailed product information
Timely and pervasive (newspaper)
Ability to communicate user imagery ( magazine)
Flexibility
Ability to segment
Disadvantages
Passive medium
Clutter
Unable to demonstrate product use
Print Ad Evaluation CriteriaPICTURE HEADLINE COPY
Is the message clear at a glance?
Is the benefit in the headline?
Does the illustration support the headline?
Does the first line of the copy support or explain the headline and illustration?
Is the ad easy to read and follow?
Is the product easily identified?
Is the brand or sponsor clearly identified?
Deciding on Media and Measuring Effectiveness
• Deciding on reach, frequency, and impact
• Choosing among major media types
• Selecting specific vehicles
• Deciding on media timing and allocation
• Evaluating advertising effectiveness
Media Selection• Reach (R)—the number of different
persons or households that are exposed to a particular media schedule at least once during a specified period.
• Frequency (F)—The number of times within the specified period that an average person or household is exposed to the message.
• Impact (I)—the qualitative value of an exposure through a given medium.
Choosing Among Major Media Types
Consider Four Main Variables
Target audience and media habits
Product characteristics
Message characteristics
Cost
Alternative Advertising Options• Place advertising (or out-of-home
advertising) is a broad category including many creative and unexpected forms to grab consumers’ attention where they work, play, and shop.• Billboards
• Public spaces
• Product placement
• Point-of-purchase
• Virtual Worlds as a Media Vehicle
Selecting Specific Vehicles• Audience size can be measured
by:• Circulation—number of physical
units carrying the advertising.
• Audience—number of people exposed to the vehicle.
• Effective audience—number of people with target audience characteristics exposed to the vehicle
Classification of Advertising Timing Patterns
Factors Affecting Timing Patterns
• Buyer turnover
• Purchase frequency
• Forgetting rate
Deciding on Media Timing and Allocation
• Continuity—exposures appear evenly throughout a given period.
• Concentration—spending all ad dollars in a single period.
• Flighting—advertise for a period, followed by a period with no advertising, followed by a second period of advertising activity.
• Pulsing—continuous advertising at low-weight levels reinforced periodically by waves of heavier activity
Evaluating Advertising Effectiveness
Communication-effect research(called copy testing)—seeks to determine whether an ad is communicating effectively.• Pretesting—before an ad is placed.
• Posttesting—after an ad is placed
Formula for measuring sales impact of advertising:• Share of expenditures
• Share of voice
• Share of mind and heart
• Share of market
Major Decisions in Using Sales Promotions:Establish ObjectivesConsumers: Sales Force:
> larger purchase > encourage support for new product or model
> trial for non users > more prospecting
> attracting switchers from competitors. > stimulating off season sales
Retailers :
> carry new items
> carry higher inventory
> off season buying
> offset competitive promotions
> brand loyalty
> entry to new retails outlets
Major Decisions in Using Sales Promotions:Select tools
Things to consider:
Type of market
Sales promotion objective
Competitive conditions
Tools cost effectiveness
Major Decisions in Using Sales Promotions:Develop Program
Things to consider:
Determine the size
Conditions for participation
Duration of the promotion
Distribution vehicle
Timing of promotion
Promotional budget
Major Decisions in Using Sales Promotions:Implementation and Evaluation
Lead time – time necessary to prepare the program
Sell in time – from promo launch and when approx. 95% of the deal is on the hand s of consumers
Ways to evaluate:
Using sales data
Consumer surveys
Experiments
Using Sales Promotions
Establish objectives
Select tools
Develop program
Pretest
Implement and control
Evaluate results
Events and Experiences
• Identify with a particular target market or life style
• Increase awareness of company or product name
• Create or reinforce perceptions of key brand image associations
• Enhance corporate image
• Create experiences and evoke feelings
• Express commitment to the community or on social issues
• Entertain key clients or reward key employees
• Permit merchandising or promotional opportunities
Major Sponsorship Decisions
Choosing event
opportunities
Designing sponsorship
programs
Event creation
Measuring sponsorship
activities
Customer Experience Management: Experience
Providers
Experiential marketing not only communicates features and benefits but also connects a product or service with unique and interesting experiences
Communications
Identity
Product presence
Co-branding
Communications
Identity
Product presence
Co-branding
Public Relations #mpr
Public relations (PR)—includes a variety of programs to promote or protect a company’s image or individual products.
PR Department Functions
• Press relations
• Product publicity
• Corporate communication
• Lobbying
• Counseling
Marketing Public Relations
• Launching new products
• Repositioning a mature product
• Building interest in a product category
• Influencing specific target groups
• Defending products that have encountered public problems
• Building the corporate image in a way that reflects favorably on its products
Major Tools in Marketing PR
•Publications
•Events
•Sponsorships
•News
•Speeches
•Public-service activities
•Identity media
Decisions in Marketing PR
Establish objectives
Choose messages
Choose vehicles
Implement
Evaluate results
Direct Marketing
Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without
using market middlemen.
Channels: Objective:
Direct mail To communicate directly with or
Catalog marketing solicit response or dialogue from
Telemarketing specific customers and prospects.
Kiosks
Web sites
Mobile devices
Public and Ethical Issues in Direct Marketing
1. Irritation
2. Unfairness
3. Deception and fraud
4. Invasion of privacy
Interactive MarketingInteractive marketing – online activities and programs
designed to engaged customers or prospects and directly or indirectly raise awareness, improve image, or
elicit sales of products and services
Advantages/Disadvantages
• Tailored messages possible
• Easy to track responsiveness
• Contextual ad placement possible
• Search engine advertising possible
• Subject to click fraud
• Consumers develop selective attentionAverage time spent per day with select media according to US Consumers ,2009 (hrs:mins)
e-Marketing Guidelines(How to maximize the marketing value of e-mails)
• Give the customer a reason to respond
• Personalize the content of your emails
• Offer something the customer could not get via direct mail
• Make it easy for customers to unsubscribe
• Combine with other communications such as social media
IMPACT OF MARKETING COMMUNICATIONSBELO MEDICAL GROUP
26 years in the market
10 clinics in Manila, one each in Cebu and Davao
2007Number one doctor in the world who hasdone the most number of Thermageprocedures
2010 Reader’s Digest Award as one of the most trusted brands
2013 First ambulatory clinic given international accreditation by National Board of Accreditation for Hospitals and Healthcare Providers
Holds 60% of the market share ( Belo Help Desk)
3 out of 10 Filipinos undergo cosmetic surgery per day,amounting to 100,000 pesos on the average
3 x 100,000 x365 = 109,500,000
5 out of 10 Filipinos undergo dermatologic proceduresPer day, amounting to 2,000 pesos on the average
5 x 2,000 x 365 = 3,650,000
total = 113,150,000 x 60%= 67,890,000 pesos a year
SUMMARY• The various forms or techniques of marketing communications
namely: advertising, sales promotions, events and experience, Direct and personal selling, public relations and word-of-mouth were individually identified, highlighting their salient features and uses through examples
DISCUSSION ON:
• Steps in creating an effective marketing communication
• Creation of marketing communication mix considering the nature of products and services
• Emphasis on marketing as a dynamic undertaking requiring sensitivity and skills to capture emerging opportunities in the market
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