Kotler14 basic
- 1. Integrated Marketing Communications Strategy Chapter 14
- 2. Learning Goals 1. Know the tools of the marketing communications mix. 2. Understand the process and advantages of integrated marketing communications. 3. Learn the steps in developing effective marketing communications. 4. Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix. 14 - 2
- 3. Case Study BMW MINI USA • BMW Challenges: small • Campaign a success with budget and staff a 10-month waiting list • Broke with traditional • Awareness growth from auto advertising and 2% to 53% of U.S. used unconventional consumers media • MINI sales are running • “Let’s Motor” campaign better than 80% above begins by mounting original projections MINIs on SUV’s in 22 cities • Created integrated strategy with unified brand personality at every consumer “touchpoint” 14 - 3
- 4. Definition • Marketing Communications Mix The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives. 14 - 4 Goal 1: Know the tools of the marketing communications mix
- 5. Integrated Marketing Communications • The Marketing Communications Environment is Changing: Mass markets have fragmented, causing marketers to shift away from mass marketing to target marketing Improvements in information technology are facilitating segmentation Media fragmentation has occurred with companies doing less broadcasting and more narrowcasting 14 - 5 Goal 1: Know the tools of the marketing communications mix
- 6. Integrated Marketing Communications • The Need for Integrated Marketing Communications Conflicting messages from different sources or promotional approaches can confuse company or brand images • The problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently 14 - 6 Goal 1: Know the tools of the marketing communications mix
- 7. Integrated Marketing Communications • The Need for Integrated Marketing Communications The Internet must be integrated into the broader IMC mix Best bet is to wed traditional branding efforts with the interactivity and service capabilities of online communications 14 - 7 Goal 1: Know the tools of the marketing communications mix
- 8. Integrated Marketing Communications • Integrated Marketing Communications The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products. 14 - 8 Goal 1: Know the tools of the marketing communications mix
- 9. The Communication Process • Communications efforts should be viewed from the perspective of managing customer relationships over time. • The communication process begins with an audit of all potential contacts a customer might have with the brand. • Effective communication requires knowledge of how communication works. 14 - 9 Goal 2: Understand the process and advantages of IMC
- 10. The Communication Process Elements in the Communication Process • Sender • Encoding • Message • Decoding • Media • Response • Receiver • Feedback • Noise 14 - 10 Goal 2: Understand the process and advantages of IMC
- 11. Developing Effective Communication • Step 1: Identifying the Target Audience Affects decisions related to what, how, when, and where message will be said, as well as who will say it • Step 2: Determining Communication Objectives Six buyer readiness stages 14 - 11 Goal 3: Learn the steps in developing effective marketing communications
- 12. Buyer-Readiness Stages Awareness Knowledge Liking Preference Conviction Purchase 14 - 12 Goal 3: Learn the steps in developing effective marketing communications
- 13. Developing Effective Communication • Step 3: Designing a Message AIDA framework guides message design Message content contains appeals or themes designed to produce desired results • Rational appeals • Emotional appeals – Love, pride, joy, humor, fear, guilt, shame • Moral appeals 14 - 13 Goal 3: Learn the steps in developing effective marketing communications
- 14. Developing Effective Communication • Step 3: Designing a Message Message Structure: Key decisions are required with respect to three message structure issues: • Whether or not to draw a conclusion • One-sided vs. two-sided argument • Order of argument presentation Message Format: Design, layout, copy, color, shape, movement, words, sounds, voice, body language, dress, etc. 14 - 14 Goal 3: Learn the steps in developing effective marketing communications
- 15. Developing Effective Communication • Step 4: Choosing Media Personal communication channels • Includes face-to-face, phone, mail, and Internet chat communications • Word-of-mouth influence is often critical • Buzz marketing cultivates opinion leaders Nonpersonal communication channels • Includes media, atmosphere, and events 14 - 15 Goal 3: Learn the steps in developing effective marketing communications
- 16. Developing Effective Communication • Step 5: Selecting the Message Source Highly credible sources are more persuasive A poor spokesperson can tarnish a brand • Step 6: Collecting Feedback Recognition, recall, and behavioral measures are assessed May suggest changes in product/promotion 14 - 16 Goal 3: Learn the steps in developing effective marketing communications
- 17. Setting the Promotional Budget • Setting the Total Promotional Budget Affordability Method • Budget is set at a level that a company can afford Percentage-of-Sales Method • Past or forecasted sales may be used Competitive-Parity Method • Budget matches competitors’ outlays 14 - 17 Goal 4: Understand methods for setting budgets and designing the mix
- 18. Setting the Promotional Budget • Setting the Total Promotional Budget Objective-and-Task Method • Specific objectives are defined • Tasks required to achieve objectives are determined • Costs of performing tasks are estimated, then summed to create the promotional budget 14 - 18 Goal 4: Understand methods for setting budgets and designing the mix
- 19. Setting the Promotional Mix • Setting the Overall Promotion Mix Determined by the nature of each promotion tool and the selected promotion mix strategy 14 - 19 Goal 4: Understand methods for setting budgets and designing the mix
- 20. Setting the Promotional Budget and Mix • Reaches large, geographically dispersed Promotion Tools audiences, often with high frequency • Low cost per exposure, • Advertising though overall costs are • Personal Selling high • Consumers perceive • Sales Promotion advertised goods as more • Public Relations legitimate • Dramatizes company/brand • Direct Marketing • Builds brand image; may stimulate short-term sales • Impersonal; one-way communication 14 - 20 Goal 4: Understand methods for setting budgets and designing the mix
- 21. Setting the Promotional Budget and Mix • Most effective tool for building buyers’ Promotion Tools preferences, convictions, and actions • Personal interaction • Advertising allows for feedback and • Personal Selling adjustments • Sales Promotion • Relationship oriented • Buyers are more attentive • Public Relations • Sales force represents a • Direct Marketing long-term commitment • Most expensive of the promotional tools 14 - 21 Goal 4: Understand methods for setting budgets and designing the mix
- 22. Setting the Promotional Budget and Mix • Makes use of a variety of Promotion Tools formats: premiums, coupons, contests, etc. • Attracts attention, offers • Advertising strong purchase • Personal Selling incentives, dramatizes offers, boosts sagging • Sales Promotion sales • Public Relations • Stimulates quick response • Direct Marketing • Short lived • Not effective at building long-term brand preferences 14 - 22 Goal 4: Understand methods for setting budgets and designing the mix
- 23. Setting the Promotional Budget and Mix • Highly credible Promotion Tools • Many forms: news stories, news features, events and • Advertising sponsorships, etc. • Reaches many prospects • Personal Selling missed via other forms of • Sales Promotion promotion • Public Relations • Dramatizes company or • Direct Marketing benefits • Often the most underused element in the promotional mix 14 - 23 Goal 4: Understand methods for setting budgets and designing the mix
- 24. Setting the Promotional Budget and Mix • Many forms: Telephone Promotion Tools marketing, direct mail, online marketing, etc. • Advertising • Four distinctive characteristics: • Personal Selling Nonpublic • Sales Promotion Immediate • Public Relations Customized • Direct Marketing Interactive • Well-suited to highly targeted marketing efforts 14 - 24 Goal 4: Understand methods for setting budgets and designing the mix
- 25. Setting the Promotional Budget and Mix • Promotion Mix Strategies Push strategy: trade promotions and personal selling efforts push the product through the distribution channels. Pull strategy: producers use advertising and consumer sales promotions to generate strong consumer demand for products. 14 - 25 Goal 4: Understand methods for setting budgets and designing the mix
- 26. Setting the Promotional Budget and Mix • Checklist: Integrating the Promotion Mix Analyze trends (internal and external) Audit communications spending Identify all points of contact Team up in communications planning Make all communication elements compatible Create performance measures Appoint an IMC manager 14 - 26 Goal 4: Understand methods for setting budgets and designing the mix
- 27. Socially Responsible Communications • Advertising and Sales Promotion Avoid false and deceptive advertising No bait-and-switch advertising Trade promotions can not favor certain customers over others Use advertising to promote socially responsible programs and actions 14 - 27 Goal 4: Understand methods for setting budgets and designing the mix
- 28. Socially Responsible Communications • Personal Selling Salespeople must follow the rules of “fair competition” Three-day cooling-off rule protects ultimate consumers from high pressure tactics Business-to-business selling • Bribery, industrial espionage, and making false and disparaging statements about a competitor are forbidden 14 - 28 Goal 4: Understand methods for setting budgets and designing the mix