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Integrated Marketing

Communication Strategy
MGT 252, lecture 10a
Learning Goals
1. Name and define the five tools of the
marketing communications mix
2. Discuss the process and advantages of
integrated marketing communications
3. Outline the steps in developing effective
marketing communications
4. Explain the methods for setting the
marketing communications budget and
factors that affect the design of the
promotion mix
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Case Study
BMW MINI
• Marketing the anything-but- • Traditional print and outdoor
ordinary car presented big advertising followed next: “parks
challenges. as faster than a Ferrari”, “Onramps
• The MINI is a tiny but potent car are foreplay”, and “The world is
that has a retro 60s look. your go-kart track”.
• Canadians tend to be serious • Ads were placed everywhere
about their cars. • Edgy and humorous TV spots were
• The marketing team concluded also used.
that In Canada the car • Other components: “Velocity”
performance was the main parties, online contests, driving
attribute to stress. events, and investments in
• BMW choose Taxi as its showroom improvements.
advertising agency. • Hip dealerships were selected and
• Taxi created an integrated trained in a new soft-sell approach.
strategy with unified brand • Product placement in the remake
personality: “The MINI is an of The Italian Job, online marketing,
individualistic, high- and publicity.
performance, premium vehicle • Finally word of mouth.
that’s fun to drive.” • The campaign was a huge success
• The campaign began with a 60- and annual sales goals were
second movie theatre spot exceeded.
called “Anthem”.
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Learning Goals
1. Name and define the five tools of the
marketing communications mix
2. Discuss the process and advantages of
integrated marketing communications
3. Outline the steps in developing effective
marketing communications
4. Explain the methods for setting the
marketing communications budget and
factors that affect the design of the
promotion mix
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The Marketing
Communications Mix
• 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.

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Figure 14.1
Integrated Marketing
Communications

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The Marketing
Communications Mix
• Advertising: • Personal selling:
– Any paid form of non- – Personal presentation
personal presentation by the firm’s sales force
and promotion of ideas, for the purpose of
goods, or services by an making sales and
identified sponsor building customer
• Sales promotion: relationships
– Short-term incentives to • Direct marketing:
encourage purchase or – Direct communications
sale of a product or
service with targeted
individuals to obtain an
• Public relations: immediate response
– Building good relations and lasting customer
and corporate image with relationships
the company’s publics
using publicity, and
handling unfavourable
events
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Learning Goals
1. Name and define the five tools of the
marketing communications mix
2. Discuss the process and advantages of
integrated marketing communications
3. Outline the steps in developing effective
marketing communications
4. Explain the methods for setting the
marketing communications budget and
factors that affect the design of the
promotion mix
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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

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This ad from Advertising Age Magazine attempts to pull
advertisers to Television

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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

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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

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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.

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Discussion Question

• How does
Taco Bell
practice
IMC?

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Learning Goals
1. Name and define the five tools of the
marketing communications mix
2. Discuss the process and advantages of
integrated marketing communications
3. Outline the steps in developing effective
marketing communications
4. Explain the methods for setting the
marketing communications budget and
factors that affect the design of the
promotion mix
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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.

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Figure 14.2
Elements in the
Communication Process

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Steps in 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

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Figure 14.3
Buyer-Readiness Stages

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• Who is the
target?
• Which
readiness
stage?
– Awareness
– Knowledge
– Liking
– Preference
– Conviction
– Purchase

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Steps in 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: relate to the audience’s self-
interest
• Emotional appeals: stir up negative or positive
feelings using humour, fear, pride, joy, or even
disgust
• Moral appeals: related the audience’s sense of right
versus wrong

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• What is appeal?
– Rational appeals
– Emotional
appeals
• Love, pride, joy,
humor, fear,
guilt, shame
– Moral appeals

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• What is appeal?
– Rational appeals
– Emotional
appeals
• Love, pride, joy,
humor, fear,
guilt, shame
– Moral appeals

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Discussion Question

Why can
humour be
a
particularly
effective
appeal?

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Steps in 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.

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Steps in 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

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Steps in Developing
Effective Communication
• Step 5: Selecting the Message Source
– Highly credible sources are more persuasive
– A poor spokesperson can tarnish a brand

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Discussion Question
Effective Spokespeople?

What makes an
effective
spokesperson?
When should they
NOT be used?

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Steps in Developing
Effective Communication
• Step 6: Collecting Feedback
– Recognition, recall, and behavioural
measures are assessed
– May suggest changes in
product/promotion

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Advertising Recall
• Put away your notes
• Recall all the ads and marketing
messages you have seen so far in
this lecture

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Learning Goals
1. Name and define the five tools of the
marketing communications mix
2. Discuss the process and advantages of
integrated marketing communications
3. Outline the steps in developing effective
marketing communications
4. Explain the methods for setting the
marketing communications budget and
factors that affect the design of the
promotion mix
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Setting the Total
Promotion 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

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Setting the Total
Promotion 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

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Setting the Overall
Communication Mix
• Determined by the nature of each
promotion tool and the selected
promotion mix strategy

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Setting the Overall
Communication Mix
• Advertising • Reaches large, geographically
dispersed audiences, often with
• Personal Selling high frequency
• Sales • Low cost per exposure, though
Promotion overall costs are high
• Public Relations • Consumers perceive advertised
goods as more legitimate
• Direct
• Dramatizes company/brand
Marketing
• Builds brand image; may
stimulate short-term sales
• Impersonal; one-way
communication
Video Snippet
DD advertising
reaches a broad
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audience
Setting the Overall
Communication Mix
• Advertising • Most effective tool for building
buyers’ preferences, convictions,
• Personal Selling
and actions
• Sales • Personal interaction allows for
Promotion feedback and adjustments
• Public Relations • Relationship-oriented
• Direct • Buyers are more attentive
Marketing • Sales force represents a long-
term commitment
• Most expensive of the
promotional tools

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Setting the Overall
Communication Mix
• Advertising • Makes use of a variety of
• Personal Selling formats: premiums,
• Sales coupons, contests, etc.
Promotion • Attracts attention, offers
• Public Relations strong purchase incentives,
dramatizes offers, boosts
• Direct
sagging sales
Marketing
• Stimulates quick response
• Short-lived
• Not effective at building
long-term brand preferences

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Setting the Overall
Communication Mix
• Advertising • Highly credible
• Personal Selling • Many forms: news stories,
• Sales news features, events and
Promotion sponsorships, etc.
• Public Relations • Reaches many prospects
missed via other forms of
• Direct promotion
Marketing
• Dramatizes company or
benefits
• Often the most underused
element in the promotional
mix
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Setting the Overall
Communication Mix
• Advertising • Many forms: Telephone
• Personal Selling marketing, direct mail,
• Sales online marketing, etc.
Promotion • Four distinctive
• Public Relations characteristics:
– Nonpublic
• Direct
Marketing – Immediate
– Customized
– Interactive
• Well-suited to highly
targeted marketing efforts
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Figure 14.4
Push vs. Pull Promotion
Strategy

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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

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Socially Responsible
Communication
• 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

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Socially Responsible
Communication
• 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

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Learning Goals
1. Name and define the five tools of the
marketing communications mix
2. Discuss the process and advantages of
integrated marketing communications
3. Outline the steps in developing effective
marketing communications
4. Explain the methods for setting the
marketing communications budget and
factors that affect the design of the
promotion mix
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