Strategic Marketing

MKTG8011
Communicating Values
Session-7

Artha Sejati Ananda

artha.ananda@binus.edu
 Agenda
• Designing and Managing Integrated Marketing Communication
• Managing Mass Communication
• Managing Digital Communication
• Managing Personal Communication
 Session Learning Outcomes

Upon completion of this session, students are expected to be able to:

LO-2: Assess the marketing management principles to local and global
corporate performance
LO-4: Assess recommendations on a comprehensive marketing
management approach to address local and global business problems
 Chapter
19
Designing and
Managing Integrated
Marketing
Communications
 The Role of Marketing Communications
• Marketing communications
• The means by which firms attempt to inform, persuade, and remind
consumers about the products and brands they sell
 Marketing Communications Mix
• Advertising • Online and social
• Sales promotion media marketing
• Events and • Mobile marketing
experiences • Direct and database
• Public relations and marketing
publicity • Personal selling
Common Communication Platforms
 Figure 19.1
Elements in Communications Process
 Figure 19.2
Response Hierarchy Models
 Micromodel of Consumer Responses
• With an ideal ad campaign:
1. The right consumer is exposed to the message at
the right place and time
2. The ad causes the consumer to pay attention
3. The ad reflects consumer’s level of understanding
of brand
4. The ad positions points-of-difference and points-of-
parity
5. The ad motivates consumers to consider purchase
6. The ad creates strong brand associations
Developing Effective Communications
 Developing Effective Communications
• Identify the target audience
• Set the communications objectives
• Establish need for category
• Build brand awareness
• Build brand attitude
• Influence brand purchase intention
 Developing Effective Communications
• Design the Communications

Message strategy

Creative strategy

Message source
 Developing Effective Communications
• Select the communications channels
• Personal communications
• Nonpersonal channels
Establish the Marketing Communications
Budget
• Affordable method
• Percentage-of-sales method
• Competitive-parity method
• Objective-and-task method
 Selecting the Marketing Communications
Mix
• Advertising
• Sales promotion
• Events and experiences
• Public relations and publicity
• Online and social media marketing
• Mobile marketing
• Direct and database marketing
• Sales force
 Managing Integrated Marketing
Communications
• Integrated marketing communications (IMC)
• “A planning process designed to assure that all brand contacts
received by a customer or prospect for a product, service, or
organization are relevant to that person and consistent over time”
 Chapter
20
Managing Mass
Communications:
Advertising, Sales
Promotions, Events
and Experiences, and
Public Relations
Developing and Managing
an Advertising Program
 Setting the
Advertising Objectives
Informative

Persuasive

Reminder

Reinforcement
Deciding on the Advertising Budget

✓ Stage in the product life cycle

✓ Market share and consumer base
✓ Competition and clutter
✓ Advertising frequency
✓ Product substitutability
 Developing the Advertising Campaign
• Message generation and
evaluation
• Positioning of an ad—what it
attempts to convey about the
brand
• Creative brief
• Open sourcing/crowdsourcing
• Creative development and
execution
• Advertising medium (television,
print, and radio advertising
media)
 Developing the Advertising Campaign
• Legal and social issues
• Advertisers must not make false claims
• Must not use false demonstrations
• Must not create ads with the capacity to deceive
• Must avoid bait-and-switch advertising
 Choosing Media
• Reach, frequency, and impact
 Evaluating Advertising Effectiveness
• Communication-effect research
• In-home tests, trailer tests, theater
tests, on-air tests
• Sales-effect research
• Historical approach
• Experimental data
 Sales Promotion
• A collection of incentive tools, mostly short term, designed to
stimulate quicker or greater purchase of particular products or
services by consumers or the trade
 Sales Promotion
• Selecting consumer promotion tools
 Sales Promotion
• Selecting trade promotion tools
• Forward buying and diverting retailers
 Sales Promotion
• Selecting business and sales force promotion tools
 Events and Experiences
• Events objectives
1. To identify with a target market or lifestyle
2. To increase salience of company/product name
3. To create/reinforce key brand image associations
4. To enhance corporate image
5. To create experiences and evoke feelings
6. To express commitment to the community or on
social issues
7. To entertain key clients or reward employees
8. To permit merchandising/promotional opportunities
 Events and Experiences
• Creating experiences
• Experiential marketing
 Public Relations
• PR department functions
• Press relations
• Product publicity
• Corporate communications
• Lobbying
• Counseling
 Chapter
21
Managing Digital
Communications:
Online, Social
Media, and Mobile
 Online Marketing
• Categories of online marketing
communications
• Web sites
• Search ads
• Display ads
• e-mail
 Online Marketing
Advantages Disadvantages
• Can offer or send tailored • Consumers can screen out
information/messages most messages
• Can trace effects by UVs • Ads can be less effective than
clicks on a page/ad they appear (bogus clicks)
• Contextual placement • Lost control over online
• Can place advertising based messages via
on search engine keywords hacking/vandalism
 Online Marketing
• Communication Options

Web sites

Search ads

Display ads

E-Mail
Maximize the Marketing Value of e-mails

✓ Give the customer a reason to respond

✓ Personalize the content of your e-mails
✓ Offer something instead of direct mail
✓ Make it easy to opt and unsubscribe
✓ Combine e-mail and social media
 Social Media
• Means for consumers to share text, images, audio,
and video information with each other and with
companies, and vice versa

Online
communities/forums

Blogs

Social networks
 Social Media
• Social media are rarely the sole
source of marketing
communications for a brand
• Only some consumers want
to engage with some brands,
and, even then, only some of
the time
 Mobile Marketing
Is uniquely tied to one user

Is virtually always “on”

Allows for immediate consumption

Is highly interactive
 Mobile Marketing
• Mobile apps
• Bite-sized software programs that can be downloaded
to smart phones
 Mobile Marketing
• Across markets
• In developed Asian markets, mobile marketing is fast
becoming a central component of customer
experiences
 Chapter
22
Managing Personal
Communications:
Direct and Database
Marketing and
Personal Selling
 Direct Marketing
• The use of consumer-direct (CD) channels to reach
and deliver goods and services to customers without
using marketing middlemen
 Direct Marketing

Direct mail

Catalog marketing

Telemarketing

Other direct-response marketing

 Direct Marketing
• Public and ethical issues

Irritation

Unfairness

Deception/fraud

Invasion of privacy
Customer Databases and Database Marketing
• A customer database
• An organized collection of
comprehensive information about
individual customers or prospects
that is current, accessible, and
actionable for lead generation, lead
qualification, sale of a product or
service, or maintenance of customer
relationships
Customer Databases and Database Marketing
• Database marketing
• The process of building,
maintaining, and using
customer databases and other
databases (of products,
suppliers, or resellers) to
contact, transact, and build
customer relationships
 Customer Databases
Customer database Business database
• Transactions •Past purchases
• Registration information •Past volumes, prices, and
• Telephone queries profits
• Cookies •Buyer teams’ names
• Every customer contact •Contract status
• Past purchases •Supplier’s share of customer’s
• Demographics business
• Psychographics •Competitive suppliers
• Mediagraphics •Competitive strengths and
weaknesses
 Customer Databases and Database
Marketing
• Data warehouse
• Captures, queries, and analyzes data to draw inferences about an
individual customer’s needs and responses
• Data mining
• Uses sophisticated statistical and mathematical techniques on data to
extract useful information about individuals, trends, and segments
 Customer Databases and Database
Marketing
• Companies can use their databases in five ways

✓ To identify prospects
✓ To decide which customers get an offer
✓ To deepen customer loyalty
✓ To reactivate customer purchases
✓ To avoid serious customer mistakes
 Customer Databases and Database
Marketing
• The downside of database marketing
• Some situations are just not conducive to database
marketing
• Building and maintaining a customer database require
a large investment
• Employees may resist becoming customer-oriented
and using the available information
• Not all customers want a relationship with the
company
• The assumptions behind CRM may not always hold
true
Designing the Sales Force
Sales force objectives

Sales force strategy

Sales force structure

Sales force size

Sales force compensation

 Sales Force Objectives and Strategy
• Prospecting
• Targeting
• Communicating
• Selling
• Servicing
• Information gathering
• Allocating
 Sales Force Structure
• Four types of sales forces
• Strategic market sales force assigned to major accounts
• A geographic sales force calling on customers in different territories
• A distributor sales force calling on and coaching distributors
• An inside sales force marketing and taking orders online and via phone
 Principles of
Personal Selling
• SPIN method types of questions

Situation

Problem

Implication

Need-payoff
Copyright © 2016 Pearson
Education Ltd.
1-57
 Main References
• Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.).
Harlow, England: Pearson Education.