MARKETING

3. INTEGRATED MARKETING COMMUNICATION1

Marketing is efficient if there is an integrated communication operations plan, since its
purpose is to make people aware of the existence of the product and its characteristics
as well as to make them interested in purchasing it. To achieve the objectives of all
operations, one action plan is not enough. You will need to combine various forms of
action.

Television, for example, is excellent for making the customer familiar with some of the
products that exist in the market, but it is not as effective as some other methods, such
as campaigns with a limited period or promotions, which persuade the customer to buy
the cheapest product during a certain time, or have a free trial.

In the past, the most common means of promoting products was advertising
programmes in the media, such as the radio or the press, supported by other
promotional elements. But, now advertising in the media no longer describes the
product thoroughly. There are other forms of action that respond to advertising with
greater speed and reach, because more pressure is put on the product and more sales
are achieved in the short term.

1
Technical note LACC number 504-S12 Spanish version of the note from Harvard Business School number
9-599-087.

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3.1 COMMUNICATION VEHICLES

§ Introduction

Figure 1: Characteristics of the communication options

Individual/
personalized Seller




Advertisement
on TV
Massive

Emission of the Bidirectional with Bidirectional
message a time interval Instantaneous

one-way
Figure 1 shows two dimensions that are useful for comparing communication options.

These dimensions are:
1) Emission versus interaction or unidirectional versus bidirectional: the horizontal
dimension of Figure 1 establishes the distinction between communicative
situations in which only information is broadcast (television advertisement) and
those that constitute a dialogue and not a monologue (in-store sale), where
bidirectional interaction is instantaneous.

In the centre of the horizontal axis, there are other bidirectional interactions, in
which an interval of time elapses. It is a message sent by direct mail, which often
triggers the response of the receiver, although the sender may have to wait to
receive the attention of the recipient or wait for him to go to the post office
again.

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2) Massive versus individual/personalized. The vertical dimension of Figure 1

describes the extent to which the message can vary to meet the receiver's
particular communication needs. Since it is mass media, the advertisement on
TV is not personalized; the same message is sent to everyone.

The seller, on the other hand, can and should tailor his message to the particular
communication needs of the receiver.

Figure 2: Position of the most important communication vehicles

Individual/
personalized Seller
Web
Direct
Telemarketing

E-mail
Means of communication Direct mail
Radio Brochure
Newspapers
Teleshopping
Magazines

TV
Massive

Bidirectional with
a time interval


Emission of the Bidirectional
message with immediate
one-way answer

Figure 2 fills this space with some of the most important available communication
vehicles. In all cases, it can be said that these are ways of advertising, except for the
seller.

It shows the two most important types of advertising: those of the media, grouped at
the bottom end of the figure, and those of direct response, located in the centre. The
essential distinction between the two is that the latter have been designed with the
specific purpose of triggering a consumer purchase response, while the advertising
broadcast by the media aims to establish the basis for this response by influencing
consumer knowledge and attitude.

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§ Characteristics of the most important advertising media

✓ TV
TV is a national media, and its main advantage is that it is able to reach many
segments of the population at specific times with visual and sound messages,
according to the time of day, moment, season, etc. One of its drawbacks is that
advertising on television is one of the most costly expenses for businesses. Only
companies with a high economic level in the market can afford to show their
spots on TV and reach a wider audience.

The cost of a communication option is usually calculated with the cost per
thousand. For example, if a television series in the prime time slot, with a 30-
second ad, which costs 185,000 euros, has 10 million households as viewers, the
CPM or cost per thousand households would be calculated as follows:
185,000
X 1,000 = 18.5 euros CPM
10,000,000

✓ Newspapers

Although newspapers exist at a national level, they are characteristic for the
regional level- provinces, cities, towns, etc. A very common form of advertising
in newspapers is the special colourful section of ads, which usually takes one or
two pages. The biggest advantage of newspapers is that readers have a more
positive attitude towards the ads presented there. On television, this is not the
case. A person when watching his favourite show or film does not like the fact
that every twenty minutes he is interrupted by different ads that lengthen the
movie or series viewing time. It is becoming increasingly annoying as there is
more and more advertising. On the other hand, when it comes to newspapers,

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the reader is the decision maker as he or she has the choice to skip or read the
advert.

✓ Radio
Radio is also considered a local media, although there are also national radio
stations, such as Cadena 100, Dial, SER, etc. in Spain. There are many radio
stations available, which can be found depending on where you are. Radio has a
very defined audience division. The cost of advertising is much lower than TV
advertising and it is affordable for more brands and companies; therefore, it
becomes a good alternative if the advertiser wants to send a repeated message
to the radio audience of a particular station.

✓ Magazines
Over the years, the number of magazines in the market has increased, and this
is why they have become suitable media for advertising. Thanks to magazines,
clearer and more visual messages can be conveyed so as to reach a more specific
audience and draw more attention to the products. The ads that are published
in the magazines have “longer life", since magazines might be monthly, weekly,
fortnightly, or even annual, therefore the ads are at the disposal of the readers
for longer. And just as with newspaper, magazines can pass from hand to hand
and the advertisements that they contain can be seen by more people.


§ Direct Marketing

The second main type of advertising that is shown in Figure 2 is the action of direct
marketing. As we have seen in the Chapter 2, direct marketing is defined as an
interactive system of marketing that uses one or more types of advertising media to
produce measurable response and exchange. A customer file or a database registers the
messages that have been sent, as well as the responses.

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It uses various techniques, such as catalogues and telemarketing, as we have already

mentioned in the previous chapter.


3.2 THE ROLE OF PROMOTIONS IN THE INTEGRATED MARKETING ACTIONS

▪ Introduction

Advertising and sales are aimed at making customers progress in a buying process.
Promotions, for example, complement the combination of different operations.
Advertising and promotion should send the same message to the consumer.

▪ Promotions

Consumer promotions can be carried out in many ways.
The most important ones include:

1) Free samples. They are especially useful for enticing members of a target market
to try the product and decide whether to buy it or not. They can be sent via postal
mail, given directly at the store's purchase points or promotional counters, etc.
There are also companies that give the opportunity to deliver a sample if it is
requested by the customer directly.
2) The price-focused programmes are aimed at reducing the real cost per unit for
the consumer, for example: (a) discount vouchers that can be exchanged at the
point of sale, and (b) reimbursements or discounts by mail, through which the
consumer receives a certain amount when he sends a proof of purchase.
3) Bonuses. Another product is given away when purchasing specific articles, or
another product is offered at a reduced price. Thus, it enhances customer loyalty
and satisfaction.

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4) Joint Product. This type of offer is similar to the previous one, although this time
the joint promotion of two articles is carried out. The famous 2x1 or 3x2 that is
usually seen in supermarkets is a clear example.
5) Loyalty programmes. Here a gift is offered in gratitude for continuing the
relationship. A good example is the programmes that almost all airline
companies offer to people who travel frequently.
6) Contests/prize drawing. They are used to grab attention and get the product
noticed by a bigger audience.

▪ Commercial promotions for retailers

Promotions and offers are made for consumers and also for retailers. The objective is
the same, to get the retailer to drive the brand’s growth and the consumer to purchase.
More specifically a trade promotion can serve to get the retailer to:
- Own a product
- Increase the stock
- Show or advertise the item
- Decrease the price of the item

The usual vehicles of commercial promotion are:
1) Bonus for shelf space. The distributor or merchant is paid to try to sell the
products of a brand. As the brand grows, the power of retailers also grows, and
new products will have to pay "rent" for shelf space.
2) Shared advertising. The brand pays the merchant or company an "x" amount for
distributing and promoting it.
3) Temporary assignment of products. The manufacturer funds the retailer's
inventory for a specified period of time. This practice is common when it comes
to expensive seasonal products.
4) Temporary price reduction. To introduce a product, the company reduces the
price of the product for a certain time.

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5) Sales Rebate. The price is reduced per unit when a specific purchase volume is
exceeded.
6) Contests. It is a good way of marketing products and boosting the sales. For
example, customers who reach 200 euros per month on purchases will enter a
contest for an all-expenses-paid trip to Greece for seven days. This encourages
the consumer to buy more or choose this brand over others.

▪ Promotional events/sponsorship

Promotional events tend to be seen more often in the world of sport and sports
competitions. It is a good tool to promote products during important events as it creates
more visibility for the product and the brand.

There is also a tendency to organize promotional events to show that the brand is
serious and responsible and that the company worries about consumers. One of the
cons of promoting a product in this way is that it requires a large amount of money with
the risk of not being profitable at all.

▪ Advertising and public relations

A consumer may have a preference for a particular brand or company depending on the
influence generated by different media or public relations, as well as people in charge
of getting the brand in front of the public and attracting new customers.

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3.3 DESIGNING THE INTEGRATED MARKETING ACTION PLAN

The six factors of an action plan:
1. Market: Towards whom is the action directed?
2. Mission: What is the objective of the action?
3. Message: What specific points are going to be communicated?
4. Media: Which media are going to be used to pass on the message?
5. Money: How much will it cost?
6. Measurement: How will the impact of the campaign be evaluated?

▪ The three points and the hierarchy of effects
The part that is comprised of the MARKET, MISSION AND MESSAGE points consists of
designing the strategic plan and defining the tactical objectives of the action campaign.
We need to define the target audience, the outcome that we want to reach and the
message we want to send to customers.

In order to correctly focus on these three points, an outline of the customer's situation
needs to be made in relation to the phase of the purchase and consumption process.
The result and ultimate goal of any marketing campaign and activity is to make an
exchange between company and customer. The customer goes through different phases
until he reaches the end of the exchange. An action plan, for example, could be marked
as a desired objective to get the customer to advance in the different phases until
reaching the last one. This process of phases is called the hierarchy of effects and there
are seven different phases established:







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Figure 3: Hierarchy of effects

1. Ignorance

2. Awareness Cognitive Stage

3. Knowledge

4. Liking Affective Stage

5. Preference

6. Conviction

7. Purchase Conative Stage


These seven steps can be divided into three stages of consumer behaviour. These
stages describe the type of response that is required from consumers so that they can
move to the next phase.

In the cognitive stage the consumer gathers knowledge about the product and becomes
aware of it. This lays the foundation for the affective stage when the consumer starts to
develop a liking for the product or even stronger feelings towards it. Then we move on
to the conative stage when the customer decides his or her preference and wants to buy
the product. The process ends with the final purchase of the product.

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▪ The fourth point: media

In the fourth point we need to choose what the most appropriate means to
advertise the product are. We should weigh the pros and cons of each media
type, taking into consideration our target customers and the media they are
most exposed to. It is the evaluation of the means of communication chosen by
the brand to publicize its new product.

▪ The fifth point: money
The budget invested in marketing always sparks a heated debate. In many cases
it is based on experience, whether, for example, the last Christmas sales were
higher than the previous ones. In other cases it depends solely on sales,
comparisons, or attitude of the competition.
The most appropriate way to address the issue of the budget in marketing is
through the "objective and task" method, which consists of estimating what has
to be done to achieve the proposed objectives and then calculating the sum,
provided that the company can afford it. Everything has to be evaluated and
carefully studied, and then the marketing department, together with the
managers, will be the ones who make the decision.

▪ The sixth point: measurement
Choosing the tools for monitoring all the actions that have been carried out is an
essential part of marketing action planning. It is a key aspect for future decisions
regarding marketing budgets.
There are many factors that determine the sales, for example, the quality of the
product and its cost, the actions of the competition, etc. Therefore, it is difficult
to identify the outcome of the action plan. A good tool or support would be to
measure the cognitive and affective impact on customers, during the early
stages, making it a useful tool to assess the impact of actions and to know which
method of communication is best.

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