Designing and Managing Integrated Marketing Communications

MKT501 MARKETING MANAGEMENT
Designing and managing integrated

marketing communications

Learning Outcomes MKT501 MARKETING MANAGEMENT
After this session, you will be able to:
• Differentiate between different

communication tools available to a
marketer.
• Use steps of developing effective

communication to design a
communication strategy for any
company/product.

Developing Effective Communication
3. Design the Communication
• Formulating the communications to achieve the desired

response requires solving three problems:
– What to say (Message Strategy)
– How to say (Creative Strategy)
– Who should say (Message Source)
• Message Strategy
• Creative Strategy
– Informational Appeals
– Transformational Appeals
• Message Source

Message Strategy
– Buyers expect four types of rewards from product- Rational,
Sensory, Social, Ego Satisfaction
– These Rewards are visualized from:

• Results-of-use experience
• Product-in-use experience
• Incidental-to-use experience
– In Total 4*3=12 Advertising messages

• Example:
Surf: Rational award x result-of-use
Urzza Energy Drink: Sensory award x product-in-use

Creative Strategy
– Are the way marketers translate their messages into specific
communication
– Informational Appeals (Logic & reason rule):

• Problem solution ads – Dr. Fixit
• Product demonstration ads – Aqua Guard
• Product comparison ads – Mach-III
• Testimonials form unknown endorsers or celebrity - Dove
– Transformational Appeals (non-product related benefit)

• Negative Appeals: Fear, guilt, shame etc.
• Positive Appeals: Humor, love, pride, joy etc.

Identify the Appeal MKT501 MARKETING MANAGEMENT
Informational Appeal

Identify the Appeal MKT501 MARKETING MANAGEMENT
Transformational
Appeal
Transformational
Appeal


Message Source
– Celebrities
• Expertise, trustworthiness and likability
• Example- Coke crisis Amir Khan
Transformational
Appeal
4. Select Communication Channels
• Personal Communication Channel

– Face to face or person to audience
– Advocate, expert and Social communication channels
• Non Personal Communication Channels

– Advertising, Sales promotion, events & experiences and
Public Relations
• Integration of Communication Channels

What kind of channel will be more suitable?
Information Required Channel
Person looking for Doctor Personal Communication
Tobacco Products Nonpersonal Communication
Refrigerator Nonpersonal Communication
Insurance Personal Communication
Coaching for Entrance Exams Personal Communication

5. Establish the total Communication Budget
• Affordable Method
• Percentage-of-sales method
– Samsung have spent $14bn on marketing and promotion of
its products in 2013 - more than Iceland's total GDP.
– According to data from Thomson Reuters, Samsung will
spend 5.4% of its annual revenue on advertising and
promotion, more than any other of the world's top 20
companies by sales.
• Competitive Parity Method

• Objective-and-task method
• Three steps:
– Defining the communications objectives to be accomplished

– Determining the specific strategies and tasks need to attain
them
– Estimating the cost associated with performance of these
strategies and tasks

• Identify the objectives

– Target -- 30 million households
– Communication objective -- The detergent buyer should identify
Brand X as a low-cost detergent
– Desired change -- from 10 to 40 percent
– Time frame -- 1 year
• Determine the tasks that will have to be performed
– reach 80% of the market with the advertising message
– determine the frequency or average # of impressions needed
(frequency = 30)
– determine the number of Gross Rating Points (GRPs) (80 X 30 =
2,400 GRPs)
• Determine the cost of performing those tasks
– determine the average cost of a GRP ($3,000 per GRP)
– multiply by the number of GRPs ($3,000 X 2,400 = $7,200,000)

Trend
• Digital marketing budgets are set to reach an all-time high
• Investment in digital marketing technology surges back
• Marketers look beyond paid media, but ROI measurement

issues hold them back
• Acquisition marketing continues to be front of mind

Managing the IMC Process MKT501 MARKETING MANAGEMENT
• 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.
• IMC is the application of consistent brand messaging

across both traditional and non-traditional marketing
channels and using different promotional methods to
reinforce each other.



Advertising MKT501 MARKETING MANAGEMENT
Critics of advertising
feel that advertising is
superficial because
many ads carry little
actual product
information. Do you
think advertising is
superficial?

Advertising Educates Consumers?
PRO CON
Advertising is Informative Advertising is Superficial
• Benefits & features • Biased information
• Comparison data • Manipulated emotions
• Product use info • Deceptive practices
• Market knowledge • Little to no product info

Developing and Managing Advertising programs

Developing an Advertising Program
Setting Objectives
Deciding on the Budget
Developing the Campaign
Deciding on Media
Making Measurement Plans

1. Setting Objectives
Informative
Persuasive
Reminder
Reinforcement

2. Deciding on the Budget
• Factors Affecting Budget Decisions
– Stage in the product life cycle

– Market share and consumer base
– Competition and clutter
– Advertising frequency
– Product substitutability

3. Developing the Campaign
• Message generation and evaluation

– Creative Brief



Red Bull-Example MKT501 MARKETING MANAGEMENT
Event: To promote three new flavours of Red Bull launch in the

Canadian market
Creative Brief: Squeeze famous landmarks into a beautiful jam-

packed map.


Creative Development and Execution
• Positioning: Rational & Emotional
• Execution Styles: Slice of life, Lifestyle, Fantasy, Mood,

Musical, Personality, Technical Expertise, Scientific Evidence,
Testimonial Evidence
• Choose Appropriate tone: Positive, Negative & Humorous
• Memorable & attention getting lines

Identify The Appeal MKT501 MARKETING MANAGEMENT
Rational Appeal
Emotional Appeal

Creative development and execution
• Illustration: Absolut Vodka

• The share of imported Vodka
increased from 15 to over 60%
• Several hundred execution on a
single theme.
• Won many awards for elegance,
simplicity and effectiveness

Creative development and

execution
• Illustration: HSBC
• Value Proposition: Global
reach and local knowledge
• Two Types of Execution
• Type 1: Identical Objects were
labelled differently
• Type 2: Different objects were
labelled similarly
• The world's local bank


4. Deciding on Media
• Deciding upon Reach Frequency and Impact
– Reach: Number of different persons or households exposed

to a particular media schedule at least once during a
specified time period.
– Frequency: The number of times within the specified time
period that an average person or household is exposed to
the message.
– Impact: The qualitative value of an exposure through a
given medium


Alternate Advertising Options

• Place Advertising
– Billboard
– Public Spaces
– Product Placement
– Point of Purchase

• Deciding on Media Timing and Allocation

5. Making Measurement Plans
• Communication Effect Research

– Copy Testing: Before Tests & After Tests
– Consumer Jury, Rating Scales, Portfolio Tests, Laboratory
tests, Inquiry tests, simulated sales test, day after recall test
• Sales Effect Research

Sales Promotion
Sales promotions
action focused
marketing events
whose purpose is to
have a direct
impact on the
behavior of the
firm’s customers

Promotion Can, Promotion Can’t
• Promotion Can: • Promotion Can’t:

– Offer an – Create an image
immediate for a brand,
inducement,
– Compensate for a
– Cause customers
to try a product, lack of
advertising,
– Persuade
customers to – Do much to
buy again, compensate for a
– Introduce a new negative image,
product or build – Reverse a sales
a brand over decline.
time.

Sales Promotion Tools MKT501 MARKETING MANAGEMENT
Coupons
Samples
Premiums Trade
Allowances
Contests/Sweepstakes
POP Displays
Refunds/Rebates
Bonus Packs Training
Programs
Loyalty Programs Trade
Events Shows
Coop
Consumer- Advertising
oriented Trade-oriented
[For end-users] [For resellers]
Difference between Rebate andMKT501
Refund
MARKETING MANAGEMENT
Rebate Refund
A rebate is an amount paid by Refund is the return of the
way of return on what has entire money paid by a
already been paid by the customer on the purchase of a
customer for the purchase of a product or service.
product or a service.
A rebate is to attract customers A refund is to satisfy a

customer.
Rebates may be given in the Refund is always given in the

form of coupons or gift form of cash or money
vouchers

Any Questions?

Designing and Managing Integrated Marketing Communications

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MKT501 MARKETING MANAGEMENT