Integrated Marketing

Communication Strategy
by
 Marketing Communication Mix or
Promotion Mix
Product’s
Design

Stores that Sell Product’s

the Product Price

Product’s
Package
The Changing Communications
Environment
Marketers Have Shifted
Away From Mass
Marketing
Less Broadcasting

Market Fragmentation Led to

Two Factors

Media Fragmentation
are Changing the Face of Today’s
Marketing Communications:

Improvements in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting
The Need for Integrated Marketing
Communications

With Integrated Marketing Communications

(IMC), the Company Carefully Integrates
and Coordinates Its Many Communications
Channels to Deliver a Clear, Consistent,
and Compelling Message About the
Organization and Its Product or Service.
 Integrated Marketing
Communications (Fig. 14.1)

Advertising Personal selling

Sales promotion
Public relations

Direct marketing
 A View of the Communications
Process
Marketers View Communications as the
Management of the Customer Relationship Over
Time Through the Following Stages:

Preselling
Preselling Selling
Selling

Post-
Post- Consuming
Consumption
Consumption Consuming
Elements in the Communication
Process (Fig. 14.2)
 Key Factors in Good
Communication
Sellers
Sellers Need
Need toto Sellers
Sellers Must
Must Develop
Develop
Know
Know What
What Audiences
Audiences Feedback
Feedback Channels
Channels to
to
They
They Wish
Wish to
to Reach
Reach Assess
and Assess Audience’s
Audience’s
and Response
Response Response
Response to
to
Desired.
Desired. Messages.
Messages.

Sellers
Sellers Must
Must be
be Good
Good Sellers
Sellers Must
Must Send
Send
at
at Encoding
Encoding Messages
Messages Messages
Messages Through
Through
That
That Target
Target Audience
Audience Media
Media that
that Reach
Reach
Can
Can Decode.
Decode. Target
Target Audiences
Audiences
 Steps in Developing Effective
Communication
Step 1. Identifying the Target Audience

Step 2. Determining the Communication Objectives

Buyer Readiness Stages
Awareness
Knowledge
Liking
This ad for the Toyota Celica
may be able to cover the first
three stages of the buyer-
readines s s tages : awarenes s,
knowledge, and liking.

Preference
There is no mention of
competitors , so it does not
seem to establish preference.

Conviction
Purchase
Purchase
 Steps in Developing Effective
Communication
Step 3. Designing a Message
Is this ad making an emotional,
rational, or moral appeal, or is it
Is this an effective ad?
combining them? How much
do the personified cows
contribute to this ad?
The same company puts lifelike
statues of cows, with this slogan,
Is the ad structured to let the into mall food courts. What
audience make a decision? makes that practice effective?

Message Content
Rational Appeals
Emotional Appeals Message Structure
Moral Appeals Draw Conclusions
Designing a
Message
Argument Type Message Format
Content
The pictures and the
Argument Order Headline, Illustration,
slogan make this what

Copy, & Color

type of appeal?

Format
This layout, almost like
a yearbook or photo

Body Language
album, reinforces the
sentimental aspect
of this advertisement.

Click or press spacebar to return.

Steps in Developing Effective
Communication
Step 4. Choosing Media

Personal Communication
Channels
Nonpersonal Communication
Channels

Step 5. Selecting the Message Source

Step 6. Collecting Feedback

 Setting the Total Promotion Budget
One of the Hardest Marketing Decisions Facing a
Company is How Much to Spend on Promotion.

Affordable Percentage
Percentage of
of Sales
Sales
Based on What the Based
Basedon
onaaCertain
CertainPercentage
Percentage
Company Can Afford of
ofCurrent
Currentor
orForecasted
ForecastedSales
Sales

Objective-and-Task
Objective-and-Task Competitive-Parity
Competitive-Parity
Based
BasedononDetermining
Determining Based
Basedon
onthe
theCompetitor’s
Competitor’s
Objectives
Objectives&&Tasks,
Tasks,Then
Then Promotion
PromotionBudget
Budget
Estimating
EstimatingCosts
Costs
 Setting the Promotion Mix

Reach
Reach Many
Many Buyers,
Buyers, Repeat
Repeat Message
Message
Advertising
Advertising Many
Many Times,
Times, Impersonal,
Impersonal, Expensive
Expensive

Personal
Personal Personal
Personal Interaction,
Interaction, Relationship
Relationship
Selling
Selling Building,
Building, Most
Most Expensive
Expensive Promo
Promo Tool
Tool

Sales
Sales Wide
Wide Assortment
Assortment of
of Tools,
Tools, Rewards
Rewards
Promotion
Promotion Quick
Quick Response,
Response, Efforts
Efforts Short-Lived
Short-Lived

Public
Public Very
Very Believable,
Believable, Dramatize
Dramatize aa Company
Company
Relations
Relations or
or Product,
Product, Underutilized
Underutilized

Direct
Direct Nonpublic,
Nonpublic, Immediate,
Immediate, Customized,
Customized,
Marketing
Marketing Interactive
Interactive
 Promotion Mix Strategies

Strategy that Strategy that

Calls for Calls for Using
Spending A Lot the Salesforce
on Advertising and Trade
and Consumer Promotion to
Promotion to Push the
Build Up (Pull) Product Through
Consumer the Channels.
Demand.
 Integrating the Promotion Mix
Analyze trends – internal and external –
that can affect your company’s ability to do
business.
Audit the pockets of communications
spending through the organization.
Identify all contact points for the company
and its brands.
Team up in communications planning.
 Integrating the Promotion Mix

Create compatible themes, tones, and

quality across all communications media.
Create performance measures that are
shared by all communications elements.
Appoint a director responsible for the
company’s persuasive communications efforts.
 Socially Responsible Marketing
Communication
• Advertising and Sales Promotion
 Companies must avoid false and deceptive advertising.
 Sellers must avoid bait-and-switch advertising.
 Trade promotion activities are also closely regulated.
• Personal Selling
 Salespeople must follow the rules of “fair competition”.
 Three-day cooling-off rule
 Salespeople must not disparage competitors.
 Review of Concept Connections
• Name and define the tools of the marketing
communication mix.
• Discuss the process and advantages of
integrated marketing communication.
• Outline the steps in developing effective
marketing communications.
• Explain the methods for setting the promotion
budget and factors that affect the design of the
promotion mix.
Definition of Advertising
Any paid form of nonpersonal presentation and
promotion of ideas, goods, or services by an
identified sponsor
 Advertising is used by:
Business firms  Nonprofit organizations,
 Professionals  Social Agencies
Signage in ancient times offers evidence of early
advertising
Modern ad spending tops $231 billion in U.S. annually,
$500 billion worldwide
 Major
Major Decisions
Decisions in
in Advertising
Advertising

Objectives
Objectives Setting
Setting

Budget
Budget Decisions
Decisions

Message
Message Decisions
Decisions Media
Media Decisions
Decisions

Campaign
Campaign Evaluation
Evaluation
Objectives Setting:
Specific Communication task to be accomplished with a
specific Target Audience during a specific period of time
• Adv. objectives can be classified by primary purpose:
Inform: Builds Primary Demand
 Introducing new products
 Suggesting new uses for a product
Informing the market of a price change
Explaining how the product works
Describing available services
Correcting the false impressions
Reducing consumer’ fears
 Building a company image
Informative ad. is heavily used when introducing a new good
Objectives Setting:
 Persuade: Builds Selective Demand
Building brand preference
Encouraging switching to your brand
Changing customer’s perception of product attribute
Persuading customer to purchase now
Persuading customer to receive a sales call
Becomes more important as competition increases comparative adv.
Remind: Keeps consumers thinking about a good
Reminding consumer for future use
Reminding consumers where to buy it
Keeping it in customer’s mind during off-seasons
 Maintaining its top-of-mind awareness
Most important for mature products
Setting the budget:
Advertising Budget Methods:
 Affordable  Percentage of Sales
 Competitive-Parity and Objective-and-Task

Several factors should be considered

when setting the ad budget:
 Stage in the PLC  Market share
Level of competition  Advertising clutter
 Degree of brand differentiation
Developing the advertising strategy
Creative challenges
Media fragmentation Soaring media costs Adv. clutter

 Creating ad messages
 Message strategy:
Plan a message strategy: General message to be
communicated to customers
 Process:
1.Develop a Message: Focus on Customer Benefits
2. Creative Concept:“Big Idea”-Visualization or Phrase combination of both
3. Advertising Appeals: Meaningful, Believable, Distinctive
Developing the advertising strategy
Message execution:
 Turning the “Big Idea” into an actual ad to capture the target
market’s attention and interest.
 Many execution styles: Tone, format, illustration, headline, copy
Different execution styles:

• Slice of Life • Personality Symbol

• Lifestyle • Technical Expertise
• Fantasy • Scientific Evidence
• Mood or Image • Testimonial Evidence or
• Musical Endorsement
Choose tone, words, format
 Selecting
Selecting Advertising
Advertising Media
Media
Step
Step 1.
1. Decide
Decide on
on Reach,
Reach, Frequency,and
Frequency,and Impact
Impact
Step
Step 2.
2. Choosing
Choosing Among
Among Major
Major Media
Media Types
Types
Media
Mediahabits
habitsofofTarget
TargetConsumers
Consumers
Nature
Natureofofthe
theProduct
Product
Type
TypeofofMessage
Message
Cost
Cost

Step
Step 3.
3. Selecting
Selecting Specific
Specific Media
Media Vehicles
Vehicles
Specific
Specificmedia
mediawithin
withinaagiven
givenType,
Type,i.e.
i.e.Magazines.
Magazines.
Must
Mustbalance
balanceMedia
MediaCost
Costagainst
againstMedia
MediaFactors:
Factors:
Audience
AudienceQuality
Quality&&Attention,
Attention,Editorial
EditorialQuality
Quality

Step
Step 4.
4. Deciding
Deciding on
on Media
Media Timing
Timing
Scheduling
SchedulingofofAdvertising
AdvertisingOver
Overthe
theCourse
CourseofofaaYear
Year
Pattern
PatternofofAds:
Ads:Continuity
ContinuityororPulsing
Pulsing
Step 2. Choosing among major media types
• Newspapers Advantages
• Television • Flexibility, timeliness, good local market coverage,
• Direct Mail acceptability, believability
• Radio • Mass-market coverage,low cost per exposure,
combination of sight, sound, motion, appealing
• Audience selectivity, flexibility,no ad. competition,
• Magazines
personalization
• Outdoor
• Local acceptance, high geographic and demographic
• Internet selectivity, low cost
• High geographic & demographic selectivity,
credibility & prestige, quality reproduction, long life,
good pass-along readership
• Flexibility,repeat exposures, low cost, low message
competition, positional selectivity
• High selectivity, low cost, immediacy, interactive
capabilities
Step-2. Choosing among major media types
• Newspapers
Limitations
• Television
• Short life, poor reproduction quality, small pass long
• Direct Mail audience
• Radio • High absolute costs, high clutter, fleeting exposure, less
audience selectivity
• Relatively high cost per exposure, junk mail image
• Audio only, fleeting exposure , low attention-the half heard
• Magazines medium, fragmented audiences

• Outdoor
• Long ad. purchase lead time, high cost, no guarantee of
• Internet position
• Little audience selectivity, creative limitations
• Small, demographically skewed audience, relatively low
impact, audience controls exposures
Advertising Campaigns Evaluation
• Measuring communications effects
 Copy testing
 Consumer recall
 Product awareness
 Product knowledge
 Product preference
• Measuring sales effect
 Past vs. current sales comparison
 Experimentation
 Other Advertising Considerations
• Two additional points while developing ad. strategies
and programs: How to organize ad. function and How to adapt ad.
strategies to international markets
a.Organizing the Advertising Function
 Small vs. large companies
 Nature of advertising agencies
 Advantages of advertising agencies
 Departments
 Compensation
 Changes in agency services
 Other Advertising Considerations
b. Advertising to International Markets
 Standardizing worldwide advertising
 Advantages include lower advertising costs,
greater global advertising coordination, and
consistent global image
 Drawbacks include ignoring differences in culture,
demographics, and economic conditions.
 Most marketers think globally but act locally to
meet local cultures, customs, media characteristics and
ad regulations.
Definition of Sales Promotion:
 Sales Promotions are short-term incentives to encourage the
purchase or sale of a product or service

Sales Promotions offers reasons to buy now whereas adv. &

personal selling offer reasons to buy now

 Can be targeted at final buyers, retailers and wholesalers,

business customers, and members of the sales force.
Rapid growth of Sales Promotions

 Rapid growth in the industry has

been achieved because:

 Product managers are facing more pressure to

increase their current sales,
 Companies face more competition,
 Advertising efficiency has declined,
 Consumers have become more deal oriented.
 Sales Promotion Objectives

• Objectives - Consumer Promotions:

 Increase short-term sales
 Entice consumers to try a new product
 Lure customers away from competitors’
products
 Get consumers to “load up’ on a mature
product
 Hold & reward loyal customers
 Consumer relationship building
 Sales Promotion Objectives
• Objectives - Trade Promotions:
 Obtaining distribution and shelf space
 Persuade retailers/ wholesalers to carry a brand
 Encouraging retailers to advertise the brand
 Push a brand to consumers
• Objectives - Sales Force Promotions:
 Signing up new accounts
 Generate Business Leads
 Stimulate Purchases
 Reward Customers
 Motivate Salespeople
 Consumer Promotion Tools

• Samples • Advertising
Specialties
• Coupon
• Patronage
• Cash Refunds Rewards
(Rebates)
• Point-of-Purchase
• Price packs Promotion
(cents-off deals)
• Contests, Games,
• Premiums and Sweepstakes
 Trade Promotion Tools
• Includes many of the same tools used in consumer
promotions such as contest, premiums, displays
 Discounts ( also called price-off, off-list, and off-invoice)
 Allowances
 Advertising allowances
 Display allowances

 Free goods
 Push money
 Specialty advertising items
 Business Promotion Tools

• Includes many of the same tools used

in consumer and trade promotions
 Two additional tools:
 Conventions and trade shows
 Sales contests
Key Decisions When Developing the
Sales Promotion Program:

 Size of the incentive

 Conditions for participation
 Promotion and distribution of the actual
sales promotion program
 Length of the promotional program
 Evaluation
 Surveys and experiments can be used
 What
What is
is Public
Public Relations?
Relations?
• Building good relations with the company’s various publics by
obtaining favorable publicity, building up a good “corporate
image” and handling or heading off unfavorable rumors, stories
and events.
• Major functions are:
 Press Relations
 Product Publicity
 Public Affairs
 Lobbying
 Investor Relations
 Development
Role and Impact of Public Relations

 Advantages:
Strong impact on public awareness at
lower cost than advertising
 Greater credibility than advertising

 Publicity is often underused

 Good public relations can be a
powerful brand-building tool
Major
Major Public
Public Relations
Relations Tools
Tools
Public
Public Web
Service
Service WebSite
Site
Activities
Activities
News
News

Corporate
Corporate
Identity
Identity
Materials
Materials
Speeches
Speeches

Audiovisual
Audiovisual
Materials
Materials
Written
Written Special
Special
Materials
Materials Events
Events
Click
Majorto
Major
Click to add
add title
Public
Public Relations
Relations Decisions
title Decisions

Setting
SettingPublic
Public Relations
Relations Objectives
Objectives

Choosing
Choosing the
the Public
PublicRelations
RelationsMessages
Messages
and
and Vehicles
Vehicles

Implementing
Implementingthe
the Public
Public Relations
RelationsPlan
Plan

Evaluating
Evaluating Public
PublicRelations
RelationsResults
Results