Part 7

Communicating Value

Reporters: Sheena O. Balagosa

Lenchen V. Amania
Chapter 19
DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS
InThisChapter,WeWillAddresstheFollowingQuestions

1. What is the role of marketing communications

2. What is the marketing communications mix?
3. How do marketing communications work?
4. What are the major steps in developing effective
communications?
5. How should the communications mix be set and evaluated?
6. What is an integrated marketing communications program?
Marketing Communication
Marketing Communication refers to the means adopted by the
companies to convey messages about the products and the
brands they sell, either directly or indirectly to the customers
with the intention to persuade them to purchase.
Marketing Communication
Marketing communications allow companies to link their brands
to other people, places, events, brands, experiences, feelings,
and things. They can contribute to brand equity—by establishing
the brand in memory and creating a brand image—as well as
drive sales and even affect shareholder value.

In other words, the different medium that company adopts to

exchange the information about their goods and services to the
customers is termed as Marketing Communication.
Marketing communication offer solutions to the following questions:

• Why shall the product be used?

• How can the product be used?
• Who can use the product?
• Where can the product be used? And
• When can the product be used?
Communication Mix
The communication mix refers to specific methods used to
promote the company or its products to targeted customers.
The marketing communications mix consists of eight major modes of
communication:

1. Advertising
2. Sales promotion
3. Events and experiences
4. Public relations and publicity
5. Online and social media marketing
6. Mobile marketing
7. Direct and database marketing
8. Personal selling
How Do Marketing Communications Work?

• Marketing communication activities in every medium

contribute to brand equity and drive sales in many ways: by
creating brand awareness, forging brand image in consumers’
memories, eliciting positive brand judgments or feelings, and
strengthening consumer loyalty.

• But marketing communications activities must be integrated

to deliver a consistent message and achieve the strategic
positioning. The starting point in planning them is a
communication audit that profiles all interactions customers in
the target market may have with the company and all its
products and services.
The Communications Process Models

Marketers should understand the fundamental elements of

effective communications. Two models are useful: a macro model
and a micro model.
Macro Model
The Communications Process Models

Two represent the major parties—sender and receiver.

Two represents the major tools—message and media

Four represent major communication functions—encoding,

decoding, response, and feedback.

The last element in the system is noise, random and competing

messages that may interfere with the intended communication.
Micro Model
Micro-models of marketing communications concentrate on
consumers' specific responses to communications.

The below figure summarizes four classic response hierarchy

models. All these models suppose the buyer passes through
cognitive, affective, and behavioral stages, in that order.
Hierarchy of Effects Model
To increase the odds of success for a communications campaign, marketers
must attempt to increase the likelihood that each step occurs.

For example, the ideal ad campaign would ensure that:

1. The right consumer is exposed to the right message at the right

place and at the right time.
2. The ad causes the consumer to pay attention but does not
distract from the intended message.
3. The ad properly reflects the consumer’s level of understanding
of and behaviors with the product and the brand.
4. The ad correctly positions the brand in terms of desirable and
deliverable points-of-difference and points-of-parity.
5. The ad motivates consumers to consider purchase of the brand.
6. The ad creates strong brand associations with all these stored
communications effects so they can have an impact when
consumers are considering making a purchase.
Developing Effective Communications

1. Identify the target audience

2. Choose the communication objectives
3. Design the communications
4. Select the communication channels
5. Set the total communications budget
6. Choose the communications mix
7. Measure the communications results
8. Manage the integrated marketing communication
process.
Communications Objectives
John Rossiter and Larry Percy identify four possible objectives:

1. Establish need for category

2. Build brand awareness
3. Build brand attitude
4. Influence brand purchase intention
Design the Communications

Formulating the communications to achieve the desired response requires answering three questions:

what to say(message strategy)

how to say it (creative strategy)
who should say it (message source).
 
Communications Channels
Personal
(advocate, expert, and social channels)
 Nonpersonal
(media, atmospheres, and events)
Establish the Total Marketing Communications Budget
*One of the most difficult marketing decisions is choosing how much to spend on marketing communications.*

How do companies set their communications budgets?

We will describe four common methods:
1. Affordable method
2. Percentage-of-Sales Method
3. Competitive-Parity Method
4. Objective-and-Task Method
Factors in Setting the Marketing Communications Mix

Type of product market

Consumer readiness to make a purchase
Stage in the product life cycle.
Integrated Marketing Communications Process

In assessing the collective impact of an IMC program, the

marketer’s overriding goal is to create the most effective and
efficient communications program possible.
The following “six Cs” criteria can help determine whether
communications are truly integrated.

Coverage
Contribution
Commonality
Complementarity
Conformability
Cost