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Integrated Marketing Communications

Marketing Report
by

Kristine Paula S

on 12 August 2013

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Transcript of Integrated Marketing Communications

Ms. Kristine Paula D. Sabido
Designing and Managing Integrated
Marketing Communications

*What are the major steps in developing effective marketing communications?
*What steps are involved in developing an advertising program?
*What explains the growing use of sales promotion, and how are sales-promotion decisions made?
*How can companies exploit the marketing potential of public relations and publicity?
DEVELOPING EFFECTIVE
MARKETING COMMUNICATIONS
(1) identify the target audience
(2) determine the communication objectives
(3) design the message
(4) select the communication channels
(5) establish the total communications budget
(6) decide on the communications mix,
(7) measure the communications’ results
(8) manage the integrated marketing
communication process.
Step 1: Identifying the
Target Audience
The first step is to identify a clear target audience: potential buyers of the company’s products, current users, deciders, or influencers; individuals, groups, particular publics, or the general public. The target audience is a critical influence on the communicator’s decisions about what to say, how to say it, when to say it, where to say it,
and to whom to say it.
Step 2: Determining the
Communication Objectives
Knowing the target audience and its perceptions, the marketing communicator can now decide on the desired audience response, seeking a cognitive, affective, or behavioral response. That is, the marketer might want to put something into the consumer’s
mind, change an attitude, or get the consumer to act.
Developing Effective Marketing Communications
Step 3: Designing the Message
Having defined the desired response, the communicator moves to developing an
effective message. Ideally, the message should gain attention, hold interest, arouse desire,
and elicit action (AIDA model). In practice, few messages
take the target audience all the way from awareness through purchase, but the
AIDA framework suggests the desirable qualities of any communication. Formulating
the message will require solving four problems: what to say (message content), how to
say it logically (message structure), how to say it symbolically (message format), and
who should say it (message source).
Message Content
In determining message content, management searches for an appeal, theme, idea, or
unique selling proposition. There are three types of appeals:
*
Rational appeals
engage self-interest by claiming the product will produce certain benefits such as value or performance.

*
Emotional appeals
attempt to stir up negative or positive emotions that will motivate purchase.

*
Moral appeals
are directed to the audience’s sense of what is right and proper.
Message Structure
*Message effectiveness depends on structure as well as content.

*effectiveness not only depends on the message content, though it is no doubt
an important component, but on its structure as well.

*The important aspects of message structure are:
-Drawing conclusions,
-repetition,
-one –versus- two-sided arguments, and
-the order of presentation.
Message Format
The communicator must develop a strong message format. In a print ad, the communicator
has to decide on headline, copy, illustration, and color. For radio, the communicator
has to choose words, voice qualities, and vocalizations. If the message is to be
carried on television or in person, all of these elements plus body language (nonverbal
clues) have to be planned. If the message is carried by the product or its packaging,
the communicator has to pay attention to color, texture, scent, size, and shape. Webbased
messages have the flexibility to combine aspects of print, radio, and television
messages with a variety of special effects and interactive features to attract, retain, and
reinforce audience interest.
Message Source
Messages delivered by attractive or popular sources achieve higher attention and recall, which is why advertisers often use celebrities as spokespeople.

Three factors that underly source credibility are
expertise
,
trustworthiness
, and
likability
.
Step 4: Selecting Communication Channels
Now that the message has been designed, the communicator must select efficient communication select efficient communication channels to carry it. For example, pharmaceutical salespeople can rarely wrest more than 10 minutes’ time from a busy physician. Because personal selling is expensive, the industry has added multiple channels: ads in medical journals, direct mail (including audio and videotapes), sampling, telemarketing, Web sites, conferences and teleconferences, and more. All of these channels are used in the hope of building physician preference for particular branded drug products.

In general, firms can use two types of communication channels:
personal and nonpersonal.
Personal Communication Channels
Personal communication channels involve two or more persons communicating directly with each other face to face, person to audience, over the telephone, or through e-mail. These channels derive their effectiveness through the opportunities for individualizing the presentation and feedback.

Amazon.com, for example, invites on-line customers to sign up for e-mailed reviews and recommendations from experts in their choice of book, music, toy, and home improvement subjects.
*Identify influential individuals and companies and devote extra effort to them:
*Create opinion leaders by supplying certain people with the product on attractive terms
*Work through community influentials such as local disk jockeys and heads of civic
*Use influential or believable people in testimonial advertising
*Develop advertising that has high “conversation value”
*Develop word-of-mouth referral channels to build business
*Establish an electronic forum
Nonpersonal Communication Channels
Nonpersonal channels include
media, atmospheres, and events
.

*
Media
consist of printmedia (newspapers, magazines, direct mail), broadcast media (radio, television), electronic media (audiotape, videotape, CD-ROM, DVD, Web page), and display media (billboards, signs, posters). Most nonpersonal messages come through paid media.

*
Atmospheres

are “packaged environments” that create or reinforce the buyer’sleanings toward product purchase.

*Events
a
re occurrences designed to communicate particular messages to target
audiences.
Step 5: Establishing the Marketing
Communications Budget
*Affordable method.
*Percentage-of-sales method.
*Competitive-parity method.
*Objective-and-task method.
Step 6: Developing and Managing the MarketingCommunications Mix
Having established a communications budget, companies must decide how to allocate it over the five promotional tools. Companies differ considerably in their allocations, even within the same industry.
Avon concentrates its promotional funds on personal selling, whereas Cover Girl spends heavily on advertising. Still, because companies are always searching for more efficiency by substituting one promotional tool for another, they must be careful to coordinate all of their marketing functions.
Promotional Tools
1. Advertising.
2. Sales promotion.
3. Public relations and publicity.
4. Personal selling.
5. Direct marketing.
Advertising
Advertising can be used to build up a long-term image for a product
(Coca-Cola ads) or trigger quick sales (a Sears ad for a weekend sale). Advertising
can reach geographically dispersed buyers efficiently. Certain forms of advertising
(TV advertising) typically require a large budget, whereas other forms (newspaper
advertising) can be done on a small budget.
Sales Promotion
Although sales-promotion tools—coupons, contests, premiums, andthe like—are highly diverse, they offer t
hree distinctive benefits:

(
1) communication (they gain attention and usually provide information that may lead the consumer to the product);
(2) incentive (they incorporate some concession or inducement that gives value to the consumer); and
(3) invitation (they include a distinct invitation to engage in the transaction now).
Sales promotion can be used for short-run effects such as dramatizing product offers and boosting sales.
Public Relations and Publicity
The appeal of public relations and publicity is based on
three distinctive qualities:

(1) high credibility (news stories and features are more
authentic and credible than ads);
(2) ability to catch buyers off guard (reach prospects
who prefer to avoid salespeople and advertisements); and
(3) dramatization (the potential for dramatizing a company
or product).
Personal Selling

three distinctive qualities:

(1)
personal confrontation
(it involves an immediate and interactive relationship between two or more persons);
(2)
cultivation
(it permits all kinds of relationships to spring up, ranging from a matter-of-fact selling relationship to a deep personal friendship);
(3)
response
(it makes the buyer feel under some obligation for having listened to the sales talk).
Direct Marketing
All forms of direct marketing—direct mail, telemarketing, Internet
marketing—share
four distinctive characteristics:
(1) nonpublic
(the message is normally addressed to a specific person);
(2) customized
(the message can be prepared to appeal to the addressed individual);
(3) up-to-date
(a message can be prepared very quickly);
(4) interactive
(the message can be changed depending on the person’s response).
Factors in Setting the Marketing
Communications Mix
*Type of product market.
*Push-versus-pull strategy.
*Buyer-readiness stage.
*Product-life cycle stage.
*Company market rank.
Step 7: Measuring Results
After implementing the promotional plan, the communicator must measure its
impact. Members of the target audience are asked whether they recognize or recall
the message, how many times they saw it, what points they recall, how they felt
about the message, and their previous and current attitudes toward the product and company. The communicator should also collect behavioral measures of audience
response, such as how many people bought the product, liked it, and talked to
others about it.
Step 8: Managing the Integrated Marketing Communications
As defined by the American Association of Advertising Agencies, integrated marketing communications (IMC) is a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communications disciplines—for example, general advertising, direct response, sales promotion and public relations—and combines these disciplines to provide clarity, consistency, and maximum communications’ impact through the seamless integration of discrete messages.
DEVELOPING AND MANAGING THE
ADVERTISING CAMPAIGN
Setting the Advertising Objectives
*Informative advertising
*Persuasive advertising
*Reminder advertising
Deciding on the Advertising Budget
1. Product life cycle stage:
2. Market share and consumer base:
3. Competition and clutter
4. Advertising frequency:
5. Product substitutability
Choosing the Advertising Message
In developing a creative strategy,
advertisers follow
four steps:
message generation

message evaluation and selection

message execution

social responsibility review.
Developing Media Strategies
1. deciding on desired
reach
,
frequency
, and
impact;

2. choosing among major media types;
3. selecting specific media vehicles; deciding on media timing
4. deciding on geographical media allocation
Deciding on Reach, Frequency, and Impact
*Reach (R):
The number of different persons or households that are exposed to aparticular media schedule at least once during a specified time period.

*
Frequency (F):
The number of times within the specified time period that an average person or household is exposed to the message.

*
Impact (I):
The qualitative value of an exposure through a given medium (thus a
food ad in Good Housekeeping would have a higher impact than the same ad in the
Police Gazette).
Selecting Media and Vehicles
Variables to Consider:

*Target-audience media habits:
*Product
*Message
*Cost
Audiences can be measured according to:

(1) circulation,
the number of physical units carrying the advertising;
(2) audience,
the number of people exposed to the vehicle (with pass-on readership, a print vehicle will have a larger audience than its circulation figures suggest);
(3) effective audience,
the number of people with target audience characteristics exposed to the vehicle;
(4) effective ad-exposed audience,
the number of people with target audience characteristics who actually saw the ad.
Deciding on Media Timing
In launching a new product, the advertiser can choose among

-ad continuity
-concentration
-flighting
-pulsing
Deciding on Geographical Allocation
consider area differences in:
-market size
-advertising response
-media efficiency
-competition
-profit margins
Evaluating Advertising Effectiveness
Advertisers should try to measure the communication effect of anad—that is, its potential effect on awareness, knowledge, or preference—as well as the ad’s sales effect:

*Communication-effect research

*Sales-effect research
SALES-PROMOTION STRATEGIES
Sales promotion, a key ingredient in many marketing campaigns, consists of a diverse collection of incentive tools, mostly short term, designed to stimulate trial, or quicker or greater purchase, of particular products or services by consumers or the trade. Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy. Sales promotion includes tools for
consumer promotion
(samples, coupons, cash refund offers, prices off, premiums, prizes, patronage rewards, free trials, warranties, tie-in promotions, cross-promotions, point-of-purchase displays, and demonstrations);
trade promotion
(prices off, advertising and display allowances, and free goods), and
business and
sales force promotion
(trade shows and conventions, contests for sales reps, and specialty advertising).
Purpose of Sales Promotion
*price promotions

*added-value promotions
Major Decisions in Sales Promotion
1. Establishing objectives.
2. Selecting consumer-promotion tools.
3. Selecting trade-promotion tools.
4. Selecting business- and sales force promotion tools.
5. Developing the program.
6. Pretesting the program.
7. Implementing and evaluating the program.
PUBLIC RELATIONS STRATEGIES
PR departments typically perform five functions:

(1) press relations

(presenting news and information about the organization in the most positive light);

(2) product publicity
(publicizing specific products);

(3) corporate communication
(promoting understanding of the organization through internal and external communications);

(4) lobbying
(dealing with legislators and government officials to promote or defeat legislation and regulation); and

(5) counseling
(advising management about public issues and company positions and image—and advising in the event of a mishap).
Marketing Public Relations
*Assisting in the launch of new products
*Assisting in repositioning a mature product
*Building interest in a product category
*Influencing specific target groups
*Defending products that have encountered public problems:
*Building the corporate image in a way that reflects favorably on its products:
Major Decisions in Marketing PR
*Establishing the marketing objectives.
*Choosing messages and vehicles.
*Implementing and evaluating the plan.
->exposures, product awareness,
comprehension, or attitude resulting from the MPR campaign
Affordable Method
Many companies set the promotion budget at what management thinks the firm can afford. However, this method ignores the role of promotion as an investment and the immediate impact of promotion on sales volume; it also leads
to an uncertain annual budget, making long-range planning difficult.
Percentage-of-sales Method
Many firms set promotion expenditures at a specified
percentage of sales (either current or anticipated) or of the sales price. Supporters
say this method links promotion expenditures to the movement of corporate sales
over the business cycle; encourages management to consider the interrelationship
of promotion cost, selling price, and unit profit; and encourages stability when
competing firms spend approximately the same percentage. On the other hand,
this method views sales as the determiner of promotion rather than as the result,
and it provides no logical basis for choosing the specific percentage.
Competitive-parity method.
Some companies set their promotion budget to achieve
share-of-voice parity with competitors. Although proponents say that competitors’
expenditures represent the collective wisdom of the industry and that maintaining
competitive parity prevents promotion wars, neither argument is valid. There are no
grounds for believing that competitors know better what should be spent on
promotion. Company reputations, resources, opportunities, and objectives differ so
much that promotion budgets are hardly a guide. Furthermore, there is no
evidence that competitive parity discourages promotional wars.
Objective-and-task method.
Here, marketers develop promotion budgets by defining
specific objectives, determining the tasks that must be performed to achieve these
objectives, and estimating the costs of performing these tasks. The sum of these
costs is the proposed promotion budget. This method has the advantage of
requiring management to spell out assumptions about the relationship among
dollars spent, exposure levels, trial rates, and regular usage.
Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.15 Advertisers include not only business firms but also museums, charitable organizations, and government agencies that direct messages to target publics. Ads are a cost-effective way to disseminate messages, whether to build brand preference for Intel computer chips or to educate people about the dangers of drugs.
Product Life Cycle Stage
New products typically receive large budgets to build awareness
and to gain consumer trial. Established brands usually are supported with lower budgets as a ratio to sales.
Competition and clutter:
In a market with a large number of competitors and high
advertising spending, a brand must advertise more heavily to be heard. Even simple
clutter from advertisements that are not directly competitive to the brand creates a
need for heavier advertising.
Market share and consumer base:
High-market-share brands usually require less advertising
expenditure as a percentage of sales to maintain their share. To build share by increasing market size requires larger advertising expenditures. On a cost-per-impression basis, it is less expensive to reach consumers of a widely used brand than to reach consumers of low-share brands.
Advertising frequency
The number of repetitions needed to put across the brand’s message to consumers has an important impact on the advertising budget.
Product substitutability
Brands in a commodity class (cigarettes, beer, soft drinks)
require heavy advertising to establish a differential image. Advertising is also important when a brand offers unique benefits or features.
Message Generation
Creative people use several methods to generate possible advertising appeals.
Many creative people proceed inductively by talking to consumers, dealers, experts, and
competitors, while others use a deductive framework. Regardless of the process, how
many alternative ad themes should the advertiser create before choosing? The more
ads that are created, the higher the probability of finding an excellent one. Yet this is a
balancing act, because the more time spent on creating alternative ads, the higher the
costs, even with the use of computerized tools to create rough versions of ads.
Message Evaluation and Selection
A good ad normally focuses on one core selling proposition.

Messages should be rated on:

desirability,
exclusiveness,
and
believability.
Message Execution
The message’s impact depends not only upon what is said but also on how it is said. Some ads aim for rational positioning and others for emotional positioning. U.S. ads typically present an explicit feature or benefit with a rational appeal, such as “gets clothes cleaner,” while Japanese ads tend to be less direct and appeal more to the emotions.
Message Execution
In preparing an ad campaign, the advertiser usually prepares a copy strategy statement
describing the
objective, content, support, and tone
of the desired ad. Creative
specialists must also find a cohesive blend of
style, tone, words, and format
for executing
the message. Any message can be presented in a number of execution styles: slice of
life, lifestyle, fantasy, mood or image, musical, personality symbol, technical expertise,
scientific evidence, and testimonial.
Format elements such as ad size, color, and illustration will affect an ad’s impact
as well as its cost. Yet a minor rearrangement of mechanical elements can improve
attention-getting power. Larger-size ads gain more attention, though not necessarily by
as much as their difference in cost. Four-color illustrations increase ad effectiveness as
well as ad cost. Still, by carefully planning the relative dominance of different elements,
companies can achieve better message delivery.
Social Responsibility Review
Advertisers and their agencies must be sure their “creative” advertising does not overstepsocial and legal norms. Most marketers work hard to communicate openly andhonestly with consumers. Still, abuses occur, and public policymakers have developeda substantial body of laws and regulations to govern advertising. Under U.S. law, for example, companies must avoid false or deceptive advertising. Also, sellers are legally
obligated to avoid bait-and-switch advertising that attracts buyers under false pretenses. And, to be socially responsible, advertisers must be careful not to offend ethnic groups, racial minorities, or special-interest groups.
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