3. Chapter Questions
• What is the role of marketing communications?
• What are the major steps in developing effective communications?
• What is the communications mix and how should it be set?
• What is an integrated marketing communications program?
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4. Modes of Marketing Communications
• Advertising
• Sales promotion
• Events and experiences
• Public relations and publicity
• Direct marketing
• Interactive marketing
• Word-of-mouth marketing
• Personal selling
• Social Media Marketing
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5. Table 15.1 Communication Platforms: Advertising
• Print and broadcast ads
• Packaging inserts
• Motion pictures
• Brochures and booklets
• Posters
• Billboards
• POP displays
• Logos
• Videotapes
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7. Table 15.1 Communication Platforms: Events and
Sponsorships
• Sports
• Entertainment
• Festivals
• Art
• Causes
• Factory tours
• Company museums
• Street activities
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8. Table 15.1 Communication Platforms: Public Relations
• Press kits
• Speeches
• Seminars
• Annual reports
• Charitable donations
• Publications
• Community relations
• Lobbying
• Identity media
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9. Table 15.1 Communication Platforms: Personal Selling
• Sales presentations
• Sales meetings
• Incentive programs
• Samples
• Fairs and trade shows
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10. Table 15.1 Communication Platforms: Direct Marketing
• Catalogs
• Mailings
• Telemarketing
• Electronic shopping
• TV shopping
• E-mail
• Voice mail
• Websites
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11. An Ideal Ad Campaign
• The right consumer is exposed to the message at the right time and
place
• The ad causes consumer to pay attention
• The ad reflects consumer’s level of understanding and behaviors the
with product
• The ad correctly positions brand in terms of points-of-difference and
points-of-parity
• The ad motivates consumer to consider purchase of the brand
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12. The right consumer is exposed
to the message at the right time
and place
12
13. The right consumer is exposed
to the message at the right time
and place
13
14. The ad causes consumer to pay attention
http://www.webpronews.com/people-in-haiti-read-firstworldproblems-
tweets-2012-10
14
15. The ad reflects consumer’s level of
understanding and behaviors with the
product
http://bit.ly/180JLUn
15
16. The ad correctly positions brand in terms
of points-of-difference and points-of-parity http://youtu.be/9O2i28DU7fY
16
17. The ad motivates consumer to consider
purchase of the brand http://youtu.be/e9RYAmubI2o
17
18. An Ideal Ad Campaign
• The right consumer is exposed to the message at the right time and
place
• The ad causes consumer to pay attention
• The ad reflects consumer’s level of understanding and behaviors the
with product
• The ad correctly positions brand in terms of points-of-difference and
points-of-parity
• The ad motivates consumer to consider purchase of the brand
18
20. Steps in Developing Effective
Communications
1.Identify target audience
2.Determine objectives
3.Design communications
4.Select channels
5.Establish budget
6.Decide on media mix
7. Manage the IMC
8.Measure results
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21. 1. Identify Target Market
Often Segment Based - Recall
Segments from Chapter 7
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22. 2. Communications Objectives
• Category need: Establish a product or service category as
necessary to remove or satisfy a perceived discrepancy between a
current motivational state and desired emotional state
• Brand awareness: Foster the consumer’s ability to recognize or
recall the brand within a category
• Brand attitude: Help customers evaluate the brands perceived
ability to meet a current relevant need
• Purchase intention: Move consumers to decide to purchase the
brand or take related action
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25. 3. Designing the Communications
• What to say (Message Strategy), how to say it (Creative
Strategy) and who should say it (Message Source).
• Lets look at the new Ford Escape
• Message: Convenience and Technology
• Creative: Show it in real use, how it can solve problems
• Source: Delivered by people who represent the target segment
and Ford Employees
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28. 4. Select the Channels Mass Communication Channels
28
29. 4. Select the Channels
Choose Channels Most Related
to Your Segment
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30. 5. Establish the Budget
• Affordable: Setting the budget on what the managers think the
company can afford
• Percentage of Sales Method: Setting the communication budget
at a specified percentage of current or anticipated sales
• Competitive Parity: Setting the communication budget to achieve
share of voice parity with competitors
• Objective and Task Based: Developing the budget by defining
specific objectives, determining tasks that must be performed to
meet those objectives, and estimating the costs associated with
them
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36. Measuring What Matters
• Measurement:
• Metrics to track results over time,
• Forecasts of future sales and costs,
• Budgets allocating financial resources,
• Schedules identifying the timing of marketing tasks,
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38. Metrics
• Focus employees on activities
that make a difference.
• Set up performance
expectations that can be
objectively measured.
• Lay a foundation for internal
accountability and pride in
accomplishments.
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39. Marketing Dashboard
• Computerized, graphical
presentation of metrics
measurements.
• Helps managers see the
situation at a glance, based
upon a limited number of data
inputs.
• Varying levels of dashboards:
Corporate, divisional, or
functional.
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40. Identifying Metrics
• Working backward from mission, goals, and objectives.
• Looking for key components or activities related to customer buying behavior.
• This would include metrics for each of the three key areas:
• Marketing objectives,
• Financial objectives, and
• Societal objectives.
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41. Sample Marketing Metrics
Objective Metric
To acquire new
customers.
Measure number or percentage
of new customers acquired by
month, quarter, year.
To retain current
customers.
Measure number or percentage
of customers who continue
purchasing during a set period.
To increase market
share.
Measure dollar or unit sales
divided by total industry sales
during a set period.
To accelerate product
development
Measure the time needed to
bring a new product to market.
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42. Sample Financial Metrics
Objective Metric
To increase sales
revenue by product.
Measure product sales in
dollars per week, month,
quarter, or year.
To improve profitability. Measure gross or net margin for
a set period by product, line,
channel, marketing program, or
customer.
To reach breakeven. Measure the number of weeks
or months until a product’s
revenue equals and begins to
exceed costs.
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43. Sample Societal Metrics
Objective Metric
To make products more
environmentally friendly.
Measure the proportion of each
product’s parts that are
recyclable or have been
recycled during a set period.
To build awareness of a
social issue.
Measure awareness among the
target audience after the
program or a set period.
To conserve electricity
or fuel.
Measure amount used by
month, quarter, year.
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44. Sample Behavioral Metrics
Objective Metric
To make products more
environmentally friendly.
Measure the proportion of each
product’s parts that are
recyclable or have been
recycled during a set period.
To build awareness of a
social issue.
Measure awareness among the
target audience after the
program or a set period.
To conserve electricity
or fuel.
Measure amount used by
month, quarter, year.
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45. Internal/External and
Forward/Backward
• To be effective in implementing
and evaluating your plan,
metrics chosen must be:
• Both internal and external, and
• Both backward-looking and
forward-looking.
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46. Using Metrics
• Metrics are most valuable to
the marketer when viewed in
the context of:
• Expected outcomes
• Historical results
• Competitive or industry
outcomes
• Environmental influences
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47. Forecasts
• Future projections of what sales and costs are likely to be.
• Can never be more than good estimates.
• Need to be reviewed often.
• Must account for the impact of marketing programs.
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48. Budgets
• Budgets are time-defined allocations of financial outlays for specific
functions, programs, customer segments, or geographic regions.
• Enable marketing managers to:
• Allocate expenses, and
• Compare estimates with actual expenses.
• If you become good at one thing, learn how to manage a budget
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50. Affordability Budgeting
• Budgeting what you believe you can afford.
• May work for start-ups.
• Doesn’t allow for the kinds of significant, ongoing investments often needed
to launch major new products or enter intensely competitive markets.
• Ignores profit payback calculation.
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51. Percentage-of-Sales Budgeting
• Advantage:
• Simple to implement.
• Disadvantages:
• Sales are seen as the source of marketing funding, rather than as the result
of budget investments.
• Difficult to justify the % set aside for marketing.
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52. Competitive-Parity Budgeting
• Advantage:
• Simple to implement.
• Disadvantages:
• Ignores differences between companies.
• Doesn’t allow for adjustments to meet specific marketing objectives.
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53. Objective-and-Task Budgeting
• Adding up the cost of completing all of the marketing tasks needed to
achieve marketing plan objectives.
• Advantage:
• A reasonable build-up method.
• Disadvantage:
• May add up to more than the firm can afford. Priorities may have to be
established.
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54. Budgets Within the Marketing Budget
• For each marketing mix program,
• For each brand, segment, or market,
• For each region or geographic division,
• For each division or product manager, and
• Summarizing overall marketing expenses.
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55. Schedules
• Schedules are time-defined plans for completing a series of tasks or activities
related to a specific program or objective.
• Help avoid conflicts.
• Help measure progress toward completion.
• http://office.microsoft.com/en-us/templates/results.aspx?qu=marketing
+plan&ex=1&origin=TC001145556#ai:TC001142853|
• http://office.microsoft.com/en-us/templates/results.aspx?qu=marketing
+plan&ex=1&origin=TC001145556#ai:TC001146469|
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56. The Scheduling Process
• List the main tasks and activities.
• Assign each a projected start and end date.
• Determine who is responsible for each task.
• Develop an overall summary schedule.
• Develop detailed schedules for each sub-program.
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57. ROMI Equation
• ROMI - Return on Marketing Investment
• ROMI = Net Profit attributed to Marketing Activity/Marketing Investment
• Example - $20,000 Profit and $6,000 Marketing Spend = 333%
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58. Preparing for Week 11
• Read Chapters:
• Kottler: Chapters 16, 17
• Written Assignment #4: Give an example of a current successful
advertising campaign. Why do you feel it is successful?
58
