Imc1. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 1 in Chapter 16
Designing andDesigning and
Managing IntegratedManaging Integrated
MarketingMarketing
CommunicationsCommunications
2. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 2 in Chapter 16
ObjectivesObjectives
Learn the major steps in developing an
effective integrated marketing
communications program.
Understand the steps involved in
developing an advertising program.
Learn how companies can exploit the
marketing potential of sales promotion,
public relations, direct marketing, and
e-marketing.
3. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 3 in Chapter 16
Marketing CommunicationsMarketing Communications
Advertising
Sales
Promotion
Public relations
Direct
marketing
Personal selling
Communications Platforms
4. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 4 in Chapter 16
The Marketing Communications
Mix
The Marketing Communications
Mix
AdvertisingAdvertising
Personal SellingPersonal Selling
Any Paid Form of Nonpersonal
Presentation by an Identified
Sponsor.
Any Paid Form of Nonpersonal
Presentation by an Identified
Sponsor.
Sales Promotion Short-term Incentives to
Encourage Sales.
Public Relations
Building Good Relations with
Various Publics by Obtaining
Favorable Unpaid Publicity.
Direct Marketing
Direct Communications
With Individuals to Obtain
an Immediate Response.
Personal Presentations by
a Firm’s Sales Force.
5. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 5 in Chapter 16
Figure : Elements in theFigure : Elements in the
Communication ProcessCommunication Process
6. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 6 in Chapter 16
Developing Effective MarketingDeveloping Effective Marketing
CommunicationsCommunications
Identify target audience
Determine objectives of
communication
Design the message
Select communication
channels
Establish the budget
Select the marketing
communications mix
Measure results
Manage the IMC
process
Steps in Marketing Communications
Program Development
7. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 7 in Chapter 16
Developing Effective MarketingDeveloping Effective Marketing
CommunicationsCommunications
Step 1: Identifying the target audience
– Includes assessing the audience’s
perceptions of the company, product, and
competitors’ company/product image
Step 2: Cognitive, affective, and
behavioral objectives may be set
Step 3: AIDA model guides message
design
8. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 8 in Chapter 16
Developing Effective MarketingDeveloping Effective Marketing
CommunicationsCommunications
Message Design
Content
Structure
Format
Source
Message content
decisions involve
the selection of
appeal, theme,
idea, or USP
Types of appeals
– Rational appeals
– Emotional appeals
– Moral appeals
9. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 9 in Chapter 16
Developing Effective MarketingDeveloping Effective Marketing
CommunicationsCommunications
Message Design
Content
Structure
Format
Source
One-sided vs.
two-sided
messages
Order of
argument
presentation
10. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 10 in Chapter 16
Developing Effective MarketingDeveloping Effective Marketing
CommunicationsCommunications
Message Design
Content
Structure
Format
Source
Message format
decisions vary with
the type of media,
but may include:
– Graphics, visuals
– Headline, copy or
script
– Sound effects,
voice qualities
– Shape, scent,
texture of package
11. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 11 in Chapter 16
Developing Effective MarketingDeveloping Effective Marketing
CommunicationsCommunications
Message Design
Content
Structure
Format
Source
Message source
characteristics can
influence attention
and recall
Factors underlying
perceptions of
source credibility:
– Expertise
– Trustworthiness
– Likability
12. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 12 in Chapter 16
Developing Effective MarketingDeveloping Effective Marketing
CommunicationsCommunications
Step 4: Selecting Communication
Channels
– Personal communication channels
Effectiveness derives from
personalization and feedback
Several methods of stimulating personal
communication channels exist
– Nonpersonal communication channels
Influence derives from two-step flow-of-
communication process
13. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 13 in Chapter 16
Developing Effective MarketingDeveloping Effective Marketing
CommunicationsCommunications
Devoting extra effort to
influential individuals or
companies
Creating opinion leaders
Working through influential
community members
Using influential people in
testimonial advertising
Developing advertising
with high “conversation
value”
Use viral marketing
Developing word-of-
mouth referral channels
Establishing an electronic
forum
Methods of Stimulating Personal
Communication
14. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 14 in Chapter 16
Developing Effective MarketingDeveloping Effective Marketing
CommunicationsCommunications
Step 5: Establishing the Marketing
Communications Budget
– Affordability method
– Percentage-of-sales method
– Competitive-parity method
– Objective-and-task method
Step 6: Deciding on the Marketing
Communications Mix
15. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 15 in Chapter 16
Developing Effective MarketingDeveloping Effective Marketing
CommunicationsCommunications
Communications
Mix Selection
Types of
promotional tools
Selection factors
Advertising
Sales promotion
Public relations
and publicity
Direct marketing
Personal selling
16. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 16 in Chapter 16
Developing Effective MarketingDeveloping Effective Marketing
CommunicationsCommunications
Communications
Mix Selection
Types of
promotional tools
Selection factors
Consumer vs.
business market
Stage of buyer
readiness
Stage of product
life cycle
Market rank
17. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 17 in Chapter 16
Developing Effective MarketingDeveloping Effective Marketing
CommunicationsCommunications
Step 7: Measure Results
– Recognition, recall, attitudes, behavioral
responses
Step 8: Manage the Integrated Marketing
Communications Process
– Provides stronger message consistency and
greater sales impact
– Improves firms’ ability to reach right
customers at right time with right message
18. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 18 in Chapter 16
Developing and Managing theDeveloping and Managing the
Advertising CampaignAdvertising Campaign
The Five Ms of
Advertising
Mission
Money
Message
Media
Measurement
Objectives can be
classified by aim:
– Inform
– Persuade
– Remind
– Reinforce
19. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 19 in Chapter 16
Developing and Managing theDeveloping and Managing the
Advertising CampaignAdvertising Campaign
Factors considered
when budget-setting:
– Stage of product life
cycle
– Market share and
consumer base
– Competition and
clutter
– Advertising frequency
– Product
substitutability
The Five Ms of
Advertising
Mission
Money
Message
Media
Measurement
20. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 20 in Chapter 16
Developing and Managing theDeveloping and Managing the
Advertising CampaignAdvertising Campaign
Factors considered
when choosing the
advertising message:
– Message generation
– Message evaluation
and selection
– Message execution
– Social responsibility
review
The Five Ms of
Advertising
Mission
Money
Message
Media
Measurement
21. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 21 in Chapter 16
Developing and Managing theDeveloping and Managing the
Advertising CampaignAdvertising Campaign
Developing media
strategy involves:
– Deciding on reach,
frequency, and impact
– Selecting media and
vehicles
– Determining media
timing
– Deciding on
geographical media
allocation
The Five Ms of
Advertising
Mission
Money
Message
Media
Measurement
22. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 22 in Chapter 16
Developing and Managing theDeveloping and Managing the
Advertising CampaignAdvertising Campaign
Newspapers
Television
Direct mail
Radio
Magazines
Outdoor
Yellow pages
Newsletters
Brochures
Telephone
Internet
Major Media Types
23. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 23 in Chapter 16
Developing and Managing theDeveloping and Managing the
Advertising CampaignAdvertising Campaign
Deciding on Media Categories
– Target audience’s media habits, nature of
the product and message, cost
Media Timing Decisions
– Macroscheduling vs. microscheduling
– Continuity, concentration, flighting, and
pulsing scheduling options
Deciding on Geographical Allocation
24. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 24 in Chapter 16
Developing and Managing theDeveloping and Managing the
Advertising CampaignAdvertising Campaign
Evaluating
advertising
effectiveness
– Communication-
effect research
– Sales-effect
research
The Five Ms of
Advertising
Mission
Money
Message
Media
Measurement
25. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 25 in Chapter 16
Sales PromotionSales Promotion
Sales promotions are short-term
incentives designed to stimulate
purchase among consumers or trade
Purpose of sales promotion
– Attract new triers or brand switchers
– Reward loyal customers
– Increase repurchase rates
26. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 26 in Chapter 16
Three Targeted Groups ofThree Targeted Groups of
Sales PromotionsSales Promotions
Consumer Promotion: Targeting end users.
Trade promotion: Targeting Intermediaries.
Sales-force Promotion: Targeting Sales-force.
27. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 27 in Chapter 16
Sales PromotionSales Promotion
Establish objectives
Select consumer-
promotion tools
Select trade-promotion
tools
Select business- and
sales force promotion
tools
Develop the program
Pretest the program
Steps in Sales Promotion
Program Development
Implement and evaluate the program
28. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 28 in Chapter 16
Sales PromotionSales Promotion
Samples
Coupons
Cash refunds (rebates)
Premiums
Prizes (contests,
sweepstakes, games)
Patronage awards
Free trials
Product warranties
Tie-in promotions
Cross-promotions
Point-of-purchase
displays and
demonstrations
Major Consumer-Promotion Tools
29. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 29 in Chapter 16
Public RelationsPublic Relations
Public relations activities promote or
protect the image of a firm or product
Public relations functions:
– Press relations
– Product publicity
– Corporate communications
– Lobbying
– Counseling
30. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 30 in Chapter 16
Public RelationsPublic Relations
Marketing Public Relations (MPR)
– Plays an important role in
New product launches
Repositioning of mature brand
Building interest in product category
Influencing specific target groups
Defending products with public problems
Building the corporate image
Three Major MPR Decisions
31. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 31 in Chapter 16
Public RelationsPublic Relations
Publications
Events
Sponsorships
News
Speeches
Public-service
activities
Identity media
Major Public Relations Tools
32. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 32 in Chapter 16
Direct MarketingDirect Marketing
Direct marketing uses consumer-direct
channels to reach and deliver offerings
to consumers without intermediaries.
Direct marketing is growing and offers
consumers key benefits.
Firms are recognizing the importance
of integrated direct marketing efforts.
33. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 33 in Chapter 16
Setting the PromotionSetting the Promotion
MixMix
Setting the PromotionSetting the Promotion
MixMix
Nature of Each Promotion Tool
Advertising
Reaches Many Buyers, ExpressiveImpersonal
Advertising
Reaches Many Buyers, ExpressiveImpersonal
Personal Selling
Personal Interaction, Builds Relationships Costly
Personal Selling
Personal Interaction, Builds Relationships Costly
Sales Promotion
Provides Strong Incentives to BuyShort-Lived
Sales Promotion
Provides Strong Incentives to BuyShort-Lived
Public Relations
Believable, Effective, EconomicalUnderused by Many Companies
Public Relations
Believable, Effective, EconomicalUnderused by Many Companies
Direct Marketing
Nonpublic, Immediate, Customized,Interactive
Direct Marketing
Nonpublic, Immediate, Customized,Interactive
34. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 34 in Chapter 16
Factors in Developing Promotion MixFactors in Developing Promotion Mix
StrategiesStrategies
Factors in Developing Promotion MixFactors in Developing Promotion Mix
StrategiesStrategies
• Push Strategy - “Pushing” the Product Through
Distribution Channels to Final Consumers.
• Pull Strategy - Producer Directs It’s Marketing
Activities Toward Final Consumers to Induce Them to Buy
the Product.
Type of
Product/
Market
Buyer/
Readiness
Stage
Product Life-
Cycle Stage
35. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 35 in Chapter 16
Changing Face of MarketingChanging Face of Marketing
CommunicationsCommunications
Changing Face of MarketingChanging Face of Marketing
CommunicationsCommunications
Marketers Have Shifted
Away From Mass
Marketing
Less Broadcasting
Marketers Have Shifted
Away From Mass
Marketing
Less Broadcasting
New Marketing Communications RealitiesNew Marketing Communications Realities
Improvements in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting
Improvements in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting
36. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 36 in Chapter 16
Integrated MarketingIntegrated Marketing
CommunicationsCommunications
Integrated MarketingIntegrated Marketing
CommunicationsCommunications
Company Carefully Integrates and Coordinates Its Many
Communication Channels to Deliver a Clear, Consistent, Compelling
Message.
AdvertisingAdvertising
Personal
Selling
Personal
Selling
Public
Relations
Public
Relations
Sales
Promotion
Sales
Promotion
Direct
Marketing
Direct
Marketing
PackagingPackaging
Event
Marketing
Event
Marketing
Message
37. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 37 in Chapter 16
Promotion/Communications MixPromotion/Communications Mix
Factors in setting the Marketing
Communications Mix
– Type of Product Market
Advertising’s role in business markets:
– Advertising can provide an introduction to the company and its
products
– If the product embodies new features, advertising can explain them
– Reminder advertising is more economical than sales calls
– Buyer-Readiness Stage
– Product Life-Cycle Stage
38. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 38 in Chapter 16
Direct MarketingDirect Marketing
Face-to-face selling
Direct mail
Catalog marketing
Telemarketing
Direct-response
TV marketing
Kiosk marketing
E-marketing
Major Direct Marketing Tools
39. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd
Edition Slide 39 in Chapter 16
Direct MarketingDirect Marketing
Steps in Developing a Direct-Mail
Campaign:
– Step 1: Set objectives
– Step 2: Identify target markets
– Step 3: Define the offer
– Step 4: Test the elements
– Step 5: Measure results
Notes de l'éditeur The Marketing Communications Mix This CTR relates to the material on pp. 422-423. Tools of The Marketing Communications Mix Advertising. Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertising often utilizes mass media and may be adapted to take advantages of a given mediums strengths to convey information. Sales Promotion. Sales promotions consist of short-term incentives to encourage purchase of sales of a product or service. Limited time offers or dated coupons are common sales promotions. Public Relations. Public relations is an on-going process of building good relations with the various publics of the company. Key elements in the process are obtaining favorable publicity, building and projecting a good "corporate image," and designing an information support and response team to respond proactively to unfavorable rumors, stories, or events. Personal Selling. Personal selling describes the use of oral presentations in a conversation with one or more prospective buyers for the purposes of making a sale. Personal selling combines product information and benefits with the interpersonal dynamics of the sales person. Good interpersonal relationship skills and effective oral communication skills are needed for personal selling. Direct Marketing. Directed communications with carefully targeted individual consumers to obtain an immediate response. Setting the Promotion Mix This CTR relates to the material on pp. 433-435. The Nature of Each Promotion Tool Advertising . Advertising’s public nature helps legitimize the product. It also allows marketers to repeat the message to a wide audience. Large-scale campaigns communicate something positive about the seller’s size, popularity, and success. Advertising is also very expressive and can make use of powerful symbols and sensory appeals. Its shortcoming include expense, one-way communication, being impersonal, and lack of control over situational reception. Personal Selling . Personal selling is the most effective promotion tool at certain stages in the buying process, especially in building preferences, convictions, and actions. The personal contact is two-way and allows adaptation to buyer reactions and the establishment of relationships. Personal selling is also the most expensive promotion tool and requires a long-term commitment to build an effective salesforce. Sales Promotion . Sales promotion includes coupons, contests, cents-off deals, premiums, rebates, and other techniques designed to elicit a quick response. Sales promotions usually influence the timing of a purchase rather than the decision to purchase. Public Relations . Public relations includes news stories, features, and reporting on company activities from objective and credible third-party sources. These events are perceived as more believable than company-controlled promotions. Difficulties include the lack of message content, format, and structure control over the public relations event. Further, public relations are generally under used by marketers both strategically and tactically. Direct Marketing. Direct marketing includes such things as direct mail, telemarketing, electronic marketing, online marketing, and others. Factors in Developing Promotion Mix Strategies This CTR relates to the material on pp. 435-437. Factors in Setting the Promotion Mix Push or Pull Strategy. The promotion mix is also affected by the company's decision on either a push or pull strategy. Push strategies rely on personal selling and sales promotions to encourage intermediaries to take the product and promote, thus "pushing" it through the channel. Pull strategies rely on advertising and consumer promotions to build up demand in the target market of ultimate consumer whose behavior effectively "pulls" the product through the channel. Type of Market. The type market, consumer or industrial, varies the importance of the promotion tools available to marketers. Advertising weighs heavily in consumer markets whereas personal selling plays the greatest role in industrial markets. Buyer Readiness State. The buyer will be more receptive to some promotion tools than others depending upon their particular buyer readiness state. Advertising and public relations help create awareness and increase knowledge. Liking and preference are more affected by personal selling and advertising together. Conviction and purchase come first from advertising and then personal selling to close depending upon the kind of product being considered. Product Life Cycle Stage. The stage in the product life cycle also describes different appropriate promotion mix variations. Introduction utilizes advertising and public relations to build awareness and personal selling to facilitate motivate channel members to carry it. In growth, the need for personal selling diminishes. In maturity, personal selling helps differentiate it again in distribution. In decline, sales promotion may be the most emphasized of the promotion mix tools.