DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS
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1 DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS A. The Role of Marketing Communications B. Developing Effective Communications C. Deciding on the Marketing Communications Mix D. Managing the Integrated Marketing Communications Process A. THE ROLE OF MARKETING COMMUNICATIONS informs, persuades, and reminds is the voice of the brand establishes dialogues builds relationships A1. MARKETING COMMUNICATIONS AND BRAND EQUITY Advertising (Promotion of ideas, goods or services) Sales promotion (To encourage trial or purchase) Events and experiences (Activities and programs to create interactions) Public relations and publicity (Programs to promote or protect the image or products) Direct marketing (Use of mail, telephone, fax, internet to communicate with customers and prospects) Personal selling (Face to face presentations, answering, procuring) A2. THE COMMUNICATIONS PROCESS MODELS A2a. MACROMODEL OF THE COMMUNICATIONS PROCESS Selective attention (Bombardments of ads to grab attentions through fear, music, bold headlines, promises - ads for TV, radio 30% and for magazines, newspapers 50%) Selective distortion (Receivers hear what fits into their beliefs, add things that are not said and amplify the messages) Selective retention (People keep only a small part of the message in long-term the initial attitude is positive or negative matters) A2b. MICROMODEL OF CONSUMER RESPONSES Awareness (Build awareness if most is unaware) Knowledge (Have brand awareness but not much knowledge) Liking (Know the brand but dislike) Preference (Like the product but not prefer due to possibly quality, value, performance and other features) Conviction (Prefer but not convinced) Purchase (Convinced but no purchase offer low price, premium, let them try outs) B. DEVELOPING EFFECTIVE COMMUNICATIONS Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Measure results Manage integrated marketing communications
2 B1. IDENTIFY THE TARGET AUDIENCE The process must start with a clear target audience in mind: 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 on what to say, how to say it, when to say it, where to say it, and to whom to say it. The first step is to measure the target audience's knowledge of the object, using the familiarity scale: Never Heard of Heard of Only Know a Little Bit Know a Fair Amount Know Very Well B2. DETERMINE THE COMMUNICATIONS OBJECTIVES Category need (A new category electric cars) Brand Awareness (Recognition is easier than recall. Multiple-choice tests are generally easier than fill-in-the-blanks tests) Brand Attitude Negatively oriented (Problem removal, problem avoidance, incomplete satisfaction, normal depletion) Positively oriented (Sensory satisfaction, intellectual stimulation, or social approval) Brand Purchase Intention (Promotional offers encourage consumers to make a mental commitment to buy a product) B3. DESIGN THE COMMUNICATIONS MESSAGE STRATEGY CREATIVE STRATEGY INFORMATIONAL APPEALS TRANSFORMANITIONAL APPEALS MESSAGE SOURCE 1. Product - Many products are restricted or forbidden in certain parts of the world. 2. Market Segment 3. Style 4. Local or Global B4. SELECT THE COMMUNICATIONS Selecting efficient channels to carry the message becomes more difficult as channels of communication become more fragmented and cluttered. Communications channels may be personal and nonpersonal. Within each are many subchannels. PERSONAL COMMUNICATIONS Personal communications channels involve two or more persons communicating directly faceto-face, person-to-audience, over the telephone, or through . Companies can take several steps to stimulate personal influence channels to work on their behalf: 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 influential s such as local disk jockeys, class presidents, and presidents of women's organizations
3 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. Use viral marketing NONPERSONAL COMMUNICATIONS Nonpersonal channels are communications directed to more than one person and include media, sales promotions, events, and publicity. Media consist of print media (newspapers and magazines); broadcast media (radio and television); network media (telephone, cable, satellite, wireless); electronic media (audiotape, videotape, videodisk, CD-ROM, Web page); and display media (billboards, signs, posters). Most nonpersonal messages come through paid media. Sales promotions consist of consumer promotions (such as samples, coupons, and premiums); trade promotion (such as advertising and display allowances); and business and sales-force promotion (contests for sales reps). Events and experiences include sports, arts, entertainment, and cause events as well as less formal activities that create novel brand interactions with consumers. Public relations include communications directed internally to employees of the company or externally to consumers, other firms, the government, and media INTEGRATION OF COMMUNICATIONS First, the influence of mass media is mediated by opinion leaders. Second, consumption styles are primarily influenced by a trickle-down or trickle-up effect from mass media. B5. ESTABLISH THE TOTAL MARKETING COMMUNICATIONS BUDGET How much to spend on promotion. There are low- and high-spending companies. AFFORDABLE METHOD PERCENTAGE-OF-SALES METHOD COMPETITIVE-PARITY METHOD OBJECTIVE-AND-TASK METHOD 1. Establish the market share goal 2. Determine the percentage of the market that should be reached by advertising. 3. Determine the percentage of aware prospects that should be persuaded to try the brand. 4. Determine the number of advertising impressions per 1 percent trial rate. 5. Determine the number of gross rating points that would have to be purchased. 6. Determine the necessary advertising budget on the basis of the average cost of buying a gross rating point. C. DECIDING ON THE MARKETING Companies must allocate the marketing communications budget over the six major modes of communication advertising, sales promotion, public relations and publicity, events and experiences, sales force, and direct marketing. Here is how one company touches several bases. C1. CHARACTERISTICS OF THE MARKETING ADVERTISING Advertising can be used to build up a long-term image for a product. 1. Pervasiveness 2. Amplified expressiveness 3. Impersonality SALES PROMOTION Companies use sales promotion tools coupons, contests, premiums, and the like to draw a stronger and quicker buyer response.
4 Sales promotion tools offer three distinctive benefits: 1. Communication 2. Incentive 3. Invitation PUBLIC RELATIONS AND PUBLICITY The appeal of public relations and publicity is based on three distinctive qualities: 1. High credibility 2. Ability to catch buyers off guard 3. Dramatization EVENTS AND EXPERIENCES 1. Relevant - A well-chosen event or experience can be seen as highly relevant as the consumer gets personally involved. 2. Involving - Given their live, real-time quality, consumers can find events and experiences more actively engaging. 3. Implicit - Events are more of an indirect "softsell." DIRECT MARKETING The many forms of direct marketing direct mail, telemarketing, Internet marketing share three distinctive characteristics. Direct marketing is: 1. Customized - The message can be prepared to appeal to the addressed individual. 2. Up-to-date - A message can be prepared very quickly. 3. Interactive - The message can be changed depending on the person's response. PERSONAL SELLING Personal selling is the most effective tool at later stages of the buying process, particularly in building up buyer preference, conviction, and action. Personal selling has three distinctive qualities: 1. Personal interaction - Personal selling involves an immediate and interactive relationship between two or more persons. Each party is able to observe the other's reactions. 2. Cultivation - Personal selling permits all kinds of relationships to spring up, ranging from a matter-of-fact selling relationship to a deep personal friendship. 3. Response - Personal selling makes the buyer feel under some obligation for having listened to the sales talk. C2. FACTORS IN SETTING THE MARKETING TYPE OF PRODUCT MARKET 1. Increased stock position - Sales reps can persuade dealers to take more stock and devote more shelf space to the company's brand. 2. Enthusiasm building - Sales reps can build dealer enthusiasm by dramatizing planned advertising and sales promotion backup. 3. Missionary selling- Sales reps can sign up more dealers. 4. Key account management - Sales reps can take responsibility for growing business with the most important accounts. BUYER-READINES STAGE PRODUCT LIFE CYCLE STAGE C3. MEASURING COMMUNICATION RESULTS Senior managers want to know the outcomes and revenues resulting from their communications investments. After implementing the communications plan, the communications director must measure its impact on the target audience. D. MANAGING THE INTEGRATED MARKETING COMMUNICATIONS PROCESS Such a plan evaluates the strategic roles of a variety of communications disciplines. D1. COORDINATING MEDIA Multiple media organized within a tightly defined time frame can in a more powerful
5 approach is the multiple-vehicle, multiple-stage campaign. crease message reach and impact. D2. IMPLEMENTING IMC Large companies often employ several communications specialists to work with their brand managers. It forces management to think about every way the customer comes in contact with the company.
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