Marketing Communication Strategy. W. Rofianto
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1 Marketing Communication Strategy W. Rofianto
2 Defining IMC IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences. The goal of IMC is to generate financial returns and build brand equity.
3 The Promotional Mix Advertising Advertising Direct Direct Marketing Marketing Interactive/ Interactive/ Internet Internet Marketing Marketing Sales Sales Promotion Promotion Events and experiences Publicity/Public Relations Relations Personal Selling
4 The Tools of Marketing Communications 1. Media Advertising TV Radio Magazines Newspapers 2. Direct Response and Interactive Advertising Direct mail Telephone solicitation Online advertising 3. Place Advertising Billboards and bulletins Posters Transit ads Cinema ads 4. Store Signage and Point-of- Purchase Advertising External store signs In-store shelf signs Shopping cart ads In-store radio and TV 5. Trade- and Consumer- Oriented Promotions Trade deals and buying allowances Display and advertising allowances Trade shows Cooperative advertising Samples Coupons Premiums Refunds/rebates Contests/sweepstakes Promotional games Bonus packs Price-off deals 6. Event Marketing and Sponsorships Sponsorship of sporting events Sponsorship of arts, fairs, and festivals Sponsorship of causes 7. Marketing-Oriented Public Relations and Publicity 8. Personal Selling Source: Shimp (2010), adapted from Figure 1.1 in Kevin Lane Keller, Mastering the Marketing Communications Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs, Journal of Marketing Management 17 (August, 2001),
5 Integrated MarCom Urgency The Integration of Marketing Communications Tradition of separation communication tools Influence of specialized outside suppliers Managerial parochialism Using multiple communication tools in conjunction with one another can produce greater results (synergistic effects) than tools used individually and in an uncoordinated fashion.
6 Basic IMC Issues Marketing Communicators Challange How to enhance brand equity How to affect customer behavior How to justify marcom investments How to demonstrate financial accountability
7 IMC Keys 1. Start with the customer or prospect. 2. Use any form of relevant contact or touch point. 3. Speak with a single voice. 4. Build relationships. 5. Affect behavior.
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9 Coordinated Marketing Mix Elements Build Image
10 A Firm-Based Perspective on Brand Equity The degree to which consumers favorably perceive the brand s features and benefits as compared to competitive brands and how strongly these views are held in memory Brand Equity Higher market share Increased brand loyalty Premium pricing Revenue premiums
11 Children s Taste Preferences (In percents) Source: Shimp (2010)
12 Enhancing Brand Ways of Enhancing Brand Equity Equity Speak-for-Itself Message-Driven Leveraging
13 Measuring Marcom Effectiveness, Why? Demands for greater accountability on the marketing function To become better at marcom activities What to Measure? Change in brand awareness Improvement in attitudes toward the brand Increased purchase intentions Larger sales volume
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15 Good Marcom Objectives Criteria Within six months from the beginning of the advertising campaign, research should show that 50 percent of all cat owners are using Whiskas for their pet
16 IMC: Facilitate successful new product introductions, Reduce the product failure rate (potentially 35-45%)
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18 Top-Down Budgeting Methods Competitive Parity Arbitrary Allocation Top Management Percentage of Sales Return on Investment Affordable Method
19 Bottom-Up Budgeting Total Budget Is Approved by Top Management Cost of Activities are Budgeted Activities to Achieve Objectives Are Planned Promotional Objectives Are Set
20 Are There Economies of Scale? Proposition I Larger firms can support their brands with lower relative advertising costs than smaller firms. No evidence to support this! Proposition II The leading brand in a product group enjoys lower advertising costs per sales dollar than do other brands. No evidence to support this! Proposition III There is a static relationship between advertising costs per dollar of sales and the size of the advertiser. No evidence to support this!
21 Branding and Packaging Work Closely Together Product Decisions BRANDING PACKAGING Brand name communicates attributes and meaning Advertising creates and maintains brand equity Packaging has become increasingly important It s often customers first exposure to product
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