Chapter 14. Integrated Marketing Communication Strategy (Promotion)

Transcription

1 Chapter 14 Integrated Marketing Communication Strategy (Promotion) 1

2 Marketing Communication Mix or Promotion Mix Product s Design Stores that Sell the Product Product s Price Product s Package 4

3 Discussion What is changing of the communication environment? 5

4 Market Fragmentation Led to Media Fragmentation The Changing Communications Environment Marketers Have Shifted Away From Mass Marketing Less Broadcasting Two Factors are Changing the Face of Today s Marketing Communications: Improvements in Information Technology Has Led to Segmented Marketing More Narrowcasting 6

5 The Need for Integrated Marketing Communications Conflicting messages from different sources or promotional approaches can confuse company or brand images The problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently The Internet must be integrated into the broader IMC mix Best bet is to wed traditional branding efforts with the interactivity and service capabilities of online communications 7

6 Discussion Question How does China Mobile or a company with which you are familiar practice IMC? 8

7 Integrated Marketing Communications With Integrated Marketing Communications (IMC), the Company Carefully Integrates and Coordinates Its Many Communications Channels to Deliver a Clear, Consistent, and Compelling Message About the Organization and Its Product or Service. 9

8 Integrated Marketing Communications Advertising Personal selling Sales promotion Public relations Direct marketing 10

9 A View of the Communications Process Marketers View Communications as the Management of the Customer Relationship Over Time Through the Following Stages: Preselling Selling Post- Consumption Consuming 11

10 Elements in the Communication Process 12

11 Key Factors in Good Communication Sellers Need to Know What Audiences They Wish to Reach and Response Desired. Sellers Must Develop Feedback Channels to Assess Audience s Response to Messages. Sellers Must be Good at Encoding Messages That Target Audience Can Decode. Sellers Must Send Messages Through Media that Reach Target Audiences 13

12 Steps in Developing Effective Communication Step 1. Identifying the Target Audience Step 2. Determining the Communication Objectives Buyer Readiness Stages Awareness Knowledge Liking Preference Conviction Purchase 14

13 Steps in Developing Effective Communication Step 3. Designing a Message Message Content Rational Appeals Emotional Appeals Moral Appeals Designing a Message Content The pictures and the slogan make this what type of appeal? Format This layout, almost like a yearbook or photo album, reinforces the sentimental aspect of this advertisement. Click or press spacebar to return. Message Structure Draw Conclusions Argument Type Argument Order Is this ad making an emotional, rational, or moral appeal, or is it combining them? How much do the personified cows contribute to this ad? Is the ad structured to let the audience make a decision? Is this an effective ad? Message Format Headline, Illustration, Copy, & Color Body Language The same company puts lifelike statues of cows, with this slogan, into mall food courts. What makes that practice effective? 15

14 Steps in Developing Effective Communication Step 4. Choosing Media Personal Communication Channels Nonpersonal Communication Channels Step 5. Selecting the Message Source Step 6. Collecting Feedback 16

15 Discussion Question Effective spokespeople? What makes an effective spokesperson? When should they NOT be used? 17

16 Setting the Total Promotion Budget One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on Promotion. Affordable Based on What the Company Can Afford Objective-and-Task Based on Determining Objectives & Tasks, Then Estimating Costs Percentage of Sales Based on a Certain Percentage of Current or Forecasted Sales Competitive-Parity Based on the Competitor s Promotion Budget 18

17 Discussion The advantage and disadvantage of the following promotion tools: Advertising Personal Selling Sales Promotion Public Relations Direct Marketing 20

18 Setting the Promotional Mix Promotion Tools Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Reaches large, geographically dispersed audiences, often with high frequency Low cost per exposure, though overall costs are high Consumers perceive advertised goods as more legitimate Dramatizes company/brand Builds brand image; may stimulate short-term sales Impersonal; one-way communication 21

19 Setting the Promotional Mix Promotion Tools Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Most effective tool for building buyers preferences, convictions, and actions Personal interaction allows for feedback and adjustments Relationship-oriented Buyers are more attentive Sales force represents a longterm commitment Most expensive of the promotional tools 22

20 Setting the Promotional Mix Promotion Tools Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Makes use of a variety of formats: premiums, coupons, contests, etc. Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales Stimulates quick response Short-lived Not effective at building longterm brand preferences 23

21 Setting the Promotional Mix Promotion Tools Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Highly credible Many forms: news stories, news features, events and sponsorships, etc. Reaches many prospects missed via other forms of promotion Dramatizes company or benefits Often the most underused element in the promotional mix 24

22 Setting the Promotional Mix Promotion Tools Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Many forms: Telephone marketing, direct mail, online marketing, etc. Four distinctive characteristics: Nonpublic Immediate Customized Interactive Well-suited to highly targeted marketing efforts 25

23 Promotion Mix Strategies Strategy that Calls for Spending A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand. Strategy Selected Depends on: Type of Product- Market & Product Life-Cycle Stage Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels. 26

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25 Socially Responsible Marketing Communication Advertising and Sales Promotion Companies must avoid false and deceptive advertising. Sellers must avoid bait-and-switch advertising. Trade promotion activities are also closely regulated. Personal Selling Salespeople must follow the rules of fair competition. Three-day cooling-off rule Salespeople must not disparage competitors. 31

26 Review of Concept Connections Name and define the tools of the marketing communication mix. Discuss the process and advantages of integrated marketing communication. Outline the steps in developing effective marketing communications. Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. 32