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Ch 17 designing and integrating marketing communications14e

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EMB 520: Ch 17 designing and integrating marketing communications14e

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Ch 17 designing and integrating marketing communications14e

  1. 1. 9/17/2014 1 17Designing and Integrating Marketing Communications 1 Marketing Communications Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands they sell. Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-2Marketing Communications Mix or Promotion Mix Advertising Sales promotion Public relations and publicity Personal selling Direct marketing Interactive marketing Word-of-mouth marketing Events and experiences The specific blend of eight major modes of communication that the company uses to persuasively communicate customer value and build customer relationships Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-3Modes of Marketing Communications Mix Advertisingis any paid form of nonpersonalpresentation and promotion of ideas, goods, or services by an identified sponsor. Sales promotionis the short-term incentives to encourage the purchase or sale of a product or service. Public relations involves building good relations with the company’s various publics by obtainingfavorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Personal selling is the personal (face-to-face) presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-4 Modes of Marketing Communications Mix Direct marketing involves making direct connectionswith carefully targeted individual consumers to obtain an immediate response and cultivatelasting relationships. Interactive marketing is online activities and programsdesigned to engage customers directly with company or its products. WoMmarketing is an unpaid formof oral or written promotion in which satisfied customers tell others how much they like an offering. Events and experiencesare company-sponsoredactivities and programs designed to create brand- related interactions with consumers. Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-5Table 17.1 Communication Platforms Advertising Print and broadcast ads Packaging inserts Motion pictures Brochures and booklets Posters Billboards POP displays Logos Videotapes Sales Promotion Contests, games, sweepstakes Premiums Sampling Trade shows, exhibits Coupons Rebates Entertainment Continuity programs Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-6
  2. 2. 9/17/2014 2Table 17.1 Communication Platforms Public Relations Press kits Speeches Seminars Annual reports Charitable donations Publications Community relations Lobbying Identity media Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-7 Personal Selling Sales presentations Sales meetings Incentive programs Samples Fairs and trade showsTable 17.1 Communication Platforms Interactive Marketing Banner Advertising, Interstitials, Email Advertising, Company Websites, Text Messaging Direct Marketing Catalogs Mailings Telemarketing Electronic shopping TV shopping Fax mail E-mail Voice mail Websites Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-8Table 17.1 Communication Platforms Word-of-Mouth Person-to-person Chat rooms Blogs Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-9 Events/ Experiences Sports Entertainment Festivals Art Causes Factory tours Company museums Street activitiesChanging Marketing Communications EnvironmentCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-10 Consumers are better informed More communication Less mass marketing Changing communications technologyThe New Marketing Communications ModelIntegrated Marketing Communications IMCis the practice of blendingdifferent elements of the communications mix in mutually reinforcing waysto deliver a clear, consistent, and compelling message about the organization and its brands •Helps avoid contradiction between the positioning strategy and MC strategies •Helps provide a unified and cohesive message •Ensures the integration of works of expert people of different fields The Need for IMCTraditional compensationPerformancebased Traditional compensationTraditional compensation Performancebased compensation Performance-based Media mediaSpecialized mediaSpecialized focus Data Data-marketing Low accountability Greater accountability Limited Internet availability Widespread Internet availability availabilityMedia advertisingMedia advertisingMultiple forms of communicationMultiple communicationMass mediaMass media Specialized media mediaManufacturer dominanceManufacturer dominanceRetailer dominanceRetailer dominanceGeneral focusGeneral focusDataData-based marketingLow agency accountabilityLow accountabilityGreater agency accountabilityGreater accountabilityReasons for the Growing Importance of IMC From Toward
  3. 3. 9/17/2014 3 Some Basic Advertising Terms Buzz marketing--cultivatingopinion leaders and gettingthem to spread information about an offering to others in their communities Viral marketing--the internet version of WoMmarketing where e-mail messages or other marketing events that are so infectious that customers pass them along to friends Virtual advertising--the insertionof electronic images such as signs, logos, and packages into live or taped programs Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-13Some Basic Advertising Terms Experiential marketing--promoting an offering by not only communicating its feature and benefit but also connectingit with unique experiences of customer Permission marketing--encouragingconsumers to participate in a long-term interactive marketing campaign and get rewarded for paying attention to messages which are anticipated, personal and relevant (or taking permission before you send message) Interruption marketing--sendingan unintended message to people through marketing promotions continually that embarrassthem Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-14Some Basic Advertising Terms Database marketing--a form of direct marketingthat uses databases of customers to generate personalized communications in order to promote a product Relationship marketing--the process of creating, maintaining and enhancing strong, value-laden, and long-term relationships with customers and others by providing superior customer value Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-15 Some Basic Advertising Terms Advocacy advertising–adv. paid for by an identified sponsorthat communicates a company's stand on a particular issue POP advertising—adv. or display materials located in a retail environment to build traffic that advertise an offering, and encourage impulse buying Flexform advertising--anodd-shaped adv. that doesn’t conform to normal shapes and stands out from traditional square print ad spaces Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-16 Some Basic Advertising Terms Cross-marketing--a strategy in which two independent organizations share facilities and/or resources to market their goods to similar customers Value marketing--a principle of enlightened marketing that holds that a company should put most of its resources into value-building marketing investments Green/ecological/environmental marketing-- marketing of products that are presumed to be environmentally safe Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-17 Source--the sender of a message Encoding--the source deciding what to say and translating it into words or symbols that convey meaning Message channel--the carrier of the message Noise--any distraction that reduces the effectiveness of the communication process Decoding--the receiver translating the message Receiver--the potential customer Elements in the Communications Process
  4. 4. 9/17/2014 4Figure 17.1 Elements in the Communications Process Sender’s field of experience Receiver’s field of experienceFigure 17.2 Micromodels of Communications 17-21 Steps in Developing Effective CommunicationsIdentify target audienceDetermine objectivesDesign communicationsSelect channels Establish budget Decide on media mixMeasure results/manage IMC Step-1: Identify Target Audience Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-22 Identifying the Target Audience which will determine: What will be saidbe said How it will be saidbe saidWhen it will When be saidbe saidWhere it Where will be saidwill saidWho will Who say itsay itStep-1: Identify Target Audience Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-23 Never Heard of Heard of Only Know a Little Bit Know a Fair Amount Know Very Well Very Unfavorable Somewhat Unfavorable Indifferent Somewhat Favorable Very favorable Favorability Scale Familiarity Scale Make image analysis using familiarity and favorability scales Step-1: Identify Target Audience Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-24 Figure: Familiarity-Favorability Analysis
  5. 5. 9/17/2014 5Step-2: Communications ObjectivesCopyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-25 Marketers can set communication objectives at any level of the hierarchy-of-effects model They seek a purchase response resulting from a consumer decision-making process Step-2: Communications Objectives Establish a product/service category Build brand awareness Focus on brand attitude (perceived ability) Focus on brand purchase intention Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-26 Rossiterand Larryidentified four key communications objectives Step-3: Designing the Communications Message strategy--what to say Creative strategy--how to say it Message source--who should say it Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-27 Design the message so that it can get attention, hold interest, arouse desire, and obtain action Message Strategy: What to SayCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-28 Message strategy deals with appeals andthemes/ideas Management ties them in to the brand positioning to establish PoPsand PoDswhich may relate to: –Product /service performance (e.g. quality, value, etc.) –Extrinsic considerations (e.g. the brand being popular, contemporary, traditional) Creative Strategy: How to Say It How a message is being expressed The way marketers translate their messages into a specific communication Two broad types of appeals: Informational appeal elaborates on product/service attributes/benefits –Focuses on rational and logic rule Transformational appeal elaborates on a nonproduct-related benefit or image –Focuses on consumer emotionsCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 17-29Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-30 Some specific appeals: Rational appeals Emotional appeals (negative and positive) Moral appeals Provocative sex appeals Motivational appeals (cute babies, popular media environment, frisky puppies) Creative Strategy: How to Say It
  6. 6. 9/17/2014 6Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-31 Informational appeals also deal with message structure Three key message structure issues: Whether to draw a conclusion or leave it to the audience? Will be message be one-sided or two-sided? How to present the strongest arguments: first or last? Creative Strategy: How to Say ItCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-32 Creative strategy also deals with message format In print ad, decide on the headline, copy, image, illustration, and color In radio ad, choose right words, sounds, and voices For TV ad or in person, consider all elements plus body language If the message is given in the package, then watch texture, scent, color, size, and shape Creative Strategy: How to Say ItMessage Source: Who Should Say ItCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-33 How the audience views the communicator has an impact Attractive or popular sources achieve higher attention and recall Celebrities are effective when they are credible The three most identified sources of credibility –Expertise –Trustworthiness –Likability Step-4: Select Communication Channels Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-34 Personal channels--two or more people communicate directly with each other Face-to-face Phone Mail E-mail and Internet Chat Non-personal channels--media that carry messages without personal contact or feedback Major media Atmospheres EventsControl/Types of Personal ChannelsCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-35 Advocate channels--company salespeople who contact buyers in the target market Expert channels--independent experts who make statements to target buyers Social channels--neighbors, friends, family members and associates who talk to target buyers (WoM) Step-5: Establish the Budget Affordable budget methodsets the budget at an affordable level Ignores the effects of promotion on sales Percentage of sales methodsets the budget at a certain % of current or forecasted sales or unit sales price Easy to use and helps management think about the relationship between promotion, selling price, and profit per unit Wrongly views sales as the cause rather than the result of promotion
  7. 7. 9/17/2014 7Step-5: Establish the Budget Competitive-parity method sets the budget to match competitor outlays Represents industry standards Avoids promotion wars Objective-and-task methodsets the budget based on what the firm wants to accomplish with promotion and includes: Defining promotion objectives Determining tasks to achieve the objectives Estimating costs Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall17-38 Example: Objective-and-Task Method Establish the market share goal. Determine the percentage that should be reached. Determine the percentage of aware prospects that should be persuaded to try the brand. Determine the number of advertising impressions per 1% trial rate. Determine the number of gross rating points that would have to be purchased. Determine the necessary advertising budget on the basis of the average cost of buying a GRP. Dr. Pepper Snapple Group wants to introduce a new natural energy drink, called Sunburst, for the casual athlete. Its objectives might be as follows: Step-6: Deciding on the Marketing Communications MixCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-39 MC budget is allocated over the eight major modes of communication Try to gain efficiency by substituting one communications tool for others The substitutability among communications tools explains why marketing functions need to be coordinated Characteristics of the Mix Advertisingreaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times Pervasiveness Amplified expressiveness Impersonality Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall17-40 Sales promotion attracts consumer attention and offers strong incentives to purchase, and can be used to dramatize product offers and to boost sagging sales Communication Incentive Invitation Public relations is a very believable form of promotion High credibility Ability to catch buyers off guard Dramatization Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall17-41 Characteristics of the Mix Personal selling is the most effective method at certain stages of the buying process, particularly in building buyers’ preferences, convictions, actions, and developing customer relationships Personal interaction Cultivation Response Direct and interactive marketing is a non-public, immediate, customized, and interactive promotional tool Customized Up-to-date Interactive Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall17-42Characteristics of the Mix WoMMarketing Credible Personal Timely Events and Experiences Relevant Involving Implicit
  8. 8. 9/17/2014 8 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall17-43 Factors in Setting Communications Mix Types of product market (consumer vs. business) Buyer readiness stage (awareness, comprehension, conviction, order and reorder) Product life cycle stage (introduction, growth, maturity, and decline) Figure 17.4 Cost-Effectiveness of Different Communication Tools Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall17-44Step-7: Measuring Communication ResultsCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-45 Know the outcomes and revenues resulting from communications investments Can target market recognize or recall the message? How many times did they see it? What can they recall? How did they feel about the message? What were their previous and current attitudes toward the product and company? How many people bought the product, liked it, and talked to others about it?

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