Marketing Communication

1. 1 Chapter One
Integrated Marketing Communications
Prof. (Dr.) Kao Kveng Hong, Ph.D., D.Litt.

2. • What ads do you recall about
surfing and surf boards?
• How do the ads depict surfing?
• How would you evaluate Ron
Jon’s web site?
• What do you think of their logo?
Ron Jon Surf Shop
Http://www.ronjons.com
1
Surfing !

3. Chapter Overview
• Highly competitive global marketplace.
• Wide variety of media available for
communications.
• Clear communications needed.
• Emerging trends.
• Accountability.
• Change in roles of account executives,
creatives and brand managers.
• Development of alternative media.
Integrated
Marketing Communications
1

4. F I G U R E 1 .2
Communication Process

5. Shoe Advertisements
• Which advertisement attracts your attention the most?
• Which advertisement is the least appealing?
• How important is the brand name in each ad?
• What is the message of each individual advertisement?
• What makes each advertisement effective?
• What are the pros and cons of each advertisement?
Click image for larger view
E X H I B I T

6. Comparing the Advertisement to the Web Site
• Reebok (http://www.reebok.com)
• New Balance (http://www.newbalance.com)
• Nike (http://www.nike.com)
• Adidas (http://www.adidas.com)

7. F I G U R E 1 . 2
Possible Noise in Watching
a TV Advertisement

8. Advertising Clutter
• How many ads were you exposed to during
the last 24 hours from the following media?
– Television
– Radio
– Magazines
– Newspapers
– Billboards
– Internet Web sites
• How many ads can you recall from each of
the above media?

9. Integrated Marketing Communications
is the coordination and integration of all
marketing communication tools,
avenues and sources within a company
into a seamless program which
maximizes the impact on consumers
and other end-users at a minimal cost.
The IMC includes all business-to-
business, channel, customer, external
communications and internal
communications.

10. Phillip Franznick,
President/Partner of
FD & B Advertising Agency
talks about the change in
advertising agencies to
integrated marketing
communication agencies.
Click image to play video.

11. F I G U R E 1 . 4
Traditional Marketing Mix
Product
Advertising Sales Promotions Personal Selling
Price Promotion Distribution
Database
Marketing
Direct
Marketing
Sponsorship
Marketing
Internet
Marketing
Guerilla
Marketing
Alternative
Marketing

12. The Marketing Plan
• Situation analysis.
• Marketing objectives.
• Marketing budget.
• Marketing strategy.
• Marketing tactics.
• Evaluation
F I G U R E 1 . 5

13. F I G U R E 1 . 6
Integrated Marketing Communication Plan

14. Four Stages in
Cultivating an IMC System

[American Productivity & Quality Center]
Stage 1: Identify, coordinate and manage all
forms of marketing communications.
Stage 2: Communications are examined from
perspective of customers.
Stage 3: Apply information technologies to
the IMC program.
Stage 4: Customer data information and
insights used in corporate strategic planning.




15. • Information technology
• Changes in channel power
• Increase in competition (global competitors)
• Brand parity
• Integration of information
• Decline in effectiveness of television
advertising.
F I G U R E 1 . 8
Trends Impacting Integrated Advertising and Marketing
Communications

16. F I G U R E 1 . 9
U.S. Online Retail Sales
Apparel
7%
Appliances
3%
Auto & parts
8%
Consumer electronics Computer
hardw are/softw are
8%
5%
Other
19%
Food/beverages
3%
Home furnishings
5%
Music/videos
4%
Toys/video games
3%
Travel
35%
Source:Adapted from “U.S. Online Retail Sales,” Digital Marketing & Media Fact Pack,
AdvertisingAge, Crain Communications, Inc. (2007), p. 34.

17. F I G U R E 1 . 10
Market Share – Top Brands in Running Shoe Industry
Adidas, 13.2%
Asics, 13.3%
Avia, 1.7%
Brooks, 1.7%
New Balance,
17.8%
Source:Adapted from Matt Powell, “A Steady Stride,” SCB, Vol. 39, No. 11 (November 2006), p. 15.
Nike, 46.2%
Saucony, 1.7%
Reebok, 2.3%
Other, 2.1%

18. F I G U R E 1 . 11
Why Viewers Do Not Watch Ads
I'm bored
Program is boring
Turn to another program
Ads are on
Ad boring
Ad annoying
Seen ad a lot
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

19. Global Integrated
Marketing Communications
• Goal – to coordinate marketing efforts
• Greater challenge due to national and cultural
differences
• Standardization vs Adaptation.
• “Think globally, but act locally.”

20. Integrated Marketing
Communication

21. IMC is a way of looking at
the whole marketing Process
From the viewpoint of the receiver

22. Three Aspects
How Does Communication Work ?
Steps In Developing IMC
Responsibility Of Planning IMC

23. Marketing Communication Mix- 5 Models
Advertising
Sales Promotion
Public Relation
Personal Selling
Direct Marketing

24. Advertising
•Print & broadcast Ads
•Packaging-outer
•Packaging-inserts
•Motion Pictures
•Brochure &Booklets
•Posters & Leaflets
•Directories
•Bill Boards
•Display Signs
•POP
•Audio Visual
•Symbols & Logos

25. Paramjit Sharma
Sales Promotion
•Contests ,Games ,lotteries
•Premiums & gifts
•Samples
•Fairs & Trade Shows
•Exhibitions
•Demonstrations
•Coupons
•Rebates
•Low Interest Financing
•Trade in Allowances
•Tie-ins

26. IMC IMC IMC IMC
Public Relations
•Press kits
•Speeches
•Seminars
•Annual Reports
•Donations
•Sponsorships
•Publications
•Community
Relations
•Lobbying
•Identity Media
•Company
Magazine
•Events

27. IMC IMC IMC IMC
Personal Selling
Sales Presentation
Sales meetings
Incentive Programmes
Samples
Fairs & Trade Shows

28. Direct Marketing
Catalogs
Mailings
Telemarketing
Electronic
Shopping
TV
Shopping
Fax Mail
E-mail
Voice Mail

29. Communication Process
How Can we reach our Customers ?
How Can Our Customers Reach us?

30. Communication Process
SENDER Encoding
Media
Decoding RECEIVER
NOISE
Feedback Response
Message

31. Message Not Reaching Target Audience
Selective
Attention
Selective
Distortion
Selective
Retention

32. Developing Effective Communication
Identify Target Audience
Developing Objectives
Design Message
Select Channels
Establish Budget
Decide On Media Mix
Measure Results
Manage IMC

33. Identify Target Audience
Potential Buyers
Current Users
Deciders or Influencers
Individuals
Groups
Particular or General Public

34. Paramjit Sharma
Identify Target Audience
1 familiarity Scale
Image Analysis
2 Favorability Scale
Never Heard Of Know a Know a fair Know Very
Heard Of Only Little Bit Amount well
Very Somewhat Indifferent Somewhat Very
Favorable Unfavorable favorable Favorable

35. Image Audience- FF Analysis
•A•B •A
•D•C
Favorable
Attitude
Unfavorable Attitude
High
Familiarity
low
Familiarity

36. Paramjit Sharma
Determining Communication Objectives
Cognitive
Stage
Affective
Stage
Behavior
Stage
Attention
Interest
Desire
Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Interest
Evaluation
Trial
Adoption
Exposure
Reception
Cognitive Response
Attitude
Intention
Behavior
AIDA
Model
Communication
ModelStages
Awareness
Innovation
Adoption
Model
Hierarchy of
Effect Model
Models

37. Design The Message
Message
Structure
Message
Content
Rational Appeal
Emotional Appeal
Moral Appeal
Message
Format
Message
Source

38. IMC IMC IMC IMC
Selecting Communication Channels
Personal Communication Channels
*Advocate, Experts & Social Channel
Non Personal Communication
Channels
*Media, Atmosphere, Events, Cliques

39. Marketing Communication Budget
4 Methods
Affordable Method
Percentage Of Sales Method
Competitive Parity Method
Objective & Task Method

40. Marketing Communication Budget
Objective & Task Method
Establish Market share Goal
Percentage which can be reached by
advertising
Percentage of aware Prospects to be
Persuaded by advertisement
Trial Rate
Gross Rating Points
Determine advertisement Budget

41. Deciding The Marketing Communication Mix
PROMOTION TOOLS
•Advertising
•Sales Promotion
•PR & Publicity
•Personal Selling
•Direct Marketing

42. Measure The Communication Results

43. Marketing Communication Budget
4 Methods
Affordable Method
Percentage Of Sales Method
Competitive Parity Method
Objective & Task Method