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Integrated marketing communication

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Integrated marketing communication

  1. 1. Managing Integrated Marketing Communication A Lecture by Perkha Khan
  2. 2. Promotion Communication link between buyers and sellers. Function of informing, convincing, and influencing a consumer’s purchase decision.
  3. 3. Marketing Communication Message that deal with buyer- seller relationship.
  4. 4. Integrated Marketing Communication (IMC) Coordination of all promotional activities – media advertising, direct mail, personal selling, sales promotion, public relations, and sponsorships – to produce a unified, customer- focused promotional message.
  5. 5. Integrated Marketing Communication is a way of looking at the whole marketing process from the viewpoint of the receiver Philip Kotler
  6. 6. The Communication Process
  7. 7. Communication Process Companies should not ask only  “How can we reach our customers?” but also  “How can our customer reach us?” To communicate effectively, marketers need to understand the fundamental elements of effective communication.
  8. 8. Promotion Mix Advertising Sales Promotion Public Relations Personal Selling Direct Marketing Common Communication Platforms
  9. 9. • Print & broadcast ads • Packaging – outer • Packaging inserts • Motion Pictures • Brochures & booklets • Posters & leaflets • Directories • Reprints of ads • Billboards • Display signs • Point-of-purchase display • Audiovisual material • Symbols and logos • Videotapes Advertising
  10. 10. • Contests, games, sweepstakes, lotteries • Premium and gifts • Sampling • Fairs and trade shows • Exhibits • Demonstration • Coupons • Rebates • Low-interest financing • Entertainment • Trade-in allowance • Continuity programs Sales Promotion
  11. 11. • Press kits • Speeches • Seminars • Annual Reports • Charitable donations • Sponsorships • Publications • Community Relations • Lobbying • Identity Media • Company Magazine • Events Public Relations
  12. 12. • Sales Presentations • Sales meetings • Incentive Program • Samples • Fair &Trade shows Personal Selling
  13. 13. • Catalogs • Mailing • Telemarketing • Electronic Shopping • TV Shopping • Fax mail • E-mail • Voice mail Direct Marketing
  14. 14. Elements in the Communication Process SENDER Encoding Decoding RECEIVER ResponseFeedback Media Message Noise
  15. 15. The sender’s task is to get his or her message through to the receiver. The target audience may not receive the intended message for any of the three reasons
  16. 16. 1. Selective Attention people are bombarded by; 1600 commercial messages a day, of which 80 are consciously noticed, & about 12 provokes some reaction. Selective attention explains why ads with bold headlines promising something, such as “How to make a Million”, have a high likelihood of grabbing attention.
  17. 17. 2. Selective Distortion Receivers will hear what fits into their beliefs system. As a result, receiver often add things to the message that are not there and do not notice other things that are there in actual. The communicators’ task is to strive for simplicity, clarity, interest, and repetition to get the main points across.
  18. 18. 3. Selective Retention People will retain in long-term memory only a small fraction of the messages that reach them. If the receiver’s initial attitude toward the object is positive and he or she rehearses support arguments, the message is likely to be accepted and have high recall. If the initial attitude is negative and the person rehearses counterarguments, the message is likely to be rejected but to stay in long-term memory.
  19. 19. Developing Effective Communication
  20. 20. Identify the target audience Determine the communication objectives Design the message Select the communication channels Establish the total communication budget Decide on the communication mix Measure the communication results Manage the integrated marketing communication process Must do’s for the marketer communicator
  21. 21. A. Identifying theTarget Audience
  22. 22. 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 whom to say it.
  23. 23. Image Analysis A major part of audience analysis is assessing the current image of the company, its products, & its competitors. Image – is the set of believes, ideas, and impressions a person holds regarding an object.
  24. 24. The first step is to measure the target audience’s knowledge of the object, using the familiarity scale: Know Very Well Know a Fair Amount Know a Little Bit Heard of Only Never Heard of
  25. 25. Respondents who are familiar with the product can be asked how they feel towards it, using the favorability scale: Very Favorable Somewhat Favorable Indifferent Somewhat Unfavorable Very Unfavorable
  26. 26. B A DC Favorable Attitude Unfavorable Attitude High Familiarity Low Familiarity
  27. 27. Hush Puppies brand of casual shoes lost its fashionable image.Then a fashion designer used Hush Puppies dyed in bright colors.The Hush Puppies image went from stodgy to avant-garde. And once the “new” Hush Puppies were in demand, sales went from under 30,000 pairs in 1994 to 1.7 million pairs in 1996. Facts corner….
  28. 28. B. Determining the Communication Objectives
  29. 29. • The communicator’s task is to build awareness, perhaps just name recognition, with simple messages repeating the product name. 1. Awareness • Goes beyond the awareness to leaning about the product features. 2. Knowledge • If target members know the product, how to they feel about it? If the audience looks unfavorably, the communicator has to find out why. If the unfavorable view is based on real problems, a communication campaign alone cannot do the job. 3. Liking
  30. 30. • The communicator must try to build consumer preference by promoting quality, value, performance, and other features. The communicator can check the campaign’s success by measuring audience preference after the campaign 4. Preference • The communicator’s job is to build confidence among the interested target market 5. Conviction • Some members of the target audience might have conviction but not quite get around to making the purchase.The communicator must lead these consumers to take the final step, perhaps by offering the product at a low price, offering a premium, or letting consumers try it out. 6. Purchase
  31. 31. C. Designing the Message
  32. 32. 1. Message Content In determining message content, management searches for an appeal, theme, idea, or unique selling proposition. there are 3 types of appeals: rational, emotional, and moral.
  33. 33. • They claim product will produce certain benefit – Nokia batteries, BMW strong body Rational Appeal - engages self- interest • Attempt to stir up negative or positive emotions that will motivate purchase – Dalda cooking oil, donate an eye Emotional Appeals • They are directed to the audience’s sense of what is right and proper – AIDS, Cancer Moral Appeals
  34. 34. 2. Message Structure Message Structure is made in a way, that hit the right target audience – U-fone for everybody, Mustang for young people, Indigo for Business Personnel
  35. 35. 3. Message Format The communicator must develop a strong message format. In print ad, the communicator has to decide on headline, copy, graphic, color. In radio ad, communicator has to choose words, voice qualities and vocalizations.
  36. 36. 4. Message Source Message delivered by attractive or popular sources achieved higher attention and recall. Message delivered by highly credible sources are more persuasive. Pharmaceutical companies want doctors to testify about product benefits because doctors have high credibility.
  37. 37. What factors underline source credibility? The 3 most often identified factors are;  Expertise – is the specialized knowledge the communicator possesses to back the claim – doctors, engineers, experts of field  Trustworthy – is related to how objectives and honest the source is perceived to be – loyal customers  Likability – describes the source’s attractiveness – celebrity Shahrukh Khan & Reema for Pepsi, Shan for Indigo
  38. 38. D. Selecting Communication Channels
  39. 39. 1. Personal Communication Channel Personal communication channel involve 2 or more persons communicating directly with each other face-to-face, person to audience, over the telephone, or through e-mail. Word-of-Mouth is the most powerful tool in this type of communication
  40. 40. Personal influence carries especially great weight in two situations. One is with products that are expensive, risky, or purchased infrequently. The other situation is where the product suggests something about the user’s status or taste.
  41. 41. 2. Non-Personal Communication Channels Non-personal channels include  Media  Atmosphere  Events
  42. 42. Media – consists of print media (newspaper, magazines, direct mail), broadcast media (radio, television), electronic media (audiotape, videotape, videodisk, CDs, DVDs,WebPages), and display media (billboards, signs, posters) Atmosphere – are ‘packaged environments’ – a five star hotel will use elegant chandeliers, marble columns & other tangible signs of luxury. Events – are occurrences deigned to communicate particularly messages to target audiences, arrange news conferences, grand openings, and sports sponsorships to achieve specific communication effects with a target audience
  43. 43. E. Establishing theTotal Marketing Communication Budget
  44. 44. 1. Affordable Method One executive said: “Why, it’s simple. First, I go upstairs to the controller and ask how much they can afford to give us this year. He says a million and a half. Later, the boss comes to me and asks how much we should spend and I say, ‘ Oh, about a million and a half.’” The affordable method of setting budgets completely ignores the role of promotion as an investment and the immediate impact of promotion on sales volume. It lead to the uncertain annual budget, which makes long-range planning difficult.
  45. 45. 2. Percentage-of-Sales Method Many companies set promotion expenditure at a specified percentage of sales or of the sales price. A railroad company executive said: “We set our appropriation for each year on December 1 of the preceding year. On that date we add our passenger revenue for the next month and than take 2 percent of the total for our advertising appropriation for the new year.
  46. 46. 3. Competitive-Parity Method Some companies set their promotion budget to achieve share-of-voice parity with competitors. Two arguments are made in support of the competitive-parity method. One is that competitors’ expenditures represents the collective wisdom of the industry.The other is that maintaining competitive parity prevents promotion wars.
  47. 47. 4. Objective-and-Task Method The objective-and-task method calls upon marketers to develop promotion budgets by defining specific objectives, determining the task that must be performed to achieve these objectives, and estimating the costs of performing these tasks.The sum of these costs is the proposed promotion budget.
  48. 48. Deciding on the Marketing Communication
  49. 49. A. The PromotionalTools
  50. 50. 1. Advertising  Advertising can be used to build a long-term image for a product or trigger quick sales.  Advertising can efficiently reach geographically dispersed buyers.  Certain form of advertising can require a large budget, some can be done on a small budget.  Advertising might have an effect on sales simply through its presence.
  51. 51. Advertorial – are ads that contain editorial content and may be hard to distinguish from a newspaper’s and magazine’s content. Infomercials – areTV commercial that appear to be 30 minute television shows demonstrating or discussing a product.Viewers can phone and order the product and these infomercial products directly measurable results. Banners – are small signs onWeb pages advertising an offer or company that can be reached by clicking on the banner.
  52. 52. 2. Sales Promotion Sales-promotion tools – coupons, contests, premiums and the like – are highly diverse. Companies use sales- promotion tools to draw a stronger and quicker buyer response offers and boost sagging sales They offer 3 distinctive benefits: Communication, Incentive, Invitation
  53. 53. 3. Public Relation and Publicity The appeal of public relation and publicity is based on three distinctive qualities:  High credibility,  Ability to catch buyers off guard &  Dramatization
  54. 54. High credibility – news stories and features are more authentic and credible to readers than ads. Ability to catch buyers off guard – public relation can reach prospects who prefer to avoid salespeople and advertisements. Dramatization – public relation has the potential for dramatizing a company or product.
  55. 55. 4. 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 3 distinctive qualities.  Personal confrontation,  Cultivation,  Response
  56. 56. Personal confrontation – personal selling involve an immediate and interactive relationship between 2 or more persons. Cultivation – personal selling permits all kinds of relationships to spring up, ranging from a matter-of-fact selling relationship to a deep personal friendship. Sales reps will normally have customers’ best interests at heart. Response – personal selling makes the buyer feel under some obligation for having listened to the sales talk.
  57. 57. 5. Direct Marketing There are many forms of direct marketing – direct mail, telemarketing, Internet marketing – they all share 4 distinctive characteristics.  Nonpublic,  Customized,  Up-to-date,  Interactive
  58. 58. Nonpublic – the message is normally addressed to a specific person. Customized – the message can be prepared very to appeal to the addressed individual Up-to-date – a message can be prepared very quickly Interactive – the message can be changed depending on the person’s response
  59. 59. B. Factors on setting the Marketing Communication Mix
  60. 60. Types of Product Market Promotional allocation vary between consumer and business markets Consumer marketers spend on sales promotion, advertising, personal selling and public relations, in that order. Business marketers spend on personal selling, sales promotion, advertising, and public relations, in that order.
  61. 61. PushVs Pull Strategy Push Strategy – It involves manufacturer using sales force sand trade promotion to induce intermediaries to carry, promote, and sell the product to end users. Push Strategy is especially appropriate where there is low brand loyalty in a category, brand choice is made in the store, the product is an impulse item, and product benefits are well understood.
  62. 62. Pull Strategy – it involves the manufacturer using advertising and consumer promotion to induce consumers to ask intermediaries for the product, thus inducing the intermediaries to order it. Pull strategy is especially appropriate when there is high brand loyalty and high involvement in the category, people perceive differences between brands, and people choose the brand before they go to the store.
  63. 63. Product-Life-Cycle Stage Promotional tools also vary in cost effectiveness at different stages of the product life cycle.  Introduction Stage  Growth Stage  Maturity Stage  Decline Stage
  64. 64.  Introduction Stage – advertising and publicity have the highest cost effectiveness, followed by personal selling to gain distribution coverage and sales promotion to induce trial.  Growth Stage – all the tools can be toned down because demand has its own momentum through word of mouth  Maturity Stage – sales promotion, advertising, and personal selling all grow more importing, in their order  Decline Stage – sales promotion continues strong, advertising and publicity are reduced, and salespeople give the product only minimal attention.
  65. 65. According to American Association of Advertising Agencies, IMC is: A concept of marketing communication planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communications disciples – for example, general advertising, direct response, sales promotion and public relations – and combines these disciplines to provide clarity, consistency, and maximum communications’ impact through the seamless integration of discrete message.
  66. 66. Thank you 

Notas do Editor

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    Lecture 12
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    Lecture 12