To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 16©2003 Prentice Hall, Inc.

Chapter 16Chapter 16

Designing and Managing Designing and Managing Integrated Marketing Integrated Marketing

CommunicationsCommunications

PowerPoint by Karen E. JamesPowerPoint by Karen E. JamesLouisiana State University - ShreveportLouisiana State University - Shreveport

To accompany A Framework for Marketing Management, 2nd Edition Slide 2 in Chapter 16©2003 Prentice Hall, Inc.

ObjectivesObjectives

Learn the major steps in developing an effective integrated marketing communications program.

Understand the steps involved in developing an advertising program.

Learn how companies can exploit the marketing potential of sales promotion, public relations, direct marketing, and e-marketing.

To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 16©2003 Prentice Hall, Inc.

Marketing CommunicationsMarketing Communications

Advertising

Sales Promotion

Public relations

Direct marketing

Personal selling

Communications Platforms

To accompany A Framework for Marketing Management, 2nd Edition Slide 4 in Chapter 16©2003 Prentice Hall, Inc.

Developing Effective Developing Effective Marketing CommunicationsMarketing Communications

Identify target audience

Determine objectives of communication

Design the message

Select communication channels

Establish the budget

Select the marketing communications mix

Measure results

Manage the IMC process

Steps in Marketing Communications Program Development

To accompany A Framework for Marketing Management, 2nd Edition Slide 5 in Chapter 16©2003 Prentice Hall, Inc.

Developing Effective Developing Effective Marketing CommunicationsMarketing Communications

Step 1: Identifying the target audience

– Includes assessing the audience’s perceptions of the company, product, and competitors’ company/product image

Step 2: Cognitive, affective, and behavioral objectives may be set

Step 3: AIDA model guides message design

To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 16©2003 Prentice Hall, Inc.

Developing Effective Developing Effective Marketing CommunicationsMarketing Communications

Message Design

Content

Structure

Format

Source

Message content decisions involve the selection of appeal, theme, idea, or USP

Types of appeals– Rational appeals– Emotional appeals– Moral appeals

To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 16©2003 Prentice Hall, Inc.

Developing Effective Developing Effective Marketing CommunicationsMarketing Communications

Message Design

Content

Structure

Format

Source

One-sided vs. two-sided messages

Order of argument presentation

To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 16©2003 Prentice Hall, Inc.

Developing Effective Developing Effective Marketing CommunicationsMarketing Communications

Message Design

Content

Structure

Format

Source

Message format decisions vary with the type of media, but may include:– Graphics, visuals– Headline, copy or

script– Sound effects,

voice qualities– Shape, scent,

texture of package

To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 16©2003 Prentice Hall, Inc.

Developing Effective Developing Effective Marketing CommunicationsMarketing Communications

Message Design

Content

Structure

Format

Source

Message source characteristics can influence attention and recall

Factors underlying perceptions of source credibility:– Expertise– Trustworthiness– Likability

To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 16©2003 Prentice Hall, Inc.

Developing Effective Developing Effective Marketing CommunicationsMarketing Communications

Step 4: Selecting Communication Channels

– Personal communication channelsEffectiveness derives from

personalization and feedbackSeveral methods of stimulating personal

communication channels exist– Nonpersonal communication channels

Influence derives from two-step flow-of-communication process

To accompany A Framework for Marketing Management, 2nd Edition Slide 11 in Chapter 16©2003 Prentice Hall, Inc.

Developing Effective Developing Effective Marketing CommunicationsMarketing Communications

Devoting extra effort to influential individuals or companies

Creating opinion leaders

Working through influential community members

Using influential people in testimonial advertising

Developing advertising with high “conversation value”

Use viral marketing

Developing word-of-mouth referral channels

Establishing an electronic forum

Methods of Stimulating Personal Communication

To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 16©2003 Prentice Hall, Inc.

Developing Effective Developing Effective Marketing CommunicationsMarketing Communications

Step 5: Establishing the Marketing Communications Budget

– Affordability method– Percentage-of-sales method– Competitive-parity method– Objective-and-task method

Step 6: Deciding on the Marketing Communications Mix

To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 16©2003 Prentice Hall, Inc.

Developing Effective Developing Effective Marketing CommunicationsMarketing Communications

Communications Mix Selection

Types of promotional tools

Selection factors

Advertising

Sales promotion

Public relations and publicity

Direct marketing

Personal selling

To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 16©2003 Prentice Hall, Inc.

Developing Effective Developing Effective Marketing CommunicationsMarketing Communications

Communications Mix Selection

Types of promotional tools

Selection factors

Consumer vs. business market

Stage of buyer readiness

Stage of product life cycle

Market rank

To accompany A Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 16©2003 Prentice Hall, Inc.

Developing Effective Developing Effective Marketing CommunicationsMarketing Communications

Step 7: Measure Results

– Recognition, recall, attitudes, behavioral responses

Step 8: Manage the Integrated Marketing Communications Process

– Provides stronger message consistency and greater sales impact

– Improves firms’ ability to reach right customers at right time with right message

To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 16©2003 Prentice Hall, Inc.

Developing and Managing the Developing and Managing the Advertising CampaignAdvertising Campaign

The Five Ms of Advertising

Mission

Money

Message

Media

Measurement

Objectives can be classified by aim:

– Inform– Persuade– Remind– Reinforce

To accompany A Framework for Marketing Management, 2nd Edition Slide 17 in Chapter 16©2003 Prentice Hall, Inc.

Developing and Managing the Developing and Managing the Advertising CampaignAdvertising Campaign

Factors considered when budget-setting:– Stage of product life

cycle– Market share and

consumer base– Competition and

clutter– Advertising frequency– Product

substitutability

The Five Ms of Advertising

Mission

Money

Message

Media

Measurement

To accompany A Framework for Marketing Management, 2nd Edition Slide 18 in Chapter 16©2003 Prentice Hall, Inc.

Developing and Managing the Developing and Managing the Advertising CampaignAdvertising Campaign

Factors considered when choosing the advertising message:

– Message generation– Message evaluation

and selection– Message execution– Social responsibility

review

The Five Ms of Advertising

Mission

Money

Message

Media

Measurement

To accompany A Framework for Marketing Management, 2nd Edition Slide 19 in Chapter 16©2003 Prentice Hall, Inc.

Developing and Managing the Developing and Managing the Advertising CampaignAdvertising Campaign

Developing media strategy involves:– Deciding on reach,

frequency, and impact – Selecting media and

vehicles– Determining media

timing– Deciding on

geographical media allocation

The Five Ms of Advertising

Mission

Money

Message

Media

Measurement

To accompany A Framework for Marketing Management, 2nd Edition Slide 20 in Chapter 16©2003 Prentice Hall, Inc.

Developing and Managing the Developing and Managing the Advertising CampaignAdvertising Campaign

Newspapers

Television

Direct mail

Radio

Magazines

Outdoor

Yellow pages

Newsletters

Brochures

Telephone

Internet

Major Media Types

To accompany A Framework for Marketing Management, 2nd Edition Slide 21 in Chapter 16©2003 Prentice Hall, Inc.

Developing and Managing the Developing and Managing the Advertising CampaignAdvertising Campaign

Deciding on Media Categories

– Target audience’s media habits, nature of the product and message, cost

Media Timing Decisions

– Macroscheduling vs. microscheduling– Continuity, concentration, flighting, and

pulsing scheduling options Deciding on Geographical Allocation

To accompany A Framework for Marketing Management, 2nd Edition Slide 22 in Chapter 16©2003 Prentice Hall, Inc.

Developing and Managing the Developing and Managing the Advertising CampaignAdvertising Campaign

Evaluating advertising effectiveness

– Communication-effect research

– Sales-effect research

The Five Ms of Advertising

Mission

Money

Message

Media

Measurement

To accompany A Framework for Marketing Management, 2nd Edition Slide 23 in Chapter 16©2003 Prentice Hall, Inc.

Sales PromotionSales Promotion

Sales promotions are short-term incentives designed to stimulate purchase among consumers or trade

Purpose of sales promotion

– Attract new triers or brand switchers– Reward loyal customers– Increase repurchase rates

To accompany A Framework for Marketing Management, 2nd Edition Slide 24 in Chapter 16©2003 Prentice Hall, Inc.

Sales PromotionSales Promotion

Establish objectives

Select consumer-promotion tools

Select trade-promotion tools

Select business- and sales force promotion tools

Develop the program

Pretest the program

Steps in Sales Promotion Program Development

Implement and evaluate the program

To accompany A Framework for Marketing Management, 2nd Edition Slide 25 in Chapter 16©2003 Prentice Hall, Inc.

Sales PromotionSales Promotion

Samples

Coupons

Cash refunds (rebates)

Premiums

Prizes (contests, sweepstakes, games)

Patronage awards

Free trials

Product warranties

Tie-in promotions

Cross-promotions

Point-of-purchase displays and demonstrations

Major Consumer-Promotion Tools

To accompany A Framework for Marketing Management, 2nd Edition Slide 26 in Chapter 16©2003 Prentice Hall, Inc.

Public RelationsPublic Relations

Public relations activities promote or protect the image of a firm or product

Public relations functions:

– Press relations– Product publicity– Corporate communications– Lobbying– Counseling

To accompany A Framework for Marketing Management, 2nd Edition Slide 27 in Chapter 16©2003 Prentice Hall, Inc.

Public RelationsPublic Relations

Marketing Public Relations (MPR)

– Plays an important role in New product launchesRepositioning of mature brandBuilding interest in product categoryInfluencing specific target groups Defending products with public problemsBuilding the corporate image

Three Major MPR Decisions

To accompany A Framework for Marketing Management, 2nd Edition Slide 28 in Chapter 16©2003 Prentice Hall, Inc.

Public RelationsPublic Relations

Publications

Events

Sponsorships

News

Speeches

Public-service activities

Identity media

Major Public Relations Tools

To accompany A Framework for Marketing Management, 2nd Edition Slide 29 in Chapter 16©2003 Prentice Hall, Inc.

Direct MarketingDirect Marketing

Direct marketing uses consumer-direct channels to reach and deliver offerings to consumers without intermediaries.

Direct marketing is growing and offers consumers key benefits.

Firms are recognizing the importance of integrated direct marketing efforts.

To accompany A Framework for Marketing Management, 2nd Edition Slide 30 in Chapter 16©2003 Prentice Hall, Inc.

Direct MarketingDirect Marketing

Face-to-face selling

Direct mail

Catalog marketing

Telemarketing

Direct-response TV marketing

Kiosk marketing

E-marketing

Major Direct Marketing Tools

To accompany A Framework for Marketing Management, 2nd Edition Slide 31 in Chapter 16©2003 Prentice Hall, Inc.

Direct MarketingDirect Marketing

Steps in Developing a Direct-Mail Campaign:

– Step 1: Set objectives– Step 2: Identify target markets– Step 3: Define the offer– Step 4: Test the elements– Step 5: Measure results