Download - IMC process with examples
Integrated Marketing Communication Strategy
MGT 252, lecture 10a
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Learning Goals
1. Name and define the five tools of the marketing communications mix
2. Discuss the process and advantages of integrated marketing communications
3. Outline the steps in developing effective marketing communications
4. Explain the methods for setting the marketing communications budget and factors that affect the design of the promotion mix
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• Marketing the anything-but-ordinary car presented big challenges.
• The MINI is a tiny but potent car that has a retro 60s look.
• Canadians tend to be serious about their cars.
• The marketing team concluded that In Canada the car performance was the main attribute to stress.
• BMW choose Taxi as its advertising agency.
• Taxi created an integrated strategy with unified brand personality: “The MINI is an individualistic, high-performance, premium vehicle that’s fun to drive.”
• The campaign began with a 60-second movie theatre spot called “Anthem”.
• Traditional print and outdoor advertising followed next: “parks as faster than a Ferrari”, “Onramps are foreplay”, and “The world is your go-kart track”.
• Ads were placed everywhere• Edgy and humorous TV spots were also
used.• Other components: “Velocity” parties,
online contests, driving events, and investments in showroom improvements.
• Hip dealerships were selected and trained in a new soft-sell approach.
• Product placement in the remake of The Italian Job, online marketing, and publicity.
• Finally word of mouth.• The campaign was a huge success and
annual sales goals were exceeded.
Case StudyBMW MINI
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Learning Goals
1. Name and define the five tools of the marketing communications mix
2. Discuss the process and advantages of integrated marketing communications
3. Outline the steps in developing effective marketing communications
4. Explain the methods for setting the marketing communications budget and factors that affect the design of the promotion mix
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The MarketingCommunications Mix
• Marketing Communications Mix– The specific mix of advertising, personal selling,
sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.
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Figure 14.1 Integrated Marketing Communications
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The MarketingCommunications Mix
• Advertising: – Any paid form of non-
personal presentation and promotion of ideas, goods, or services by an identified sponsor
• Sales promotion:– Short-term incentives to
encourage purchase or sale of a product or service
• Public relations:– Building good relations and
corporate image with the company’s publics using publicity, and handling unfavourable events
• Personal selling:– Personal presentation by the
firm’s sales force for the purpose of making sales and building customer relationships
• Direct marketing:– Direct communications with
targeted individuals to obtain an immediate response and lasting customer relationships
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Learning Goals
1. Name and define the five tools of the marketing communications mix
2. Discuss the process and advantages of integrated marketing communications
3. Outline the steps in developing effective marketing communications
4. Explain the methods for setting the marketing communications budget and factors that affect the design of the promotion mix
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• The Marketing Communications Environment is Changing:– Mass markets have fragmented, causing marketers to shift
away from mass marketing to target marketing.– Improvements in information technology are facilitating
segmentation– Media fragmentation has occurred with companies doing
less broadcasting and more narrowcasting
Integrated Marketing Communications
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This ad from Advertising Age Magazine attempts to pull advertisers to Television
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• 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
Integrated Marketing Communications
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• The Need for Integrated Marketing Communications– 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
Integrated Marketing Communications
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• Integrated Marketing Communications– The concept under which a company carefully
integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.
Integrated Marketing Communications
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Learning Goals
1. Name and define the five tools of the marketing communications mix
2. Discuss the process and advantages of integrated marketing communications
3. Outline the steps in developing effective marketing communications
4. Explain the methods for setting the marketing communications budget and factors that affect the design of the promotion mix
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The Communication Process
• Communications efforts should be viewed from the perspective of managing customer relationships over time.
• The communication process begins with an audit of all potential contacts a customer might have with the brand.
• Effective communication requires knowledge of how communication works.
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Figure 14.2Elements in the
Communication Process
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• Step 1: Identifying the Target Audience– Affects decisions related to what, how, when, and where
message will be said, as well as who will say it
• Step 2: Determining Communication Objectives– Six buyer readiness stages
Steps in DevelopingEffective Communication
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Figure 14.3Buyer-Readiness Stages
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• Who is the target?
• Which readiness stage?– Awareness– Knowledge – Liking– Preference– Conviction– Purchase
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Steps in DevelopingEffective Communication
• Step 3: Designing a Message– AIDA framework guides message design– Message content contains appeals or themes designed to
produce desired results• Rational appeals: relate to the audience’s self-interest• Emotional appeals: stir up negative or positive feelings using
humour, fear, pride, joy, or even disgust• Moral appeals: related the audience’s sense of right versus wrong
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• What is appeal?– Rational appeals– Emotional appeals
• Love, pride, joy, humor, fear, guilt, shame
– Moral appeals
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• What is appeal?– Rational appeals– Emotional appeals
• Love, pride, joy, humor, fear, guilt, shame
– Moral appeals
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Discussion Question
Why can humour be a
particularly effective appeal?
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Steps in DevelopingEffective Communication
• Step 3: Designing a Message– Message Structure: Key decisions are required with
respect to three message structure issues:• Whether or not to draw a conclusion• One-sided vs. two-sided argument• Order of argument presentation
– Message Format: Design, layout, copy, color, shape, movement, words, sounds, voice, body language, dress, etc.
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Steps in DevelopingEffective Communication
• Step 4: Choosing Media– Personal communication channels
• Includes face-to-face, phone, mail, and Internet chat communications
• Word-of-mouth influence is often critical• Buzz marketing cultivates opinion leaders
– Nonpersonal communication channels• Includes media, atmosphere, and events
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Steps in DevelopingEffective Communication
• Step 5: Selecting the Message Source– Highly credible sources are more persuasive– A poor spokesperson can tarnish a brand
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Discussion QuestionEffective Spokespeople?
What makes an effective
spokesperson?When should they
NOT be used?
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Steps in DevelopingEffective Communication
• Step 6: Collecting Feedback– Recognition, recall, and behavioural measures are
assessed– May suggest changes in product/promotion
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Advertising Recall
• Put away your notes• Recall all the ads and marketing messages you
have seen so far in this lecture
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Learning Goals
1. Name and define the five tools of the marketing communications mix
2. Discuss the process and advantages of integrated marketing communications
3. Outline the steps in developing effective marketing communications
4. Explain the methods for setting the marketing communications budget and factors that affect the design of the promotion mix
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Setting the TotalPromotion Budget
• Affordability Method– Budget is set at a level that a company can afford
• Percentage-of-Sales Method– Past or forecasted sales may be used
• Competitive-Parity Method– Budget matches competitors’ outlays
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Setting the TotalPromotion Budget
• Objective-and-Task Method– Specific objectives are defined– Tasks required to achieve objectives are
determined– Costs of performing tasks are estimated, then
summed to create the promotional budget
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Setting the OverallCommunication Mix
• Determined by the nature of each promotion tool and the selected promotion mix strategy
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Video SnippetDD advertising
reaches a broad audience
• 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
Setting the OverallCommunication Mix
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• 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 long-term
commitment• Most expensive of the promotional
tools
Setting the OverallCommunication Mix
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• 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 long-term
brand preferences
Setting the OverallCommunication Mix
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• 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
Setting the OverallCommunication Mix
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• 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
Setting the OverallCommunication Mix
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Figure 14.4Push vs. Pull Promotion Strategy
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• Analyze trends (internal and external)• Audit communications spending• Identify all points of contact• Team up in communications planning• Make all communication elements compatible• Create performance measures• Appoint an IMC manager
Integrating the Promotion Mix
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• Advertising and Sales Promotion– Avoid false and deceptive advertising– No bait and switch advertising– Trade promotions can not favor certain customers
over others– Use advertising to promote socially responsible
programs and actions
Socially Responsible Communication
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• Personal Selling– Salespeople must follow the rules of “fair competition”– Three day cooling-off rule protects ultimate consumers
from high pressure tactics– Business-to-business selling
• Bribery, industrial espionage, and making false and disparaging statements about a competitor are forbidden
Socially Responsible Communication
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Learning Goals
1. Name and define the five tools of the marketing communications mix
2. Discuss the process and advantages of integrated marketing communications
3. Outline the steps in developing effective marketing communications
4. Explain the methods for setting the marketing communications budget and factors that affect the design of the promotion mix