1
1
Promotions:
Integrated Marketing Communication
Strategy
2
Marketing Communication Mix or Promotion
Mix
Product’s
Design
Product’s
Price
Product’s
Package
Stores that Sell
the Product
3
The Changing Communications Environment
Two Factors
are Changing the Face of Today’s
Marketing Communications:
Improvements in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting
Marketers Have Shifted
Away From Mass
Marketing
Less Broadcasting
M
a
r
k
e
t
F
r
a
g
m
e
n
t
a
t
i
o
n
L
e
d
t
o
M
e
d
i
a
F
r
a
g
m
e
n
t
a
t
i
o
n
4
The Need for Integrated Marketing Communications
With Integrated Marketing
Communications (IMC), the
Company Carefully Integrates and
Coordinates Its Many
Communications Channels to
Deliver a Clear, Consistent, and
Compelling Message About the
Organization and Its Product or
Service.
6
Preselling
Preselling
Selling
Selling
Post-
Consumption
Post-
Consumption
Consuming
Consuming
Marketers View Communications as the
Management of the Customer Relationship Over
Time Through the Following Stages:
A View of the Communications Process
7
Elements in the Communication Process
2
8
Sellers Need to
Know What Audiences
They Wish to Reach
and Response
Desired.
Sellers Need to
Know What Audiences
They Wish to Reach
and Response
Desired.
Sellers Must be Good
at Encoding Messages
That Target Audience
Can Decode.
Sellers Must be Good
at Encoding Messages
That Target Audience
Can Decode.
Key Factors in Good Communication
Sellers Must Send
Messages Through
Media that Reach
Target Audiences
Sellers Must Send
Messages Through
Media that Reach
Target Audiences
Sellers Must Develop
Feedback Channels to
Assess Audience’s
Response to
Messages.
Sellers Must Develop
Feedback Channels to
Assess Audience’s
Response to
Messages.
9
Step 1. Identifying the Target Audience
Step 2. Determining the Communication Objectives
Buyer Readiness Stages
Purchase
Purchase
Conviction
Preference
Liking
Knowledge
Awareness
Steps in Developing Effective Communication
This ad for the Toyota Celica
may be able to cover the first
three stages of the buyer-
readiness stages: awarenes s,
knowledge, and liking.
There is no mention of
competitors, so it doesnot
seem to establish preference.
10
Step 3. Designing a Message
Message Content
Rational Appeals
Emotional Appeals
Moral Appeals
Message Structure
Draw Conclusions
Argument Type
Argument Order
Message Format
Headline, Illustration,
Copy, & Color
Body Language
Steps in Developing Effective Communication
Designing a
Message
Content
The pi ctures andthe
slogan make this what
type of appeal?
Format
Thi slayout, al most like
a yearbookor photo
album, reinforces the
sentimental aspect
of this advertisement.
Cli k b t t
Is this ad making an emotional,
rational, or moral appeal, or is it
combining them? How much
do the personified cows
contribute to this ad?
Is the ad structured to let the
audience make a decision?
Is this an effective ad?
The same company puts lifelike
statues of cows, with this slogan,
into mall food courts. What
makes that practice effective?
11
Nonpersonal Communication
Channels
Step 4. Choosing Media
Personal Communication
Channels
Step 5. Selecting the Message Source
Step 6. Collecting Feedback
Steps in Developing Effective Communication
12
Affordable
Based on What the
Company Can Afford
Objective-and-Task
Based on Determining
Objectives & Tasks, Then
Estimating Costs
Objective-and-Task
Based on Determining
Objectives & Tasks, Then
Estimating Costs
Percentage of Sales
Based on a Certain Percentage
of Current or Forecasted Sales
Percentage of Sales
Based on a Certain Percentage
of Current or Forecasted Sales
Competitive-Parity
Based on the Competitor’s
Promotion Budget
Competitive-Parity
Based on the Competitor’s
Promotion Budget
One of the Hardest Marketing Decisions Facing a
Company is How Much to Spend on Promotion.
Setting the Total Promotion Budget
13
Advertising
Advertising
Personal
Selling
Personal
Selling
Sales
Promotion
Sales
Promotion
Public
Relations
Public
Relations
Direct
Marketing
Direct
Marketing
Reach Many Buyers, Repeat Message
Many Times, Impersonal, Expensive
Reach Many Buyers, Repeat Message
Many Times, Impersonal, Expensive
Personal Interaction, Relationship
Building, Most Expensive Promo Tool
Personal Interaction, Relationship
Building, Most Expensive Promo Tool
Wide Assortment of Tools, Rewards
Quick Response, Efforts Short-Lived
Wide Assortment of Tools, Rewards
Quick Response, Efforts Short-Lived
Very Believable, Dramatize a Company
or Product, Underutilized
Very Believable, Dramatize a Company
or Product, Underutilized
Nonpublic, Immediate, Customized,
Interactive
Nonpublic, Immediate, Customized,
Interactive
Setting the Promotion Mix
3
14
Strategy that
Calls for
Spending A Lot
on Advertising
and Consumer
Promotion to
Build Up (Pull)
Consumer
Demand.
Strategy
Selected
Depends
on:
Type of
Product-
Market &
Product
Life-Cycle
Stage
Strategy that
Calls for Using
the Salesforce
and Trade
Promotion to
Push the
Product Through
the Channels.
Promotion Mix Strategies
15
Advertising
16
Advertising
Advertising is centuries old.
U.S. advertisers spend in excess of $250 billion
each year; worldwide spending exceeds $500
billion.
Advertising is used by:
Business firms,
Nonprofit organizations,
Professionals, and
Social agencies.
17
What is Advertising?
Advertising is Any Paid Form
of Nonpersonal Presentation
and Promotion of Ideas,
Goods, or Services by an
Identified Sponsor.
19
Major Advertising Decisions
Objectives
Setting
•Communication
objectives
•Sales Objectives
Budget
Decisions
•Affordable
Approach
•Percent of sales
•Competitive
parity
•Objective and
task
Message Decisions
•Message Strategy
•Message Execution
Media Decisions
•Reach, Frequency, Impact
•Major Media Types
•Specific Media Types
•Media Timing
Campaign
Evaluation
•Communication Impact
•Sales Impact
20
Informative Advertising
Inform Consumers or
Build Primary Demand
i.e CD Players
Comparison Advertising
Compares One Brand to
Another
i.e. Avis vs. Hertz
Persuasive Advertising
Build Selective Demand
i.e Sony CD Players
Reminder Advertising
Keeps Consumers Thinking
About a Product
i.e. Coca-Cola
Advertising Objective
Specific Communication Task
Accomplished with a Specific
Target Audience
During a Specific Period of Time
Setting Advertising Objectives
4
21
Creating the
Advertising
Messages
Selecting the
Advertising Media
Advertising Strategy Consists of Two Major Elements
and Companies are Realizing the Benefits of Planning
These Two Elements Jointly.
Developing Advertising Strategy
22
Plan a Message Strategy
General Message to Be Communicated to Customers
Develop a Message
Focus on
Customer Benefits
Develop a Message
Focus on
Customer Benefits
Creative Concept
“Big Idea”
Visualization or Phrase
Combination of Both
Creative Concept
“Big Idea”
Visualization or Phrase
Combination of Both
Advertising Appeals
Meaningful
Believable
Distinctive
Advertising Appeals
Meaningful
Believable
Distinctive
Developing Advertising Strategy: Creating Ad
Messages
Some phrases or BigIdeas becomeso
effectivethat they spark trends in speaking,
fashion, or evenin other ads.
23
Typical
Message
Execution
Styles
Testimonial Evidence
Testimonial Evidence
Slice of Life
Slice of Life
Scientific Evidence
Scientific Evidence
Lifestyle
Lifestyle
Technical Expertise
Technical Expertise Fantasy
Fantasy
Musical
Musical
Personality Symbol
Personality Symbol
Mood or Image
Mood or Image
Turning the “Big Idea” Into an Actual Ad to Capture
the Target Market’s Attention and Interest.
Developing Advertising Strategy: Message
Execution
What type of message
executi on do these two
ads employ?
Mes s age
Exe cut i on
In both cases, what
dis tingui shes the
product from the
res t of the ad?
Cli k b t t
What typeof mood does this set abou ttheproduct?
Whichl ifestyle does it appeal to?
This Colgate ad
informs customers
about the necessity
of brushing after
lunch.
In addit ion to
acquiring new
customers, Colgate
may increase
toothpaste use by
present customers.
24
Step 1. Decide on Reach, Frequency,
and Impact
Step 2. Choosing Among Major Media Types
Media Habits of Target Consumers,
Nature of the Product, Types of Message, Cost
Step 3. Selecting Specific Media Vehicles
Specific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality
Step 4. Deciding on Media Timing
Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
Advertising Strategy:
Selecting Advertising Media
25
Communication Effects
Is the Ad Communicating Well?
Communication Effects
Is the Ad Communicating Well?
Advertising Program Evaluation
Sales Effects
Is the Ad Increasing Sales?
Sales Effects
Is the Ad Increasing Sales?
Evaluating Advertising
Jon Steel, of
Goodby, Silverstein, and Partners:
27
International Advertising Decisions
Adaptation of Global Advertising
Advertising Media Differ
Considerably in Availability and Cost
Regulation in Advertising Practices
Comparison Ads Not Acceptable in
All Countries
Programs Must be Matched to
Local Cultures and Customs
5
37
Socially Responsible Marketing
Communication
Advertising and Sales Promotion
Companies must avoid false and deceptive advertising.
Sellers must avoid bait-and-switch advertising.
Trade promotion activities are also closely regulated.
Personal Selling
Salespeople must follow the rules of “fair competition”.
Three-day cooling-off rule
Salespeople must not disparage competitors.
doc_959984494.pdf
1
Promotions:
Integrated Marketing Communication
Strategy
2
Marketing Communication Mix or Promotion
Mix
Product’s
Design
Product’s
Price
Product’s
Package
Stores that Sell
the Product
3
The Changing Communications Environment
Two Factors
are Changing the Face of Today’s
Marketing Communications:
Improvements in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting
Marketers Have Shifted
Away From Mass
Marketing
Less Broadcasting
M
a
r
k
e
t
F
r
a
g
m
e
n
t
a
t
i
o
n
L
e
d
t
o
M
e
d
i
a
F
r
a
g
m
e
n
t
a
t
i
o
n
4
The Need for Integrated Marketing Communications
With Integrated Marketing
Communications (IMC), the
Company Carefully Integrates and
Coordinates Its Many
Communications Channels to
Deliver a Clear, Consistent, and
Compelling Message About the
Organization and Its Product or
Service.
6
Preselling
Preselling
Selling
Selling
Post-
Consumption
Post-
Consumption
Consuming
Consuming
Marketers View Communications as the
Management of the Customer Relationship Over
Time Through the Following Stages:
A View of the Communications Process
7
Elements in the Communication Process
2
8
Sellers Need to
Know What Audiences
They Wish to Reach
and Response
Desired.
Sellers Need to
Know What Audiences
They Wish to Reach
and Response
Desired.
Sellers Must be Good
at Encoding Messages
That Target Audience
Can Decode.
Sellers Must be Good
at Encoding Messages
That Target Audience
Can Decode.
Key Factors in Good Communication
Sellers Must Send
Messages Through
Media that Reach
Target Audiences
Sellers Must Send
Messages Through
Media that Reach
Target Audiences
Sellers Must Develop
Feedback Channels to
Assess Audience’s
Response to
Messages.
Sellers Must Develop
Feedback Channels to
Assess Audience’s
Response to
Messages.
9
Step 1. Identifying the Target Audience
Step 2. Determining the Communication Objectives
Buyer Readiness Stages
Purchase
Purchase
Conviction
Preference
Liking
Knowledge
Awareness
Steps in Developing Effective Communication
This ad for the Toyota Celica
may be able to cover the first
three stages of the buyer-
readiness stages: awarenes s,
knowledge, and liking.
There is no mention of
competitors, so it doesnot
seem to establish preference.
10
Step 3. Designing a Message
Message Content
Rational Appeals
Emotional Appeals
Moral Appeals
Message Structure
Draw Conclusions
Argument Type
Argument Order
Message Format
Headline, Illustration,
Copy, & Color
Body Language
Steps in Developing Effective Communication
Designing a
Message
Content
The pi ctures andthe
slogan make this what
type of appeal?
Format
Thi slayout, al most like
a yearbookor photo
album, reinforces the
sentimental aspect
of this advertisement.
Cli k b t t
Is this ad making an emotional,
rational, or moral appeal, or is it
combining them? How much
do the personified cows
contribute to this ad?
Is the ad structured to let the
audience make a decision?
Is this an effective ad?
The same company puts lifelike
statues of cows, with this slogan,
into mall food courts. What
makes that practice effective?
11
Nonpersonal Communication
Channels
Step 4. Choosing Media
Personal Communication
Channels
Step 5. Selecting the Message Source
Step 6. Collecting Feedback
Steps in Developing Effective Communication
12
Affordable
Based on What the
Company Can Afford
Objective-and-Task
Based on Determining
Objectives & Tasks, Then
Estimating Costs
Objective-and-Task
Based on Determining
Objectives & Tasks, Then
Estimating Costs
Percentage of Sales
Based on a Certain Percentage
of Current or Forecasted Sales
Percentage of Sales
Based on a Certain Percentage
of Current or Forecasted Sales
Competitive-Parity
Based on the Competitor’s
Promotion Budget
Competitive-Parity
Based on the Competitor’s
Promotion Budget
One of the Hardest Marketing Decisions Facing a
Company is How Much to Spend on Promotion.
Setting the Total Promotion Budget
13
Advertising
Advertising
Personal
Selling
Personal
Selling
Sales
Promotion
Sales
Promotion
Public
Relations
Public
Relations
Direct
Marketing
Direct
Marketing
Reach Many Buyers, Repeat Message
Many Times, Impersonal, Expensive
Reach Many Buyers, Repeat Message
Many Times, Impersonal, Expensive
Personal Interaction, Relationship
Building, Most Expensive Promo Tool
Personal Interaction, Relationship
Building, Most Expensive Promo Tool
Wide Assortment of Tools, Rewards
Quick Response, Efforts Short-Lived
Wide Assortment of Tools, Rewards
Quick Response, Efforts Short-Lived
Very Believable, Dramatize a Company
or Product, Underutilized
Very Believable, Dramatize a Company
or Product, Underutilized
Nonpublic, Immediate, Customized,
Interactive
Nonpublic, Immediate, Customized,
Interactive
Setting the Promotion Mix
3
14
Strategy that
Calls for
Spending A Lot
on Advertising
and Consumer
Promotion to
Build Up (Pull)
Consumer
Demand.
Strategy
Selected
Depends
on:
Type of
Product-
Market &
Product
Life-Cycle
Stage
Strategy that
Calls for Using
the Salesforce
and Trade
Promotion to
Push the
Product Through
the Channels.
Promotion Mix Strategies
15
Advertising
16
Advertising
Advertising is centuries old.
U.S. advertisers spend in excess of $250 billion
each year; worldwide spending exceeds $500
billion.
Advertising is used by:
Business firms,
Nonprofit organizations,
Professionals, and
Social agencies.
17
What is Advertising?
Advertising is Any Paid Form
of Nonpersonal Presentation
and Promotion of Ideas,
Goods, or Services by an
Identified Sponsor.
19
Major Advertising Decisions
Objectives
Setting
•Communication
objectives
•Sales Objectives
Budget
Decisions
•Affordable
Approach
•Percent of sales
•Competitive
parity
•Objective and
task
Message Decisions
•Message Strategy
•Message Execution
Media Decisions
•Reach, Frequency, Impact
•Major Media Types
•Specific Media Types
•Media Timing
Campaign
Evaluation
•Communication Impact
•Sales Impact
20
Informative Advertising
Inform Consumers or
Build Primary Demand
i.e CD Players
Comparison Advertising
Compares One Brand to
Another
i.e. Avis vs. Hertz
Persuasive Advertising
Build Selective Demand
i.e Sony CD Players
Reminder Advertising
Keeps Consumers Thinking
About a Product
i.e. Coca-Cola
Advertising Objective
Specific Communication Task
Accomplished with a Specific
Target Audience
During a Specific Period of Time
Setting Advertising Objectives
4
21
Creating the
Advertising
Messages
Selecting the
Advertising Media
Advertising Strategy Consists of Two Major Elements
and Companies are Realizing the Benefits of Planning
These Two Elements Jointly.
Developing Advertising Strategy
22
Plan a Message Strategy
General Message to Be Communicated to Customers
Develop a Message
Focus on
Customer Benefits
Develop a Message
Focus on
Customer Benefits
Creative Concept
“Big Idea”
Visualization or Phrase
Combination of Both
Creative Concept
“Big Idea”
Visualization or Phrase
Combination of Both
Advertising Appeals
Meaningful
Believable
Distinctive
Advertising Appeals
Meaningful
Believable
Distinctive
Developing Advertising Strategy: Creating Ad
Messages
Some phrases or BigIdeas becomeso
effectivethat they spark trends in speaking,
fashion, or evenin other ads.
23
Typical
Message
Execution
Styles
Testimonial Evidence
Testimonial Evidence
Slice of Life
Slice of Life
Scientific Evidence
Scientific Evidence
Lifestyle
Lifestyle
Technical Expertise
Technical Expertise Fantasy
Fantasy
Musical
Musical
Personality Symbol
Personality Symbol
Mood or Image
Mood or Image
Turning the “Big Idea” Into an Actual Ad to Capture
the Target Market’s Attention and Interest.
Developing Advertising Strategy: Message
Execution
What type of message
executi on do these two
ads employ?
Mes s age
Exe cut i on
In both cases, what
dis tingui shes the
product from the
res t of the ad?
Cli k b t t
What typeof mood does this set abou ttheproduct?
Whichl ifestyle does it appeal to?
This Colgate ad
informs customers
about the necessity
of brushing after
lunch.
In addit ion to
acquiring new
customers, Colgate
may increase
toothpaste use by
present customers.
24
Step 1. Decide on Reach, Frequency,
and Impact
Step 2. Choosing Among Major Media Types
Media Habits of Target Consumers,
Nature of the Product, Types of Message, Cost
Step 3. Selecting Specific Media Vehicles
Specific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality
Step 4. Deciding on Media Timing
Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
Advertising Strategy:
Selecting Advertising Media
25
Communication Effects
Is the Ad Communicating Well?
Communication Effects
Is the Ad Communicating Well?
Advertising Program Evaluation
Sales Effects
Is the Ad Increasing Sales?
Sales Effects
Is the Ad Increasing Sales?
Evaluating Advertising
Jon Steel, of
Goodby, Silverstein, and Partners:
27
International Advertising Decisions
Adaptation of Global Advertising
Advertising Media Differ
Considerably in Availability and Cost
Regulation in Advertising Practices
Comparison Ads Not Acceptable in
All Countries
Programs Must be Matched to
Local Cultures and Customs
5
37
Socially Responsible Marketing
Communication
Advertising and Sales Promotion
Companies must avoid false and deceptive advertising.
Sellers must avoid bait-and-switch advertising.
Trade promotion activities are also closely regulated.
Personal Selling
Salespeople must follow the rules of “fair competition”.
Three-day cooling-off rule
Salespeople must not disparage competitors.
doc_959984494.pdf