Designing and Managing Integrated Marketing Communications P for Promotion

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Designing and Managing Integrated Marketing
CommunicationsP for Promotion
Lecture 10
Chapters 19/20
Marketing Management, European edition
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(No Transcript)
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Chapter Questions

• What is the role of marketing communications?
• How do marketing communications work?
• What are the major steps in developing effective
  communications?
• What is the communications mix and how should it
  be set?
• What is an integrated marketing communications
  programme?
• Which marketing communications are effective in
  B2C, and which in B2B?

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Marketing Communications
The means by which firms attempt to inform,
persuade, and remind consumers, directly or
indirectly, about the products and brands they
sell.
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Attitude
A learned tendency to respond to an object in a
consistently favourable or unfavourable way
Onkvisit and Shaw, 1994

• To Change
• Add a new salient belief
• Change the strength of a salient belief
• Change the evaluation of a salient belief

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Image
The set of beliefs, ideas, and impressions a
person holds regarding an object.
Kotler, 2003
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Promotions Management Methods
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Communication Platforms

• Advertising
• Print and broadcast ads
• Packaging inserts
• Motion pictures
• Brochures and booklets
• Posters
• Billboards
• POS displays
• Logos
• Videotapes

• Sales Promotion
• Contests, games, sweepstakes
• Premiums
• Sampling
• Trade shows, exhibits
• Coupons
• Rebates
• Entertainment
• Continuity programmes

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Communication Platforms

• Events/ Experiences
• Sports
• Entertainment
• Festivals
• Arts
• Causes
• Factory tours
• Company museums
• Street activities

• Public Relations
• Press kits
• Speeches
• Seminars
• Annual reports
• Charitable donations
• Publications
• Community relations
• Lobbying.

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Communication Platforms

• Personal Selling
• Sales presentations
• Sales meetings
• Incentive programmes
• Samples
• Fairs and trade shows

• Direct Marketing
• Catalogues
• Mailings
• Telemarketing
• Electronic shopping
• TV shopping
• Fax mail
• E-mail
• Voice mail
• SMS.

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B2B and B2C methods

• B2B
• Personal Selling
• Exhibitions and Trade Shows
• Direct Mail
• Targetted Advertising (Trade Journals etc)
• Public Relations

• B2C
• Advertising
• Promotions
• Samples and Trials
• Word of Mouth

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The Process
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Hierarchy of Communication Effects
Purchase
Conviction
Preference
Liking
Knowledge
Awareness
Brand ignorance
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Response Hierarchy Models
a Psychology of Selling, E Strong, 1925 b A model
for Predictive Measurements of Advertising
Effectiveness, Lavidge Steiner, 1961 c
Diffusion of Innovation, Rodgers, 1962 d Various
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Steps in Developing Effective Communications
Identify target audience
Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Measure results/ manage IMC
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Designing the Communications

• Message strategy
• Creative strategy
• Message source
• Global adaptation

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The Importance of Taglines
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Personal Communications Channels
Advocate channels
Expert channels
Social channels
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Stimulating Personal Influence Channels

• Identify influential individuals and devote extra
  attention to them
• Create opinion leaders
• Use community influencers in testimonial
  advertising
• Develop advertising with high conversation
  value
• Develop WOM referral channels
• Establish an electronic forum
• Use viral marketing.

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Message Source

• Celebrity Characteristics
• Expertise
• Trustworthiness
• Likeability.

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Nonpersonal Communication Channels
Media
Sales Promotion
Events and Experiences
Public Relations
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Establish the Budget
Affordable
Percentage-of-Sales
Competitive Parity
Objective-and-Task
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Objective-and-Task Method

• Establish the market share goal
• Determine the percentage that should be reached
• Determine the percentage of aware prospects that
  should be persuaded to try the brand
• Determine the number of advertising impressions
  per 1 trial rate
• Determine the number of gross rating points that
  would have to be purchased
• Determine the necessary advertising budget on the
  basis of the average cost of buying a GRP

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Factors in Setting Communications Mix

• Type of Product Market
• Consumer Readiness to Make a Purchase
• Stage in the Product Life Cycle
• Market Rank

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Cost Effectiveness by Buyer Readiness Stage
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Current Consumer States for Two Brands
Advertising success - - Product failure
Product success - - Advertising failure
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Managing Mass Communications Advertising,
Sales Promotions, Events and Experiences, and
Public Relations
Chapter 20
Marketing Management, European edition
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The Five Ms of Advertising
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Advertising Objectives
Informative advertising
Persuasive advertising
Reminder advertising
Reinforcement advertising
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Developing the Advertising Campaign

• Message generation and evaluation
• Creative development and execution
• Legal and social issues

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Print Ad Components
Picture
Headline
Copy
Signature
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Using Sales Promotions
Establish objectives
Select tools
Develop programme
Pretest
Implement and control
Evaluate results
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Sales Promotion Tactics

• Consumer-directed
• Samples
• Coupons
• Cash refund offers
• Price offs
• Premiums
• Prizes
• Patronage rewards
• Free trials
• Tie-in promotions

• Trade-directed
• Price offs
• Allowances
• Free goods
• Sales contests
• Spiffs
• Trade shows
• Specialty advertising

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Seminar Activity

• Strategy Water
• Company review
• Assignment Discussion (student-led!).