Integrated Marketing Communication

1
Integrated Marketing Communication

• Anuchit Sirikit D.B.A.
• Certified Professional Marketer(Asia Pacific)

2
What is Marketing

• Marketing Focuses on Exchange
• exchange
• Relationship Marketing
• relationship marketing
• superior customer value
• mass customization
• lifetime value

3
Integrated Marketing Communications

• The Evolution of IMC
• integrated marketing communications (IMC)
• new advertising
• orchestration
• seamless communication
• all sources of brands or company contact

4

• Reason for the Growing Importance of IMC
• A shifting of marketing dollars from media
  advertising to other forms of promotion,
  particularly consumer and trade-oriented sales
  promotions.

5

• A movement away from relaying on
  advertising-focused approaches, which emphasize
  mass media such as network television and
  national magazines, to solve communication
  problems.
• A shift in marketplace power from manufacturers
  to retailers.

6

• The rapid growth and development of database
  marketing.
• Demands for greater accountability from
  advertising agencies and changes in the way
  agencies are compensated.
• The rapid growth of the Internet, which is
  changing the very nature of how companies do
  business and the ways they communicate and
  interact with consumers.

7
Instrument of the marketing mix
Source Pelsmacker, Patrick De., Geuens, Maggie
and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England Pearson Education
Ltd. pp. 3
8
Personal versus mass marketing communications
Source Pelsmacker, Patrick De., Geuens, Maggie
and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England Pearson Education
Ltd. pp. 6
9
The marketing mix and Integrated marketing
communications (1)
Public relations
Marketing communications
Advertising
( f )
(a)
(c)
(e)
( b)
(d)
Marketing
Source Hutton, J.H. (1996), Integrated
Marketing Communication and the Evolution of
Marketing Thought , Journal of business
Research, 37, 155-62.
10
The marketing mix and Integrated marketing
communications (2)

• (a) Corporate advertising
  
  (b)
  Salesforce and channel communications, trade
  shows, packaging, direct marketing, sales
  promotions, etc. (c)
  Distribution, logistics , pricing, new-product
  development, etc. (d) Investor
  relations community relations employee
  communications public affairs/government
  relations most media relations crisis
  communications, etc,
  (e)
  Product publicity brochures and other collateral
  materials parts of media relations, crisis
  communications and corporate identity
  sponsorships, etc.
  
  ( f ) Traditional mass-media
  advertising

Source Hutton, J.H. (1996), Integrated
Marketing Communication and the Evolution of
Marketing Thought , Journal of business
Research, 37, 155-62.
11
BRANDING
12
Determinants of successful brands
Additional service
Originality
Successful brand
Good quality
Differentiation
Integrated communications support
Long- term perspective
Source Dibb, S., Simkin, L., Pride, W.M. and
Ferrell, O.C. (1997), Marketing. Concepts and
Strategies. Boston Houghton Mifflin.
13
Basic brand strategies
National
International
Category
Existing
New
Line extension
Brand extension
One brand
Existing
Global branding
Corporate branding
Multi-brands
New brands
New
Local branding
Two brands
Endorsement Ingredient branding
Co-branding
Source Pelsmacker, Patrick De., Geuens, Maggie
and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England Pearson Education
Ltd. pp. 40
14
Components of consumer brand equity

• Brand equity
• Awareness
• Perceived quality
• Strong brand associations
• Others assets
• High brand loyalty

Determinants
Benefits
Source Aaker, D.A. (1991), Managing Brand
Equity. New York The Free Press.
15
The loyalty pyramid
Committed buyer
Like the brand-considers it a friend
Satisfied buyer with switching costs
Satisfied/habitual buyer who has no reason to
change
Switchers/price sensitive - indifferent-no brand
loyalty
Source Pelsmacker, Patrick De., Geuens, Maggie
and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England Pearson Education
Ltd. pp. 49
16
Brand equity components and branding benefits(1)
17
Brand equity components and branding benefits(2)
18
Brand equity components and advertising models
Awareness-salience
Brands awareness
Symbolism
Likeability
Strong brand associations
Emotions
Persuasion
High quality perception
Relationship
High customer loyalty
Sales reponse
Based on Franzen, G. (1998), Merken en Reciame
(Brands and Advertising). Kluwer
Bedrijfsinformatie.
19
Positioning
20

• Market Positioning
• Approaches to Positioning
• Developing a Positioning Strategy

21
Developing a Positioning Strategy

• Positioning by Product Attributes and Benefits
• Positioning by Price/Quality
• Positioning by Use or Application
• Positioning by Product Class
• Positioning by Product User
• Positioning by Competitor
• Positioning by Cultural Symbols
• Repositioning

22
Requirements for effective segmentation
Measurable
Attainable
Effective segmentation
Large enough
Different
Source Pelsmacker, Patrick De., Geuens, Maggie
and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England Pearson Education
Ltd. pp. 102.
23
Targeting strategies

• Concentration on one segment
• Selective specialization
• Product specialization
• Market specialization
• Full market coverage

24
Determining the Positioning Strategy

• Identifying competitors
• Assessing consumers perceptions of competitors
• Determining competitors positions.
• Analyzing the consumers preferences.
• Making the positioning decision.
• Is the segmentation strategy appropriate?

25

• Making the positioning decision.
• Is the segmentation strategy appropriate?
• Are there sufficient resources available to
  communicate the position effectively?
• How Strong is the competition?
• Is the current positioning strategy working?
• Monitoring the position.

26
Positioning strategies

• Product attributes or benefits
• Price / quality
• Use or application
• Product class
• Product user
• Competitor
• Cultural symbols

Source Pelsmacker, Patrick De., Geuens, Maggie
and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England Pearson Education
Ltd. pp. 108.
27
Communications objectives the DAGMAR model
Category need
Brand awareness
Brand knowledge / comprehension
Brand attitude
Brand purchase intention
Purchase facilitation
Purchase
Satisfaction
Brand loyalty
Source Colley, R.H. (1961), Defining Advertising
Goals for Measured Advertising Results. New York
Association of National Advertisers.
28
Stages in the product life-cycle and
communications objectives
Sales
Time
Marketing Top-of-mind awareness Brand attitude
Brand loyalty Customer satisfaction
Stage Marketing communications objectives
Introduction Category need Brand awareness Brand
knowledge Brand attitude
Growth Brand attitude Brand preference
Decline Purchase New target groups
29
Factors affecting the consumer choice situation
Consumer / product relation
Choice process
Choice situation
Point -of-purchase characteristics
Consumer
Advice involved with purchase
Product characteristics
Source Pelsmacker, Patrick De., Geuens, Maggie
and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England Pearson Education
Ltd. pp. 132.
30
Advertising objectives
Product category need Brand awareness Brand
knowledge Feelings evoked by the ad Attitude
towards the ad Liking of the brand Attitude
towards the brand Brand conviction Brand
satisfaction Purchase intention Purchase Repeat-pu
rchase Brand loyalty
Cognitive objectives Affective
objectives Conative objectives
31
Advertising formats

• Testimonial
• Expert endorsement
• Celebrity endorsement
• Slice-of-life
• Comparative advertising
• Music

32
Moderating variables affecting the effectiveness
of humour in advertising
Product type
Effective humorous ads
Existing or new products
Humour type
Relation between humaour and product
Prior brand evaluations
Source Pelsmacker, Patrick De., Geuens, Maggie
and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England Pearson Education
Ltd. pp. 177.
33
Strengths of public relations
Good citizenship
Advice on important trends
Crisis management
Public relations
Difficult-to-reach audiences
Message flexibility
More objective
Cost effective
Source Pelsmacker, Patrick De., Geuens, Maggie
and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England Pearson Education
Ltd. pp. 240.
34
Weaknesses of public relations
Effectiveness hard to measure
Lack of control
Public relations
Journalists as gatekeepers
Source Pelsmacker, Patrick De., Geuens, Maggie
and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England Pearson Education
Ltd. pp. 249.
35
Trends and challenges in public relations
Measuring effect
Good employee relation
Bad reputation
Corporate branding
Specialization
PR
Growing consumer awareness
Globalization
Single-issue publics
New technologies
Source Pelsmacker, Patrick De., Geuens, Maggie
and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England Pearson Education
Ltd. pp. 251.
36
RESEARCH
37

• Motivation Research in Marketing
• In-depth interviews
• Projective techniques
• Association tests
• Focus groups
• Problems and Contributions of Psychoanalytic
  Theory and Motivation Research

38
Strategic communication research

• Pre-test of Advertising
• Post-test of Advertising
• Campaign evaluation Research

39
Objectives of pre-testing
Selection of appropriate stimuli
Optimise esposure frequency
Pre-tests
Testing a finished ad
Assess communications effects
Source Pelsmacker, Patrick De., Geuens, Maggie
and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England Pearson Education
Ltd. pp. 224.
40
Pre-testing techniques

• Internal evaluation
• Checklists
• Readability analysis
• Communications
• Physiological tests
• Recall
• Direct opinion measurement
• Behavioural effects

41
Limitations of pre-testing
Individual testing
Never the best possible ad
Influence of external factors
Limitations of pre-testing
Artificial setting
Limited time between exposure and test
Consumer jury effect
Effect of repetition
Source Pelsmacker, Patrick De., Geuens, Maggie
and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England Pearson Education
Ltd. pp. 230.
42
Post-testing techniques

• Exposure
• Message processing
• recall
• recognition
• Behaviour

43
Limitations of post-testing
Isolate effect of single ad
Consumers honesty
Message processing and buying
Limitations of post-test
Product involvement
Relevance of recall
Time between exposure and measurement
Source Pelsmacker, Patrick De., Geuens, Maggie
and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England Pearson Education
Ltd. pp. 233.
44
Interactive Marketing Communication
45
Social presence and communications style in
communications media
Personal selling
Higher
Telemarketing
X
Electronic commerce
Social presence
Direct mail
Traditional advertising
Lower
Synchronous
Asynchronous
Communications
Based on Reza Kiami, G. (1998), Marketing
opportunities in the Digital Worls , Internet
Research Electronic Networking Applications and
Policy, 8(2), 185-94. Reproduced with permission
of MCB University Press.
46
Consumer control on contact and content in
communications media
Consumer control of content
Lesser
Greater
Lesser
Direct mail advertising
Telemarketing
Consumer control of content
Personal selling
Electronic commerce
Greater
Based on Reza Kiami, G. (1998), Marketing
opportunities in the Digital World , Internet
Research Electronic Networking Applications and
Policy, 8(2), 185-94. Reproduced with permission
of MCB University Press.
47
Development cycles for websites on the net

• Multinationals
• Information model-- Transaction model
• 1. Information about image and products
• 2. Information-gathering/market research
• 3. Client support/services
• 4. Internal support
• 5. Transactions

• Internet starters
• Transaction model--- Information model
• 1. Transactions
• 2. Client support/services
• 3. Information about image and products
• 4. Information-gathering/market research

Based on Quelch, J.A. and Klein, L.R. (1996).
The Internet and International Marketing ,
Sloan Management Review (Spring), 60-75.
Reproduced with permission of Sloan School of
Management.
48
Business models for websites on the net
Primary consequences for the company
Cost-reduction
Returns incteasing
Internal
Technical, legal and administration support
Managing databases Internal research Internal
reporting
Marketing and sales support information
Customer orientation
Product information Promotion Developing
databases Market research Transactions
Customer service Transactions
External
Based on Quelch, J.A. and Klein, L.R. (1996).
The Internet and International Marketing ,
Sloan Management Review (Spring), 60-75.
Reproduced with permission of Sloan School of
Management.
49
Internet advertising techniques
E-mail
Banners on e-mail
Direct e-mail
Good citizenship
Sponsorship of e-mail newsletter
Classified ads
Banners on chat sites
Adertorials
World Wide Web
Banners
Interstitial
Pushed advertising
Buttons
50
Internet advertising in the future
Purchase related content
Experience rated content
Sponsored content
Internet advertising
Targeted content
Anchor tenancy deals
Based on Cartelliert, C., Rao, V., Parsons, A.
and Zeisser, M. (1997), The Impact of Internet
Advertising, The McKinsey Quarterly, 3, 45-62.
51
Four types of relationship efforts

• Communication
• Differentiation
• Personalising
• Rewarding