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Integrated Marketing Communications: Advertising, Promotions. And Other MarCom Tools

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Title: WHAT INTERNATIONAL MARKETING IS: Author: lindgren Last modified by: Thomson Learning Created Date: 7/25/2002 3:13:39 PM Document presentation format – PowerPoint PPT presentation

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Title: Integrated Marketing Communications: Advertising, Promotions. And Other MarCom Tools


1
  • Integrated Marketing Communications Advertising,
    Promotions. And Other MarCom Tools

2
LEARNING OBJECTIVES
LEARNING OBJECTIVES
Appreciate the variety of marketing
communications tools, and how they work together
to accomplish communication objectives Understand
the nature, importance, and features of
integrated marketing communications Describe the
concept of brand-equity enhancement and the role
of marketing communications in facilitating this
objective
  • Appreciate the variety of marketing
    communications tools, and how they work together
    to accomplish communication objectives.
  • Understand the nature, importance, and features
    of integrated marketing communications.
  • Describe the concept of brand-equity enhancement
    and the role of marketing communications in
    facilitating this objective.

3
LEARNING OBJECTIVES
Comprehend the factors that determine how
different marketing communications elements are
effectively combined Discuss the primary
decisions spheres involved in managing the
marketing communications process Know the major
activities involved in formulating advertising
strategy
  • Comprehend the factors that determine how
    different marketing communications elements are
    effectively combined.
  • Discuss the primary decision spheres involved in
    managing the marketing communications process.
  • Know the major activities involved in formulating
    advertising strategy.

4
LEARNING OBJECTIVES
Recognize the role of sales promotion. Appreciate
the reasons why this form of marketing
communication has experienced rapid growth, and
know the tasks that it can and cannot
accomplish Evaluate the nature and function of
public relations Appreciate sponsorship marketing
and the practices of event marketing and
cause-related marketing
  • Recognize the role of sales promotion, appreciate
    the reasons why this form of marketing
    communication has experienced rapid growth, and
    know the tasks that it can and cannot accomplish.
  • Evaluate the nature and function of public
    relations.
  • Appreciate sponsorship marketing and the
    practices of event marketing and cause-related
    marketing

5
LEARNING OBJECTIVES
  • Understand the role, importance, and growth of
    point-of-purchase communications.

Understand the role, importance, and growth of
point-of-purchase communications
6
THE TOOLS OF MARKETING COMMUNICATIONS
Advertising
Publicity
Personal Selling
MarCom Mix
Sales Promotion
P-O-P
Sponsorship
7
Personal Selling
  • Person-to-person communication in which a seller
    informs and educates prospective customers and
    attempts to influence their purchase choices.

8
THE TOOLS OF MARKETING COMMUNICATIONS
Advertising
Publicity
Personal Selling
MarCom Mix
Sales Promotion
P-O-P
Sponsorship
9
Advertising
  • Nonpersonal communication that is paid for by an
    identified sponsor and involves either mass
    communication and other media or
    direct-to-consumer communication via direct mail.

10
THE TOOLS OF MARKETING COMMUNICATIONS
Advertising
Publicity
Personal Selling
MarCom Mix
Sales Promotion
P-O-P
Sponsorship
11
Publicity or Public Relations
  • Non-personal communication to a mass audience
    that is not directly paid for by the company.

12
THE TOOLS OF MARKETING COMMUNICATIONS
Advertising
Publicity
Personal Selling
MarCom Mix
Sales Promotion
P-O-P
Sponsorship
13
Sales Promotion
  • All the marketing activities that attempt to
    promote immediate sales of a product.

14
THE TOOLS OF MARKETING COMMUNICATIONS
Advertising
Publicity
Personal Selling
MarCom Mix
Sales Promotion
P-O-P
Sponsorship
15
Sponsorship
  • The practice of promoting the interests of a
    company and its brands by associating the company
    with a specific event.

16
THE TOOLS OF MARKETING COMMUNICATIONS
Advertising
Publicity
Personal Selling
MarCom Mix
Sales Promotion
P-O-P
Sponsorship
17
Point-of-Purchase (P-O-P)
  • Includes all signage (displays, posters, signs,
    shelf cards, and other visual materials) designed
    to influence buying decisions at the point of
    sale.

18
KEY PARTICIPANTS IN MARKETING COMMUNICATIONS
  • Integrated Marketing Communication (IMC)
  • A system of managing and integrating marketing
    communication elements with the result that all
    elements adhere to the same message

19
Key Aspects of Integrated Marketing Communications
Starts with the Customer
  • Requires careful study of customers
    communication usage pattern and information needs
  • Communication media (contact points) is dictated
    by the customers needs and behavior
  • Involves an outside-in approach to decision making

20
Key Aspects of Integrated Marketing Communications
Use Any Form of Relevant Contact
  • Use all forms of communication and all sources of
    contact
  • Communication media (contact points) is dictated
    by the customers needs and behavior
  • Involves utilization of communication outlets
    that are appropriate for reaching the target
    audience

21
Key Aspects of Integrated Marketing Communications
Achieve Synergy
  • Another key aspect of IMC is the need for synergy
  • All communication elements should convey the
    same, unified message, otherwise consumers will
    be confused

22
Key Aspects of Integrated Marketing Communications
Build Relationships
  • Successful marketing requires building a
    relationship between the brand and the customer
  • Entails repeat purchase and loyalty
  • More profitable to build and maintain
    relationships than to continuously search for
    new customers

23
Key Aspects of Integrated Marketing Communications
Affect Behavior
  • More than awareness or attitude changes but must
    include behavioral changes
  • Moving people to action

24
Key Changes in MarCom Practice Resulting from the
IMC Thrust
1. Reduced Dependence in Mass-Media Advertising
2. Increased reliance on highly
targeted communications methods
3. Expanded efforts to assess return on
investment
25
THE MARCOM CHALLENGE ENHANCE BRAND EQUITY
  • Figure 12.1

Brand Knowledge
26
Brand Equity
  • A brand possesses equity to the extent that
    consumers are familiar with the brand and have
    stored in memory favorable, strong, and unique
    brand associations

Brand Awareness
Brand Image
27
Brand Awareness
  • Whether a brand name comes to mind when consumers
    think about a particular product category and the
    ease with which the name is evoked

Brand Image
Brand Awareness
28
Brand Image
  • The associations that come to mind when
    contemplating a particular brand
  • Brand association - the particular thoughts and
    images that a consumer has about a brand

Brand Image
Brand Awareness
29
DETERMINING AN APPROPRIATE MIX OF IMC TOOLS
  • Who is the intended market?
  • Business-to-business market or consumer market?
  • Understanding of the products target market

Market
Objectives
Nature of the Product
Life-cycle Stage
Competitive Actions
Budget
Push vs. Pull
30
DETERMINING AN APPROPRIATE MIX OF IMC TOOLS
  • What are the objectives?
  • Do we want to create product category wants or
    brand preference?

Market
Objectives
Nature of the Product
Life-cycle Stage
Competitive Actions
Budget
Push vs. Pull
31
The Hierarchy of Effects
Purchase
  • Insert Figure 12.2

Purchase Intention
Attitude
Beliefs/Knowledge
Awareness
Unawareness
32
DETERMINING AN APPROPRIATE MIX OF IMC TOOLS
  • What is the nature of the product?
  • Business-to-business products versus consumer
    goods

Market
Objectives
Nature of the Product
Life-cycle Stage
Competitive Actions
Budget
Push vs. Pull
33
DETERMINING AN APPROPRIATE MIX OF IMC TOOLS
  • What is the product life-cycle stage?
  • New product versus a mature product

Market
Objectives
Nature of the Product
Life-cycle Stage
Competitive Actions
Budget
Push vs. Pull
34
DETERMINING AN APPROPRIATE MIX OF IMC TOOLS
  • What are competitors doing?
  • Does the competition allow trade allowances and,
    if so, how large?

Market
Objectives
Nature of the Product
Life-cycle Stage
Competitive Actions
Budget
Push vs. Pull
35
DETERMINING AN APPROPRIATE MIX OF IMC TOOLS
  • What is the available budget for promotion?
  • Do we emphasize personal selling or mass
    advertising?

Market
Objectives
Nature of the Product
Life-cycle Stage
Competitive Actions
Budget
Push vs. Pull
36
DETERMINING AN APPROPRIATE MIX OF IMC TOOLS
  • Will a push or pull strategy be most effective?
  • Trade allowances and personal selling versus
    advertising and sales promotion
  • Combination of push and pull technique

Market
Objectives
Nature of the Product
Life-cycle Stage
Competitive Actions
Budget
Push vs. Pull
37
Push vs. Pull Strategy
VS
38
Push Strategy
  • Utilizes aggressive trade allowances and personal
    selling to obtain wholesaler and retailer
    distribution
  • The product is pushed through the channel

39
Pull Strategy
  • Encourages consumer demand for the product to
    obtain distribution
  • Use of heavy advertising and high value coupons

40
MANAGING THE MARCOM PROCESS
Selecting Target Market
Establishing Objectives
Formulating a Positioning Strategy
Setting Budget
  • Formulating and Implementing
  • Message and Media Strategies

Evaluating Program Effectiveness
41
MANAGING THE MARCOM PROCESS
Selecting Target Market
  • Allows marketing communicators to more precisely
    deliver messages to the target group
  • Attempts to avoid wasting money outside the
    target market
  • Identify potential target markets in terms of a
    combination of characteristics that will cause
    these consumers to act in a similar fashion
    (demographics, lifestyles and so on)

42
MANAGING THE MARCOM PROCESS
Establishing Objectives
  • Objectives must fit within the companys overall
    corporate and marketing objectives
  • Must also be realistic and stated in quantitative
    terms with the amount of projected change and the
    time duration specified

43
MANAGING THE MARCOM PROCESS
Formulating a Positioning Strategy
  • Essential activity in developing successful
    MarCom programs
  • Clear statement defining to whom a brand should
    be targeted, what should be said about the brand,
    and what media and message vehicles should be used

44
MANAGING THE MARCOM PROCESS
Setting Budget
  • Top-down budgeting (TD) senior management
    decides how much each subunits receives
  • Bottom-up budgeting (BU) managers of subunits
    determine how much is needed and the amounts are
    then combined to establish the total budget
  • Bottom-up/top-down (BUTD)
  • Top-down/bottom-up (TDBU)
  • BUTD process is the most frequently used

45
MANAGING THE MARCOM PROCESS
Formulating and Implementing Message and Media
Strategies
  • Make a decision regarding the message to be
    communicated and the media within which the
    message will be sent
  • Many different alternatives of media are
    available and each has a unique rate of
    effectiveness as well as cost

46
MANAGING THE MARCOM PROCESS
Evaluating Program Effectiveness
  • Evaluation information will be critical in
    creating future programs and taking corrective
    action when necessary
  • Advertising is more difficult to measure
  • Communication outcomes changes in consumers
    awareness of the advertised brand, knowledge of
    copy points, or attitudes toward the brand
    (assess advertising effectiveness)

47
ADVERTISING
  • Advertising adds value to brand by influencing
    consumers perception
  • Effective advertising can lead to increased
    market share and greater profitability
  • U.S., the biggest advertising spender in the
    world

48
ADVERTISING STRATEGY
Budgeting
Establishing the Brand Positioning
Objective Setting
Creating Advertising Messages
Assessing Advertising Effectiveness
Selecting Advertising Media
49
ADVERTISING STRATEGY
Objective Setting
  • Reasons for setting advertising objectives
  • Make top management to agree upon the course of
    advertising
  • Guide the budgeting, message creating, and media
    selection
  • Provide standards against which results can be
    measured

50
ADVERTISING STRATEGY
Budgeting
  • The most difficult advertising decision because
    it is hard to determine precisely how effective
    advertising has been or might be in the future
  • The sales-response to advertising is influenced
    by a multitude of factors

51
Budgeting for Advertising
  • Promotional budget set as a percentage of past or
    anticipated sales

Percent of Sales
Objective Task
52
Budgeting for Advertising
  • Objectives specified
  • Promotional elements identified
  • Budget is determined by accumulating anticipated
    costs among the various promotional elements

Percent of Sales
Objectives Task
53
ADVERTISING STRATEGY
Establishing the Brand Positioning
  • Establishing how the brand is to be thought of by
    members of the target market and how the brand is
    to be perceived relative to competitive brands in
    the product category

54
ADVERTISING STRATEGY
Creating Advertising Messages
  • Advertisers use a vast array of techniques to
    present their brands in the most favorable light
    and persuade customers to contemplate purchasing
    these brands

55
Creating Advertising Messages
56
Creating Advertising Messages
57
Creating Advertising Messages
58
Creating Advertising Messages
59
Creating Advertising Messages
60
Creating Advertising Messages
61
Creating Advertising Messages
62
Creating Effective Messages
  • Extends from sound marketing strategy
  • Takes the consumers view
  • Persuasive
  • Finds a unique way to break through competitive
    clutter
  • Never promises more than it can deliver
  • Prevents the creative idea from overwhelming the
    strategy

63
Creative Campaigns
64
Creative Campaigns
65
Creative Campaigns
66
Creative Campaigns
67
Creative Campaigns
68
Creative Campaigns
69
Creative Campaigns
70
Creative Campaigns
71
Creative Campaigns
  • Insert Figure 12.5

72
ADVERTISING STRATEGY
Selecting Advertising Media
  • Outstanding message execution is to no avail
    unless the message is delivered to the right
    customers at the right time, and with sufficient
    frequency

73
Selecting Advertising Media
Selection of Target Audience
Specification of Media Objectives
Selection of Media
Purchase of Media
74
Selecting Advertising Media
Selection of Target Audience
  • Must be clearly pinpointed
  • Based on geographic factors, demographics,
    product-usage concerns, psychographics

75
Selecting Advertising Media
Specification of Media Objectives
  • Reach
  • Frequency
  • Continuity
  • Cost

76
Selecting Advertising Media
Selection of Media
  • Television
  • Radio
  • Magazines
  • Newspapers
  • Internet

77
Selecting Advertising Media
  • Insert Figure 12.6

78
Selecting Advertising Media
Purchase of Media
Cost
___________
CPM
Audience Size
GRPReachFrequency
  • Cost per thousand (CPM)
  • Gross rating points (GRP)

79
ADVERTISING STRATEGY
Assessing Advertising Effectiveness
  • Measure magazine readership
  • Simmons Market Research Bureau(SMRB) and
    MediaMark Research, Inc. (MRI)
  • Measure television audience size
  • Nielsen, and Arbitron
  • Others
  • Starch Readership Service, Burke Day-After Recall

80
Direct Advertising
  • Database Marketing Offers
  • Addressability
  • Measurability
  • Flexibility
  • Accountability

81
SALES PROMOTION
  • The use of any incentive by a manufacturer to
    induce the trade (wholesalers and retailers) or
    consumers to buy a brand and to encourage the
    sales force to aggressively sell it


82
Factors Giving Rise to the Growth of Sales
Promotion
  • Balance of power transfer
  • Increased brand parity and price sensitivity
  • Reduced brand loyalty
  • Splintering of the mass market reduced media
    effectiveness
  • Short-term orientation corporate reward
    structure
  • Trade consumer responsiveness

83
Sales Promotions Capabilities
  • Facilitate the introduction of new products
  • Obtain trial purchases
  • Stimulate sales force enthusiasm
  • Invigorate sales of a mature brand
  • Increase on- and off-shelf merchandising space

84
Sales Promotions Capabilities
  • Neutralizing competitive advertising
  • Encouraging repeat purchases
  • Increase brand usage by loading consumers
  • Preempting competition by leading consumers
  • Reinforcing advertising

85
Sales Promotion Roles and Objectives
  • Introduce new or revised products
  • Increase distribution
  • Build retail inventories
  • Maintain shelf space
  • Obtain display space
  • Reduce excess inventory
  • Induce cooperative advertising
  • Counter competition
  • Sell more to final consumers

86
PUBLIC RELATIONS
Proactive MPR
  • Dictated by a companys marketing objectives
  • Offensively oriented
  • Opportunity-seeking rather than problem-solving
  • Another tool for promotion of companys products
    and services

87
PUBLIC RELATIONS
Reactive MPR
  • Undertaken as a result of external pressures
  • Deals with changes that have negative
    consequences
  • Attempts to repair a companys reputation,
    prevent market erosion, and regain lost sales

88
SPONSORSHIP MARKETING
  • Avoid the clutter
  • Help companies respond to consumers changing
    media habits
  • Help companies gain the approval of various
    constituencies
  • Enable marketers to target their communication
    and promotional efforts to specific geographic
    regions and/or to specific lifestyle groups

89
SPONSORSHIP MARKETING
Event Marketing
  • Form of a brand promotion that ties a brand to a
    meaningful cultural, social, athletic, or other
    type of high-interest public activity
  • Separate from advertising, sales promotion,
    point-of-purchase merchandising, or public
    relations

90
SPONSORSHIP MARKETING
Cause-Related Marketing
  • Narrow aspect of overall sponsorship
  • Combination of PR, sales promotion and corporate
    philanthropy
  • Linked to consumers engaging in
    revenue-producing exchanges with the firm

91
SPONSORSHIP MARKETING
Cause-Related Marketing
  • Stride Rite

92
POINT-OF-PURCHASE COMMUNICATIONS
Consumers
Retailers
Manufacturers
  • P-O-P delivers useful information and simplifies
    the shopping process by setting products apart
    from similar items

93
POINT-OF-PURCHASE COMMUNICATIONS
Retailers
Consumers
Manufacturers
  • Increased sales
  • Enables retailers to better organize shelf space
    and improve inventory control, volume, and
    profitability

94
POINT-OF-PURCHASE COMMUNICATIONS
Manufacturers
Consumers
Retailers
  • Calls attention to special offers and helps
    stimulate impulse purchasing
  • Serves to complement the job already performed by
    advertising before the consumer enters a store

95
Supplemental Material
96
Communication Process
Feedback
97
Communication Process
Message
Channel
Receiver
Encoding
Decoding
Feedback
  • The marketer
  • The sender of the message

98
Communication Process
Message
Channel
Receiver
Decoding
Source
Feedback
  • Designing of advertisements, sales presentations,
    P-O-P displays, etc.
  • Translation of the message into symbolic form

99
Communication Process
Channel
Receiver
Encoding
Decoding
Source
Feedback
  • Actual advertisement that contains the intended
    message
  • Symbolic expression of the senders thoughts

100
Communication Process
Receiver
Message
Encoding
Decoding
Source
Feedback
  • Television, radio, print media, telephone, direct
    mail, etc.
  • Path through which the message moves to get to
    the receiver

101
Communication Process
Message
Channel
Encoding
Decoding
Source
Feedback
  • Person or groups of persons for whom the message
    is intended

102
Communication Process
Receiver
Message
Channel
Encoding
Source
Feedback
  • Process receiver uses to interpret the meaning of
    the message

103
Communication Process
Channel
Receiver
Message
Encoding
Decoding
Source
  • Marketing research, market share changes, sales
    reports
  • Attitude changes, purchase or non-purchase
  • Gauge of effectiveness of communication techniques

104
Communication Process
Message
Channel
Receiver
Encoding
Decoding
Source
Feedback
  • Interference at some stage in communications
    process
  • Competitive promotional messages
  • Misinterpretation of message or wrong receiver

105
Functions Of Advertising
Inform
Persuade
Remind
Add Value
Assist Other Efforts
106
Functions Of Advertising
Inform
Persuade
Remind
Add Value
Assist Other Efforts
107
Functions Of Advertising
Inform
Persuade
Remind
Add Value
Assist Other Efforts
108
Functions Of Advertising
Inform
Persuade
Remind
Add Value
Assist Other Efforts
109
Functions Of Advertising
Inform
Persuade
Remind
Add Value
Assist Other Efforts
110
Communication Objectives
Create Brand Awareness
Build Products Wants
Enhance Attributes Intentions
Facilitate Purchase
111
Communication Objectives
  • Marketers must first build product category wants
    or primary demand

Build Products Wants
Create Brand Awareness
Enhance Attributes/Intentions
Facilitate Purchase
112
Communication Objectives
  • After a product category is established,
    marketers attempt to create secondary demand for
    their specific brand

Build Products Wants
Create Brand Awareness
Enhance Attributes/Intentions
Facilitate Purchase
113
Communication Objectives
  • After creating secondary demand, marketers want
    to influence attitudes and intentions

Build Products Wants
Create Brand Awareness
Enhance Attributes/Intentions
Facilitate Purchase
114
Communication Objectives
  • Marketing communication variables can facilitate
    purchase and overcome other marketing mix
    variables

Build Products Wants
Create Brand Awareness
Enhance Attributes/Intentions
Facilitate Purchase
115
Hierarchy-of-Effects Models
Specific Stage
Summary Term
Purchase
Connotation
Purchase Intention
Affect
Attitude
Beliefs/Knowledge
Cognition
Awareness
Unawareness
Precognition
116
Methods Of Setting Promotions Budgets
Meeting Competition
Past Sales
  • Match competitors actions
  • Meeting competitors budget doesnt allow firm to
    meet its own objectives

Task/Objective
117
Methods Of Setting Promotions Budgets
Meeting Competition
Past Sales
Task/Objective
  • Sets promotional budget based on past or
    anticipated sales
  • Limited by forecast reliability

118
Methods Of Setting Promotions Budgets
Meeting Competition
Past Sales
Task/Objective
  • Objectives specified
  • Promotional elements identified
  • Budget determined by costs needed to reach
    objectives
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