Ch19 Designing and Managing Integrated Marketing Communications Dr. A Haidar at FALL 17-18

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1. What is the role of marketing communications? e n (p. 580)
u d
2. What is the marketing communications
S t mix? (p. 581)
How do marketing communications a r work? (p. 583)
3.
i d
4. What are the major steps Hain developing effective
A .
communications? (p.r. 586)
r D
How should the communications mix be set and
5.
f o
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evaluated? (p. E595)
C T
What is an integrated marketing communications
6. I
R 599)
program?ST(p.
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Dr A Haidar © FALL 2018-2017 2
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IMC is a way of looking at St
a r
the whole marketing aid
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process from the viewpoint H
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of the customer. r D
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Dr A Haidar © FALL 2018-2017 19-3
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 Companies must communicate with @ present and
t s
n
potential stakeholders, and thedegeneral public.
t u
S r
a
d to communicate but
 The question is not whether
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rather: . H
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 what to say, Dr
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 how to say it, fo
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 to whom, and
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 how often. T
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 e n
Marketing communications drepresent the “voice”
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of the brand S r
d a
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 Are the means by which . H it can establish a
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dialogue and build r
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t s by which firms
 Marketing communications are means e n
u dremind consumers,
attempt to inform, persuade, and
S t
directly or indirectly, about the r
a products and brands they
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sell. .H
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It works by showingfo consumers how and why a product is
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used, by whom,TEwhere, and when.
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 Marketing communications allow companies e n to link their
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brands to other people, places, events, brands,
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experiences, feelings, and things.
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 Communications contribute .r A to brand equity, by
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establishing the brand fo in memory and creating a brand
image, as well as EDdrive sales and even affect shareholder
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value R I
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 Technology and other factors have e n profoundly
u d
changed the way consumers Sprocess t communications.
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 Powerful smart phones,.
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 broadband and wireless
Dr Internet connections, and
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 ad-skipping digitalfo video recorders (DVRs)
 Commercial clutter ED is rampant.
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R effectiveness of the mass media.
have eroded Tthe
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 In this new communications tenvironment, u d
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advertising is a central element d a but not the only one
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a one in terms of building
or even the most important
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brand equity and driving . A sales.
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3. Events and d a7. Word-of-mouth
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experiences . H marketing
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4. Public relationsr.and 8. Personal selling
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publicity fo
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These tools
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message and achieve a strategic positioning
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Advertising
• Paid
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• Non personal, well known sponsor
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• Company’s sponsored activities
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Events & Experience
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• Online activities
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Sales promotion r S
• Short-term incentives
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• Personal presentation
Personal selling A•. Purpose is to make sale & build relationships
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Public relations fo • Publicity and corporate image management
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Word ofICmouth • People to people communication
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E S • Direct connections with consumers
R marketing • Purpose obtain immediate response & build
Direct
Dr A Haidar © FALL 2018-2017 relationships 12
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▪ Advertising: Any paid form of non-personal presentation @ and promotion of ideas,
goods, or services by an identified sponsor via print t s media (newspapers and
e n
magazines), broadcast media (radio and television),
u d network media (telephone,
cable, satellite, wireless), electronic mediaSt(audiotape, videotape, videodisk, CD-
a r
ROM, Web page), and display media (billboards,
i d signs, posters).
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▪ Sales promotion: short-term incentives . to encourage trial or purchase of a
r .
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product or service (such as samples, coupons, and premiums), trade promotions ,
allowances, contests . for
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▪ Events and experiences—Company-sponsored activities and programs designed
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to create daily orRspecial brand-related interactions with consumers, including
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sports, arts,Eentertainment, and cause events as well as less formal activities.
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@ internally to employees
▪ Public relations: A variety of programs directed t s
of the company or externally to consumers, e n other firms, the
u d
S t
government, and media to promote or protect a company’s image or its
individual product communications.ar
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▪ Online and social media marketing: . Online activities and programs
designed to engage customers .r A or prospects and directly or indirectly
r Dimage, or elicit sales of products and
raise awareness, improve
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services.
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C A special form of online marketing that places
▪ Mobile marketing: RI
communicationsS T on consumer’s cell phones, smart phones, or tablets.
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▪ Direct and database marketing: mail, telephone, fax, e-mail, or
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Internet to communicate directly with ornsolicit response or
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dialogue from specific customers andtuprospects.
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▪ Personal selling: Face-to-face interaction with one or more
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prospective purchasers for the
. A purpose of making presentations,
answering questions, and r
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▪ The product’s stylingED and price, the shape and color of the package,
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C manner and dress, the store décor, and the
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the salesperson’s
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company’s stationery all communicate something to buyers.
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I Every brand contact delivers an
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impression that can strengthen or
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Advertising n
Sales Promotion
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 Print and broadcast ads d
 Contests,
u
games,
 Packaging inserts S t
sweepstakes
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 Motion pictures
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 Brochures and booklets
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 Posters A .  Trade shows, exhibits
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 Billboards D  Coupons
 POP displays for  Rebates
 Logos
ED  Entertainment
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 VideotapesT  Continuity programs
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The Macro-model t s
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Elements in the Communications Process
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Buyer passes through cognitive, e n
affective, and
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behavioral stages. rS a
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 “learn-feel-do” A .
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 “do-feel-learn,”
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“learn-do-feel,”
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 “learn-feel-do” sequence is appropriate
e n when the
u d with a product category
audience has a high involvement
S t
perceived to have high differentiation. a r
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.
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 “do-feel-learn” is relevant
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involvement butD perceives little or no differentiation
within the product T E category.
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 “learn-do-feel” is relevant when S t the audience has low
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involvement and perceivesidlittle differentiation within
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the product category. .
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 By choosing theDright sequence, the marketers can do a
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better job ofICplanning communications.
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Marketing communication activities S t must be integrated
to deliver a consistent message a r and achieve the
i d
strategic positioning desired. Ha
.
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 Marketers need foto assess which experiences and
ED
impressionsTwill have the most influence at each
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stage of the
T R buying process.
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To increase the odds of success S t for a communications
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campaign, marketers must idattempt to increase the
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likelihood that each step. occurs. the ideal ad campaign
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would ensure that: Dr
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1. The right consumer is exposed to the right message @ at the right place
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and at the right time.
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The ad causes the consumer to pay attention u d but does not distract
t
2.
from the intended message.
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3. The ad properly reflects the consumer’s i
athe brand. level of understanding of and
behaviors with the product and . H
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. the brand in terms of desirable and
4. The ad correctly positions
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deliverable points-of-difference and points-of-parity.
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The ad motivates consumers to consider purchase of the brand.
The ad creates C T
strong brand associations with all these stored
6.
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communications
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are considering making a purchase.
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Identify target audience t s
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Determine objectives
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Design communications d
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Select channels
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C T Decide on media mix
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The process starts with a clear etarget audience in
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mind. S t
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 Potential buyers of the company’s i d products
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 Current users, deciders, A . or influencers
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Individuals, groups, r D

fo or particular publics
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 General publicT
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Identifying the Target Audience
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What will How it will r
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 Image analysis can be conducted n
e to profile the target
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audience in terms of brand knowledge to provide further
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.r A analysis is assessing the current
 A major part of audience
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image of the company,
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 Image is theCTset of beliefs, ideas, and impressions a
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Rossiter and Percy identify four possible objectives:
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t u
 Category need
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 Brand awareness a i
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Brand attitude (problemAsolution method)
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Brand purchase intention
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 The most effective
ED communications often can
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IC
achieve multiple objectives.
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 Formulating the communications to ts @
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achieve the desired response requires u d
t
answering three questions: ar S
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i. What to say (message strategy)
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ii. How to say it (creativeA.strategy)
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iii. Who should say it r(message source).
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 Global adaptation C T
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 In determining message strategy, S t management
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searches for appeals, themes, i d or ideas that will
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tie into the brand positioning and help to
.
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establish points-of-parity
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or points-of-difference.
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 Some of these strategies may @
 Othertsstrategies may relate to
be related directly to product e n extrinsic considerations:
more
u d
or service performance: t Contemporary
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 Quality
a  Popular
d  Traditional
 Economy a i
 Value of the brand . H
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John MaloneyD saw buyers as expecting one
o
of fourf types of reward from a product:
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T Rational
I C Sensory
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 Social
R  Ego satisfaction
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 Creative strategies areahow id marketers translate
their messages intoAspecific .H communication.
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 Communication effectiveness t sdepends on how a
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message is being expressed u d as well as on its
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content. a r
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 An ineffective communication . may mean that the
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wrong message o
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was expressed
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 Creative strategies can be broadly e classified as n
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either “informational” or transformational appeals.
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 An informational appeal
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 Excedrin ad
elaborates on product or u d
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service attributes or benefits. ar S
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 Examples are: .A
 Problem solving adsDr
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 Product demonstration ads
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 Product comparison
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 TestimonialsIC
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 Informational appeals assume a r very rational
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processing of the communication on the part of the
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consumer—logic and r. reason “rule.” D
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 There are three types of informational e n appeals:
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i. Conclusion drawing
S t
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ii. One-versus-two-sided darguments
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iii. Order of argument presentations
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 Each of these appeals fo has their supporters and
distracters and EDdepends heavily upon the target
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audience forRI
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 A transformational appeal elaborates
S t on a non-
product-related benefit or a r image. It might depict:
i d
 What kind of person uses Ha a brand active, youth
A . results from using the brand
 What kind of experience
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 Transformational ED appeals often attempt to stir up
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emotions RthatIC will motivate purchase.
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 Communicators use negative appeals to do or stop doing
@
things such as t s
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 Fear
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 Guilt S t
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 Shame i d
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 Messages are most persuasive A . when they are moderately
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discrepant with what the
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 Communicators also
ED use positive emotional appeals such as:
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 Humor TR
 Love E
S  Joy
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 Messages delivered by attractive@or popular
t s
sources can potentially achieve e n higher attention
u d
and recall. S t
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 What is important is . the
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 The three factors fo underlining credibility are:
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 Expertise T
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 Trustworthiness
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 Likability
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 The most highly credible source e n would be a
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person who scores high S t on all three
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dimension – a i d
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 candor, A
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 humor, and or D
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 naturalness. ED
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Message Source Celebrities & Athletes @
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Dr A Haidar © FALL 2018-2017 Michelle wie Steffi Graf 45
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An effective spokesperson is credible @
and a good fit for the product and the t s
en
target. People can relate to the
u d
spokesperson or look up to them as an
S t
aspirational role model.
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An ineffective spokesperson might be
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someone who is overused (perhaps
A . LewisHamiltonNeil
Tiger Woods). In addition, many r .
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companies choose not to use rsomeone
who is high risk for improperfoor illegal
behavior. Kate Moss was EDdismissed by
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H&M, Channel & Burberry
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kate moss
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 Selecting efficient channels to carry t s the message
e n
becomes more difficult as channelsu d of communication
t
S cluttered.
become more fragmented and a r
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 Personal channels A .
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Non-personal channels
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 IC
Many sub-channels (Integration of channels)
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Personal communication involves twodor n
e more people
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communicating directly with each other
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Face to face
Phone .r A
Mail r D
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 Personal communication .
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effectiveness through Dr individualized presentation and
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Advocate
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Advocate channels consist of ecompany salespeople
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contacting buyers in the target market.
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Expert channels consistai of independent experts
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A target buyers.
making statements .to
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 Social channelsfoconsist of neighbors, friends,
ED
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family members, and associates talking to target
buyers. TRI
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 Personal influence carries especially
e n great weight in
u d
two situations: S t
a r
d i
a
Hexpensive, risky, or purchased
 With products that are
A .
infrequently. r .
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 Where the product f o suggests something about the
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user’s status C T
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Non-personal communication i d
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is media that carry messages
A . without personal
contact or feedback— r . including major media,
D
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atmospheres, and f o
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directly T
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Major media
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 print: newspaper, .magazine, A . direct mail
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 Broadcast: Radio, o r Tv
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 Display: billboard,ED signs, posters
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 online media:
RI email, website, social networks
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Non-Personal Communication
r Channels
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Events are staged occurrences
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messages to targetr.audiences
 Press conferencesr D
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 Grand openings
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 Exhibits ICT
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Public toursR
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Events can create attention, though t s
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whether they have a lasting effect
u d
on brand awareness, knowledge, orSt
a r
preference will vary id a
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Citibank’s bike sponsorship in New
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kinds of dividendsRfor the company
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▪ @ more effective
Although personal communication istsoften
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than mass communication, mass media might be the major
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means of stimulating it. rS a
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▪ Ha
Mass communications affect personal attitudes and behavior
.
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▪
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r
The influence of mass media
fo as marketers have supposed.
powerful, and automatic
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▪ I
Mass communicators should direct messages specifically to opinion
TRthem carry the message to others.
leaders and let
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ED
C T Objective-and-Task
I
S TR
R E
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@
ts n
Total for Ad Age's First Ranking of 100 Biggest Spenders: $241B
d e
t u
S 2015 total worldwide
Rank ar
Company
d
a i advertising spending
. H
.r A
4 Volkswagen $6.6 billion
5
r D
Comcast Corp. $5.9 billion
o
f World's Largest
ED Advertisers: Top 5 $40.1 billion
C T
I
TR
World's Largest
E S Advertisers: Top 100
$240.5 billion
R
1 8
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L L
FA
@
t s
 What they think they can afford e n
u d
 Ignores the role of marketing S t communications as
a r
an investment and their i d immediate impact on sales
Ha
volume A .
r .
r D
 Uncertain annual fo budget, which makes long-range
ED
planning difficult
C T
RI
S T
R E
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L L
FA
@
ts anticipated sales.
▪ specified percentage of currentenor
u d
t S
i. Views sales as the determiner a r not result of
i d
communications. Ha
A .
ii. Leads to a budget Dset r. by the availability of funds rather
o r
f
than by market opportunities.
ED
iii. Dependence C Ton year-to-year sales fluctuations interferes
RI
S T
with long-range planning.
R E
1 8
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FA
@
▪ achieve share-of-voice parity witht s competitors.
en d
t u
r S
▪ No grounds for believing competitors a know better.
i d
▪ Company reputations, resources, Ha opportunities, and
.
objectives differ so much..r A
r D
▪ No evidence thatfobudgets based on competitive parity
ED
discourage communication wars.
C T
RI
S T
R E
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FA
@
t s
e n

u d
Budgets developed by defining:
S t
 specific objectives, a r
d i
 identifying the tasks that a
H must be performed to achieve
.
these objectives, and .r A
r D
 estimating the fcosts o of performing them.
ED
C T
RI
S T
R E
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FA
 Dr. Pepper Snapple wants to introduce@a new natural energy
t s
drink, called Sunburst e n
u d
1. Establish the market share goal
S t
a r
2. Determine the percentage that id should be reached
Ha
3. Determine the percentage of . aware prospects that should be
persuaded to try the brand.r A
r D
4. Determine the number fo of advertising impressions per 1% trial rate
ED
T
5. Determine the number of gross rating points that would have to be
purchased IC
T R
E
6. Determine S the necessary advertising budget on the basis of the
R
average cost of buying a GRP
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@
t s
en
u d
S t
a r
id
a
.H
.r A
rD
fo
ED
C T
I
S TR
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FA
@
t s
n
 Companies must allocate their marketing communications
e
budget over the eight major modes d
u of communication
S t
 advertising,
a r
i d
 sales promotion, a
 events and experiences, . H
. A

Dr
public relations and publicity,
o r marketing,
 online and social mediaf
 mobile marketing,
ED
C T

I
direct and database
R
marketing, and
 the sales Tforce.
E S
R
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17-
L L
FA
@
t s
en
u d
S t
a r
personal selling id advertising
a
.H
.r A
rD
fo
ED
C T
I
S TR
R E
advertising
door-to-door sales
1 8
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FA
@ buyers.
ts
▪ Advertising reaches geographically dispersed
n
d e
u
▪ build up a long-term image for a product (Coca-Cola
t ads) .
S
ar forms such as newspaper do not).
▪ advertising require a large budget, (other
d
a i
▪ H
The mere presence of advertising. might have an effect on sales:
.r A
 Advertising permits the seller
r D to repeat a message many times.
f o
 D
Advertising provides opportunities
E
for dramatizing the company and its
brands and productsTthrough the artful use of print, sound, and color.
I C

R
The advertiser Tcan choose the aspects of the brand and product on which to
E S
R
focus communications.
1 8
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L L
FA
@
▪ sales promotion tools : coupons, contests, t spremiums, draws a
e n
stronger and quicker buyer response,tincludingud short-run effects
r S
▪ a
i d
▪ Ability to be attention-getting: HaThey draw attention and may lead
A .
.
the consumer to the product.
r
r D
▪ Incentive—They incorporatefo some concession, inducement, or contribution
D
that gives value to theEconsumer.
C T
I
▪ Invitation—TheyTRinclude a distinct invitation to engage in the transaction now.
E S
R
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FA
▪ Events and experiences offer many advantages
@ as long as
t s
en
they have the following characteristics:
d
t u
r S
▪ Relevant: A well-chosen event ordexperience a can be seen as highly
a i
relevant because the consumer
. H is often personally invested in the
outcome. . A
Dr
r
o real-time quality, events and experiences
▪ Engaging: Given their flive,
ED
are more actively Tengaging for consumers.
I C
T R
S are typically an indirect soft sell
▪ Implicit: Events
E
R
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FA
@
▪ Public Relations and Publicity , can be t s extremely effective,
e n
ud
especially if a company needs to tchallenge consumers’
misconceptions. r S
a d
▪ High credibility—News storiesHand i
a features are more authentic and
credible to readers than ads. A .
r .
▪ Ability to reach hard-to-find r D buyers—Public relations can reach
f o
prospects who preferD to avoid mass media and targeted
promotions. T E
I C
T R
▪ Dramatization—Public relations can tell the story behind a
E S
company,Rbrand, or product.
1 8
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L L
FA
@
▪ Online marketing and messages can ntake ts many forms to
d e
interact with consumers when they t u are in active search mode
r S for something to do.
or just browsing and surfing online
a d
a i
▪ Rich: Much information or entertainment. H can be provided—as much or
as little as a consumer .r A
might want.
r D
▪ Interactive: Information ocan be changed or updated depending on the
f
person’s response.
ED
▪ Up to date—A message C T
R I can be prepared very quickly and diffused
through Tsocial media channels.
E S
R
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L L
FA
@
t s
▪ Mobile marketing has three distinguishing
en
characteristics:
u d
St
▪ Timely—Mobile communications can a r be very time-sensitive and
i d
reflect when and where aa consumer is.
. H
▪ Influential—Information received .r A or obtained via a smart phone can
reach and influence r D consumers as they are making a purchase
f o
decision.
ED
▪ Pervasive—ConsumersC T typically carry their smart phones
I
TR so mobile communications are at their fingertips.
everywhere,
S
R E
1 8
17-
L L
FA
@
▪ Direct and database marketing have t s
e n three noteworthy
u d
characteristics: t S
▪ Personal—Personal facts, opinions, r
a and experiences can be stored in
i d
massive databases and incorporated Ha into personal messages.
A .
▪ Proactive—A direct marketing r . piece can create attention, inform
r D
consumers, and include fo a call to action.
ED
▪ Complementary—Product
T information can be provided that helps
I Ccommunications, especially in terms of e-
R
other marketing
T
commerce.ES
R
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FA
@
▪ Personal selling is the most effectiventtools at later stages of
the buying process, particularly in d e
t u building up buyer
r
preference, conviction, and action.S
a d
i
▪ Customized—The message canHabe designed to appeal to any
individual. A .
r .
▪ Relationship-oriented—Personal r D selling relationships can range
f o
from a matter-of-fact
ED selling relationship to a deep personal
friendship. C T
RI
S T
▪ Response-oriented—The buyer is often given personal choices and
E
R to directly respond.
encouraged
1 8
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@
t s factors in
 Companies must consider several e n
u d
S t
developing their communications mix:
a r
d i
i. type of product market, H a
.
ii. Consumer readiness .r A to make a purchase, and
r D
iii. stage in the product fo life cycle.
ED
C T
RI
S T
R E
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FA
@
t s
Type of product market, e n
u d comparatively more on
 Consumer marketers tend to spend
S t
sales promotion and advertising; a r
i d
 business marketers tend to a
H spend comparatively more on
.
personal selling. .r A
r D
 In general, personalfo selling is used more with complex,
ED goods and in markets with fewer and
expensive, andTrisky
larger sellersRIC
S T
R E
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FA
@
t s
Type of product market en
u d
S t
a r
▪ An effectively trained company i d sales force can
Ha
make four important. contributions:
. A
i. Increase stock Dposition r
o r
ii. Build enthusiasm f
ED
iii. Conduct Tmissionary selling
I C
iv. Manage T R key accounts
E S
R
1 8
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FA
@
t s
en
u d
S t
a r
id
a
.H
.r A
rD
fo
ED
C T
I
S TR
R E
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FA
 @
Communication tools vary in cost-effectiveness at different
t s
stages of buyer readiness n e
u d
 Advertising and publicity play the most
S t important roles in the
awareness-building stage. a r
i d
 Customer comprehension is Haprimarily affected by advertising
and personal selling. . A .
Dr
 Customer convictionoris influenced mostly by personal selling
f
 Closing the sale EisD influenced mostly by personal selling and
C T
sales promotion
RI
Reordering
T
S is also affected mostly by personal selling, sales

R E
promotion, and somewhat by advertising.
1 8
17-
L L
FA
@
t s
en
u d
S t
a r
id
a
.H
.r A
rD
fo
ED
C T
I
S TR
R E
1 8
17-
L L
FA
@
t s

e n
Communication tools also vary in cost-effectiveness at
d
tu cycle.
different stages of the product life
S
a r
i d
In the introduction stage:
Ha
 Advertising and publicity A . have the highest cost-
r .
effectiveness.
r D
 Followed by personalfo selling to gain distribution coverage
 Sales promotion EDto induce trial
T C
I
S TR
R E
1 8
17-
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FA
@
t s
In the growth stage:
e n
d
 1) Demand has its own momentum through
u
word-of-mouth.
S t
a r
In the maturity stage:
i d
 Sales promotion
Ha
 Advertising A .
r .more important in that order.
D
 Personal selling all grow
r
f o
In the decline stage: ED
 Sales promotion C T continues strong.
I
R publicity are reduced
T
 Advertising and
ES give the product only minimal attention.
 Salespeople
R
1 8
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FA
@
t s
en
u d
S t
a r
id
a
.H
.r A
rD
fo
ED
C T
I
S TR
R E
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FA
@
t s
en
u d
S t
a r
id
a
.H
.r A
rD
fo
ED
C T
I
S TR
R E
1 8
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Fear Appeal L L
FA
A television @
t s
advertisement e n
u d
S t
by the r
d a
Connecticut a i
. H
Department of A
r .
Health usingr aD
f o
fear appeal
D
T E
IC
S TR
R E
Dr A Haidar © FALL 2018-2017 6-87

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E S weaken a customer’s view of the

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