Integrated Marketing Communications Strategy

Chapter 14
Integrated Marketing Communications Strategy
Learning Goals
Know the tools of the marketing communications mix.
Understand the process and advantages of integrated marketing communications.
Learn the steps in developing effective marketing communications.
Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.
Case StudyBMW MINI USA
BMW introduced the MINI Cooper into the U.S.
Challenges: small budget and staff
Strong trend of SUV purchases
Broke with traditional auto advertising and used unconventional media
“Let’s Motor” campaign began by mounting MINIs on SUV’s in 22 cities.

Created integrated strategy with unified brand personality at every consumer “touchpoint”
Campaign a success with a 10-month waiting list
Awareness growth from 2% to 53% of U.S. consumers
MINI sales are running better than 80% above original projections.
Learning Goals
Know the tools of the marketing communications mix.
Understand the process and advantages of integrated marketing communications.
Learn the steps in developing effective marketing communications.
Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.
Definition – Integrated Marketing Communications
Definition
Marketing Communications Mix
The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.
Tools of the MixFigure 14.1
Learning Goals
Know the tools of the marketing communications mix.
Understand the process and advantages of integrated marketing communications.
Learn the steps in developing effective marketing communications.
Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.
Integrated Marketing Communications
The Marketing Communications Environment is Changing:
Mass markets have fragmented, causing marketers to shift away from mass marketing to target marketing.
Improvements in information technology are facilitating segmentation
Media fragmentation has occurred with companies doing less broadcasting and more narrowcasting
Integrated Marketing Communications
The Need for Integrated Marketing Communications
Conflicting messages from different sources or promotional approaches can confuse company or brand images
The problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently
Integrated Marketing Communications
The Need for Integrated Marketing Communications
The Internet must be integrated into the broader IMC mix
Best bet is to wed traditional branding efforts with the interactivity and service capabilities of online communications

Integrated Marketing Communications
Integrated Marketing Communications
The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

Ford Motor Company
Discussion Question
How does Turkcell practice IMC?
Learning Goals
Know the tools of the marketing communications mix.
Understand the process and advantages of integrated marketing communications.
Learn the steps in developing effective marketing communications.
Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.
The Communication Process
Communications efforts should be viewed from the perspective of managing customer relationships over time.
The communication process begins with an audit of all potential contacts a customer might have with the brand.
Effective communication requires knowledge of how communication works.
Elements in the Communication ProcessFigure 14.2
Developing Effective Communication
Step 1: Identifying the Target Audience
Affects decisions related to what, how, when, and where message will be said, as well as who will say it
Step 2: Determining Communication Objectives
Six buyer readiness stages
Buyer-Readiness StagesFigure 14.3

Who is the target
Which readiness stage?
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Developing Effective Communication
Step 3: Designing a Message
AIDA framework guides message design
Message content contains appeals or themes designed to produce desired results
Rational appeals
Emotional appeals
Love, pride, joy, humor, fear, guilt, shame
Moral appeals

What is appeal?
Rational appeals
Emotional appeals
Love, pride, joy, humor, fear, guilt, shame
Moral appeals

What is appeal?
Rational appeals
Emotional appeals
Love, pride, joy, humor, fear, guilt, shame
Moral appeals

What is appeal?
Rational appeals
Emotional appeals
Love, pride, joy, humor, fear, guilt, shame
Moral appeals

Why can humor be a particularly effective appeal?
Developing Effective Communication
Step 3: Designing a Message
Message Structure: Key decisions are required with respect to three message structure issues:
Whether or not to draw a conclusion
One-sided vs. two-sided argument
Order of argument presentation
Message Format: Design, layout, copy, color, shape, movement, words, sounds, voice, body language, dress, etc.

Developing Effective Communication
Step 4: Choosing Media
Personal communication channels
Includes face-to-face, phone, mail, and Internet chat communications
Word-of-mouth influence is often critical
Buzz marketing cultivates opinion leaders
Nonpersonal communication channels
Includes media, atmosphere, and events

Developing Effective Communication
Step 5: Selecting the Message Source
Highly credible sources are more persuasive
A poor spokesperson can tarnish a brand

Discussion QuestionEffective spokespeople?
What makes an effective spokesperson?
When should they NOT be used?
Developing Effective Communication
Step 6: Collecting Feedback
Recognition, recall, and behavioral measures are assessed
May suggest changes in product/promotion

Advertising Recall
Put away your notes
Recall all the ads and marketing messages you have seen so far in this lecture
Learning Goals
Know the tools of the marketing communications mix.
Understand the process and advantages of integrated marketing communications.
Learn the steps in developing effective marketing communications.
Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.
Setting the Promotional Budget
Setting the Total Promotional Budget
Affordability Method
Budget is set at a level that a company can afford
Percentage-of-Sales Method
Past or forecasted sales may be used
Competitive-Parity Method
Budget matches competitors’ outlays

Setting the Promotional Budget
Setting the Total Promotional Budget
Objective-and-Task Method
Specific objectives are defined
Tasks required to achieve objectives are determined
Costs of performing tasks are estimated, then summed to create the promotional budget

Setting the Promotional Mix
Setting the Overall Promotion Mix
Determined by the nature of each promotion tool and the selected promotion mix strategy

Setting the Promotional Mix
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

Reaches large, geographically dispersed audiences, often with high frequency
Low cost per exposure, though overall costs are high
Consumers perceive advertised goods as more legitimate
Dramatizes company/brand
Builds brand image; may stimulate short-term sales
Impersonal; one-way communication

Setting the Promotional Mix
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

Most effective tool for building buyers’ preferences, convictions, and actions
Personal interaction allows for feedback and adjustments
Relationship-oriented
Buyers are more attentive
Sales force represents a long-term commitment
Most expensive of the promotional tools
Setting the Promotional Mix
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

Makes use of a variety of formats: premiums, coupons, contests, etc.
Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales
Stimulates quick response
Short-lived
Not effective at building long-term brand preferences

Setting the Promotional Mix
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

Highly credible
Many forms: news stories, news features, events and sponsorships, etc.
Reaches many prospects missed via other forms of promotion
Dramatizes company or benefits
Often the most underused element in the promotional mix

Setting the Promotional Mix
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

Many forms: Telephone marketing, direct mail, online marketing, etc.
Four distinctive characteristics:
Nonpublic
Immediate
Customized
Interactive
Well-suited to highly targeted marketing efforts
Setting the Promotional MixFigure 14.4
Setting the Promotional Mix
Checklist: Integrating the Promotion Mix
Analyze trends (internal and external)
Audit communications spending
Identify all points of contact
Team up in communications planning
Make all communication elements compatible
Create performance measures
Appoint an IMC manager
Socially Responsible Communications
Advertising and Sales Promotion
Avoid false and deceptive advertising
No bait and switch advertising
Trade promotions can not favor certain customers over others
Use advertising to promote socially responsible programs and actions

Socially Responsible Communications
Personal Selling
Salespeople must follow the rules of “fair competition”
Three day cooling-off rule protects ultimate consumers from high pressure tactics
Business-to-business selling
Bribery, industrial espionage, and making false and disparaging statements about a competitor are forbidden

Learning Goals
Know the tools of the marketing communications mix.
Understand the process and advantages of integrated marketing communications.
Learn the steps in developing effective marketing communications.
Understand methods for setting promotional budgets and the factors that affect the design of the promotion mix.

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