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Ch 17 designing and integrating marketing communications14e
1.
9/17/2014 1 17Designing
and Integrating Marketing Communications 1 Marketing Communications Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands they sell. Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-2Marketing Communications Mix or Promotion Mix Advertising Sales promotion Public relations and publicity Personal selling Direct marketing Interactive marketing Word-of-mouth marketing Events and experiences The specific blend of eight major modes of communication that the company uses to persuasively communicate customer value and build customer relationships Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-3Modes of Marketing Communications Mix Advertisingis any paid form of nonpersonalpresentation and promotion of ideas, goods, or services by an identified sponsor. Sales promotionis the short-term incentives to encourage the purchase or sale of a product or service. Public relations involves building good relations with the company’s various publics by obtainingfavorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Personal selling is the personal (face-to-face) presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-4 Modes of Marketing Communications Mix Direct marketing involves making direct connectionswith carefully targeted individual consumers to obtain an immediate response and cultivatelasting relationships. Interactive marketing is online activities and programsdesigned to engage customers directly with company or its products. WoMmarketing is an unpaid formof oral or written promotion in which satisfied customers tell others how much they like an offering. Events and experiencesare company-sponsoredactivities and programs designed to create brand- related interactions with consumers. Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-5Table 17.1 Communication Platforms Advertising Print and broadcast ads Packaging inserts Motion pictures Brochures and booklets Posters Billboards POP displays Logos Videotapes Sales Promotion Contests, games, sweepstakes Premiums Sampling Trade shows, exhibits Coupons Rebates Entertainment Continuity programs Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-6
2.
9/17/2014 2Table 17.1
Communication Platforms Public Relations Press kits Speeches Seminars Annual reports Charitable donations Publications Community relations Lobbying Identity media Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-7 Personal Selling Sales presentations Sales meetings Incentive programs Samples Fairs and trade showsTable 17.1 Communication Platforms Interactive Marketing Banner Advertising, Interstitials, Email Advertising, Company Websites, Text Messaging Direct Marketing Catalogs Mailings Telemarketing Electronic shopping TV shopping Fax mail E-mail Voice mail Websites Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-8Table 17.1 Communication Platforms Word-of-Mouth Person-to-person Chat rooms Blogs Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-9 Events/ Experiences Sports Entertainment Festivals Art Causes Factory tours Company museums Street activitiesChanging Marketing Communications EnvironmentCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-10 Consumers are better informed More communication Less mass marketing Changing communications technologyThe New Marketing Communications ModelIntegrated Marketing Communications IMCis the practice of blendingdifferent elements of the communications mix in mutually reinforcing waysto deliver a clear, consistent, and compelling message about the organization and its brands •Helps avoid contradiction between the positioning strategy and MC strategies •Helps provide a unified and cohesive message •Ensures the integration of works of expert people of different fields The Need for IMCTraditional compensationPerformancebased Traditional compensationTraditional compensation Performancebased compensation Performance-based Media mediaSpecialized mediaSpecialized focus Data Data-marketing Low accountability Greater accountability Limited Internet availability Widespread Internet availability availabilityMedia advertisingMedia advertisingMultiple forms of communicationMultiple communicationMass mediaMass media Specialized media mediaManufacturer dominanceManufacturer dominanceRetailer dominanceRetailer dominanceGeneral focusGeneral focusDataData-based marketingLow agency accountabilityLow accountabilityGreater agency accountabilityGreater accountabilityReasons for the Growing Importance of IMC From Toward
3.
9/17/2014 3 Some
Basic Advertising Terms Buzz marketing--cultivatingopinion leaders and gettingthem to spread information about an offering to others in their communities Viral marketing--the internet version of WoMmarketing where e-mail messages or other marketing events that are so infectious that customers pass them along to friends Virtual advertising--the insertionof electronic images such as signs, logos, and packages into live or taped programs Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-13Some Basic Advertising Terms Experiential marketing--promoting an offering by not only communicating its feature and benefit but also connectingit with unique experiences of customer Permission marketing--encouragingconsumers to participate in a long-term interactive marketing campaign and get rewarded for paying attention to messages which are anticipated, personal and relevant (or taking permission before you send message) Interruption marketing--sendingan unintended message to people through marketing promotions continually that embarrassthem Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-14Some Basic Advertising Terms Database marketing--a form of direct marketingthat uses databases of customers to generate personalized communications in order to promote a product Relationship marketing--the process of creating, maintaining and enhancing strong, value-laden, and long-term relationships with customers and others by providing superior customer value Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-15 Some Basic Advertising Terms Advocacy advertising–adv. paid for by an identified sponsorthat communicates a company's stand on a particular issue POP advertising—adv. or display materials located in a retail environment to build traffic that advertise an offering, and encourage impulse buying Flexform advertising--anodd-shaped adv. that doesn’t conform to normal shapes and stands out from traditional square print ad spaces Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-16 Some Basic Advertising Terms Cross-marketing--a strategy in which two independent organizations share facilities and/or resources to market their goods to similar customers Value marketing--a principle of enlightened marketing that holds that a company should put most of its resources into value-building marketing investments Green/ecological/environmental marketing-- marketing of products that are presumed to be environmentally safe Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-17 Source--the sender of a message Encoding--the source deciding what to say and translating it into words or symbols that convey meaning Message channel--the carrier of the message Noise--any distraction that reduces the effectiveness of the communication process Decoding--the receiver translating the message Receiver--the potential customer Elements in the Communications Process
4.
9/17/2014 4Figure 17.1
Elements in the Communications Process Sender’s field of experience Receiver’s field of experienceFigure 17.2 Micromodels of Communications 17-21 Steps in Developing Effective CommunicationsIdentify target audienceDetermine objectivesDesign communicationsSelect channels Establish budget Decide on media mixMeasure results/manage IMC Step-1: Identify Target Audience Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-22 Identifying the Target Audience which will determine: What will be saidbe said How it will be saidbe saidWhen it will When be saidbe saidWhere it Where will be saidwill saidWho will Who say itsay itStep-1: Identify Target Audience Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-23 Never Heard of Heard of Only Know a Little Bit Know a Fair Amount Know Very Well Very Unfavorable Somewhat Unfavorable Indifferent Somewhat Favorable Very favorable Favorability Scale Familiarity Scale Make image analysis using familiarity and favorability scales Step-1: Identify Target Audience Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-24 Figure: Familiarity-Favorability Analysis
5.
9/17/2014 5Step-2: Communications
ObjectivesCopyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-25 Marketers can set communication objectives at any level of the hierarchy-of-effects model They seek a purchase response resulting from a consumer decision-making process Step-2: Communications Objectives Establish a product/service category Build brand awareness Focus on brand attitude (perceived ability) Focus on brand purchase intention Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall17-26 Rossiterand Larryidentified four key communications objectives Step-3: Designing the Communications Message strategy--what to say Creative strategy--how to say it Message source--who should say it Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-27 Design the message so that it can get attention, hold interest, arouse desire, and obtain action Message Strategy: What to SayCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-28 Message strategy deals with appeals andthemes/ideas Management ties them in to the brand positioning to establish PoPsand PoDswhich may relate to: –Product /service performance (e.g. quality, value, etc.) –Extrinsic considerations (e.g. the brand being popular, contemporary, traditional) Creative Strategy: How to Say It How a message is being expressed The way marketers translate their messages into a specific communication Two broad types of appeals: Informational appeal elaborates on product/service attributes/benefits –Focuses on rational and logic rule Transformational appeal elaborates on a nonproduct-related benefit or image –Focuses on consumer emotionsCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 17-29Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-30 Some specific appeals: Rational appeals Emotional appeals (negative and positive) Moral appeals Provocative sex appeals Motivational appeals (cute babies, popular media environment, frisky puppies) Creative Strategy: How to Say It
6.
9/17/2014 6Copyright ©
2013 Pearson Education, Inc. Publishing as Prentice Hall17-31 Informational appeals also deal with message structure Three key message structure issues: Whether to draw a conclusion or leave it to the audience? Will be message be one-sided or two-sided? How to present the strongest arguments: first or last? Creative Strategy: How to Say ItCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-32 Creative strategy also deals with message format In print ad, decide on the headline, copy, image, illustration, and color In radio ad, choose right words, sounds, and voices For TV ad or in person, consider all elements plus body language If the message is given in the package, then watch texture, scent, color, size, and shape Creative Strategy: How to Say ItMessage Source: Who Should Say ItCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-33 How the audience views the communicator has an impact Attractive or popular sources achieve higher attention and recall Celebrities are effective when they are credible The three most identified sources of credibility –Expertise –Trustworthiness –Likability Step-4: Select Communication Channels Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-34 Personal channels--two or more people communicate directly with each other Face-to-face Phone Mail E-mail and Internet Chat Non-personal channels--media that carry messages without personal contact or feedback Major media Atmospheres EventsControl/Types of Personal ChannelsCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-35 Advocate channels--company salespeople who contact buyers in the target market Expert channels--independent experts who make statements to target buyers Social channels--neighbors, friends, family members and associates who talk to target buyers (WoM) Step-5: Establish the Budget Affordable budget methodsets the budget at an affordable level Ignores the effects of promotion on sales Percentage of sales methodsets the budget at a certain % of current or forecasted sales or unit sales price Easy to use and helps management think about the relationship between promotion, selling price, and profit per unit Wrongly views sales as the cause rather than the result of promotion
7.
9/17/2014 7Step-5: Establish
the Budget Competitive-parity method sets the budget to match competitor outlays Represents industry standards Avoids promotion wars Objective-and-task methodsets the budget based on what the firm wants to accomplish with promotion and includes: Defining promotion objectives Determining tasks to achieve the objectives Estimating costs Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall17-38 Example: 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. Dr. Pepper Snapple Group wants to introduce a new natural energy drink, called Sunburst, for the casual athlete. Its objectives might be as follows: Step-6: Deciding on the Marketing Communications MixCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-39 MC budget is allocated over the eight major modes of communication Try to gain efficiency by substituting one communications tool for others The substitutability among communications tools explains why marketing functions need to be coordinated Characteristics of the Mix Advertisingreaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times Pervasiveness Amplified expressiveness Impersonality Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall17-40 Sales promotion attracts consumer attention and offers strong incentives to purchase, and can be used to dramatize product offers and to boost sagging sales Communication Incentive Invitation Public relations is a very believable form of promotion High credibility Ability to catch buyers off guard Dramatization Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall17-41 Characteristics of the Mix Personal selling is the most effective method at certain stages of the buying process, particularly in building buyers’ preferences, convictions, actions, and developing customer relationships Personal interaction Cultivation Response Direct and interactive marketing is a non-public, immediate, customized, and interactive promotional tool Customized Up-to-date Interactive Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall17-42Characteristics of the Mix WoMMarketing Credible Personal Timely Events and Experiences Relevant Involving Implicit
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9/17/2014 8 Copyright
© 2011 Pearson Education, Inc. Publishing as Prentice Hall17-43 Factors in Setting Communications Mix Types of product market (consumer vs. business) Buyer readiness stage (awareness, comprehension, conviction, order and reorder) Product life cycle stage (introduction, growth, maturity, and decline) Figure 17.4 Cost-Effectiveness of Different Communication Tools Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall17-44Step-7: Measuring Communication ResultsCopyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall17-45 Know the outcomes and revenues resulting from communications investments Can target market recognize or recall the message? How many times did they see it? What can they recall? How did they feel about the message? What were their previous and current attitudes toward the product and company? How many people bought the product, liked it, and talked to others about it?