EMB 520: Ch 17 designing and integrating marketing communications14e

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17Designing and Integrating Marketing Communications
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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.
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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
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2Table 17.1 Communication Platforms
Public Relations
Press kits
Speeches
Seminars
Annual reports
Charitable donations
Publications
Community relations
Lobbying
Identity media
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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
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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

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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
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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
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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
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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

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4Figure 17.1 Elements in the Communications Process
Sender’s field of experience
Receiver’s field of experienceFigure 17.2 Micromodels of Communications
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Steps in Developing Effective CommunicationsIdentify target audienceDetermine objectivesDesign communicationsSelect channels
Establish budget
Decide on media mixMeasure results/manage IMC
Step-1: Identify Target Audience
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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
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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
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Figure: Familiarity-Favorability Analysis

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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
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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
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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

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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
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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

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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
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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
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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
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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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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?