Chapter 19 Managing Integrated Marketing Communications

by

Dr. Saleh Alqahtani.

Kotler on Marketing
Integrated marketing communications is a way of looking at the whole marketing process from the viewpoint of the customer.
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Chapter Objectives
In this chapter, we focus on three major questions:
How does communication work? What are the major steps in developing an integrated marketing communications program? Who should be responsible for marketing communication planning?

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The Marketing Communications Mix

Advertising
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Short-term Incentives to Encourage Trial or Purchase. Protect and/or Promote Companys Image/products.

Sales Promotion

Public Relations Personal Selling

Personal Presentations.

Direct Marketing
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Direct Communications With Individuals to Obtain an Immediate Response.

Elements in the Communication Process

SENDER
Message Encoding Decoding

RECEIVER

Media

Noise Feedback Response

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Figure 19.2: Steps in Developing Effective Communication

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Effective Communications
Step 1. Identifying the Target Audience

Step 2. Determining the Communication Objectives

Buyer Readiness Stages Awareness

Knowledge
Liking Preference Conviction
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Purchase

Response Hierarchy Models

Stages
AIDA Model a Hierarchy-ofEffects Model b Awareness Cognitive stage Attention Knowledge Interest Affective stage Desire Behavior stage Action Liking Interest Awareness InnovationAdoption Model c Communications Model d Exposure Reception Cognitive response Attitude

Preference
Conviction Purchase Evaluation Trial Behavior

Intention

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Adoption

Step 3. Designing the Message

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Message Content Rational Appeals Emotional Appeals Moral Appeals Message Structure Draw Conclusions Argument Type Argument Order Message Format Layout, Words, & Sounds, Body Language Message Source Expertise, Trustworthiness, Congruity

Message Problems
Selective Attention

Selective Distortion

Selective Retention
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Step 4. Select Communications Channel

Personal Communication Channels Nonpersonal Communication Channels

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Step 5. Establish the Budget

Affordable

% Of Sales Objective & Task

Competitive Parity

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Step 6. Decide on Communications Mix

Advertising
Public, Pervasive, Expressive, Impersonal

Sales Promotion
Communication, Incentive, Invitation

Public Relations & Publicity

Credibility, Surprise, Dramatization

Personal Selling
Personal Confrontation, Cultivation, Response

Direct Marketing
Nonpublic, Customized, Up-to-Date, Interactive
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Step 7. Measure Results

Step 8. Manage the IMC Process

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Factors in Developing Promotion Mix Strategies

Type of Product/ Market Push vs. Pull Strategy

Buyer/ Readiness Stage Product Life-Cycle Stage

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Push Versus Pull Strategy

Marketing activities
Intermediaries

Producer

Marketing activities

End users

Demand

Push Strategy
Marketing activities

Producer

Demand

Intermediaries

Demand

End users

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Pull Strategy

Figure 19.6: Cost-Effectiveness of Different Promotional Tools

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Managing the Integrated Marketing Communications Process

Integrated Marketing Communications (IMC)

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Chapter 20 Managing Advertising, Sales Promotion, Public Relations, and Direct Marketing
by

Dr. Saleh Alqahtani.

Chapter Objectives
In this chapter, we focus on the following questions:
What steps are involved in developing an advertising program? What explains the growing use of sales promotion, and how are sales-promotion decisions made? How can companies exploit the potential of public relations and publicity? How can companies use integrated direct marketing for competitive advantage? How can companies do effective e-marketing?
Dr. Saleh Alqahtani.

Major Decisions in Advertising

Objectives Setting

Budget Decisions
Message Decisions Media Decisions

Campaign Evaluation
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Advertising Objectives
Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time
Informative Advertising
Build Primary Demand

Persuasive Advertising
Build Selective Demand

Comparison Advertising
Compares One Brand to Another
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Reminder Advertising
Keeps Consumers Thinking About a Product.

The Five Ms of Advertising

Message Money
Factors to consider:
Message generation Message evaluation and selection Message execution Social-responsibility review

Mission
Sales goals Advertising objectives

Stage in PLC Market share and consumer base Competition and clutter Advertising frequency Product substitutability

Measurement
Communication impact Sales impact

Media
Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation

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Advertising Budget Factors

Market Share & Consumer Base

Stage in the Product Life Cycle

Competition & Clutter

Product Substitutability
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Advertising Frequency

Figure 20.2: Relationship Among Trial, Awareness, and the Exposure Function

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Profiles of Major Media Types

Newspapers
Advantages: Flexibility, timeliness; good local market coverage; broad acceptance, high believability

Limitations: Short life; poor reproduction quality; small pass-along audience

Television

Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses Limitations: High absolute costs; high clutter; fleeting exposure; less audience selectivity

Direct Mail
Advantages: Audience selectivity; flexibility, no ad competition within same medium; allows personalization
Limitations: Relative high cost; junk mail image Dr. Saleh Alqahtani
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Profiles of Major Media Types

Radio
Advantages: Mass use; high geographic and demographic selectivity; low cost

Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences

Magazines

Advantages: High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership Limitations: Long ad purchase lead time; waste circulation; no guarantee of position

Outdoor
Advantages: Flexibility; high repeat exposure; low cost; low message competition
Dr. Saleh Alqahtani Limitations: Little audience selectivity; creative limitations
.

Classification of Advertising Timing Patterns

Level (1) Rising (2) Falling Alternating (3) (4)

Concentrated

(5)
Continuous

(6)

(7)

(8)

(9) (9)
Intermittent

(10)

(11)

(12)

Number of messages per month

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Month

Simplified Rating Sheet for Ads

(Attention) How well does the ad catch the readers attention? (Read-through) How well does the ad lead the reader to read further? (Cognitive) How clear is the central message or benefit? (Affective) How effective is the particular appeal? (Behavior) How well does the ad suggest follow-through action?
0

__20 __20 __20 __20 __20

20
Poor ad

40

60

80
Good ad

100
Great ad

__Total

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Mediocre Average ad ad

Advertising Strategy Message Execution

Turning the Big Idea Into an Actual Ad to Capture the Target Markets Attention and Interest.
Testimonial Evidence Scientific Evidence Technical Expertise Personality Symbol Slice of Life

Lifestyle

Typical Message Execution Styles

Fantasy
Mood or Image

Musical
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Advertising Evaluation
Advertising Program Evaluation

Communication Effects
Is the Ad Communicating Well?

Sales Effects
Is the Ad Increasing Sales?

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Why the increase in Sales Promotion?

Growing retailer power Declining brand loyalty Increased promotional sensitivity Brand proliferation Fragmentation of consumer market Short-term focus Increased managerial accountability Competition Clutter
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Long-Term Promotional Allocation

%t of total - 3 yr.MA

60 50 40 30 20 10 0
1986 88 90 92 Year
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Trade Promo Media Adv

Cons. Promo

94

1996

Channels of Sales Promotions

MANUFACTURER

Push

Trade Promotions RETAILER Consumer Promotions

Push

Retail Promotions
CONSUMER

Pull

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Consumer Promotion
Consumer-Promotion Objectives
Entice Consumers to Try a New Product Lure Customers Away From Competitors Products Get Consumers to Load Up on a Mature Product Hold & Reward Loyal Customers Consumer Relationship Building

Consumer-Promotion Tools
Samples Coupons Cash Refunds Price Packs Premiums Advertising Specialties Patronage Patronage Rewards Rewards Contests Sweepstakes

Games

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Point-of-Purchase Displays

Trade Promotions
Trade-Promotion Objectives
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers

Trade-Promotion Tools
Price-Offs Allowances Premiums

Patronage Displays Rewards

Discounts Push Money Specialty Advertising Items

Buy-Back Guarantees
Free Goods Contests

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Business-to-Business Promotion
Business-Promotion Objectives
Generate Business Leads Stimulate Purchases Reward Customers Motivate Salespeople

Business-Promotion Tools
Conventions Trade Shows Sales Contests

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Major Public Relations Tools

Web Site
Public Service Activities News

Corporate Identity Materials Audiovisual Materials

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Speeches

Written Materials

Special Events

Direct Marketing
Direct-Order Marketing Customer Relationship Marketing

The Growth of Direct Marketing

Market Demassification

The Benefits of Direct Marketing Integrated Direct Marketing

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Direct Marketing
Major Channels for Direct Marketing
Face-To-Face Selling Direct Mail
New Forms of Mail Delivery
Fax mail E-mail Voice mail

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Direct Marketing
Direct marketing has passed through a number of stages:
Carpet bombing Database marketing Interactive marketing Real-time personalized marketing Lifetime value marketing

Constructing a Direct-Mail Campaign

Objectives Target Markets and Prospects Offer Elements Testing Elements Measuring Campaign Success: Lifetime Value
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Direct Marketing
Catalog Marketing
Telemarketing and M-Commerce
Inbound telemarketing Outbound telemarketing Four types of telemarketing:
Telesales Telecoverage Teleprospecting Customer service and technical support

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Direct Marketing
Other Media for Direct-Response Marketing
Direct-response advertising At-home shopping channels Videotext and interactive TV

Kiosk Marketing

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Direct Marketing
E-Marketing
Permission Marketing
Levels of Permission Marketing:
No permission level Low permission level Medium permission level High permission level Transaction level

E-Marketing Guidelines
Give the customer a reason to respond Personalize the content of your e-mails Offer something the customer could not get via direct mail Make it easy for the customer to unsubscribe

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