* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Chapter 6: Integrated Marketing communication strategy and
Advertising management wikipedia , lookup
Digital marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Viral marketing wikipedia , lookup
E-governance wikipedia , lookup
Youth marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Street marketing wikipedia , lookup
Green marketing wikipedia , lookup
Multicultural marketing wikipedia , lookup
Sales process engineering wikipedia , lookup
Marketing plan wikipedia , lookup
Target audience wikipedia , lookup
Direct marketing wikipedia , lookup
Sensory branding wikipedia , lookup
Product planning wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Global marketing wikipedia , lookup
Internal communications wikipedia , lookup
Marketing channel wikipedia , lookup
Marketing strategy wikipedia , lookup
Advertising campaign wikipedia , lookup
Assoc. Prof. Dr. Teoman Duman Students: Merima Bejtagic-Makic, Ediba Rizvanbegovic. Chapter 6: Integrated Marketing communication strategy and management Marketing communication is the process by which Information about the organization and its offerings is distributed to the target markets. Information such as: The availability of the offering The unique benefits of the offering The where and how of obtaining and using the offering. The message could be hard-sell, humorous, or informational. It should be desirable to those to whom it is directed, exclusive, or unique to the offering being desirable and believable in terms of the benefit claims made for the offerings. Marketing communication mix includes: advertising, personal selling, sales promotion, public relations, internet. Integrated Marketing communication: the practice of blending different elements of the communication mix in mutually reinforcing ways to inform, persuade, and induce consumer action. Formulating an integrated marketing communication requires the below are the six major decisions 1) What are the information requirements of target markets as they proceed through the purchase process? 2) What objectives must a communication strategy achieve? 3) How might the mix of communication activities be combined to convey information to target markets? 4) How much should be budgeted for communicating with target markets, and in what manner should resources be allocated among various communication activities? 5) How should communication be timed and scheduled? 6) How should the communication process be evaluated as to its effectiveness and how should it be controlled? Below are the answers to the above questions in more detail Information requirements in purchase decisions: determine how buyers purchase a certain product and in what stage they are in the purchase-process, see below: Awareness Consideration Preferences Purchase The person involved in the stages can play several roles: purchaser, influencer, decision makers and consumer. Understanding which stage and who is playing the role is a prerequisite for successfully determining what the communication message should be, as well as to whom in should be directed and how it should be communicated. E.g buying a house. Setting reasonable communication objectives: this will depend on the 1) Overall offering market strategy of the organization e.g market penetration, market development, product development. 2) Stage of the product/service life cycle. e.g messages will stimulate primary demand early in the cycle and selective demand later in the cycle. Communication objectives have to meet 3 criteria: 1) Common to any integrated marketing communications initiative. 2) Quantifiable for measurement and control purposes 3) Attainable with an appropriate amount of effort and expenditure and within a specific timeframe. SMART Developing an Integrated marketing and communication mix: consider the following factors: 1) The information requirements of potential buyers: purchase-decision process, consumer touch points(where, when and how customers comes in contact with the product) 2) The nature of the offerings: quality, performance, cheap, not complex, frequently pruchased 3) The nature of the target market: small number of buyers, mass market, geographically dispersed markets, industries. 4) The capacity of the organization: is the company able and willing to undertake communication activities? make or buy? Use the company sales force or independent sales representatives. The decision has both economic and behavior dimensions. See table. Independent representative Economic Behavioral sales Cost is variable and not fixed: they Less investment in sales, no cost to are paid on sales commission only if the firm, they make sale. Company sales force Has both variable cost and fixed cost. Greater control: company selects, Salaries plus sales commission. trains and supervises sales personnel. Flexible and available. Push versus Pull communication strategy Push communication strategy: is one in which the offering is pushed through a marketing channel in a sequential fashion, with each channel level representing a distinct target market. it concentrate on channel intermediaries, building relationship with long term benefits, usually done to wholesalers and retailers. It is typically used when: 1) An organization has easily identifiable buyers 2) The offering is complex 3) Buyer view the purchase as being risky 4) Product or service is early in its life cycle 5) The organization has limited funds for direct to consumer marketing. Pull communication strategy: seeks to create initial interest among potential buyers, who in turn demand the offering from intermediaries, ultimately pulling the offering through a marketing channel. It emphasizes heavy user advertising, free samples, and coupons. Does an advertising opportunity exist for the offering? Yes, when 1) there’s a favorable primary demand for a product or service 2) it can be significantly differentiate from its competitors. 3) Has hidden qualities and benefits that can be effectively portrayed through advertising. 4) Strong emotional motives involved, such as buyers concern for health, beauty, status, or safety. Marketing websites: engage sellers and potential buyers in interactive communication for the purpose of selling and organization’s products or services. Two forms: 1) Transactional sites: electronic markets, e-commerce, focus to convert an online browser into an online buyer. E.g GAP 2) Promotional sites: they promote a company’s products and services, generate awareness and provide services on how items can be used and where they can be purchased. They create buzz: word of mouth. It can also assume a unique role in leveraging different elements of the communication mix. Websites are viewed as complementary to the direct selling activity by industrial marketers and as supplementary to advertising by consumer marketers. Communication Mix budgeting The rule is to make the budget equal with the tasks required of the communication activities. Since it’s difficult to evaluate communication effectiveness and budget size, there are some approaches used to establish a communication budget: 1) 2) 3) 4) Percentage-of-sales approach Competitive-parity approach All available funds for communication Objective-task approach Communication budget allocation: once the budget is set, it should be allocated across the communication activities. Advertising budget allocation: there are six Mass media: Televisions, radio, magazine, newspaper, outdoor (billboards), and internet that an organization can use in transmitting its advertising messages to target market. Media selection is based on the following factors: cost (CPT), reach, frequency and audience characteristics, the purpose of the ad and timing(seasonal stuff) or scheduling of the ad. Sale-force budget allocation: how many sales representative are needed and how should they be allocated? Number of sales rep(NS)= Number of customers(NC) *Frequency of calls (FC)*length of average customer call (LC) Average available selling time per sales rep(less time spend on admin duties) TA Evaluation and control of the communication process Mechanisms for evaluation and control, determine whether the objectives set were achieves, if not what are the corrective actions. Concept of continuousness: marketing manager should continuously monitor the execution of any communication plan or strategy to ensure the objectives are being met.