Download The Marketing Communications Mix

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Integrated Marketing Communication Strategy
•Chapter 15
•Powerpoint slides
•Extendit! version
•Instructor name
•Course name
•School name
•Date
Principles of Marketing: 6th Canadian Edition
Learning Objectives
15.2
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• After studying this chapter, you should be able to:
– Name and define the five tools of the marketing
communications mix
– Discuss the process and advantages of integrated marketing
communications
– Outline the steps in developing
effective marketing
communications
– Explain the methods for setting
the promotion budget and
factors that affect the design of
the promotion mix
Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Canada Inc.
Opening Vignette: United Parcel Service (UPS)
15.3
• Delivery fleet of 88,000 vehicles deliver 13.6 million packages daily
• Global company operating in 200 countries, $39.7 billion revenue
• Diversified beyond courier services: 3rd party logistics, inventory
management, financing, and global customer clearance services
• Old slogan: “We run the tightest ship in the shipping business”
• Challenge: how to communicate all that UPS
can provide?
• Conducted focus groups to explore what
customers and insiders thought
• New slogan: “What can Brown do for you?”
• Retains core value of humility, and takes the
customer’s point of view (marketing concept)
• Part of an integrated marketing
communications campaign
Principles of Marketing: 6th Canadian Edition
The Marketing Communications Mix
15.4
• The marketing communications (promotion) mix: the
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specific mix of promotional tools used to pursue marketing objectives
• Advertising:
– Any paid form of non-personal presentation and promotion of
ideas, goods, or services by an identified sponsor
• Sales promotion:
– Short-term incentives to encourage
purchase or sale of a product or
service
Figure 15.1
• Public relations:
– Building good relations and
corporate image with the company’s
publics using publicity, and
handling unfavourable events
Principles of Marketing: 6th Canadian Edition
The Marketing Communications Mix (continued)
15.5
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• Personal selling:
– Personal presentation by the firm’s sales force for the purpose of
making sales and building customer relationships
• Direct marketing:
– Direct communications with targeted individuals to obtain an
immediate response and lasting customer relationships
Figure 15.1
• Integrated marketing
communications:
– Coordinating/integrating to deliver
a clear, consistent, and compelling
message on all communication
channels
– Leverage: the overall effect is
greater than the sum of its parts
Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Canada Inc.
Need for Integrated Marketing Communications
•
•
•
•
15.6
Mass marketing has become segmented marketing
Improvements in information technology
Media fragmentation
Need for integration:
– Consumers do not differentiate the source of the message
– Conflicting messages
confuse the customer
– Integration produces a
consistent message
which leads to
stronger brand
identity
Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Canada Inc.
The Communication Process
15.7
• Communications: managing the customer relationship over time
• Notes:
– Communications flow in both directions
– The fields of experience need to overlap to ensure that meanings
attached to the symbols used to communicate are similar
– Senders need to
Figure 15.2
know and
understand who
they want to reach
– Need feedback
channels to be able
to assess
effectiveness of the
message sent
Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Canada Inc.
Steps in Developing Effective Communications
•
•
•
•
•
•
15.8
Identify the target audience
Determine the response sought
Choose a message
Choose the media to send the message
Select the message source
Collect feedback
Principles of Marketing: 6th Canadian Edition
Steps in Developing Effective Communications
15.9
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• Identifying the target audience:
– Will determine what, how, when, where, and who will say it
• Determining the desired response:
– Will depend on what “stage” of the purchase decision process the
buyer is presently at
• Buyer readiness stages:
– The stages that
buyers normally
pass through
when making
purchase
decisions
Figure 15.3
Principles of Marketing: 6th Canadian Edition
15.10
Designing a Message
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• Message content:
– Rational appeals: relate to the audience’s self-interest
– Emotional appeals: stir up negative or positive feelings using humour,
fear, pride, joy, or even disgust
– Moral appeals: related the audience’s sense of right versus wrong
• Message structure:
– Draw conclusion or not (ask question and
get the customer to conclude)
– One versus two-sided argument (we may
not be the largest but we aim to be better)
– Strongest argument first (end
anticlimatic) or last
• Message format:
– How the message will be conveyed
– Sight, sound, colour, and texture
The AIDA model:
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–
–
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Attract attention
Hold interest
Arouse desire
Obtain action
Principles of Marketing: 6th Canadian Edition
Choosing Media
15.11
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• Personal communication channels:
– Two or more people communicating directly with each other
– Face to face, person to audience, telephone, electronically, or mail
• Word of mouth influence:
– Personal communication between target buyers and family,
friends, neighbours, an associates
• Buzz marketing:
– Cultivating opinion
leaders and getting
them to spread
information about a
product or service to
others in their
communities
Principles of Marketing: 6th Canadian Edition
Choosing Media (continued)
15.12
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• Non-personal communication channels:
– Media that carry messages without personal contact
• Major media:
– Print, broadcast, display, and online
• Atmospheres:
– Designed environments that
create or reinforce a buyer’s
leanings toward buying a
product (banks)
• Events:
– Staged occurrences that
communicate messages to
target audiences (sponsoring a
sport event)
Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Canada Inc.
Selecting the Message Source
15.13
• A message’s impact will be affected by how the audience views the
communicator
– Messages delivered by highly credible sources are more persuasive
– Use of celebrities to endorse products helps to attract attention, and
consumers transfer feelings to the product
– Use of celebrities can be
dangerous when events (or
their behaviour) tarnish their
reputation
• Collecting feedback on
marketing communications an
important element in the process:
– Measure awareness, attitude,
and resulting behaviour
Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Canada Inc.
Setting the Promotional Budget
Affordable
method
What management thinks
the company can afford
Percentage-of-sales
method
The budget as a percentage
of forecasted sales
Competitive-parity
method
Setting the budget to
match competition spending
Objective-and-task
method
1.
2.
3.
4.
15.14
Defining specific objectives
Determining tasks needed
Estimating costs of tasks
Adding total costs
Principles of Marketing: 6th Canadian Edition
Nature of Promotional Tools
15.15
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• Advertising:
–
–
–
–
–
–
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–
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Can reach large masses of geographically dispersed buyers
Large audiences for specific television shows or events
Relatively low cost per exposure; high repetition if desired
Large-scale advertising enhances
seller’s credibility
Visual media allow for showing the
product working or being consumed
Impersonal, and one way,
Not as persuasive as personal contact
Can be expensive to do properly
Difficult to measure effectiveness or
impact on sales
Principles of Marketing: 6th Canadian Edition
Nature of Promotional Tools (continued)
15.16
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• Sales promotion:
–
–
–
–
Can include coupons, contests, cents-off deals, premiums
Are used to attract attention, dramatize, and boost sales
Offer strong incentive for trial
Easier to track and measure influence
on sales
– Effects are short-lived, and may hurt
brand equity rather than help it
• Public relations:
– News stories, features, speeches,
corporate materials, websites
– More believable than advertising
– Difficult to control content used
Principles of Marketing: 6th Canadian Edition
Nature of Promotional Tools (continued)
15.17
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• Personal selling:
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–
–
–
More effective at later stages of buyer readiness
Direct contact, two-way communication, flexible message content
Interactive, able to determine effectiveness of message
Very expensive on a per-contact basis, large commitment
• Direct marketing:
– Non-public, immediate,
customized, and interactive
– Well-suited to highly-targeted
marketing approaches, and
building customer relationships
– Can be expensive and not suited to
all products and services
Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Canada Inc.
Push Versus Pull Promotional Strategies
•
•
•
•
15.18
Refers to the direction of promotional effort
Exists as a range, yet most companies use a combination of both
Consumer goods use primarily pull; advertising
Industrial goods use primarily push; personal selling
Figure 15.4
Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Canada Inc.
Checklist for Integrating the Promotion Mix
15.19
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•
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Analyze trends that affect your company’s ability to do business
Audit communications spending throughout the organization
Identify all contact points for the company and its brands
Team up in communications planning
• Create compatible themes, tones,
and quality across all
communications media
• Create performance measures
that are shared by all
communications elements
• Appoint a director responsible
for the company’s communications
efforts
Principles of Marketing: 6th Canadian Edition
Socially Responsible Marketing Communications
15.20
Copyright © 2005 Pearson Education Canada Inc.
• Many legal and ethical issues surround marketing communications
• Advertising and sales promotion:
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Avoid false and deceptive advertising
Bait-and-switch selling tactics
Programming reflects Canadian social values
The Competition Act
• Personal selling:
– Fair competition
– Consistency with
advertising messages
– Cooling-off periods
– Ethical behaviour
Principles of Marketing: 6th Canadian Edition
In Conclusion…
15.21
Copyright © 2005 Pearson Education Canada Inc.
• The learning objectives for this chapter were:
– Name and define the five tools of the marketing
communications mix
– Discuss the process and advantages of integrated marketing
communications
– Outline the steps in developing
effective marketing
communications
– Explain the methods for setting
the promotion budget and
factors that affect the design of
the promotion mix
Principles of Marketing: 6th Canadian Edition