Download integrated marketing communication strategy framework chapter 6

CHAPTER 6
Integrated Marketing
Communication Strategy and
Management
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-1
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
1. Describe the practice and
framework of integrated marketing
communications.
2. Explain the process of how buyers
purchase an offering.
3. Select the appropriate
communication approach based on
an offering’s marketing strategy
and life cycle.
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-2
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
4. Describe the factors that influence
the development of the integrated
marketing communication mix.
5. Compare a push versus a pull
communication strategy.
6. Describe the types of marketing
websites.
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-3
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
7. Identify the different approaches
used to formulate a
communications budget.
8. Discuss the mechanisms for
evaluating and controlling the
marketing communication process.
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-4
MARKETING COMMUNICATION
 Marketing communication is the
process by which information about
a firm and its offerings is disseminated
to selected markets.
 Its goals are to:
Induce
Initial Trial
Achieve
Postpurchase
Satisfaction
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Generate
Repeat Sales
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MARKETING COMMUNICATION
 Communication informs buyers of the:
• Availability of an offering
• Unique benefits of the offering
• Where and how to obtain and use the
offering
 The message should be:
Desirable to
the Target
Market
Exclusive to
the Offering
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Believable as to
the Offering’s
Benefits
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MARKETING COMMUNICATION
Advertising
Personal
Selling
Marketing
Communication
Mix
Public
Relations
Sales
Promotion
Direct
Marketing
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-7
MARKETING COMMUNICATION
 Integrated marketing communication is the
practice of blending different elements of the
communication mix in mutually reinforcing ways
to inform, persuade, and induce consumer action.
 Examples:
Advertising
Personal
Selling
Sales
Promotion
Develop offering awareness and
comprehension
Obtain final conviction and purchase
Increase purchase intention and
induce actual purchase
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-8
CHAPTER 6: INTEGRATED MARKETING
COMMUNICATION STRATEGY AND MANAGEMENT
INTEGRATED
MARKETING
COMMUNICATION
STRATEGY FRAMEWORK
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-9
INTEGRATED MARKETING
COMMUNICATION STRATEGY DECISIONS
1. What are the info requirements of target markets?
2. What objectives must the 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 how should resources be allocated
among various communication activities?
5. How should the communication be timed and
scheduled?
6. How should the communication process be evaluated?
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-10
CHAPTER 6: INTEGRATED MARKETING
COMMUNICATION STRATEGY AND MANAGEMENT
INFORMATION
REQUIREMENTS IN
PURCHASE DECISIONS
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-11
INFORMATION REQUIREMENTS IN
PURCHASE DECISIONS
Purchase Decision Roles
Purchaser
Influencer
Decision
Maker
Consumer
 A person may play more than one role
 In a joint purchase decision, the roles
may be played by different individuals
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-12
INFORMATION REQUIREMENTS IN
PURCHASE DECISIONS
Purchase Decision Roles
The role consumers play is a prerequisite
for successfully determining:
 The communication message itself
 To whom the message should be directed
 How the message should be communicated
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-13
INFORMATION REQUIREMENTS IN
PURCHASE DECISIONS
To communicate effectively, a marketer must know:
What
Information consumers think is
necessary (price, location, size, etc.).
Where
Consumers will seek it (newspapers,
the Internet, friends, etc.).
When
Consumers will seek it (how far in
advance, on what days, etc.).
How
Consumers will apply the
information obtained.
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-14
CHAPTER 6: INTEGRATED MARKETING
COMMUNICATION STRATEGY AND MANAGEMENT
SETTING REASONABLE
COMMUNICATION
OBJECTIVES
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Slide 6-15
SETTING REASONABLE
COMMUNICATION OJBECTIVES
Communication objectives depend on:
The offering-market
strategies of the firm
The stage of the
offering life cycle
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-16
SETTING REASONABLE
COMMUNICATION OJBECTIVES
Communication objectives for offeringmarket strategies:
Market
Penetration
Market
Development
 Emphasize more
frequent offering usage
 Stimulate awareness
and trial of the offering
 Build preference for or
loyalty to the offering
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-17
SETTING REASONABLE
COMMUNICATION OJBECTIVES
Communication goals for the offering life cycle:
Introduction
 The message focuses on:
Growth/maturity
 The message:
• Introducing the
benefits of an offering
• Focuses on the benefits of a
specific brand or offering
• Overcoming the
objections to the
offering
• Differentiates the offering
from competitive ones
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-18
CHAPTER 6: INTEGRATED MARKETING
COMMUNICATION STRATEGY AND MANAGEMENT
DEVELOPING AN
INTEGRATED
MARKETING
COMMUNICATION MIX
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-19
DEVELOPING AN INTEGRATED
MARKETING COMMUNICATION MIX
Factors to consider when designing the
communication mix are:
Information
Requirements
of Buyers
Nature of the
Target Markets
Nature of the
Offering
Capacity of the
Organization
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-20
PUSH VERSUS PULL COMMUNICATION
STRATEGIES
Push Strategy
Pull Strategy
Producer
Producer
Wholesalers
Wholesalers
Retailers
Retailers
Consumers
Consumers
The offering is pushed through a
marketing channel to buyers in a
sequential fashion
Buyers demand the product from
intermediaries, pulling the offering
through a marketing channel
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-21
PUSH VERSUS PULL COMMUNICATION
STRATEGIES
Push Strategy
 Concentrates on building relationships
with channel intermediaries
 Advertisements are likely to appear
in trade journals and magazines
 Sales aids and contests used as incentives
to gain shelf space and distribution
 Personal selling emphasized with
wholesalers and retailers
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-22
PUSH VERSUS PULL COMMUNICATION
STRATEGIES
Pull Strategy
 Seeks to create initial interest for an offering
among potential buyers who in turn demand it
from intermediaries through the channel
 Employs heavy consumer advertising, free
samples, and coupons to stimulate consumer
awareness and interest
 Wholesalers and retailers must be willing and able
to implement selling and sales promotion programs
from manufacturers
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-23
CHAPTER 6: INTEGRATED MARKETING
COMMUNICATION STRATEGY AND MANAGEMENT
MARKETING WEBSITES
AND INTEGRATED
MARKETING
COMMUNICATIONS
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Slide 6-24
MARKETING WEBSITES AND IMC
Website
Marketing
Website
Is a place where a provider makes available
information to Internet users
Engages buyers/potential buyers in
interactive communication to sell a firm’s
offerings or move them closer to a purchase
Transactional
Website
Promotional
Website
Is an electronic storefront that tries
to convert online browsers into
online buyers
Promotes a firm’s offerings and
provides information on how they are
used and where they are purchased
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-25
MARKETING WEBSITES AND IMC
Transactional Websites
 Feature well-known, branded offerings
 Have a technological infrastructure
designed to create a favorable
shopping and buying experience
 Are a form of direct distribution
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-26
MARKETING WEBSITES AND IMC
Promotional Websites
 Engage visitors with an interactive experience
involving games and contests
 Provide prizes, such as electronic coupons
 Generate awareness of, interest in, and trial
of a firm’s offerings
 Support a firm’s advertising program and
traditional marketing channels
 Are used for customer research and feedback
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-27
CHAPTER 6: INTEGRATED MARKETING
COMMUNICATION STRATEGY AND MANAGEMENT
COMMUNICATION MIX
BUDGETING
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-28
COMMUNICATION MIX BUDGETING
Budgeting Approaches
Percentage
of Sales
Fixed Dollar
Amount per
Offering Unit
•
•
•
•
•
•
Most widely used approach
Past or anticipated sales are used as the basis
When sales rise, communication expenses rise
Simple to calculate
Which comes first—sales or communication?
Is not flexible or market-oriented
• Budget equals the per-unit allocation multiplied
by the number of units expected to be sold
• Used by durable-goods manufacturers
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-29
COMMUNICATION MIX BUDGETING
Budgeting Approaches
Competitive
Parity
• Balances the firm’s and competitors’
communication expenses
• Uses advertising share of voice
• Expressed as a percentage of total advertising
by all competitors in a market at a point in time
All Available
Funds
• Employed in introducing a new offering for
which maximum exposure is desired
• Used by nonprofit organizations
ObjectiveTask
• Objectives are set for a communication program
• Costs are based on the tasks to achieve the goals
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-30
COMMUNICATION BUDGET
ALLOCATION
 A communication budget must be allocated
across a firms’ communication tools
 As a percentage of their communication
budget:
• Marketers of consumer products and services
spend more for advertising
• Marketers of industrial products and services
spend more for personal selling
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-31
COMMUNICATION BUDGET
ALLOCATION
Six types of mass media to be selected:
Television
Radio
Newspapers
Outdoor
Magazines
Internet
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-32
COMMUNICATION BUDGET
ALLOCATION
Media timing strategies include:
Blitz
Strategy
Concentrating advertising dollars in a
relatively short time period when new
products or services are introduced
Continuity
Strategy
Spending advertising dollars over the
long term to maintain continuity
Pulse
Strategy
Concentrating its advertising but also
attempts to maintain some semblance
of continuity
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-33
EVALUATION AND CONTROL OF
THE COMMUNICATION PROCESS
 Continuously monitor the execution of
any communication plan or strategy to
ensure that the communication objectives
(sales, profits, etc.) are being met
 Use budgeting to add/delete funds for
specific communication activities as a
form of control
 Use incremental analysis to evaluate and
control advertising, personal selling, and
expenditures
© 2013 Pearson Education, Inc. publishing as Prentice Hall
Slide 6-34
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
© 2013 Pearson Education, Inc. publishing as Prentice Hall
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