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CHAPTER 17
DESIGNING AND MANAGING
INTEGRATED MARKETING
COMMUNICATIONS
THE ROLE OF 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 that they sell.
• Marketing communications
functions for consumers.
perform
many
Marketing communications mix
Advertising
Any paid form of nonpersonal presentation & promotion of
ideas, products/services by an identified sponsor.
Characteristics:
Build up a long-term image of products
Trigger quick sales
Reach geographically dispersed buyers
Different costs for different forms of ads
Pervasiveness
Amplified expressiveness
Impersonality
Sales promotion
Short-term incentives to encourage trial/purchase
of a product/service.
Characteristics: Used for short-run effects
Communication
Incentives
Invitation
Events and experiences
Company-sponsored activities & programs designed
to create daily or special brand-related interactions.
Characteristics:
Relevant
Involving
Implicit
Public relations and publicity
Programs designed to promote or protect a
company’s image or its individual products.
Characteristics: High credibility
Ability to catch buyers off guard
Dramatization
Direct marketing
Use of mail, telephone, fax, e-mail or Internet to
communicate directly with or solicit response from
specific customers.
Characteristics:
Customized
Up-to-date
Interactive
Personal selling
Face-to-face interactions with one or more prospective
purchasers for the purpose of making presentations,
answering questions and procuring orders.
Characteristics:
Personal interaction
Cultivation
Response
Integrated marketing communications to
build brand equity
Advertising
Brand
awareness
Sales
promotion
Events &
experiences
Public relations
& publicity
Personal
selling
Direct
marketing
Marketing
communication
program
Brand image
Brand
equity
Brand
responses
Brand
relationships
DEVELOPING EFFECTIVE
COMMUNICATIONS
Identify
target
audience
Determine
objectives
Design
communications
Establish
budgets
Decide on
media mix
Measure
results
Select
channels
Manage integrated
marketing
communications
STEP 1:
Identify the target audience
The target audience may be the potential buyers,
current users, deciders or influencers; individual,
groups or various publics.
The target audience will heavily affect the
communicator’s decision on –
– What to say
– How to say
– When to say
– Where to say
– To whom to say
The image analysis, assessing the current image,
can be conducted to profile the target audience in
terms of brand knowledge to provide further insight.
– The first step is to measure the target audiences’
knowledge of the object. (Familiarity)
– Respondents who are familiar with the product
can be asked how they feel toward it.
(Favorability)
STEP 2:
Determine the communication objectives
Category need
Brand awareness
Brand attitude
Brand purchase intention
STEP 3:
Design the communications
Formulating the communications to achieve the
desired response will require solving three
problems –
– What to say (message strategy)
– How to say (Creative strategy)
– Who should say it (message source)
Message strategy
In determining message strategy,
searches for appeal that will –
management
– Tie into the brand positioning
– Help to establish POP or POD
These may be related to product/service performance
or more extrinsic consideration.
Buyers may visualize the rewards from results-of-use
experience, product-in-use experience or incidental-touse experience.
Creative strategy
Communication effectiveness depends on how a
message is being expressed as well as the content of the
message itself.
Informational appeals
It elaborates on product/service attributes/benefit.
Problem-solution ads
Product demonstration ads
Product comparison ads
Testimonials
Issues related with informational appeals –
• Whether to draw a conclusion or leave it to the
audience
• Whether to present a one-sided argument or a
two-sided argument
• Whether to present the strongest arguments first
or last
Transformational appeals
It elaborates on non-product-related benefit or
image.
It might depict –
– What kind of person uses a brand
– What kind of experience results from using the
brand
It often attempt to stir up emotions that will
motivate purchase –
– Negative appeals (fear, shame, guilt) to get
people to do things or stop doing things
– Positive appeals (humor, love, pride, joy)
– Motivational devices to attract consumer
attention and raise their involvement with an
ad
Message format
• Print ads
Headline, copy, illustration, color
• Radio
Words, sound, voices
• Television or
person
Facial expressions, gestures, in
dress, posture, hairstyle
Message source
Marketers use the company and known/unknown
people as a source to deliver the message.
Messages delivered by attractive or popular sources
can potentially achieve high attention and recall.
The important factor is the spokesperson’s credibility
which includes –
Expertise
Trustworthiness
Likeability
STEP 4:
Select the communications channels
Personal communications channels
Channels through which two or more people
communicate directly with one another whether faceto-face, by telephone, by mail or via the Internet.
– Advocate channels
-
Company salespeople
– Expert channels
-
Independent experts
– Social channels
-
Neighbors, friends, family
members, associates
Personal influence carries especially great weight
in two situations –
– With products that are expensive, risky, or
purchased infrequently
– Where the product suggests something about
the user’s status or taste
Nonpersonal communications channels
These are media that carry messages without
personal contact or feedback.
– Media
Print media
Broadcast media
Network media
Electronic media
Display media
– Sales promotions
Consumer promotions
Trade promotions
• Events & experiences -
Sports
Arts
Entertainment
Cause events
• Public relation
Employees
Consumers
Other firms
The government
The media
-
STEP 5:
Establish budgets
Affordable method
The company sets the promotion budget at the level
management thinks the company can afford.
Advantages:
Helpful for smaller firms
Disadvantage:
Ignores the effect of promotion on sale volume
Ignores the role of promotion as an investment
Result in over-spending or under-spending
Percentage-of-sales method
The company sets the promotion budget at a certain
percentage of current or forecasted sales or as a
percentage of the unit sales price.
Advantage
– Simple to use
– Vary with what the company can afford
– Encourages management to think of the relationship
among promotion cost, selling price and profit
Disadvantage
Sales become cause of promotion
No basis for choosing specific percentage
Leads to budget set by the availability of
funds rather than market opportunity
Competitive-parity method
The company sets the promotion budgets to match
competitors’ outlays.
Advantage
Prevent promotion wars
Disadvantage
– It cannot prevent promotion wars
– The competitors do not have better ideas on the
company’s promotion needs
Objective-and-task method
The company sets the promotion budget based on
what it wants to accomplish.
This budgeting method entails three steps –
a. Defining specific promotion objectives.
b. Determining the tasks needed to achieve
these objectives.
c. Estimating the costs of performing these
tasks.
The sum of these costs is the proposed promotion
budget.
STEP 6:
Deciding on the marketing
communication mix
Characteristics of the marketing communication mix
Companies
must
allocate
the
marketing
communications budget over the six modes of
communication depending on their characteristics and
costs.
Factors in setting the marketing
communications mix
Type of product market
Buyer-readiness stage
Product life-cycle stage
STEP 7:
Measuring communication results
After implementing the communication plan, the
communicator must measure its impact on the
target audience by asking them –
– Whether they can recognized or recall the
message
– How many times they saw it
– What points they recall
– How they felt about the message
– About their previous and current attitudes