Download Integrated Marketing Communication

Integrated Marketing Communication
Anuchit Sirikit D.B.A.
Certified Professional Marketer(Asia Pacific)

Marketing Focuses on Exchange
– exchange
 Relationship Marketing
– relationship marketing
• superior customer value
– mass customization
• lifetime value
 The
Evolution of IMC
– integrated marketing
communications (IMC)
• new advertising
• orchestration
• seamless communication
• all sources of brands or company
contact
 Reason
for the Growing
Importance of IMC
– A shifting of marketing dollars from
media advertising to other forms of
promotion, particularly consumer and
trade-oriented sales promotions.
– A movement away from relaying on
advertising-focused approaches, which
emphasize mass media such as network
television and national magazines, to
solve communication problems.
– A shift in marketplace power from
manufacturers to retailers.
– The rapid growth and development of
database marketing.
– Demands for greater accountability from
advertising agencies and changes in the
way agencies are compensated.
– The rapid growth of the Internet, which
is changing the very nature of how
companies do business and the ways they
communicate and interact with
consumers.
Instrument of the marketing mix
Product Price
Place
Promotion
Benefits List price
Channels Adverising
Features Discounts
Logistics
Public relations
Options Credit terms Inventory Sponsorship
Quality
Payment periodsTransport Sales promotions
Product
Price
Design
Incentiv es Assortments Direct marketing
Branding
Place
Promotion
Locations Point-of-purchase
Packaging
Exhibitions and trade fairs
Services
Personal selling
Warranties
Interactiv e marketing
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den
2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 3
Personal versus mass marketing communications
Personal communications
Mass communications
Reach of big audience
Speed
Slow (selling), faster (DM)Fast
Costs/reached person
High
Low
Attention value
High
Low
Selective perception
Relatively lower
High
Comprehension
High
Moderate-low
Influence on individual
Personal communications Mass communications
Feedback
Direction
Two-way
One-way
Speed of feedback
High
Low
Measuring effectiveness Accurate
Difficult
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 6
The marketing mix and Integrated marketing communications (1)
Marketing communications
Public relations
Advertising
(f)
(c)
Marketing
( b)
(a)
(e)
(d)
Source: Hutton, J.H. (1996), ‘Integrated Marketing Communication and the
Evolution of Marketing Thought’ , Journal of business Research, 37, 155-62.
The marketing mix and Integrated marketing communications (2)

(a) Corporate advertising
(b) Salesforce and channel communications, trade shows, packaging, direct
marketing, sales promotions, etc.
(c) Distribution, logistics , pricing, new-product development, etc.
(d) Investor relations; community relations; employee communications;
public affairs/government relations; most media relations; crisis
communications, etc,
(e) Product publicity; brochures and other collateral materials; parts of
media relations, crisis communications and corporate identity; sponsorships,
etc.
( f ) Traditional mass-media advertising
Source: Hutton, J.H. (1996), ‘Integrated Marketing Communication and the Evolution of
Marketing Thought’ , Journal of business Research, 37, 155-62.
BRANDING
Determinants of successful brands
Additional
service
Originality
Successful
brand
Differentiation
Long- term
perspective
Good
quality
Integrated
communications
support
Source; Dibb, S., Simkin, L., Pride, W.M. and Ferrell, O.C. (1997), Marketing. Concepts and Strategies. Boston:
Houghton Mifflin.
Basic brand strategies
National
International
Category
One brand
Two brands
Existing
Existing
New
Line
Brand
extension
extension
Corporate branding
New
Multi-brands New brands
Endorsement
Ingredient branding
Global branding
Local branding
Co-branding
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 40
Components of consumer brand equity
Brand equity
• Awareness
Determinants
• Perceived quality
• Strong brand associations
Benefits
• Others assets
• High brand loyalty
Source: Aaker, D.A. (1991), Managing Brand Equity. New York; The Free Press.
The loyalty pyramid
Committed
buyer
Like the brand-considers it a friend
Satisfied buyer with switching costs
Satisfied/habitual buyer who has no reason to change
Switchers/price sensitive - indifferent-no brand loyalty
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 49
Brand equity components and branding benefits(1)
Brand equity components
Benefits
Brand awareness
 Brand in evoked set
Perceived quality
 Influence on attitude and
perceptions
 Anchor for associations
 Signal of substance/ commitment
 Price premium
 Differentiation/positioning
 Reason to buy
 Channel member interest
 Brand extension potential
Brand equity components and branding benefits(2)
Brand equity components
Benefits
Strong brand associations
 Differentiation/positioning
 High price premium
 Memory retrieval potential
 Reason to buy
 Brand extension potential
 Reduced marketing costs
 Trade leverage
 Attracting new customers
High brand loyalty
 Time to respond to competitive
threats
Brand equity components and advertising models
Awareness-salience
Symbolism
Brands awareness
Likeability
Emotions
Persuasion
Relationship
Sales reponse
Strong brand associations
High quality perception
High customer loyalty
Based on: Franzen, G. (1998), Merken en Reciame (Brands and Advertising). Kluwer Bedrijfsinformatie.
Positioning

Market Positioning
– Approaches to Positioning
– Developing a Positioning Strategy
Positioning by
Benefits
 Positioning by
 Positioning by
 Positioning by
 Positioning by
 Positioning by
 Positioning by
 Repositioning

Product Attributes and
Price/Quality
Use or Application
Product Class
Product User
Competitor
Cultural Symbols
Requirements for effective segmentation
Measurable
Attainable
Effective
segmentation
Different
Large enough
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 102.
Targeting strategies
Concentration on one segment
 Selective specialization
 Product specialization
 Market specialization
 Full market coverage






Identifying competitors
Assessing consumers’ perceptions of
competitors
Determining competitors’ positions.
Analyzing the consumers’ preferences.
Making the positioning decision.
– Is the segmentation strategy
appropriate?

Making the positioning decision.
– Is the segmentation strategy
appropriate?
– Are there sufficient resources available
to communicate the position effectively?
– How Strong is the competition?
– Is the current positioning strategy
working?

Monitoring the position.
Positioning strategies
Product attributes or benefits
 Price / quality
 Use or application
 Product class
 Product user
 Competitor
 Cultural symbols

Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 108.
Communications objectives: the DAGMAR model
Category need
Brand awareness
Brand knowledge / comprehension
Brand attitude
Brand purchase intention
Purchase facilitation
Purchase
Satisfaction
Brand loyalty
Source; Colley, R.H. (1961), Defining Advertising Goals for Measured Advertising Results. New
York: Association of National Advertisers.
Stages in the product life-cycle and communications objectives
Sales
Stage
Introduction
Growth Brand Marketing TopMarketing
Category need attitude Brand of-mind
awareness
communications Brand awareness preference
Brand attitude
objectives
Brand knowledge
Brand loyalty
Brand attitude
Customer
satisfaction
Decline
Purchase
New target
groups
Time
Factors affecting the consumer choice situation
Consumer /
product
relation
Choice process
Consumer
Choice
situation
Product
characteristics
Point -of-purchase
characteristics
Advice involved
with purchase
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 132.
Advertising objectives
Cognitive objectives
Affective objectives
Conative objectives
Product category need
Brand awareness
Brand knowledge
Feelings evoked by the ad
Attitude towards the ad
Liking of the brand
Attitude towards the brand
Brand conviction
Brand satisfaction
Purchase intention
Purchase
Repeat-purchase
Brand loyalty
Advertising formats
Testimonial
 Expert endorsement
 Celebrity endorsement
 Slice-of-life
 Comparative advertising
 Music

Moderating variables affecting the effectiveness of
humour in advertising
Product type
Existing or new
products
Effective
humorous ads
Humour type
Relation between
Prior brand
humaour and
evaluations
product
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 177.
Strengths of public relations
Crisis
management
Good
citizenship
Advice on
important
trends
Public relations
Message flexibility
Cost effective
Difficult-to-reach
audiences
More objective
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 240.
Weaknesses of public relations
Effectiveness
hard to measure
Lack of control
Public relations
Journalists as
gatekeepers
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 249.
Trends and challenges in public relations
Bad
reputation
Measuring
effect
Specialization
Good employee
relation
Corporate
branding
PR
Growing consumer
awareness
Globalization
New
technologies
Single-issue
publics
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 251.
RESEARCH
– Motivation Research in
Marketing
• In-depth interviews
• Projective techniques
• Association tests
• Focus groups
– Problems and Contributions of
Psychoanalytic Theory and
Motivation Research
Strategic communication research
Pre-test of Advertising
 Post-test of Advertising
 Campaign evaluation Research

Objectives of pre-testing
Selection of
appropriate stimuli
Optimise
esposure
frequency
Pre-tests
Testing a
Assess
finished ad
communications
effects
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 224.
Pre-testing techniques
Internal evaluation
 Checklists
 Readability analysis
Communications
 Physiological tests
 Recall
 Direct opinion measurement
Behavioural effects
Limitations of pre-testing
Influence of
external factors
Limited time
between exposure
and test
Individual
testing
Limitations of
pre-testing
Effect of
repetition
Never the
best possible
ad
Artificial setting
Consumer jury
effect
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 230.
Post-testing techniques
Exposure
 Message processing

– recall
– recognition

Behaviour
Limitations of post-testing
Message
processing and
buying
Product
involvement
Isolate effect
of single ad
Limitations of
post-test
Time between
exposure and
measurement
Consumer’s
honesty
Relevance of
recall
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 233.
Interactive Marketing Communication
Social presence and communications style in communications
media
Higher
Social
presence
Lower
Personal selling
Telemarketing
X Electronic
commerce
Direct mail
Traditional advertising
Synchronous
Asynchronous
Communications
Based on: Reza Kiami, G. (1998), ‘Marketing opportunities in the Digital Worls’ , Internet Research:
Electronic Networking Applications and Policy, 8(2), 185-94. Reproduced with permission of MCB
University Press.
Consumer control on contact and content in communications
media
Lesser
Consumer
control of
content
Lesser
Consumer control of content
Greater
Direct mail advertising
Telemarketing
Personal selling
Electronic commerce
Greater
Based on : Reza Kiami, G. (1998), ‘Marketing opportunities in the Digital World’ , Internet
Research: Electronic Networking Applications and Policy, 8(2), 185-94. Reproduced with
permission of MCB University Press.
Development cycles for websites on the net

Multinationals
Information model-- Transaction
model

Internet starters
Transaction model--- Information
model
1. Information about image and products
2. Information-gathering/market research
3. Client support/services
4. Internal support
5. Transactions
1. Transactions
2. Client support/services
3. Information about image and products
4. Information-gathering/market research
Based on: Quelch, J.A. and Klein, L.R. (1996). ‘The Internet and International Marketing’ ,
Sloan Management Review (Spring), 60-75. Reproduced with permission of Sloan School
of Management.
Business models for websites on the net
Internal
Customer
orientation
External
Primary consequences for the company
Cost-reduction
Returns incteasing
Technical, legal and
administration support
Managing databases Internal
research Internal reporting
Marketing and sales
support information
Customer service
Transactions
Product information
Promotion Developing
databases Market research
Transactions
Based on: Quelch, J.A. and Klein, L.R. (1996). ‘The Internet and International Marketing’ ,
Sloan Management Review (Spring), 60-75. Reproduced with permission of Sloan School
of Management.
Internet advertising techniques
E-mail
Banners on email
Sponsorship
Good of email newsletter
citizenship
Classified
ads
Adertorials
Interstitial
Direct e-mail
World Wide Web
Buttons
Banners on
chat sites
Banners
Pushed
advertising
Internet advertising in the future
Purchase related
content
Sponsored
content
Targeted
content
Experience rated
content
Internet
advertising
Anchor tenancy
deals
Based on: Cartelliert, C., Rao, V., Parsons, A. and Zeisser, M. (1997), ‘The
Impact of Internet Advertising’, The McKinsey Quarterly, 3, 45-62.
Four types of relationship efforts
Communication
 Differentiation
 Personalising
 Rewarding
